Kenyan investor Baloobhai Patel gains from $98.2 million payout in Bamburi Cement takeover deal

Omokolade Ajayi -
Key Points
  • Shareholders of Bamburi Cement earned Ksh12.7 billion ($98.2 million) in capital gains and special dividends following Amsons Group's acquisition in 2024.
  • Kenyan tycoon Baloobhai Patel made Ksh2 billion ($15.46 million) in six months through his stake in Bamburi Cement via Aksaya Investment.
  • Amsons Group acquired Bamburi Cement for $182 million, consolidating its position in East Africa's growing construction sector.

Shareholders of Bamburi Cement, one of East Africa’s largest cement producers, pocketed a staggering Ksh12.7 billion ($98.2 million) in capital gains and special dividends in 2024. The windfall followed the successful acquisition of the company by Tanzanian conglomerate Amsons Group and an earlier divestiture of its Ugandan subsidiary.

Among the investors who benefited significantly is Kenyan tycoon Baloobhai Patel, who earned Ksh2 billion ($15.46 million) in just six months through his stake in Bamburi. Patel, known for his diverse investment portfolio, holds a stake in the cement company through his private firm, Aksaya Investment. His other investments include financial services provider Sanlam and industrial gases producer Carbacid, cementing his reputation as one of Kenya’s top investors.

Landmark deal for Bamburi Cement

Amsons Group, a Tanzanian family-owned conglomerate led by businessman Edha Nahdi, completed its acquisition of Bamburi Cement in December, securing 100 percent ownership in a deal valued at Ksh23.59 billion ($182 million). The process included the purchase of 137.06 million shares through block trades on the Nairobi Securities Exchange (NSE) at a premium price of Ksh65 ($0.503) per share, totaling Ksh8.9 billion ($68.9 million).

The acquisition underscores Amsons’ strategy to consolidate its footprint in East Africa’s construction sector. Regulatory approvals from Kenya’s Ministry of Mining and the COMESA Competition Commission enabled the seamless execution of the transaction. “Bamburi Cement is a cornerstone of East Africa’s construction industry, and we are committed to enhancing its legacy of innovation and sustainable growth,” said Nahdi.

Strategic expansion into East Africa

Amsons Group, founded in 2008, has grown from a bulk oil importer into a diversified conglomerate with interests spanning fuel, liquefied petroleum gas, transportation, cement, and real estate. Kenya’s thriving construction industry—driven by urbanization, large-scale infrastructure projects, and increasing housing needs—provides a promising market for the company’s continued growth and expansion.

Bamburi Cement’s Mombasa plant, one of the largest in Sub-Saharan Africa, positions the company as a leader in sustainable construction solutions. The acquisition aligns with Amsons’ ambition to solidify its presence in the region and capitalize on the growing demand for innovative building materials. This deal marks one of Kenya’s most significant foreign direct investments in 2024, reinforcing Amsons Group’s position as a regional powerhouse and reshaping East Africa’s infrastructure landscape.