The National Assembly’s Committee on Trade, Industry and Cooperatives has raised fresh concerns over the proposed sale of a 29.2% stake in East African Portland Cement (EAPC) to Kalahari Cement Limited.

The committee, chaired by Ikolomani MP Benard Shinali, held a session with key stakeholders to examine the proposed sale of 29.2% of EAPC shares to a private company.

Those who appeared before the committee included the EAPC Board, led by Chairperson Brig. (Rtd) Richard Mbithi, Managing Director Mohamed Adan, and representatives from the National Treasury, the Attorney General’s Office, and the Competition Authority of Kenya.

Secrecy in Share Sale Without Consultation

During the session, Benard Shinali and Vice Chairperson, who is also an Aldai MP Marianne Kitany led lawmakers in questioning stakeholders on why the transaction appeared to have been conducted in secrecy, noting that neither the company’s management nor employees were consulted.

The proposed sale involves 29.2% of EAPC’s authorised shares, currently held by Cementia Holdings AG and Associated International Cement Ltd, both subsidiaries of the Holcim Group, which is closely linked to Bamburi Cement.

If completed, the transaction would give Kalahari Cement a combined 41.7% stake in EAPC through its association with Bamburi Cement.

The Attorney General’s Office informed the committee that it was not consulted on the transaction and only became aware of the planned sale through a public advertisement.

This raised legal concerns, especially regarding the compatibility of the Capital Markets Act with the Companies Act in off-market share transfers.

MPs and Treasury Officials Clashes Over the Role of Govt

Treasury officials, however, maintained that the government’s 25% shareholding, along with the 27% held by the National Social Security Fund (NSSF), remains unchanged.

Treasury Director General for Investment and Portfolio Management, Lawrence Kibet, said the sale involved private shareholders and did not affect public ownership.

Despite this explanation, MPs questioned why the Treasury was defending a transaction in which it had no direct role.

The committee also criticised the proposed price of Sh27.30 per share, which is less than half the current market value on the Nairobi Securities Exchange, estimated at between Sh58 and Sh64.

EAPC Board Issues Warning

EAPC board members warned that the sale could significantly alter the company’s ownership structure.

They argued that the new shareholder, through its control of both Kalahari and Bamburi, would gain significant influence over EAPC’s governance.

The board also raised concerns that the sale undervalues the company, which owns large parcels of land and other strategic assets. It warned that this could diminish the influence of public shareholders and shift control to a private entity.

Shinali stressed that the committee’s role is to protect public interest in strategic national assets.

“We must ensure that such transactions are transparent, fair, and in the best interest of all shareholders, including the government and the people of Kenya,” said the Committee chairperson.

The committee concluded the session by demanding clearer information on the transaction’s legality, valuation process, and broader impact on EAPC’s structure.

Lawmakers also urged for thorough scrutiny of future transactions involving key national assets, calling for greater transparency and legal due diligence.

Committee at Bunge Towers to Question about sale of EAPC shares to Private Firms on September 25, 2025. PHOTO/ Parliament Kenya FB