East African Portland Cement Company (EAPCC) CEO Simon Peter ole Nkeri has been fired, in what the board termed as a turn-around strategy for the cash strapped firm.
His position will be taken over by human resource officer, Stephen Kyalo Nthei, in an acting capacity, according to a memo shared with staffers on Monday.
“The board resolved to release Simon Peter Nkeri for his duty as the managing director,” read the memo in part.
In November last year, EAPCC announced the sale of its idle land to offset a Ksh15 billion working capital deficit after getting a nod from the Ministry of Trade.
The Blue Triangle cement manufacturer requires Ksh15 billion capital booster to pay employees’ dues, repay a long outstanding Japanese International Cooperation Agency loan, refurbish its plant and settle suppliers’ dues.
The company currently owes Kenya Commercial Bank Ksh4.2 billion and supplier obligations of Ksh2.6 billion.
It also owes employees over Ksh2.6 billion in gratuity dues and compliance with a court order on contract staff dues.
The company is currently operating below 50 percent of its capacity mainly due to its ageing plant.
Last year, the government through Trade PS Betty Maina ruled out a possibility of government bailout of the listed firm, saying that EAPCC has over Ksh100 billion assets, and does not require government bailout for its turnaround strategy.