National Cement Co to receive IFC cash injection

Kenya-based National Cement Co Ltd (NCCL), a member of the Devki Group of Companies, is to receive a KES5.9m (US$70m) cash injection from the International Finance Corp (IFC) to fund its two-phase expansion project.

Under the agreement, the IFC will provide US$55m in debt. In addition, IFC and the IFC African, Latin American and Caribbean Fund, will inject US$15m in equity into National Cement and will have a seat on the company’s board.

The equity injection will see National Cement undergo a two-stage expansion expected to be completed by 2016. The project firstly involves the expansion of NCCL’s Athi River grinding plant to have an installed nominal cement grinding capacity of 1.7Mta.

Secondly, a new clinker production line will be built at Merueshi, around 160km south of Nairobi, near the Nairobi-Mombasa highway. The nominal capacity of the kiln is expected to be 3300tpd (1.1Mta).

Devki Group Chairman Narendra Raval said by partnering with IFC, National Cement looks forward to combining its experience in Kenya's building materials sector with IFC's international expertise in infrastructure and environment management. “As National Cement expands, we aim to contribute actively to improving infrastructure and housing in Kenya," he said.

Oumar Seydi, IFC director for Eastern and Southern Africa said Kenya often imports cement at high costs, adding, "We would like to send a strong signal of IFC's confidence in a Kenyan company making a difference in the local economy.