Key Factors
- Savannah Clinker chairman Benson Ndeta granted bail in $34.7 million fraud case, going through costs of forgery and conspiracy to defraud.
- Ndeta’s arrest follows a 2019 investigation into alleged fraudulent actions, together with transferring 4,500 shares to Seruji Restricted.
- Regardless of authorized challenges, Savannah Clinker pursues a $193.7 million bid to accumulate Bamburi Cement, backed by Faida Funding Financial institution funding.
Kenyan enterprise govt Benson Ndeta, chairman of the development supplies firm Savannah Clinker, has been granted bail by the Excessive Court docket in a Ksh4.5 billion ($34.75 million) fraud case.
This resolution comes after Ndeta was arrested on Thursday, Nov. 28, in reference to allegations involving fraudulent actions at Savannah Cement.
Arrest and costs
Ndeta was detained in Nairobi’s Valley Arcade space earlier than being questioned on the Directorate of Felony Investigations (DCI) headquarters. Following his arrest, he was transferred to the Muthaiga Police Station.
The arrest got here after the Director of Public Prosecutions (DPP), Renson Ingonga, permitted costs in opposition to him associated to an alleged fraudulent deal geared toward increasing Savannah Cement. The case has been beneath investigation since 2019.
The fees in opposition to Ndeta embrace forgery, conspiracy to defraud, and the usage of a false doc. He’s accused of acquiring an extract of a board assembly illegally and transferring 4,500 shares to an organization named Seruji Restricted.
Additional accusations contain conspiracy to commit a felony, making a doc with out authority, and securing credit score and registration by false pretenses.
Savannah Clinker’s enlargement bid amidst authorized troubles
This authorized setback comes as Savannah Clinker seeks to broaden its operations. In September, the corporate made a Ksh25 billion ($193.7 million) bid to acquire Bamburi Cement, a number one cement producer in East Africa.
The bid surpassed a earlier provide 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 % premium over the inventory’s earlier value, positions it as a critical contender within the race for management of the cement firm.
The provide features a proposed acquisition deadline of February 2025, properly forward of Amsons’ November 2025 deadline.
Secured funding for acquisition
Benson Ndeta assured shareholders that the acquisition of Bamburi is financially backed by Faida Funding Financial institution, guaranteeing that obligatory funds are in place for a direct fee to Bamburi’s shareholders.
He additionally emphasised that ought to Savannah Clinker safe greater than 90 % of Bamburi’s shares, it might adjust to Kenya’s takeover laws.
