East African Portland Cement has announced plans to sack all of its staff in what it terms as restructuring and staff rationalization of the loss making company which has lost up to Kshs 8 million in the last three years.
In a memo signed by acting Managing Director Stephen Nthei, the company says it will declare all positions redundant,its employees will be released and all the jobs be reconfigured in terms of job consolidation and enrichment.
In the last three years, the company’s market share has also reduced drastically affecting negatively on sales and profitability, the firm posted a 30 percent increase in loss to Sh1.26 billion for the half year ended December 2018.
“The company is now faced with the need to restructure its operations, which will include a staff rationalization programme to balance our running costs and current levels of productivity.
“We take this opportunity to request a meeting to discuss this process with all staff on Frida August 16 as we acknowledge that the exercise will be a difficult decision but the best option in the present business circumstances,” says the acting managing director, Stephen Nthei.
Early 2019, the Government had initiated revival of the firm by changing top management and modernizing its plant in Athi River.
Industrialization Cabinet Secretary Peter Munya said that the pioneer cement firm has the potential to stand on its feet again if it gets the said cash injection which was projected to be at least Sh15 billion .
“We as the Government are kin on reviving EAPCC and we have carried out due diligence on the existing loopholes leading to the losses,’’ he said.
The company is crumbling under KSh10.8 billion debt and has always blamed a sluggish market, high cost of inputs, and production difficulties for the poor performance.
It previously laid off over 620 workers who are demanding dues amounting to Sh1.5 billion.
The Kenyan-based company joins other companies which has laid off employees including East African Breweries Limited,National Bank of Kenya, Stanbic Bank , Telkom Kenya among others.
Featured Image Courtesy: Kbc.co.ke