Cement company suspended from Nairobi bourse

Standard Reporter

The Capital Markets Authority has suspended shares of East Africa Portland Cement Company(EAPCC) from trading at the Nairobi Securities Exchange.

The sixty-day suspension, the regulator said is to protect investors from the ongoing boardroom wrangles that have gripped the cement producer.

The circus around the company started on 23 December 2011 with the suspension of the Managing Director Kepha Tande and board members over allegations of malpractices.

At the time of suspension on Tuesday the cement company shares were trading at Ksh56.

East African Portland Cement Managing Director Kephar Tande. Photo: EAPCC

A standoff between the East African Portland Cement management and workers persisted, shutting down operations for another day.

And it also emerged that acting Industrialisation Minister Amason Kingi will be moving to the Court of Appeal to challenge the reinstatement of suspended company directors.

On Monday, the factory’s machinery remained eerily silent after hundreds of employees were locked out by riot police for fear of violence after they threatened to block the company’s top management from resuming duty.

But Managing Director Kephar Tande and Board Chairman Mark ole Karbolo vowed that they would not give up their claims to their seats.

Tande and Karbolo had planned to return to the company’s offices in Athi River for the second time on Monday after a court overturned their suspension by Kingi.

But they didn’t show up at the EAPCC’s headquarters where angry employees were camped with police not allowing any vehicle or person to approach the gates.

"The ministry sought to suspend us on alleged malpractices, which have not been disclosed to us. Our attempts to have the matter sorted out by an independent investigation have fallen on deaf ears. We had to resort to the courts," said Tande.

In the meantime, Kingi and his Permanent Secretary Karanja Kibicho on Friday filed a notice on their intention to challenge the judge’s decision to reinstate the officials.

Milimani Commercial Court Judge Joseph Mutava on Thursday dismissed the minister’s application that sought to stay the suspension of Tande and Karbolo.

He said the minister went overboard in making the decision as the Government only has 25 per cent shareholding.

"Not even the addition of NSSF shares grant the Government a controlling quality in the company," the judge said in his ruling.Click here to view video