This archive report was first published on 27 September 2019.
On September 27, 2019, the High Court dealt a blow to billionaire Jaswant Rai's bid to buy troubled cement maker Athi River Mining (ARM) for Sh6.5 billion.
The court ruled in favor of rival businessman Narendra Raval of National Cement, allowing him to acquire Kenya's second-biggest cement maker for Sh5 billion.
Justice Mary Kasango cited that Mr. Rai was not part of the court process challenging the sale and that his late inclusion in the Sh6.5 billion offer introduced 'hidden' clauses the court was not privy to.
She noted that the applicant's guarantee was conditional or dependent on a 'consortium agreement' whose terms were unknown to the respondents and the court, leaving the transaction exposed and vulnerable.
ARM, once the second-biggest cement maker in Kenya, was put under administration last August by some of its creditors over debts totaling Sh19 billion.
The court ruling stalls Mr. Rai's bid for a larger stake in Kenya's cement business, which he had established through a smaller cement plant in Awasi, Kisumu County.
