Tanzanian firm Amsons eyes Kenya's renewable energy sector

Amsons Group MD Edha Nahdi and Bamburi Cement CEO Mohit Kapoor (right) when they announced the integration kickoff. [File, Standard]

Tanzanian conglomerate Amsons Group has said it plans to venture into Kenya’s energy sector as it seeks to deepen its foray in the country following the acquisition of Bamburi Cement and a controlling stake in East African Portland Cement. 

The announcement that it is eyeing Kenya’s energy sector came following the signing of a Sh78 billion ($600 million) deal to build a 1,000 megawatt solar power plant in Zambia. 

The firm, widely known for its manufacturing and petroleum products distribution capacity in sub-Saharan Africa, signed the deal through its subsidiary Africa Power Generation, a Zambian-registered renewable power-generating company. 

The deal was formalised by Amsons Group Managing Director Edha Nahdi in the presence of Zambia’s President Hakainde Hichilema at State House, Lusaka. 

While Amsons is widely known for its cement brands and logistics networks, the firm said the investment signals a major strategic pivot into utility-scale power generation in strategic markets, including Kenya, leveraging its regional presence and financial strength. 

Speaking after signing the deal, Nahdi said the firm “is also exploring renewable energy opportunities in Kenya, Tanzania and Uganda, among other sub-Saharan African countries”. 

Amsons has recently made major inroads in the Kenyan market following the acquisition of Bamburi Cement.

In the transaction completed in December 2024, the firm bought a 58.6 per cent stake from Holcim Group as well as other retail and institutional investors, with its shareholding at Bamburi now standing at 96 per cent. 

It has also recently completed the purchase of a significant stake in East African Portland Cement (EAPC). 

Just this week, the firm confirmed completion of the transaction to acquire National Social Security Fund’s 27 per cent stake in the cement producer, pushing its shareholding in the State-linked firm to 68.7 per cent. 

“The firm’s investments in Zambia underscore a commitment to deepen pan-African investments aimed at catalysing economic development,” said Amsons in a statement. 

At the Zambia State House engagement ceremony, President Hichilema said Amsons has the capacity to invest in such a large project aimed at stabilising the nation’s energy requirements. 

“This 1 GW investment is a game-changer. It directly addresses our national crisis by providing reliable, clean, and non-hydro dependent power,” he said. 

“The sheer scale of this project, facilitated by our government’s commitment to efficiency and transparency, ensures that we are decisively on track to meet, and possibly exceed, our target of adding 1,000 megawatts of new solar power to the grid.” 

Zambia is targeting 10GW of new power capacity by 2030.

Prolonged droughts

The $600 million investment represents one of the largest single foreign direct investments (FDI) in Zambia’s and Sub-Saharan Africa’s power sector, and aims to address the region’s quest to reduce over-reliance on hydro power.

Recent prolonged droughts, worsened by climate change, have severely impacted water levels at major hydroelectric facilities, leading to persistent electricity deficits and load shedding.

The firm has in recent past tried to establish itself as a regional firm and beyond Tanzania, it is solidifying its presence in Kenya, where it now controls a significant share of the cement market through Bamburi and EAPC, but also has operations in countries like Tanzania, Zambia, Malawi, Mozambique, the Democratic Republic of Congo, and Burundi. 

The firm has also diversified its offering from the bulk oil and petroleum imports that had been its mainstay for years, growing into cement production, flour milling, energy, logistics and real estate.