Kenyan cement factories cut production back to 4.2Mt

Cement plants in Kenya have reduced production by seven per cent to 4.2Mt in the year to August, down from 4.5Mt. The cutbacks came amid decreases in cement consumption, data from Kenya National Bureau of Statistics (KNBS) shows.

The deepest cut was experienced in August when Kenya held its general election, underlining the effects of election fever on the economy.

The reduction came in response to a cooling demand after consumption dropped 6.4 per cent to 2.9Mt in the first half of the year, KNBS data shows.

"We have recorded a drop in activity with the general slowdown in the economy due to political tensions," said Steven Oundo, chairman of National Construction Authority.

Decreases in the use of cement and in the value of building plans point to a cooling construction sector. The value of approved building plans in Nairobi slumped by KES5.1bn (US$49.3m) in the seven months to July as real estate investors cut back on spending due to poll jitters.Official data shows that City Hall approved plans valued at KES149.5bn, down from KES154.6bn in a similar period a year earlier.