Kenya lines up new investor for KSh33B Kitui cement factory

President William Ruto has announced a new investor for a planned KSh33B cement factory in Kitui County, reviving a major industrial project after an earlier Dangote proposal was abandoned.

The planned factory would add cement production capacity in eastern Kenya and could create jobs while increasing the supply of locally made building materials. The announcement was reported by Kenyans.co.ke on 4 October 2026.

What the plant could change

Cement is a basic input for housing, roads and commercial construction, so a large new plant would affect more than the company behind it. More local production could give builders another source of supply and reduce pressure on the country's existing cement plants if the project is completed.

The Kitui proposal also matters because it has been discussed as a major industrial investment for the county. Its revival puts the project back into focus after an earlier proposal linked to Dangote Industries was abandoned.

What is confirmed

The project is valued at KSh33B and is intended for Kitui County. Ruto announced that Kenya had secured a new investor for the factory, according to Kenyans.co.ke, which reported the announcement and the project's estimated value.

The latest announcement does not establish the new investor's full project timetable, financing structure, construction start date or expected production volume. Those details will be important in judging how quickly the project can move from an announcement to an operating plant.

For Kenya, the value of the project is not only the headline investment. A functioning plant would need construction contractors, transport services, equipment suppliers and workers, creating activity around the factory as it is built and operated.

What Kitui needs to see next

The next test is whether the announced investment advances into a formal project with disclosed ownership, financing, approvals, construction dates and production targets.

The project would also need to fit into Kenya's wider cement market, where existing producers already compete for construction demand. The new plant's eventual capacity, location and pricing would help determine how much it changes that competition.

For Kitui, the immediate significance is that a stalled industrial ambition has been revived. For the national economy, the larger question is whether the KSh33B plan turns into actual construction, jobs and cement output rather than remaining an investment announcement.

Related Mwenendo coverage provides wider context on Kenya's business and industrial economy.