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East African Portland Cement To Fire More Employees


The East African Portland Cement Company (EAPCC) has announced fresh lay offs through voluntary early retirement for all employees.

According to acting managing director Stephen Nthei, the scheme is open to all employees until June 15, 2020.

“We remain focused on managing our cost base and affirm that the restructuring will not have any negative impact on the services and products we offer,” said Mr Nthei Thursday in a statement.

Early this year, the cash-strapped firm fired at least 150 employees in administrative roles. At that time, EAPCC had around 800 workers, and aimed at cutting the workforce by a quarter. The firm had 1,265 employees at the close of June 2017.

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

For the period ended December 2019, EAPCC it spent Ksh281.9 million to pay off the sacked employees.

According to Nthei, the employees who were sacked can to apply for the merged jobs but on a 40 percent salary cut from their previous pay.

The firm recorded a Ksh1.5 billion loss in the six months ending December 2019 as compared to a loss of Ksh1.2 billion in a similar period in 2018.

In 2018, the company EAPCC announced plans to sell its idle land to offset a Ksh15 billion working capital deficit after getting a nod from the Ministry of Trade.

Read: East Africa Portland Cement Sacks 136 Supervisors, Managers

The Blue Triangle cement manufacturer at that time required Ksh15 billion capital booster to pay employees’ dues, repay a long outstanding Japanese International Cooperation Agency loan, refurbish its plant and settle suppliers’ dues.

At that time, the company owed Kenya Commercial Bank  Ksh4.2 billion and supplier obligations of Ksh2.6 billion.

It also owed 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.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email

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