Connect with us

Business

Centum Set To Make A Sh2.1B Loss

Published

on

[Image | Courtesy]

Ksh.2.1 billion has been set aside by Centum Investment in anticipation of a loss from its funding of the distressed multi-billion shillings Amu Power Company coal plant.

The cash will act as a loss-provision for the investment. “The provision is made in view of uncertainties surrounding the timely closure of this matters,” the firm noted on Thursday

This comes just days after the African Development Bank (AfDB) and the European Investment Bank (EIB) withdrew their support sighting changed in investments industries.

Despite the multi-billion shillings project facing major problems like loosing its environmental impact assessment license in June, Centum Chief Executive Officer James Mworia remains hopeful of the realization of a profit from the investment in the hope for better days for the delayed project.

“The provision does not in any way alter the prospects of Amu Power. As responsible investors, we will do our best to pursue a return on investment,” he said

The 1050 megawatt Lamu coal plant has seen resistance from subsequent uprisings from civil society groups who view the plant as an environmental hazard.

Centum is now set to clear outstanding project debt at company level by the end of June 2020. The firm had posted a net profit growth of 226 pc to Ksh.6.8 billion for the first half of the 2020 financial year to September 30 with the notable spike in earnings being largely determined by increased investment income.


Kenya Insights allows guest blogging, if you want to be published on Kenya’s most authoritative and accurate blog, have an expose, news, story angles, human interest stories, drop us an email on tips.kenyainsights@gmail.com or via Telegram

Related Content:  Collapsing Botswana-based Choppies Supermarket Ordered To Deposit Sh7 Million Guarantee
Click to comment
Advertisement
Advertisement

Most Popular