East African Portland Cement has announced that it is set to fire all its employees, citing an unprecedented cash crunch.
The company says that it 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 acting Managing Director Stephen Nthei in a letter to employees.
The company in the letter says it is unable to upgrade its equipment to remain competitive in the market.
In a turnaround move, the company which has been on a retrenching spree, last year announced that it was planning to sell its 14,000 acres of land in Athi River to the national government.
The company currently has 2000 employees both on contract and permanent and pensionable terms, and the first batch of those to be retrenched is expected late this month or early next month.
“The company acknowledges that the exercise is a difficult decision but the best option in the present business circumstances,” Nthei adds.