Klahari Cement Ltd, a Tanzanian investor group, has been exempted from the requirement to make a mandatory takeover offer to all shareholders in its bid to acquire shares in East African Portland Cement PLC (EAPC).
Kalahari Cement Limited, incorporated in Kenya on 27th May 2025, had applied to the Capital Markets Authority (CMA) for an exemption from making a mandatory takeover offer as part of its proposed acquisition.
This application came after Kalahari Cement’s plan to acquire 13,144,442 ordinary shares from Associated International Cement Limited and 13,180,442 shares from Cementia Holding AG in East African Portland Cement PLC (EAPC).
CMA Approves Exemption
On August 5, 2025, the Capital Markets Authority approved Kalahari Cement’s exemption application, allowing the company to proceed with the acquisition without making a mandatory offer to all EAPC shareholders.
“On 5 August 2025, the Authority approved the Exemption Application pursuant to Regulation 5(2) of the Takeover Regulations as a private transaction under the Capital Markets Act, CAP 485A and the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2002,” read the notice in part.
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This approval classified the acquisition as a private transaction, ensuring regulatory compliance while enabling Kalahari Cement to complete the purchase efficiently.
Kalahari Acquisition
Kalahari Cement’s notice explained that the investment was meant to support EAPC’s growth over the long term, focusing on improving its infrastructure and boosting its operational capacity.
“Kalahari’s investment is designed to build long-term value for EAPC, through strengthening EAPC’s infrastructure and providing access to additional resources,” it stated.
The company further noted that the acquisition aims to enhance EAPC’s competitiveness and promote growth within Kenya’s cement sector.
“The Proposed Acquisition is strategically positioned to increase the capacity of EAPC as a competitive and sustainable cement industry investor,” the notice added.
Additionally, Kalahari Cement indicated that the move would lead to innovation, increase production, and enhance distribution capabilities.
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“This move is set to drive growth and strengthen cement production capabilities, infrastructure, and distribution channels, creating new opportunities for innovation and market expansion,” read the notice.
Kalahari Cement acquires 29% stake in East African Portland Cement
Earlier, on August 5, Kalahari Cement confirmed spending KSh 931 million (approximately US$5.57 million) to acquire a 29% stake in East African Portland Cement (EAPC) from Associated International Cement and Cementia Holding, making it one of the largest shareholders.
The company was to purchase a combined total of 26.3 million shares from the two sellers at KSh 35.1 per share (US$0.21/share), with the transaction subject to regulatory approval.
Kalahari Cement, incorporated in Kenya, is backed by Pacific Cement (90%) and Comercio Et Conseil (10%). It currently holds no direct stake in EAPC but is affiliated with Bamburi Cement, which owns a 12.5% stake in the company.
EAPC operates an integrated cement plant near Nairobi, producing cement for the local and regional market.
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