This archive report was first published on 3 October 2019.
Published on October 3, 2019, East African Portland Cement Company is facing a severe debt crisis, with a KSh 5.4 billion debt owed to KCB Group.
The cement manufacturer has been defaulting on its obligations for the past two years, prompting the need to seek shareholders' approval to sell land and offset the debt.
According to the company's restructuring plan, East African Portland Cement needs between KSh 20 billion and KSh 28 billion in the next three to five years to clear debt, repair the manufacturing plant, and acquire working capital.
As part of the restructuring plan, the company declared 800 jobs redundant last month to cut costs, with managerial posts among those affected.
Employees were invited to re-apply for the job positions under new terms of service.
The Cement producer expects a drop in its earnings by more than 25% at the end of the financial year.
