President William Ruto has announced that the government has secured a new investor to build a Ksh33 billion cement factory in Kitui County.
Ruto said the investor was already in place and that he plans to travel to Kitui in November to launch construction of the factory.
The President made the announcement during a media engagement in Mombasa on Thursday night, October 1, where he spoke about the government’s efforts to attract large-scale investments into the country.
“The investor is already around, and I will be soon visiting Kitui, probably next month, to break ground for the factory, which will cost Ksh33 billion,” Ruto said.
The planned factory comes years after Nigerian billionaire Aliko Dangote abandoned plans to establish a cement plant in Kitui.
Dangote project stalled
Ruto recalled that Dangote had previously approached the Kenyan government with plans to set up a multi-billion-shilling cement processing plant in Kitui.
According to the President, the project could have been completed several years ago but did not proceed after the investor encountered challenges.
Ruto said that while serving as Deputy President, he took Dangote to State House to meet former President Uhuru Kenyatta over the proposed investment.
“Dangote could have done the work seven years ago, but unfortunately he was frustrated so he chose to invest in Tanzania,” Ruto said.
The President said the experience had informed his administration’s approach to dealing with investors, with the government seeking to reduce unnecessary demands while ensuring local communities benefit from major projects.
He said Kenya had for years struggled to attract large investments because of the conditions and demands placed on potential investors.
Ruto cited demands for shares and bribes among the issues that had discouraged investors from setting up major projects in the country.
Government promises investor-friendly environment
Ruto said his administration was working to create a business environment that would make it easier for investors to establish large-scale projects.
He said the government also wanted to ensure that such investments translate into employment and other economic opportunities for Kenyans.
The President linked the Kitui cement project to the wider push to attract major private-sector investments into the country.
He also defended the planned Ksh2 trillion East African oil refinery in Lamu, saying residents would not be evicted to make way for the project.
Ruto said the land earmarked for the refinery was government-owned and that any claims raised by residents would be handled by the government rather than the investor.
The President did not disclose the identity of the new investor for the Kitui cement factory during the media engagement.