With East African Portland Cement Company (EAPCC) needing Ksh. 17 billion to return to profit making, the cement manufacturer has opted to lay off 220 employees in an effort to reduce its payroll.
According to a news report by the Business Daily, the company is planning to lay off 27 per cent of its workers by September 2019 with the current employee number at the cement manufacturer standing at 821.
“The management will downsize the human capital in the most humane way immediately we have money to pay the affected workers’ dues as stipulated in the labour act. Those with critical skills will be retained to ensure production efficiency. Re-engineering of the company will put into consideration each employee performance,’’ Stephen Kyalo Nthei EAPCC’s Acting CEO is quoted as having said by the Business Daily.
In terms of raising operational capital, Mr. Nthei, in the Business Daily report, revealed that the cement manufacturer is looking to sell 6,000 acres of prime land in Athi River. So far EAPCC has sold 900 acres of the said land to the Kenya Railway Corporation raising Ksh. 5.2 billion from the transaction.
The company is also seeking to raise operational capital and minimize on energy costs to support its turnaround strategy with Mr. Nthei also revealing that this will be achieved by being more efficient in the use of raw materials to minimize the production of waste. According to the firm’s Acting CEO the company uses coal, electricity and diesel for production, with electricity costing the firm Ksh.70 million to Ksh.120 million monthly.
The strategy by the company’s Board to orchestrate the revival of the broke cement manufacturer began in February when the firm decided to relieve then CEO Simon Peter Ole Nkeri of his duties as Managing Director.