Kenya Bitumen
Kenya bitumen has a high rate of demand in the world. However, Kenya’s demand for petrochemical
products is about to increase with recent budget allocations for the construction of new roads, ports
and airports and maintenance of the existing transport base.
Generally speaking, the country’s economic growth rose from 5.3% in 2014 to 5.5% in 2015.
It also hit 6% and 6.4% in 2016 and 2017 sequentially according to the African Development Bank,
triggering demand for a better and modern foundation especially in transportation. As a matter of fact,
road construction, reconstruction, and maintenance consume the highest share of bitumen application in Kenya.
There is an emerging trend for the application of Kenya bitumen pen grades such as 40/50.
Although no figures are now available on the latest annual Kenya bitumen consumption,
it is predicted that East Africa consumes
an average of 100,000tonnes yearly.
Construction or augmentation of highways in Kenya will also increase demand for bitumen according to
the director of the public-private partnership (PPPs) at the National Treasury.
He said the three-phase 485km Nairobi-Mombasa road is ready for acquisition
while the 184km Nairobi-Nakuru-Mau Summit road
has been moved to acquisition phase Both will be extended under a PPP.
Inventing new vertical connections directly with
the investor will allow them to make informed arrangements for
the quality and security of the product and drive the industry forward.
African bitumen
industry can only develop if it taps into the development finance organizations which significantly improve
the bankability of paving projects and raise the flow of private funding into the foundation. Kenya,
the same as the rest of East Africa, relies on countries such as Iran, India, Kuwait, Saudi Arabia, and
the United Arab Emirates to meet regional demand for Kenya bitumen.
With the suspension of East Africa’s biggest refinery, africa will continue to rely on bitumen imports to satisfy its demands.
It’s good to know that additional demand
for bitumen is expected from the continuous reconstruction of several terminals.
Members of the Congress in Nairobi asked the East African governments to ensure taxes are not limiting because
high taxation raises the price of Kenya bitumen and could collapse the cost of the projects.
Kenya’s investment opportunities in the bitumen industry include leasing, hiring of bitumen
processing and discharge facilities, the supply of environmentally tolerable emulsion grades, and also the
establishment of bonded storage resources mainly at the port of Mombasa.