At least seven firms listed on the Nairobi Securities Exchange (NSE)issued profit warnings in 2017 citing political uncertainty due to prolonged electioneering period, interest rate cap and drought conditions experienced earlier in the year.
The latest firm to issue a profit warning is fashion retailer Deacons East Africa that blamed lower sales on prolonged electioneering period, the exit of Nakumatt Supermarkets from several shopping malls, drought and the proliferation of shopping malls.
Last week, Flame Tree Group board of directors announced that earnings for the current financial year ending December 31 are forecast to be lower than 25 per cent of the earnings for the same period in 2016.
Listed banks reported that the capping of interest rates had affected profitability due to suppressed net interest income in the first half of the year.
Family Bank, Standard Chartered Bank, Bamburi Cement , Standard Group, BOC Kenya during the year announced that their earnings for the full year ending December 31, would be lower by at least a quarter compared to last year.
Other companies which issued profit warnings during the year include Mumias Sugar , Unga Group , East African Cables , privately owned retail Nakumatt Holdings and shoe and leather accessories vendor, Nairobi Business Ventures Ltd which blamed the delay in securing additional funds to finance its working capital requirements.
