cement industry in Kenya is undergoing a major structural transformation. At the end of 2024, Holcim withdrew from Kenya and sold its 58.6% stake in Bamburi Cement to Amsons Group in Tanzania. The group has signalled plans for new capital investment, including a proposed clinker facility at Kwale.
Meanwhile, Kalahari Cement, which is associated with the Amsons Group, received regulatory approval in August 2025 to acquire a 29.2% stake in East African Portland Cement without triggering a mandatory tender offer. In the same period, Savannah Cement was acquired by a consortium of Kenyan mill owners in August 2025 for KSh3.8bn, a deal that has been approved by the competition regulator.
According to official data, cement production in the first half of 2025 increased by 17.3% year-on-year to 4.85 million tons from 4.14 million tons in the same period in 2024.
From March to June 2025, monthly production exceeded 800000 tons for four consecutive months, the first time since July to November 2023 that such production exceeded that level for four consecutive months. May 2025 was the strongest month for production, reaching 845017 tons, with production exceeding 800,000 tons several times since August 2023.
Cement consumption also showed a similar upward trend, reaching 4.76 million tons in the first half of 2025, up 22.1% year-on-year from 3.9 million tons in the first half of 2024. In terms of
consumption trends, consumption peaked in May at 829570 tonnes, the highest monthly level since August 2023 (when production was around 834,000 tonnes), an increase driven by steady demand in the housing, infrastructure and commercial construction sectors.
Despite the government's affordable housing programme, the surge in demand for cement is more of a recovery from the 2024 trough than exceptional boom. The price of bagged cement remains high, ranging from Kshs 780 to Kshs 855 per bag, suggesting that housing projects are absorbing existing capacity rather than triggering new supply expansion.