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Savannah Cement’s New Ksh5 Billion Plant to Double Production Once Launched

Peter Musila 2 years ago

Savannah Cement is set to invest Ksh5 billion in a new grinding plant construction in Kitengela. Once the installation is complete, 1.2 million tonnes of cement will be produced annually. The company which is the youngest entrant into the cement entrant currently produces w million tonnes a year.

The company is the fourth-largest cement firm by market share as it has 15 per cent market shares and has the intentions to extend its reach to regional markets as from the year 2020.

The business aims to gain from Kenya’s government plan to construct affordable houses as well as increased infrastructure spending in the neighbouring countries.

However, the cement sector has previously been facing a sharp dropdown in sales after a reduced demand from the construction sector. Real estate companies have attributed the decline to limited loans to constructors and mortgage buyers.

The decline in demand saw Bamburi Cement, EA Portland Cement, and ARM cement the lowest financial performance last year.

The new move by Savannah Company to automate the new plant will see them operate efficiently once the plant is launched before the end of the year.

“Savannah cement has been operational for seven years now……We plan to continue fulfilling our customers’ need and ensure maximum penetration in the East African market.” Said the Managing Director Ronald Ndegwa.

Seruji limited owns 60 per cent while Savannah Heights owns 40 per cent of the company ownership even though the company ownership has been in dispute for quite a while now.

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