, NAIROBI, Kenya, Aug 9 – East African Portland Cement has withdrawn the notice it issued Thursday firing its entire workforce.
In a statement, EAPCC Managing Director Stephen Nthei says the company shall be making a fresh replacement notice on the intended company restructuring in due course.
“The company currently has 750 workers, but we want to bring the number down to 600,” Nthei said, adding that part of the company’s operations is suffering from redundancy.
Additionally, the company says it will allow its workers to take pay cuts as well as reapply for their jobs on new terms.
The loss-making cement manufacturer had announced the layoffs plans Thursday on account of massive losses amounting to Sh8 million per day.
The move was expected to affect both unionisable and non-unionisable workers in the company.
The cash strapped company reported a 30 percent increase in loss to Sh1.26 billion for the half year ended December 2018 up from the Sh949.2 million loss it posted six months before.
This was attributed to an increase in output prices, a sluggish market and production challenges, arising from the company’s tight working capital position.
Analysts have attributed the recent development by the once giant cement maker to a depressed economy that has been mainly affected by the capping of interest rates.
“As far as the EAPCC is concerned, the completion of the first phase of the Standard Gauge Railway has affected many cement manufacturers, as well as the decline in the real estate sector have been contributing factors,” Genghis Capital Analyst Gerald Muriuki said.
Story written by Margaret Njugunah and Julie Owino.