Connect with us

Business News

Savannah Cement invests KSh5 billion into a new plant




Savannah Cement, the youngest entrant into the Cement
industry in Kenya is constructing a KSh5 billion grinding plant in Kitengela. The plant is expected to produce 1.2 million tonnes of cement annually. Savannah’s current production capacity is 1 million tonnes per year.

Savannah Cement has a 15 percent market share, making it the
fourth largest cement firm by market share out of the six cement companies in Kenya. It intends to expand into the regional markets starting from the year 2020. The business aims to gain from Kenya’s government plan to construct affordable houses as well as increased infrastructure spending in the neighboring countries.

The cement sector in Kenya has experienced a drop in revenues
largely due to the slowdown in the construction industry. Real estate companies have attributed the decline to limited loans to constructors and mortgage buyers. The three listed companies Bamburi Cement, EA Portland Cement, and ARM cement all booked poor financial performance in 2018.


Savannah expects to launch the new plant before the end of
the year. The facility is fully automated, which will ensure the company
operates efficiently and produces consistently good quality cement.

Speaking during the company’s 7th anniversary, the Managing Director Ronald Ndegwa said, “Savannah cement has been operational for
seven years now……Our plans are to continue fulfilling our customers’ need and ensure maximum penetration in the East African market.”

Although the ownership of the company is in dispute, 60 percent of the business is owned by Seruji limited while 40 percent is owned by
Savannah Heights, all local investors.

Source link







Social Media Auto Publish Powered By :