Kenya’s leading millers diversify with US$29M Savannah Cement takeover
The deal, approved unconditionally by the Competition Authority of Kenya (CAK), is linked to a consortium comprising the owners of Mombasa Maize Millers, Kitui Flour Millers, and Eldoret Grains Limited.
KENYA – A consortium of Kenya’s leading flour and grain processors has completed the acquisition of Savannah Cement for KES 3.8 billion (US$29 million), marking a significant diversification outside the traditional grains and milling sector.
The consortium comprises investors linked to Mombasa Maize Millers, Kitui Flour Millers, and Eldoret Grains Limited, companies widely recognized for household food brands such as Dola, Taifa, and Super Loaf. The transaction was unconditionally approved by the Competition Authority of Kenya (CAK) on August 25, 2025.
The deal, finalized through a newly formed entity, Savannah Cement 2025 Limited, concludes a two-year search for buyers after KCB Bank Kenya and Absa Bank placed the cement manufacturer under receivership in May 2023 over a KES 14.1 billion (US$108 million) debt.
According to CAK Director-General David Kemei, the acquisition will safeguard the company’s survival, sustain its productivity, and potentially generate new employment opportunities without raising competition or public interest concerns.
Savannah Cement’s financial troubles, attributed to mismanagement and alleged fraudulent practices, led to a net loss of KES 2.5 billion (US$19 million) in 2022 and debts of KES18 billion (US$138 million) by 2023.
Its key assets include an industrial property valued at KES 10.1 billion (US$78 million) and a 2.5-acre plot in Kitengela worth KES 750 million (US$5.7 million).
KCB Bank Kenya, owed KES 8.89 billion (US$68 million), and Absa Bank, owed KES 5.23 billion (US$40 million), were the main preferential creditors in the receivership process overseen by Peter Kahi of PKF Kenya.
Although Savannah Cement’s operations had stalled, the new owners are expected to inject capital and restore production capacity. Industry observers point out that the millers’ extensive distribution networks, financial muscle, and experience in managing large-scale processing plants could offer strong synergies to stabilize the cement producer.
For years, the consortium companies have dominated Kenya’s food supply chain through maize milling, wheat processing, baking, and sugar production. Their entry into the cement sector underscores the growing appetite among agribusiness leaders to diversify into heavy industries while maintaining strong positions in food security and household staples.
Despite this diversification, the consortium’s core business remains firmly rooted in milling and food processing.
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