Savannah Clinker Chairman Benson Ndeta to spend night in police cell after arrest

Savannah Clinker Chairman Benson Ndeta will spend the night in police custody after he was arrested on allegations of forgery, conspiracy to defraud, and uttering false documents.

Ndeta's arrest is in connection to an alleged fraudulent Ksh.700 million deal to expand Savannah Cement, a matter that has been under investigation since 2019.

The arrest followed the approval of eight charges against him by the Director of Public Prosecutions (DPP), eliciting sharp reactions with Wiper leader Kalonzo Musyoka who claimed he is being targeted over his bid to acquire Bamburi Cement.

Ndeta was arrested at Valley Arcade before being transferred to the Directorate of Criminal Investigations (DCI) headquarters where he was questioned then booked at the Muthaiga Police Station.

The matter started back in 2019 when two directors of Savannah Cement, Donald Kiboro and John Gachanga, reported that the company Chairman Ndeta and other outgoing directors fraudulently made an extract of the board meeting and transferred 4,500 shares to Seruji Limited.

In November 2017, Kiboro transferred 300 of his shares in Savannah Heights to Falcon Venture Holdings LLC, represented by Charles Hill Jr for a consideration of Ksh.700 million.

However, Kiboro claims the purchaser defaulted in payment and the share sale fell through and so there was no transfer of shares in favour of Hills Jr.

It is alleged that Ndeta and Charles Hills Jr used forged documents to secure a loan of USD 35 million dollars for financing of Savannah Cement's factory's expansion project.

Hills Jr, in the papers, had allegedly represented himself as a director of Savannah Heights, a major shareholder in Savannah Cement, to facilitate the scheme yet he had not acquired the company shares.

The DPP directed that Ndeta and Hills Jr be charged with the offences of conspiracy to commit a felony, conspiracy to defraud, forgery, making a document without authority, obtaining execution of a security by false pretences, obtaining registration by false pretences, obtaining credit by false pretences and uttering false documents.

The DPP also wants a warrant of arrest issued and an extradition request be made to the government of the United States to surrender Charles Hills Jr to face charges in Kenya.

Ndeta's arrest, which comes just a week before the close of a bid to take over Bamburi Cement where he is competing with Tanzanian conglomerate Amsons Group, has sparked outrage with opposition leaders claiming it is a plot to edge him out of the deal.

Wiper party boss and Senior Counsel Kalonzo said they’re going to challenge Ndeta's alleged political persecution in court.

The businessman is expected to be arraigned Friday.