NAIROBI, Kenya, Nov 21 – Troubled East African Portland Cement Company (EAPCC) management says it requires Sh15 billion to effect a turnaround in the fortunes of the giant cement manufacturer.
EAPCC Managing Director and Chairman Simon Ole Nkeri told the Senate Committee on Trade and Tourism that the Sh15 billion of the capital injection will go towards settling employees dues, retire expensive Kenya Commercial Bank (KCB) loans, repay the long outstanding JICA loan, refurbish its plant and settle suppliers’ dues.
He said the company, which has assets worth Sh100 billion, does not require government bailout for its turnaround strategy but might consider disposing of some of its assets.
Nkeri said the company is currently operating below 50 percent of its capacity mainly due to its ageing cement manufacturing plant.
The struggling cement manufacturer said once funding is availed, it will install a crater cooler retrofit that will help cut energy costs.
Last week, the Auditor-General Edward Ouko described the East Africa Portland Cement Company (EAPCC) as insolvent because it cannot pay its debts
The cement producer made an operating loss of Sh3.4 billion in its financial year that ended on 30 June 2018 as revenue fell by over 25 percent year on year to Sh5 billion.