The Competition Authority of Kenya (CAK) has ordered that all 924 employees be retained for 18 months following its approval of Kalahari Cement Limited’s acquisition of 27% of the ordinary shares owned by the National Social Security Fund (NSSF) in East Africa Portland Cement PLC (EAPC).
In a notice, CAK Director General David Kemei stated that the transaction is conditional on retaining the current employees of both EAPC and NSSF for the specified period.
“Pursuant to the provisions of section 46 (6) of the Competition Act, Cap 504, it is notified for general information that all current employees of the Acquirer and the Target, being 383 and 541 respectively, shall be retained for 18 months following completion of the transaction,” the statement read.
The acquisition of NSSF shares, which follows Kalahari’s previous 29.2 percent purchase from other shareholders, will result in Kalahari Cement and its affiliates holding an effective 68.7 percent controlling stake in EAPC.
Kalahari and its parent company, Amsons Group, will hold a controlling stake in EAPC shares.
Reasons Why EAPC Sold Shares to Kalahari Cement Ltd
EAPC’s decision to sell shares to Kalahari Cement Ltd is part of a broader effort to revive and modernize the company after years of financial and operational uncertainty.
By partnering with Kalahari Cement, EAPC is expected to significantly expand its market share, contribute to large-scale infrastructure projects across the country, and create additional employment opportunities.
Also Read: Portland Cement to Receive Ksh25.8 Billion Investment After Kalahari Acquisition
The Kalahari Cement, through its parent company Amsons Group, committed over $200 million (Ksh 25.8 billion) to a turnaround programme aimed at stabilizing operations, increasing production efficiency, and restoring employee confidence.
The investment included the construction of a turnkey clinkerisation plant and aligns with Kenya’s infrastructure expansion agenda, including roads, railways, ports, airports, and energy projects.
COFEK Challenges EAPC Share Sale
The Consumer Federation of Kenya (COFEK) previously moved to the High Court seeking urgent conservatory orders to stop the ongoing acquisition of shares in East African Portland Cement (EAPC) PLC by Kalahari Cement Limited, citing alleged violations of constitutional rights and major regulatory gaps.
Also Read: Tanzanian Tycoon Seals New Ksh 77.7 Billion Deal After Acquiring EAPC and Bamburi Cement
In a petition filed at the Milimani Constitutional and Human Rights Division, COFEK accused the Capital Markets Authority (CMA), the Competition Authority of Kenya (CAK), the National Social Security Fund (NSSF), and other respondents of failing to ensure transparency, due diligence, and regulatory compliance in the high-stakes transaction.
Additionally, COFEK argued that the acquisition, carried out through the purchase of government-owned and NSSF shares, raises concerns over consumer protection, market dominance, and the legality of the processes used.
The lobby group added that the transaction would result in effective foreign control or majority influence over EAPC, a strategic Kenyan cement manufacturer with a history of State ownership and national economic importance.
“Unless this Honourable Court intervenes urgently, the sale and transfer of NSSF shares to Kalahari Cement Limited may be completed imminently, resulting in irreversible consolidation of ownership and control, loss of public leverage, and rendering the present petition academic and nugatory,” the lobby group stated in court documents.
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