The East African Portland Cement Company (EAPCC) has caused a stir by refusing to ratify the appointment of Bruno Oguda Obodha as its new Managing Director. During a board meeting held on Friday at the company’s Nairobi offices, the board raised serious concerns about Obodha’s integrity and potential conflicts of interest, effectively halting his appointment. The decision has drawn attention to the issues surrounding governance at one of Kenya’s key cement manufacturers.
The board’s objections, communicated in a letter to the Cabinet Secretary for the Ministry of Industry, Trade, and Investment, outlined several critical issues related to Obodha’s professional conduct. The letter, signed by the board Chairman Brigadier (Rtd) Richard Mbithi, referenced a 2022 circular from the Office of the President that highlighted Obodha’s involvement in business dealings with the company and his alleged involvement in fraudulent activities.
One of the key points raised was Obodha’s directorship in companies that had dealings with EAPCC. The letter pointed out that Obodha had been linked to a selling agent contract with the company for a property transaction, presenting a conflict of interest. Furthermore, the board cited Obodha’s association with a company, Brumec International Security Company Limited, which had submitted a bid for security services to EAPCC but was found to have included forged documents. This revelation has further raised doubts about Obodha’s suitability for the position.
The board clarified that when they submitted three names for consideration, they were unaware of these issues. However, the emerging red flags have significant implications for EAPCC, particularly as a listed entity on the Nairobi Securities Exchange (NSE). These concerns have fueled doubts about the governance of the company and its future direction.
In a separate development, EAPCC workers staged a protest on December 23, 2024, against Obodha’s appointment by shutting down the company’s Athi River plant. The protest highlighted the discontent within the workforce, further complicating the situation for the cement company. Operations at the plant have since resumed, but the unrest underscores the challenges facing EAPCC in managing internal and external stakeholders.
The board’s decision to reject Obodha’s appointment and the ongoing protests signal significant governance challenges at East African Portland Cement, leaving the company at a crossroads as it navigates these controversies.