Industry News

East African Portland Cement Set for Major Revamp as Kalahari Cement Pledges Capacity Expansion

Amsons Group CEO Edha Nahdi with EAPC MD CPA. Mohamed Osman Adan during an recent Amsons Management Team familiariasation visit

East African Portland Cement Plc (EAPC) is set for a major overhaul of its production facilities following a commitment by its majority equity investor, Kalahari Cement, to nearly triple the company’s annual cement output over the next three years.

The production enhancement and business turnaround programme will include manufacturing modernisation, energy efficiency upgrades and staff welfare initiatives, signalling renewed investor confidence in Kenya’s industrial sector amid the government’s push for accelerated infrastructure development.

EAPC, which currently operates with an installed cement production capacity of 1.3 million tonnes per annum (Mtpa), is targeting an increase to nearly 4 million tonnes annually once the planned upgrades are completed.

The Blue Triangle brand manufacturer will receive both financial backing and modern equipment from Kalahari Cement to support the expansion, positioning the firm to significantly increase its market share and operational competitiveness.

Rising cement demand

The planned expansion comes against the backdrop of growing cement production and consumption in Kenya. According to the Kenya National Bureau of Statistics (KNBS) Leading Economic Indicators report for November 2025, cement production rose to 9.5 million metric tonnes in the first eleven months of 2025, up from 8.1 million metric tonnes over the same period in 2024.

Cement consumption also increased to 9.3 million metric tonnes during the period, compared with 7.8 million metric tonnes in the corresponding period last year, reflecting sustained demand driven by public and private sector construction activity.

Industry analysts say the upward trend in cement demand is closely linked to large-scale infrastructure projects and urban development, creating opportunities for local manufacturers with sufficient capacity and efficiency.

US$200 million investment plan

Kalahari Cement, a locally incorporated investment firm and a subsidiary of the pan-African energy and manufacturing conglomerate Amsons Group, recently acquired a 69 percent controlling stake in EAPC as part of a long-term strategic investment.

Speaking during a facilities familiarisation tour of EAPC’s integrated manufacturing plant in Kitengela, Kajiado County, Amsons Group Managing Director Edha Nahdi confirmed that plans were at an advanced stage to facilitate investments exceeding US$200 million to support EAPC’s turnaround and modernisation.

The investment will include the development of a new energy-efficient grinding and clinkerisation plant aimed at improving production efficiency and reducing operating costs.

Mr Nahdi said Kalahari Cement has already commissioned a leading global Engineering, Procurement and Construction (EPC) contractor to provide a turnkey clinkerisation plant design for EAPC.

“This investment agenda is being fast-tracked to ensure that EAPC is fully positioned to support Kenya’s long-term infrastructure development plans,” Mr Nahdi said.

Aligning with national infrastructure goals

The expansion strategy is aligned with President William Ruto’s 10-year infrastructure roadmap, which focuses on large-scale investments in roads, rail, ports, airports and oil pipeline infrastructure.

Mr Nahdi said the availability of locally produced, high-quality cement would be critical to the successful delivery of the ambitious development programme.

“We appreciate that the delivery of the 10-year national development roadmap will be heavily reliant on the local availability of quality cement and concrete products,” he said. “Amsons Group is putting its money where its mouth is to power Kenya’s development and economic transformation.”

The KSh 5 trillion infrastructure roadmap is expected to be financed through the National Infrastructure Fund and is aimed at accelerating Kenya’s transition into a globally competitive economy.

Boost for jobs and staff welfare

During the tour, EAPC staff welcomed the Amsons Group delegation, expressing optimism that the recent equity acquisition would resolve long-standing operational uncertainties that had constrained growth.

Employees said the turnaround plans provide renewed job security and a clearer long-term outlook for the company.

Mr Nahdi reaffirmed Amsons Group’s commitment to a shared prosperity model, noting that staff welfare would remain a key pillar of the modernisation agenda.

“Amsons is a family-owned business with a rich heritage, and we are committed to prioritising staff welfare initiatives to secure the lives of EAPC staff, their families and other stakeholders,” he said.

Beyond stabilising the company, the expansion is expected to create new employment opportunities across the cement value chain, including manufacturing, logistics and construction-related services.

Market repositioning

With upgraded manufacturing infrastructure and increased output, EAPC is expected to more than triple its current market share and play a larger role in supplying cement for major national infrastructure projects.

The turnaround is also likely to strengthen competition in Kenya’s cement industry, which has faced pressure from high energy costs, imports and capacity constraints in recent years.

If successfully implemented, the EAPC modernisation programme could mark one of the most significant revivals of a legacy industrial manufacturer in Kenya’s recent history.