Benson Sande Ndeta, the proprietor of Savannah Clinker, has been arrested over allegations of a Sh700 million fraud at the company.
Ndeta faces multiple charges, including forgery, conspiracy to defraud, obtaining credit by false pretenses, and uttering false documents.
The charges were approved by the Office of the Director of Public Prosecutions (ODPP) following investigations by the Directorate of Criminal Investigations (DCI). Senior Prosecutor Jacinta Nyamosi directed that a warrant of arrest be issued for Ndeta and his alleged accomplice, Charles Hill Jr., an American national.
Extradition requests and further mutual legal assistance have been initiated to secure Hill’s surrender to Kenya and obtain additional evidence.
High-profile Support
Ndeta’s arrest has sparked political intervention, with senior Azimio leaders, including Stephen Kalonzo Musyoka and Eugene Wamalwa, visiting Muthaiga Police Station to seek his release on bond.
Background of the Allegations
The case stems from the alleged fraudulent acquisition of 4,500 shares in Savannah Cement, which led to a contentious shift in shareholding. Investigators claim that in 2017, Ndeta and Hill executed forged corporate guarantee documents to secure a USD 35 million loan from Barclays Bank for Savannah Cement’s expansion. Hill falsely represented himself as a director of Savannah Heights, a major shareholder in Savannah Cement, to facilitate the scheme.
The probe also revealed that Hill failed to honor a Ksh 700 million share purchase agreement with Savannah Heights shareholder Donald Kiboro, further complicating the ownership disputes.
Savannah Cement’s Struggles
Savannah Cement, once a thriving player in Kenya’s cement industry, has faced financial turmoil due to mounting debts and shareholder disputes. The company owes creditors Ksh 18 billion, including Ksh 14 billion to local banks. It was placed under administration in 2023, and its assets are currently being auctioned to settle liabilities.
Bamburi Buyout Saga
Despite the challenges, Ndeta remains a key contender in the Sh25.42 billion bid to acquire Bamburi Cement, outbidding rival Amsons by Ksh 1.81 billion. Savannah Clinker’s offer of Sh70 per share represents a premium over Amsons’ Ksh 65 bid, with a proposed completion date of February 2025.
Both offers require regulatory approval, with Savannah Clinker only needing clearance from the Competition Authority of Kenya (CAK), while Amsons’ bid must also secure COMESA’s endorsement.
Cement Industry Veteran
Ndeta, a veteran in Kenya’s cement industry, chaired East African Portland Cement in 2003 and co-founded Savannah Cement in 2012. However, shareholder disputes have marred the company’s success. Initial ownership was split between Kenyan firm Savannah Heights (40%) and Chinese investors (60%), but the Chinese stake was controversially sold to Ndeta’s Seruji Limited, sparking years of legal battles.
As the dust settles on his arrest, the implications of Ndeta’s legal troubles on his bid for Bamburi Cement remain uncertain.
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