Bamburi Cement Co Ltd paid its former controlling shareholder Lafarge (part of Holcim) a total of KES27.2bn (US$209m) for technical services in the 25 years to December 2024, representing one of the largest transactions between a Kenyan firm and its multinational parent.
Bamburi, which was acquired by Tanzania’s Amsons Group, after Holcim divested its holding late last year, is expected to terminate or renegotiate many of its long-running contacts with suppliers. It had paid Lafarge KES469m in the prior year under exisitng arrangements.
“The company received technical assistance from the former majority shareholder, Lafarge SA, which was paid for under a five-year agreement,” Bamburi stated in its annual report for 2024 when it paid KES714m for these services.
The biggest payout to Lafarge –for services such as developing new building products— was in 2008 when it received KES5.2bn from the Kenyan subsidiary.
Bamburi said in the report that intercompany transactions are transparent and reflect how independent parties would trade as they act in their own self-interest.
