Dangote to invest $600m in Kenya cement factory

The President, Dangote Group, Alhaji Aliko Dangote, on Sunday said the conglomerate would invest over $600m in the establishment of a cement factory in Kenya.

He said the cement factory would have capacity for three million tonnes per annum, adding that all arrangements had been concluded by the group for its establishment.

He spoke receiving a delegation of the Kenyan government led by the Deputy President, Mr. William Ruto, at the Obajana Cement plant in Kogi State.

According to Dangote, what is left for now is the operation licence, which the company is expecting from the Kenyan government.

“We have concluded arrangements to invest $600m in the cement factory in Kenya. As soon as the operation licence is issued to us, we will commence work immediately,” he said.

Dangote later took the delegates around the plant and the mining site at Oyo-Oworo village in Obajana.

He said 98 per cent of the raw materials being used by the company were locally sourced, adding that 180 megawatts of electricity were being generated in the plant to power the machines.

Dangote also said that company was spending N28bn annually on diesel to keep the power plant running, adding, however, that the company planned to use gas instead of diesel, a decision that would cost the company about N8bn per annum.

Ruto said the team was satisfied with the development at the Obajana factory and promised that the Kenyan government would issue the operation licence to the Dangote Group in a month’s time to facilitate the setting up a factory in the country.

“What I have seen here in Obajana has convinced me beyond reasonable doubt that we are dealing with the right man. Dangote has the capacity to change the way we produce cement in Kenya, he said.