Cash Management And Profitability Of Cement Industries In Kenya

Kenya’s building and construction sector is amongst the most rapidly growing, experiencing an average growth rate of 14.2% for the period 2006 – 2011. Over the same period, Kenya’s economic growth, as measured by the real Gross Domestic Product rate (GDP) averaged only 4.3% declining to 4.38% in 2011 from 6.33% in 2006. Currently, the industry has six manufacturers namely; East African Portland Cement Company, Bamburi Cement Ltd, Athi River Mining, Cemtech, National Cement and Pandlu Cement. According to the Central Bank’s Monthly Economic Review for 2012, cement consumption increased at an average rate of 14.1% for the period 2006 – 2011, with consumption reaching 3.43 million tonnes (mT) in 2011, up from 1.57mT in 2006.