Mumias Sugar Co., Kenya’s biggest maker of the sweetener, rose for a third day after the company named its finance director as the new chief executive officer.
The shares climbed as much as 8.3 percent and traded 4.2 percent higher at 5 shillings by the close in Nairobi, the highest level since Feb. 8.
“The key concern from local fund managers had been succession,” Francis Mwangi, head of research at Nairobi-based Standard Investment Bank Ltd., said in a phone interview today. The appointment of somebody with long experience of the company “creates clarity that the succession will be smooth, that is what is driving the price right now,” Mwangi said.
Peter Kebati, who joined the company in April 2003, will take over from Evans Kidero on July 1, Mumias said on its website in a statement dated April 16. Kidero will leave the company at the end of its financial year in June, according to the statement.
Kidero is leaving the company to go into politics, the Daily Nation newspaper reported yesterday.
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