Hope as firm gets nod to build Sh25b cement factory in Kitui

Kenya: Kitui County Government has adopted a project proposal by Athi River Mining Cement Limited (ARM) to mine limestone and establish the first cement factory plant in the county.

ARM has been engaged in negotiations with the county government over extraction of huge deposits of limestone in Ngaaie Location, Kyuso District.

The factory, to be set up at Ngaaie area of Mwingi North Sub-county rekindles hopes of a brighter future for the mineral-rich county. Plans to establish a cement factory in Mutomo District in Kitui South were halted 10 years ago after ARM and Bamburi Cement engaged in a vicious court battle over the control of vast limestone deposits in Kanziku and Mathima Locations.

But unlike in Mutomo, ARM has had a smooth ride in Ngaaie as it is the only company that has shown interest in limestone deposits in the area. It has been prospecting for limestone in the area since 2009. The investor’s project plan was discussed on Wednesday and adopted during a consultative meeting between Kitui County Government, representatives of Ngaaiye community and officials of the cement company held at Kenya Forestry Institute in Kitui Town.

The meeting, chaired by Kitui Governor Julius Malombe, was attended by ARM’s Managing Director Pradeep Paunrana, Ngaaie community liaison committee members led by their chairman Eng Paul Nzengu, Mwingi North MP John Munuve, Kyuso DC Peter Maina and Members of Kitui County Assembly.

Key economic driver

The meeting endorsed the proposal, setting the ground for the first limestone mining project in the county, with all sides promising to support its success. Dr Malombe gave his commitment to lead the efforts of fast tracking the project, bailed as a key economic driver that will create enormous wealth opportunities in the county. According to the plan, ARM will set up the factory at Mbui village, about three kilometres from Ngaaie hill, which has a total coverage of 3,500 acres rich in limestone and where 250 households are expected to relocate to give way for the project. Mr Paunrana said two factories -- one for clinker, which is the main ingredient in cement manufacturing and another for fine cement grinding -- will be set up simultaneously in the area.

“Ngaaie cement and clinker plants will be one of the most significant investment in Kitui County. We project to offer 2,000 jobs directly and another 1,500 jobs indirectly to the local residents who will be given preference in recruitment,” Mr Paunrana said.

Apart from land, ARM has undertaken to compensate the locals for their houses, trees and other structures in the project area. The investor has also committed to set aside Sh10 million per year in a trust fund that will be managed by the local community. The community will be at liberty to choose what projects to undertake with this money. A technical team consisting of the community’s liaison committee, officials from county and national governments and ARM representatives negotiated and agreed an amount of Sh150,000 per acre to be paid to individual land owners in the project area to allow for limestone extraction. The community, through the liaison committee, has engaged a surveyor to determine the actual acreage for individual farmers.

Good prospects

George Mulatya, the County Executive in charge of Environment, Energy and Mineral Investment Development, said the limestone-rich Ngaaie hill and surrounding areas have been declared an adjudication zone where in the next few months residents will be issued with title deeds to facilitate compensation.

The residents will not move out immediately after payment but will do so “on a mutually agreed time.” Meanwhile, another valuer will be engaged to establish the value of the residents’ houses and trees for compensation. Nzengu said they were poring over the agreement with a “fine tooth-comb” to ensure the community reaps maximum benefits from the project. ARM promises to sink boreholes and help the community put up schools and other social amenities in areas they will relocate to. The company has already spent Sh9 million to construct eight classrooms in two schools -- five at Kyangwithya Primary School and another three at Kaithangu Primary School -- as a way of giving back to the community.

The cement manufacturer is now drilling wells around the limestone area to establish the depth of the deposits. Some of the wells have gone up to 100 metres deep with good prospects for limestone. And to protect the environment, the investor has been advised to plant trees within the mining area to arrest thick clouds of dust that will be produced during extraction.