Athi River Mining Company Limited released its profit warning on Monday.
According to a report published by local daily, Athi River Mining will post a loss of at least Sh3.5 billion for the financial year 2017.
The report further reveals that the company posted a loss of Sh2.8 billion in 2016 and Sh2.89 in 2015.
Athi River Mining is one of the many cement companies located in Athi River town. It produces the Rhino brand of cement. Apart from Cement, ARM also manufactures Mavuno fertilizers. The company has employed many residents of Athi River. It operates twenty four hours.
The information on profit warning comes as bad news to the locals especially those employed in the company. As is usual with all other business establishments, profit means the company is doing well and other benefits like salary increment and more employment opportunities are bound to arise. Unfortunately, the reverse is the case at ARM.
When a company makes losses, then it will have to undertake certain measures to mitigate the situation in order to stay afloat. One of the measures include laying-off of workers and this is what the residents of Athi River should brace themselves for. This will translate to lack of employment and subsequently rise in stress and criminal activities.
Another measure that the company takes in order to deal with a loss is to reduce the salaries of workers. This too is not good news to residents of Athi River town.But all is never lost. The season of planting is here with us and many farmers are budgeting for fertilizers. Mavuno fertilizers may just be the saving grace for ARM. Let us wait and see.
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