Car & General (Kenya) Limited, a leading regional motor vehicle company, was last week’s top gaining stock on Kenya’s Nairobi Securities Exchange (NSE) after edging upwards by 18.07% though on thin volumes traded.
According to Kevin Njugi Mwangi, an Investment Analyst at financial services group, Amana Capital Limited, the share price was up to Ksh24.50 ($0.24) from the previous week’s close of Ksh20.75 ($0.21).
“Year-to-date the stock price is up 16.7%,” said Mwangi.
The announcement comes at a time when the profits of most Kenyan companies have shrunk by a third. According to an analysis by Financial Standard (FS) – a publishing division of the Rainmaker Group focused on providing investment analysis and education for financial planners, researchers and consultants – 2013 was the best year for most listed companies in Kenya.
The 56 companies, whose results FS analyzed, have lost a cumulative Ksh61.27 billion ($610 million) from their earnings.
The analysis revealed that 2016 was the worst run in a decade for Kenya’s car and accessories industry. CMC Motors, which was one of the region’s leading dealers, delisted from the Nairobi Securities Exchange in 2015.
And in 2016, Marshalls East Africa, another regional industry player, did the same.
Car & General is the only remaining auto firm that is listed and has also been on a downward trend. Since 2013, its profits have been dropping. In 2016, the supplier saw its profits dip by a third to Ksh88.9 million ($880,000).
Last year, Car & General announced plan to wind down its poultry business in Tanzania which partly contributed to the company’s loss of Ksh37 million ($370,000) in the first six months that ended on March 31st, 2017.
Car & General is a leading supplier of generators, motorbikes, laundry equipment, lawn mowers, scooters, marine engines, construction equipment and a wide range of power generation, automotive and engineering products in East Africa for 75 years.