ARM’s New Owner to Retain Employees After 14 Months of Job Loss Anxiety

National Cement Company, which has formally taken over its troubled rival Athi River Mining, says it will absorb all its employees who had been left in suspense 14 months since their employer was placed under administration.

The announcement by Nerandra Raval, chairman of Devki Group, which owns National Cement, is a major relief to the 1,100 employees of Athi River Mining Company, previously put under administration after running into financial difficulties.

See Also >>The Vicious Wealth Fight in Raila’s Family

Mr Raval said the decision to retain them was anchored in Devki Group’s “resolve to protect their livelihoods and support job creation.”

He was speaking employees of the former ARM Cement (under administration) on MOnday 14th October at the Athi River Plant when ARM Cement administrators PriceWaterhouseCoopers (PwC) handed over the operations of ARM to National Cement.

ARM operations in Kenya include clinker and cement grinding plants in Kaloleni and Athi River. ARM Cement was placed under administration on August 17, 2018.

“We are happy to inform you today that we have been able to complete the ARM acquisition and cleared all the transaction cost amounting to Ksh5 billion to the PriceWaterhouseCoopers (PwC),” said Mr Raval. “We want to play a pivotal role in the government’s Big Four Agenda on manufacturing and affordable housing by having enough workforce to boost manufacturing activities.”

The Competition Authority of Kenya (CAK) on October 4th 2019 gave National Cement Company the nod to take over the operations of ARM Cement despite a pending appeal previous owner Pradeep Paunrana and his associate Jaswant Rai against the sale. The case will be heard tomorrow 16th October 2019.

CAK in a letter signed by CAK Chairman Ambassador Nelson Ndirangu and Director-General Wang’ombe Kariuki asked National Cement to retain 95% or 1,054 of 1,100 of ARM Cement (under administration) employees. Mr Raval.

“National Cement Co. Ltd is pleased to report that we have gone a step further to retain all the employees as we work together to improve the productivity and create more employment in future,” said Mr Raval.

Mr George Weru, Joint Administrator for ARM Cement said the completion of this transaction marks a crucial step for the delivery of its mandate as joint administrators of ARM Cement to realize value for creditors and ensure continuity for the business.

See Also >> A Retirement Experts Shares Secrets to Retiring Rich

“Achieving this important milestone in the administration would not have been possible without the support and cooperation of various stakeholders including the employees, creditors, regulators as well as the various financial and legal advisors that have worked tirelessly to ensure the completion,” Mr Weru said.

The additional workforce effectively makes Devki Group one of the biggest direct employers in the country with 6,000 local workers and the acquisition makes it the second-largest cement manufacturer in Kenya after Bamburi Cement.

Strategic Position

Mr Raval said increased supply of construction materials like steel and cement in the market will significantly reduce prices and overall construction costs to make it easier for more Kenyans to own homes.

The government has committed to construct 500,000 affordable houses in the next five years to alleviate housing shortage in the country and boost the contribution of manufacturing to the economy. “Our strategic position allows us to make significant contributions in these two sectors,” he said.

Next Read >> Real Estate vs. Stocks – Which is the Best Investment?

Latest

Captain William Ruto: President’s Namesake With a Decorated Career

Captain William Kipkemboi Ruto is officially known by the name William Ruto, which also happens to be President William Samoei Ruto’s official name.

Amazing Origin of ‘Pesa’ and How Shilling Overtook Foreign Currencies

With the establishment of individual Central Banks for the three East African countries, Kenya began printing and minting its own shilling currency notes under the mandate given to the Central Bank of Kenya in 19676.

Engineer Turned Away by 6 Banks Now Owns Multi-Billion Premium Hotel

In just 12 years, PrideInn Hotels & Resorts has grown from one hotel with 28 rooms to eight hotels in five counties.

Resignation of 3 Standard Group Directors Signals Big Trouble

Standard Group Directors: Media house announced through its Nairobi Securities Exchange filing that Dr Githinji Gitahi - who was an Independent, Non-Executive Director - had quit effective 10th November, 2023.

Follow Us

Newsletter

Don't miss

Tusker Oktobafest Rolls East African Cultures into One

From regional events across Kenya to inaugural gatherings in Uganda and Tanzania, and the Tusker Oktobafest grand finale in Nairobi, the festival harmonized traditions, celebrated diversity, and highlighted the rich cultural tapestry of the East African culture

Lupita’s Little Brother Junior Nyong’o Charting His Own Path in Acting

Junior Nyongó, who is also a musician and a DJ and now a graduate of UC San Diego with an MFA in Acting, is crafting his own solid path in the world of acting with roles in major theatre productions.

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.

DStv Beats CNN, BBC To Become Most Admired Media Outlet In Africa

DStv, MultiChoice Group’s leading broadcast service, has been named...

MultiChoice Revises Subscription Fees For DStv, GOtv

MultiChoice has announced price adjustments on some of their...

Octopizzo: How I Make My Money

"I've been doing this for 12, 13 years. It reaches a point where you no longer need to prove that you can make a hit record," he stated.
BT Correspondent
BT Correspondenthttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke

Captain William Ruto: President’s Namesake With a Decorated Career

Captain William Kipkemboi Ruto is officially known by the name William Ruto, which also happens to be President William Samoei Ruto’s official name.

Amazing Origin of ‘Pesa’ and How Shilling Overtook Foreign Currencies

With the establishment of individual Central Banks for the three East African countries, Kenya began printing and minting its own shilling currency notes under the mandate given to the Central Bank of Kenya in 19676.

Engineer Turned Away by 6 Banks Now Owns Multi-Billion Premium Hotel

In just 12 years, PrideInn Hotels & Resorts has grown from one hotel with 28 rooms to eight hotels in five counties.

LEAVE A REPLY

Please enter your comment!
Please enter your name here