The Kenya Government has signed a MoU with Chinese based Giant Steel Company Sinosteel to develop a steel plant in Kenya. Speaking during the signing ceremony in Beijing, China, Adan Mohamed, the Cabinet Secretary for Industrialization and Enterprise Development expressed confidence that Sinosteel’s experience in the steel sector will bring in the desired outcome for the Project.
Mr.Wang Jian, the Managing Director of Sinosteel expressed optimism on the signing and noted that increasing regional demand for steel products in light of the growing infrastructure and real estate development is making it significant timing for Kenya in prioritizing the steel mill project.
“Kenya had a demand of about 1.8 million metric tonnes of steel annually as at the end of the year 2013 and this demand is forecast to grow to about 2.5million metric tonnes by year 2020 and double that number by year 2030. The ongoing real estate boom, standard gauge railway project construction, Lappset corridor and the 10,000km new road network project provides an excellent off-take for steel and steel products. The regional demand magnify this further with expected investment in regional infrastructure projects running into billions of dollars in the next 3-5 years”, noted Mr.Mohamed.
Besides, investment in a steel plant in Kenya will significantly improve our trade balance and foreign reserve position given the significant consumption of resources in import of steel products.
Exploration of Iron ore and coal deposits (critical raw materials for steel production)are already at a progressive stage by experts through the relevant bodies in Government, and Sinosteel’s expertise in the sector is expected to fast-track its implementation.