Savannah Clinker has received KES65bn (US$500m) to fund construction of a new clinker factory in Kenya. Savannah Clinker, an affiliate of Savannah Cement, said it raised the funds through a privately placed debt arrangement with the bond set to be listed at regulated international exchange.
Savannah currently imports clinker as it does’t have a clinker plant. Savannah will build its clinker plant in Kitui County, as demand for cement surges due to a construction boom that has been boosted by an national affordable housing programme.
“I am extremely proud to have the support of a major international investor who shares our vision and beliefs in what is required to deliver the growth and development of our key infrastructure and affordable housing,” said Benson Ndeta, chairman of Savannah Cement Group.
Cement producers have been sharply divided over a proposal by some of the players to increase import duty on clinker to support local production and create jobs. Billionaire Narendra Raval, through his company National Cement, has been pushing for enhanced import duty on clinker. However, five cement makers, including Savannah, have pushed back saying they had already been given a grace period of four years lapsing in 2026 to build their own clinker plants.
Five other cement producers are expected to put up individual clinker investments worth US$1bn. Such investments normally take about 22-36 months to be installed and commissioned.
