Kenya secures new investor for $254.4 million Kitui cement factory, after Dangote’s exit

Kenya has successfully attracted a new investor to construct a $254.4 million cement factory in Kitui County, with construction set to commence in November 2026. This development follows President William Ruto's engagement in Mombasa on October 1, as reported by Kenyans.co.ke. Ruto made the announcement seven years after Nigerian entrepreneur Aliko Dangote initially attempted to establish the factory, but was deterred by previous administrations' demands, prompting him to relocate the investment to Tanzania instead.

According to Ruto, the new investor plans to visit Kitui in November to officially break ground for the factory, marking the beginning of construction and advancing the project beyond the planning stage. Ruto explained that the factory could have been established earlier, but Dangote ultimately opted to invest in Tanzania due to frustrations with demands placed on investors.

Ruto's administration is working to create a more investor-friendly environment while ensuring Kenyans benefit from job creation and other economic opportunities.

The announcement comes in the wake of Nigerian billionaire Aliko Dangote breaking ground on a major expansion of his refinery project in Nigeria, demonstrating his continued investment in large-scale industrial projects across Africa. By October 2016, Dangote Cement had established a 22% share in Tanzania's cement market, thanks to its competitive pricing strategy.

In the preceding two years, Dangote had also opened factories in Cameroon, Ethiopia, Senegal, South Africa, Tanzania, and Zambia, expanding its production footprint across the continent.

The recent developments in both Kenya and Nigeria highlight the ongoing expansion of cement production in Africa, with Dangote Cement playing a significant role in the industry. The Kenyan case, however, involves a new investor for the proposed Kitui factory, as opposed to Dangote's existing operations in Nigeria.