This archive report was first published on 1 November 2019.
East Africa Portland Cement Company (EAPCC) is facing a major hurdle in its bid to raise Sh45 billion from the sale of its 12,000 acre land in Mavoko, a move aimed at keeping the cement maker afloat.
Published on November 1, 2019, the company's efforts have been delayed due to a shareholder's failure to approve and sign minutes of the September 27, 2019, extraordinary general meeting.
According to EAPCC's acting managing director Stephen Nthei, the land sale process has been given the green light by shareholders, but the company is waiting for one constitutional shareholder to append their signature on the meeting minutes as required by law.
"We are waiting for one constitutional shareholder to append their signature on the meeting minutes as required by law. Board members must conduct due diligence on the minutes before the shareholders' poll results are gazetted," said Nthei.
As the company navigates this challenge, it is also conducting a layoff exercise, with 136 workers so far let go to slash its payroll burden as part of a wider turnaround strategy.
The company aims to reduce the number of employees from 1,000 to 600 who will work under new contracts pegged on a 40 percent pay cut.
"We have abolished some of the earlier positions and come up with new positions under the pay cut. We will only retain employees whose services are vital for the company," said Nthei.
