The Anatomy of a Scandal

The East African Portland Cement Company (EAPC), once a cornerstone of Kenya’s industrial pride, has found itself thrust into a storm of controversy. At the heart of the dispute is a proposal to offload its shares at a mere KSh19 each, while their true market value stands at over KSh58. This undervaluation, critics argue, is not just poor business—it is economic vandalism.

Behind this dubious deal lurks a bigger question: why would anyone sell off national assets at a third of their market worth? The answer lies in a cocktail of insider interests, questionable loans, and a cartel’s ambition to seize control of one of Kenya’s most strategic industries.

The KCB Loan Without a Safety Net

A central piece of this puzzle is KCB Bank’s KSh20 billion loan, reportedly issued with little or no collateral. In a country where ordinary citizens must surrender land, homes, or businesses to access even modest credit, the decision to greenlight such a massive facility without safeguards raises red flags.

Investigators and lawmakers have demanded clarity: who authorized this loan? What guarantees were provided? And more importantly, why does this financial facility appear to serve the interests of a small clique—led by figures like Edhah Abdallah and Munif—rather than Kenya’s taxpayers?

The suspicion is that this loan was never meant to strengthen EAPC, but rather to facilitate a hostile takeover, pushing out public ownership in favor of cartel dominance.

A Cartel’s Endgame: Control the Cement, Control the Economy

Cement is not an ordinary product—it is the backbone of Kenya’s development agenda. From the government’s affordable housing program to new highways, hospitals, and schools, cement costs directly determine national progress.

If a cartel succeeds in cornering this market, the effects will ripple across every sector:

Housing costs will soar, making homes unaffordable for millions.

Public projects will stall, as inflated cement prices bleed government budgets.

Small contractors will collapse, unable to compete with cartel-controlled suppliers.

What is unfolding is not just a financial dispute—it is an attempt to dictate the pace and cost of Kenya’s entire development journey.

Parliament Pushes Back Against “Economic Suicide”

Alarmed by the scale of manipulation, Parliament has taken an unusually firm stance. Lawmakers blocked the proposed undervalued sale, warning that allowing it to proceed would amount to “economic suicide.”

Some legislators proposed a buyback strategy, a bold alternative that would see the state—and ultimately Kenyan citizens—reclaim control over Portland Cement. The message from the floor of Parliament was clear: Kenya’s industries should not be surrendered to cartels at throwaway prices.

This resistance has emboldened civil society and investor groups, who view the scandal not just as a business dispute but as a defining battle over the country’s economic sovereignty.

The Abdallah–Munif Connection

Whispers within political and financial circles point to a powerful alliance between Edhah Abdallah and Munif, two figures accused of orchestrating the undervaluation plot. Their strategy, critics say, is textbook cartel economics:

Secure financing through questionable loans.

Acquire assets at undervalued prices.

Consolidate market control by edging out competitors.

Hike prices once dominance is assured.

If successful, this playbook would cement—literally—their stranglehold over Kenya’s construction sector, forcing both government and citizens to dance to their tune.

Citizens React: The Battle Spills to the Streets and Online

Kenyans have not remained silent. Online platforms have exploded with outrage, with hashtags like #CementCartelExposed and #StopEdhahAbdallah trending for days.

The public anger is fueled by a sense of betrayal—how could a bank as prominent as KCB hand out billions recklessly, while millions of Kenyans are priced out of basic credit? How could leaders allow national assets to be sold for less than half their worth?

For many citizens, this fight transcends Portland Cement. It is a fight over whether national wealth belongs to Kenyans or to a cartel of insiders.

The Bigger Picture: What’s Really at Stake

The EAPC saga exposes a deeper sickness in Kenya’s political economy—where strategic industries are constantly vulnerable to capture by shadowy networks of bankers, politicians, and businessmen.

This is not the first time public institutions have been targeted for asset stripping. From sugar mills to airlines, the script is familiar: run down the institution, inflate its debts, then offload it cheaply to insiders. The Portland Cement scandal is simply the latest chapter in this book of betrayal.

Conclusion: Cementing a Nation or Cementing Corruption?

Kenya now stands at a dangerous crossroads. If the Portland Cement undervaluation is allowed to pass, it will embolden cartels across every industry. If unchecked, ordinary Kenyans will pay higher prices for homes, roads, and public projects, while a few men pocket billions.

The pushback from Parliament and the public has provided a glimmer of hope—but the fight is far from over. The real test will be whether institutions like KCB, regulators, and enforcement agencies are held accountable.

In the end, this scandal is not about cement alone. It is about whether Kenya chooses to cement its future in fairness and accountability, or cement itself into a foundation of corruption.