HARARE —Khayah Cement is on the brink of a historic revitalisation, marking a new chapter in its tumultuous journey. After years of financial turmoil, operational setbacks, and external pressures, the company has found a saviour in Hima Cement — a formidable player prepared to inject over US$60 million into the beleaguered firm.
This infusion of capital is not merely a lifeline but a catalyst poised to transform Khayah Cement’s future.
Khayah Cement Limited’s creditors approved Hima Cement as the new investor that will inject over US$60 million into the business while also diluting and buying out major shareholder Fossil Mining Company as part of the company’s corporate rescue plan.
The funds are aimed at settling outstanding indebtedness to creditors and strengthening the company’s financial position, thereby facilitating a return to a healthy balance sheet and sustained profitability.
Khayah Cement, formerly Lafarge Cement, rebranded in May 2023 following Fossil Mining’s purchase of the majority stake, but has since faced significant operational hurdles.
Frequent mechanical breakdowns, particularly in critical areas like the kiln plant and Vertical Cement Mill, have disrupted production. The aging kiln’s need for refurbishment has further reduced output. Sales volumes have also declined over the past few years. Moreover, US sanctions on the company’s major shareholder, Fossil Group, have restricted access to funding, worsening Khayah’s financial struggles.
The company is also saddled with a legacy debt of US$42.9 million, including interest, inherited from Holcim Group. This longstanding loan has severely strained the company’s finances, ultimately leading to its placement under corporate rescue.
Hima Cement has been chosen as the preferred investor for Khayah Cement by the creditors, following a bid process that opened and closed on August 8, 2025. Other bidders included Chinese companies XIAMEN and ZTTEW.
Khayah’s corporate rescue practitioner, Bulisa Mbano, told FinX that “Creditors have voted for Hima Cement as the investor that will inject over US$60 million into the business.” This financial infusion is crucial for settling creditors, reducing liabilities, and restoring the company’s balance sheet, potentially paving the way for improved profitability.
Hima Cement is owned by the Sarrai Group, a diversified manufacturing conglomerate headquartered in Uganda with subsidiaries in Uganda, Kenya and Malawi. Hima Cement was previously owned by Lafarge Holcim, past owners of Khayah Cement. The Sarrai Group is owned by East African Indians.
With three state-of-the-art plants strategically located in Uganda – including the Hima Plant in Kasese, the Namanve Blending Station in Kampala, and the Tororo Grinding Station in Tororo – Hima Cement boasts a total cement production capacity of over 2 million tonnes.
Hima Cement is set to invest US$100 million in expanding its Kasese plant to boost production capacity. Upon completion, the new cement production line will rival the mother plant in Kenya’s capacity and become one of Africa’s largest. Currently producing 300,000 tonnes of cement annually, the company aims to increase production by 700,000 tonnes within two years.
Meanwhile, Khayah Cement is already showing signs of revival, having produced 25,000 tonnes of cement in August, with its kiln slated for commissioning in November.
Overall, the transaction represents a positive step toward salvaging Khayah Cement, with potential for significant capacity expansion and financial stabilization. However, its success hinges on effective management of operational risks, strategic execution of infrastructure upgrades, and navigating external pressures.
As of 2024, the Zimbabwe cement market has an installed annual production capacity of 2.6 million tonnes and an annual demand of around 1.6 to 1.8 million tonnes. However, local production often falls short of demand due to high costs and frequent plant breakdowns, leading to reliance on imports.
The market is dominated by two major producers, PPC Zimbabwe and Khayah, though several smaller players are also active. These include Sino-Zimbabwe Cement Company, which is the third-largest producer in the country. Emerging players include JainQiang Cement – this company is nearing completion on a new plant in Hwange, which will have a production capacity of 600,000 tonnes annually –, Shuntai Holdings with a US$70 million investment is constructing a cement plant near Chegutu with an expected annual production of 0.8 million tonnes. Construction has proceeded despite legal challenges. Other smaller manufacturers include Mortal Investments Manufacturing Company (Livetouch Cement) and Pacstar Cement & Concrete Limited.—fx