Bruno Obodha, the newly appointed Managing Director of East African Portland Cement (EAPC), has moved to court to contest a conservatory order issued on January 3 that temporarily halts his assumption of office. The order, granted by Milimani Judge Bahati Mwamuye, followed a petition filed by Caroline Mwangi, who argued that Obodha’s nomination violated the company’s regulations.
Mwangi claimed that the appointment process contravened EAPC’s bylaws, which reserve such decisions for the Board of Directors. She also cited a press release dated December 20, which indicated that the nomination was based on recommendations from the Public Service Commission (PSC). Mwangi argued that the PSC has no constitutional or statutory role in the affairs of EAPC, a company listed on the Nairobi Securities Exchange. She warned that interference with the company’s operations could harm investors and cause losses to shareholders.
In response, Obodha, through his legal representative, senior counsel Prof. Tom Ojienda, filed an application seeking to either suspend or set aside the order. He contends that the court lacked jurisdiction to issue such an order, as the matter falls under employment and labor disputes. Obodha pointed out that a similar case was already pending before the Employment and Labour Relations Court, where a judge had declined to issue orders to block his appointment.
Obodha’s team claims that Mwangi failed to disclose the ongoing case when seeking the January 3 orders. They argue that had she disclosed this fact, the court would not have granted the orders. Obodha further asserts that the orders were granted under false pretenses, which could negatively affect the company’s operations.
This legal challenge raises critical questions about governance and regulatory oversight in listed companies. The outcome could set a precedent for handling similar disputes in the corporate sector. The case is scheduled for further mention on January 20, and both parties will await a decision on whether the order will stand or be overturned.
