Cement demand in Kenya has fallen to 1.4Mta in the second quarter of the year, according to a report from the Kenya National Bureau of Statistics (KNBS). The agency attributes the drop to a continued slowdown in real estate activity.
In the first quarter of 2017 domestic cement consumption reached 1.5Mt but has since decreased. Furthermore, the continuing decline was also reflected in a 15.7 per cent drop in cement imports as well as in an eight per cent fall in clinker imports during the first quarter of the year.
The market contraction has affected several cement producers in the country. Athi River Mining (ARM) dismissed 700 staff last year as it noted a US$65m loss. East African Portland Cement reported a US$15m, the first since 2014, while market leader Bamburi Cement’s profit shrunk by a third to US$20m.
