Table of Contents
Key Points
- Savannah Clinker chairman Benson Ndeta granted bail in $34.7 million fraud case, facing charges of forgery and conspiracy to defraud.
- Ndeta’s arrest follows a 2019 investigation into alleged fraudulent activities, including transferring 4,500 shares to Seruji Limited.
- Despite legal challenges, Savannah Clinker pursues a $193.7 million bid to acquire Bamburi Cement, backed by Faida Investment Bank funding.
Kenyan business executive Benson Ndeta, chairman of the construction materials company Savannah Clinker, has been granted bail by the High Court in a Ksh4.5 billion ($34.75 million) fraud case.
This decision comes after Ndeta was arrested on Thursday, Nov. 28, in connection with allegations involving fraudulent activities at Savannah Cement.
Arrest and charges
Ndeta was detained in Nairobi’s Valley Arcade area before being questioned at the Directorate of Criminal Investigations (DCI) headquarters. Following his arrest, he was transferred to the Muthaiga Police Station.
The arrest came after the Director of Public Prosecutions (DPP), Renson Ingonga, approved charges against him related to an alleged fraudulent deal aimed at expanding Savannah Cement. The case has been under investigation since 2019.
The charges against Ndeta include forgery, conspiracy to defraud, and the use of a false document. He is accused of obtaining an extract of a board meeting illegally and transferring 4,500 shares to a company named Seruji Limited.
Further accusations involve conspiracy to commit a felony, making a document without authority, and securing credit and registration by false pretenses.
Savannah Clinker’s expansion bid amidst legal troubles
This legal setback comes as Savannah Clinker seeks to expand its operations. In September, the company made a Ksh25 billion ($193.7 million) bid to acquire Bamburi Cement, a leading cement manufacturer in East Africa.
The bid surpassed a previous offer by Tanzanian conglomerate Amsons Industries, which had valued Bamburi at Ksh23 billion ($183 million).
Savannah’s bid of Ksh70 ($0.54) per Bamburi share, a 53.34 percent premium over the stock’s previous price, positions it as a serious contender in the race for control of the cement company.
The offer includes a proposed acquisition deadline of February 2025, well ahead of Amsons' November 2025 deadline.
Secured funding for acquisition
Benson Ndeta assured shareholders that the acquisition of Bamburi is financially backed by Faida Investment Bank, ensuring that necessary funds are in place for a direct payment to Bamburi's shareholders.
He also emphasized that should Savannah Clinker secure more than 90 percent of Bamburi's shares, it would comply with Kenya's takeover regulations.
