Clinker, the crucial intermediary product in cement manufacturing, has long been a barometer for economic growth and development. In Kenya, a nation marked by burgeoning infrastructure projects and a rapidly expanding construction sector, the clinker market plays a pivotal role in shaping the country’s economic landscape. With a focus on sustainable development and infrastructure advancement, Kenya’s clinker market presents a tapestry of opportunities and challenges worth exploring.
Devki Group of Companies through it’s National Cement Company Limited (NCCL) (Simba Cement manufacturer) have invested over Kshs 47 billion (USD 360 Million) in Cemtech Sebit Clinkerization Plant in West Pokot- Kenya. In 2019 Competition Authority of Kenya approved Simba Cement’s acquisition of Cemtech Company, that was given 650 acres of land freehold for clinker production from municipal council.
As Kenya continues to make strides in its economic development, the role of the construction industry invigorated by the Kenya Kwanza’s bottom up economic pillar number 3 of 250,000 units per annum affordable housing program has become increasingly significant. One key component that has been driving this growth is the production and consumption of clinker, a critical ingredient in the manufacture of cement; a key component in the construction industry.
Clinker plants require substantial infrastructure and technological investments, leading to the creation of a robust industrial ecosystem. From mining and processing of raw materials to transportation, manufacturing, and distribution, clinker plants generate a ripple effect across various sectors, stimulating economic activity and employment opportunities. As a bulk product, it incentivizes investment in logistics and transportation networks, thus facilitating the efficient movement of goods and people.
Improved infrastructure not only enhances connectivity within the country but also enhances international trade, positioning the nation as a regional hub for commerce and investment. With Simba Cement’s entry into the clinker production through West Pokot; it will be vital player in the nation’s economy, contributing to job creation in the bandit prone area, improved infrastructure development, reduced pressure of dollar demands and overall economic growth. Savannah Cement on the other hand is building a USD 300 million Clinker plant in Kitui County set for operation in 2025 aftere securing funds from London Stok Exchange
Clinker product code 252310, is a granular material produced by heating limestone and clay at high temperatures, is an essential component in cement production. The demand for cement in the East Africa region has been on the rise due to the growing population, urbanization, and the government’s ambitious infrastructure development projects. As a result, the clinker market has experienced a surge in demand, leading to increased production and investments in the sector.
Simba Cement has signed annual long-term agreements that will enable it to export clinker valued at up to (USD 200million) Sh27.7 billion to its neighbors each year due to the new plant’s proximity to Rwanda, Uganda, and Burundi, the corporation has set its sights on these nations’ regional markets.
Treasury imposed a 10% tax on imported clinker in the 2023–2024 budget, which Kenya Association of Manufacturers (KAM) opposed with the support of small industry players.
Kenya imports more than 60 percent of clinker through; Bamburi Cement, Savannah Cement, Rai Cement and Ndovu Cement while National Cement Company Limited, and Mombasa Cement have invested in manufacture of the product. The demand for clinker, a key component in cement production is a big challenge in East Africa. In 2020, Kenya was grappling with a shortfall of 3.3 million tonnes of clinker. At the time, cement firms in Kenya operated at only 65 percent of their installed capacity, producing 3.8 million tonnes of clinker against a demand of 5.3 million tonnes.