East African Portland Cement (EAPC) has warned of a 25% decline in full-year earnings compared to 2018, attributing the shortfall to a sluggish market, rising input costs, and production challenges. The company carries KSh10.8 billion in debt and operates at 50% capacity due to financial constraints, according to chairman Edwin Kinyua.
Kinyua told the Standard newspaper that EAPC is "on its knees" but emphasized that operational reforms could restore viability. The firm has initiated staff layoffs to cut costs while negotiating a 15 billion shilling government bailout through the ministry of industrialization.
Regional cement producers face pressure from international competitors like Nigeria’s Dangote Cement, which has driven down sales volumes. High energy costs and regulatory burdens further strain operations. Rivals Bamburi Cement and Athi River Mining also reported significant earnings declines in the previous fiscal year.
