The Stanlib a financial institution that invests in real estates and malls registered a 61 percent net profit in 2017 registering Sh.171 million up from Sh.106 million in 2016.
This comes after a long electioneering period which was characterized by uncertainty that comes along with politics.
Speaking in a Nairobi hotel, the Chief Executive Officer, Kenneth Masika said the company registered the profit due to the increased number of investors and minimal competition due to the non-existence of similar firms that deals with the buying and leasing of real estates and malls.
The profit we got is due to the increased number of investors and also target profitable buildings, said Masika.
Meanwhile, Masika clarified that as the institution experienced challenges like prolonged politics, drought and high inflation.
The Chief Financial Officer, Nozipho Makhoba said that the Gross Domestic Product (GDP) Real GDP declined to an estimate of 4.5 percent compared to 5.8 percent in 2016 mainly due to subdued credit growth caused by interest rate caps, severe drought as well as prolonged political impasse over the Presidential election
She said that the GDP is expected to grow by 5.5 percent in 2018 with a rebound expected in both the private and public sectors.
She also clarified that the inflation averaged 8.0 percent in 2017 compared to 6.3 percent in previous year as drought in the earlier half of the year led to a contraction in agricultural output.
Inflation touched a high of 11.7 percent in May 2017 as fuel inflation remained low at 3.3 percent supported by lower electricity prices arising from a fall in the foreign exchange cost, she said.
Makhoba noted that some investors do not repay their debts on time hence affecting the normal operation of the institution.
Source: Kenya News Agency