This archive report was first published on 28 November 2019.
Published on November 28, 2019, Centum Investment has set aside Ksh.2.1 billion as a provision for potential losses from its funding of the Amu Power Company.
The provisioning, aligned to the IFRS 9 rules on expected losses, stems from the uncertainty surrounding Amu Power's planned coal plant in Lamu County, which remains tied up in controversy.
Centum Chief Executive Officer James Mworia remains optimistic about the project's prospects, stating, 'The provision does not in any way alter the prospects of Amu Power. As responsible investors, we will do our best to pursue a return on investment.'
Despite the darkening clouds on the multi-billion shillings project, Centum's CEO holds out hope for better days ahead.
The implementation of the 1050 megawatt Lamu coal plant has remained in limbo due to litigation and uprisings from civil society groups who view the plant as an environmental hazard.
Centum's total assets reduced marginally to Ksh.63.4 billion, with the company's net asset value (NAV) dipping by 4.2 percent to Ksh.50.2 billion.
However, the firm posted a net profit growth of 226 percent to Ksh.6.8 billion for the first half of the 2020 financial year to September 30, driven largely by increased investment income.
