Wealthy Investors Behind Athi River Demolitions

The Privatisation Commission of Kenya vehemently denied rumors regarding the sale of East African Portland Cement to private investors amidst the demolition of squatters’ houses.

These refutations followed the viral spread of a post on social media, suggesting that not only East African Portland Cement but also Kenya Pipeline and other crucial state-owned enterprises were being considered for privatization.

This declaration arrived just two months after the Ministry of Trade had announced that they had identified a potential purchaser for the Ksh15 billion state share in Portland Cement.

The Commission’s firm denial sought to quash the mounting speculations and fears circulating within the public domain regarding the future of these key parastatals, reaffirming their commitment to transparency and adherence to established protocols in any potential divestiture processes.

Industry Principal Secretary (PS) Juma Mukhwana told Parliament that the Ministry had approved a plan to allow the strategic investor to buy a 30 per cent stake in the company.

The viral post coincided with the demolition of buildings on the Portland Cement that has seen Kenyans lose property worth billions.

“Kindly note the programme in circulation on social media is fake,” the Commission stated. 

The post being circulated while true is from resolutions of an August 12, 2009, cabinet meeting chaired by former President Mwai Kibaki.

During the meeting, the cabinet approved privatising 26 companies including Portland Cement. 

Other key companies that had been put up for sale included KenGen, sections of Kenya Ports Authority, Kenya co-operative Creameries, and Kenya Meat Commission. 

On October 9, President William Ruto’s cabinet rescinded the decision noting that only underperforming companies would be privatised. 

The Portland Cement based in Athi River has been at the centre of controversy as the government states that people living there acquired the land illegally.

The process of kicking people out of the expansive land started in November 2022, when former Trade Cabinet Secretary Moses Kuria revealed that the government had plans to use the facility for cargo storage.

“East African Portland Company will not turn out to be a centre for the land transaction, we have the plan to utilise the land in question by constructing the first Kenya cargo airport,” Kuria stated adding that the government would not be intimidated by squatters. 

The government kickstarted the demolitions in earnest on Saturday, October 13, a day after Ruto ordered the Ministry of Land to revoke titles of land that have not been developed in Athi River for over 10 years. 

Leaders drawn from Lower Eastern led by Wiper Leader Kalonzo Musyoka and Machakos Governor Wavinya Ndeti have condemned Ruto for okaying the demolition.