Kenya Secures New Investor for $254.4m Kitui Cement Factory After Dangote Exit
By Aboki Forex —
Kenya has found a new investor to build a $254.4 million cement factory in Kitui County, with construction expected to start in November 2026. President William Ruto announced the deal during a media engagement in Mombasa on Thursday, October 1.
The investor has not been named. Ruto said the investor is already in the country and that he plans to visit Kitui, possibly next month, to break ground.
Ruto Confirms New Investor
"The investor is already around, and I will be soon visiting Kitui, probably next month, to break ground for the factory, which will cost $254.4 million," Ruto said.
He said the November groundbreaking will move the project beyond the planning stage and mark the start of actual construction.
Why Dangote Left Kenya for Tanzania
Ruto said the plant could have been built seven years ago, when Aliko Dangote first moved to set up a cement factory in Kitui. He said the Nigerian billionaire was frustrated by demands placed on investors and chose to invest in Tanzania instead.
"Dangote could have done the work seven years ago, but unfortunately he was frustrated so he chose to invest in Tanzania," Ruto said.
The president said his administration is working to avoid similar problems by creating a friendlier environment for investors. He said demands for shares and bribes had previously scared off major investments. Jobs and other economic opportunities for Kenyans are part of the plan, he added.
Dangote's Cement Push Across Africa
Dangote's decision to skip Kitui did not slow his cement expansion elsewhere. In December 2017, Dangote Cement planned to launch a plant in Kenya by 2020. Dangote Cement Kenya Limited and Dangote Quarries Kenya Limited had already been registered, with Dangote Cement holding 90% of the shares and domestic investors holding 10%.
The Kenya plan was part of a wider East African push. In 2015, Dangote unveiled two 3 million tonne per annum plants for Kenya alongside projects in Ethiopia, Zambia, Senegal, Niger, Mali, Cameroon, Côte d'Ivoire and Ghana. In Tanzania, Dangote Cement launched operations in 2016 and by October that year controlled 22% of the market after using lower prices to win share.
On the Nigerian side, Dangote Industries signed a Memorandum of Understanding worth more than $800 million with Sinoma International Engineering on August 4, 2026 to expand its Itori plant in Ogun State. The expansion will double annual capacity from six million to 12 million metric tonnes. It also covers an upgrade of the Lagos export terminal to serve West and Central African markets.
The Nigerian expansion means more cement from Itori and a bigger Lagos export terminal, which could support supply into West and Central Africa. The Kitui project, meanwhile, is a fresh start for Kenya after Dangote's exit.