The Kenyan government has announced plans to restructure East Africa Portland Cement Company (EAPCC) to address chronic financial losses and operational failures, according to Industry and Trade Cabinet Secretary Peter Munya.
Munya attributed the cement producer's decline to years of mismanagement, stating the firm had operated on negative working capital and struggled to compete. "The company that once dominated the construction sector is now nonviable," he said during a visit to EAPCC's Kibini quarry in Kajiado East, where local disputes had halted operations.
The firm's board recently placed managing director Simon Nkeri on leave following a Sh1.2 billion land sale to Kenya Railways. Proceeds from the transaction will fund raw material procurement and settle unpaid staff obligations from 2018. Acting MD Peter Nthei now oversees operations amid ongoing financial distress.
Board chairman Edwin Kinyua revealed EAPCC incurred daily losses of Sh7.6 million in 2018, with a projected Sh100 million deficit for 2019. The company is negotiating with lenders like Kenya Commercial Bank to restructure debt while planning to modernize aging machinery to boost production by 40%.
Local access disputes at the Kibini quarry, a key raw material source, have further complicated recovery efforts. The government's intervention follows years of declining performance, including a 2018 revenue of Sh5.7 billion against Sh5.8 billion in expenses.
