Athi River Mining says new clinker plant to boost profit margins
Athi River Mining (ARM) Cement expects profitability to improve now that it produces its own clinker for its East African cement plants, the firm’s managing director has said. ARM Cement, East Africa’s second biggest producer after Bamburi cement, posted a pre-tax loss of Sh473.5 million ($4.5 million) in the first six months, which the firm blamed on unrealised foreign exchange losses associated with borrowing for its new clinker plant…[…]
Hyacinth power plant to generate 35MW
An investment firm has applied for a permit to set up a Sh2.5 billion biogas power plant on the shores of Lake Victoria that will be fuelled by the invasive water hyacinth weed. Thika Way Investments says in regulatory filings that the power plant in Homa Bay County will also produce cooking gas and fertiliser…[…]
Stiff competition keeps cement prices down
Intense producer rivalry continues to shield cement consumers in Kenya from higher prices even as inflationary pressure and a weak shilling push up commodity prices. The shilling has depreciated by 16 per cent to the dollar, while monthly inflation has averaged 6.36 per cent for the first eight months of the year, meaning that the producers have had to absorb the increased cost of materials which would ordinarily have been passed on to the consumers…[…]
Dubai Bank gets liquidator to dispose assets
The Kenya Deposit Insurance Corporation (KDIC) has appointed Adam Mohamed Boru to oversee the liquidation of Dubai Bank which collapsed last month. The appointment adds to the number of failed institutions that Mr Boru has been mandated to liquidate, a process that involves sale of assets to compensate uninsured deposits and creditors…[…]
IRA sees mergers, buyouts creating stronger companies
The regulator while releasing its end year report said the continued trend of large companies buying smaller ones will result in stronger and healthier firms. “The acquisitions represent an opportunity for creating synergies and leveraging on innovation all of which — if managed properly — could enhance long-term revenue growth and profitability for the sector,” said the IRA…[…]
Delays hit 982MW Lamu coal plant on Nema approval hitch
The construction of Kenya’s first coal-fired power plant faces delays due to the failure to get approval from the environment watchdog and delays in compensating those to be displaced by the electricity project. Construction of the 981.5-megawatt plant in Lamu was set to start September 30 and end in June 2017 but promoters of the mega project are now uncertain of the kick-off date…[…]
Strong dollar makes Nairobi high-end hotels cheaper for foreigners
The strong dollar has made Nairobi hotel rooms cheaper for visiting foreigners as the tourism sector struggles with record low bookings. “The weakening shilling means we have cheaper inbound holidays,” said Kenya Tourism Board (KTB) chief executive Muriithi Ndegwa…[…]
Broker to investors: Cut equities exposure at the Nairobi bourse
An investment banker has advised investors to rethink their stock-buying approach if they are to weather the current bear run at the at the Nairobi Securities Exchange (NSE). The analysts say investors should reduce their investments in equities and instead focus on speculative investments, select stocks and short term fixed-income instruments…[…]