Kenyan lawmakers are voicing strong concerns over a proposed acquisition of shares in East Africa Portland Cement (EAPC) by Tanzania-based Kalahari Cement, warning that the deal could undermine public interest if pushed through without transparency.
The Parliamentary Committee on Trade, Industry and Cooperatives said on September 16 that it may recommend halting the transaction unless full disclosure and stakeholder participation are ensured. The proposed sale involves a 29.2 per cent stake held by Swiss-owned Cementia Holdings AG and Associated International Cement Ltd.
Committee chair Benard Shinali (Ikolomani) and vice chair Marianne Kitany (Aldai) criticised the process, noting that neither EAPC’s management nor employees had been consulted, despite the government holding a controlling 52.3 per cent stake in the firm. “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,” Kitany said.
If completed, the deal would raise Kalahari Cement’s stake in EAPC to 41.7 per cent, prompting fears of market concentration and potential conflicts of interest in the cement sector. MPs also warned of risks to jobs and corporate governance, after EAPC’s leadership confirmed it had been excluded from negotiations.
