EAPCC receives backing to sell land assets

Kenya’s East African Portland Cement Co (EAPCC) has received Trade Ministry backing to sell off idle land, which will help the company recoup some of the KES15bn (U$146.3m) it says it needs to avoid a complete shutdown of operations.

Betty Maina of the Trade Ministry has said that a Cabinet memorandum is ready for submission to grant the company approval to sell off its assets. Ms Maina also noted that EAPCC, which has assets worth KES100bn, does not require a government bail-out for a turnaround strategy, according to Daily Nation.

Simon Ole Nkeri, managing director of EAPCC, has stated that it is currently operating below 50 per cent capacity mainly due to its ageing plant.

"The company urgently requires KES2bn to undertake a major shutdown that will necessitate the kiln to be formally stopped and refurbished for at least one to two months," said Mr Nkeri.

The company recently posted a KES7.79bn profit in its half-year results, up from a loss of KES1.47bn in the year-ago period.