NAIROBI, Kenya, Oct 3 – The Competition Authority of Kenya (CAK) has approved Kalahari Holdings’ planned acquisition of Holcim’s 41.7 per cent stake in the East African Portland Cement Company (EAPCC), ruling that the transaction does not constitute a change in control.
Appearing before the National Assembly’s Trade and Investment Committee, Joel Omari, Director of Competition and Consumer Protection at CAK, told lawmakers that the deal had been thoroughly assessed to ensure compliance with competition law and consumer protection standards.
“The 41.7 per cent shareholding will not result in acquisition of control and additionally, the shares do not confer any veto rights that would amount to any indirect control; therefore, the proposed transaction in our view does not amount to a merger as provided for under Section 41. This is due to the fact that there is no change in control of the undertaking,” said Omari.
He explained that the Authority reviewed the transaction with a focus on potential risks to market competition, including monopolistic behavior, shifts in market share, and anti-competitive practices. The evaluation also considered demand and supply dynamics in Kenya’s cement industry, as well as the implications for consumer pricing, innovation, and fairness in the market.
While the Authority raised no objections, MPs on the committee expressed concern over the broader consequences of the deal.
Aldai MP and Committee Vice Chair Mary Anne Keitany pressed for assurances on job security at the Athi River-based cement maker.
“We need clarity on the fate of employees after this takeover. Our worry is that without safeguards, the deal may open the door to retrenchments and weaken EAPCC’s competitiveness,” she said.
Taveta MP John Bwire added that the government should not simply rely on technical approvals but also consider public interest in transactions involving strategic national industries.
“We need a comprehensive, data-driven analysis of market share among cement companies in Kenya. Without it, Parliament risks endorsing deals that may, in the long term, hurt competition and disadvantage ordinary Kenyans,” Bwire said.
