The East African Portland Cement Company (EAPCC) is set to layoff some of its employees just months after sending some other 150 employees packing, this time though the company has opted to sack the employees through early voluntary retirement.
In a memo to staff Acting Managing Director Stephen Nthei said, the scheme is open to all employees until June 15, 2020.
“We remain focused on managing our cost base and affirm that the restructuring will not have any negative impact on the services and products we offer,” Nthei said in a statement on Thursday.
Early this year, the cash-strapped firm sent packing more than 150 employees despite working with a bloated workforce of only 800, after hemorrhaging talent from June 2017 when it had 1265 employees.
In Financial Year 2019, EAPCC spent Ksh281.9 million to pay off the sacked employees.
According to Nthei, the employees who were sacked can to apply for the merged jobs but on a 40 percent salary cut from their previous pay.
The cement factory posted a Ksh1.5 billion loss in the six months ended December 2019 vis-à-vis a loss of Ksh1.2 billion in a similar period in 2018.
In 2018, EAPCC announced plans to strip some of its idle land to offset a Ksh15 billion working capital deficit after getting the greenlight from the Ministry of Trade.
The manufacturer required Ksh15 billion capital booster to pay employees’ dues, repay a long outstanding Japanese International Cooperation Agency loan, refurbish its plant as well as settle suppliers’ dues.
The Blue Triangle Cement Manufacturer owed Kenya Commercial Bank (KCB) Ksh4.2 billion and owed suppliers Ksh2.6 billion.
It also owed employees over Ksh2.6 billion in gratuity dues and compliance with a c*********r on contract staff dues. The company is currently operating below 50 percent of its capacity mainly due to its aging plant.