Tororo Cement loses limestone tender deal to India’s Sanghi

Kampala

Tororo Cement Industry has lost a limestone tussle to an India firm, almost three years after it expressed interest to exploit the rich deposits in Kenya’s Rift Valley Province.

Multibillion dollar Indian Sanghi Group is now set to invest $80 million (about Shs112 billion) in a cement plant in one of Kenya’s most arid areas.
 
The group’s local subsidiary, Cemtech, with the support of International Finance Corporation (IFC) is also seeking to invest in a one million tonne cement factory in Pokot District, and its official launch is expected to soon.

Tororo Cement factory, in early 2007 expressed interest in exploiting the extensive limestone deposits and has since then been tussling with Rift Valley’s Pokot District authorities for approval to extract the precious rocks.

The authorities, which had earlier on rejected the industry’s proposal since Kenya’s Ministry of Trade and Industry had plans to establish a state owned cement firm in the area allowed Tororo Cement to bid again after the exercise was re-advertised.

The Indian firm’s construction work is expected to last for slightly more than two years and will become East Africa’s second largest cement producer after Mombasa’s Bamburi Cement. Bamburi Cement controls the largest market share in the region.

The loss to Tororo Cement leaves the Ugandan cement manufacturer and local market controller with one opportunity to exploit Kenya’s resources since the factory is awaiting final a pronouncement of the firm that will win the bid to exploit limestone sediments at Eastern Kenya’s Mutumo District.
Pokot District where the limestone is located is one of the most underdeveloped areas in Kenya and the Sanghi Group has sought to upgrade the area’s road and railway network. ***image1***

Tororo Cement according to a Kenyan source had equally promised to rehabilitate the area’s infrastructure incase it worn the bid.
But Tororo Cement Factory Managing Director, Brij Gagrani in a contradictory statement told Daily Monitor on phone on June 19 that the cement manufacturer had not expressed interest in the cement sediments.