The decision to fire all employees of the loss-making cement maker East African Portland Cement was approved by the cabinet.
Trade Cabinet Secretary Peter Munya has said the company has a bloated workforce that is gobbling up the company’s revenue.
East African Portland Cement Acting Managing Director Stephen Nthei Thursday issued a redundancy notice to all its workers urging them to reapply afresh for their positions.
The listed firm said it has been making a loss of Ksh 8 million daily.
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All workers regardless of their job group have been directed to reapply afresh for their jobs.
The company which employs close to 800 people says, it only needs half the workforce. CS Munya says this part of a turnaround process that has been okayed by the cabinet.
The company also plans to dispose of some of its assets in a bid to settle its dues to employees and pay more than 5 billion shillings owed to debtors.
The East African Portland Cement which started operations in 1935 has undertaken various turnaround steps in the past.
In the last 10 years, the company has not cracked the code of profit-making despite multiple turnaround plans.
Three years ago, the company fired 1,000 employees and reduced its staff count to 500 people.
In 2018, the company was at it again, sending home 520 employees with the company saying it opted for non-renewal of contracts due to a bloated workforce whose wage bill was unsustainable.