Kenyan cement giant awaits directors’ approval for SA plant

ARM Cement, Kenya's second- largest maker of the building material, has yet to receive its directors’ approval for a plan to construct a plant in South Africa, Managing Director Pradeep Paunrana said.

"We have not approved any budget or plans at our board yet," Paunrana said in response to questions via text message on Thursday.

Mafikeng Cement, in which ARM has a 70% stake, plans to build a plant with daily capacity of 3 000 metric tons in the continent’s biggest economy, Nairobi-based Business Daily newspaper reported on Thursday, citing Paunrana.

Sub-Saharan African nations from Kenya to Nigeria are investing in the construction of ports, railways and power-generation projects that will help accelerate economic growth.

ARM is considering selling Eurobonds to help fund a planned $300-million expansion program that will double cement production within four years, Paurana said on November 7.

Kenya's per-capita cement consumption has surged 60% to 85.7kg over the past five years, according to Kestrel Capital East Africa. That compares with 300kg in South Africa and 500kg in Egypt, according to ARM. Bamburi Cement, the Kenyan unit of Lafarge SA, is the nation’s biggest producer of the material.

ARM shares declined for a second day, losing 2.8% to 87.50 shillings by 11:48 am in Nairobi. About 14 000 shares, or 11% of the daily average over the past three months, changed hands. – Bloomberg

Keep the powerful accountable

Subscribe for R30/mth for the first three months. Cancel anytime.

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.

Eric Ombok
Guest Author

Related stories


Already a subscriber? Sign in here


Latest stories

Mabuyane warns ANC provincial executive against another ‘festival of chairs’...

The ANC chair in the Eastern Cape, Oscar Mabuyane, urges PEC members to accept election outcomes and not devolve into the violence of the “festival of chairs”

Going back to the future of KwaZulu-Natal politics

The past is helpful in understanding the predatory and violent nature of political factionalism in the province. But it doesn’t answer the question of how to fix it.

Coalition negotiations: A sidelined ANC, a surprised DA and a...

If South Africa is moving from being a dominant-party system to a more vibrant, multiparty democracy, as these elections indicate, then coalitions are going to have to become the norm

press releases

Loading latest Press Releases…