NSE halts cement firm shares trading over leadership woes

East African Portland Cement Company shares have been suspended from trading at the bourse.

The drastic decision was taken because of the failure by the company to inform the stock market of management changes at the cement firm.

The Nairobi Securities Exchange (NSE) says it halted the trading of Eapcc shares from the bourse until an official clarification over the wrangles is received from the cement manufacturer.

This means that shareholders will not be able to trade in their Eapcc shares until the orders are lifted.

“We have already communicated to them (Eapcc) and we expect a response at the earliest opportunity,” NSE head of market and product development, Mr Donald Ouma told Daily Nation.

The decision, Mr Ouma said, was based on media reports over the wrangles that have put the cement manufacturer in the spotlight.

Stock market rules require a listed company to inform the Capital Markets Authority and NSE of any material decisions that can affect the share price movement within 24 hours.

CMA is yet to make any official communication on what course of action it will take with the top management said to be away on holiday.

Mismanagement

Eapcc, which recently became a private company after the government reduced its shareholding from 52 per cent to 48 per cent, through the National Social Security Fund (NSSF) that cut down its stake from 27 per cent to 23 per cent, has had seven managing directors in less than eight years.

On Friday last week, acting Industrialisation Minister Amason Kingi sent on compulsory leave Eapcc managing director Kepher Tande and the entire board over alleged mismanagement and fraud that has caused the company losses worth millions of shillings.

The Minister appointed the company’s head of strategy and performance improvement, Mr Peter Korir as the acting managing director until forensic investigations are carried out.

However, Eapcc’s board chairman Mark Ole Karbolo said the board would not heed the minister’s directive.