Dangote Cement Rules Out New Plant in Kenya Over Limestone Challenges
Dangote Cement has announced it will not establish a new manufacturing plant in Kenya in the medium term, citing difficulties in securing suitable large-scale limestone reserves. CEO Arvind Pathak stated that Kenya is excluded from their current 80 million tonnes expansion plan, with focus instead on expanding operations in Ethiopia and optimizing plants in Tanzania.
Why it matters
This decision impacts Kenya's industrial development and cement supply, highlighting the critical role of raw material availability in large-scale manufacturing investments. It also signals Dangote Cement's strategic shift in its East African expansion plans.
An image of a Dangote Cement Plc logo on a barrier during ongoing construction at one of the company's plants. Photo Addis Standard --> Dangote Cement has revealed that it will not establish a manufacturing plant in Kenya in the medium term, citing challenges in securing suitable limestone reserves for a large-scale operation.
Chief Executive Officer Arvind Pathak made the disclosure during Dangote Cement’s Capital Markets Day in London on September 21, where he outlined the company’s expansion plans across its African markets.
Pathak said Kenya is currently excluded from the company’s business plan targeting production of 80 million tonnes, which currently entails an expansion of 25 million tonnes.
“Right now in our business plan, which we have presented for 80 million tonnes, Kenya is not figuring in that. So in this period, that is the medium term, we do not envisage to have a plant in Kenya,” he said.
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