Bamburi earns Sh1bn from cement supplies to SGR builder

A truck leaves the Bamburi Cement factory.
A truck leaves the Bamburi Cement factory. PHOTO/FILE
Bamburi Cement has supplied 300,000 tonnes of cement to the standard gauge railway contractor, China Road and Bridges Corporation (CRBC), grossing more than Sh1 billion.

The cement maker said on Friday that the SGR contract, which came into effect on September 2014, had helped it to grow its annual production capacity to more than two million metric tonnes.

“The standard gauge railway contract has increased our production by 10 per cent to more than two million tonnes per year,” said Bamburi’s commercial director Geoffrey Ndugwa.

Bamburi, partly owned by global cement giant LafargeHolcim Ltd, becomes one of the largest beneficiaries of the Sh327 billion railway project.

The firm posted 86 per cent growth in net profit for the half year ended June 2015 at Sh3 billion, driven by improved sales.

The cement maker is betting on the usage of its recently launched soil stabiliser to further grow its revenues.

“The rehabilitation of 52km of Mombasa Road between Bachuma and Maji ya Chumvi will involve the usage of Bamburi’s soil stabiliser called Roadcem, a first in the region,” the company said in a statement.

Bamburi is also supplying cement to dozens of ongoing mega projects across the country, including the 310 MW Lake Turkana Wind Power that is currently underway in Marsabit.