Savannah Cement plans to build Sh8bn clinker plant in Athi River

The Savanna Cement factory in Athi River. PHOTO/FILE
The Savanna Cement factory in Athi River. PHOTO/FILE
Savannah Cement has announced plans to build a new Sh8.5 billion clinker plant at its Athi River factory, as it seeks to boost production.

The cement maker, which has an annual production capacity of 1.5 million tonnes, said the clinker manufacturing factory will help reduce reliance on imported clinker for production.

Savannah Cement chairman Benson Ndeta said: “As you may be aware, the local cement industry tilts heavily on the grinding aspect of cement production and remains heavily reliant on clinker imports to deliver finished products.”

The new facility, which is set to be operational in the coming months, will double the company’s total investment to Sh17.2 billion.

The company entered the local cement market in August 2012 after two new other firms – Mombasa Cement and National Cement – intensifying competition among existing producers: ARM Cement, Bamburi and EAPPC.

READ: Savannah Cement plant begins operations

Savannah Cement is a joint venture comprising Savannah Heights—a consortium of Kenyan investors, Wan-Ho, a Chinese investment firm and Catic Cement (Kenya) sharing the stakes at 40 per cent, 40 per cent and 20 per cent respectively.

The factory was initially planned to be built in Kitengela but it was relocated to the current location in Athi River (within the Export Processing Zone- EPZ) when residents objected its establishment.