Savannah Clinker Chairman Benson Ndeta will remain in police custody overnight following his arrest on charges of forgery, conspiracy to defraud, and the use of false documents.
Ndeta’s arrest is linked to an alleged fraudulent transaction involving Ksh.700 million aimed at expanding Savannah Cement, a situation that has been under investigation since 2019.
The arrest occurred after the Director of Public Prosecutions (DPP) approved eight charges against him, prompting strong reactions from Wiper leader Kalonzo Musyoka, who asserted that Ndeta is being targeted due to his intentions to acquire Bamburi Cement.
He was apprehended at Valley Arcade and subsequently taken to the Directorate of Criminal Investigations (DCI) headquarters for questioning before being booked at Muthaiga Police Station.
The investigation traces back to 2019 when two directors of Savannah Cement, Donald Kiboro and John Gachanga, alleged that Chairman Ndeta and other outgoing directors fraudulently created a record of a board meeting and transferred 4,500 shares to Seruji Limited.
In November 2017, Kiboro had transferred 300 of his shares in Savannah Heights to Falcon Venture Holdings LLC, represented by Charles Hill Jr., for a sum of Ksh.700 million. However, Kiboro contends that the buyer failed to make the payment, resulting in the cancellation of the share transfer to Hill Jr.
It is alleged that Ndeta and Charles Hill Jr. utilized forged documents to obtain a loan of USD 35 million to finance the expansion of Savannah Cement’s factory.
Hill Jr. is accused of falsely presenting himself as a director of Savannah Heights, a significant shareholder in Savannah Cement, to facilitate this scheme, despite not having acquired any shares in the company.
The Director of Public Prosecutions (DPP) has instructed that Ndeta and Hills Jr be charged with several offenses, including conspiracy to commit a felony, conspiracy to defraud, forgery, unauthorized document creation, obtaining execution of a security through false pretenses, acquiring registration through false pretenses, obtaining credit through false pretenses, and the utterance of false documents.
Additionally, the DPP has requested the issuance of an arrest warrant and the submission of an extradition request to the United States government for the surrender of Charles Hills Jr to face charges in Kenya.
Ndeta’s arrest, occurring just one week prior to the conclusion of a bid to acquire Bamburi Cement, where he is competing against the Tanzanian conglomerate Amsons Group, has incited significant backlash, with opposition leaders alleging that it is a scheme to eliminate him from the bidding process.
Kalonzo, the leader of the Wiper party and a Senior Counsel, has stated that they intend to contest Ndeta’s purported political persecution in court.
The businessman is anticipated to be presented in court on Friday.
