Kenya's cement consumption drops to 5.49Mt in 2018

Kenya's cement consumption dropped for the second year in a row to 5.49Mt n 2018, according to Kenya National Bureau of Statistics (KNBS). The decline in cement consumption comes despite ongoing public infrastructure projects such as roads and phase two of the Standard Gauge Railway (SGR) as well as continued development of buildings in the country.

Last year's reduced consumption forced cement producers to cut production by 8.6 per cent to 5.63Mt from a high of 6.7Mt in 2016.

"The first half of the year reflected a difficult business environment on the backdrop of increased input prices, a sluggish market as well as production challenges arising from a tight East African Portland Cement Company (EAPC) working capital position," said EAPC.

EAPC's board also warned that the government's focus on affordable housing and manufacturing may trigger a very competitive environment, leading to subdued cement prices in the near future.

The value of residential and non-residential building plans approved declined by 12.6 per cent or KES30.5bn (US$304.2m) to KES240.75bn in 2018.