Tanzania’s Amsons Group has deepened its footprint in East Africa’s cement market after acquiring a 29.2 percent stake in Kenya’s East Africa Portland Cement (EAPC) through its subsidiary, Kalahari Cement, in a deal worth $5.6 million (about Sh718 million). The acquisition marks a significant step in Amsons’ regional expansion and signals a growing challenge to Dangote Cement’s dominance across Africa.
The transaction, which began in late July, saw Kalahari Cement purchase 26.3 million shares; 13.14 million from Associated International Cement Limited (AIC) and 13.18 million from Cementia Holding AG, at Sh27.30 per share. This investment positions Amsons as one of the largest shareholders in the Nairobi-listed cement manufacturer, consolidating its role as a major player in the region’s construction materials industry.
Amsons Group Managing Director Edha Nahdi described the acquisition as a strategic move aimed at “building long-term value for EAPC and reshaping Kenya’s cement production landscape.” He added that the group plans to inject both capital and technical expertise to modernise EAPC’s operations, expand production capacity, and drive innovation in cement technology.
“This will enable Kalahari Cement to strategically leverage its resources to drive growth and strengthen the cement industry’s infrastructure through enhanced production capabilities and the creation of new opportunities for innovation and market expansion,” Nahdi stated.
The Capital Markets Authority (CMA) approved the acquisition as a private transaction under Kenya’s Capital Markets Act and the 2023 listing regulations. However, the approval has drawn sharp criticism from some lawmakers and market analysts, who argue that the shares were sold at below-market value. On the day the transaction closed, EAPC stock was trading at Sh60.50, more than double the purchase price of Sh27.30 per share.
Vice Chairperson of Parliament’s Trade, Industry and Cooperatives Committee, Marianne Kitany, has called for an inquiry into the deal, demanding explanations from both the CMA and the National Treasury on the rationale for approving what she termed a “clear undervaluation.”
EAPC’s main shareholders remain the National Social Security Fund (27%), the National Treasury (25.3%), and Bamburi Cement Plc (12.5%).
Earlier this year, Amsons Group’s CEO held discussions with Kenyan President William Ruto over a potential $380 million investment to expand the Bamburi Cement factory; a move seen as part of the company’s aggressive strategy to dominate East Africa’s construction materials market.
With this latest acquisition, Amsons Group has effectively entered Kenya’s cement stronghold, setting the stage for a regional rivalry with Dangote Cement, Africa’s largest cement producer.
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