Troubled East African Portland Cement Company (EAPCC) #ticker:EAPCC says sale of land to government will bankroll its return to profitability amid a 30.7 percent surge in losses to Sh1.26 billion in the second half of 2018.
Talking at the opening event of the Homes Expo in Nairobi, board chairman Edwin Kinyua said the Athi River-based firm had finalised a land sale deal with the government that will see them hive off 900 acres of land for the establishment of Athi River Inland Container Depot.
He said a new revenue stream was also expected from land sale to the government for development of residential houses and offices for the infrastructure security team at Athi River, Machakos.
“We have also held fruitful discussions with KCB Group which could see us sign a new land deal with KCB Mortgage Division that will see us partner in a residential development. The decision will be known in the next 90 days,” he said.
Friday, Mr Kinyua welcomed the activation of the ‘Buy Kenya Build Kenya’ policy saying the expected 80 million bags of cement deal between the government and contractors that will be hired to put up the 500,000 affordable housing units will inject new demand for cement, giving cement manufacturers a lifeline worth Sh40 billion.
“This means full-steam production, more jobs and upgrades to our machinery. We have since spent Sh500 million on plant upgrade and a further Sh2 billion will be spent on plant upgrade in the next financial year,” he said.
EAPCC is majority owned by the government and NSSF at 52 percent.