The Kenyan Parliament’s Trade, Industry, and Cooperatives Committee is investigating the proposed sale of a 29.2% stake in East African Portland Cement (EAPC) to Tanzania’s Kalahari Cement Ltd, owned by businessman Edhah Abdallah Munif.
If approved, the deal would give Munif effective control of 41.7% of EAPC, as he also owns Bamburi Cement, which holds a 12.5% stake in EAPC.
The committee raised concerns over the transparency and potential impact on public interests, questioning whether due diligence was conducted and if the interests of taxpayers, pensioners, and workers are safeguarded.
Industry Principal Secretary Juma Mukhwana assured the committee that the government would ensure oversight mechanisms remain intact, protecting the interests of the public, pensioners, and taxpayers.
However, MPs pressed for more transparency, questioning the valuation process and the potential monopolistic takeover.
The committee directed EAPC to pursue a share buyback, citing concerns that the company was allowing a foreign investor to scoop up shares cheaply instead of repurchasing and reselling them later at a profit.
