The High Court has accepted the withdrawal of a petition challenging the appointment of Bruno Obodha as the new managing director of East Africa Portland Cement Company (EAPCC), ending a two-month standoff that had prevented the appointee from assuming office.
Justice Bahati Mwamuye said an application by Caroline Wambui Mwangi to bar Mr Obodha from office was withdrawn and the matter closed.
“The petitioner’s notice of withdrawal dated February 10, 2025, is allowed and the petition herein is withdrawn, and consequently the earlier ruling is vacated,” the judge said in a February 12, 2025 ruling.
Ms Mwangi had sought to block Mr Obodha’s appointment on grounds that it lacked transparency and was subject to conflict of interest.
President William Ruto appointed Mr Obodha to the position on December 20, 2024, following a recommendation by the Public Service Commission.
However, he could not assume office after Caroline Mwangi immediately rushed to court to challenge the appointment.
She obtained a conservatory order stopping the implementation of the Executive Order, pending the determination of the petition.
The withdrawal of Ms Mwangi’s petition paves the way for Mr Obodha to take over from Mohamed Osman who has been serving in an acting capacity since last May.
Mr Obodha’s appointment had also been opposed by workers at EAPCC who in December 2024 even barricaded the main gate of the Athi River-based factory, paralysing operations amid claims of bias in his appointment.
As part of the protest against the new appointee, a section of workers on December 23, 2024, shut down the factory kiln and barricaded the factory’s main gate using tractors bringing to a halt the operations in totality.
For the entire day, no trucks were allowed to enter or leave the plant while armed police officers were usually deployed to guard the factory watching helplessly.
In a press statement, the workers claimed that they had no confidence in the new appointee saying he was embroiled in a conflict of interest with the company and he lacked the much-needed technical ability to turn around the company currently on its positive trajectory after years of loss making.
Portland, last year, declared its first dividend in 2011 after returning to profitability, posting a net profit of Sh1 billion in the year to June 2024.
The cement firm declared a dividend of Sh1 per share that would amount to Sh90 million. The company last paid a dividend of Sh0.50 for the year ended June 2011. The firm is seen unlocking more value from its land holdings from both revaluations and potential sales, improving its profitability.
