Sarrai Group Signs Lucrative Ksh 18B Cement Contract in Rwanda and Uganda

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Sarrai Group

The Nairobi Securities Exchange (NSE) has revealed that the billionaire Sarbjit Singh Rai’s Sarrai Group, in partnership with Rwimi Holdings, plans to purchase Bamburi Cement’s Uganda and Rwanda operations for an estimated Ksh18 billion.

The NSE issued a warning letter on Tuesday, stating that the two businesses had reached a deal to purchase 1,335,600 common shares in Hima Cement Limited, a Ugandan company that also has operations in Rwanda.

The two businesses would acquire Bamburi Cement, which held a 70% controlling interest, as part of the agreement.

The Capital Markets Authority (CMA) and other regulatory agencies must approve the deal. The NSE also mentioned in the statement that the purchase needs to be approved by the shareholders of the listed cement business.

This implies that in order to concentrate on its activities in Kenya, the struggling cement manufacturer will be leaving the markets in Rwanda and Uganda.

Along with running the Rai Cement plant in Kisumu, Sarrai Group also owns a few other properties in Kenya, including the contentious Mumias Sugar Company (MSC).

The MSC receiver manager granted the Ugandan company a 20-year lease of the failing miller in 2019, but the procedure was halted by other rivals who hurried to court. His bid of Ksh11.5 billion had set up a fierce battle between him and his older brother, who had put in a bid of Ksh3.5 billion.

The younger brother of Jaswant Rai, who has been making headlines for controlling Kenya’s sugar industry, is Sarbjit Rai. The dispute between the two stems from the late father’s fortune.

As per the agreement, Sarrai Group will assume management of two Ugandan facilities: a blending station in Namanve and a grinding mill in Tororo.

In addition, they will possess Hima Cement in Rwanda and a clinker and cement factory in Kasese, Uganda.

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