Competition in the cement industry is set to increase following the coming in of Savannah Cement in the country. The firm, to be officially commissioned by the president before the end of the year is said to be in operation already.
The Sh8.5 billion plant based in Athi River EPZ is set in an export processing zone. It has an annual production capacity of 1.5 million tonnes with expansion allowance to double this. The total cost for phase two which includes setting up a clinker plant will amount to Sh16 billion.
Reports indicate that the new firms have been increasing market share at the expense of large incumbents who have adopted less aggressive expansion strategies. It is expected that in the next five years, the market share which is currently dominated by multinationals will shift to new no-listed players. The firm plans to increase its market share by setting up a one million per year clinker plant from 2013.It is currently importing its clinker.
The cement maker joins others in the country like Athi River Mining, EAPCC and Bamburi who have dominanated the Kenyan markets for a long time now. The infrastructural developments happening in the country have been a major boost for the cement makers in the country even as most of them export their cement to other neighboring countries.
