The cash-strapped East African Portland Cement Company (EAPCC) in Athi River is still battling its financial troubles, with employees going for the third month without their salaries.
Production at the company is said to have plummeted for the last four months, and it almost halted operations after one of its major kilns broke down.
Nation reports that production is said to have declined significantly to almost a total halt. The company’s major kiln has not been operating, with managers blaming clinker shortage. It has also been accused of delays in remitting statutory deductions to the relevant agencies.
A bloated workforce and declining market share had EAPCC into a cash crisis, compelling the board to start a turnaround strategy in 2019.
In April this year, the company announced an 11% increase in the retail prices of its cement from KSh530 to KSh590 per bag.
In 2019, the board passed a resolution to dispose of part of its 16,000-acres land to raise KSh45 billion to settle debts and turn around the company.
Portland has since transferred 745 acres in Athi River valued at KSh5 billion as it raises money to pay off a KCB loan that had accrued to KSh6.6 billion.
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