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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Kenyans applying for homes under the Affordable Housing Programme will now pay more following the government’s revision of housing prices across its affordable and market housing projects.

The State Department for Housing announced on Thursday, October 1, that the new prices would apply to new applications submitted from October 1, 2026.

Under the revised pricing structure, Affordable Housing units have increased by 20 per cent, while Market Housing units have risen by 10 per cent.

“The Affordable Housing Programme has revised house prices across the Affordable and Market housing typologies, effective October 1, 2026,” the State Department for Housing stated.

Two-Bedroom Units Rise By Ksh600,000

Under the Affordable Housing category, the price of a studio apartment has increased by Ksh300,000, rising from Ksh1.5 million to Ksh1.8 million.

A one-bedroom unit now costs Ksh2.4 million, up from Ksh2 million, representing a Ksh400,000 increase.

The price of a two-bedroom apartment has risen from Ksh3 million to Ksh3.6 million, an increase of Ksh600,000.

The revised prices apply to new applications across all projects from October 1.

Existing Applicants Protected From Increase

The Housing Department said applicants who had already applied under the previous pricing structure would continue paying the earlier prices.

This means the new prices will not affect existing applications submitted before October 1.

Boma Yangu had announced on September 15 that prices would be revised and encouraged Kenyans to apply under the existing pricing structure before the increase took effect.

Who Qualifies For Affordable Housing?

The Affordable Housing Programme categorises applicants according to their monthly income.

Social housing is reserved for Kenyans earning up to Ksh19,999 per month, while the affordable housing category targets those earning between Ksh20,000 and Ksh149,999.

Applicants earning above Ksh150,000 per month fall under the affordable middle-class category, with different housing options available depending on household needs and income.

How To Apply

Applicants can access the Boma Yangu platform through eCitizen by selecting the Boma Yangu option.

They can also register through the Boma Yangu website or use the USSD code *832#.

The revised prices take effect from October 1, 2026, meaning prospective applicants who had not submitted applications before the deadline will be subject to the new rates.

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Dangote Petroleum Refinery and Petrochemicals Chairman, Aliko Dangote, has reacted to a Kenyan court order stopping construction activities at the proposed $17 billion East African refinery project in Lamu County.

Dangote said the company was prepared to deal with the legal challenge and other disputes surrounding the project.

He spoke during a high-level investor engagement for the Dangote Refinery initial public offering (IPO) with East African institutional investors at the Nairobi Securities Exchange in Kenya.

Dangote Reacts to Court Order

The reaction followed an order by the Malindi Environment and Land Court after 133 residents of Chandavai, Lamu County, challenged the refinery project.

The residents opposed the development over alleged forced eviction and destruction of properties, while also claiming that the land designated for the refinery forms part of their ancestral heritage.

Reacting to the court action, Dangote described legal challenges as a familiar experience for major projects undertaken by his group across Africa.

“One court has given an order that we shouldn’t do any construction. I said, no, no, this is normal for us in Africa, we don’t care. In fact, this is even small,” Dangote said.

He cited a previous dispute involving the group’s operations in Senegal, where he said construction was stopped for about a year before the company pursued the matter through the Supreme Court.

“So anybody who wants to cause trouble, we are ready for them. We know who are the people doing all these things, so we’ll face them,” he added.

Dangote said the company was aware of developments surrounding the dispute and was prepared to address the issues.

What the Kenyan Court Ordered

The Malindi Environment and Land Court suspended construction activities at the proposed refinery site following the case filed by the 133 Chandavai residents.

The residents maintain that their families have occupied and farmed the disputed land for generations.

Further directions in the case are expected on October 14, following the order issued on September 25.

The court case remains before the Kenyan judiciary.

Dangote Says Groundbreaking Could Proceed

The Dangote Group had earlier said the court order would not, at that stage, stop the planned groundbreaking ceremony for the proposed refinery.

The company said the order required both parties to refrain from certain activities at the site pending the hearing of the case.

“The court has not halted the groundbreaking ceremony of the refinery at this stage,” the company said in an earlier statement.

The proposed refinery is designed to have a capacity of 700,000 barrels per day.

Kenya Prepares for September 30 Groundbreaking

The Kenyan government has been preparing for the September 30, 2026 groundbreaking ceremony for the East Africa Oil Refinery project in Lamu.

Kenyan Deputy President Kithure Kindiki said authorities were putting final arrangements in place for the event.

The ceremony is expected to attract government officials and other stakeholders from Kenya and the wider East African region.

The proposed refinery is expected to form part of a large-scale energy and industrial hub on Kenya’s coast, with potential implications for crude oil processing and related economic activities.

The ongoing court case has introduced a legal dispute into preparations for the project, while Dangote’s latest comments indicate that his group intends to continue engaging with the issues surrounding the development.

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Kenya Moves to Reserve Hawking and Small Retail Trade for Citizens

The Kenyan government has announced plans to begin shutting down small-scale businesses operated by foreign nationals from September 7, 2026.

President William Ruto issued the directive while addressing micro, small and medium-sized business operators at State House in Nairobi.

The planned enforcement is expected to focus on foreign nationals engaged in hawking and small retail businesses that the government believes should primarily provide livelihood opportunities for Kenyan citizens.

Ruto said Kenya would continue welcoming foreign investment but argued that foreign investors should concentrate on ventures capable of creating jobs, expanding local production and contributing more significantly to the economy.

The announcement has created uncertainty among foreign traders, including Nigerians operating businesses in Kenya.

However, the directive does not appear to impose a blanket closure on every foreign-owned company. Its immediate focus is small-scale and informal trading, although the government has yet to provide detailed guidance defining the businesses covered or explaining how valid permits will be treated.

Kenya currently issues Class G permits to foreigners intending to operate a specific trade, business, consultancy or profession. Applicants must demonstrate that their ventures will benefit the country and provide evidence of at least $100,000 in investment capital.

Nigerians operating small shops or hawking businesses could be affected if their activities fall within the targeted categories. Legally established businesses may also need clarification from Kenyan authorities on whether existing permits provide protection from the enforcement exercise.

The directive comes as Kenya’s Parliament considers the Local Content Bill 2025. Among its proposals, foreign companies would be required to employ Kenyan citizens as at least 80 per cent of their workforce and source a minimum of 60 per cent of specified goods and services locally.

The implementation of the crackdown will determine whether the policy protects local entrepreneurs without unfairly disrupting legitimate foreign-owned businesses.

Sources: Pulse Nigeria and Anadolu Agency.

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