Portland boss quits amid boardroom row

East Africa Portland Cement Company #ticker:EAPCC (EAPCC) managing director Stephen Nthei has quit after protracted boardroom wrangles.

Mr Nthei is exiting the listed cement-maker after 14 years at the corner office following a boardroom fallout over sale of two parcels of land to generate more than Sh6.2 billion required to repay a KCB loan.

The Portland board had reached a resolution to dispose of two parcels of land in Mavoko to offset debts and restructure the company.

Sources privy to the matter reckon Mr Nthei favoured the sale of the land done in partnership with KCB Group while section of directors were fronting a foreign investor to acquire the land at market rate, triggering the boardroom fallout.

Mr Nthei goose was cooked in December 2021 when the process for sale of the 745-acre piece of land began in earnest.

The simmering disquiet between a section of the board members and Mr Nthei saw him being told to proceed on 40-day annual leave from February 8.

On the very day Mr Nthei began his leave, the board appointed Daniel Kiprono, then head of internal audit, as the acting managing director of the company with effect from February 8, 2021.

"The board of the company wishes to inform the shareholders that Mr Daniel Kiprono has been appointed as the acting managing director of the company with effect from February 8, 2021,” EAPCC said in the notice attributed to the board. On April 7 when Nthei’s leave elapsed, the board extended his leave by five more days via communication by the acting Managing Director Mr Kiprono.

Mid April when he formally resumed duties he found his office occupied by Mr Kiprono.Prior to his appointment as acting managing director, Mr Nthei served as head of finance with his contract expiring in Oct 2022.The position was also occupied.

For two to three weeks he operated from the acting managing director's office until May 5 when he exited after working for the company for 14 years under "Mutual agreement" terms.