Drama as court halts naming of Lay as cement firm chairman

Boardroom wrangles at the East Africa Portland Cement Company took a new twist on Monday after the government presented Mr William Bill Lay as the firm’s new chairman hours before the High court suspended the appointment.

In what becomes the latest controversy surrounding presidential appointments, the High Court suspended the controversial appointment of Mr Lay pending the determination of a case filed by the outgoing chairman, Mr Mark Kitaanyu ole Karbolo.

“…That the gazette Notice No.821 of the 7th of February, 2014 appointing Mr William Lay as director and chairman of (East Africa Portland Cement) the petitioner herein be and is hereby forthwith stayed pending the hearing and determination of this application,” the High Court ruled.

The stay orders were given just hours after Industrialisation principal secretary Wilson Songa presented Mr Lay as the new EAPCC chairman at the company’s headquarters in Athi River.

In a Gazette notice released Friday, President Kenyatta revoked the chairmanship of Mr Karbolo and appointed Mr Lay to the listed cement manufacturer’s board up to November 7.

“I, Uhuru Kenyatta, President and Commander in Chief of the Kenya Defence Forces appoint William Lay to be the chairman and director of the East African Portland Cement Company Limited, up to November 7, 2014 with effect from January 22, 2014 and revoke the appointment of Mark Kitaanyu ole Karbolo,” the President said in the notice.

Presenting Mr Lay, Mr Songa said the government, which together with the National Social Security Fund own 52 per cent of the cement manufacturer, had appointed Mr Lay to streamline operations at the company that has been the subject of boardroom wars for some months.

PRODUCTIVE PERIOD

“We are looking forward to a productive period under Mr Lay as chair of the board. We encourage Portland cement to be as competitive as any other and not to have one company take the largest share of the market,” said Mr Songa.

However, the court later restrained Mr Lay from taking office and ordered that the current chairman — Mr Karbolo — remains the company’s helm until the High Court determines the case.

“…Mr William lay be and is hereby forthwith stopped from attempting in furtherance of the gazette notice No.821 of 7th February 2014 from assuming office either as a director or chairman of the East Africa Portland Cement pending the hearing of the determination,” the court said.