NAIROBI, KENYA, AUGUST 27 —Regional cable manufacturer – East African Cables Limited is counting on the regional governments’ support for local manufacturing to continue providing opportunities, as it realigns its business to return to profitability.
This comes as the company continues to wade in losses which widened 30.6 per cent to Ksh303.4 million in the year to June. This is from the Ksh232.4 million half-year loss posted last year. Start your free trial. Ad All the tools you need for every step of the … Squarespace Learn more The company is also betting big on Kenya’s crackdown on illicit trade to recover its market share which it had lost to counterfeit goods that had flooded the markets.
E.A Cables turnover closed the six months of this year at Ksh872.6 million, a slump from Ksh1.47 billion it made in a similar period last year as counterfeits and fakes ate into its market.
“The recent crack-down on counterfeits and substandard products has increased demand for our products within the region,” CEO Paul Muigai said in the company’s financial statement.
Kenya has heightened the war on counterfeits and illicit trade since the commissioning of an anti-illicit trade team by President Uhuru Kenyatta in May this year. Looking for One and Only? Ad Spend Your Summer With Charming
Women UkrainianCharm Try now The team which has intensified surveillance in the country’s points of entry has been conducting raids, which have successfully nabbed counterfeit goods worth more than Ksh76.5 billion.
The Kenya Private Sector Alliance (Kepsa) which supports the government efforts, recently said investor confidence is gradually being restored, with a number of industry players reporting regained market.
E.A Cables is among the companies which are keen to tap back into the regional market as counterfeits are being eliminated. ALSO READ: Kenya’s Anti-Counterfeit Agency gets UK funding to fight illicit trade
Meanwhile, Muigai said the board of management is focused on completing debt restructure negotiations by end of the year in order to provide the much needed working capital to execute the outstanding order book.
“The prospects for the business look bright,” he said. Looking for One and Only? Ad Spend Your Summer With Charming
Women Ukrainiancharm Try now In the period under review, the group generated Ksh271 million from operations through strict working capital management and cost management, the firm reported.
The cost management initiatives bore fruits with overall expenses reducing by 13 per cent .However, working capital remained a […]