, NAIROBI, Kenya, Sep 2 – Listed real estate firm Home Afrika has fired its Chief Executive Njoroge Nganga amidst losses in the first half of 2015.
The firm’s Board Chairman Lee Karuri says the directors have terminated his contract without giving details why. The board has appointed Dan Awendo as the acting Chief Executive.
Prior to joining Home Afrika, Njoroge worked in Uganda for the Housing Finance Bank as the general manager strategy and investor services.
He has also worked as the General Manager, Dyer & Blair (Uganda) and at Development Finance Company of Uganda (DFCU) as Head of Development Finance. He served on Uganda’s Securities Exchange Governing Council and on Makerere University Investment Advisory Committee.
The move comes as the firm made a loss of Sh111 million in the first half of 2015 compared to a net profit of Sh42 million same period last year.
The management attributed the loss to a 60 percent drop in revenue.
“The group reported a drop in revenue and the corresponding cost of sales to Sh217 million from Sh550 million and Sh219 million from Sh326 million representing a 60 percent and a 33 percent reduction respectively from a comparative period the previous year,” the management said.
The firm’s total assets grew to Sh3.8 billion from Sh3.7 billion in 2014 owing to increase in inventories from new projects and the improved valuation of investment properties accelerate.
“We expect to achieve higher margins going forward as the higher margin commercial properties come to market,” the management asserted.
In 2014 the firm posted a 90 percent drop in profits to Sh9 million from the previous year’s Sh80 million.
The firm’s major property projects include the multi-billion shilling Migaa, a live-in-community in Kiambu County as well Lakeview Heights in Kisumu County and Llango in Kwale County.