A company controlled by Tanzanian industrialist Edha Nahdi has executed a binding share purchase agreement to acquire the National Social Security Fund's (NSSF) entire 27% holding in East African Portland Cement PLC (EAPC) for Sh1.6 billion, a move that cements the tycoon's growing dominance in the regional cement market. The transaction, announced on Wednesday, November 26, 2025, will see Kalahari Cement Limited purchase 24.3 million ordinary shares from the Kenyan pension fund at a price of Sh66 per share.

This acquisition significantly increases the influence of Nahdi's Amsons Group in Kenya's construction sector. Kalahari Cement, a subsidiary of the pan-African conglomerate, recently acquired a 29.2% stake in EAPC from Associated International Cement Limited and Cementia Holding AG. Additionally, Bamburi Cement PLC, which is also majority-owned by Amsons Group, holds a 12.5% stake in EAPC. Upon completion of the NSSF deal, which is subject to regulatory approvals, Nahdi's entities will command an effective controlling stake of 68.7% in the Nairobi Securities Exchange (NSE)-listed cement manufacturer.

Strategic Consolidation in a Competitive Market

The deal marks a significant strategic consolidation in East Africa's highly competitive cement industry. Amsons Group Managing Director Edha Nahdi described the move as a long-term strategic investment aimed at transforming EAPC. In a statement released on November 26, 2025, Nahdi confirmed Kalahari Cement will provide capital and technical resources to strengthen EAPC's infrastructure and boost profitability. "Kalahari is committed to assisting EAPC in achieving its strategic objectives through a shared prosperity model with all stakeholders," Nahdi stated, emphasizing plans to build long-term value.

Despite acquiring a controlling stake, Nahdi has indicated that Kalahari Cement does not intend to make a mandatory takeover offer for all of EAPC's voting shares and will seek an exemption from the Capital Markets Authority (CMA). The company has also affirmed its commitment to keeping EAPC listed on the NSE, a move aimed at deepening Kenya's capital markets.

The transaction follows a period of financial difficulty for EAPC. The company reported a loss before tax of KES 1.35 billion for the fiscal year ending June 30, 2023, a steep decline from a pre-tax profit of KES 529.20 million the previous year. The losses were attributed to high input and energy costs, as well as foreign exchange pressures. However, the company has shown signs of a turnaround, with revenue growing 11% in the year ended June 30, 2024, and the board recommending a dividend payment for the first time in years. EAPC's management has been implementing a five-year strategic plan focused on returning the company to sustainable profitability.

Implications for Kenya and East Africa

This acquisition underscores a broader trend of Tanzanian investment flowing into Kenya. Edha Nahdi, through Amsons Group, has rapidly become a formidable player in the region, having also completed the full acquisition of Bamburi Cement in December 2024 for Sh23.6 billion. His investments span multiple sectors, including oil and gas, real estate, and logistics across several African nations. The consolidation of significant stakes in two of Kenya's major cement producers gives Nahdi considerable influence over a combined 31% of the country's cement production capacity.

The deal has not been without scrutiny. Earlier in 2025, a parliamentary committee raised concerns over a previous EAPC share sale to Kalahari, citing a lack of transparency and the potential impact on the government's 52.3% stake held via NSSF and the National Treasury. The Attorney-General was tasked with reviewing the terms to protect public interest and the rights of existing shareholders. The current sale of the NSSF stake, however, appears to be proceeding with the fund's consent as a willing seller.

The transaction is poised to reshape the competitive landscape of the East African cement market, which has seen intense rivalry and price wars in recent years. With the backing of Amsons Group, EAPC is expected to enhance its operational capacity and challenge other major players like National Cement and Mombasa Cement. The investment comes as Kenya's construction industry is projected to grow, driven by government initiatives like the affordable housing program and other large-scale infrastructure projects.