The Consumer Federation of Kenya (COFEK) has 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, which is owned by Tanzanian Tycoon Edhah Abdallah Munif, citing alleged violations of constitutional rights and major regulatory gaps.
Kalahari Cement is acquiring a 27 percent stake in East African Portland Cement (EAPC) from the National Social Security Fund (NSSF) for KSh1.6 billion.
In a petition filed at the Milimani Constitutional and Human Rights Division, COFEK accuses 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.
COFEK Files Petition to Stop Sale of EAPC Shares to Tanzanian Tycoon
COFEK argues 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 petitioner argues 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 said in court documents.
Also Read: Tanzanian Tycoon Moves to Acquire 24.3M Shares in Portland Cement
Further, the petitioner claims that the transaction threatens the constitutional rights of Kenyans under Articles 35, 40, 47, and 50 relating to access to information, property rights, fair administrative action, and fair hearing.
Orders the Consumer Body is Seeking from the Court
The consumer body is therefore seeking a series of orders, including:
- A conservatory order restraining CMA, CAK, NSSF, Kalahari Cement, and East African Portland Cement from transferring, consolidating, or exercising voting rights linked to the disputed shares.
- An order compelling the Capital Markets Authority to conduct a full compliance inquiry into the transaction.
- An order directing the Competition Authority to carry out a merger and competition assessment to determine whether the acquisition could create dominance, monopoly risks, or anti-competitive conduct.
- A temporary stay of all decisions, approvals, or actions taken by the respondents in relation to the share transaction, pending the hearing and determination of the petition.
The petition lists six respondents: CMA, CAK, NSSF, Kalahari Cement Limited, East African Portland Cement PLC, and the Attorney General.
COFEK insists that the acquisition must be subjected to thorough public scrutiny and regulatory oversight, arguing that the stakes are too high for consumers and the cement industry if the process proceeds without accountability.
Also Read: Kalahari Cement Completes Acquisition of Shares in East African Portland
The petition is now awaiting directions from the High Court.
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.
If the deal goes through, Kalahari and its parent company, Amsons Group, will have a controlling stake in EAPC once regulatory approvals are in place.
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