IRON AND STEEL KENYA - Mars Group Kenya

sponge iron (Direct Reduced Iron- DRI) in solid state. The sponge iron is then
smelted in an Electric Arc Furnace and then cast into Semis as in the first case.
The activities of Secondary Production on the other hand involve either smelting
of scrap metal in an Electric Arc Furnace to produce semis OR rolling of the
semis into sheets, rods, sections, angles, etc.
In Kenya, the existing iron ore deposits have not been commercially exploited
hence the manufacturing activities in this sector is classified under Secondary
production. Locally sourced scrap metal is smelted in the existing Electric Arc
Furnaces to produce steel billets or ingots. The billets are further rolled into
reinforcement steel bars for use in construction industry.
For the production of special products like screws, bolts and nuts, nails, rivets etc,
the local steel mills have to import quality billets arising from the primary
production route. Other production activities involve importation of Hot Rolled
Coils, for re-rolling into Cold Rolled coils, which are in turn processed into
galvanized sheets, and colour coated sheets.
The country will be able to produce such semis as Hot Rolled Coils, Special
billets, plates etc (currently being imported) if the existing iron ore can be
exploited so as to start producing sponge iron.
3.0 OVERVIEW OF THE SECTOR.
Kenya’s iron and steel industry can be classified into five categories in
accordance with the products manufactured. These are:
steel making and hot rolling
wire and wire products
galvanized and cold rolling steel coils
pipe manufacture
castings.
The major products under the steel smelting and hot rolling process are pencil
ingots billets, wire rods, rounds, section channels and reinforcing bars. The major
enterprises involved in the production of these items are ROLMIL (Kenya) Ltd,
City Engineering Works Ltd, Kenya United Steel Company etc. The total steel
rolling capacity in the country is about 600,000 tonnes per year, while total
smelting capacity is about 95,500 tonnes.
There was only one enterprise, Special Steel Mills in Ruiru, which produced wire
rod and wires that were used by about nine enterprises for further processing into
other wire products such as nails rivets, nuts, bolts, barbed wire, chicken wire
mess, fencing wire and other wire products. The firm however has collapsed,
forcing down stream industries which used to rely on wire products to import the
same from the international markets.
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