Home » Kenyan tycoon Narendra Raval secures victory in billion-dollar cement industry lawsuit

Kenyan tycoon Narendra Raval secures victory in billion-dollar cement industry lawsuit

by Feyisayo Ajayi
Narendra Raval

In a landmark legal victory, Kenyan businessman and renowned industrialist Narendra Raval has emerged triumphant from a protracted legal battle against five major cement manufacturers, asserting his dominance in the billion-dollar industry.

Raval, who has a significant influence over the steel sector through his Devki Group, strategically capitalized on a government decision to raise excise duties on imported steel products. This move has further solidified his grip on the manufacturing landscape.

Cement manufacturers, including Rai Cement and the Kenya Association of Manufacturers (KAM), launched an unsuccessful petition against the Finance and National Planning Committee.

Their plea, spearheaded by Jaswant Rai, founder of Rai Cement, sought the removal of a clause that introduced a 10 percent export and investment promotion levy on imported clinker, steel, and paper products.

The petition argued that the imposition of this levy would lead to trade redirection, favoring Egypt, which currently exports duty-free clinker to Kenya.

Rai Cement warned that such a levy would force cement manufacturers to shut down, resulting in revenue loss for the government and widespread job losses. They further contended that the levy would adversely impact the government’s Affordable Housing Plan.

However, the Finance and National Planning Committee, dismissed these concerns, emphasizing the importance of supporting local manufacturing, boosting exports, and fostering job creation.

The committee’s decision reaffirmed the introduction of the export and investment promotion levy, reflecting a commitment to strengthen the value chain and facilitate county-level aggregation centers.

Narendra Raval, with the highest local clinker production capacity, emerges as one of the primary beneficiaries of this policy. Clinker, a crucial ingredient in cement production, positions him at the forefront of the industry.

Earlier this month, Narendra Raval’s cement company, Simba Cement, majority-owned by the Devki Group, secured a lucrative long-term contract worth Ksh27.7 billion ($200 million) annually.

The agreement, which involves the export of clinker, a key component in cement production, to neighboring countries, solidifies Simba Cement’s position as a dominant player in the East African market.

Under the visionary leadership of Narendra Raval, Simba Cement has been proactively pursuing strategic growth initiatives, including the establishment of a cutting-edge cement processing plant in Eldoret. This facility will enhance production capacity and cater to the growing demand in the region.

The state-of-the-art processing plant, strategically located in Eldoret, will serve as a vital hub for Simba Cement’s regional ambitions. With its proximity to Rwanda, Uganda, and Burundi, the company aims to tap into these promising markets by reducing transportation costs.

By leveraging this new facility, Simba Cement endeavors to deliver affordable cement to consumers in these countries, fostering economic growth and development.

You may also like


The world’s premier source of news on Africa’s billionaires and UHNWIs.


Get the daily email to stay informed about African billionaires and UHNWIs. Get informed and entertained, for free.

Latest News

@2024 – Billionaires.Africa. All Rights Reserved.