Kalahari Cement has received Capital Markets Authority (CMA) approval to acquire Sh24.3 million East African Portland Cement (EAPC) shares from NSSF without making a mandatory takeover offer.
The strategic move, announced on December 4, 2025, is subject to approvals from the Competition Authority of Kenya and the Ministry of Mining, Blue Economy, and Maritime Affairs.
According to the company, the initial Notice of Intention, published on November 26, 2025, detailed Kalahari’s plan to acquire the shares and indicated its intention to seek CMA’s exemption from the mandatory takeover requirement.
The Exemption Application was submitted pursuant to Regulation 5 of the Capital Markets (Takeovers and Mergers) Regulations, 2002.
In a formal announcement, Kalahari confirmed that on November 28, 2025, CMA approved the Exemption Application under Regulation 5(2)(a), noting that the proposed acquisition qualifies as a strategic investment in a listed company.
“The Proposed Acquisition amounts to a strategic investment in a listed company, including management or other technical support relevant to the company's business,” the announcement stated.
The Authority also approved the acquisition as a private transaction in accordance with the Capital Markets Act, CAP 485, and the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023.
While the CMA approval provides Kalahari with a green light to proceed, the exemption is conditional.
The company must obtain the necessary clearance from the Competition Authority of Kenya, in line with Part D of the Competition Act (Chapter 504).
Additionally, Kalahari is required to notify and secure approval of any material change from the Cabinet Secretary of the Ministry of Mining, Blue Economy, and Maritime Affairs, pursuant to Sections 51(6) and (7) of the Mining Act (Chapter 306).
The board, through its statement dated December 4, 2025, reaffirmed the strategic intent of the acquisition.
“We hereby announce that the Authority approved the Exemption Application as a strategic investment, subject to the requisite regulatory approvals,” said Hasen, speaking on behalf of Kalahari Cement’s board of directors.
The acquisition represents a significant step in Kalahari’s growth strategy, as it increases its stake in EAPC while leveraging the company’s expertise to provide management or technical support where relevant.
The move aligns with the company’s long-term objectives of strengthening its position in Kenya’s cement sector.
This development marks a milestone for Kalahari Cement and demonstrates the company’s compliance with Kenya’s Capital Markets regulations while strategically expanding its influence in the local construction materials industry.
With the CMA exemption in place, Kalahari can now focus on securing the additional regulatory approvals necessary to complete the transaction.
Kalahari’s acquisition strategy reaffirms the importance of strategic investments in listed companies, particularly in sectors where management support and operational expertise can add value.
The CMA’s approval confirms that the transaction is recognized as a strategic investment rather than a standard market acquisition, exempting Kalahari from offering a mandatory takeover to all EAPC shareholders.
Once regulatory conditions are fulfilled, the transaction is expected to strengthen Kalahari’s market presence and potentially enhance its operational capabilities in cement production.
The acquisition also highlights the growing trend of private strategic investments in Kenya’s listed companies as firms seek to consolidate stakes while navigating regulatory frameworks efficiently.
