ARM plans to build Kenya’s largest cement plant in Kitui

ARM chief executive officer Pradeep Paunrana
ARM chief executive officer Pradeep Paunrana. PHOTO: NATION/SALATON NJAU
ARM Cement has announced plans to build the largest cement plant in Kenya to meet the growing demand for the commodity in East Africa.

The NSE-listed cement manufacturer is seeking to raise up to Sh25.5 billion to fund new plants including the planned factory in Kitui County, which is to have a production capacity of 8,000 tonnes of cement per day.

This will make it the single largest cement plant in the country ahead of the planned Dangote plant that will have a capacity of 5,500 tonnes per day.

Construction of the project, which will be located near Kitui town – about 180km east of Nairobi, is expected to start in 2015 and be completed within two years.

The firm is currently holding discussions with the Kitui County government on the construction of the factory and also pursuing regulatory approval from relevant authorities before construction begins.

READ: Cement makers face stiff competition from Dangote

ARM Cement is expanding its production capacity to meet East Africa’s growing demand for cement driven by ambitious infrastructural development and thriving real estate as the region’s economy expands.

Kenya produced 4.7 million tonnes of cement in 2012, up from 2.8 tonnes in 2008, according to the Kenya National Bureau of Statistics.

Analysts expect production to grow in double digits in coming years driven by the ongoing construction boom.

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