Govt to bail out East Africa Portland Cement Company
The Government plans to sell off land owned by the East Africa Portland Cement Company in a two-phase bailout plan.
The company is in a 15 billion shillings cash crunch and has been operating at half its capacity.
Trade and Industrialisation Cabinet Secretary Peter Munya said the Government will sell off 900 acres belonging to the Company in Machakos County to Kenya Railways who will utilise the land for a modern container terminus. 16,000 more acres will be disposed of later to fully clear the company’s Ksh 15 billion debt.
East Africa Portland Cement Company owes its workers Ksh 1.5 billion in gratuity, Ksh 4.5 billion to Kenya commercial bank and the rest is owed to other creditors. The cement manufacturer recently dismissed 620 workers in a turnaround strategy that was aimed at reducing the wage bill that amounted to over Ksh 200 million in monthly salaries alone.
The Cabinet Secretary says the government will keenly monitor the company’s management to ensure it is back to full operation to contribute to the country’s industrialisation agenda.