In a strategic move to bolster its cement operations, Devki Group, a prominent steel manufacturing corporation led by Kenyan multimillionaire industrialist Narendra Raval, has secured a substantial credit facility worth Ksh4.3 billion ($32.7 million) from Stanbic Bank Kenya. The financing aims to enhance the capacity and reach of National Cement, a subsidiary of Devki Group, particularly in the East African region.
Stanbic Bank Kenya expressed confidence in the pivotal role of National Cement in fostering economic growth across East Africa. In a statement, the bank highlighted the importance of the credit facility in enabling National Cement to sustain its delivery of high-quality construction materials at competitive prices, thereby furthering economic and infrastructure development initiatives in the region.
Devki shakes up banking ties amid expansion push
The news of this substantial credit facility coincides with Narendra Raval’s decision to shift a significant portion of Devki Group’s business accounts to Stanbic Bank Kenya. This strategic realignment sees Devki Group, a long-standing client of KCB Group, entrusting a substantial portion of its financial operations to Stanbic Bank Kenya, under the leadership of Kenyan banking executive Joshua Oigara.
Raval affirmed that the decision was driven by factors such as favorable rates and superior customer service offered by Stanbic Bank Kenya. “We still bank with KCB where we have been a client for more than 40 years,” Raval stated, emphasizing the complementary nature of the banking arrangements.
Devki Group’s expansion trajectory
Founded in 1986 as a modest steel-processing and trade enterprise in Nairobi, Devki Group has evolved into the leading manufacturer of building materials and steel products in East and Central Africa. With an estimated net worth of $400 million in 2015, Raval continues to steer the privately held conglomerate, maintaining majority control over its operations.
The recent shift in banking partnerships follows Devki Group’s ambitious expansion endeavors, including the inauguration of a large-scale clinker factory named Cemtech Limited in West Pokot County. This state-of-the-art facility, boasting an annual clinker production capacity of 6 million metric tonnes, is poised to revolutionize the regional cement industry.
Job creation and economic impact
Cemtech’s launch is expected to generate hundreds of new jobs, adding to Devki Group’s existing workforce of over 11,000 Kenyans. The group’s expansion extends beyond Kenya, with significant investments earmarked for Uganda and Rwanda. By 2027-28, Devki Group aims to provide direct employment to approximately 25,000 Kenyans, reinforcing its commitment to sustainable economic development in the region.
Devki Group remains at the forefront of East Africa’s industrial landscape with a steadfast focus on innovation, efficiency, and sustainability. The group’s recent acquisition of a $32.7-million credit facility underscores its determination to drive growth, foster prosperity, and solidify its position as a catalyst for transformative change in the construction sector.
