Steel.
In January 2022, President Uhuru Kenyatta banned trading in scrap metal. This affected local steel producing companies hence steel prices doubled . Rebar size D8 sold for kes 550 per bar in January. In March, the price has nearly doubled to kes 950 . Prices should come down if President Uhuru Kenyatta rescinds the decision to ban scrap metal dealings.
Cement.
Simba Cement, which is the largest producer of cement in Kenya after acquisition of Athi River Mining cement company, produces 2.7million tons per year followed by Bamburi cement at 2.1million tons per year.
Simba cement produces its cement clinker locally while the rest of the competition, Bamburi, Savannah, EAPL import clinker. The importation of clinker has been affected by the covid pandemic situation where there are shipping delays internationally hence the shortage of cement currently being witnessed.
Simba cement production has been slowed down by the huge import of clinker by Savannah, Bamburi and EAPortland cement companies. https://www.kahawatungu.com/national-cement-company-sacks-860-employees-emali-factory/
This imbalance has resulted to the current cement shortages whereby cement price has jumped from a low of kes 500 per bag in January 2022 to current March 2022 prices of kes 700 per bag.
These problems will cease once the Kenya Government Ministry of Trade comes in to help resolve the cement wars.
Devki
Coincidentally, both Simba Cement and Devki steel are the leading cement and steel producers in Kenya and owned by Narendra Raval.
Architect Francis Gichuhi Kamau.
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