Cement prices shoot up as load shedding bites factories

Jan 22, 2023

Tororo Cement has reduced its production from 8,000 metric tonnes of cement to 2,000 metric tonnes daily due to unreliable power

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Nicholas Oneal
Journalist @New Vision

The price of cement has shot up in the past two weeks following a power outage that has affected many factories. The development has negatively affected the construction sector.

A survey done by New Vision in the market within Kampala and Wakiso districts showed that a bag of cement, which, two weeks ago, was at sh32,000, is now between sh37,000 and sh40,000, an increase of about sh8,000.

Various cement factories in the country have attributed the rise in cement prices to the irregular power supply, which they say has affected their production levels, forcing them to buy diesel to run their machines.

This has had an impact on the final cost of cement. Brij Gagrani, the executive director of Tororo Cement, said the power challenge has been ongoing for two weeks.

In an interview with New Vision on Thursday, Gagrani said the increased cost of production has also affected production levels.

He said the company had reduced their production from 8,000 metric tonnes of cement to 2,000 metric tonnes daily due to unreliable power.

“We are only supplied with 15 megawatts during the day and 10 megawatts at night. This is against our request of 30 megawatts to produce at full scale,” he said.

For over now two weeks, Tororo town and the nearby areas have been facing power fluctuations, which have continued to paralyse businesses.

“We cannot meet the demand in the market. The Uganda Electricity Transmission Company Limited said it may take another 10 days,” Gagrani said.

The Hima Cement commercial director, Israel Tinkasimire, said they are only given power from 8:00 pm to 8:00 am, which he says has also affected their level of production.

“We produce close to 120 tonnes per hour every day. Now imagine the losses we have made for the last two weeks without full production,” he said.

Tinkasimire stressed that low production would automatically affect the market prices.

When contacted, UMEME spokesperson Peter Kaujju attributed the problem to a burnt cable at the Tororo power substation, which led to a total blackout.

Tororo district hosts three cement factories, including Tororo, Simba and Hima.

“We are working day and night with UETCL to reconnect the power within this week,” Kaujju said.

He noted that right now they can only produce up to 5 megawatts, which leads to the rationing of power and subsequent blackouts in Tororo and Busia.

Henry Waiswa, a building contractor and resident of Wampeewo in Nangabo-sub-county, Wakiso district, said he had to explain to his clients about the sudden changes in the cement prices.

“I had made quotations and budgeted for cement early this month for clients, but prices suddenly shot up and I had to run back to my bosses to explain the changes,” Waiswa said.

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