Kalahari Cement has signed a share purchase agreement to acquire a further 27 percent equity stake in East African Portland Cement Plc in a transaction valued at KSh 1.6 billion. The deal, announced through a public notice on Thursday, marks one of the most significant ownership shifts in Kenya’s cement industry in recent years and positions Kalahari Cement on the threshold of effective control of the listed manufacturer.
Under the agreement signed with the National Social Security Fund, Kalahari Cement will purchase 24.3 million ordinary shares at KSh 66 per share, subject to regulatory approval. The stake sale represents a major divestment for NSSF, which has been one of the long-standing institutional shareholders at EAPC.
The acquisition follows Kalahari Cement’s recent purchase of a 29.2 percent stake from Associated International Cement Limited and Cementia Holding AG, a move that already elevated the firm into EAPC’s top shareholder bracket. Bamburi Cement, a related company within the broader investment structure, holds an additional 12.5 percent of EAPC.
Despite the expanded holding, Kalahari Cement says it has no intention of triggering a mandatory takeover offer for the remaining shares. Instead, the firm will seek an exemption from the Capital Markets Authority.
Amsons Group Managing Director Edha Nahdi said the intention is to strengthen the company rather than take it private or delist it from the Nairobi Securities Exchange. He described Kalahari Cement as a long-term strategic investor committed to supporting EAPC’s turnaround.
Nahdi stressed that the group aims to deepen capital markets participation by retaining EAPC as a publicly traded company. He added that the fresh capital injection and future support are expected to provide the company with resources needed for restructuring and operational enhancement.
EAPC has faced years of liquidity strain, ageing equipment and fluctuating production reliability. The Amsons Group has framed its investment as a strategic rescue plan that will focus on operational modernisation, cost stabilisation and growth of product lines.
Nahdi said the investor’s shared prosperity model will involve close coordination with employees, trade partners and government agencies. He added that Amsons Group is prepared to deploy all required resources to support the company’s recovery.
EAPC operates an integrated cement plant on the outskirts of Nairobi and remains a legacy player in Kenya’s construction sector. Its flagship Blue Triangle Cement has been in the market for decades. The company has also been expanding into sustainable and value added building products, including Green Triangle Cement, a lower clinker blend designed to reduce environmental impact. Its cabro and paving brands include Falcon Cabro, Olympia Cabro, Tri-Hex Cabro, Cosmic Cabro and Brick Cabro.
If approved, the deal will push Kalahari Cement into a dominant position, consolidating a stake that places the company at the centre of future decision making at the publicly listed manufacturer.
