Board of EA Portland Cement sends home CEO Nkeri

Troubled cement maker, East African Portland Cement Company (EAPCC) has sacked its managing director, Simon Peter ole Nkeri.

In a memo by the firm’s board, the decision is seen as wider plans by the company to turn around the company to its glory days under tough working environment that has seen other players in the industry continue to record weakening returns.

Mr Nkeri was sent packing following a board meeting held on May 17, according to a memo sent to staff on Monday and will be replaced by long-serving human resource officer, Stephen Kyalo Nthei, in an acting capacity.

“The board resolved to release Simon Peter Nkeri for his duty as the managing director,” said the memo.

EAPCC’s net profit for the six months to December widened to Kes1.26 billion from Kes969 million in the same period last year and has suffered negative repute springing from its employees’ displeasure and flared arrears.

EAPCC employees had last month filed an application at the Court of Appeal to jail the company’s directors for not paying them. The workers argued that, despite both the labor and appellate courts having directed that they be paid, the company directors had failed to comply. Over 400 workers were awarded nearly US$14m under a 2012 – 2015 collective bargaining agreement (CBA).

And in March this year, it was selling land in a government-backed arrangement to try and clear its debts after it made a loss in 2018. The land has been set aside for Kenya Railways to build a rail container terminal.

Trade and Industrialisation Cabinet Secretary Peter Munya said at the time that the government had started work on a rescue strategy for the East African Portland Cement (EAPCC). It has conducted due diligence to reduce the company’s losses and looked into changing the management and upgrading its Athi River plant