Tanzanian tycoon tightens grip on Kenya’s cement industry
What you need to know:
- Through his Nairobi-registered firm, Kalahari Cement, Mr Munif has reached an agreement to acquire a 29.2 percent shareholding in East African Portland Cement (EAPC) from Swiss multinational Holcim, which is continuing its retreat from African markets.
Dar es Salaam. Barely a year after acquiring one of Kenya’s largest cement producers, Bamburi Cement, Tanzanian billionaire Edhah Abdallah Munif has stepped up his investments in the sector by purchasing a $5.56 million stake in another major player.
Through his Nairobi-registered firm, Kalahari Cement, Mr Munif has reached an agreement to acquire a 29.2 percent shareholding in East African Portland Cement (EAPC) from Swiss multinational Holcim, which is continuing its retreat from African markets.
The deal is valued at more than Sh13 billion, based on a transaction worth KSh718.5 million (about $5.56 million).
Once approved by the Capital Markets Authority of Kenya, the acquisition will make Mr Munif the largest shareholder in EAPC, with a combined 41.7 percent stake, according to a statement issued from the company.
The shares are being offloaded by two Holcim-owned entities – Associated International Cement Ltd and Cementia Holding AG – each selling 14.6 percent, it said.
Kalahari Cement is offering KSh27.3 per share, representing a 42 percent discount from EAPC’s current market price of KSh47.5 on the Nairobi Securities Exchange.
EAPC, one of Kenya’s oldest cement manufacturers, operates as far as Uganda and holds a vast 909-acre property in Athi River. However, years of poor management and leadership disputes have left the company struggling, with debts of KSh6 billion and arrears owed to workers and suppliers.
Holcim, formerly the dominant investor, was long unable to turn the company around in its joint ownership with the Kenyan government, which holds a 25.3 percent stake. A further 27 percent is owned by Kenya’s National Social Security Fund (NSSF).
Industry experts say EAPC’s competitiveness has been undermined by a lack of strategic direction and frequent leadership changes.
The latest deal comes just months after Amsons Group – owned by the Munif family – acquired a 96.5 percent stake in Bamburi Cement from Holcim in late 2024, in a transaction worth $182 million.
Bamburi itself already owns a 12.5 percent stake in EAPC, giving Mr Munif considerable influence over two of Kenya’s largest cement producers.
Amsons Group has made no secret of its ambition to become East Africa’s leading cement manufacturer. Its strategy includes cutting production costs, improving operational efficiency and countering competition from Chinese firms. The company is also eyeing expansion into Uganda and beyond.
In a March interview with The Africa Report, Amsons Group chief executive Edha Nahdi said: “Uganda is like a brother to Kenya and Tanzania. Everything is on the table.”
