Sasini replaces chief executive with Elgeyo governor’s seat aspirant

Sasini has replaced its chief executive with a contestant for the Elgeyo-Marakwet governor’s position in a period that saw the listed agro firm return to profitability.

Caesar Mwangi has been replaced by Moses Changwony, who unsuccessfully sought political office after serving as managing director of DL Group of Companies — which owns tea factories in the Rift Valley and has interests in real estate.

Dr Mwangi’s departure after five years at the helm of the firm comes after Sasini returned to profitability in the year to September after posting a loss of Sh124 million a year earlier, thanks largely to reduced costs.

The firms is majority owned by businessman Naushad Merali who over the past 18 months has shaken up his empire including sale of Kenya Data Networks and having new chief executives at Equatorial Bank and tyre firm Sameer Africa.

“Dr Mwangi is no longer with us,” the new MD’s secretary told the Business Daily on Thursday. “He did not report to work this year.”

The Business Daily could not establish the reasons behind the executive shifts at Sasini. Dr Mwangi was also not available for comment since his mobile phone was switched off.

Sasini’s sales have remained nearly flat over the past two years, growing by 1.5 per cent to Sh2.82 billion in the period to September. Its return to profitability was mainly helped by lower operation costs and loan charges, which dropped to Sh6.63 million from Sh27 million in 2012.

Since joining Sasini in January 2009, Dr Mwangi reported successive year-on-year profit growths save from 2012 losses. Sasini is seeking to diversify its earnings to include real estate.

It has huge tracts of land in prime locations like Ruiru, where it had singled out approximately 1,000 acres of land currently under coffee for real estate.

Construction sector has been one of East Africa’s fastest growing sectors over the last decade, fuelled by a burgeoning middle class with higher disposable incomes and the pouring of billions in real estate by high-net worth investors.

Returns on investment in the sector have outpaced those of equities and government securities.

In 2012, Sasini chairman James Mcfee said that the firm was waiting for interest rates to drop before venturing into real estate.