Strategic Acquisition Reshapes Market

Tanzanian industrial giant Amson Group has significantly tightened its grip on the Kenyan cement market by acquiring a 29.2% stake in East African Portland Cement (EAPC) for approximately Sh723.4 million ($5.6 million). The transaction, finalized on Tuesday, November 4, 2025, comes less than a year after Amson completed its full acquisition of Bamburi Cement, Kenya's largest cement producer, for Sh23.6 billion in December 2024.

The deal was executed through Amson's Kenyan-registered subsidiary, Kalahari Cement Limited. According to official statements, Kalahari purchased 26.3 million shares from the Swiss multinational Holcim, which held the stake through two investment vehicles, Associated International Cement Limited (AIC) and Cementia Holding AG. The share purchase agreement was signed on July 31, 2025, and has since received the necessary regulatory clearances.

Consolidated Power and Market Implications

This acquisition strategically elevates Amson Group to the position of the single largest shareholder in EAPC. By combining the newly acquired 29.2% with the 12.5% stake already owned by its subsidiary Bamburi Cement, Amson now wields an effective controlling interest of 41.75%. This move consolidates significant influence over two of Kenya's most prominent cement manufacturers within a single foreign-owned entity, a development poised to reshape the competitive landscape of the entire East African construction industry.

The other major shareholders in EAPC are the National Social Security Fund (NSSF) with 27% and the National Treasury holding 25.3%. Amson Group's Managing Director, Edha Nahdi, described the move as a “strategic investment” intended to create long-term value. “Our subsidiary Kalahari Cement is a committed and experienced strategic investor and will leverage its market positioning to provide capital and technical resources necessary to transform EAPC into one of Kenya's leading Cement manufacturers by volume and profitability,” Nahdi stated on Wednesday, November 12, 2025.

Regulatory Scrutiny and Pricing Controversy

The transaction has not been without controversy, drawing scrutiny from Kenyan lawmakers. The National Assembly's Committee on Trade, Industry, and Cooperatives launched a probe in September 2025, questioning the valuation of the deal. The shares were acquired at a price of Sh27.30 each, a figure significantly lower than EAPC's closing market price of Sh60.50 on the day before the announcement, raising concerns about potential undervaluation and the implications for public shareholders, including the Treasury and NSSF.

Despite the parliamentary inquiry, the deal received approvals from Kenyan regulators. The Capital Markets Authority (CMA) granted Kalahari Cement an exemption from mandatory takeover rules on August 5, 2025, classifying the deal as a private transaction. The Competition Authority of Kenya (CAK) also reviewed the acquisition and, according to statements made before the parliamentary committee in October 2025, concluded that the 41.7% effective shareholding does not constitute a direct acquisition of control, and therefore did not classify it as a merger requiring its full approval under the Competition Act.

Amsons' Regional Ambitions

The back-to-back acquisitions of Kenya's top cement firms underscore Amson Group's aggressive expansion strategy in East Africa. The family-owned Tanzanian conglomerate, founded in 2006, has interests spanning manufacturing, oil and gas, logistics, and real estate across Tanzania, Zambia, Malawi, and the DRC. The group has publicly stated its ambition to become one of the largest cement manufacturers in Kenya and Tanzania by 2030.

Following the Bamburi takeover, Amson's CEO Edha Nahdi met with Kenyan President William Ruto in April 2025 to discuss a further $380 million investment into expanding Bamburi's operations, including modernizing its plants and developing a new clinker facility in Kwale County. These investments signal a long-term commitment to the Kenyan market, potentially leading to increased production capacity and innovation but also raising questions about market dominance and the future of local ownership in a critical sector for national development.