Kenya’s Dangote Cement to acquire limestone mines in Kitui town

7635 Dangote Cement of Nigeria is planning to compete with cement producers in Kenya to own limestone mines in Kitui as the town has huge limestone deposits and is near Mui Basin with large coal reserves.

Dangote Cement is planning to build a 5,500tonnes/year plant costing KES 36 billion (€333.28 million/US$ 395.59 million) in Kitui, and politicians in Kitui plan to help the company get government approvals faster.

Meanwhile, 7789 ARM Cement intends to build a factory with annual capacity of 8,000tonnes in Kitui but the government threatened to revoke prospecting licenses given to the company. This is said to be because the company allegedly tried to directly buy lands from residents when it can only lease the land in negotiations monitored by the county government.

The management of East Africa Portland Cement Company (EAPCC) has been urged by its board of directors to sign agreements with Kitui government to secure limestone deposits.

Kenya currently has 5 million tonnes of cement capacity in 2014 and the volume is expected to double in coming years.