This archive report was first published on 5 September 2019.
East African Portland Cement Company is facing financial difficulties and has decided to sell part of its idle land to raise working capital. The company has scheduled an extraordinary general meeting for September 27, 2019, to seek approval for the sale.
According to a memo from the board chairman, the company is seeking to dispose of two parcels of land, totaling 745 acres and 1329.95 acres, located in the Mavoko sub-county in Machakos. The sale of the land is expected to enable the company to clear all loan obligations, raise funds for operational and plant refurbishment purposes.
However, the company will need to evict squatters from the land before it can be declared ready for sale. The funds raised from the sale will be used to service a Sh5.38 billion loan from KCB.
East African Portland Cement Company has a history of selling land to raise capital. In 2018, the company sold 900 acres of land to Kenya Railways Corporation for Sh5.2 billion.
The company has been undergoing a restructuring drive to contain runaway operation costs.
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