Dangote Cement penetrates giant Kenyan Cement Market

Dangote Cement penetrates giant Kenyan Cement Market

Kinachosikitisha ni kuona awamu ya nne ilijitolea kuandaa Katiba mpya, lakini wahafidhina wakampotosha kiongozi na kuleta Inayopendekezwa yenye mambo yaleyale ya kizamani. Ama kwa hakika Maoni ya Wananchi ambayo Jaji Warioba waliyakusanya, yalikua na mambo mazuri sana kwa mustakabali wa nchi, lakini looo, tumebaki palepale.
Kinachosikitisha ni kuona awamu ya nne ilijitolea kuandaa Katiba mpya, lakini wahafidhina wakampotosha kiongozi na kuleta Inayopendekezwa yenye mambo yaleyale ya kizamani. Ama kwa hakika Maoni ya Wananchi ambayo Jaji Warioba waliyakusanya, yalikua na mambo mazuri sana kwa mustakabali wa nchi, lakini looo, tumebaki palepale.

CHAZA uko sahihi kabisa. Nilipata fursa ya kusoma mara mbili Rasimu ya Pili ya Katiba ya Warioba na mpaka leo najiuliza, je uzalendo wa viongozi wa CCM (walioikataa hiyo rasimu) uko wapi?

Katika kufutilia inawezekanaje vigogo wote wa CCM waipinge rasimu ambayo kiuwazi kabisa inaweka maslahi ya taifa mbele, nikakutana na hii nukuu ya James Freeman Clarke:

"The difference between a politician and a statesman is that a politician thinks about the next election while the statesman thinks about the next generation".

Ukweli ni kwamba hatuna viongozi wa kitaifa (statesmen) katika maana yake halisi katika nchi hii; tuna wanasiasa maslahi tu. Na hii inatokana na kutokuwepo taasisi huru, imara na thabiti za kisiasa (vyama vya siasa, tume ya uchaguzi, nk) vya kuhakikisha nchi inapata viongozi wa kweli.

Mfumo iliopo unatoa tu fursa, kwa mfano, kwa rais aliyeko madarakani kuhakikisha anaanda timu na mazingira vitakavyomrahisishia kurudi madarakani baada ya uchaguzi unaofuata, kama kipaumbele chake. Mambo ya ustawi wa wananchi siyo kipaumbele na ndio maana kuna hii kadhia ya kiwanda cha Dangote.
 
By Naomi Kamau.

Africa’s richest man with a fortune valued at $20.8 billion (Sh1.78 trillion) by Forbes Magazine ,Aliko Dangote, a Nigerian tycoon is set to penetrate the Kenyan lucrative Cement market.

The government has issued an operating license to Dangote Cement, paving way for the conglomerate to establish a $400 million (KSh34.4 billion) plant in Kitui County. The entry of Dangote Cement will exert pressure on existing producers and cut margins in the local and regional cement market.


Aliko Dangote, who owns Dangote Company.

Kitui is the ideal location for cement production plants due to the availability of limestone deposits and proximity to the Mui basin, which has coal reserves.

Dangote Group has been given a go ahead to prospect for limestone and other relevant minerals in Kanziku-Simisi, Kitui South Sub-County. The project will include installation of equipment as well as mining, quarry and power facilities.

Athi River Mining (ARM) Cement also plans to invest in Kitui. ARM will invest up to $300 million (Sh25.5 billion) to fund new plants including the planned unit in Kitui that will produce 8,000 tonnes of cement per day.

This will make it the single largest cement factory in the country ahead of the planned Dangote cement plant that will have a daily capacity of about 5,500 tonnes.

“While new entrants have succeeded in using discount pricing as a tool to segment the market, it is only a matter of time before intense rivalry cuts across the entire market,” A report by East Africa Cement Sector by Standard Investment Bank (SIB) said.

Dangote Group has partnered with China’s Sinoma International Engineering Company in a deal worth $1.487 billion to build cement plants in several African countries including Kenya, Ethiopia, Tanzania, Zambia, Senegal, Niger, Mali, Cameroon, Cote d’Ivoire and Ghana. This move is expected to increase by 50 percent the existing production of almost 50 million tonnes of cement.

“The investment is fine if they follow the same process as others: there are a lot of community issues but if they play on a level playing ground without getting special status that is fine.” Pradeep Paunrana, Kenya Association of Manufacturers , incoming chairman said.

In July 2015, about 42 percent of Dangote’s cement sales were sold outside Nigeria. The company had also cut prices in its home market in an attempt to boost cement consumption and compete with imports.


Dangote Group businesses deal with cement, sugar, flour, salt, pasta, beverages and real estate.

In 2014, Kenya produced 4.7 million tonnes of cement last year, up from 2.8 tonnes in 2008, according to the Kenya National Bureau of Statistics.

Most cement firms are using coal to power their machines as opposed to expensive oil fuel, which is prone to price volatility. Kenya imports the bulk of its coal from South Africa.

Economy

According to the East Africa Cement Sector Valuation by Standard Investment Bank, through to 2017, Kenya is expected to remain the dominant country accounting for 42% of total consumption, 51% of total production and 50.5% of total grinding capacity.

Kenya’s GDP is expected to grow at an average of 5% in the next ten years, creating more opportunities and interest from investors. Fortunately, demand for cement will increase owing to increase in individual construction, real estates, and the construction of the new standard gauge railway project estimated to use 500,000 – 650,000 tons of cement this will be a great market for Bamburi Cement.

In Kenya, clinker, the main raw material used in the manufacturing of cement, is imported, exposing the industry to currency risk. For instance, Bamburi posted a decline of 9.5%. in margins owing to increased use of imported clinker, rising energy costs and weak pricing environment due to increased competition.

The cement makers rely on volumes to grow profits given that prices have remained static over the past three years despite a rise in raw material costs. Analysts expect the prices to come under pressure from the new cement capacities.

The government should set a fair play ground for local producers and investors to capitalize on cement production.
Moderate , mnacho Fanya sio poa hata kidogo Jana niliandika kuna tetesi ya kiwanda cha dangote kuamia Kenya ila hiyo nyuzi mliitoa

Haya Leo yamekuja mengine please mrudishe ile nyuz
 
Some people are very insane and they think that being in power means destroying all the previous plans and erecting the new ones..!!
If we do not posthaste change; we are going the Zimbabwe's way..!!
 
Sio mikoani tu. Mwijage alisema hata wewe nyumbani kwako kama una blender, hicho ni kiwanda tayari maana kitasaidia kuhakikisha matunda yanageuzwa kuwa juice badala ya kuozea shambani. Walio na mashine za kusaga mahindi huko vijijini vile ni viwanda pia.

HIVI NI KWELI HUYU MHESHIMIWA ALISEMA HAYA MANENO?
 
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Hakuna haja ya kusuguana ni suala la kukaa chini na kuzungumza na uzalishaji uendelee
 
Mimi yangu macho na masikio.Lakini Nina imani kuna jambo kubwa kuliko anayosema waziri na Dangote hadharani .Hapo lazima mikono ya mafisadi Wa bongo IPO tu.
Hata mimi ninahisi kuna jambo kubwa aa kifidadi nyumba yake ambalo lilikubariwa uongozi uliopita sema dangote hawezi sema na mawaziri hawasemi ila kuna jambo.
 
Hizi zote kelele tuu za kukosa ulaji,jamaa hakuwa msafi,unyonyaji ndio uliomleta haraka haraka.
 
Sijui kundi la watawala wa jamii zile walilewa wakiwa tumboni au?yetu macho Tanzania na sizitaki mbichi hizi.....aheri ya jana kuliko leo.
 
Nafikiri ni viwanda vya kubambikizia watu kesi na kudhurumu haki zao......hiyo ndo imepamba moto.
 
Kuna ishu kubwa nawasiwasi nayo itakuwa ipo nyuma ya Dangote
 
Kama ni kweli basi hivi ndivyo Kenya wanavyosawazisha bao la Bomba la Mafuta tulilowapoka kinywani
 
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