It was supposed to be the final piece in a regional cement empire. Instead, the National Assembly has slammed the brakes on a controversial plan to sell a controlling slice of East African Portland Cement (EAPC) to a Tanzanian billionaire for what MPs are calling "a song."

The deal, which would have seen the Tanzanian conglomerate Amsons Group acquire a 29.2 percent stake from Swiss multinational Holcim, was halted late yesterday following a heated session by the Departmental Committee on Trade. Lawmakers argued that the transaction not only grossly undervalued one of Kenya’s oldest companies but also threatened to hand over strategic national assets—including thousands of acres of prime land in Mavoko—to foreign control at a discount that defies market logic.

The Math That Didn't Add Up

At the heart of the storm is a valuation gap that has raised eyebrows from the Nairobi Securities Exchange (NSE) to the corridors of power. The off-market deal was priced at KES 27.30 per share. Yet, on the open market, EAPC shares have been rallying, trading at approximately KES 58.50.

"Why are we selling our family silver for pennies?" posed Kajiado South MP Samuel Parashina, whose constituency houses much of the cement maker's operations. "To allow a foreign investor to buy a state-linked asset at half its market value is not just bad business; it is economic sabotage."

The transaction, valued at roughly $5.6 million (approx. KES 718 million), would have given the Amsons Group—which recently acquired Bamburi Cement—a dominant stranglehold on the Kenyan construction sector. Analysts note that controlling both Bamburi and a major stake in EAPC would effectively allow one player to dictate the price of every bag of cement from Mombasa to Malaba.

The Real Prize: Land, Not Just Clinker

While the cement business is lucrative, insiders believe the real battle is over EAPC’s balance sheet, specifically its land. The company holds over 16,000 acres in Athi River and Mavoko, a land bank valued at billions of shillings—far exceeding the operational value of the factory itself.

• The Fear: MPs warned that a foreign majority shareholder could strip these assets or leverage them for loans that do not benefit the Kenyan economy.
• The Precedent: The committee cited previous privatizations where public assets were sold cheaply, only for the new owners to flip the land for massive profits.
• The Alternative: The committee has recommended that EAPC use its own cash reserves to buy back the shares from Holcim, keeping the equity within the company and, by extension, under Kenyan oversight.

A "Strategic" Buyback

The Trade Committee’s report was unequivocal: EAPC is profitable enough to save itself. Following a rigorous restructuring process, the company has returned to profitability, making the need for a "strategic investor" at a discount price redundant.

"The company has the liquidity to buy back these shares," the report noted. "There is no justification for bringing in an external player who is a direct competitor, especially one who has already cornered a significant portion of the market through the Bamburi acquisition."

For the Amsons Group, led by tycoon Edha Nahdi, this represents a rare stumble in an otherwise aggressive expansion across East Africa. Having successfully navigated the Bamburi deal in late 2024, the group likely viewed EAPC as the natural next step to consolidate efficiency and pricing power.

However, for the Kenyan taxpayer, the halt comes as a relief. With the cost of construction materials already squeezing the average household, the prospect of a near-monopoly run from across the border was a pill too bitter to swallow. As the dust settles, the message from Parliament is clear: Kenya is open for business, but it is not for sale at a discount.