Khayah Cement Resumes Production, Offering Relief to Cement-Starved Market

Khayah Cement has resumed full production after repairing its kiln, injecting 50 000 tonnes monthly into a cement-starved Zimbabwean market and offering relief to the construction sector (image source)

Cement production has resumed at Khayah Cement, raising hopes of relief in a market that has been grappling with acute shortages and sharply rising prices.

The development was confirmed by corporate rescue practitioner Bulisa Mbano, who told journalists on Wednesday that a key production unit—the kiln—has been successfully repaired and is now fully operational. “Our plant, particularly the kiln, was down and it is now up and running,” Mbano said. “The kiln processes clinker, which is one of the major inputs in cement production, so its restoration is critical.”

Zimbabwe has faced persistent cement shortages in recent months, with prices surging from around US$9 per bag to as high as US$16 and above, as supply failed to keep pace with demand from the construction sector. Builders and developers have reported delays and rising project costs, further straining an already pressured economy.

Mbano said Khayah Cement—formerly Lafarge Zimbabwe—has resumed production at full capacity, with plans to inject 50 000 tonnes of cement into the market every month. Daily output is expected to exceed 1 000 tonnes, a significant boost that could help stabilise prices, provided distribution bottlenecks are effectively addressed.

The company has been under corporate rescue following prolonged operational disruptions, which management has previously linked to economic sanctions and broader macroeconomic challenges. “We are happy with the US$20 million investment that has gone into fixing and upgrading the system,” Mbano said. “The other positive development is that all creditors have now been settled, which gives us breathing space to focus on growth and operational stability.”

The settlement of creditors marks a key milestone in Khayah Cement’s turnaround efforts, easing legal and financial pressures that had weighed heavily on operations. To support the recovery, the company has partnered BancABC, which has provided financial backing aimed at boosting production capacity and ensuring smoother procurement of critical inputs.

Industry analysts say the resumption of production at Khayah could ease pressure on the construction sector, which has been battling rising costs and material shortages. However, they caution that sustained output, reliable power supply and efficient distribution will be crucial to restoring normal market conditions.

For now, Khayah Cement’s return to full production represents a rare positive development in Zimbabwe’s manufacturing landscape—one that could bring much-needed relief to builders, developers and consumers alike.