April/May 2003

Regional Briefs
Bamburi urges government to use cement on roads

East Africa’s leading cement manufacturer has appealed to the Kenyan government to promote the construction of concrete roads in its new infrastructural rehabilitation programme as a strategy to build durable, safer and affordable roads in the long term.

Bamburi Cement Managing Director, Didier Tresarrieu says, “I wish to call upon our government to promote an East African Community based approach to all its economic, business and trade plans as a strategy to enhance business opportunities in an expanded regional market”.

Tresarrieu was speaking during the release of the company’s 2002 trading results. Bamburi posted a 13 per cent growth in its sales revenue for the year ended December 31, 2002.

Bamburi Cement Group Chairman, Richard Kemoli attributes the growth to increased demand in Kenya and Uganda, improved market share as well as better revenue realization in both countries. He said the improved market share reflected the company’s commercial leadership and sales distribution focus.

Profit before tax increased by 55 percent, resulting from the higher sales and cost control in both countries. Kemoli says that profit before tax in the Kenyan operation rose by 60 percent due to the positive effect of higher sales, lower variable and other operating costs arising from the benefits of investments carried out over the past five years and the lower electricity cost in 2002. financing costs decreased by 68 percent thus enabling the group to pay its debts in both countries.

Earnings per share grew by 68 percent to Ksh3.38 from Ksh2.01 the previous year. The chairman also announced a payment of the final dividend of 10 percent per ordinary share of Ksh five. This he said would bring the total dividend for the year to 70 percent – a market improvement from 22.5 percent in 2001.

The Bamburi group comprises of three subsidiaries; Hima Cement Limited of Uganda, Nairobi-based Bamburi Special Products that specializes in manufacture of concrete paving blocks and other cement product innovations and Mombasa based Baobab Farm Limited which is the rehabilitation arm of Bamburi Cement. Baobab Farm ensures that Bamburi’s commitment to protection, rehabilitation and beautification of the environment is carried out.

Being part of Lafarge, the world’s largest building material company, Bamburi is involved in the development of low-cost housing solutions with other stakeholders.

Managing Director of Hima Cement, Mbuvi Nguze (left) and Bamburi Cement counterpart, Didier Tresarrieu (center) listen to Bamburi Group Chairman, Richard Kemoli announcing the trading results for the financial year 2002.