This research report was prepared by the Research Department of Old Mutual Securities Limited. Old Mutual Securities Limited is a securities trading company licensed by the Capital Markets Authority (Kenya) for the purpose of facilitating trade on the Nairobi Securities Exchange.

Here are our views on the news making headlines today for Kenya:
ARM Cement has joined the list of manufacturers producing high grade cement that is suitable for heavy duty construction works such as bridges, skyscraper foundations, pre-cast slabs and beams and railway sleepers. This is after it was issued with a Kenya Bureau of Standards certificate to produce the cement late last year. The cement is given a rating 52.5 megapascal (MPa) as per the industry grading.

Our View: This will boost the company revenues especially with the ongoing infrastructural development in the region. The Kenyan government has outlined mega projects including roads, ports, railways and airports construction and upgrades, some of which lie within the LAPSSET corridor. The ongoing standard gauge railway project is expected to consume approx. 750,000 tons of cement with up to 60% sourced locally following the government’s directive which has seen Kenyan cement firms upgrade their production capacity to benefit from these mega State- funded projects. 

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