By CONSTANT MUNDAMore by this AuthorAuditors of Key Microfinance Bank, formerly Remu, have cast doubts on the firm’s continued operations in the long-term due to recurring losses, unless it receives a fresh capital injection. The microlender’s accumulating losses, the auditors warned, have put its ‘going concern’ status in jeopardy. Accountants use the ‘going concern’ term to refer to a company which has sufficient resources to continue to operate indefinitely, thereby shrugging off any potential failure risks. The small-sized microfinance bank sunk deeper into a pretax loss of Sh42.44 million in the year ended last December from Sh24.87 million a year earlier. The tax credit, however, nearly tripled to Sh28.81 million from Sh7.46 million the year before, helping cut net losses to Sh13.63 million from Sh17.41 million in 2017.

Source: Daily Nation May 15, 2019 19:52 UTC