Raval’s Sh45Bn clinker plant eyes East Africa market
A new Kes45 billion clinker factory in West Pokot has set its sights on serving the rising demand for the key cement-making component in East Africa.
The plant, which is part of billionaire Narendra Raval’s investments is based in West Pokot County. Cemtech Sebit Clinkerization factory, whose construction started in 2010, is set to produce 6,500 tonnes of clinker every day translating to about two million tonnes per year.
According to Raval, the firm which is part of his Devki Group, has created roughly 2,500 jobs mainly for locals of the county, which is often associated with insecurity and cattle rustling.
“West Pokot County is about to experience an economic resurgence through incomes from various sources, associated with the factory, including wages, consumption and increased revenue,” said President William Ruto during the commissioning of Cemtech Plant.
“This plant will export clinker worth $200 million every year to Uganda and Tanzania. Our capacity here is 6 million tonnes of clinker and we will push that to 12 million tonnes after we set up the Kitui plant,” explained Raval.
He added that the West Pokot plant has invested in heat recovery systems ensuring that no dust or heat ends up in the environment. From that, the industrialist noted that the firm would produce 9MW of power. “We have invested Kes150 billion in the last five years. That’s because my dream is to make Kenya import-free.”
Read also: Savannah inks Sh65 billion deal to build giant clinker plant
Clinker demand
The demand for clinker, a key component in cement production is a big challenge in East Africa. In 2020, Kenya was grappling with a shortfall of 3.3 million tonnes of clinker. At the time, cement firms in Kenya operated at only 65 percent of their installed capacity, producing 3.8 million tonnes of clinker against a demand of 5.3 million tonnes.
This shortfall necessitated heavy reliance on imports, with 59 percent of the deficit being imported from Egypt duty-free under the Comesa agreement.
Kenya’s clinker woes are further compounded by the move to increase import duty on clinker, aiming to encourage local production potentially sparking a 15 percent increase in both locally producer and imported clinker.
Earlier, Savannah Cement reported undertaking a Kes65 billion investment in Kitui County for the production of clinker aiming to produce 2.7 million tonnes annually.
Savannah Cement’s plant, which is expected to start operations mid-this year, is partly financed through a bond on the London Stock Exchange.
