Second East African Cables CEO resigns in two years
Move comes amid drop in company’s half-year earnings
East African Cables’ chief executive Peter Arina has resigned from the company, marking the second such departure from the corner office in two years.
Mr Arina’s exit coincided with a deterioration in the firm’s performance in the half-year ended June when sales, earnings and shareholder funds all dropped by double to triple digits.
He was appointed CEO in October 2015 to replace George Mwangi who had resigned a
month earlier to launch his start-up milk firm, Countryside Dairy. “That the resignation of Peter Arina as the chief executive officer of the company with effect from August 31, 2017 be and is hereby accepted,” EA Cables said in a statement released yesterday. The cables manufacturer added that Paul Muigai —who has been the chief operating officer— has been appointed the acting CEO effective Tuesday (August 28).
Mr Arina, who had earlier left Safaricom as the chief commercial officer in 2014, resigned as the cable manufacturer’s net loss widened 7.4 times to Sh232.4 million in the
half-year ended June.
The performance came on the back of a 30 per cent sales plunge to Sh1.4 billion, which the company blamed on its inability to fulfil orders from random customers. “The non-contracted business segment experienced a 30 per cent drop in revenues hampered greatly by continued constraint in accessing working capital lines,” the company said.
“The heavy capital investment that resulted in tripling of installed capacity led to greater need for working capital financing but access to credit lines was affected by reduced lending appetite following the introduction of interest rate caps.”