Kenya has secured a new investor to establish a $254.4 million (about KSh33 billion) cement factory in Kitui County, reviving plans for a major cement manufacturing project that previously involved Nigerian billionaire Aliko Dangote.

President William Ruto announced the development during a media engagement in Mombasa on October 1, 2026, saying the new investor is already in place and that construction is expected to begin in November 2026. The investor has not yet been publicly named.

NEW INVESTOR TO BEGIN PROJECT

According to President Ruto, the investor is ready to proceed with the project, and he intends to travel to Kitui next month to formally launch construction.

“The investor is already around, and I will be soon visiting Kitui, probably next month, to break ground for the factory, which will cost $254.4 million,” Ruto said.

The project is expected to strengthen Kenya’s cement manufacturing capacity and bring industrial investment and employment opportunities to Kitui County, which has significant limestone deposits suitable for cement production.

DANGOTE’S EARLIER PLAN

The announcement also brings renewed attention to Dangote’s earlier attempt to establish a cement factory in Kitui.

Ruto said Dangote had sought to invest in the county several years ago but eventually abandoned the Kenyan project and directed the investment to Tanzania. According to Ruto, the Nigerian businessman faced conditions and demands that frustrated the proposed investment.

Ruto said his administration is seeking to create a more predictable environment for investors and prevent unnecessary demands from discouraging major projects.

He also cited alleged demands for shares and bribes as some of the issues that had previously discouraged investors, while stressing that large investments should generate employment and other economic benefits for Kenyans.

KITUI’S LIMESTONE RESOURCES

Kitui has long attracted interest from cement manufacturers because of its substantial limestone resources. Previous proposals from several companies have targeted the area for large-scale cement and clinker production.

Dangote’s proposed project had been discussed for years, with earlier reports putting its planned investment at tens of billions of Kenyan shillings. The project ultimately did not materialise, while Dangote Cement proceeded with its expansion elsewhere in East Africa, including Tanzania.

WHAT THE NEW PROJECT COULD MEAN FOR KITUI

The new investment could give Kitui a major industrial boost if construction proceeds as announced.

A large cement factory would potentially create direct and indirect employment, stimulate demand for local services and transport, and generate business opportunities around the manufacturing and construction supply chains.

For Kenya, the project would also add production capacity to the domestic cement industry and potentially reduce dependence on imported cement or clinker, depending on the plant’s eventual production capacity and operations.

However, important details—including the identity of the investor, production capacity, financing structure, expected completion date and projected number of jobs—have not yet been publicly disclosed.

For now, the Kenyan government says the project is moving toward construction, with President Ruto expected to preside over the groundbreaking in November 2026.