Cabinet Secretary for Industrialization Adan Mohammed speaks at a past function. FILE
By MICHAEL OMONDI
IN SUMMARY
Cabinet secretary advised to renew Mr Tande’s term, but ministry officials fight plans.
Industrialisation Cabinet Secretary Adan Mohamed has found himself at the centre of the struggle between the government and East Africa Portland Cement Company (EAPCC) board over the decision to renew the chief executive’s term.
The board of the cement firm advised Mr Mohamed on September 16 to renew the term of Kephar Tande whose current three-year term is set to expire mid next month.
Senior officials in the ministry have been pushing for a review of the board’s August 8 decision that offered Mr Tande a new three-year term and have asked the CEO to step down, according to people familiar with the matter.
This is a pointer that the government has not given up on its bid to have a new team shepherd Portland cement after a failed attempt to oust the directors including Mr Tande in December 2011.
“There is an attempt to reverse the board’s decision on grounds that the minister was not put on the loop,” said a person familiar with EAPCC boardroom proceedings.
On Monday, Mr Mohamed added a fresh twist to the events when he said that he is yet to receive communication from the board over Mr Tande’s appraisal.
Documents seen by the Business Daily show that Mark ole Karbolo, the chairman of EAPCC, informed the minister of the board’s decision to renew the chief executive’s term.
“This is to formally advise you that the board of EAPCC sitting on August 2013 resolved to renew the contract of the managing director Kephar Tande for a further three years with effect from November 16,” read the letter sent to Mr Mohamed on September 16.
“This is now to request you to kindly gazette his appointment as per procedure.”
The minister said that the advice was yet to reach his desk: “I am yet to be notified by the board over the term of the managing director. A decision will be made once the assessment report is ready and in the context of the performance of the business,” added Mr Mohamed.
Mr Karbolo and Mr Tande declined to comment. Mr Tande is the seventh managing director to serve EAPCC over the past decade with all of them apart for one having quit following differences either with the board or the government.
He has enjoyed the support of the board, especially from directors representing the National Social Security Fund (NSSF), Bamburi Cement and its parent company Lafarge.
The government has two seats on the seven-member board and has relied on NSSF, which has a 27 per cent stake, to push its agenda both at EAPCC boardroom and the shareholders meeting.
Bamburi Cement and its parent company Lafarge have a 41.7 per cent stake in the firm. Their representatives on the EAPCC’s board are Kenya Airways CEO Titus Naikuni and lawyer Hamish Keith.
In December 2011, the government unsuccessfully attempted to disband the cement maker’s board, accusing the directors of poor governance.
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