Portland Cement annulled decision to fire all staff

The East African Portland Cement Company (EAPCC) has drawn notice of staff restructuring and rationalization that had previously been issued.

The company has tried to declare 800 employees to be excessive, with the aim of cutting its inflated wage bill.

But on Friday, the company announced that it had canceled the plan and would issue a new circular in the future.

RESTRUCTURISATION

"Notifications of new replacements, regarding the intended company restructuring and rationalization of staff, will be circulated in due course," said a statement made by EAPCC managing director Stephen Nthei.

EAPCC is stuck in negative working capital with liabilities due in the next 12 months exceeding current assets of Sh7.3 billion. This has the potential to make it difficult to fulfill short-term obligations.


However, Mr Nthei said in a telephone interview the EAPCC relied on cash inflows from land sales to Kenya Railways Corporation (KRC). He said about Sh3 billion still in circulation.

LAND PRIME

"We have received a commitment to pay this money and we want to match it with the gradual implementation of this program," said Mr Nthei.

In 2018, EAPCC sold 900 acres of its main land to KRC for Sh5 billion for an inland depot that is currently under construction. It has received an advance of Sh1,2 billion.