Dollar shortage and sharp depreciation of Kenya Shillings has impacted negatively on the finances of Unga Group, a listed firm specializing in manufacturing and marketing of a broad range of human nutrition, animal nutrition, and animal health products.
In a notice, the company said it is expecting a loss based on its unaudited financial results for the 11 months and the June 2023 forecast. The company made profit same period in the previous year.
“Scarcity of locally sourced raw materials led to increased importation at higher global prices. This led to increased production costs which could not be fully passed to consumers,” said Winnie Jumba, Company Secretary.
“The difficult economic environment has been exacerbated by sharp depreciation of Kenya Shilling and shortage of US Dollars. These led to margin erosion, high forex losses and increased interest expenses,” she added.
Kenya shilling breached the 140-mark early this week trading at an average 140.2 against the dollar.
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