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East Africa Portland Cement Makes A U-turn On Firing All Employees

East African Portland Cement Company , edwin kinyua
East African Portland Cement Company plant in Athi River. /FILE

East Africa Portland Cement company has withdrawn its notice to workers that sought to declare all positions redundant.

Managing director Stephen Nthei says that communication on the matter will be issued later, saving staffers from lay-offs which was to see all employee fired by the end of this month.

“We wish to bring to your attention that the said notice has been withdrawn,” read the memo signed by acting Managing Director, Stephen Nthei.

Read: EAPCC To Sell Idle Land To Offset Ksh15 Billion Capital Deficit

Announcing the move in a memo to employees a day ago, Nthei said that the company is making a daily loss of Ksh8 million, painting a bleak future for the Blue Triangle cement manufacturer.

“As a result of the restructuring program, all positions in the company will be declared redundant and the employees released. Currently we suffer daily losses of up to Ksh.8 million. In the last three years, the company’s market share has also dropped drastically impacting negatively on sales,” said Nthei.

The company revealed that  it is unable to upgrade its equipment to remain competitive in the market.

Read: East African Portland Cement Set To Fire All Employees

“In the last three years, the company’s market share has drastically reduced, impacting negatively on sales and subsequent profitability. This may be attributed to many reasons, key among them being increased competition and inadequate working capital,” added the memo.

At least 936 staffers were targeted in the exercise, 448 permanent and 488 contract employees.

The company in 2016 fired 1,000 employees, leaviing it with only 500 employees only to rehire some of the retrenched employees later.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email


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