Materials & Supplies

Roofing Sheets, Cement Sales Plunge as Real Estate Slows

Recent wave of countrywide demolitions have discouraged new investments.

Updated on

December 13, 2018

A worker pours concrete at construction site. — Workers at a construction site. PHOTO | FILE

The uptake of cement and galvanized sheets used for roofing has registered a significant decline this year, according to the latest figures from the Kenya National Bureau of Statistics.

In the first nine months of the year, the amount of cement consumed in the country fell by 113,096 metric tonnes to 4.13 million metric tonnes compared to 4.24 million metric tonnes in the same period in 2017, KNBS data shows.

Galvanized sheet production declined to 155,506 metric tonnes in the first seven months of the year from 156,168 metric tonnes produced during the same period last year.

The slump, which is much higher for individual manufacturers, has been blamed on the recent wave of countrywide demolitions that have discouraged new investments.

“The main reason is people are scared of continuing with development due to the demotions of buildings. Structures that were approved by other governments 20 years ago have been demolished,” says Narendra Raval, chair of Devki, a producer of cement and steel products.

Mr Raval noted declines in Devki’s cement and galvanized sheet sales.

“Cement sales are down 15 per cent; galvanised sheets sales are down 18 per cent,” he said.

Mr Raval’s views echo those of Realtor HassConsult, which cautioned against the State’s disregard for genuine land ownership documents and regulatory approvals during the demolition of multi-billion shilling structures, citing harm to the real estate sector.

Head of Development Consulting and Research Sakina Hassanali said investors were fearful of the trend where State-sponsored demolitions appeared to target documented properties.

“The risk position for property ownership papers issued by the government has risen tremendously as the same government does not recognise its papers. This has hurt present and future property deals,” she said.

Taj Mall, Southern Mall and Westgate in Nairobi are among the high-profile buildings that have been demolished, with more targeted for intruding on riparian and road reserves.