Kenya Secures $254.4m Investor For Kitui Cement Factory After Dangote Exit

Taiwo
3 Min Read

Kenya has secured a new investor to establish a $254.4 million cement factory in Kitui County, with construction expected to begin in November 2026.

President William Ruto announced the investment during a media engagement in Mombasa on Thursday, October 1, saying he would visit Kitui next month to officially launch the project. Kenyan publication Kenyans.co.ke reported the planned investment at KSh33 billion. 

“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 identity of the new investor has not been disclosed.

Ruto Recalls Dangote’s Abandoned Kitui Plan

Ruto said the new factory could have been established years earlier, recalling that Nigerian industrialist Aliko Dangote previously sought to establish a cement plant in Kitui.

According to the Kenyan president, Dangote was frustrated by demands placed on investors under the previous administration and subsequently chose to invest in Tanzania.

“Dangote could have done the work seven years ago, but unfortunately he was frustrated so he chose to invest in Tanzania,” Ruto said. 

Ruto said his administration was working to create a more favourable environment for investors while ensuring that major investments generate employment and other economic opportunities for Kenyans.

He also cited demands for shares and bribes as among the issues that had discouraged major investors from establishing projects in Kenya. 

Dangote Cement Previously Planned Kenya Investment

Dangote had previously explored establishing cement operations in Kenya, with Dangote Cement Kenya Limited and Dangote Quarries Kenya Limited registered as part of the proposed expansion.

However, the latest development comes after Dangote Cement Chief Executive Officer Arvind Pathak said in September 2026 that Kenya was not included in the company’s medium-term plan for a new manufacturing plant, citing difficulties in securing suitable limestone reserves. 

Pathak said the company remained open to a Kenyan manufacturing operation if it could secure limestone reserves of sufficient size and quality close enough to the market.

New Kitui Plant Moves Into Construction Phase

Ruto said the new investor is already in place and is expected to visit Kitui in November for the groundbreaking ceremony.

The planned $254.4 million facility would mark a major new investment in Kenya’s cement industry if construction proceeds as announced.

The development also comes amid broader investment activity in Kenya’s cement sector, including projects aimed at expanding clinker and cement production. President Ruto has previously highlighted industrial investments in cement as part of Kenya’s wider manufacturing and infrastructure agenda. 

For now, the investor’s identity, detailed construction timeline and expected production capacity have not been publicly disclosed in the reports reviewed.

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