ARM Cement's pretax profit rose 20 per cent to KES1.2bn (US$13.68m) in the first half of 2014, the Kenyan firm said on Friday.

Total revenue increased by 16 per cent YoY to KES7.6bn with cement sales up by 10 per cent in Kenya and by more than a third in Tanzania. 

"The east African regional economies are growing briskly, and demand for cement, as well as the other products are expected to grow further," the company said.

Its fertilizer line also posted good sales growth after the Kenyan ministry of agriculture endorsed one of its brands.

ARM said it expects earnings to grow further in the second half mainly due to improving margins driven by investments in its factories in Tanzania and Kenya. The company is installing a clinker plant in Tanga Tanzania and a cement plant in the capital Dar es Salam.