The High Court in Nairobi has temporarily blocked the appointment of Bruno Oguda Obodha as the new Managing Director of East Africa Portland Cement Company (EAPCC).
The ruling, issued on January 3, 2025, came after Caroline Wambui Mwangi filed a case challenging the legality of Obodha’s appointment at the Milimani High Court, citing various irregularities in the selection process.
Justice Bahati Mwamuye issued a conservatory order suspending Obodha’s appointment and any actions stemming from it.
This includes a ban on Obodha from assuming office or performing any duties as CEO until further hearings are conducted.
The case is set for mention on February 12, 2025.
Wambui, the petitioner, argued that the appointment process was opaque and lacked transparency, violating the public accountability principles enshrined in Kenya’s Constitution.
She further contended that despite claims that Obodha’s appointment was recommended by the Public Service Commission, there is no evidence to support this, suggesting the process may have been manipulated.
The controversy surrounding Obodha’s appointment deepened following protests from EAPCC employees.
On December 23, 2024, workers at the company’s Athi River plant staged a walkout, halting operations and barricading the factory’s gates.
They rejected Obodha’s appointment, citing concerns over integrity issues, particularly his alleged business dealings with the cement company. The unrest only subsided after a few days, and operations resumed.
The EAPCC board, which had initially failed to ratify Obodha’s appointment, also raised concerns about conflicts of interest.
The board pointed out that Obodha is a director of two companies that have dealings with EAPCC, one of which is involved in selling a portion of the company’s land.
They also flagged issues of potential fraud linked to a company Obodha is associated with, which submitted forged documents in a security services tender.
In light of these issues, the EAPCC board formally opposed Obodha’s appointment in a letter to the Cabinet Secretary for Industry, Trade, and Investment.
The board highlighted the potential damage to the company’s reputation, especially given its status as a publicly listed entity on the Nairobi Securities Exchange.
Obodha was appointed on December 20, 2024, to replace Mohammed Osman Adan, who had been serving in an acting capacity. While EAPCC continues efforts to stabilize its operations, including selling off prime land to raise capital, the leadership vacuum has only added to the company’s struggles.
The High Court’s ruling has postponed any action on the appointment, setting the stage for further legal battles. EAPCC, a key player in Kenya’s cement industry, is under pressure to resolve its leadership crisis as it aims to reverse its financial woes.
