NAIROBI, Kenya- TotalEnergies Marketing Kenya PLC has issued a sobering update to stakeholders, projecting a 25pc decline in profit after tax for the financial year ending December 2024 compared to 2023.
The company attributes the anticipated dip to soaring interest rates and a volatile business environment. But it’s not all doom and gloom—there’s a silver lining on the horizon.
In a notice published in local dailies, Managing Director Thibault Flichy highlighted the dual impact of elevated interest rates and challenging market conditions.
Increased borrowing costs have weighed heavily on the company’s bottom line, mirroring broader economic trends affecting businesses across Kenya.
“The projected decline in the company’s profit after tax was notably affected by the high interest rates which resulted in increased finance costs, compounded by a challenging and volatile business environment,” Flichy noted in the statement.
Despite the projected profit slump, TotalEnergies remains optimistic about the future. Recent declines in interest rates could signal relief for businesses grappling with high financial costs.
Lower rates are expected to ease pressure and improve the company’s net income in the near term, offering a glimmer of hope for recovery.
This optimism aligns with ongoing efforts by the government and financial regulators to stabilize Kenya’s economic landscape.
TotalEnergies has emphasized its commitment to weathering current economic hurdles. The company assured stakeholders of its focus on profitability, cost management, and maintaining a healthy cash flow to navigate the turbulence.
“TotalEnergies Marketing Kenya PLC is confident that the initiatives implemented by management to manage costs will yield improved performance in 2025,” the statement concluded.
The company’s proactive strategies, coupled with a more stable financial environment, could pave the way for a stronger rebound in the coming year.
While TotalEnergies Marketing Kenya braces for a challenging 2024, the company’s resilience and strategic planning provide a foundation for future growth. With interest rates beginning to ease, the outlook for 2025 appears brighter.
