Market News

Portland to sell Athi River land

munya

Trade secretary Peter Munya. PHOTO | SALATON NJAU | NMG

Ailing East African Portland Cement Company (EAPCC) #ticker:PORT is betting on the sale of 900 acres of prime land in Athi River for a comeback.

Industry, Trade and Co-operatives secretary Peter Munya said the Cabinet had approved the sale of a new inland container depot on the standard gauge railway to Kenya Railways.

“As you know, Kenya Railways Corporation needs land to establish an inland container depot and EAPCC needs the money. Since they are both government entities, an exchange has been agreed on,” said Mr Munya when he visited the EAPCC.

“I want to assure all employees claiming money from the company that their dues will be paid since the solution reached will help the company to make money for these payments as well as sort out other urgent financial needs.”

The loss-making firm has been exploring several major fundraising options to boost its financial health in an increasingly competitive business that has attracted more players.

“Given that the company has enormous resources in the form of idle and fully mined parcels of land, the board expects to be granted necessary approvals to generate value from these parcels,” the firm said early this year.

Mr Munya — who met the embattled firm’s managing director Simon Peter ole Nkeri together with some members of the board including Kung’u Gatabaki, Sarone ole Sena, Charles Mahinda and Moses Cheseto who represents NSSF — said the government was well aware of the challenges facing EAPCC and would offer support.

The company renewed its push for Sh2 billion bailout cash from the government to repair its kiln, warning that further delays would bring operations to a halt.

The kiln, with capacity to produce 3,000 metric tonnes of clinker daily, has been experiencing frequent breakdowns.