Regional cement maker ARM Cement PLC’s (NSE: ARM) has been put into administration, PricewaterhouseCoopers under Kenya’s 2015 Insolvency Act.
PricewaterhouseCoopers in a statement on Saturday said it has appointed Muniu Thoiti and George Weru as joint administrators.
“With their appointment, the Administrators shall now take control of the business assets and the management of the affairs of the company without any personal liability,” PWC said.
“By virtue of the Administration, the powers of the directors of the company in terms of dealing and/or transacting with the company’s assets have ceased, unless with the express permission of the Administrators.”
The ARM Board in a statement said they support any orderly process that secures the long-term viability of the company and the future of employees, suppliers and other stakeholders and shall lend our support where called upon “to ensure that this goal is realized.”
In 2017, the outgoing Chief Executive Officer Pradeep Paunrana said unreliable power supply, devaluation of the currency, regulatory uncertainties and challenges from international players all conspired to ruin regional cement maker’s perfect growth strategy.
“To ensure a turnaround of the Company’s performance, the Board has unanimously agreed to make key changes to the leadership of the Company both at management and at Board level. I wish to welcome Mr. Linus Gitahi and Mr. Thierry Metro. Mr. Gitahi will take over as Board Chair while Mr. Metro,s experience in the Cement business will be critical as the board takes the lead in spearheading the turnaround of the company,” the now-retired board chair Eng. Wilfred Murungi.