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Kenya Railway To Take Over EAPCC’s 900 Acre Land In Bailout Plan, Munya

The government on Thursday announced it will revive cash strapped East African Portland company within the next three months.

Industry, Trade and Cooperatives CS Peter Munya said the Kenya Railways will take over 900 acres of the company’s land in Athi River and bail out EAPCC in the next three months.

EAPCC requires Sh15 billion for resuscitation after the company started making loses ten years ago through mismanagement and political interference, said Munya.

Munya said he is aware of court cases over EAPCC land ownership dispute, adding that once they will have been disposed of KR will take over the 900 acres for warehouses in Athi River.

The CS said he has confidence in the company’s CEO Peter Nkeri but warned political interference into the management of the parastatal will not be entertained.

READ ALSO: EAPCC in Financial Stress, Requires Sh15 Billion Bailout So As To Move On

The minister gave a past example when some politicians employed 500 workers in one day at Portland.

“This is serious and should not be entertained. EAPCC plays a major role in the construction sector and all constructions carried out by the government and hence the need to revive it,” he said.

“The first tranche of cash money from KR will be used in paying out staff that had sought an industrial court justice to get their wages, and the remaining money will be used to pay out other debts before works of renovation takes off,” said Munya after a tour of the company at Athi River town.

The company owes staff S1.4 billion which was awarded by courts over a CBA dispute.

It also owes Japanese International Corporation Agency a debt of Sh1.5 billion which was borrowed 18 years ago.

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