TransCentury CEO earns Sh35m in year of net loss

TransCentury's chief executive, Ng'ang'a Njiinu. FILE PHOTO | NMG 

By VICTOR JUMA

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Summary

• Ng'ang'a Njiinu was paid a total of Sh35.4 million in the year ended December 2017.
• Mr Njiinu’s compensation in the review period comprised a basic pay of Sh33 million or Sh2.75 million per month and pension of Sh2.4 million.
• Mr Njiinu earned Sh8.8 million in the previous year when he had served in the position for three months following his appointment in October 2016.

TransCentury’s chief executive Ng'ang'a Njiinu was paid a total of Sh35.4 million in the year ended December, when the NSE-listed company reported a net loss of Sh4.3 billion.

The infrastructure investment firm has disclosed in its latest annual report that Mr Njiinu, who replaced Gachao Kiuna, earned Sh8.8 million in the previous year when he had served in the position for three months following his appointment in October 2016.

“The group and company have a reward system that seeks to recognise the contribution made by individuals to the success of the company while reflecting the value of the roles they perform, as well as the levels to which they perform,” the Nairobi Securities Exchange-listed firm said in the report.

Mr Njiinu’s compensation in the review period comprised a basic pay of Sh33 million or Sh2.75 million per month and pension of Sh2.4 million. In the last three months of 2016, his remuneration comprised a basic pay of Sh8.2 million or Sh2.75 million per month and pension of Sh619,000.

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The executive is tasked with turning around the loss-making company, focusing on raising new capital, selling less profitable subsidiaries, restructuring debt and implementing contracts worth Sh26 billion over the medium term.

“On capital allocation, while we continue to find our current investments attractive, we will continue to review their performance versus expectations, and where necessary, exit and redeploy capital to opportunities and assets that meet our return expectations,” Mr Njiinu says in the report.

READ: TransCentury says earnings hit by lower infrastructure spend, credit crunch

TransCentury sunk into a negative equity of Sh112 million in the year ended December after deep losses wiped out its assets, pushing the company into a fundraising drive.

The firm joins Uchumi Supermarket

and Home Afrika

among publicly traded firms whose liabilities have exceeded their assets. TransCentury ended the previous year with a net worth of Sh3.8 billion, underlining the impact of the losses.

Founded by some of Kenya’s most high profile businessmen including investment banker Jimnah Mbaru and Eddy Njoroge, TransCentury unravelled after defaulting on a Sh6 billion loan it had taken shortly before listing on the NSE.