Blog Archive

Wednesday, August 09, 2006

mukhisa kituyi's comments on EAPC & Ole Mapelu don't make sense!

Trade and Industry minister, Dr Mukhisa Kituyi, on Wednesday questioned whether immediate former Managing Director of East African Portland Cement (EAPCC), Mr Zakayo ole Mapelu, sought clearance from the Ministry of Foreign Affairs to travel to Southern Sudan.

What the hell????

Kenya is NOT a communist state or authotarian state that one has to get PERMISSION to travel abroad! Is kituyi smoking peyote?

Kityui, who tabled supporting documents, also questioning Mapelu’s decision to promise the people of Southern Sudan that the cement manufacturer would construct schools in the region.

Promising to build schools ni BIASHARA. When BAT (UK controlled company) or EABL (UK controlled company) or Bill Gates Foundation decide to donate funds they can do it ANYWHERE they want!

In any case, most Firms donate as a means of ADVERTISING. Tulijenga shule na cementi kutoka East Africa Portland! Chances are EAPCC would have provided the cement while aid agencies the rest!

Crown Berger (Mozambique/Malawi controlled) donates paint to various Kenyan institutions in order to drum up additional business! It gets into the press & greases the path into a new market.

Ole Mapelu wants to tap into the HUGE S. Sudan market! The aid money will flow in for new roads, schools & hospitals! They will need cement. Better to sell Kenyan cement than Egyptian.

kituyi is the Trade & Industry minister but doesn't sound like one!

Mapelu, while on a tour of the region, also allegedly promised that his company would train the local people in masonry, construction, and other skills in and outside Kenya as part the company’s social corporate responsibility.

That is a SMART idea. By training masons & construction, you get more folks using, GASP, cement!!! This is DEMAND PULL economics... Without guys who know how to build using cement, there will be little cement consumption!

If only Kenya had trained contractors to use cement for roads then we could boost the local producers instead of importing bitumen.

Ole Mapelu is being accused of donating 4,000 bags of cement to S. Sudanese officials without "Board" permission. At most, this is an oversight BUT the value is nominal considering Ole Mapelu is looking at exporting & selling MILLIONS of bags as well as building a factory in Sudan!

Does kituyi prefer the Sudanese use local mud instead of Kenyan cement?

With "friend" like kituyi does Kenya need enemies?

There is something very FISHY going on... And it ain't the fish that are stinking!


bankelele said...

don't make sense at all. However it is true that Mapelu and other parastatal bosses must STILL seek governemnt clearance to travel overseas on business.

Ms K said...

Well said. I watched Kituyi and thought, what a right idiot!! Not to mention the news programme I was watching went ahead to rubbish his statements one by one. Like his inflation of the costs of the trip.

Whether parastatal bosses require "permission" or not, how can they hire a world-class manager and then expect to micro-manage and basically babysit him? That's why the country's best brains shun civil and government jobs.

(Wild guessing and speculation ahead!)

You do know what is happening don't you? The govt of the day is just getting ready to pora mali. Replace all parastatal bosses with their people so that they have a free hand in the cookie jar come election time.

But that's just me. And what do I know right?

Prousette said...

@Ms K you are right on the money! Exactly what they want to do.
In addition Kituyi probably thinks he should have been the one telling S Sudan all those things Ole Mapelu did and looking like a very concerned neighbor in the process. He's feeling upstaged.

Kagz said...

1st...What % in EAPC does the govt own???
If high & the guy was going on official business then i agree with Bank Man that they mut seek clearance.

Its very bureaucratic (sp) and micro-manager-ish but thats Kenya for you.

M.Kituyi is all about vitisho baridi. He is hype & nothing else. A good communicator though!

Kagz said...

Me again...

If govt has a large stake then its right for O.Mapelu to be accused of donating 4,000 bags of cement to S. Sudanese officials without "Board" permission.

I agree that donations are a PR & Advertising strategy but ITS NOT his company & must follow the chain of command.

Thats the price you pay for working for the govt.

Ken said...

Kituyi may be a learned guy and all but truly speaking his economic sense is very minute.
His performance is influenced too much by his political ambitions. company board issues never become press releases, but since he got that ministry he has turned it into his political pulpit and hardly does anything without getting the press to focus their cameras on him despite how idiotic it may be.

gathinga said...

people must be acutaly aware of the enviroment they operate in. when mapelu acepted that job, he knew it was political appointment qualifications aside. such an appointment comes with a price. he should have been ready to pay... to not toe the line and expect mercy from a government clearly bent on controlling more and more of state resources is naive

Anonymous said...

which begs the question what the point of the govt flaotong shares on companies on the stock exchange and retaining a controlling stake ?
doesnt make sense at all. either sell all , and in worst case scenario maintian.a minority position

coldtusker said...

@gathinga - It was NOT a political appointment but the CEO was headhunted. The first choice (CEo fo KTDA) did not take up the job when KTDA made him a better offer.

LaFarge is a 41% owner of the firm & I am sure they wouldn't want yesteryear's corruption & inefficiency thus initially the government went along with an "independent" CEO.

NSSF owns 27% & Treasury 25% thus an effective 52% control. NSSF's stake should ideally be independent BUT all NSSF managing trustees who show independence are sacked!

LaFarge & minority shareholders have little say! It seems that when Ole Mapelu did not toe the line, his problems started!

I disagree that a CEO of a parastatal should do the government's bidding.

The business of Business is business.

Anonymous said...


: Lafarge is running a monopoly and should have been investigated by the commissioner for price fixing ;-) and monopolies

: the MD of Bamburi lied when he said that their shareholding in Bamburi had caused the shares in the firm to rise to the current high level.

: The truth is that it is the arrival of Ole Mapelu and his team of 5 managers and the changes that staff executed which raised confidence in the firm and its operations.

: The arrival of this team resulted in the rise of the EAPCC shares from 49 to its current level of over 110+, where it has been (or above) since with one hiccup.

: This team was the first team at EAPCC to turn around the effects of the disastrous Japanese Yen loan that the company took and which has cost it significant amounts in FOrex losses.

: Ole Mapelu and his team had a performance contract. Their suspension and eventual departure had nothing to do with either their contract with the firm or with their performance. If anything, their courage in performing to the terms of their contract is what has resulted in their being dismissed - * they challenged Bamburi and indirectly LaFarge in Sudan (it is common? knowledge that Bamburi, totally owned by LaFarge, is building up its production capacity to 1,000,000 -million - tonnes p.a. to target the Sudan market),
* by entering the Central African market they ALSO challenged Bamburi and indirectly LaFarge in Rwanda and Congo (it is also common knowledge that Bamburi through wholly-owned Hima Cement in Uganda is building up production capacity to enter Congo, Rwanda and Burundi)

: Questions that were raised and that have not yet been answered by the board or by any of its large shareholders

1) Why and how is it possible that LaFarge can have a share holding that gives them control, access and influence over the operations of all of its competitors in the market and the region? Lafarge owns Bamburi 100%, East African Portland 47% and Athi River Mining 15% and life proceeds on as normal. Am I missing somethign? As far as I am concerned, the shareholding that Bamburi has in its competitors should be stopeed immediately. What is the Comissioner of Monopolies doing? Are you going to say that this is technically not a monopoly? ;-)

2) Why is it that the board has not given a position statement on how they plan to take the organisation forward with regards to the entrance of the Sudan and Rwanda markets? What is the timetable for these entries? Or have they halted these plans at the insistence of Bamburai??

3) All of Bamburi's profits go to France. Over half of EAPCC's profits remain in Kenya. Who will Mukhisa Kituyi, David Nalo and their team give priority to?

4) What is the use of performance contracts if managers will be fired or forced to leave organisations BECAUSE they were doing their best to meet their targets for their own good and that of their organisation and their country? So what if Mutua na wengineo wanajivunia kuwa wakenya with things like these happening?

5) Does Mukhisa Kituyi, Bamburi MD know that Kenyans are not watoto any more?

6) Why has parliament not instituted an enquiry into this whole issue? When you look at how much money East African Portland has generated in 1 year in profits, does it make sense to pressure the team that engineered this rapid change out? What are we not being told? And what are the PAC and the PIC afraid of that they are not pursuing this matter?

7) ColdTusker, I think that the hold LaFarge has on the its competitors and therefore the industry NEEDS a BIG (like REALLY BIG) re-think. I don't think that the market control that LaFarge is obviously exerting on its competitors is anywhere close to the SMALLER evil of govt involvement in business.


PS: Ms K, does anyone recall Kituyi repeatedly WARNING Kenyan business to keep off Sudan until he gave them a go-ahead?!?!?!?%^#$%^@&#

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