Cement companies are in trouble as they struggle to service their financial costs in the wake of the coronavirus pandemic.
Bamburi Cement which had a total installed annual capacity to 3.2 million tonnes says it had reached an Sh436 million financial cost last year from Sh258 million in 2018.
However, investments have been redirected by the pandemic, which has made the company to reset its outlook.
“Post –Covid-19, with government expenditure, refocused towards the war on Covid-19, we will need to reassess the market and the general economic situation,” said Bamburi Chairman John Simba.
Devki Group National Cement Company is also dancing to the same song.
“We have seen a big drop in demand to 30 per cent because those who have finished projects do not want to start new ones. Profits are down, and it is challenging. But there is nothing we can do because it is a global challenge ad it is not just us,” said Narendra Raval, founder Devki Group founder.
Again, the cement companies are experiencing a fall in the construction sector which recorded a 1.3 per cent drop last year.