The utility company had a negative net working capital of Sh763 million at the close of the 2016 financial year, down from a solid Sh20.4 billion it had at the beginning of the financial year. A company has a negative working capital whenever its current liabilities exceed its current assets. Depending on the industry a company operates in, a negative working capital can be a good or bad thing. This is what increased our current liabilities to make us have that negative equity,” Ken Tarus, Kenya Power general manager finance told the Standard in an interview yesterday. The company’s current liabilities increased from Sh45 billion to Sh50 billion in the year under review.

Source: Standard Digital November 01, 2016 17:52 UTC