Bamburi posts decline in half-year profit

Bamburi Cement posted a 36 per cent decline in its half-year net profit to KES1.8bn (US$17.4m) compared to a KES2.8bn recorded in the first six months of 2016.

Turnover stood at KES17.5bn which is KES1.6bn behind prior year while operating profit reduced from KES4.1bn to KES2.7bn.

Management attributed the decline to a difficult business environment in Kenya characterised by a contracting market, low private sector investment resulting in a slump in construction activity, especially in the individual home builder segment, and drought conditions.

On the other hand, Uganda enjoyed better market conditions in both domestic and export markets with Hima recording a good performance.

The firm projects that the Kenyan market will rebound in the last quarter while the Ugandan market is expected to continue performing well in line with the forecast growth in both the domestic and regional markets.