Cement consumption grew 18 percent in the half year ended June, driven by increased construction activities in the private sector that defied a surge in cement prices.
Latest data from the Kenya National Bureau of Statistics (KNBS) shows that 4.97 million tonnes of cement were used in the six months from 4.06 million tonnes consumed in a similar period last year.
The higher consumption defied a sharp rise in the cost of the product, where the retail price of a 50-kilogramme bag of cement has increased by at least Sh300 since March on rising costs of raw materials.
Private sector construction projects have been picking up this year after being held up since 2020 due to the Covid-19 pandemic, which not only disrupted building sites due to movement restrictions but also caused a dip in demand for housing and office space as thousands of Kenyans lost their jobs.
In its half-year financial report released late last month, listed cement maker Bamburi Cement pointed to higher volumes in the period, which helped it grow its turnover by 2.6 percent to Sh20.1 billion.
“This was driven by volume growth along with improved average selling price compared to the prior year,” said Bamburi in the report. – BD
