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Lafarge tightens its grip on Kenya’s construction market

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The firm, has set aside an additional Sh24 million ($237,060) which will go towards the opening of 12 more stores in various parts of the country including Thika, Nakuru, Kisumu, Mombasa and Kajiado by December this year.

 

LafargeHolcim, the world’s leading construction materials and Solutions Company has begun the roll-out of specialized one-stop building materials stores in Kenya with the opening of four outlets in Nairobi, Machakos and Kiambu Counties.

The firm, has set aside an additional Sh24million ($237,060) which will go towards the opening of 12 more stores in various parts of the country including Thika, Nakuru, Kisumu, Mombasa and Kajiado by December this year.

According to a statement from the firm, its total investment this year is Sh40million ($395,236). The company has an ambition of opening over 200 stores in the country by 2020.

LafargeHolcim already has a presence in Kenya through its subsidiary Bamburi Cement.

The stores, which are operated under the brand name ‘Binastore’, will serve the needs of end-consumers, self-builders, masons and small contractors selling a broad range of building materials including Bamburi Cement products and solutions as well as a variety of other construction materials from partner suppliers.

According to Network Development Manager, Binastore Eric Gitahi, Binastore outlets will not only provide building and construction materials, but also offer numerous differentiating and attractive services to clients such as credit services, technical support and access to architects and building designs.

The stores will cover all building materials and adapted to local market needs including cement, roofing, blocks and paving, paint, tools, locks, plumbing, electrical, safety equipment, flooring and tiling, doors and windows to name a few.

Some of the partner suppliers that the company is working with are Bamburi Cement, Union and Yale, East African Cables, Fosroc Kenya, Mabati Rolling Mills, Metsec, Plascon, Sika and Simba General Merchants.

Additionally, the stores will also offer project design and advisory services through a partnership with Bamburi Cement under its affordable housing initiative.

This move comes against the backdrop of a recent announcement by LafargeHolcim to rollout specialized retail network for construction materials in Africa and Middle East under its new Binastore banner. So far, it has over 500 stores and a presence in over 12 countries in Africa and Middle East offering over 2000 building materials and products.

“Benefiting from the relationships between LafargeHolcim and suppliers over the world and the economies of scale of the network, Binastore outlets have access to a broad range of quality products at competitive prices,” added Eric.

According to the Oxford Business Group’s Construction and Real Estate Research and Analysis 2017 report, Kenya’s construction industry has been accelerating at a rapid pace and making a substantial contribution to the country’s strong GDP growth figures on the back of major public works projects and rising demand for mixed-use and residential developments.

Source: The Exchange

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