The number of Nairobi Securities Exchange (NSE) listed companies issuing profit warnings in 2024 decreased to nine, compared to 15 in 2023 and 11 in 2022.
According to Cytonn Investments, the decline suggests an improving economic environment, driven by factors such as the Kenyan shilling’s appreciation and reduced inflation.
However, challenges such as high living costs, increased taxes, and global supply chain disruptions due to geopolitical instability continued to impact corporate profitability.
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Companies that issued profit warnings |
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| No | 2024 | 2023 | 2022 | 2021 |
| 1 | Express Kenya | Car & General | Bamburi Cement PLC | Centum Plc |
| 2 | Kakuzi Plc | Centum Plc | Centum Investments Co Plc | Umeme Limited |
| 3 | Total Energies Kenya Plc | Crown Paints Kenya | Crown Paints Kenya PLC | Williamson Tea Kenya PLC |
| 4 | WPP Scangroup Plc | Eveready | Flame Tree Group Holdings Ltd | WPP ScanGroup PLC |
| 5 | Sasini Plc | Express Kenya | Kakuzi Plc | |
| 6 | Eaagads Limited | Kakuzi Plc | Liberty Kenya Holdings Ltd | |
| 7 | Bamburi Cement PLC | Kenya Airways | Nairobi Securities Exchange PLC | |
| 8 | Umeme Limited | KPLC | Sameer Africa plc | |
| 9 | Limuru Tea PLC | Longhorn Publishers Plc | Sanlam Plc | |
| 10 | Nation Media Group | The Limuru Tea Kenya Plc | ||
| 11 | Sameer Africa Plc | |||
| 12 | Sanlam Plc | |||
| 13 | Sasini Plc | |||
| 14 | Unga Plc | |||
| 15 | WPP Scan Group | |||
Notable Profit Warnings in 2024
- Limuru Tea Plc: Attributed the expected decline to increased fertilizer import costs due to the shilling’s depreciation against the US dollar.
- Umeme Limited: Cited increased amortization charges due to revised accounting standards (IFRS) as the primary reason for the expected profit decline.
- Eaagads Limited: Experienced a decrease in coffee volumes offered to the market.
- Bamburi Cement Plc: Faced one-off costs related to the closure of the sale transaction of Hima Cement in Uganda, impacting 2023 results.
- Sasini Plc: Attributed the decline to the challenging global economic situation, geopolitical disruptions, and disruptions to the business value chain.
- WPP ScanGroup Ltd: Experienced significant foreign exchange losses due to the shilling’s appreciation.
- Kakuzi Plc: Suffered from lower avocado exports due to a combination of lower crop yields and supply chain disruptions caused by the closure of the Red Sea route to European markets.
- Total Energies Kenya Plc: Faced increased finance costs due to high interest rates and a challenging business environment.
- Express Kenya Plc: Experienced decreased demand for warehousing services and low economic activity.
