The Ministry of Investments, Trade and Industry has been put to task by a National Assembly Committee over the proposed sale of East African Portland Cement (EAPC) PLC shares by Holcim Limited to Kalahari Cement Ltd.

Members of the Trade, Industry and Cooperatives Committee, led by Chairperson Ikolomani MP Benard Shinali , met today with Industry Principal Secretary Dr. Juma Mukhwana, who gave a detailed explanation of the Government’s position on the planned sale of the shares.

In his submission on behalf of the Ministry, Dr. Mukhwana sought to assure the Committee that the interests of the public would be safeguarded if the transaction proceeds.

Earlier, Shinali and Vice Chairperson Aldai MP Marianne Kitany had led Committee members in expressing concerns about the proposed sale.

During the session, the Principal Secretary confirmed that the proposed deal involves Kalahari Cement acquiring 29.2 percent of EAPC’s authorized shares.

According to PS, the current ownership of EAPC includes the National Social Security Fund (27%), the National Treasury (25.3%), Cementia Holdings AG (14.6%), Associated International Cement Ltd (14.6%), Bamburi Cement Ltd (12.5%), and minority shareholders (6%).

Cementia Holdings AG and Associated International Cement Ltd are subsidiaries of the Holcim Group, which is closely linked to Bamburi Cement. If the transaction is completed, Kalahari Cement would hold a combined 41.7% stake in EAPC through its association with Bamburi.

“The deal will see Kalahari Group take a substantial stake in EAPC and effectively take control. As a Ministry, was due diligence conducted before the deal was initiated? asked the Committee Chairperson.

“Are the shares of Kenyan taxpayers in the company safe? What about the workers, are their jobs safe? ” posed Kitany.

The Ministry responded by stating that EAPC’s Board of Directors currently has six members, including two nominated by the Holcim Group. It is expected that the incoming shareholder will gain board representation after the transaction is finalized.

“While there are no shareholder agreements in place at the moment, the interests of the Government and minority shareholders are protected through board appointments, including the Chairman, who is appointed by the Government of Kenya,” said the Principal Secretary.

The Ministry further clarified that conducting due diligence between Holcim and Kalahari Cement falls outside its jurisdiction.

PS Mukhwana also assured the Committee that the interests of pensioners and taxpayers, particularly those under the National Social Security Fund, will continue to be protected.

Previous parliamentary session. PHOTO/ Parliament of Kenya X