Both ARM and East Africa Portland Cement are experiencing major operational challenges that have inhibited their ability to produce any cement.

"ARM Cement and East African Portland Cement Company, are currently experiencing some problems that have led to ceasing of production," said Apex Capital.

The court battle between Rai Cement and National Cement has stalled the sale of ARM and Stanic Bank has threatened to freeze worker's salaries. The administrators for ARM, PricewaterhouseCoopers report that ARM could lose its Tanzanian subsidiary, Maweni Limestone Ltd.

Administrators also fear that National Cement may back out of the acquisition deal for ARM.