Kenya moved closer to cement self-sufficiency Tuesday as Bamburi Cement signed a $250 million (KSh32 billion) contract with China’s Sinoma CBMI Construction Co. to build a major clinker production plant in Kwale County, with President William Ruto witnessing the deal.
The engineering, procurement and construction agreement will establish a greenfield facility in Matuga with an annual capacity of 1.6 million tonnes of clinker, the key ingredient in cement. The project is expected to more than double Bamburi’s clinker output from 1 million tonnes to 2.6 million tonnes per year and boost cement production from 1.8 million tonnes to around 3.4 million tonnes.
Bamburi, now controlled by Tanzania’s Amsons Group, said the plant will incorporate advanced low-carbon technologies to reduce emissions.
“The new clinker line will greatly reduce reliance on imported clinker, improving quality production consistency and securing supply for the domestic market,” Bamburi CEO Mohit Kapoor said at the signing ceremony in Nairobi. “This will save forex resources, stabilize pricing and ensure we meet rising demand from national infrastructure programs.”
Ruto hailed the investment as vital for Kenya’s development goals, emphasizing the country’s abundant limestone resources make imports unnecessary.
“It is not possible for us to continue importing cement. We have enough limestone and all material required for cement production,” the president said. “Strengthening clinker production capacity is fundamental to securing the cement value chain.”
He noted local manufacturers have invested more than $700 million (KSh91 billion) in clinker facilities over the past three years, including a KSh45 billion Cemtech plant opened in 2023 and another KSh40 billion site slated for commissioning in Kitui County next year.
Jobs and Economic Impact
The two-year construction period is projected to create over 10,000 direct and indirect jobs, boosting local businesses in Kwale and the coastal region.
Amsons Group managing director Edha Nahdi said the project supports Ruto’s ambitious KSh5 trillion infrastructure roadmap.
“Amsons Group stands ready to support the president’s 10-year plan on roads, rail, ports, airports and oil pipelines,” Nahdi said. “By signing this contract, we are putting our money where our mouth is to power Kenya’s national development and economic transformation.”
Attendees included Trade and Investment Cabinet Secretary Lee Kinyanjui, Bamburi Chairman John Simba and other officials.
Infrastructure Push
Ruto said increased local cement production is essential for government projects, including affordable housing, 50 major dams for power and irrigation, dualling 2,300 kilometers of highways and tarmacking 28,000 kilometers of roads.
“Our national project is anchored on strategic infrastructure development, expanded energy and large-scale irrigation to unlock productivity in agriculture, manufacturing, housing, transport and services,” he said.
The president reiterated support for private investment in infrastructure, pledging to remove policy barriers.
The deal follows Amsons Group’s acquisition of a majority stake in Bamburi last year, underscoring growing investor confidence in Kenya’s industrial sector.
