Demand for bitumen in Kenya is expected rise to over 16,000 metric tons on the government's move to increase budgetary allocation to road construction activities. It is projected that bitumen use in 2011 will exceed 16,000 mt due to many planned and ongoing construction activities. Devolved government system will make the next six years bright by increasing activities in counties. The average price of bitumen in Kenya is $670 to $690 per metric ton. Finance Minister Uhuru Kenyatta in June 2011 increased the budgetary allocation for the Ministry of Roads from KSh90.2 billion ($1 billion) to KSh100.9 billion ($1.1 billion) for construction and maintenance of critical roads in the country. Data compiled by Petroleum Institute of East Africa (PIEA) shows Kenya Petroleum Refineries Ltd produced 4,158 MT of bitumen from January to March 2011. Bitumen is also imported from Saudi Arabia, Egypt, Iran and Turkey. PIEA's data shows consumption of bitumen has risen from 11,650 metric tons in 2005. Firms involved in selling bitumen include Shell, Bitu-Bulk, Metro PetroleumTotal, KenolKobil, Engen and Pan African Petroleum. According to Bitu-Bulk Handlers (EA) Ltd, demand for bitumen prior to 2004 was historically very low as the Government was not investing significantly in road infrastructure but the situation has changed. "Demand for bitumen is growing upwards as there are many planned and ongoing construction activities like Nairobi-Thika highway expansion to have eight lanes," said Bitu-Bulk's Managing Director Sami Ismail. He said the firm's bitumen is imported in steel drums of 185 kilograms from Russia and continued government investment in roads does not only improve infrastructure for Kenyans but raises the country's competitive edge. Metro Petroleum Managing Director Bill Rotich warned that the uptake of bitumen could be affected by depreciation of the Kenyan currency against the dollar making pricing a complex affair. The increased cost of fuel could affect completion of roads under construction.
