Yana tyres are back, made in Kenya by Sameer Africa

Sameer Africa has returned to tyre distribution after shutting down the division in May last year to tame a loss-making streak amid efforts to cut costs, including outsourcing production to Asia.

At the time, the Nairobi Securities Exchange-listed firm told its shareholders that it would focus on its real estate business, which it projected would return it to profitability.

But in a turnaround bid, the company says it sees both the property and tyre businesses paying off under its four-year (2021-2024) strategic plan.

“This change has been justified by the sustained demand for the ‘Yana’ brand and the success of the company’s turnaround efforts in 2020,” said Sameer in a notice on Monday.

“The board is confident that the measures put in place by management will support improved performance by the company.”

Sameer had been the tyre business before calling it quits. The division accounted for about 90 per cent of the company’s revenue, selling both Yana and Summit brand of tyres.

Sameer also sold used motor vehicles and other assets that were used in the tyre business.

In 2016, the company closed its Nairobi factory to cut cuts and turned to India and China for production. However, it continued to suffer losses reporting net loss of Sh529.3 million in 2018 and Sh182.7 million in the half-year ended in June 2019.

After closing its troubled tyre business and sent 73 workers home, it narrowed its net loss 68 per cent to Sh58.5 million in the half-year ended June 2020…

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