Gov't calls for more investment in cement industry amid East African Portland Company stake sale

Principal Secretary for the State Department of Industry Dr. Juma Mukhwana has urged greater investment in Kenya’s cement industry to meet rising demand.

Appearing before the Parliamentary Committee on Trade, Dr. Mukhwana confirmed that Kalahari Limited has secured the rights to acquire a 29.7 per cent stake from Swiss-based Holcim, which is exiting East African Portland Cement Company (EAPCC).

He said the acquisition forms part of efforts to revive the struggling cement maker, which currently controls less than 10 per cent of the market.

“Cement demand in the country remains high, and we encourage both local and foreign investors to take advantage of this opportunity,” Dr. Mukhwana noted.

But even as the government seeks to revamp the company, former and current employees have raised concerns over mismanagement and financial instability.

Nathan Mutherian, a former worker, urged the government to overhaul the firm’s leadership, citing retrenchments without compensation and questionable land allocations.

“The company has let go of employees without pay, and land has been allocated without proper documentation,” Mutherian said.

Advocate Peter Mirrie, representing the workers through Kicking & Company Advocates, disclosed that two major cases have been filed in court against the cement firm. In one concluded matter, ELCA Cause No. 202 of 2014, the court awarded employees KSh.1.4 billion in 2015. However, only KSh.110 million has been settled, with the balance continuing to attract interest.

Execution proceedings are underway, with prohibitory orders already placed on some of the company’s fixed assets.

The future of East African Portland Cement now hinges on both new investment and resolution of longstanding legal and financial disputes.