This archive report was first published on 9 August 2019.
East African Portland Cement (EAPCC) has withdrawn its notice to lay off all workers, citing a worsening liquidity crisis. The company has been making a daily loss of Sh8 million, making its turnaround strategy untenable.
According to a memo signed by Acting Managing Director Stephen Nthei, the company will restructure and rationalize its staff, with employees required to reapply for their jobs. The company had 448 permanent and 488 contract employees on its payroll as of last year.
Mr. Nthei attributed the company's decline in market share to increased competition and inadequate working capital. The company's board fired erstwhile chief executive Peter Nkeri in May as part of a failed turnaround strategy.
On Thursday, EAPCC announced that it would lay off its entire workforce in a new restructuring programme. However, the company has now withdrawn this notice and will circulate a fresh notice on the intended company restructuring and staff rationalisation in due course.
Mr. Nthei said, “We wish to bring to your attention that the said notice has been withdrawn.”
Employees who are laid off will be offered a severance package of one month’s pay for every year worked as well as a gratuity payment.
Published on August 9, 2019.
