East African Portland Cement must design a financial recovery strategy by August 17th this year, according to directions from the National Assembly Public Investments Committee on Commercial Affairs & Energy, to the National Government.
The Committee gave this directive during a roundtable talk with Trade Principal Secretary (PS) Dr. Juma Mukhwana and Company Managing Director Mr. Oliver Kirubai, in a recent meeting also attended by representatives of the Managing Trustee National Social Security Fund (NSSF) and the Area Manager-East South Africa Holcim Limited.
This Public Investment Committee on Commercial Affairs and Energy has been probing the financial affairs of state-owned East Africa Portland Cement.
The listed cement maker’s recovery plan is to be led by the Trade PS, assisted by his National Treasury counterpart, the East African Portland Cement Management, and the Company shareholders.
An audit query by the Auditor General for the period 2018/19 and 2020/21 revealed that East African Portland Cement Company’s current liabilities exceeded their current assets by KSh.13.8 Billion, at the close of the 2020/21 financial year.
East African Portland Cement to sell idle land
According to Trade PS Dr. Mukhwana, the state had drafted a raft of measures to revive the Company, including the regularization of 907 acres of land under occupation by squatters who were willing to pay KSh. 5 billion.
The PS said the Company had also reached an agreement with the National Government to dispose of a parcel of idle land for the construction of 4,272 affordable housing units at KSh. 20 billion.
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