Athi River Mining bets on new funding to boost its earnings

Athi River Mining (ARM) Cement expects profitability to improve with the recent capital injection of $140 million (Sh14 billion) from a British government-owned fund, CDC Group, to finance the setting up of a new clinker plant in Kitui County, ARM Managing Director Pradeep Paunrana has said.

ARM, which is East Africa’s second biggest producer after Bamburi Cement, posted a net loss of Sh267 million in the first six months to June 30 this year compared to a loss of Sh355m at the same period the previous year, which Mr Paunrana on Friday blamed on a tough operating environment for its Tanzania business, increased financing costs as it commissioned a new plant in Tanzania as well as high energy costs.