Benson Ndeta, the owner of Savannah Clinker, was arrested recently over a Ksh 700 million fraud case involving Savannah Cement.
The businessman now faces serious charges, including forgery, fraud, and conspiracy to commit a crime.
Investigations by the Directorate of Criminal Investigations (DCI) revealed troubling details about how Ndeta and others allegedly carried out the fraud.
The case began when Ndeta and his American associate, Charles Hills Jr., were accused of presenting fake documents to secure a USD 35 million (about Ksh 4.9 billion) loan from Barclays Bank.
The money was meant for expanding Savannah Cement.
Investigators say Hills forged corporate guarantees, falsely claiming to be a director of Savannah Heights, while Ndeta allegedly helped facilitate the scam.
Barclays Bank approved the loan based on these fake documents, which have now become key evidence in the case.
The fraud also involves a controversial sale of shares in Savannah Cement.
In 2017, Ndeta allegedly acquired 4,500 shares, which shifted control of the company.
This move left other shareholders, like Donald Kiboro and John Gechanga, with little power.
The fallout led to boardroom disputes, with Kiboro and Gechanga boycotting meetings. Investigators discovered that Hills had also failed to pay Ksh 700 million for a share agreement, further complicating the matter.
To make things worse, Ndeta’s arrest came as his company was trying to buy Bamburi Cement.
Savannah Clinker had offered Ksh 70 per share, beating a rival bid from Amsons Group.
However, the fraud case has raised serious doubts about Ndeta’s ability to complete the deal. Many now question how he could lead such a major acquisition while facing multiple legal challenges.
Ndeta’s arrest also attracted political attention.
Azimio leaders, including Kalonzo Musyoka and Eugene Wamalwa, visited the police station where he was being held to push for his release on bond.
Critics argue that this interference shows how some individuals misuse political influence to protect their interests.
Savannah Clinker, once a strong player in the cement market, is now in deep trouble.
The company went into administration last year after failing to pay debts owed to KCB Group and Absa Bank.
Its assets are being sold to settle these debts, leaving little room for recovery.
Ndeta’s reputation and business prospects are in serious jeopardy.
The charges against him highlight not just personal wrongdoing but also raise questions about the integrity of his company’s operations.
For now, the future of Savannah Cement remains uncertain, overshadowed by fraud and financial mismanagement.
