East African Portland Cement has announced that it will lay off all its employees beginning early September, 2019.
The company says for the last six years, they have been struggling financially, hence it is not possible for them to continue paying its employees’ salaries.
In a statement dated August 7, 2019, the company said they are suffering an average of Ksh8 million in losses daily.
“The company is now faced with the need to restructure its operations, which will include a staff rationaliasation programme to balance the institution’s running costs and current levels of productivity,” said the cement manufacturer in a statement signed by the acting managing director.
“As a result of the restructuring programme, all positions in the company will be declared redundant and employees released,” says East African Portland Cement.
The company maintains the process will follow due procedure set by labour laws in Kenya.
East Africa Portland Cement started sending home its employees in 2016, when they were undergoing financial bottlenecks due to unresponsive market.
The firm posted a loss Ksh1.26 billion in six months to December 2018, up from Ksh969.5 million loss posted in a similar period in 2017.
The cement company has planned a meeting with all its employees on August 16.