Quantities of Principal Domestic Exports - Cement (2012-2016)

Post Date: 04 September 2017   |   Category: Competition   |   Hits: 880

Currently, it has been tough for Kenyan cement manufacturers as cheaper imports from Asia continue to slow down their exports mainly to the East African region, reports have shown (Lugaria, 2017).  Reports further state that, although the drop is largely attributed to encroachment in strategic market segments by Asian products, local factors like taxation, new competing industries in export markets and instability in South Sudan have contributed to the slowdown of exports. This week’s number looks at the quantity of cement exports in Kenya for a period of five years. 

Source: Economic Survey, 2017
Chart 1 above, retrieved from the Economic Survey shows the quantities of cement exports from 2012 to 2016. The chart portrays a general decrease in the quantity of Kenya’s cement exports. It is evident that, in all the years under review, 2013 is the only year that records an increase of 89,445 tons; this represents a 12.13 percentage point increase. The highest decrease in cement exports is recorded between 2015 and 2016. There was a decrease of 261,508 tons; this represents a 38.4 percentage point decrease. 
According to a policy brief by the Institute of Economic Affairs on the ‘Housing Policy as an Agenda for Elections 2017’ Click here; based on the average incomes of Kshs. 13,140 per month, the calculation reveals that it would take 1.5 days of income for a worker to purchase one 50kg bag of cement at 2016 prices. This demonstrates that, the cost of cement in Kenya is relatively higher compared to its competitors.
• 38.4 represents the percentage point decrease in cement exports in 2016
• Of all the years under review, 2016 records the highest decrease of 261,508 tons. This suggests that the situation with Kenya’s cement exports is deteriorating
• 2013 is the only year that records an increase in exports throughout the years under review
• There was an increase of 89,445 tons in 2013 (12.13%)
• The reason for expensive cement is on account of industrial policy and the protection of cement firms that are partly owned by government 
• 2015 records a decrease of 38,800 tons; this represents a 5.4 percentage point decrease
Lugaria, P. (2017, May 18). Business Review. Retrieved from http://www.constructionkenya.com: http://www.constructionkenya.com/4475/kenya-cement-exports/