Chinese, Kenyan Firms Sign 250-Mln-USD Deal to Boost Cement Production
2025-12-17 17:25
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Wedoany.com Report-Dec.17, Bamburi Cement, based in Kenya, has entered into a $250 million engineering, procurement, and construction agreement with CBMI Construction Co., Ltd., a Chinese firm, for the establishment of a clinker grinding facility in Kwale county.

The contract was signed in Nairobi on December 17, 2025.

At the ceremony, President William Ruto described the initiative as a vital investment supporting Kenya's development goals through encouragement of public and private sector contributions.

"This project will play a critical role in strengthening Kenya's industrial capacity and supporting the delivery of strategic national infrastructure, including the Affordable Housing Program," Ruto said.

He highlighted anticipated benefits, including job creation for youth, enhancement of local businesses and supply networks, and promotion of equitable industrial growth centered in the coastal area.

The facility will incorporate a six-stage precalciner configuration and employ measures to lower emissions, utilizing alternative fuels such as coconut husks, cashew shells, and processed municipal waste.

Mohit Kapoor, chief executive officer of Bamburi Cement, stated that the new plant, with an annual capacity of 1.6 million tonnes of clinker, will substantially decrease Kenya's dependence on imported clinker. This shift aims to ensure stable supply and consistent quality for local cement production.

He added that the installation features modern technologies oriented toward reduced carbon output, contributing to environmentally responsible operations while advancing national infrastructure and economic progress.

The project represents a significant expansion for Bamburi Cement, reinforcing its role in meeting domestic construction material demands.

By producing clinker locally, the facility addresses supply chain vulnerabilities associated with international sourcing, promoting greater self-sufficiency in building materials.

Advanced emission control systems align with broader objectives for sustainable industrial practices.

Alternative fuel integration leverages available biomass and waste resources, optimizing energy use and supporting circular approaches.

The plant's location in Kwale county stimulates economic activity in the region, fostering opportunities along the value chain from raw material handling to distribution.

Employment generation extends beyond direct roles to include indirect positions in logistics, maintenance, and ancillary services.

Technological features enable efficient production scales suitable for supporting large-scale housing and infrastructure initiatives.

Bamburi's investment underscores confidence in Kenya's growth trajectory, particularly in construction-driven sectors.

Collaboration with an experienced international contractor facilitates transfer of specialized knowledge in plant design and execution.

Upon completion, the unit will enhance overall cement availability, aiding timely project delivery across public and private developments.

This development positions Bamburi to better serve evolving market needs with reliable, domestically sourced inputs.

The agreement exemplifies partnerships that combine local priorities with global expertise to achieve shared advancement goals.

Overall, the new clinker production line contributes meaningfully to industrial capacity building and resource optimization in Kenya.

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