Kenya’s Parliament has temporarily put brakes on plans by a foreign tycoon Edha Abdallah Munif, to acquire 29.2% stake in listed East African Portland Cement Company (EAPCC), through Kalahari Cement.

The company associated with Munif received a nod from Capital Markets Authority (CMA) to buy EAPCC stakes from UK-based Associated International Cement Ltd (14.6%) and Swiss-owned Cementia Holding AG (13.6 %).

Kenyan lawmakers argue that the bid to acquire a 29.2% stake in EAPCC at a heavily discounted price, pegged at KSh 27.30 undervalues the company and risks placing a strategic asset under foreign control. The price of EAPCC at the Nairobi Securities Exchange (NSE) is KSh 58.50, which is more than double the price for which Munif is buying.

Parliament has advised EAPCC to consider a buyback or seek other investors to protect shareholders’ value. If approved, this acquisition deal will push up Munif’s overall stake in EAPCC to 41.75%, making him the single largest shareholder through his Amsons Group.

There are fears that the planned acquisition could significantly alter the ownership dynamics at EAPCC, giving Munif the upper hand in deciding what to do with the cement maker. Currently, the other major shareholders at EAPCC are GOK (25.3%) and NSSF with 27% stake.

Munif’s grip could affect the firm’s commitment to local owners and interests including an erosion of shareholder wealth held by EAPCC at the Nairobi Securities Exchange (NSE). Investment insiders warn that acquisition of controlling stake in EAPCC by Munif could create monopolistic tendencies, impact on local shareholders and the cement market landscape.

Munif acquired 95% of Bamburi Cement from Holcim in late 2024. EAPCC began the year with a share price of KSh 30.60 and has since gained 85.5% on that price, placing it as one of the best performing stocks at the NSE.