According to CW Research’s 2018 update of the Kenya Cement Market Report, cement consumption in the country is forecast to increase at an annual average rate of almost six percent, exceeding seven million tons by 2023.
The steady growth of cement demand is a consequence of the strong pipeline of construction projects, which remain a priority for the government. On a domestic level, public works continue to account for the largest share of cement demand.
“The Kenyan construction industry is expected to be the fastest-growing sector in the country over the next decade due to an increased number of projects being carried out. Most are related to infrastructure works targeting the improvement of road infrastructure and power supply. Housing is also a top priority, as the government plans to solve the current issue of lack of affordable housing”, assesses Raluca Cercel, CW Group’s Associate.
A small and competitive market
The Kenyan cement market consists of fewer than ten cement manufacturers, among them Bamburi Cement, ARM Cement, and Mombasa Cement. Significant market movements are anticipated in terms of merger and acquisition activity in Kenya, with Dangote and Omani Raysut Cement expected to enter the market through the acquisition of troubled cement manufacturers.
Athi River has the highest concentration of cement plants in Kenya, while the others are located mostly in the vicinity of Mombasa. Athi River is a preferred location for manufacturers given the vicinity to limestone reserves and to export markets south of Kenya.
Due to the competitiveness among cement companies, ex-works prices in Kenya are decreasing, being some of the lowest in the East African region. Nevertheless, cement producers are not shying away from increasing production capacity, in spite of the anticipated softening in demand for 2018.
Learn more about the Kenyan cement market, including cement volume trends in detail, trade flows, cement demand and production (historical and a five-year outlook), per capita consumption, and the competitive landscape, including company profiles, cement production facility details, including past and announced brownfield production increases and greenfield projects. Click here