While going through new numbers contained in a recent report on the financial affairs of East African Portland Cement Company (EAPCC) #ticker:PORT - one of the leading cement manufacturers in the region - I saw a poignant lesson of the pitfalls of taking a foreign currency loan when the revenues you earn are in shillings.
The burden the company has been carrying in its books because of a yen- denominated loan it contracted several years ago gives you a compelling story about the dire situation that obtains when a company engages in currency mismatching.
