The charges arise from allegations that Ndeta and Hill Jr. fraudulently signed corporate guarantee documents and presented them to Absa Bank to secure a USD 35 million loan for Savannah Cement’s factory expansion. The DPP stated that the documents were forged and not authorized by the legitimate directors of Savannah Heights, one of Savannah Cement’s parent companies
Benson Sande Ndeta, the proprietor and executive chair of Savannah Clinker, has been arrested in connection with an alleged Ksh 700 million fraud and forgery scandal at Savannah Cement. The Director of Public Prosecutions (DPP) has directed Ndeta and his co-accused, Charles Hill Jr., an American based in Delaware, to face eight charges, including forgery, conspiracy to commit a felony, and obtaining credit by pretences.
The charges arise from allegations that Ndeta and Hill Jr. fraudulently signed corporate guarantee documents and presented them to Absa Bank to secure a USD 35 million loan for Savannah Cement’s factory expansion. The DPP stated that the documents were forged and not authorized by the legitimate directors of Savannah Heights, one of Savannah Cement’s parent companies.
Extradition Efforts for Co-Accused
The DPP has called for a warrant of arrest and an extradition request for Hill Jr. to face charges in Kenya. A Mutual Legal Assistance request may also be sought to obtain his specimen signatures and notarized statements to aid the investigation. Ndeta’s arrest adds a new twist to the longstanding boardroom disputes at Savannah Cement.
Investigations reveal that the squabbles date back to 2014 when Chinese investors exited, selling their stakes to Ndeta’s Seruji firm, making him the majority shareholder. This shift triggered rivalries with minority shareholders Donald Mwaura Kiboro and John Gechanga, who have accused Ndeta of irregular dealings. The investigations further revealed that a 2017 share purchase agreement between Kiboro and Hill Jr.’s Falcon Ventures Holdings LLC fell through due to payment default, leaving Hill Jr. unauthorized to act on behalf of Savannah Heights. However, Hill Jr., in alleged collusion with Ndeta, fraudulently executed corporate guarantee documents to secure the USD 35 million loan.
Azimio Leaders Rally for Ndeta
Following Ndeta’s arrest, prominent Azimio leaders, including Kalonzo Musyoka and Eugene Wamalwa, visited Muthaiga Police Station seeking his release on bond. Ndeta’s troubles come at a critical time, as his company, Savannah Clinker, is the leading bidder for Bamburi Cement’s pending buyout. Savannah Clinker has offered Ksh 25.42 billion for Bamburi’s entire stake, outbidding competitor Amsons. The offer of Ksh 70 per share is a premium over Bamburi’s current and historical trading prices, reflecting Ndeta’s high-stakes approach to business.
Despite these developments, Savannah Cement remains under administration, with its assets being sold to recover debts owed to KCB Group and Absa Bank Kenya. Ndeta has indicated plans to exit as a director of Savannah Cement, even as the investigations and legal battles loom. This arrest could have significant implications for Savannah Clinker’s ambitious acquisition plans and the broader cement industry in Kenya.
