Court suspends appointment of new Portland CEO

High Court Judge Bahati Mwamuye suspends appointment of Bruno Oguda as director of East Africa Portland Cement Company. [File, Standard]

The Nairobi Milimani High Court has issued a conservatory order suspending the appointment of Bruno Oguda Obodha as the East Africa Portland Cement Company (EAPCC) Managing Director, two weeks after his appointment by President William Ruto.

The conservatory orders, issued by Justice Bahati Mwamuye on Friday, January 3, are pending an inter partes mention of case No. HCCHRPET/E006/25M scheduled for February 12, 2025, following a petition filed by Carolina Mwangi, citing a conflict of interest.

"Pending the inter partes hearing and determination of the Application dated 02/01/2025, a Notification of Presidential Action [II] dated 20th December 2024 and/or any other instrument, as the Managing Director of the 2nd Respondent, gazette notice, document or authority, designating, nominating or appointing Mr. Bruno Oguda is the same designating, nominating or appointing Mr. Bruno Oguda Obodha, the Interested Party herein," part of the conservatory order reads.

Last year, the EAPCC board through a letter to the Ministry of Industry, Trade and Investment CS, argued that Obodha faced integrity issues, urging the CS to reconsider his appointment.

The letter, signed by Board Chairman Brig (Rtd) Richard Mbithi, raised concerns that Obodha was involved in business dealings with Portland and had been linked to fraud.

"Whereas EAPCC appointed M/s Geoner Systems & Massel Real Property on 22nd December 2023 as a selling agent for a portion of LR No. 10424, it is noted Mr. Bruno Obodha is a director of the company, creating a conflict of interest that should have been flagged during the interview," part of the letter states.

The board exonerated itself from blame, stating that it was unaware of the red flags at the time of submitting three names for consideration.

On December 23, EAPCC workers shut down the company’s Athi River plant in protest against Mr. Obodha’s appointment. Operations have since resumed at full capacity.