Elephant Man wrote:Anyone with an idea of their exposure to Burundi (political turmoil)? And Zambia (currency turmoil)?
Burundi worries me more than Zambia. KK can manage turbulent currencies since fuel prices do eventually match the LCY/USD. There may be some write-offs or forex losses in Zambia but the stations would still be up & running.
Burundi is a different story as the assets can be destroyed, expropriated or idled by the current or new regime. Or by hooligans. Every tanker that goes to Burundi is at risk of being hijacked or destroyed. KK could reduce staff or fire staff but that's not a desirable option as it creates animosity. Plus KK probably needs to spend more cash for security.
KK needs to reduce its level of business activity in Burundi & try to remit as much cash as possible back to Kenya. Any purchases (for resale) should be done using USD bought from the banks and not on credit. KK's HQ should not support KK Burundi using its cash.
What's happening in Burundi will put both the country & KK at financial risk...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett