KNBS: Cement consumption rises to 2M metric tons
By O’Brien Kimani
Cement consumption for first five months of this year went up by more than four hundred thousand tons to two million metric tons according to the latest figures from the Kenya National Bureau of Statistics.
The leading economic indicator report says the quantity of cement produced increased from 461 thousand metric tons in April 2014 to 477 thousand metric tons in May 2014.
Consumption also went up from 427 thousand metric tones recorded in April 2014 to 450 thousand metric tones in May 2014.
The construction industry is witnessing a major boom with the government and the private sector embarking on mega projects like the LAPPSET corridor and the standard gauge railway line plus the various shopping malls and multi-storied buildings under construction around the country.
Latest economic indicators data from the Kenya National Bureau of Statistics indicates that the production and consumption of cement in Kenya has nearly doubled as the real estate sector continues to shine.
The industry is among the fastest growing in the country, with consumption jumping by more than 100,000 metric tons the consumption a year ago.
However, the building and construction sector recorded a slower growth of 4.9 percent compared to a growth of 7.4 percent in a similar quarter in 2013.
According to KNBS, Kenyans are now consuming more than 450,000 metric tons per month, up from 340,000 metric tons a year ago.
In May, consumption of cement in stood at 450,379 metric tons. This was an increase of 112,513 metric tons from what the country consumed in a similar period last year and 140,878 metric tons more in comparison to figures in 2012.
The report further says the use of cement has increased from March, with consumption rising from 387,266 metric tons to 426,523 metric tons in April and 450,379 metric tons in May.
There are five cement companies in Kenya, namely Bamburi Limited, Rhino, East African Portland, Athi River Mining and Savanna.
Bamburi and East African Portland are the largest, commanding more than half of the market share.
As demand of cement increases, more players are set to come into the sector, among them Dangote Cement, owned by Nigerian tycoon Aliko Dangote and the Indian based Sanghi group of company who are putting up a 12 billion shillings plant in Pokot County.