Materials & Supplies
Roofing sheets, cement sales plunge as real estate slows
Recent wave of countrywide demolitions have discouraged new investments.
The uptake of cement and galvanized sheets used for roofing has registered significant decline this year, according to latest figures from the Kenya National Bureau of Statistics.
In the first nine months of the year, the amount of cement consumed in the country fell by 113,096 metric tonnes to 4.13 million metric tonnes compared to 4.24 million metric tonnes in the same period in 2017, KNBS data shows.
On the other hand, galvanized sheets production fell to 155,506 metric tonnes in the first seven months of the year, compared to 156,168 metric tonnes produced during a similar period last year.
The slump, which is much higher for individual manufacturers, has been blamed on the recent wave of countrywide demolitions that have discouraged new investments.
“The main reason is people are scared of continuing with development due to the demotions of buildings. Structures that were approved by other governments 20 years ago have been demolished,” says Narendra Raval, chairman of Devki, which produces cement and steel products.
Mr Raval noted that Devki has recorded declines in the sale of cement and galvanized sheets.
“Cement sales are down 15 per cent and galvanised sheets sales are down 18 per cent,” he said.
Mr Raval’s sentiments mirror those of Realtor HassConsult , which recently warned against what it termed as the State’s disregard of genuine land ownership documents and regulatory approvals while demolishing multi-billion shilling structures, saying the move was hurting real estate.
READ: Demolition of Nairobi malls sparks rare barrage of criticism
Head of Development Consulting and Research Sakina Hassanali said investors were fearful of the trend where State-sponsored demolitions appeared to target documented properties.
“The risk position for property ownership papers issued by government has risen tremendously as the same government does not recognise its own papers. This has hurt present and future property deals as investors are unsure of what will happen anytime soon,” she said.
Taj Mall, Southern Mall and Westgate in Nairobi are among high-profile buildings that have been demolished, with more targeted for destruction for intruding on riparian and road reserves.
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