This archive report was first published on 8 August 2019.
Published on August 8, 2019, a leaked internal memo from the East African Portland Cement Company (EAPCC) revealed that the company has been incurring losses of up to Sh8 million every day.
The memo, signed by acting managing director Stephen Nthei, attributed the company's poor performance to increased competition, inadequate working capital, and a dilapidated plant and machinery.
According to the memo, the company's market share has drastically reduced over the last three years, impacting negatively on sales and subsequent profitability.
As a result, the company has declared its entire workforce redundant, with all positions to be reconfigured in terms of job consolidation and enrichment, and in line with a leaner organisation structure.
Staff will be given a notice period according to their individual contracts, as well as severance pay for 30 days for every year worked, payment of all accrued gratuity to the date of separation, and payment of their accrued leave days.
They will then be encouraged to compete for the few positions that will be created in the new organisation.
