Home General State to bail out cash-strapped Portland Cement by November – Munya

State to bail out cash-strapped Portland Cement by November – Munya

by kenya-tribune

The government on Thursday announced it will revive cash-strapped East African Portland company within the next three months.

Trade CS Peter Munya said the Kenya Railways will take over 900 acres of the company’s land in Athi River in the bailout plan.

EAPCC requires Sh15 billion for resuscitation after reporting losses through mismanagement and political interference.

Munya said he is aware of court cases over EAPCC land ownership dispute, adding that he is confident they will be disposed of.

He warned political interference into the management of the parastatal will not be entertained.

The minister gave a past example when some politicians employed 500 workers in one day at Portland.

“This is serious and should not be entertained. EAPCC plays a major role in the construction sector and hence the need to revive it,” he said.

He said the first tranche of cash from KR will be used in paying the staff that went to court seeking orders compelling the firm to pay them their wages.

“The remaining money will be used to pay out other debts before works of renovation takes off,” Munya said after a tour of the Athi River-based company.

The company owes staff Sh1.4 billion which was awarded by courts over a CBA dispute.

It also owes Japanese International Corporation Agency (JICA) a debt of Sh1.5 billion which was borrowed 18 years ago.

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