Nairobi Securities Exchange (NSE)-listed Infrastructure investment company TransCentury has blamed its loss of Sh1.5 billion ($17 million) in the first half of the year on the sale of its 34 per cent stake in Rift Valley Railways (RVR).

TransCentury earlier in the year sold its stake in RVR to Egyptian private equity firm, Citadel Capital (now Qaala Holdings) for $43.7 million. Although the money received by the firm covered its entire cash investment in RVR – the consortium that was established to manage the parastatal railways of Kenya and Uganda, proceeds were however below the historical fair value of the investment.

The company, an infrastructure comprising power, transport and engineering companies in the Sub-Saharan Africa region posted a loss before tax of Sh1.5 billion to the half-year ended June, compared to a profit before tax of Sh590 million ($6.7 million) last year.

The company’s revenue slumped to Sh4.95 billion, a 30 percent fall, said to have occurred due to delay in the commencement of projects under its engineering division; projects which have now kicked off.

Proceeds from RVR sale, according to TransCentury have been invested in other areas with prospects of higher returns that are expected to boost the company’s financial status and profitability in the future. Some of the new investments include a 35 megawatt geothermal power plant in Menengai, Great Rift Valley, Kenya.

Overall, the company said it will invest more than $2 billion ($22.7 million) in building roads, gas storage facilities and power plants as it shifts focus to including infrastructure projects in its broadening operations.

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