The Company stated in a statement and said that the Competition Authority of Kenya (CAK) has approved the acquisition of a West Pokot-based cement business Cemtech Limited by Simba Cement Limited in a move that is set to give the factory a lifeline.
Ortum Cement project
The regulator gave Simba Cement, a subsidiary of the Devki Group of Companies, the go-ahead to buy 100% of the business and assets of Cemtech owned by Indian conglomerate Sanghi Group.
The Ortum Cement project which was supposed to commence in 2010, will begin within a year with the construction expected to take eighteen months. The regulator gave Simba Cement, a subsidiary of the Devki Group of Companies, the go-ahead to buy 100 percent of the business and assets of Cemtech owned by Indian conglomerate Sanghi Group.
Simba Cement is already seeking an audience with residents of Sebit, where the cement plant would be based. It is expected to mine limestone on a 650-acre piece of land within the Ortum belt. Public participation and consultation involving the community will also commence soon.
Simba Cement is operating under National Cement brand name and holds 8% of the market share, which is the lowest. Bamburi Cement Limited holds the largest share of the cement market at 33%, Mombasa Cement Limited at 16%, East African Portland Cement Company at 15%, Savannah Cement 15% and Athi River Mining Africa Limited 13%.