Cement production rose by 17.3% in the first half of 2025 to 4.85 million tonnes from 4.14 million tonnes in the same period of 2024 according to official data.
- •Monthly output crossed the 800,000-tonne mark consistently from March to June 2025, marking the first four-month streak above that level since July to November 2023.
- •May 2025 was the strongest month, with output hitting 845,017 tonnes, and since August 2023 production has repeatedly tested levels above 800,000 tonnes.
- •Cement consumption followed a similar trajectory, rising to 4.76 million tonnes in H1 2025 compared to 3.90 million tonnes in H1 2024, a 22.1% year-on-year growth.
Consumption Trends
Consumption peaked in May at 829,570 tonnes, the highest monthly level since August 2023 when output was about 834,000 tonnes, driven by steady demand across the housing, infrastructure, and commercial construction segments.
Despite the government’s affordable housing agenda, the surge in cement demand is more of a recovery from 2024 lows rather than an extraordinary boom. Bag prices remain elevated, ranging from KSh 780 to KSh 855, suggesting that housing projects are absorbing existing capacity rather than triggering new supply expansions.
Industry Context
The industry is navigating major structural shifts. Holcim exited Kenya in late 2024, selling its 58.6% stake in Bamburi Cement to Tanzania’s Amsons Group. Amsons has since initiated a squeeze-out of minority shareholders, with Bamburi suspended from NSE trading between February and May 2025. The group has signaled new capital investments, including a proposed clinker facility in Kwale.
Meanwhile, Amsons-linked Kalahari Cement received regulatory approval in August 2025 to acquire a 29.2% stake in East African Portland Cement without triggering a mandatory takeover offer. At the same time, Savannah Cement was rescued from distress in August 2025 by a consortium of Kenyan millers in a KSh 3.8 billion deal approved by the competition regulator.
Energy costs remain a key challenge, prompting firms like Bamburi and Mombasa Cement to seek solar and captive power solutions to reduce reliance on the national grid.
