Merali Family's Sameer Africa Closes 7.1 Million Land Sale To Slash Debt

Sameer Africa finalized all documentation in a 7.1 million land sale delayed by Kenyas digital land registry transition, unlocking critical funds to retire debt and strengthen its balance sheet.

The Merali family-led firm posted its highest profit in 11 years as foreign exchange gains and lower finance costs offset weaker tire and automotive product revenues.

Sameer Africas assets rose 16.1 percent to 9.1 million in 2024, while shareholder equity surged 56 percent, signaling a stronger financial footing for future growth.

Sameer Africa, the Nairobi-based tire manufacturer majority-owned by the influential Merali family, has finalized all necessary documentation in the sale of a 3.75-acre parcel of land valued at over 7 million after a three-year delay caused by regulatory hurdles. This marks a milestone in the companys strategy to retire a portion of its debt and stabilize its balance sheet.

The Nairobi Securities Exchange-listed firm disclosed that the land, historically carried on its books at Ksh15 million 108,000, was sold for Ksh921 million 7.11 million, providing a significant cash injection. Proceeds will be used to reduce outstanding liabilities, which had surged to Ksh857.4 million 5.98 million by June 2023, up from Ksh782.5 million 5.46 million six months earlier.

The sale had been stalled since 2021 due to a transition by Kenyas Ministry of Lands to the Ardhisasa online platform, which delayed registration and final approvals. Management expects the completion to deliver meaningful savings on finance costs and reduce exposure to foreign exchange losses, which have weighed on performance in prior years.

Sameer Africas broader real estate portfolio, acquired decades ago, has seen substantial appreciation. In 2022, the fair value of its land and commercial properties was assessed at Ksh7.58 billion 54.6 million, dwarfing the firms market capitalization of Ksh662 million 4.8 million at the time.

For the year ended December 2024 , Sameer Africa posted its highest profit in over a decade, buoyed by unrealized foreign exchange gains as the Kenyan shilling strengthened against the U.S. dollar. Net profit jumped 460.83 percent to Ksh259.89 million 2.01 million, up from Ksh46.34 million 0.36 million a year earlier.