BOC Kenya executives were paid a total of
Sh45.2 million in the year ended December, an amount larger than the
Sh39.3 million net profit made by the gas manufacturer in the review
period.
The Nairobi Securities Exchange-listed firm has
been on a long-term decline, with its sales and net earnings tumbling
from highs of Sh1.2 billion and Sh229.6 million respectively in 2014.
BOC
chief executive Millicent Onyonyi, who resigned on April 30, earned a
total of Sh28.9 million in the review period, a 46.7 per cent rise from
Sh19.7 million the year before according to disclosures in the company’s
latest annual report.
Her compensation in the review
period comprised a salary of Sh14.6 million or Sh1.2 million per month
and house allowances of Sh10.5 million. She was paid a salary of Sh10.6
million or Sh884,000 per month and house allowances of Sh7.8 million in
the previous year.
BOC’s finance director earned a total of Sh16.2 million in the
review period, up from Sh15.4 million a year earlier. The company’s net
profit dropped 68.8 per cent to Sh39.3 million in the year ended
December compared to Sh126.3 million a year earlier on the back of
higher costs and 10.1 per cent sales decline to Sh967.6 million.
The
company has maintained a dividend payout of Sh5.2 per share or a total
of Sh101.5 million in each of the past five years despite the reduced
earnings, a move that has seen it dip into reserves to partially fund
the distributions.
BOC specialises in manufacture and
sale of industrial and medical gases and welding products. The company
has attributed its challenges to customer debt, a lack of regulation of
the industry and increased competition that has forced it to cut prices.
“Key
external business challenges remain competition from low-cost
competitors in a sector with minimal regulatory oversight, illegal
filling of the company’s cylinders by other parties, lack of enforcement
of standards for medical oxygen, competition from imported liquid
oxygen and slow and delayed settlement of trade debt by many public
sector customers,” BOC chairman Ngugi Kiuna said in the report.
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