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:
Savannah Cement is eyeing a portion of the lucrative infrastructure contracts with the planned launch of a special cement used for stabilisation of soils during road construction. The cement is technically known as Hydraulic Road Binder (HRB).

Our View: With the directive of 40% local content on all government procurements, Savannah Cement stands to benefit from the outlined infrastructural projects including the 10,000KM road construction by 2017. The local road contractors currently import HRB which is surmised to add up to 30% more costs. This latest development might see the company grow its market share in the market which is currently dominated by Bamburi Cement with c.36% market share.
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