Benson Ndeta, chairman of Savannah Clinker, has been released on bail by the High Court following his arrest in connection with a Ksh4.5 billion ($34.75 million) fraud case involving Savannah Cement.
Arrest and Charges
Ndeta was apprehended on November 28 in Nairobi’s Valley Arcade area and later questioned at the Directorate of Criminal Investigations (DCI) headquarters before being detained at Muthaiga Police Station.
His arrest followed approval from the Director of Public Prosecutions (DPP), Renson Ingonga, to charge him with alleged fraudulent activities tied to Savannah Cement’s expansion efforts. The charges include forgery, conspiracy to defraud, and using a false document.
Ndeta is accused of illegally obtaining an extract from a board meeting and transferring 4,500 shares to Seruji Limited. Additional charges include conspiracy to commit a felony, creating documents without authority, and securing credit through pretenses.
Legal Troubles Amid Expansion Plans
The legal proceedings are a major concern for Savannah Clinker, as the company is actively pursuing expansion in the construction sector. In September, Savannah Clinker launched a Ksh.25 billion ($193.7 million) bid to acquire Bamburi Cement, East Africa’s leading cement manufacturer.
Savannah’s offer of Ksh.70 ($0.54) per share represents a 53.34% premium over Bamburi’s previous share price, positioning the company as a strong contender against Tanzanian conglomerate Amsons Industries, which valued Bamburi at Ksh23 billion ($183 million).
Also Read: Tanzania’s Amsons Group Offers $180 Million for Bamburi Cement Acquisition
The proposed acquisition by Savannah Clinker has a February 2025 deadline, significantly earlier than Amsons’ November 2025 timeline, giving it a competitive edge in the race for control.
Secured Financing for Bamburi Takeover
Ndeta has assured shareholders that Savannah Clinker’s bid for Bamburi Cement is financially secure, backed by Faida Investment Bank. The financing ensures a direct payment to Bamburi’s shareholders, and Ndeta stated the company would comply with Kenya’s takeover regulations if it acquires more than 90% of Bamburi’s shares.
As the fraud case unfolds, the company remains determined to solidify its position in East Africa’s cement market while addressing the ongoing allegations against its chairman.
