Major Shift in Kenya’s Cement Market as Kalahari Cement Expands Stake in EAPC

Kalahari Cement has moved into a position of effective control at East African Portland Cement (EAPC) following the acquisition of an additional 27 per cent stake from the National Social Security Fund (NSSF) in a transaction valued at Sh1.6 billion. The deal, sealed through a Share Purchase Agreement signed in Nairobi on November 25, involves the purchase of 24.3 million shares at Sh66 per share, subject to regulatory approvals.

The latest acquisition builds on the 29.2 per cent stake that Kalahari recently bought from Associated International Cement Limited and Cementia Holding AG, significantly reshaping the ownership structure of the Nairobi Securities Exchange-listed cement manufacturer. A related company, Bamburi Cement PLC, retains a further 12.5 per cent stake in EAPC.

Despite crossing key ownership thresholds that ordinarily trigger a mandatory takeover offer under capital markets rules, Kalahari has indicated that it does not intend to launch a takeover bid. Instead, the company plans to seek a waiver from the Capital Markets Authority (CMA), while maintaining that EAPC will remain listed on the Nairobi Securities Exchange.

The transaction places renewed focus on the future of one of Kenya’s oldest cement manufacturers at a time when the construction sector is showing signs of recovery. According to Amsons Group Managing Director Edha Nahdi, the investment is intended to turn around the performance of EAPC through capital injection, infrastructure upgrades and support for its long-term strategic objectives.

EAPC operates an integrated cement plant outside Nairobi and produces several established brands, including Blue Triangle and Green Triangle Cement, alongside a range of cabro paving products. The new ownership structure positions the company to benefit from renewed public and private investment in construction and infrastructure, which is expected to drive demand for cement and related building materials.