Centum cuts exchange rate risk with switch to shilling loans

Investment firm Centum has restructured a Sh3.1 billion dual currency loan contracted from Standard Bank of South Africa into an all-shilling facility, allowing the company to avoid exchange rate risk on the facility should the local currency weaken against the dollar in the future.

The loan, held under the books of the company’s subsidiary known as Vipingo Development Plc, had a dollar component of $5.9 million (Sh762 million at present exchange rate), with the remaining portion denominated in shillings.