- Devki Group, a privately-owned conglomerate by billionaire industrialist Narendra Raval in Kenya, that has four cement firms in Kenya has been lobbying with the government to raise the import duty on clinker.
- It argued that the country has enough local capacity to meet its clinker needs.
- The Competition Authority of Kenya (CAK) has cautioned the government against implementing the proposal.
Devki Group, a privately owned conglomerate by billionaire industrialist Narendra Raval in Kenya, that has four cement firms in Kenya has been lobbying with the government to raise the import duty on clinker. The company mooted raising the import duty from 10 percent to 25 percent on clinker, a raw material used in cement production,. It argued that the country has enough local capacity to meet its clinker needs. The Competition Authority of Kenya (CAK) has cautioned the government against implementing the proposal.
The competition watchdog pointed out that Devki group has a near-monopoly on the means of manufacturing clinker and added that such a move can lead to unfair competition for rival plants and rising cement prices. Raval’s rivals — Bamburi Cement, Savannah and Rai had protested against the move. CAK pointed out that costlier imported clinker will make it easier for Raval to control cement prices through influencing rivals’ production costs, killing them by controlling supply of the critical raw material. In an advisory opinion to State House, the Treasury, the regulator maintained that it is necessary to maintain imports of clinker as it is cheaper and the window to import or produce it locally is essential to ensure healthy competition. The CAK’s analysis shows that the Devki entities control a combined 84 percent of limestone mining allocation.
Annual revenues of Devki group currently are more than $800 million (Sh88 billion), producing steel products, roofing sheets and cement among other items. The conglomerate has expanded its cement plants and now owns National Cement, Simba Cement, ARM Cement and Cemtech, expanding through its own resources and loans from banks and the International Finance Corporation (IFC). It spent more than Sh6 billion to acquire ARM Cement and Cemtech, expanding its sales market share and gaining access to more limestone mining rights. Mr. Raval recently announced that his company, National Cement, will be forced to almost 800 jobs because of weak demand due to the government’s failure to curb imports of the commodity.
