Bamburi Cement has posted a decline i its half year profit. The cement maker recorded a 6 per cent decline to a net profit of Sh. 2.9 billion.
This fall was attributed to lower cement demand from the housing construction sector and regional export market.
Bamburi saw its turnover fall from Sh.19.3 billion in the 2015 comparable period to Sh.19.1 billion this year.
“This decrease (in turnover), felt in the first quarter of 2016, was due to slowed construction activity, mainly in the individual home builder segment in Kenya, which was affected by the higher level of interest rates experienced in the last half of 2015, together with the slight reduction in exports to inland African markets,” said Bamburi in a statement.
Its cash holdings stands at Sh.10.5 billion compared to Sh.11.4 billion at the same period last year.
Bamburi expects to undertake major capital expenditure in coming months after its board approved the first phase of a capacity expansion project in Kenya and Uganda which, at a cost of Sh8.3 billion, will see the firm increase its production capacity by 1.7 million tonnes.