MPs Question East Africa Portland Cement Share Sale to Kalahari

Nairobi, Kenya — 2025-09-17 13:15 EAT. Parliament’s Trade, Industry and Cooperatives Committee has demanded answers over plans to sell nearly a third of East Africa Portland Cement (EAPC) authorised shares to Kalahari Cement, citing lack of transparency and potential job losses.

The Latest

• Deal scope: Proposed transfer of 29.2% of authorised shares.

• Impact: Kalahari would hold 41.7%; government retains 52.3% via NSSF and the National Treasury.

• Status: MPs insist on public participation before any transfer proceeds.

Context in Brief

• Transaction allegedly conducted in the company secretary’s office without management, employee, or community input.

• EAPC, historically government-controlled, owns major quarrying operations employing hundreds across Machakos and Kajiado.

Law, Policy, and Process

• Public Participation Act (2018): Requires consultation on significant state-related transactions.

• Companies Act (2015): Mandates shareholder and regulatory approvals for major ownership changes.

• Parliamentary oversight: MPs plan further hearings before the Trade Committee.

Voices and Stakeholders

• Marianne Kitany, Aldai MP: “Kenyans own this firm through pensions and taxes. Due diligence and community consultation are not optional.”

• Mohammed Adan, EAPC MD: Warned the sale could trigger job losses if not carefully structured.

• Wilberforce Oundo, Funyula MP: Urged against decisions that harm quarrying livelihoods.

Evidence & Data

• Stakeholders: Government (52.3%), Kalahari Cement (proposed 41.7%), private investors (remaining stake).

• Share sale size: 29.2% authorised shares under review.

• Location impact: Machakos, Kajiado communities reliant on EAPC quarries.

Risks and Implications

• Employment: Potential retrenchments if Kalahari restructures operations.

• Transparency: Deal secrecy could trigger legal or parliamentary blockages.

• Public assets: Risk of undervaluation without open tender or share buyback.

What We Don’t Know

• Whether NSE listing rules were followed.

• Valuation methods for the 29.2% stake.

• Kalahari’s post-acquisition investment commitments.

Timeline

• Pre-Sept 2025: Transaction initiated internally.

• 2025-09-17: MPs raise alarm, demand hearings.

• Pending: Committee scrutiny before share transfer approval.

What to Watch

• Parliamentary hearings on due diligence and valuation.

• Possible share buyback proposal by EAPC or Treasury.

• Community consultations in Machakos, Kajiado counties.