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ByTom M Ogusu
East African Portland Cement Company yesterday announced a 43 per cent increase on its dividend payment for the 2004/05 financial year.
Benson Ndeta, the company's chairman, said shareholders will be paid Sh2.50 per share, which represents an increase from Sh1.75 that had been paid in the previous year.
He said the increase in the payout was pegged on the improved performance of the company.
Ndeta told the firm's annual general meeting held yesterday that apart from improved business, there are expectations that the controversial Sh3.7 billion yen-denominated loan would be sorted out in the current financial year.
The loan has over the years been a major source of concern for the company and at one time wiped out Sh1 billion from its balance sheet.
The loan was advanced to the company by the overseas Economic Co-operation Fund of Japan.
The loan is repayable in 41 half yearly instalments by March 2020 and attracts a 2.5 per cent interest per annum.
“We are looking at different options but the idea is to convert this loan into a shilling denominated one,” he told shareholders.
The loan has over the years been an item of concern during the company's annual general meetings as it had contributed to reduced level of profitability.
In the 2004/05 financial year, EAPC's sales revenues grew by 29 per cent from Sh4.1 billion to Sh5.3 billion.
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