The cost of cement is set to reduce in Kenya after President Uhuru Kenyatta issued a directive during his inauguration for power prices to be cut; of which will enable the cement companies to achieve regional competitiveness.
Cement companies- Savannah and National Cement confirmed the reports and said that they saw demand for local cement increasing as Kenya becomes more competitive as a source of commodity.
Savannah Cement Managing Director Ronald Ndegwa said that the 50% power charge reduction between 10pm and 6am will be beneficial to several industries in the country and unlock money that could be spent in improving operations hence boosting sales in the region.
“That is money straight into our pockets as we spend between US $400,000 and US $500,000 a month. Considering that we operate 24 hours a day, such a move will positively impact on our customers,” he explained.
The slash amounts
The slash amounts is to close to a quarter of Savannah’s current power charges which gives them an opportunity to re look at their investments. Their 1.2 million metric tonnes plant that will manufacture road making cement is however still under construction and slated for completion late next year.
Cement maker Devki Group Raval Narendra added to the news and pointed out that Kenya’s cement would now be more competitively priced locally and at the regional level.
“Kenya’s image as an investment destination will improve since its power prices are coming down. It is easier now to determine lower prices since our profit margins allow it,” he said.
Savannah also confirmed their commitment to improve construction work by signing an agreement with the National Construction Authority (NCA). This will eventually allow their facilities to be used as an experiential training centre for building contractors and masons.
About Savannah Cement
Savannah Cement is a state of the art, eco-friendly cement grinding plant with a capacity of 1.5 million tons a year. Savannah’s value proposition is driven by a promise of a differentiated and intentional customer experience, best value in terms of price and consistent quality coupled with a strong distribution.