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Cement firm lauds 40% public sourcing threshold

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Savannah Cement MD Ronald Ndegwa (left) updating Kenya Bureau of Standards MD James Ongwae on its Hydraulic Road Binder product as Quality Assurance Manager Kennedy Kiilu looks on.

Savannah Cement has welcomed a presidential directive requiring public institutions source 40 per cent of their supplies from local manufacturers. The directive was issued as part of President Uhuru Kenyatta’s 52nd Madaraka Day national address yesterday.

President Uhuru Kenyatta said the government is pursuing policies that ensure growth in consumption of locally produced goods and services to secure opportunity and productivity.

Savannah Cement Managing Director Ronald Ndegwa described the move as the much needed lifeline for local manufacturers that will have positive ripple effect on the economy  as increased purchases will mean more jobs for Kenyans. 

“This is music to our ears as it has a capacity to accelerate the growth of local industries,” Mr Ndegwa said. “It is no secret that local industries have been suffering from skewed competition from imported products purchased by public institutions at the expense of local manufacturers.”

The directive will inspire product innovation and investments. Savannah Cement is investing more than $200 million (Ksh19 billion) in the installation of its second high efficiency milling plant to meet growing demand for its products.

The new milling plant to be installed at the firm’s manufacturing complex near Kitengela town features the latest cement manufacturing technology which allows for eco-friendly, dust and related emissions free cement production.

 

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