ARM swings to nine-month net loss, Kenya

Athi River Mining (ARM) posted an after-tax loss of KES469m (US$4.6m) for the nine months to the end of September 2015, largely attributable to the depreciation in regional currencies against the dollar.

The cement maker, which reported an after tax profit of KES1.1bn in the same period of 2014, said revenue for 9M15 rose seven per cent to KES11.7bn, thanks to increased cement sales in Kenya and in Tanzania.

While the demand for cement grew more than 10 per cent during the period, "the sharp depreciation of both the Kenyan and Tanzanian currencies in the nine months has resulted in an unrealized exchange loss," the company said in a statement.

It said the loss amounted to KES2bn on the firm's dollar denominated borrowings.

"The fundamentals for continued economic and construction sector growth remain strong despite the recent currency depreciation and increase in interest rates," the company said.