The Athi River Mining (ARM) has announced plans to sell its subsidiaries in Rwanda and South Africa.
The amount gained from the sales will be used to settle debts of $284 million (approximately Ksh30 billion) owed to creditors in Kenya ($170 million), Tanzania ($110 million), and Rwanda ($4 million).
The firm plans to sell its Kigali Cement plant in Nyarugenge District, Rwanda, which produces 100,000 tonnes a year.
ARM Cement was placed under administration in August 2018 after failing to meet its financial obligations. The company was also suspended from trading at the Nairobi Securities Exchange (NSE).
The Capital Markets Authority (CMA) extended the suspension from NSE on May 8, 2020.
The sale of the subsidiaries could now mean that the firm will permanently delist from NSE.
ARM Cement’s Kenya operations were sold to another Kenyan company, National Cement, for $50 million last year.