Has Dangote abandoned plan to build Sh34b cement plant in Kitui?

From left: Kitui County Executive for Energy and Minerals George Mulatya, Governor Julius Malombe and Ado Dangote of Dangote Quarries Ltd, which plans to set up a Sh34.8 billion cement factory in Kitui. [PHOTO: PHILIP MUASYA / STANDARD]

A firm owned by Nigerian tycoon Aliko Dangote has abruptly stopped prospecting for limestone in Kanziku area, Kitui County. The move by Dangote Quarries Ltd has dampened the mood of the locals who fear the multinational might have halted plans to put up a multi-billion shilling cement plant.

Locals expected to reap big from the cement factory. “Akili Minerals Services Ltd, the firm contracted by Dangote Quarries to carry out the exploration pulled out from the area and withdrew their equipment three weeks ago,” said one resident.

The firm had been prospecting for limestone for over a year although they were yet to establish its commercial viability. The reports emerge at a time when Africa’s richest person is set to unveil East Africa’s biggest cement factory in Ethiopia at a cost of $500 million (Sh46.5 billion).

The factory has the capacity to produce 2.5 million tonnes of cement. According to reports, Dangote carefully followed the progress of the Ethiopian plant construction, flying his personal jet to Addis Ababa every fortnight. In Tanzania, Dangote Cement is building a $500 million, 3 million tons-per-year plant in Tanzania to start up by the end of the year. Dangote has cement plants in Senegal, Zambia, South Africa, Congo Brazzaville, and Cameroon. He also has cement terminals in Ghana, Sierra Leone, Ivory Coast and Liberia.

Dangote had promised to put up a Sh34.8 billion cement plant in Kitui to rival that of Athi River Mining Company Ltd estimated to be worth Sh26 billion set for Ngaaie area in Kyuso district. Of key concern to the residents is failure by the firm to honour its promise of compensating individual farmers Sh30,000 disturbance fee, in areas where the company was drilling wells for prospecting.

The agreement was reached between representatives of Dangote Quarries led by Ado Dangote, young brother to Aliko Dangote and the community’s Ene Mali (wealth owners) committee. A resident of Kanziku Chrispus Mutinda said the community is worried by the sudden pull out and the failure to compensate them. “They have left us high and dry. We can’t understand why they failed to pay Sh30,000 as agreed. We don’t know their plans,” Mutinda said.

Key link

Vincent Mutambuki, who chairs the Kanziku/Simisi liaison committee, an entity recognised by the county government said so far, they have not had any meaningful engagement with Dangote firm. The committee acts as a link between the community and the investor. “We only met them once at the governor’s office and we have not heard from them since. We have not had any formal sitting with them,” said Mutambuki. The 15 members of this committee feel that Dangote Quarries ‘sneaked into Kanziku’ and has been dealing with an amorphous entity (Ene Mali) which should not be the case.

County Executive in Charge of Environment, Energy and Minerals Investment Development George Mulatya however said he was not aware if the company had pulled out, adding that the investor had requested for more time to re-organise themselves. “All I know is they had asked we give them more time to put a few things in order,” noted Mulatya.

A member of the Ene Mali team Wilfred Mutuva asked Dangote Quarries to pay the disturbance allowance as agreed before it can be allowed to carry out any more works in the area. He revealed that his team was wooing other investors such as Savanna Cement and National Cement to invest in the vast limestone deposits of Kanziku.

A linkman between Dangote Quarries Ltd and the Kanziku community John Nzuki says the investor has no plans of pulling out,  noting that the firm is only reorganising itself because the investment is of high magnitude.

Nzuki who played a pivotal role in introducing Dangote firm to the Kanziku community said the anxiety was as a result of the completion of the first phase of prospecting, adding that the firm will be resuming for the second and final phase of exploration in three weeks.

Nzuki acknowledged delays in paying the farmers’ disturbance allowance, but clarified that the firm will pay all the dues in the second week of May. “Everything has been put in place and the affected farmers will get their allowances in two weeks cumulatively, it is not a small amount,” he said.

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