Kalahari Cement has taken formal control of East African Portland Cement Company (EAPCC) after the National Social Security Fund completed the sale of its 27 percent stake to the Tanzanian tycoon-owned firm for Sh1.6 billion.
The stake transfer, confirmed on Monday, followed approvals from the Capital Markets Authority (CMA), the Competition Authority of Kenya (CAK) and the Ministry of Mining, giving Kalahari a 68.7 percent controlling interest in the listed cement maker.
The National Social Security Fund (NSSF) offloaded 24.3 million shares at Sh66 each. Kalahari had last month announced signing a share purchase agreement with the State-run pension fund.
Kalahari, which is ultimately owned by Tanzanian tycoon Edhah Abdallah Munif through Mauritius-based Pacific Cement Limited and Comercio Et Consiel Limited, has been raising its stake in EAPCC following a separate deal with Swiss multinational Holcim.
Holcim last month sold its 29.2 percent holding at Sh27.30 per share —representing a 46.2 percent discount to EAPCC’s share price at the time.
The contrasting valuations between the Holcim and NSSF disposals underscore the volatility around EAPCC’s pricing in recent months, with the firm’s current market capitalisation standing at Sh7.5 billion against a June 2024 net asset value of Sh20.4 billion.
The completed deal lifts Mr Munif’s effective exposure in the Kenyan cement market, adding to his 12.5 percent interest in EAPC held through Bamburi Cement, which he acquired through Amsons Group in December 2024.
Amsons said in its statement that it intends to inject fresh capital into EAPCC following the transaction and plans to increase production capacity significantly, including building an additional clinkerisation plant.
“We see so much potential in the cement market in Kenya, and we are committed to growing it even more. We plan to make a significant investment in EAPCC with the aim that we triple production capacity in the next three years,” said Munif.
EAPCC has struggled with persistent losses for more than a decade, only issuing a dividend this year due to proceeds from land sales rather than improved operations.
The new majority ownership now places responsibility for the turnaround on Amsons, whose ongoing projects include a 5,000-tonne-per-day clinker facility in Kwale being developed by Bamburi Cement at a cost exceeding $300 million (Sh38.8 billion).
