Monopolies Commission Probes Bamburi Cement

Monopolies Commission Probes Bamburi Cement
Published: 28 February 2005

The Kenyan government is investigating a leading local cement manufacturer over alleged anti-competitive practices.  Monopolies and Prices Commissioner, Peter Njoroge, told reporters yesterday that he would make recommendations to the Finance Minister soon, following the investigations.  "We are investigating whether it is right for Bamburi to sit on the Boards of all cement companies in the country," Mr Njoroge said. The commissioner was speaking at a workshop on the Review of Kenya’s Competition Law and Policy at the Nairobi Safari Club, Nairobi. 

Bamburi has a substantial shareholding in Athi River Mining and East African Portland Cement. In Athi River Mining, Bamburi controls 18.15 per cent shares, having 17 million shares out of the total 93 million shares of the firm.  Bamburi’s majority shareholder, Lafarge owns 14 per cent shares at East African Portland, with Bamburi Cement International having 15 per cent and Bamburi Nominees 12.5 per cent. Mr Njoroge said the Finance minister can force Bamburi to sell all its shares in the two companies to the public if it is found to have erred.