Zephaniah Mbugua has not offered himself for re-election at the company’s annual general meeting on June 22.
East African Cables’ #ticker:CABL long-serving chairman Zephaniah Mbugua is set to step down.
Mr Mbugua, who has been a director and chairman of the Nairobi Securities Exchange-listed firm since 2004, has not offered himself for re-election at the company’s annual general meeting on June 22.
EA Cables in the AGM notice did not say who will be nominated as the next chairman but the decision is expected to be made soon.
“The board will appoint the next chairman ahead of the AGM,” Mr Mbugua told the Business Daily in a telephone interview.
Among current directors who could be considered for the post are Bruno Thomas and former Kenya Revenue Authority Commissioner General Michael Waweru.
Private equity fund Kuramo Capital, which recently acquired a 25 per cent stake to become the largest single investor in EA Cables’ parent firm TransCentury #ticker:TCL, is expected to have a say in the appointment of the subsidiary’s chairman.
The entry of Kuramo has seen changes in TransCentury, including the appointment of the PE fund’s chief executive Shaka Kariuki to replace Mr Mbugua as chairman of the infrastructure investment firm. Mr Mbugua remains a TransCentury director.
EA Cables is one of TransCentury’s major assets, with Mr Mbugua and other local individuals owning shares in both companies directly and indirectly.
EA Cables manufactures copper cables and conductors for the energy sector.
The firm has two factories, one in Kenya and another in Tanzania. Last year, the company said that its Nairobi facility was operating below capacity partly due to competition from cheap imports.
The firm has come under intense pressure from cheap imports from India and China, as well as smuggled and often substandard cables.
EA Cables cut its losses by 21.4 per cent in the year ended December, thanks to improved margins.
The company reported a net loss of Sh582.6 million in the period under review, compared to Sh741.2 million a year earlier.
Revenues fell by a marginal two per cent to Sh3.7 billion in what it attributed to falling metal prices in London, with gross profit rising to Sh804.3 million from Sh614 million on the back of lower costs.
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