Cement usage at four-month low on projects freeze

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Market News

Monday Can also 17 2021

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A growth place in Nairobi. FILE PHOTO | NMG

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By KEVIN ROTICH

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Summary

  • Cement consumption slumped to a four-month low in February as traders either iced up or scaled down growth projects on the economic uncertainty induced by the Covid-19 pandemic.
  • Cement consumption has been declining since the closing quarter of 2020 on diminished bellow in the infrastructure and trusty estate sectors which comprise been scorched by complex economic prerequisites besides labour shortages.

Cement consumption slumped to a four-month low in February as traders either iced up or scaled down growth projects on the economic uncertainty induced by the Covid-19 pandemic.

Files by the Kenya Nationwide Bureau of Statistics (KNBS) shows that cement consumption stood at 606,547 tonnes in February—marking three successive months of slumps and the lowest level since October closing when 723, 124 tonnes of the commodity changed into once utilised.

Cement consumption has been declining since the closing quarter of 2020 on diminished bellow in the infrastructure and trusty estate sectors which comprise been scorched by complex economic prerequisites besides labour shortages.

Contemporary projects are additionally hampered by low demand for region of job areas as companies undertake working from dwelling formulation.

Central Bank of Kenta information shows that Kenyan households and companies comprise most ceaselessly taken to precautionary spending and thin investment alternatives in an atmosphere fraught with uncertainties.

Here is mirrored by the truth that companies and households stockpiled an additional Sh483.3 billion of savings over the Covid-19 pandemic period- the finest in over a decade.

The banking sector awful deposits closed in January at Sh4.03 trillion, translating to a 12 per cent bounce from Sh3.55 trillion in the same period closing one year.

Cement is closely intertwined with the constructed atmosphere that is tormented by a lag-sluggish in the growth sector.

Staunch and estate and infrastructure projects comprise remained wretched. As an illustration, the rate of constructing approvals in Nairobi fell Sh33.4 billion in the two months to February, as compared with the same period closing one year as traders iced up investments on economic uncertainty.

Files by the KNBS shows that the rate of approvals fell to Sh18.4 billion, representing a 35.5 per cent decline.

Realtor HassConsult’s quarterly land rate index additionally showed that prices in Riverside, Parklands, Loresho and Kileleshwa recorded drops in asking prices of 1.7 per cent, 0.9 per cent, 0.2 per cent and nil.6 p.c respectively.

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