The Government has cancelled a Sh1.6bn East African Portland Cement Company (EAPCC) tender citing "serious flaws" in the tendering process.
 
The stoppage blocks the giant cement firm from going ahead with the construction of a new cement mill.
 
The Public Procurement Complaints, Review and Appeals Board says that the procurement process for the EAPCC tender was flawed and that the laid down rules on procurement and public tendering were not correctly followed. 
 
The ruling was made last week after a successful petition launched by New Baron & Leveque. 
 
The board’s action is however expected to have a negative bearing on EAPC’s financial projections and its ability to feed an expanding cement market. 
 
The construction of the cement clinker would have increased its capacity by 100 per cent and boosted its market presence in the Great Lakes region and Southern Sudan whose demand for cement has outstripped supplies. 
 
However, the ruling is likely to take a direct hit on EAPCC’s earnings and the firm is unlikely to meet demand for cement in the market.