In a move that significantly consolidates East Africa's cement industry, the Capital Markets Authority (CMA) has exempted Kalahari Cement Limited from a mandatory takeover offer, clearing a critical hurdle for its acquisition of Holcim Ltd.’s 29.2% stake in East African Portland Cement Plc (EAPC).
- •The regulatory waiver, granted earlier this month, paves the way for Tanzanian industrialist Ebrahim Abdullah Munif to amass a combined controlling interest of over 41% in the Nairobi-based EAPC, marking a seismic shift in the regional construction materials landscape.
- •The CMA’s approval, issued under the Capital Markets (Takeovers and Mergers) Regulations, permits the transaction to proceed as a private placement.
- •Crucially, it relieves Kalahari Cement of the obligation to extend a buyout offer to EAPC’s minority shareholders—a requirement typically triggered upon crossing certain ownership thresholds.
In its decision, the regulator characterized Kalahari as a "strategic investor," citing the firm's "long-term operational and technical alignment" with EAPC’s objectives. Kalahari has stated the investment is aimed at bolstering EAPC’s production infrastructure, expanding its capacity, and injecting new capital and technical expertise.
The Munif Empire: A Multi-Layered Ascent
The deal is the latest strategic maneuver by Mr. Munif, who has quietly built one of East Africa's most formidable industrial networks. Through a complex, multi-jurisdictional corporate structure, he has methodically assembled a cement empire spanning the region.
Kalahari Cement, incorporated in Kenya just this past May, is ultimately owned by Munif’s Tanzania-based conglomerate, Amsons Group. This is the same corporate vehicle used in his recent acquisition of a 96% stake in Bamburi Cement Plc, Kenya's largest cement manufacturer. Critically, Bamburi already holds a 12.5 percent shareholding in EAPC.
With the acquisition of Holcim’s 29.2 percent stake, entities linked to Munif will now control a combined 41.7 percent of EAPC, granting them dominant influence over the company while maintaining legal separation between the entities.
A Regional Powerhouse Takes Shape
Mr. Munif’s holdings extend far beyond cement. Through Amsons Industries, he controls a diversified portfolio that includes Camel Oil (fuel distribution), Amsons Haulage (logistics), and interests in agribusiness and real estate, operating across East Africa and the Middle East.
The consolidation of Bamburi and EAPC under his effective control creates a regional cement powerhouse with significant market leverage. Analysts suggest this could lead to operational synergies, but also raises questions about market concentration in Kenya's construction sector.
With regulatory approval secured, the focus now shifts to the integration of EAPC into Munif’s expanding industrial fold and the strategic direction the new controlling shareholder will set for one of Kenya's oldest cement manufacturers.
