Nowadays the demand for cement in Ethiopia is increasing due to the growing construction industry in the country. As a result, cement manufacturing and cost of cement is on rise. In addition, the high energy consuming processes of cement production contributes to the large amount of CO2 emission into the atmosphere. Hence, the use of locally available and alternative cementitious materials should be considered as cement replacement in order to reduce the cost and environmental impact associated with its production. Thus, the purpose of this study is to investigate the potential use of locally available red clay soil in Bahir Dar area as partial replacement of cement in concrete production and illustrate the improvements it could possess when mixed with rice husk ash. The two materials were chosen to exploit the high silica content of rice husk to enrich calcined red clay soil to produce a calcined red Clay-Rice Husk Ash (CRC-RHA) blend pozzolana. For this study, the clay sample was calcined at 750°C temperature while the rice husk was burned at 500oC for decomposition. To demonstrate how the different amount of calcined clay-rice husk mix impact the fresh and hardened properties of concrete three proportions of CRC and RHA were blended with the ratio of 1:1, 2:1 and 1:2 to replace 10% and 15% of OPC cement. The results indicate how it is difficult to maintain workable concrete with increasing replacements of CRC-RHA, which leads to a higher water demand of the mixes. The use of RHA tends to increase the initial setting time than control and cement-clay mixes. Regarding harden properties of the mixes, higher compressive strength was achieved for all replacement ranges except, the 15% CRC of the cement, replacement which drops after the 28 day. Addition of 5-10% of RHA adjusts the reduction due to addition of higher amount of clay with time. The increased density of concrete due to higher replacement of clay is lowered with addition of RHA. The cost analysis shows that cost of concrete can be lowered by using CRC-RHA as partial replacement of cement. It is therefore, concluded from the findings of this study that blended CRC-RHA can be used to improve some properties of concrete and reduce cost of concrete.