NAIROBI, Kenya – The Ministry of Investments, Trade and Industry faced intense scrutiny from a National Assembly Committee on Tuesday over the controversial proposed sale of East African Portland Cement (EAPC) PLC shares by Holcim Limited to Kalahari Cement Ltd.

During a sitting held on September 30, 2025, the Trade, Industry and Cooperatives Committee, chaired by Ikolomani Member of Parliament Benard Shinali, convened with Industry Principal Secretary Juma Mukhwana. Dr. Mukhwana provided a detailed explanation of the government’s stance on the planned share transaction, aiming to allay parliamentary concerns.

In his submission, Dr. Mukhwana sought to assure the Committee that the interests of the Kenyan public would be fully safeguarded should the transaction proceed. This assurance came after MP Shinali and Vice Chairperson and Aldai Constituency MP Marianne Kitany, along with other committee members, had earlier voiced significant concerns about the proposed sale.

Background to the Proposed Sale

East African Portland Cement PLC, a prominent player in Kenya's construction sector, has a complex ownership structure. The government, through the National Social Security Fund (NSSF) and the National Treasury, holds a significant stake, making any major ownership changes a matter of public interest and parliamentary oversight. Holcim Limited, a global building materials giant, is a key shareholder whose decision to divest its stake has triggered the current debate.

Kalahari Cement Ltd, the prospective buyer, has not yet publicly disclosed its full strategic intentions for EAPC. This lack of transparency has fueled some of the concerns raised by the parliamentary committee, which is keen to understand the long-term implications for EAPC's operations, its workforce, and the broader Kenyan economy.

Parliamentary Concerns and Demands

The Trade, Industry and Cooperatives Committee's primary concerns revolve around several key areas:

• Transparency: Members questioned the level of transparency in the negotiations and the information provided to the public regarding the sale.
• Valuation: There were queries about the valuation of the shares and whether the proposed sale price adequately reflects EAPC's true market value and future potential.
• Public Interest: Lawmakers emphasized the need to protect the interests of Kenyan taxpayers and the government's strategic stake in a vital national industry.
• Employment: Concerns were raised about the potential impact of the ownership change on EAPC's employees and their job security.
• Market Competition: The committee sought assurances that the sale would not lead to an undue concentration of market power or negatively affect competition within the cement industry.

MP Shinali underscored the committee's mandate to ensure that all transactions involving state-linked entities are conducted with the utmost integrity and benefit the Kenyan people. MP Kitany reiterated the need for a thorough due diligence process and a clear articulation of the benefits, if any, to the national economy.

Government's Position and Future Steps

Principal Secretary Mukhwana's presentation aimed to address these concerns, although the full details of his assurances have not yet been made public. It is understood that the Ministry is working to ensure compliance with all relevant laws and regulations governing such transactions, including those related to competition and investment.

Analysts suggest that this parliamentary intervention could significantly influence the timeline and conditions of the proposed sale. Stakeholders across the industry are now urging the Ministry to provide greater clarity on the process, including:

• Detailed timelines for the transaction.
• A comprehensive cost-benefit analysis.
• Specific safeguards to protect public and employee interests.
• The long-term strategic vision for EAPC under new ownership.

The committee is expected to continue its oversight role, potentially requesting further information or even recommending specific actions to the Ministry. The outcome of these deliberations will be closely watched by investors, industry players, and the general public, as it could set a precedent for future divestitures involving government-linked assets.