Departing ARM Cement CEO to stay on as board member

The CEO of ARM cement, Pradeep Paunrana will stay on as board member once he is replaced, the company has announced.

The cement manufacturer has already identified its next CEO and is in advanced contactual negotiations but is yet to make an official announcement as to the identity of Mr. Paunrana’s successor.

“As founder shareholder and entrepreneur, I will be an active Board member and support the incoming CEO and the management team in strengthening stakeholder relationships with suppliers, customers and the government in all the three East African countries where we operate,” said Mr. Paunrana.

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As part of a management shake-up, ARM Cement which has been ailing financially has tapped up former Nation Media Group CEO Linus Gitahi to be chairperson of its board of directors. The company has also recruited former France Minister of Cooperation Thierry Metro as a non executive, non independent member of its board.

Mr. Gitahi replaced  Eng. Wilfred Murungi who had served as chairperson and director of the company for 24 years while Mr.Metro replaced Deputy Managing Director Surrendra Bhatia.

Both Eng. Murungi and Mr. Bhatia retired on August 13.

In a farewell letter to shareholders Eng. Murungi said the changes were part of a strategy by ARM to fend of recent financial struggles.

“In common with the experience of fast growing companies worldwide, the Company has experienced turbulent operational and financial challenges, but has been able to overcome these challenges through the resilience and sustained efforts of the board and management.”

Once Kenya’s second-largest cement maker behind LafargeHolcim’s Bamburi Cement, ARM has seen its market share plunge to just 10 percent after a clinker plant it built in Tanzania in 2014 failed to generate income.

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A public statement in June blamed power rationing, inadequate supply of coal from local sources and hyper competition as the reasons for ARM’s financial downturn.