Members of Parliament, MPs have raised concerns over the planned sale of a significant stake in East Africa Portland Cement (EAPC) to Kalahari Cement Limited.
The MPs under Committee on Trade, Industry and Cooperatives chaired by Benard Shinali (Ikolomani) said the transaction has been shrouded in secrecy, with neither the management nor employees of the company consulted.
The Committee had a meeting with EAPC Managing Director Mohamed Adan whereby the lawmakers learned that the sale involves 29.2% of the company’s authorised shares currently held by Cementia Holdings AG and Associated International Cement Ltd,both subsidiaries of Holcim Group, which has close ties with Bamburi Cement.
If concluded, the deal would give Kalahari Cement a combined 41.7% stake through its association with Bamburi.
The committee expressed concern that the sale was proceeding without public participation, despite the government being the majority shareholder through the National Social Security Fund (27%) and the National Treasury (25.3%). In total, state-owned shares amount to 52.3%.
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“This is not just any private company. Kenyans, through their pensions and taxes, own a majority of this firm. Due diligence must be done, and employees and local communities must be involved,”said Kitany.
The MD confirmed that neither management nor staff had been engaged in the process, warning that uncertainty had sparked fears of job losses.
“Employees are understandably jittery, because livelihoods are at stake. Human capital is key to our success, and any change of ownership will affect them,” he told MPs.
The MPs stated that where there is no public participation, parliament must exercise its oversight duty since the deal touches on taxpayers, employees, and local communities in quarrying areas.
The lawmakers also questioned why the appointment of the board chair appeared to rely on government nomination rather than the company’s governing documents.
Adan admitted that EAPC’s Articles of Association, last updated in 1933, were outdated and inconsistent with modern laws, and pledged to align them with the Companies Act and the State Corporations Act.
By Obegi Malack
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