This archive report was first published on 9 August 2019.
On August 9, 2019, East African Portland Cement (EAPCC) announced a major restructuring plan that would see the entire workforce laid off. However, in a sudden U-turn, the company has suspended the redundancy notice.
According to a memo signed by acting Managing Director Stephen Nthei, the company will instead circulate a replacement notice outlining the restructuring and staff rationalization plans.
Portland Cement, listed on the Nairobi Securities Exchange, has been making losses of up to Ksh8 million daily, impacting negatively on revenues and profitability. The company has 448 permanent and 488 contract employees on its payroll, with the former being offered a severance package of one month's pay for every year worked as well as a gratuity payment.
Mr. Nthei attributed the company's losses to increased competition and inadequate working capital, stating that the company's market share has drastically reduced in the last three years, impacting negatively on sales and subsequent profitability.
Portland Cement has a history of layoffs, having fired 1,000 employees in 2016 and laying off 520 employees last year to deal with the bloated workforce.
— Brenda Gamonde, Business Today reporter ([email protected])
