Cement Company receives loan from IFC
By Nicholas Nduati
National Cement Company has received a 6.15 billion shillings loan from the International Finance Corporation to fund its cement production expansion program.
National Cement Company CEO Narendra Raval says the fivefold increase in cement production by the firm will see a significant reduction in price of cement in the country.
Cement prices in the country have been rising gradually hitting 800 shillings per 50 kg bag, which has driven up the cost of construction.
However, the coming in of cement production companies in the local market has seen an increase in competition as well as a gradual reduction in the volume of imported cement.
The loan will enable the company increase cement production fivefold to 1.7 million metric tons in two year’s time at a cost of 17.5 billion shillings.
Raval says National Cement Company plans to close the 6 million tons per year cement production gap in the country, needed to stabilize cement prices, and in the process create over 6,000 jobs.
The project marks IFC’s largest investment in building materials globally since the year 2010, and sees Kenya benefit immensely in its efforts towards bringing down the cost of construction.