This archive report was first published on 9 August 2019.
Kenya's cement sector has been hit hard by the slowdown in the construction and real estate industry, with all three listed cement companies posting weak financial results in 2018.
East African Portland Cement, one of the affected companies, has announced a massive restructuring exercise, laying off its entire workforce of roughly 800 employees in an attempt to cut operating costs.
According to Stephen Nthei, the firm's acting Managing Director, the company incurs a daily loss of KSh8 million and posted KSh3.6 billion in operating losses in the last financial year.
Under the new terms of service, the company plans to rehire about 600 workers, but with a 60 percent reduction in their monthly pay.
A memo to the company's employees stated, 'All positions will be declared redundant and the employees released. Subsequently, all jobs will be reconfigured in terms of jobs consolidation and enrichment in line with restructured and leaner organizational structure.'
The company said that restructuring was a difficult decision to make but the best in the interest of the cement producer, and that all workers will get their dues at the time of leaving the company.
This move comes as part of a larger trend of companies in Kenya laying off workers due to the tough economic environment, with EABL, Telkom Kenya, Stanbic Bank, and Portland cement being some of the companies that have announced massive layoffs in the past week.
