Benson Sande Ndeta, the proprietor of Savannah Clinker, has been arrested over allegations of involvement in a Sh700 million fraud at his 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 an investigation led by the Directorate of Criminal Investigations (DCI).
A warrant of arrest was issued for Ndeta and his alleged accomplice, Charles Hill Jr., an American national. Extradition requests and mutual legal assistance have been initiated to secure Hill’s return to Kenya and further investigate the case.
Background of the Allegations
The case centers around the fraudulent acquisition of 4,500 shares in Savannah Cement, leading to ownership disputes. In 2017, Ndeta and Hill are alleged to have forged corporate guarantee documents to obtain a USD 35 million loan from Barclays Bank for Savannah Cement’s expansion. Hill, who falsely claimed to be a director of Savannah Heights, a major Savannah Cement shareholder, facilitated the scheme.
Investigators also uncovered Hill’s failure to honor a Ksh 700 million share purchase agreement with Savannah Heights shareholder Donald Kiboro, deepening the financial disputes at the company.
Savannah Cement’s Financial Troubles
Savannah Cement, once a prominent name in Kenya’s cement industry, has faced financial difficulties, including mounting debts and shareholder conflicts. The company owes Ksh 18 billion, with Ksh 14 billion owed to local banks. In 2023, Savannah Cement was placed under administration, and its assets are being auctioned off to address the debts.
Bamburi Buyout Bid
Despite these financial challenges, Ndeta is still a key player in the ongoing Sh25.42 billion bid to acquire Bamburi Cement. His company, Savannah Clinker, has outbid rival Amsons by Ksh 1.81 billion, offering Ksh 70 per share, a premium over Amsons’ Ksh 65 bid. The deal is pending regulatory approval, with Savannah Clinker only needing clearance from the Competition Authority of Kenya (CAK), while Amsons’ bid also requires approval from COMESA.
Cement Industry Veteran
Ndeta, a well-known figure in Kenya’s cement industry, has had a long career, including serving as the chair of East African Portland Cement in 2003 and co-founding Savannah Cement in 2012. However, the company has been plagued by shareholder disputes, including a controversial sale of the Chinese investors’ stake to Ndeta’s Seruji Limited, which led to years of legal battles.
As Ndeta faces legal challenges, it remains uncertain how his arrest will affect his ongoing bid to acquire Bamburi Cement. The outcome of his legal troubles may significantly impact both his personal and professional future in Kenya’s cement industry.