A consortium of wealthy flour industry magnates—behind household brands such as Supa Loaf, Mombasa Maize Millers, Kitui Flour Millers, and Eldoret Grains—has acquired Savannah Cement for KSh 3.8 billion, rescuing the firm from receivership and marking a bold entry into Kenya’s booming cement sector.
Savannah Cement had been under administration since May 2023 over debts exceeding KSh 14.1 billion owed to KCB Bank and Absa Bank. The acquisition, executed through a newly registered vehicle named Savannah Cement 2025 Limited, concludes months of uncertainty for the struggling manufacturer.
A transaction adviser who worked on the deal said the tycoons sealed the purchase after fending off competition from more than a dozen local and international bidders, underlining strong investor interest in Kenya’s construction and infrastructure boom. “This deal was hotly contested. Demand for cement is surging, and these investors saw an opening,” the adviser noted.
The Competition Authority of Kenya (CAK) is expected to clear the transaction, which significantly expands the buyers’ industrial footprint from food processing into building materials. Kenya’s cement market has been riding on real estate growth and government-backed infrastructure projects, making it an attractive play for cash-rich investors.
The timing of the deal coincides with broader fiscal developments. The National Treasury expects the World Bank to approve a KSh 96.9 billion ($750 million) loan in September, an injection likely to stimulate infrastructure financing and further lift demand for construction materials. Meanwhile, Parliament has passed an enhanced Conflict of Interest Bill, tightening corporate governance requirements for high-value transactions such as this one.
Key Facts:
Deal Value: KSh 3.8 billion
Target: Savannah Cement (in receivership over KSh 14.1 billion debt)
Buyers: Tycoons behind major flour and grain companies
Market Impact: Expands investor footprint into cement amid strong demand
Policy Context: Conflict of Interest Bill passed; World Bank loan approval expected in September
With the receivership now ended, the new owners are expected to restructure operations, settle outstanding obligations, and reposition Savannah Cement as a competitive player in East Africa’s construction supply chain.
