Tanzanian Tycoon Snaps Up Cement Shares
Tanzanian billionaire Edhah Abdallah Munif, through his company Kalahari Cement Limited, has entered a binding agreement to acquire 24.3 million shares in East African Portland Cement Plc (EAPC), valued at Ksh 1.6 billion.
This deal will give him a significant 27 percent equity stake in the Nairobi Securities Exchange-listed cement manufacturer, pending approvals from relevant Kenyan regulatory bodies.
This move follows his recent acquisition of a 29.2% stake in EAPC from other shareholders, further consolidating his influence in Kenya’s cement market.
Expanding Cement Interests and Market Influence
Munif’s investment strategy in Kenya manifests through multiple vehicles, including Kalahari Cement and Amsons Industries Kenya.
In late 2024, his group fully acquired Bamburi Cement Plc, the country’s largest cement producer at the time, for approximately KSh 23.6 billion.
This transaction marked a major milestone in expanding his cement industry presence, positioning him as a major player in East Africa’s manufacturing sector.
The planned acquisition of Portland Cement shares builds on this momentum, consolidating his control of multiple key industry players.
Strategic Objectives and Long-Term Vision
According to Amsons Group’s Managing Director Edha Nahdi, the acquisition is aimed at long-term value creation by improving EAPC’s infrastructure and ensuring resource availability.
The vision emphasizes a shared prosperity model incorporating staff, trade partners, and government agencies, advocating sustainable growth in Kenya’s construction sector.
Notably, Kalahari Cement confirms no intention to make a full takeover offer or delist EAPC, focusing instead on strategic influence and collaboration.
“As I have mentioned previously, Kalahari Cement will assist EAPC in achieving its strategic objectives through a shared prosperity model with all stakeholders, including staff, trade partners, and Kenyan government agencies. At Amsons Group, we will not spare any resources, financial or otherwise, in our partnership with all EAPC stakeholders,” he stressed.
Product Portfolio and Innovation
East African Portland Cement offers a range of products including Blue Triangle Cement, the oldest brand in the market, and Green Triangle Cement, a more environmentally sustainable option with lower energy consumption and less clinker.
Other products in its portfolio include Falcon Cabro, Olympia Cabro, Tri-Hex Cabro, Cosmic Cabro, and Brick (Quad) Cabro.
Their product lineup also features advanced cobra blocks designed to meet evolving construction demands.
These diverse offerings position EAPC competitively within Kenya’s growing infrastructure landscape, aligning well with Kalahari Cement’s expansion and modernization plans.
Regulatory and Market Considerations
The acquisition awaits approval from Kenya’s Capital Markets Authority, the Nairobi Securities Exchange, the Competition Authority of Kenya, and the Ministry of Mining, Blue Economy, and Maritime Affairs.
This ensures compliance with market and competition laws, signaling the importance of transparency and regulatory oversight in major sector investments.
The deal also follows parliamentary scrutiny on such transactions, reflecting Kenya’s commitment to safeguarding national industrial assets.
This strategic acquisition by Tanzanian tycoon Edhah Abdallah Munif marks a significant development in East Africa’s cement industry, highlighting cross-border investment flows and the dynamic nature of regional industrial consolidation.
It underscores growing investor confidence in Kenya’s manufacturing potential and the vital role of infrastructure development in economic growth.
“Kalahari does not intend to delist EAPC from the NSE following the completion of the proposed transaction. As a long-term strategic investor, Kalahari is committed to assisting EAPC in achieving its strategic objectives while also strengthening the capital markets regime, which is vital for Kenya’s economic prosperity,” Nahdi reiterated.