The fortunes of East African Portland Cement Plc are starting to take asome considerable improvement under the leadership of its’ board chairman Mr. Edwin Kinyua following his resolve to work hand in hand with the management to implement an agreed turnaround strategy that aims at rescuing the listed and only government-owned cement maker from imminent collapse.
The company has been through serious management, technical, operational and even political challenges that nearly saw the giant cement-maker in Athi River almost grind to a halt.
That EAPCC is still running is in itself a testimony that with proper restructuring, the Athi River based firm can return to optimal business – now that construction industry is still witnessing a boom despite the Covid-19 pandemic.
Kinyua has held the office at the ‘Blue Cement’ since 2018 taking over after the office had been vacant for more than a year following the exit of former Board Chairman Mr. William Lay himself a long serving MD at the former General Motors, now Isuzu East Africa.
Kinyua joined the cement maker at a time when it was struggling with huge debts, a bloated workforce, high administration and operations expenses, and an ageing plant among other problems that made it difficult for the firm to compete with other cement makers especially the new entrants that made the market even more competitive for Kenya’s oldest cement manufacturer.
Immediately he took over, the Company embarked on implementation of its turnaround plan which covers the period from Financial Years 2018/19 to 2023/24 geared towards optimizing production efficiency, lowering fixed and operational costs, balance sheet restructuring through unlocking working capital and ultimately increasing all stakeholders value, leveraging on its strong balance sheet.
A number of key decisions such as part sale of its key asset – land – to offset but of its commitment with KCB and other lenders gave the firm some form of lifeline.
It is expected that Kinyua could consider availing more time at the cement firm as a new leader at the firm could complicate the intricate transition.
Cofek will be closely observing the developments at EAPCC and will update consumers as the events unfold.
EAPCC is critical to consumers as it stabilizes cement prices – only in a competitive environment.
Cofek is equally undertaking investigations on the competitiveness of the sector on the ratio in which the top 6 cement firms do production, consume electricity and respective revenues paid to the Kenya Revenue Authority
