The East Africa Portland Cement Company (EAPCC) board has rejected the appointment of Bruno Oguda Obodha as the company’s new Managing Director (MD), sparking controversy and raising concerns about governance at the NSE-listed firm.
In a board meeting held at the company’s Nairobi offices on Friday, the directors resolved not to endorse Mr. Obodha, who was appointed by President William Ruto on December 20, 2024. The board outlined integrity concerns and conflicts of interest as the primary reasons for their decision.
Allegations of Conflict of Interest
In a letter to the Cabinet Secretary for the Ministry of Industry, Trade, and Investment, board chairman Brigadier Richard Mbithi highlighted emerging issues surrounding Mr. Obodha’s suitability for the role.
The board revealed that Mr. Obodha is a director of Geoner Systems & Massel Real Property, a company currently contracted by EAPCC as a selling agent for a portion of LR No.10424. This dual role presents a significant conflict of interest. Additionally, the board accused Mr. Obodha of involvement in fraudulent activities, citing his directorship in Brumec International Security Company Limited, which submitted a bid for a recent tender with forged documents.
The letter referenced Circular Ref No.OP/CAB.9/1A dated April 20, 2022, issued by the Permanent Secretary/Secretary to the Cabinet and Head of Public Service, as a guideline on integrity standards for appointees.
Board’s Selection Process
The board emphasized that it had recommended three candidates for the MD position following a rigorous recruitment process. During interviews conducted on November 22, 2024, at Taj Towers, Mohammed Osman Adan emerged as the top candidate with a score of 88.15%. Mr. Obodha came in second with 64%, while Dr. Justa Mwangi secured third place with 63.86%.
The board clarified that it was unaware of the red flags surrounding Mr. Obodha at the time of submitting the shortlisted candidates for consideration.
Worker Protests
The appointment of Mr. Obodha triggered unrest among EAPCC workers, who staged a protest at the company’s Athi River plant on December 23, 2024. Operations at the facility were temporarily disrupted as employees voiced their opposition to the appointment. They demanded transparency and accountability from the board and the appointing authorities.
Following the protests, normal operations at the plant have since resumed, but the incident underscored the broader governance issues facing the company.
Implications for EAPCC
The board’s decision not to ratify the President’s appointee reflects its commitment to upholding corporate governance principles and protecting the company’s reputation. However, it also sets the stage for potential conflicts between the board and the government, given the President’s vested authority in making such appointments.
As an NSE-listed entity, EAPCC must maintain high standards of transparency and accountability. Allegations of fraud and conflict of interest can have severe business implications, potentially undermining investor confidence and eroding public trust.
