Edha Nahdi acquires stake in East African Portland for $12M

Tanzanian tycoon Edha Nahdi has struck a deal to buy the National Social Security Fund’s 27% stake in East African Portland Cement for Sh1.6 billion, cementing his push for control of the listed manufacturer.

Nahdi is acting through Kalahari Cement, a Kenyan-registered investment vehicle tied to Tanzania’s Amsons Group. The share purchase agreement covers about 24 million ordinary shares at Sh66 apiece and is subject to regulatory approvals.

Kalahari Cement only recently burst onto Kenya’s cement scene, buying a 29.2% stake in East African Portland from Holcim-linked investors earlier this month. Bamburi Cement, which is also under the Amsons umbrella, holds a further 12.5% of Portland. Once the NSSF deal closes, the Tanzanian group will effectively control close to two-thirds of the Athi River-based firm.

The Nairobi Securities Exchange halted trading in East African Portland shares after the deal surfaced, citing “unverified market information” about a major share transfer. Before the suspension, the stock had jumped to Sh66 as investors reacted to speculation of a transaction at a hefty premium to recent prices.

For NSSF, the sale is a chance to unlock value from a long-held strategic stake in a company that has spent years wrestling with debt, ageing equipment and governance wrangles. For Nahdi, it is another step in a regional expansion drive that has already seen Amsons Group snap up assets in energy, logistics and manufacturing across East Africa.

East African Portland, founded in 1933, is one of Kenya’s oldest cement producers but has struggled to keep pace with newer rivals. The company only recently returned to profitability after nearly a decade of losses, helped by restructuring efforts and land sales. That turnaround has made it a more attractive target for deep-pocketed investors looking to ride Kenya’s infrastructure and housing demand.

Kalahari has indicated it does not plan a full takeover bid, and previously received a waiver from regulators on making a mandatory offer to minority shareholders after its earlier stake purchase. Even so, the growing Tanzanian presence on Portland’s share register is likely to raise fresh questions about competition, pricing power and the future direction of Kenya’s cement industry.

If regulators sign off on the deal, Nahdi will emerge as one of the most influential figures in the region’s cement business — and NSSF will walk away with a multibillion-shilling payday from a once-troubled holding.