Troubled East Africa Portland Cement Company (EAPCC’s) efforts to raise Sh45 billion from the sale of its 12,000 acre land in Mavoko have hit a snag.
The move to keep the cement maker afloat has encountered a hitch as one of its shareholders is yet to approve and sign minutes of the September 27, 2019, extra ordinary general meeting last month.
“The land sale process has been given a go- ahead by shareholders. We are waiting for one constitutional shareholder to append their signature on the meeting minutes as required by law. Board members must conduct due diligence on the minutes before the shareholders polls results are gazetted,’’ said EAPCC’s acting managing director Stephen Nthei.
This comes as the firm conducts a layoff exercise, with 136 workers so far let go to slash its payroll burden as part of a wider turnaround strategy.
The company aims to reduce the number of employees from 1,000 to 600 who will work under new contracts pegged on a 40 percent pay cut.
“We have abolished some of the earlier positions and come up with new positions under the pay cut. We will only retain employees whose services are vital for the company,’’ said Nthei.
Most of those dismissed are in management, raising queries on how departments are operating without their leaders.
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