One year after the High Court approved the appointment of an administrator to recover Savannah Cement’s defaulted debt, the failed cement maker’s administrator has invited expressions of interests in its assets.
- •The Expressions of Interest (EOIs) will be submitted between the date the announcement was published (29th July) and 16th August at 4pm.
- •Between August and September this year, various proposals shall be evaluated and shortlisted buyers taken on site visits.
- •After a final evaluation of bids on 25th October this year, the administrator has slated 31st December this year as the final day for asset sale.
“EOI should clearly be marked ‘Expression of Interest – For purchase of the business and assets of Savannah Cement Limited (Under Administration, In Receivership)’ prepared in English and submitted in sealed envelopes presented in three hardcopies, one of which is an original, should be delivered and addressed to Peter Kahi, the administrator,” said the notice.
Interested buyers are expected to provide details of their business and will provide proof of their financial and technical capacity to improve Savannah Cement’s assets. Moreover, companies intending to buy the assets will also be assessed for bankruptcy.
How Savannah Fell
Savannah Cement was founded in 2012, churning out 1.5 million tonnes yearly. The company commissioned a second mill in 2020, which helped to ramp up production to 2.4 million tonnes. However, after protracted ownership wrangles, the company found itself on the mix in 2022 after it was unable to repay KSh 10 billion loans owed to KCB and ABSA bank.
The Supreme Court had issued a temporary reprieve to Savannah Cement in late 2022, barring KCB and ABSA bank from seizing its assets – which included prime land and expensive machinery. The company asked for more time to repay the loans as they still had supply contracts with the government.
However, the temporary order was short-lived and Justice Alfred Mabeya delivered a ruling in May last year, giving a nod to both banks to appoint an administrator who will restructure the business to recover the debts.
Before this collapse, Savannah Cement’s products were used in a variety of infrastructural projects such as SGR phase I and II, Kibwezi-Mutomo-Kitui road, UoN Towers, Kipeto Wind Power Station, Thiba Dam, Thwake Dam, and the Nairobi Southern, Eastern, and Western Bypasses.
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