Displaying items by tag: Kenya

Kenya: Peter Kahi of PKF Consulting has been appointed as the administrator of Savannah Cement. This follows the resignation of Harveen Gadhoke, according to the Business Daily newspaper. Gadhoke was appointed as the administrator of the company in November 2022 when Absa and KCB attempted to put it into administration due to combined debts of US$66m. Savannah Cement fought back legally against the attempt to manage it externally but a court rejected this in July 2023.

Zimbabwe: PPC Zimbabwe has appointed Albert Sigei as its managing director from the start of 2024. He succeeds Kelibone Masiyane in the post, according to the Chronicle newspaper. Masiyane was appointed as the managing director of the subsidiary of South-Africa based PPC in 2016, having joined the company in 1994 as a trainee electrical engineer at the Colleen Bawn Plant.

Sigei is currently PPC’s Head of Strategic Initiatives, a post he has held since February 2023. Before this he was the chief executive officer (CEO) of Cimerwa PPC in Rwanda from 2000. He worked for over 17 years for LafargeHolcim and its subsidiaries becoming the CEO of LafargeHolcim Malawi from 2016 to 2019 and the chief operations officer of the East African Portland Cement Company (EAPCC) in Kenya in 2015. Earlier in his career he worked for PriceWaterhousCoopers. A graduate in mechanical engineering from the University of Nairobi, Sigei holds a number of qualifications in accountancy and business.

Kenya: East African Portland Cement Company (EAPCC) plans to sell land in Machakos County close to its Athi River plant, KBC News has reported. During the sale, offers submitted by people currently residing on the land will have priority. Demolition of illegal homes on the land is currently underway.

Kenya: East African Portland Cement (EAPCC) has raised the price of its 50kg bags of cement by around 3%. It said that it made the decision due to higher input costs, according to the Standard newspaper. In a statement David Kilonzo, acting head of commercial at EAPCC, said “Due to the continuous surge in raw materials prices, operating overheads and our commitment to maintain the premium brand quality that our customers have enjoyed over the years, we will be revising our prices upwards.”

Switzerland-based Holcim holds a 42% stake in EAPC through its subsidiaries, the National Social Security Fund (NSSF) holds a 27% stake and the Kenyan government, through the National Treasury, holds a 25% share in the company.

Kenya/Uganda: Bamburi Cement’s profit after tax has been adversely affected by a tax claim in the first half of 2023. The cement producer said that its profit after tax was reduced due to the “settlement of corporation tax matters in Uganda.” Its turnover grew by 11% year-on-year to US$153m from US$138m in the same period in 2022. However, its profit after for tax fell by 7% to US$604,000 from US$652,000. As well as operating plants in Kenya, the subsidiary of Switzerland-based Holcim runs Hima Cement in Uganda.

Reporting by the Business Daily newspaper has revealed that the Uganda Revenue Authority (URA) started a review in 2020 of Hima Cement’s transfer pricing compliance between 2014 and 2018. The URA then raised its corporation tax assessment for Hima Cement in December 2022. Bamburi Cement has also faced additional penalties and interest charges from the Kenya Revenue Authority.

Kenya: East African Portland Cement Company (EAPCC) says that it is ready to resume full-scale cement production at its 600,000t/yr Athi River cement plant. The Standard newspaper has reported that the plant is currently operating at 50% capacity, following refurbishment. EAPCC replaced a 16m-long section of kiln shell in the plant's clinker line, at a cost of US$3.5m. Managing director Oliver Kirubai said that the company raised the funds through the sale of land located in Athi River.

Kirubai said "Our employees have cut back a lot, in a situation where we have been struggling even to pay their salaries. We are now back on our feet." He added "A number of companies owed us millions of Shillings. They have been ordered to pay us by the government. If they honour the agreement, the problem we are facing will be a thing of the past.”

EAPCC says that it expects the scale-up of production at the Athi River plant to help lower the cost of cement for its customers.

Kenya: The government says that it has found a 'strategic investor' to buy a 30% stake in East African Portland Cement Company (EAPCC). Business Daily News has reported that the buyer will acquire shares from the National Treasury, the National Social Security Fund (NSSF) and Lafarge South Africa. The government holds 25% of EAPCC's shares through the Treasury, while the NSSF holds 27% and Lafarge South Africa 42%.

Lafarge South Africa denied that it plans to sell any of its shares in EAPCC. Chief executive officer Geoffrey Ndugwa said "We are not aware that we will be ceding shares.”

The government said that shareholders currently face the decision to sell EAPCC's land, seek a bailout from the Treasury or liquidate the company. It expects shareholders to reach a decision and establish a comprehensive plan for the company by 17 August 2023.

Kenya: Parliament's Finance and National Planning Committee has rejected a petition from the Kenya Association of Manufacturers (KAM) for the removal of the 10% customs duty on imports of clinker. Business Daily News has reported that KAM member Rai Cement said that the duty will force cement plants to shut due to high costs. The committee, however, concluded that the levy aims to encourage local manufacturing, promote exports and create jobs for Kenyans.

National Cement, which operates the 1.95Mt/yr Kajiado cement plant in Merrueshi-Mbirikani, opposed the KAM line by submitting its own petition for an increase in the clinker import duty to 25%.

Kenya: A court has authorised an auction of East Africa Portland Cement Company (EAPCC)'s moveable property to proceed, in order to pay former staff. The Nation newspaper has reported that EAPCC owes the employees US$10m in unpaid wages. The court allowed the auction in favour of 60 claimants. It instructed a further 150 claimants to seek redress by other means, due to insufficient available proceeds from the sale.

Kenya: A court has ruled in favour of Absa Bank Kenya and Kenya Commercial Bank's right to appoint an administrator for Savannah Cement. The banks are seeking to recover US$72.9m owed by the producer. The Star newspaper has reported that a previous court ruling in December 2022 prevented the lenders from appointing an administrator or seizing assets.