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East Africa Portland Board Declines to Approve New MD Over Integrity Issues

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NAIROBI, Kenya – The East Africa Portland Cement Company (EAPCC) is at the center of a leadership storm after its board refused to ratify President William Ruto’s December 20 appointment of Bruno Oguda Obodha as the new Managing Director. 

The move, cited as a response to “integrity issues” and “conflict of interest,” has sparked discussions about governance in one of Kenya’s NSE-listed firms.

In a heated board meeting at the company’s Nairobi offices on Friday, EAPCC’s leadership delivered a pointed letter to the Ministry of Industry, Trade, and Investment. 

The letter, signed by board chairman Brig. Richard Mbithi, highlighted allegations of fraud and ethical conflicts linked to Obodha’s business dealings with the company.

Key among the allegations is Obodha’s directorship at Geoner Systems & Massel Real Property, which was appointed as a selling agent for EAPCC property in December. 

“This poses a clear conflict of interest that should have been flagged during the interview process,” the letter stated.

Adding to the controversy, the board also raised issues about a tender submitted by Brumec International Security Company Limited, a firm tied to Obodha. 

The bid reportedly contained forged documents, further compounding the integrity concerns surrounding his appointment.

The EAPCC board insists it followed due process when submitting three candidates for the Managing Director position. 

Among the shortlisted individuals, Mohammed Osman Adan scored the highest with 88.15pc, while Obodha trailed with 64pc. Dr. Justa Mwangi secured the third spot, earning 63.86pc.

Despite these rankings, Obodha’s appointment was announced by President Ruto, sparking internal and external pushback. The board distanced itself from the controversy, stating it was unaware of the alleged red flags at the time of the candidate evaluations.

The announcement of Obodha’s appointment ignited discontent among EAPCC workers. On December 23, employees at the Athi River plant staged protests, shutting down operations to voice their opposition. 

The unrest highlighted the gravity of the situation and the workforce’s concerns over leadership integrity.

While operations have since resumed, the debacle leaves lingering questions about governance at EAPCC and the implications for other state-backed entities.

George Ndole
George Ndole
George is an experienced IT and multimedia professional with a passion for teaching and problem-solving. George leverages his keen eye for innovation to create practical solutions and share valuable knowledge through writing and collaboration in various projects. Dedicated to excellence and creativity, he continuously makes a positive impact in the tech industry.

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