Portland cement board chair sued over MD appointment

East Africa Portland Cement workers protest against employment of a new managing director, on December 23, 2024. [File, Standard] The ongoing leadership wrangles at East Africa Portland Cement (EAPC) have escalated to court, with a city lawyer suing the EAPC board chairman Richard Mbithi. Lawyer Apollo Mboya accuses Brigadier (Rtd.) Mbithi of attempting to install a new managing director in defiance of President William Ruto's December last year decision to appoint Bruno Oguda Obodha to the role. In his petition filed at the Milimani High Court, Mboya seeks an order allowing Oguda to continue performing his duties as managing director, as per the President's appointment. He further accuses Mbithi of overstepping his authority by attempting to reverse the recruitment process and overturn the appointment of the managing director. Mbithi is accused of attempting to short changing the appointment of Oguda with Mohamed Osman Adan. Mboya's court papers describe Mbithi's actions as not only insubordination but also an attempt to publicly ridicule President Ruto's decision. "The actions of Mbithi were not only an act of insubordination but also a disrespectful move aimed at undermining His Excellency the President of the Republic of Kenya," Mboya states in his petition. The lawyer also highlights the negative impact of the ongoing leadership conflict on the company's operations. He notes that the company's JD system, used for factory operations and financial transactions, was mysteriously disabled for two days in the last week of February 2025, causing major disruption and bringing the company to a standstill. Mboya argues that the disruption has raised serious concerns within the company, especially after a tumultuous Board meeting on February 26, 2025, where controversial decisions were made regarding the appointment of a new Managing Director. The lawyer demands immediate transparency from the company's board, demanding critical information regarding both the system failure and the handling of the new MD appointment. The lawyer states in his court papers that last week also wrote a formal letter to Mbithi, requesting full disclosure on why the JD system was disabled and whether the disruption was part of a deliberate effort to undermine the company during a period of internal governance instability. "The disabling of the JD system coincided with a period of immense tension within the company, and we have reason to believe that this disruption was no accident," Mboya wrote. The system failure came after the Board's attempt to impose Mohamed Osman Adan as the substantive managing director, counteracting the President's previous appointment. After meeting the required qualifications, Oguda applied and was shortlisted. He attended an interview on November 22, 2024, and a subsequent meeting later that day resolved to forward the names of the top three candidates to the Cabinet Secretary for the Ministry of Investment, Trade, and Industry. The names forwarded included Oguda, Mohamed Osman Adan, and Dr. Justa Mwangi. However, in a letter signed by Chairman Mbithi, the Board recommended Adan for the role of MD. On December 20, 2024, a presidential press release confirmed the appointment of Oguda as MD. Mboya asserts that on December 27, 2024, Mbithi attempted to countermand the President's decision by writing to the CS Trade, suggesting a change in the nominated candidate. He argues that the MD recruitment process should be competitive, transparent, and based on verifiable procedures approved by the Board. Further violations of the process include Mbithi's refusal to allow Oguda to assume his duties even after Attorney General Dorcas Odour informed the CS Trade on February 28, 2025, that earlier court conservatory orders against the President's appointee had been withdrawn. Mboya argues that unless the court intervenes, Mbithi will continue his insubordination, violating governance policies and ridiculing the President.

Portland cement board chair sued over MD appointment

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