Bamburi Cement heads for delisting as strategic investor raises stake
By Noel Wandera, July 29, 2025Nairobi Securities Exchange (NSE) has extended the suspension of Bamburi Cement Plc shares following the acquisition of a 96.54 per cent stake by a strategic investor, paving the way for a compulsory buyout of minority shareholders and an imminent delisting.
Capital Markets Authority (CMA), while invoking Regulation 73(2)(b) of the Capital Markets (Public Offers, Listings and Disclosures) Regulations, 2023, said the extension is intended “to allow for the completion of the share transfer process in line with the relevant legal and regulatory requirements.”
The move marks a turning point in one of the most high-profile corporate shake-ups in Kenya’s industrial sector this year, and underlines the continuing retreat of blue-chip firms from the country’s main bourse.
Bamburi Cement, a dominant player in East Africa’s construction materials market, had been the subject of a bidding war in late 2024, with two rival suitors, Tanzania’s Amsons Group, through its local subsidiary Amsons Industries (K) Ltd, and Kenya’s Savannah Clinker Limited, owned by businessman Benson Ndeta, vying for control.
Savannah’s initial Ksh25.4 billion offer (Ksh70 per share) later rose to Ksh27.7 billion (Ksh76.55), eclipsing Amsons’s Ksh23.6 billion proposal.
But in a dramatic turn, Ndeta’s offer was withdrawn on December 4, 2024, following regulatory scrutiny and legal troubles, including his arrest and investigations into financial misconduct.
That withdrawal cleared the path for Amsons Group, the Tanzanian industrial conglomerate, to proceed as the sole remaining bidder.
The NSE said the 96.54 per cent stake now acquired by the offeror “meets the statutory threshold for initiating the compulsory acquisition of the remaining shares,” referencing the 90 per cent benchmark set under Kenya’s takeover laws.
Regulatory control
Under compulsory acquisition, the remaining 3.46 per cent of shareholders will be forced to sell their shares at the same price as the original offer, effectively ending Bamburi’s six-decade-long presence as a listed company. The exact timeline for this squeeze-out remains under regulatory control.
“The suspension of trading… has been extended,” NSE stated in a public notice, reiterating that the freeze will remain “until such time as the Authority issues further direction.”
Analysts view the deal as part of a deliberate shift by multinationals like Holcim to refocus on higher-yield markets and reduce exposure to regions facing sustained operational strain.
Bamburi has faced rising energy costs, currency depreciation, and weakening infrastructure investment in its key markets of Kenya and Uganda, pressures that have steadily eroded margins and dampened long-term returns.
Alongside prolonged share underperformance on the NSE, these factors are widely seen to have driven Holcim’s decision to divest.
In its deal disclosure, Holcim noted that the transaction “enables us to realign our portfolio in Africa while ensuring continuity of business for employees, customers, and other stakeholders.”
Public listings
However, Bamburi’s pending exit compounds growing concerns about Kenya’s shrinking pool of public listings.
Its departure follows similar trends among multinationals like TotalEnergies Marketing Kenya and Kenya Airways, which have either delisted or signalled intentions to restructure away from public ownership.
Market watchers warn that such exits erode liquidity and investor confidence in the bourse. Bamburi’s looming exit removes one of the last industrial bellwethers from the NSE, further narrowing investor options and reigniting debate over the competitiveness and depth of Kenya’s capital markets, they say.
The CMA’s reliance on the updated 2023 public offers regulations in managing the suspension signals a firmer stance on market stability and investor protection.
By maintaining the freeze until full compliance is met, the regulator aims to avoid speculative trades during this sensitive transition phase.
Still, the development leaves retail investors in limbo. While compulsory acquisition offers guaranteed exit, it often removes any future upside potential that could have been realised through public listing.
For Amsons, Bamburi’s acquisition marks a significant expansion of its regional footprint.
The Dar es Salaam-based group, whose holdings span petroleum, logistics, and cement, now controls one of Kenya’s oldest and most recognisable manufacturing brands, potentially unlocking synergies across East African markets.