EAPCC receives government backing to sell land to meet debts

Kenya: The East Africa Portland Cement Company (EAPCC) has received backing from the Ministry of Trade to sell unused land to pay off debts and commitments of nearly US$150m. The ministry said that a cabinet memorandum is ready to grant the company approval to sell off its assets, according to the Business Daily newspaper. The cement producer says it needs the funds to pay employee benefits, pay suppliers, pay off debts to companies including the Kenya Commercial Bank and the Japanese International Cooperation Agency and refurbish its plant. The cement producer says it wants to spend US$19.5m towards refurbishing its plant in a one-to-two month shutdown. At present the unit is operating at a 50% capacity utilisation rate.