This archive report was first published on 20 November 2019.
On November 20, 2019, BOC Kenya issued a profit warning, stating that its earnings for the year ending December 2019 would likely drop by at least 25 percent.
The warning was attributed to depressed sales and higher provisioning for debts, which the company said were largely due to the tough economic environment affecting small and medium-sized enterprises.
BOC Kenya's profits had jumped 77 percent to Sh69.57 million in the previous year, but the company's managing director, Marion Gathoga-Mwangi, attributed the decline to a range of factors, including depressed demand for gases and unpaid supplies to public sector customers.
Ms Mwangi noted that the company had experienced significant delays in payment from several public sector customers, with some amounts remaining unpaid for 'periods significantly above allowed credit period.'
These overdue amounts had led to additional doubtful debt provisions, Ms Mwangi said, adding that high local energy costs had also hit production costs.
