Bamburi cement factory in Athi River. [Photo/nation.co.ke]
Bamburi, a company that dominates Kenya's cement industry, is bracing itself up for low profits.
In a profit warning, the cement maker announced that it's 2017 annual profits would reduce by more than a quarter.
Bamburi grounded its projection on the contraction of the real estate sector caused by low credit growth and dismal export volumes.
In a statement made on Friday, the cement manufacturer said that the ''anticipated decrease is mainly attributed to weaker performance in the business in Kenya resulting from contraction of the cement market partly due to poor private sector credit growth, drought conditions together with pre and post elections periods.''
The company made a net profit of 5.8 billion shillings in 2016.
Another factor that could be fueling Bamburi's 2017 profit projections is the completion of the Standard Gauge Railway project which resulted in the contraction of the industry.