NAIROBI, Kenya, Oct 2 – Industry Principal Secretary Juma Mukhwana has called greater investment in Kenya’s cement sector to meet rising demand, even as East African Portland Cement Company (EAPCC) battles financial and legal challenges.
Appearing before the National Assembly’s Trade Committee, Mukhwana confirmed that Kalahari Limited has secured rights to acquire a 29.7 percent stake from Swiss-based Holcim, which is divesting from the Athi River–based cement maker.
He said the transaction forms part of a broader plan to revive the struggling EAPCC, which currently controls less than 10 percent of the domestic market.
“Cement demand in the country remains high, and we encourage both local and foreign investors to take advantage of this opportunity,” Dr. Mukhwana told MPs.
But as the government pushes for new investment, unrest among workers continues to dog the company.
Nathan Mutherian, a former employee, has urged the government to overhaul the firm’s leadership, accusing it of mismanagement, unlawful retrenchments, and irregular land allocations.
“The company has let go of employees without compensation, and land has been allocated without proper documentation,” Mutherian said.
Workers’ lawyer Peter Mirrie, of Kicking & Company Advocates, revealed that two major lawsuits have been filed against the company one of which has already been concluded.
In the decided case, ELCA Cause No. 202 of 2014, the court awarded employees Sh1.4 billion in 2015. However, only Sh110 million has been paid, with the balance continuing to accrue interest.
Execution proceedings are underway, with prohibitory orders already placed on some of the company’s fixed assets.
