East Africa Portland Cement Company (EAPC) has challenged President William Ruto’s authority to appoint its Managing Director, declaring his intervention as unlawful. The dispute arose after a December 2024 press release from the President’s office named Bruno Oguda Obodha as the new MD a move the company insists violates corporate governance rules.
EAPC, in its court response, emphasized that the President is not a board member and holds no legal mandate to make executive appointments for the company. According to court filings, the board alone holds exclusive powers to appoint a Managing Director, rendering Ruto’s move an illegal usurpation of its authority.
The cement firm further revealed that Obodha failed to meet the required 70% interview score, securing only 64%, and allegedly concealed conflicts of interest. In contrast, Mohamed Osman Adan the only candidate who met the threshold was lawfully appointed by the board on February 12, 2025, and has since assumed office.
The case was triggered by lawyer Apollo Mboya’s petition, which seeks to compel EAPC Chairman Richard Mbithi to recognize Obodha as MD, citing the President’s directive. However, EAPC’s legal team, led by Roselyne Ominde, argues that Mboya’s suit disregards corporate procedures and risks undermining the board’s independence.
The controversy highlights growing tensions between state influence and private sector governance in Kenya. Legal experts warn that presidential overreach in corporate appointments could set a dangerous precedent, eroding investor confidence.
As the High Court prepares to rule on the matter, the outcome could redefine the boundaries of executive power in state-linked enterprises. For now, EAPC maintains that Adan remains the legitimate MD, while Obodha’s fate hinges on judicial interpretation of the President’s role or lack thereof in corporate leadership appointments.
The case continues to draw scrutiny, with stakeholders keenly watching whether the judiciary will uphold corporate autonomy or defer to political authority.
