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Companies

Eyes on regulator as more firms miss audit deadlines

CMA chief executive Paul Muthaura
CMA chief executive Paul Muthaura. FILE PHOTO | NMG 

At least six listed firms have now breached the Capital Markets Authority (CMA) deadline for releasing financial results, with four of these being companies where the government holds a stake.

Home Afrika this week became the latest Nairobi Securities Exchange-listed firm to miss the deadlines for making available its books to investors, shining a spotlight on the markets regulator in safeguarding the interests of shareholders.

The real estate developer linked the delay to restructuring, saying that it will now release its results before end of July. This is about three months later than CMA’s April deadline.

Crown Paints also issued a delay notice last week, citing “unexpected delays” in finalising the auditing process as it consolidates the results of its subsidiaries.

The CMA gives listed firms four months after the end of a financial year to publish their results.

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Half year results are supposed to be made public after two months from the end of such a period.

Debt-ridden Uchumi Supermarkets has also kept investors waiting, with the firm missing the deadline for publishing financials for the year ending June 2018 despite getting a five-month extension.

It has also breached February deadline to publish its half year results for the period to December 2018.

Mumias Sugar also delayed results for over four months before announcing a Sh15 billion net loss in March.

The delay kept investors in the dark for 15 months since the previous release of results had happened in November 2017.

East African Portland Cement (EAPC) and Kenya Power also missed the audit timelines, leading to late release of results.

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