Tensions Mount at EAPC Over Alleged Procurement Irregularities Linked to MD Mohamed Osman Adan

Tensions are rising at East African Portland Cement (EAPC) as a section of the management team accuses Managing Director Mohamed Osman Adan of procurement irregularities and favoritism in awarding multi-million shilling supply deals to close relatives and associates.

Senior staff and members of the management team claim that lucrative contracts for the supply of gypsum, coal, and other key raw materials have been concentrated among individuals linked to the MD, even as the company’s financial fortunes continue to dwindle.

While EAPC has faced mounting operational challenges in recent years, staff allege that Adan’s personal wealth has grown rapidly. He is said to have acquired prime residential and commercial properties in Nairobi’s affluent suburbs of Karen and Westlands during his tenure.

The MD is also accused of maintaining a tight grip on trade union leaders, allegedly using them to quell dissent within the company. According to insiders, union leaders have been instrumental in mobilizing workers’ strikes against management decisions or appointments perceived to challenge Adan’s influence. Despite relying on their support, Adan has reportedly dismissed them privately as “cheap,” a remark that has further fueled discontent.

This strategy was evident in December 2024, when EAPC employees staged protests against the presidential appointment of former MD Bruno Obodha. The demonstrations, which disrupted operations, were seen by many as being orchestrated by forces loyal to Adan, who had been eyeing the top seat himself. Following the protests, the appointment faltered, a development Adan is said to have taken personal credit for.

More recently, Adan has allegedly bragged about his ability to frustrate Holcim Cement Group’s plan to sell its equity stake in EAPC to Kalahari Cement. According to those familiar with the matter, he has boasted of having deep connections within the security apparatus and parliament, claiming that he could derail the transaction “at a very low cost.”

The growing allegations have deepened divisions within the company’s leadership at a time when EAPC is already struggling with stiff competition, rising costs, and declining market share. Calls are mounting for greater scrutiny of procurement practices and governance at the state-owned cement manufacturer, which remains a critical player in Kenya’s construction sector.

Read Also: Murkomen’s Statement Not Only Endorses Corruption In The Police Force But Officially Acknowledges It