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Kenya: Nema Ups Heat On Cement Firm By Proposing New Site
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Business Daily (Nairobi)
11 May 2008
Posted to the web 12 May 2008
Jim Onyango
Nairobi
The controversy surrounding plans to construct a Sh536 million cement factory in Athi River has deepened, with environment regulators saying the firm should seek an alternative site. The company owners, however, insist the project is still on.
Residents of Kitengela are opposing the construction of Catic Cement plant, which is owned by Chinese investors. They argue that it will make the residential area inhabitable, with concerns ranging from dust and noise, to sharing of scarce resources in the area like water.
National Environment Management Authority (Nema) said it has directed Catic Cement Company to look for alternative land to construct the factory. However, the company's representative in Kenya, Kang Tong, said he had not received any communication from Nema.
"We have not had any contacts. I don't know what you are saying," said Mr Tong.
"The company board is meeting in China next week. They have not advised me what to do. So no decision has been finalised, " he said.
However according to Nema officials they had received a letter from Catic Cement pleading for time to look for an alternative site.
"Catic Cement Company has confirmed to Nema that it will relocate the proposed cement factory to a more suitable site. Catic cement is currently negotiating a long-lease agreement with a local company on the land adjacent to East African Portland Cement Company.
Nema says after consulting the relevant lead agencies and stakeholders, and having held two public hearings over the last two months, it recommended that the new site be located in the industrial zone away from the commercial and residential areas.
The environment body says that if constructed in Athi River, the adjacent pharmaceutical and food factories at the export processing zones will be affected by emissions from the proposed cement plant.
The proposed plant targets to produce 50 tonnes of cement per hour.
Its entry to the market is expected to generate a fresh round of turf wars in the cement industry. Already Bamburi, East African Portland Cement Company and Athi River Mining have built strongholds in the country.
Its importation of clinker from China is likely to give it a leverage in the market, setting off price wars with the established cement makers. Bamburi Cement has a 51 per cent share in the regional market.
It runs a subsidiary in Uganda, Hima, through which it plans to make a foray into the fast growing Sudanese market. The remaining 49 per cent pie is shared between East African Portland Cement and Athi River Mining, both in Kenya, as well as Tanga Cement of Tanzania.
Catic representative in Nairobi said the company would start construction once a board meeting in China has authorised it to.
"The residents are not opposing the construction of the cement factory, they are supporting the project but they don't want it near their homes," said Mr Tong.
Nema's rejection of Catic's plans to set up in Athi River comes against the background of regulations being prepared by the environment watchdog that would control gas emissions from factories.
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The regulation will set limit on the amount of emissions by manufacturers. Industries that will breach the limit will be liable to a Sh1.5 million fine.
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