Displaying items by tag: Kenya

Kenya: The Competition Authority of Kenya has granted China-based Zou Fengqi and Oman-based Raysut Cement exemption from regulatory approval on a recent application in line with competition guidelines. The Business Daily newspaper has reported that the application stated that Zou Fengqi plans to acquire a 60% stake in Raysut Cement’s business in East Africa.

Raysut Cement operates grinding plants in Mogadishu, Somalia and Somaliland.

Kenya: Athi River Mining (ARM) Cement is preparing for liquidation and delisting from the Nairobi exchange following the failure of its administrators to revive operations. The East African newspaper has reported that PricewaterhouseCoopers advised liquidation in a letter of 19 April 2021. The joint administrators reached their conclusion based on the understanding the producer will not otherwise be able to settle in full with its creditors. The company plans to liquidate on 30 September 2021.

ARM Cement went into administration in August 2018 following a default on a loan. Its operations in Kenya were sold to National Cement in October 2019. China-based Huaxin Cement acquired its Tanzanian subsidiary Maweni Limestone in May 2020. In 2019 ARM Cement’s administrators fought an attempt by minority shareholders to buy out its majority stake in South Africa-based Mafeking Cement. In January 2021 the administrators received approval from the Rwanda Development Board’s Registrar-General to commence the liquidation of Kigali Cement.

Kenya: Bamburi Cement has appointed John Stull as a non-executive director following the resignation of Pierre Deleplanque. The latter was appointed to the company’s board in mid-2018 and is its Area Manager - East, South Africa & Indian Ocean.

Stull, an American national, is the Head of Strategy and Mergers & Acquisitions for LafargeHolcim Middle East & Africa region, and has over 28 years’ experience in the LafargeHolcim Group having joined it in 1992 as Operations Manager, Alpena Michigan - USA. In 1996 he was promoted to Vice President, Manufacturing - USA Region, and thereafter held several leadership positions including: President, Missouri Division, Ready Mix and Aggregates; Senior Vice President, Marketing and Supply Chain - Lafarge France; Regional President, Sub-Saharan Africa; President and Chief Executive Officer (CEO) LafargeHolcim USA; CEO US CEM; and prior to his latest role as President & CEO -LafargeHolcim Philippines. He holds a Bachelor of Science Degree in Chemical Engineering from the University of Akron and an Advanced Management Degree from Harvard University.

Kenya: Bamburi Cement, Savannah Cement, Ndovu Cement and Rai Cement have written to the National Treasury opposing a proposal by the Kenya Association of Manufacturers (KAM) to raise tariffs on clinker imports to 25% from 10% at present or to implement at outright ban on imports. The cement producers say that increasing the tariffs would lead to unfair competition and destroy investments, according to the Kenyan Star newspaper. However, the KAA argues that the move will promote the manufacturing sector and create jobs.

Seddiq Hassani, the managing director of Bamburi Cement, said in a letter from the cement producers to the government, that they opposed the review at the current time but that they conceded that it was the right direction for the industry in the longer term to safeguard local manufacturing. He added that the four companies should be given a window of between four and five years to set up their own integrated plants to provide a predictable policy framework for investors.

Kenya: East African Portland Cement (EAPCC) has appointed Daniel Kiprono as its acting managing director. He succeeds Stephen Nthei, who was appointed to the temporary post in mid-2019. No reason for his departure has been disclosed. Nthei replaced Simon Peter Ole Nkeri, who was reportedly relieved of the role, in mid-2019. Kiprono has worked at EAPCC for over 20 years in a variety of roles.

Kenya: The Court of Appeal has stopped directors and accounting officers at the East African Portland Cement (EAPCC) from being sent to jail due to the company’s failure to pay contract workers about US$12m as agreed in a collective bargaining agreement. The judges noted that the cement producer had already paid US$0.8m as a gesture of goodwill, according to the Business Daily newspaper. Members of the Kenya Chemical & Allied Workers union brought the legal case against the EAPCC accusing it of paying them less than permanent staff.

Kenya: Bamburi Cement has decided against the planned sale of its Mombasa precast concrete blocks plant. The Standard newspaper has reported that the company previously failed to sell the asset to Yellow House Limited, because the buyer failed to meet conditions precedent to the agreement. The Competition Authority of Kenya (CAK) had approved the sale in March 2020.

Kenya: A court in Nairobi has reinstated Jacob Omondi Guma as a production manager for the East African Portland Cement Company (EAPCC). It follows the company’s decision to appoint Japheth Ombogo to the position, according to the Business Daily newspaper. The judge annulled the company’s decision on the grounds that it was marked by irregularities and may have been ‘malicious.’ The court ruled that Guma may stay in post until his three-year contract ends in September 2022 unless otherwise lawfully terminated. He was removed from the role in November 2019 after serving for just two months. The cement producer denies the allegations and says it removed him from the post due a lack of qualifications.

Kenya: LafargeHolcim subsidiary Bamburi Cement has made a donation of personal protective equipment (PPE) worth US$46,800 to coronavirus rapid response teams and 11 health facilities in Kajiado, Kilifi, Kwale, Machakos and Mombasa Counties. The company said that the donations include “N95 masks, surgical gloves, coveralls, goggles, face shields and shoe covers.” This will constitute part of the US$140,000 donations promised by the company to “support the fight against the spread of Covid-19.”

Group managing director Seddiq Hassani said, "During the cheque handover to the Covid-19 Emergency Response Fund Board earlier this year, we committed to continued support to Covid-19 management efforts and therefore, with the escalating numbers of Covid-19 cases, today we fulfil our promise with this donation to our frontline healthcare workers who continue to serve with fortitude by ensuring that they remain safe while serving Kenyans. We value their priceless role in battling Coronavirus.” He added, “We care for the community and we are determined to be part of the solution to this pandemic and make a difference for the benefit of us all.”

Kenya: East African Portland Cement Company (EAPCC) has threatened “recovery proceedings” in relation to the alleged unlawful extraction of building materials on the producer’s land in Mavoko County by China Road and Bridges Corporation (CRBC). EAPCC says that it has twice contacted the construction company, which is engaged in building the Nairobi Expressway toll road, to order it to desist, according to the Business Daily newspaper.

Acting managing director Stephen Nthei said, “The company cannot violate the country’s laws when constructing a commercial road. Any mining activities will devalue our land when we are eyeing prospective buyers. We might be forced to institute recovery proceedings against this company.”

The cement producer is seeking a buyer for the parcels of land, which are also home to illegal squatters.