East African Portland Cement Co offers early retirement

To avoid total collapse, Kenya’s East African Portland Cement Co (EAPCC) is offering voluntary early retirement for its 800 employees, reports The East African.

EAPCC Acting Managing Director, Stephen Nthei, said the programme is a one-time event open to all employees. Through the programme, the company hopes to achieve sustainable operational costs at a time when the company is struggling to remain afloat amidst mounting losses and declining cement sales.

“The industry has witnessed a significant decline in productivity, resulting in depressed revenues and manpower utilisation leading to unprecedented job losses,” said Mr Nthei in a statement.

EAPCC says that the cost of the workforce is high in terms of productivity and wants to reduce its number of employees to below 600.

The company’s profits have dropped due to falling sales as it has been challenged by competition and rising operational costs.