Kenya takes 40% of SGR fund

25 November 2014

NAIROBI, Kenya – Local firms are angling for opportunities set aside for Kenyan companies as Chinese contractor China Road and Bridge Corporation (CRBC) embarks on the construction of the Standard Gauge Railway (SGR).

The preferential treatment of local suppliers is expected to ensure local firms benefit from the project. Large quantity of the materials required for the railway construction, is expected to be sourced locally. This will not only boost local industry but provide employment for Kenyans.

An estimated 30,000 Kenyans of various technical capabilities will be recruited to work on the railway project.

Among the firms that have already inked a deal with the Chinese contractor are major cement manufacturers. The firms are looking at supplying a huge proportion of cement that will be used in putting up the modern railway between Nairobi and Mombasa.

“We have so far signed deals with local cement companies such as Bamburi Cement and Athi River Mining Cement. We are also negotiating the cement supply contract with Savannah Cement, East African Portland Cement as well as other cement manufacturers,” said He Yongjian, Procurement Manager of Nairobi-Mombasa SGR project.

“With the commencement of the project, these suppliers will provide cement to our campsites from time to time,” Yongjian said.

Bipin Bhatia, commercial director ARM Cement said: “Getting involved in the SGR project is a matter of great pride for our company. There is more than enough capacity, both in terms of quality and quantity for production of all cement that may be required during the construction of the railway.”

He added that cement manufacturers expect this to significantly boost their revenues as well as increase the per capita consumption of cement in the country.

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