EAPC share defies state share row to hit a high of Sh59.75

The share price of East African Portland Cement (EAPC) rose by a near six per cent in the week ended October 9, hitting a high of Sh59.75 at the Nairobi Securities Exchange (NSE).

 The sharp rise that listed it among top gainers for the week alongside Flame Tree and Crown Paint is against the ongoing controversy surrounding an interest from Tanzanian Cement tycoon, who is keen to buy a 29.2 per cent stake in a firm largely owned by the Kenyan government.

 In late August, the Capital Markets Authority (CMA) approved the proposed sale of Holcim Limited’s 29.2 per cent stake in EAPC Plc to Kalahari Cement Limited, a newly incorporated Kenyan investment company tied to Tanzania’s Amsons Group.

 Even so, concerned Kenyans and Members of Parliament have poked holes in the planned sale, questioning CMA's rationale in giving a nod to a highly discounted share sale.

 The sale price agreed at Sh27.30 per share values the transaction at Sh718.7 million ($5.57 million).

 This represents a steep discount compared to EAPC’s prevailing market price, which has surged above Sh50 per share in recent months on speculation of a takeover.

 Legislators are also concerned that the sale was not subjected to public participation nor sought Attorney General's view, especially on value and possibility of creating a monopoly, considering that the interested buyer recently bought out Bamburi Cement, another key player.

 Generally, the Nairobi bourse reported lower activities, with the NASI, NSE 25 and NSE 20 share price indices decreasing by 3.57 per cent, 1.86 per cent and 2.07 per cent respectively, during the week ending October 9, 2025.

 Market capitalisation decreased by 3.57 per cent while total shares traded and Equity turnover increasing by 4.25 per cent and 209.94 per cent respectively.

 Bond turnover in the domestic secondary market decreased by 37.8 per cent during the week.

 In the international market, yields on Kenya’s Eurobonds increased by 13.10 basis points on average as the country works towards a buyback of 2028 issue.

 The country is also planning for a funded programme with the International Monetory Fund (IMF), with CBK governor Kamau Thugge confirming that a Kenyan delegation will be heading to Washington DC this week after several talks with IMF team which has been in the country since early last month.

 During the week, investors flocked back to short-term state securities after avoiding them in the past two weeks due to wadding yields.

 The Treasury bill auction of October 9 received bids totaling Sh25.6 billion against an advertised amount of Sh24 billion, representing a performance of 106.9 per cent.

 Even so, interest rate on the 91-day, 182-day and 364-day Treasury bills declined as the Central Bank of Kenya further cut the base lending rate by 25basis points to 9.25 per cent.

 Money market experts expect a dropping yield curve on both state and private short-term securities until December.