Yesterday the Total Kenya Limited share rose by 10% to 15.95 Ksh per share having opened at 14.50 Ksh per share.

Analysts state the reason for this could be the statement Total Kenya Limited released to its shareholders to clarify on its suspension from trading with the Kenya Revenue Authority (KRA) customs office. This suspension lasted two and a half days and affected Total’s operations in Kenya and Uganda probably shaking investor’s confidence in the share.

In the statement, the company explained the reason for its two day suspension and clarified the misunderstanding about a 1995 LPG importation that exists between the KRA and the company.  Total Kenya Limited showed its shareholders that it has been a dedicated taxpayer and in fact the KRA owes the company Ksh 662 million in VAT refunds which have been outstanding for more than a year.

This could have restored the shareholders confidence in the share and led to the increase in price.

It is worth noting that Total Kenya Limited has reported a Ksh 71 million loss for the full year ended December 2011. This is in sharp contrast to the Ksh 916 million net profit it made in the same period last year. This news may lead to a sharp decline in the share price as compared to the 10% increase observed yesterday.