Four Kenyan producers opposed to review on clinker imports

Four Kenyan cement manufacturers have requested for an urgent meeting with the national treasury over a proposal to review the Common External Tariff (CET) on imported clinker.

The Kenya Association of Manufacturers (KAM) has proposed that CET on imported clinker be reviewed from the current 10 to 25 per cent on imported clinker or a complete ban of importation to protect local manufacturers. KAM argues that the move will promote the manufacturing sector and create jobs.

However, Bamburi, Savannah, Ndovu and Rai Cement have stated their opposition to the proposal by the KAM to review CET citing the prospect of unfair competition and the destruction of investments.

"On behalf of Bamburi Cement and my colleagues in Savannah Cement, Ndovu Cement and Rai Cement, we're seeking an urgent meeting with your esteemed office at your earliest convenience your schedule permitting," said Bamburi MD, Seddiq Hassani.

 Currently only National Cement and Mombasa Cement produce their own clinker while the rest import.

"Our joint position is that while we believe that in the long term this is the right direction in order to safeguard local manufacturing, we are opposed to this upward review at this point in time," said Mr Hassani.

He said that the four companies should be given a window of between 4-5 years to set up their own clinker facilities as this will provide a predictable policy framework for all investors rather than to increase CET for imported clinker.