Update on Kenya Cement Industry

Features

 

Overall cement production in Kenya peaked at 6.7Mt in 2016 and has fallen since.

It fell by 2.8% year-on-year to 2.9Mt in the first half of 2019 from 3Mt in the same period in 2018.

Consumption fell by a similar amount to production in the first quarter of 2019.

Analysts like Knight Frank have blamed this on a slowdown in the real estate market, although it holds up hope for government house building scheme to rescue the situation.

In this kind of market it is understandable that the cement market is rationalising. The World Bank has forecast gross domestic product (GDP) growth of 5.8% in 2019 and better in the years ahead.

Whoever is left in the cement business once the corporate dust settles stands to benefit.

Source: global cement

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