In 2003, Kenya’s economy was in desperate need of revitalisation, and the late President Mwai Kibaki turned to a group of technocrats to help navigate the country out of stagnation.
Among them was Benson Ndeta, a 31-year-old architect, who had already built a reputation in the private sector. Kibaki tasked him with an audacious challenge—turn around the loss-making East African Portland Cement Company (EAPCC).
Ndeta’s appointment as the chairman of the Board of Directors came at a time when EAPCC was bleeding financially, and the future of one of Kenya’s oldest industrial companies looked grim.
In only a year, Ndeta achieved what seemed impossible. EAPCC posted a profit of Sh1.4 billion, a remarkable turnaround for a company on the brink of collapse. Over the next five years, Ndeta did not just stabilise the company; he transformed it.
Under his leadership, EAPCC doubled its cement production capacity from 650,000 tonnes to 1.35 million tonnes annually. By constructing a production factory at a cost of Sh 25 million from its own profits, Ndeta ensured the company’s ability to continue expansion. His efforts led to the company paying dividends, a rare occurrence at the time. When Ndeta left the company in 2008, he handed over a firm with Sh 4 billion in reserves—a testament to his successful leadership.
Despite EAPCC’s success under Ndeta, the company’s performance waned after his exit, and shareholders have not received dividends since his departure. Ndeta’s strategic vision and hands-on management left a void that the company has struggled to fill, further highlighting the significance of his contributions during his tenure.
After leaving EAPCC, Ndeta founded Savannah Cement Limited in 2008, a greenfield project that positioned him as a major player in Kenya’s cement industry. Savannah Cement started with a tripartite shareholding structure, with Ndeta and his family holding 40 per cent under Savannah Heights, while two other partners, Chinene and Acme Wanji Limited, controlled the remaining shares.
Savannah Clinker Venture
During the 2008-2009 global financial crisis, Ndeta sold half of his stake. This led to a series of disputes with his new partners, legal wrangling that spanned over a decade. These battles, combined with the high cost of imported clinker, led to a halt in Savannah Cement’s production and eventually to its closure in October 2023.
Ndeta, however, was already laying the groundwork for his next big venture. He founded Savannah Clinker Limited in 2019 and built a Sh35 million clinker factory in Kitui County. The company was not just meant to supply his cement business but also to sell to other firms in the East African region, offering a local alternative to the high costs of imported clinker.
Last week, Ndeta’s Savannah Clinker Limited hit headlines again, this time for placing a Sh 25 billion bid to take over Bamburi Cement, one of East Africa’s largest cement conglomerates. Savannah Clinker’s offer to buy up to 100 per cent of Bamburi Cement’s shares at Sh 70 per share outbid Tanzania’s Amsons Industries, which had offered Sh 65 per share. Savannah Clinker’s offer represents a 7.7 per cent premium over Amsons’ bid and a 4.5 per cent premium over Bamburi’s recent trading price, setting a new valuation benchmark for the company.
Ndeta’s argument in favour of his bid is that Savannah Clinker’s status as a Kenyan company offers better synergies with Bamburi’s operations compared to the Tanzanian-owned Amsons Industries. His proposal has garnered attention from industry analysts, with Bamburi shares gaining 21 per cent in the past week, bringing the total stock price gain to 116 per cent this year.
The potential acquisition of Bamburi Cement is a bold move by Ndeta, marking his return to the centre stage of East Africa’s cement industry. If successful, the deal would place Savannah Clinker in a dominant position in the region’s construction sector and international markets.
