(Ecofin Agency) - The licenses of two Nairobi Securities Exchange-listed cement producers could be cancelled. Indeed, Athi River Mining and East African Portland Cement are mentioned in an audit as companies owing Kenya.
In the concluding part of that audit, the mining minister recommended the suspension of their licenses.
ARM Cement, in which the Indian born billionaire Pradeep Harjivandas Paunrana is the major shareholder, will have to disburse Ksh96.5 million (about $1 million). ARM Cement also has many large institutional investors (like Ashburton, Coronation even though their participation is still low) in its capital.
The state-owned East Africa Portland Cement will have to disburse Ksh68.3 million. The cement group is currently trying to become profitable again but also reduce its debt. For East Africa Portland Cement, the case will be monitored by investors who positioned themselves for its acquisition in early April 2018.