Airtel Kenya sunk further into losses for the financial year ended March 2021 with a loss of 5.9 billion shillings. The company now has a cumulative loss of 77.41 billion shillings.
The net liability for Airtel Kenya rose to 43.7 billion shillings in the full year to March 2021, up from 37.78 billion shillings as of March 2020.
The recent loss is the largest in its history having halved the loss to 2.78 billion shillings in 2019, up from 5.8 billion in 2017 shillings.
The company is said to have a shareholder loan of 52.2 billion shillings up from 46.6 billion shillings the previous year, and its directors said with this, there is “sufficient liquidity to manage its operations.”
These loans are from its holding firm Bharti Airtel Kenya BV and are supposed to be payable ‘on demand’ and are unsecured, carrying an interest charge of three percent per annum.
“The directors are of the opinion that the company is a going concern on the basis of it generating cash flows of at least the management projections and also obtain additional funding from its shareholders required to meet its obligations,” states the board in a note accompanying the financial statements.
The negative asset position means Airtel would have been unable to meet its financial obligations maturing this year, even if it sold all assets that could be readily liquidated.