Benson Ndeta, a prominent figure in Kenya’s construction industry, is making headlines with his ambitious move to acquire Bamburi Cement in a deal valued at KSh 25.4 billion.
Ndeta, the Executive Chairman of Savannah Clinker Limited (SCL), has outbid Tanzanian conglomerate Amsons Group in a fierce competition for control of one of Kenya’s largest cement manufacturers.
Ndeta’s offer surpasses Amsons’ earlier bid of KSh 23 billion, positioning SCL to acquire up to 100% of Bamburi’s issued ordinary shares at KSh 70 per share.
The deal is set to shake up the construction sector, as SCL aims to secure 60% shareholder approval, effectively challenging Amsons’ previous agreement with Holcim, the Swiss multinational holding a majority stake in Bamburi.
This move is not Ndeta’s first foray into the cement industry. With over two decades of experience in the local business and construction sectors, he previously served as the non-executive chairperson of East African Portland Cement and held a majority stake in Savannah Cement until 2022.
SCL’s bid offers more than just financial appeal. As a locally incorporated firm, Ndeta’s offer comes with the promise of significant tax benefits for the Kenyan government.
Unlike foreign entities, dividends from SCL’s ownership of Bamburi would remain in Kenya, boosting the local economy. Additionally, Ndeta has pledged to float up to 40% of SCL’s shares to institutional and local investors, further strengthening the company’s ties to the Kenyan market.
Established in 2019, SCL is a growing player in the construction sector, involved in mining, manufacturing, processing, and packaging cement solutions.
The company is also developing a limestone extraction and clinker processing plant in Kitui County, highlighting its commitment to expanding Kenya’s industrial base.
