A year after the High Court approved the appointment of an administrator to address Savannah Cement’s defaulted debt, the administrator is now inviting expressions of interest (EOIs) for the company’s assets.
EOIs are to be submitted between the announcement date of July 29 and August 16 by 4 pm. During August and September, various proposals will be evaluated, and shortlisted buyers will be taken on site visits. The final evaluation of bids is scheduled for October 25, with December 31 set as the deadline for the asset sale.
The notice specifies that EOIs should be clearly marked “Expression of Interest – For purchase of the business and assets of Savannah Cement Limited (Under Administration, In Receivership).” Submissions should be in English and delivered in three sealed hard copies, one of which must be the original, addressed to the administrator, Peter Kahi.
Interested buyers are expected to provide business details and proof of their financial and technical capacity to enhance Savannah Cement’s assets. Additionally, potential buyers will undergo a bankruptcy assessment.
Savannah Cement’s Downfall
Founded in 2012, Savannah Cement produced 1.5 million tonnes annually. A second mill commissioned in 2020 boosted production to 2.4 million tonnes. However, ownership disputes led to financial difficulties in 2022, and the company failed to repay loans totaling KES 10.0 billion to KCB and ABSA bank.
The Supreme Court temporarily barred KCB and ABSA from seizing Savannah Cement’s assets, including prime land and machinery, in late 2022. The company sought more time to repay the loans, citing ongoing government supply contracts.
The reprieve was short-lived, and in May of last year, Justice Alfred Mabeya ruled in favor of appointing an administrator to restructure the business and recover the debts.
Before its collapse, Savannah Cement’s products were used in numerous infrastructural projects such as the SGR phases I and II, Kibwezi-Mutomo-Kitui road, UoN Towers, Kipeto Wind Power Station, Thiba Dam, Thwake Dam, and the Nairobi Southern, Eastern, and Western Bypasses.
