The Capital Markets Authority (CMA) has reinstated for trading the shares of East African Portland Cement (EAPC) after a two-month suspension, saying the doubts the authority had about the firm's ability to continue operating had been satisfied by the firm’s continuous operations over the period of suspension.

The shares had been suspended from trading on the NSE on January 17^th 2012, to protect shareholders from the consequences of a dispute between its board and the government. The government, which owns 25% of the company, had wanted to dissolve the board, due to the suspicion of an improper tender process for clinker - a lumpy intermediate product in the production of cement.

The High Court later ruled the government had no power to order the board's dissolution.

According to a statement issued by the CMA on Wednesday, "The Authority was satisfied that the uncertainty surrounding the status of the company to execute its obligations has been largely addressed by the continued functioning of the company."

The company warned last month that full-year earnings would be down at least 25 percent on the year before amid high production costs and mounting competition.