This archive report was first published on 8 August 2019.
August 8, 2019 - East African Portland Cement Company, a cash-strapped manufacturer based in Athi River, has declared all positions redundant citing an unprecedented cash crunch.
The company, which has been on a retrenchment spree since 2016, has been struggling to stay afloat due to increased competition and old machinery.
According to a letter seen by Citizen Digital, acting Managing Director Stephen Nthei attributed the company's financial woes to increased competition and a drastic drop in market share over the last three years.
“Currently we suffer daily losses of up to Ksh.8 million. In the last three years, the company’s market share has also dropped drastically impacting negatively on sales,” Nthei said in the memo to all employees.
The company has estimated that it has around 2000 employees, both on contract and permanent and pensionable terms, who will be affected by the decision.
However, to continue with operations, the jobs will be reconfigured and consolidated to a leaner organisational structure.
