Savannah Cement has overcome its clinker shortage difficulties

Savannah Cement managers have denied that the company is facing financial problems, saying a shortage of clinker had slowed down production for the Kenyan cement producer in the 3Q21. 

In an exclusive interview with Nation Africa, Mr Shivina said the company is financially stable. He said the company relies on imported clinker for cement production, but supply was disrupted in 2021 due to a shortage of vessels as the global economy suffered from a COVID-19-related supply chain backlog.

"The challenge led to a slight disruption in clinker supply in quarter three of 2021. However, the situation has now normalised, and the company has secured enough stocks for the first quarter of 2022. It is already sourcing for quarter two of 2022," he said.

The company sent all employees on a 10-day break on 23 December to pave the way for plant maintenance but resumed work on 3 January 2022.

As part of its expansion plans, Savannah plans to invest in a clinker plant to end reliance on imports. The project is slated to start in the 1Q22 and will take two-and-a-half years.

"To ensure our customers a constant cement supply we have invested heavily on a multimillion-shilling clinker plant. We are eyeing double-digit production growth," Mr Shivina added.