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EAPC Sale of 27% Stake to Kalahari Cement Receives Regulatory Approval

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East African Portland Cement (EAPC)
East African Portland Cement (EAPC)
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EAPC (East African Portland Cement Company) 27% shareholding previously owned by the National Social Security Fund (NSSF) and sold to Kalahari Cement Limited has received approval from the Competition Authority of Kenya (CAK).

As part of the approval, Kalahari is required to retain all 383 of its existing staff and all 541 EAPCC employees for a minimum of 18 months following completion of the transaction.

What this means for EAPC

According to investment consultants, this approval removes a long-standing overhang around EAPC’s ownership structure and strategic direction.

For investors, regulatory clarity is often the first step toward restoring confidence in companies that have faced prolonged uncertainty.

The employment retention condition further signals regulatory intent to protect operational continuity and social stability, which reduces execution risk in the near term.

CAK’s approval provides institutional validation of the transaction. Regulatory sign-off reassures investors that the deal has passed competition, governance, and public-interest scrutiny—key for rebuilding trust around the future of EAPC.

A clearer shareholding structure enables more decisive strategic planning, board alignment, and capital allocation. For the market, this reduces speculation and improves the quality of forward-looking expectations.

The 18-month staff retention requirement stabilizes operations during the transition period. This lowers short-term disruption risk, supports production continuity, and protects institutional knowledge—factors that matter when assessing operational performance and earnings visibility.

While structural and operational challenges may still exist, clarity is a prerequisite for value discovery. This approval marks a meaningful step toward restoring order, confidence, and predictability around the listed cement maker—elements the market typically rewards over time as fundamentals reassert themselves.

Investors continue to monitor post-transaction developments, governance changes, and operational performance for signals of sustained recovery at the firm.

EAPC share price is currently trading at around KSh 83.25 and KSh 84.25 with a 52 week range of KSh 26.40 and KSh 101.00. The counter has recorded a 188.79% one-year increase in its share price.

ALSO READ: Tanzanian Tycoon Edha Munif Hits Speed Bumps in Quest For Kenya’s Cement Business

Written by
JACKSON OKOTH

Jackson Okoth Writes for Business Today. He can be reached on email at [email protected]

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