EAPC Stake Sale: CAK Orders 924 Jobs Protected

The Competition Authority of Kenya (CAK) has conditionally approved Kalahari Cement Limited’s acquisition of a 27% stake in East African Portland Cement Company (EAPC) previously owned by the National Social Security Fund (NSSF) under the condition that all 383 employees of Kalahari Cement and all 541 EAPC workers be retained for a minimum of 18 months after the transaction is concluded.

For hundreds of workers, the decision provides immediate relief after months of uncertainty over what a change in ownership could mean for their livelihoods.

Job losses had been a key concern as EAPC navigated regulatory reviews, political scrutiny, and shifting shareholder interests.

Job security as a priority for CAK

CAK’s ruling makes it clear that employee protection was central to the approval of the EAPC stake sale. In recent years, mergers and acquisitions in Kenya’s industrial sector have often been followed by restructuring and layoffs, raising public concern over the social cost of corporate deals.

By placing a binding employment condition on the transaction, the regulator signalled that competition approvals are not just about market structure, but also about protecting workers and ensuring operational continuity.

The order ensures that more than 900 families will have income security during the transition period.

Further, the 18-month window gives EAPC time to stabilise operations and plan any long-term changes in a more orderly and transparent way.

What the approval means

The approval clears the sale of NSSF’s 27% shareholding in EAPC to Kalahari Cement, a company linked to Tanzanian businessman Edhah Abdallah Munif through the Amsons Group.

This transaction follows Kalahari’s earlier purchase of a 29.2% stake from Holcim subsidiaries.

Together with an indirect 12.5% interest held through Bamburi Cement, also associated with Munif, the deals significantly increase Kalahari’s influence over EAPC.

If fully implemented, Munif-linked entities would hold effective majority control of the company.

Kalahari has said it does not plan to delist EAPC from the Nairobi Securities Exchange, arguing that keeping the company listed supports transparency and access to capital.

What it means for EAPC workers

For EAPC employees, the CAK directive removes the immediate fear of layoffs, sudden restructuring, or plant closures.

Cement production depends heavily on experienced technical staff, and the retention order helps preserve skills and institutional knowledge that are critical to keeping operations running smoothly.

The job protection clause also reduces the risk of labour disputes or disruptions that could affect production and revenues during the ownership transition.

For a company that has faced operational instability in the past, this stability is significant.

While the order does not guarantee jobs beyond 18 months, it provides breathing space for workers and management as the company adjusts to its new ownership structure.

Investor and market impact

For investors, the approval removes a major source of uncertainty that has hung over the EAPC counter.

The EAPC stake sale had been delayed by regulatory reviews, parliamentary concerns, and legal challenges, creating speculation around governance and deal risk.

Therefore, the decision by CAK reassures the market that the transaction has met competition and public-interest standards.

This allows investors to shift focus from regulatory outcomes to business fundamentals.

EAPC shares are currently trading between about KSh 83.25 and KSh 84.25, within a 52-week range of KSh 26.40 to KSh 101.00.

The stock has gained nearly 189% over the past year, reflecting improving sentiment as regulatory clarity emerges.

While EAPC still faces challenges such as ageing infrastructure, rising costs, and competition from newer cement plants, the approval marks an important reset.

Ownership clarity, combined with guaranteed job protection, creates a more stable base for future decision-making.

The CAK order shows that the EAPC stake sale is not just a financial transaction, but a transition with real human consequences.

By protecting 924 jobs, the regulator has alleviated layoff anxieties while providing the company and its investors with a clearer path forward.

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