Bamburi Cement upbeat of industry’s growth on repeal of rate caps

Cement maker, Bamburi cement in betting big on the removal of a cap on commercial lending rates to boost the industry’s dwindling fortunes, its Chief executive has said.

Bamburi Cement’s Seddiq Hassani said that the repeal of section 33b of the Banking Act in November last year, looks likely to boost the industry and enhance access to credit by the private sector, especially the Micro, Small and Medium Enterprises (MSME’s).

“Our contribution as a company has been to help reduce complexity in the building process, especially for the home builder, by providing application based products that are easy to understand, chose and use.”

Kenya’s President Uhuru Kenyatta last year signed into law the Finance Bill 2019 after the bid to remove a cap on commercial lending rates was passed in Parliament following a quorum hitch, potentially boosting the flow of credit to the economy and return of expensive credit.

As part of government efforts to support the affordable housing pillar of the Big 4 Agenda, the Finance Act 2019 exempts the National Housing Development Fund from income tax. As a result high-risk borrowers like individuals and small businesses face an increase in loan rates of up to three percentage points following the removal of the legal cap on commercial lending charges.

Hassani was speaking during the launch, Bamburi Cement Chief Executive Officer Seddiq Hassani said the Company’s key priority and focus has been to offer innovative end user products and services to meet more specific and unique construction needs.

Fundi is formulated with enhanced capabilities for masonry and plaster works. It is an application-based cement that can be used in brick and block laying, plastering, rendering, screed and repair works.