are bad times for investors in Total Kenya, one of East Africa’s largest oil marketing firms.

The company has just posted a Ksh71.4 million ($850,000) loss for the financial year ended 2011, blaming its dismal performance on price controls and inefficiencies in the fuel supply chain. As a result of the loss, the company will not pay dividends for the year.

Total Kenya’s recent performance is in huge contrast to the Ksh916 million ($11 million) profit it posted in the previous year. In a statement to
the press, the company said operating expenses shot up by 12% as a result of inflation, depreciation and amortization costs.

Additionally, finance costs increased by 63% to Ksh1.59 billion ($19.1 million) up from Ksh977 million ($11.7 million)as a result of an increase in working capital requirements and higher average bank interest rates in the second half of the year after the central bank raised its key rate to curtail inflation and exchange rate volatility.