2010 AIRTEL ACQUISITION OF ZAIN KENYA
Bharti Airtel acquired Zain Africa’s operations in 15 countries including Kenya for US$10.7 billion. Airtel Kenya’s accumulated losses since then stand at KES 68.09bn. Airtel’s total loss in East Africa amounted to $46.5 million (KSh4.8 billion) in the last financial year. A massive chunk of the loss stems from losses in its Kenyan subsidiary. Airtel Uganda is the only profitable business of Bharti Airtel in East Africa.
2016 CDC INVESTMENT IN ARM CEMENT KES 14.6BN
The UK-based investment firm invested $144m (KES 14.6bn) to acquire a stake in ARM Cement in 2016.
It has had to write off 97% of the investment as ARM Cement’s financial position worsened leading to the company being place under administration. CDC now values this investment only at KES 372m. ARM Cement shares lost over 85% of its value at the Nairobi Securities Exchange from the time CDC invested to when it was placed under the administration of Pwc.
2015 OLD MUTUAL ACQUISITION OF UAP HOLDING KES 20.8bn
Old Mutual paid Sh20.8 billion to acquire a 60.7 per cent stake in UAP Holdings. The 60.7% had a book value KES 8.9. Old Mutual Plc had to write off KES Sh9.7 billion in goodwill relating to the transaction after the integration of Old Mutual and UAP Businesses.
2018 SANLAM HOlDINGS WRITE OFF Sh1.15 bn
Non-bank financial services provider Sanlam Kenya had to write off investments worth KES 1.15bn relating to investments made in ARM Cement, Kaluworks and Real People Microfinance.
2019 KENYA AIRWAYS AND SEVERAL KENYAN COMMERCIAL BANKS –KES 23BN
Several Kenyan banks were forced to convert their debt in Kenya Airways to equity after their airline was unable to pay. The banks, which included big lenders such Equity, KCB Group, Commercial Bank of Africa and Co-operative Bank had to form a new special purpose company through which they now own shares in the struggling national carrier. Other banks in the list include: Jamii Bora, I&M Bank, NIC Bank and Ecobank, SBM, National Bank and Diamond Trust Bank. The shares were acquired at Sh7.78 per share meaning that the banks have made paper losses of over 70% going by the current market price of Kenya Airways of KES 2.25.
2017 NAKUMATT PILFERAGE KES 18BN
In 2017, Nakumatt wrote off stocks worth Sh18 billion on grounds that there were stocks in the systems that were actually not on the retail chains shelve. The company is closing the decade owing creditors who are mostly suppliers and commercial banks debt of 18bn.
