East African Portland Cement Company (EAPCC) is set to sell its idle land to offset a Ksh15 billion working capital deficit after getting a nod from the Ministry of Trade.
The Blue Triangle cement manufacturer requires Ksh15 billion capital booster to pay employees’ dues, repay a long outstanding Japanese International Cooperation Agency loan, refurbish its plant and settle suppliers’ dues.
“A Cabinet memorandum to this effect has been prepared jointly by the Cabinet secretaries to the National Treasury and the Ministry of Industry, Trade and Cooperatives, which is due for submission towards the end of November,” said Trade PS Betty Maina.
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According to the PS, EAPCC has over Ksh100 billion assets, and does not require government bailout for its turnaround strategy.
In half year financial results, the company posted a Ksh7.79 billion net profit up from a loss of Ksh1.47 billion in the previous financial year.
The company currently owes Kenya Commercial Bank Ksh4.2 billion and supplier obligations of Ksh2.6 billion.
It also owes employees over Ksh2.6 billion in gratuity dues and compliance with a court order on contract staff dues.
The company is currently operating below 50 percent of its capacity mainly due to its ageing plant.
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