Companies Flame Tree doubles loans to fight skyrocketing raw material costsFlame Tree Group chairman George Theobald. PHOTO | DIANA NGILA | NMGBy EDNA MWENDAMore by this AuthorListed manufacturer Flame Tree Group Holdings doubled its bank loans to Sh817.7 million in the year ended December 2022 to deal with skyrocketing costs of raw materials. Flame Tree’s direct cost of producing goods to be sold rose from Sh2.23 billion in 2021 to Sh3.05 billion in the following year. The cost of capital with SBM is the base lending rate plus 3.1 per cent for Kenya Shillings loans plus 1.3 per cent for USD loans,” the company’s 2022 annual report read in part. Read: Flame Tree sets sights on corporate bond“That has translated to yearly interests of 13 percent for loans in Kenya Shillings and 7.5 per cent for loans in USD.

Source: The North Africa Journal June 29, 2023 11:15 UTC