In Summary
  • Data from the Kenya National Bureau of Statistics up to December last year shows that use dropped from 5.78 million tonnes.
  • This is the lowest since 5.19 million tonnes used in 2014.
  • Last year’s reduced consumption forced cement makers to cut production by 8.6 percent to 5.63 million tonnes.

Cement consumption dropped for the second year in a row to 5.49 million tonnes in 2018, pointing to sluggish growth in the real estate sector.

Fresh data from the Kenya National Bureau of Statistics (KNBS) up to December last year shows that use dropped from 5.78 million tonnes, sending it to the lowest since 5.19 million tonnes used in 2014.

Last year’s reduced consumption forced cement makers to cut production by 8.6 percent to 5.63 million tonnes. This is from a high of 6.7 million tonnes in 2016.

The decline is despite ongoing public infrastructure projects such as roads and phase two of the Standard Gauge Railway (SGR) as well as continued development of buildings in the country.

The dip in consumption came in a year that market leader, Bamburi Cement, issued a profit warning for the second year in a row, preparing investors for its lowest earnings in more than 10 years.

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