In Summary
  • Quoting an analytical report by local website, ancereport.com, OTC Markets said Restance should clear the air over its Kenyan investment.
  • Restance has, however, shrugged off the claims saying its investment in Kenya’s first latex factory was informed by the expected returns on investment.

A US financial platform has raised concern over a listed condom maker’s Sh502 million Kenyan investment saying shareholders risked losing cash.

OTC Markets Group, an American trade market, which provides price and liquidity information for almost 10,000 over-the-counter (OTC) securities, posted the comments on its website saying Restance shareholders’ funds were at stake as the condom-making business was “over-saturated”.

Quoting an analytical report by local website, ancereport.com, OTC Markets said Restance should clear the air over its Kenyan investment.

Restance has, however, shrugged off the claims saying its investment in Kenya’s first latex factory was informed by the expected returns on investment.

It has reported receiving an initial order to manufacture condoms worth Sh50 million and anticipates to generate sales amounting to Sh2 billion annually.

Chief executive Randell Torno termed the information as an exaggeration that could be misleading.

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