Kenya’s Cement Demand Rises 27% on State Projects

The Kenyan cement market saw a demand increase of 26.6% in the first five months of 2021, driven by public infrastructure and home construction projects across the country.  

According to the Kenya National Bureau of Statistics, local cement consumption stood at 3.35 million tonnes in the January to May window compared to 2.64 million tonnes last year.

During the period, production rose 27.3% to 3.38 million tonnes, from 2.65 million tonnes in the equivalent period of 2020 as manufacturers raced to meet the rising demand.

The improvement in cement production has been attributed to the ongoing State projects such as the Nairobi Expressway, Dongo Kundu Bypass, James Gichuru-Rironi highway, Nairobi Western Bypass, as well as the construction of mega dams in various parts of the country.

Private developers and individual households, who have been building even during the toughest months of the pandemic, have also boosted the cement market.

Bamburi Cement, which tripled its net profit for 2020 to Sh1.1 billion, had last December predicted strong demand for cement in 2021 on increased home construction and implementation of State projects.

The company’s MD Seddiq Hassani said the cement firm had seen a recovery in demand for the commodity from June 2020 – nearly hitting the pre-Covid 19 levels.

“In the second half of 2020, we have seen a stronger recovery. We are almost back to the pre-Covid-19 levels, especially on individual homes projects,” Mr Hassani said.

The local cement market is likely to witness additional growth as more public infrastructure projects such as the Nairobi-Mau Summit Dual Carriageway commence by December.

Individual home builders and developers undertaking affordable housing projects are also expected to become a major source of demand for the commodity in the coming months.

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