Bitumen price in Kenya

Bitumen price in Kenya

We have decided to discuss the bitumen price in Kenya since Kenya is one of the important industrial hubs of the world. As a matter of fact, the bitumen price in many countries is one of the important factors in determining the economic situation and deals.

Not to mention that Kenya is a developing country that imports about 160,000-180,000 Tons of bitumen annually.

Bitumen price in Kenya is notable since Kenya has many construction projects using bitumen and other petrochemical products.

Furthermore, bitumen grade 80/100, bitumen grade 60/70, and bitumen emulsions

have more function in Kenya’s road paving’s and constructions.

About 99% of the bitumen loadings, either bulk or drum, are operated in the Mombasa port.

Kenya’s imports instructions

What are the bitumen imports to Kenya procedures?

Kenya bitumen imports have a predetermined procedure. The bitumen imports

should have PVoC & GIS standards, otherwise the procedure will be suspended.

PVoC (Pre-Export Verification of Conformity to Standards) and

GIS (Government and Institution Service) are both the essential

standards of the Kenya government and every product that is importing to the country,

must have these certificates. Moreover, the bitumen drums should have a specific marking, otherwise they are not allowed to enter Kenya.

Why bitumen price in Kenya is critical?

To clarify, Kenya is one of the canals through which exporting bitumen to central Africa and Uganda is possible.

That’s why Kenya is an important country, referring to as a large port of importing and exporting petrochemical products.

Bitumen price in Kenya has about a 20% tax and governmental costs.

A large volume of bitumen grades and bitumen emulsions consumption is devoted to

the Chinese companies in Kenya who are running road paving and construction projects.

These Chinese companies follow the ASTDM standards or the American standards for the bitumen.

The petrochemical materials that are being used in Kenya are usually bitumen

PEN grades and cutback emulsions such as MC 30, MC 70, MC 250, and MC 800.

Bitumen price in Kenya differs for each type and grade of bitumen. Certainly, Cutbacks prices is

different from the PEN grades bitumen prices. Besides, the applications of each grade of bitumen differ.

What types of bitumen have higher demands in Kenya?

PEN grades and cutback bitumen grades are more suitable for paving’s and road constructions. In Kenya,

Mombasa or Nairobi, two main road paving companies are active and operating the projects predominantly.

More than 50 companies are also active in this field in other parts of Kenya.

Additionally, more than 50 importers of bitumen are also participating.

Kenya’s pricing strategy

How the bitumen importers to Kenya affect the bitumen price?

Kenya importers are paid

by the Kenya government.

Unless they want the global bank to interfere. Sometimes,

the constructions take a long time. In these cases, the global bank pays the importers.

Bitumen grades, whether Mc grades or pen grades, have different packings.

The packings can be

Jey embossed drums,

Pasargad embossed drums, or private cargo.

The bitumen price in Kenya varies due to the packings of the product.

In this website, we have brought the prices of each of these packings completely.

The most important Items affecting the petrochemical products’ prices

Bitumen prices also changes due to the season, project type, government budget, and market demand.

Besides, the shipping costs to the Mombasa port is changeable according to the season.

So, the bitumen prices is not a fixed price.

It is predicted that

Kenya’s demand for

bitumen products is likely to increase with enough budget allocations for the construction of new roads, ports, and airports and maintenance of existing transportation foundations. According to the charts and analysis of the recent years, the country’s economic growth happened from 5.3% in 2014 to 5.5% in 2015.

To explain, construction or development of highways in Kenya will also increase demand for bitumen and affect the bitumen price in Kenya. The participation of construction business partners will also boost the bitumen market growth. Extra demands for bitumen and MC grades are probable from the continuous repair of several terminals.

However, there are some challenging matters in the field of construction and imports,

since petrochemical business is not that much easy and predictable.

For instance, some participants at the Congress in Nairobi usually ask the East African governments to guarantee that the taxes are not limiting because high taxation increases the bitumen prices and could collapse the costs.

Kenya’s recent price archives

 bitumen price analysis in the recent years

Kenya’s financing chances in the bitumen trade include leasing and hiring of bitumen processing

and discharge equipment, supply of environmentally tolerable cutbacks at the port of Mombasa.

According to the projects and analysis, bitumen application in 2018 was over 35,000 metric

tons due to the government’s conclusion on raising budgetary allocation to road construction activities.

To be more specific, in the 2018-2019 budget, National Treasury Secretary raised the budgetary

allocation for the Ministry of Roads from 134.9 billion to 271.6 billion for construction and maintenance

of major roads in the country. This was beneficial, considering that intensified civil operations led to a notable

increase in the length of bitumen road, from 14.5 thousand kilometers in 2016 to 20.6 thousand kilometers in 2017.

As mentioned above, Kenya is one of the most important countries

that notably affect the demands, import volumes, and prices of the bitumen and other petrochemical products.

As the constructions are high in this country, the imports are high as well.

In fact, this country has a prominent role in the bitumen global market.