Survey ranks Kenya among world’s poor cement users

Kenya is one of the poorest cement users in the world, despite the fact that the consumption of the commodity has grown at an average of 17 per cent in the last five years.

According to a new survey by Citi Research, a division of Citigroup Global Markets Inc., Kenya’s per capita cement consumption stands at 79 kg as compared to Africa’s average of 150 kg and the global average of 510 kg.

The report noted that high poverty levels and low urbanisation rates were undermining cement consumption in the country and the rest of East Africa – whose per capital consumption stands at 60 kg.

However, Kenya ranked highest among East African countries followed by Ethiopia and Tanzania, whose per capita average is 40 kg despite the consumption having grown at an average of 12 per cent in the past five years.

“Kenya’s cement consumption has been dampened by low income levels, but it rose by an average of 17 per cent over the last five years due to heightened infrastructure and housing development,” said the report.

The report noted that there are vast opportunities for cement makers in Kenya as demand grows thanks to the massive infrastructural development projects currently under way across the country.

The forecast for the future in this regard is upbeat: “Infrastructure and housing projects will continue to accelerate demand for cement in Kenya,”said Charles Shonayi, a research analyst at the global consulting and market research firm Frost & Sullivan (F&S).

Kenya is the largest cement producer and consumer in East Africa, with annual production representing 53 per cent of the region’s total capacity.

F&S estimates that the regional production capacity will reach about 17 million tonnes a year by 2017, as new manufacturing plants and expansion programmes are brought on stream.

Join 15,000+ pros getting our weekly digest of news and insights.