Kalahari Cement, a locally incorporated investment firm and subsidiary of Tanzania’s Amsons Group, has completed the acquisition of a 29.2 percent equity stake in East African Portland Cement Plc (EAPC). The deal, finalized on November 4, 2025, positions the company as one of the largest strategic shareholders in Kenya’s oldest cement producer.
The transaction follows the signing of a share purchase agreement on July 31, 2025, and the subsequent approval of all regulatory conditions. The sale was completed as a private transaction after the Capital Markets Authority (CMA) granted Kalahari Cement an exemption from making a mandatory takeover offer to other shareholders.
Under the agreement, Kalahari Cement acquired 13,144,442 ordinary shares (14.6 percent) from Associated International Cement Limited (AIC) and another 13,180,442 ordinary shares (14.6 percent) from Cementia Holding AG, both valued at KSh27.30 per share.
Amsons Group Managing Director Edha Nahdi described the acquisition as a “strategic investment” aimed at strengthening EAPC’s operational capacity and contributing to Kenya’s long-term industrialization goals.
“Our subsidiary Kalahari Cement is a committed and experienced strategic investor,” Mr. Nahdi said. “We will leverage our market positioning to provide capital and technical resources necessary to transform EAPC into one of Kenya’s leading cement manufacturers by volume and profitability, as part of our corporate contribution to Kenya’s economic prosperity.”
Mr. Nahdi emphasized that the acquisition is anchored in a long-term partnership approach, with a focus on improving efficiency, technology transfer, and stakeholder value creation.
“As a long-term strategic investor, Kalahari Cement will assist EAPC to achieve its strategic objectives through a shared prosperity model with all stakeholders, from staff and trade partners to government agencies,” he added. “At Amsons Group, we do not intend to spare any resource—financial or otherwise—in our turnaround partnership with EAPC stakeholders.”
CMA Approval and Regulatory Framework
Kalahari Cement’s notice of intention to acquire the stake was publicly issued on July 31, 2025, followed by an application to the Capital Markets Authority (CMA) for exemption from the takeover requirements under Kenya’s Capital Markets (Takeovers and Mergers) Regulations, 2002.
On August 5, 2025, the CMA approved the exemption and recognized the acquisition as a private transaction under the Capital Markets Act, CAP 485 and the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.
This approval paved the way for the completion of the transaction, which is expected to inject new life into EAPC, a company that has faced financial strain and operational challenges over the last decade, including liquidity constraints and underutilization of its Athi River plant.
Strategic and Industrial Impact
The deal marks a significant milestone in Kenya’s cement sector, which has seen increasing cross-border investment amid regional infrastructure expansion. Kalahari Cement’s entry is expected to enhance EAPC’s competitiveness in an industry dominated by players such as Bamburi Cement, National Cement, and Savannah Cement.
Industry analysts note that EAPC’s turnaround could bolster Kenya’s ongoing Affordable Housing and infrastructure projects, both of which demand steady cement supply. The strategic investment by Amsons Group may also open opportunities for export synergies within the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA).
Kalahari Cement’s acquisition aligns with Kenya’s industrial transformation agenda, which seeks to attract foreign direct investment (FDI) into manufacturing. By channeling capital into EAPC, the company aims to modernize production lines, optimize capacity utilization, and create new employment opportunities.
Amsons Group’s Regional Footprint
Amsons Group, founded in Tanzania in 2006, has evolved from a petroleum import and distribution company—under its flagship brand Camel Oil Tanzania—into a diversified pan-African conglomerate spanning energy, manufacturing, logistics, and infrastructure.
The group’s manufacturing operations include a daily cement production capacity of 6,000 metric tonnes, recently bolstered by its acquisition of Mbeya Cement in Tanzania. With the integration of Bamburi Cement Plc in Kenya, Amsons’ total cement output has expanded to 13,000 metric tonnes per day.
The group also operates a 500MT/day wheat flour milling plant, a premix concrete facility, fuel and LPG depots, and inland container depots (ICDs) serving Zambia, Malawi, Mozambique, the Democratic Republic of Congo, Burundi, and Tanzania. Its logistics division runs a large transportation fleet and a network of over 150 fuel retail stations across the region.
This diversified portfolio provides Kalahari Cement with the technical and financial muscle to help reposition EAPC as a profitable and innovative player within Kenya’s building materials market.
Outlook: Revitalizing a Kenyan Legacy
Founded in 1933, East African Portland Cement has been a cornerstone of Kenya’s construction and industrial sectors but has faced stiff competition, governance challenges, and recurring financial distress. The new equity injection by Kalahari Cement may mark a turning point for the company’s restructuring and modernization efforts.
Market observers will be keen to see how Kalahari Cement integrates its operational expertise with EAPC’s local legacy to deliver improved efficiency and shareholder value. Analysts also anticipate that EAPC could play a larger role in regional cement exports, supported by enhanced capital flows and access to Amsons Group’s distribution networks.
As Kenya continues to prioritize industrial growth, the Kalahari–EAPC deal underscores the growing confidence of regional investors in the country’s economic fundamentals. The partnership could set a precedent for similar private-sector-led turnarounds in state-influenced or legacy industrial firms.
