Devki Group breaks ground for first steel mill in Eastern Africa, to create over 10,000 jobs

Devki Group has broken ground for a Sh45.5 billion steel mill that will be the first in the region and only second to the one in South Africa.

The plant located on a 200-acre piece of land in Kwale County will exploit locally sourced iron ore and create over 10,000 jobs both directly and indirectly.

Speaking Tuesday during the groundbreaking ceremony, Industrialisation Cabinet Secretary Peter Munya said the steel mill would halve the amount of Kenya’s steel imports and create numerous local employment opportunities.

“The plant when complete is expected to have an estimated production of half a million tonnes of steel, approximately half of our total annual import tonnage. This means we can look forward then to billions of shillings in savings in addition to the many jobs that will be created,” said Mr Munya.

He added that the groundbreaking comes at an opportune time to complement and make a reality the Big Four agenda, specifically the manufacturing and housing pillars.

“The homes we expect to build will require substantial quantities of steel. It makes sense to encourage steel production right here at home. After all, since we have the resources and the expertise required to make steel right here at home, importing steel is exporting Kenyan jobs,” he said.

Devki Group Chairman Narendra Raval said once complete, the mill would have a big impact on the local and regional economies. The plant will have a capacity to produce half a million tonnes of steel, enough to supply most parts of Africa.

“We chose to set up the plant in Samburu in Kinango constituency because it is one of the poorest places in the country. The plant will create over 1,500 direct jobs and over 9,000 indirect jobs through distribution, transport and services sectors,” said Mr Raval.

Devki Group currently employs more than 4,500 people in the region, a number that is expected to hit the 7,000 mark once the steel mill becomes operational.

The steel plant will use blast furnace technology for primary steel manufacturing largely using internally generated power supplemented by supply from the grid. Iron deposits have been discovered in former Eastern and Coast provinces.

Mr Raval said the new plant should see Kenya shun importation of industrial steel products and export of scrap metal for recycling. Iron and steel are among the most imported products in Kenya after capital machinery and petroleum products.

Devki, known for its steel and cement products, is also on an expansion drive where a 750,000 metric tonnes capacity plant in Nakuru and a one million metric tonne plant in Mombasa are slated for completion in 2019 and 2020 respectively.