KASNEB CS23 case studies

KASNEB CS23 · Put your knowledge to work in context.

Kasneb - the Kenya Accountants and Secretaries National Examinations Board - is a State Corporation under The National Treasury and Economic Planning, established by the Government of Kenya in 1969. Its mandate covers the development of syllabuses, the conduct of professional, diploma and technician examinations, and the certification of candidates in accountancy, finance, credit, governance and management, information technology and related disciplines. The KASNEB CS23 case studies are 5 cases and about 5,018 words.

The Warehouse Lease, the Brother and the "Independent" Valuation

Ridge Agro-Processors PLC is a listed maize miller with a nine-member board: the chair (a former permanent secretary), the managing director, two other executive directors, two nominee directors of the 30% anchor shareholder and three directors designated as independent. The MD's brother owns 60% of a logistics company that has offered to lease the company a warehouse for five years at KES 9.6 million a year; management's own internal estimate of open-market rent for the same building is KES 7.2 million.

1,019 words, about 5 min 2

The Widow, the Pre-emption Clause and the Ten-Day Notice

Kijabe Hardware Limited is a private company with 400,000 ordinary shares held equally by four families, 100,000 each. The articles provide that no share may be transferred to a non-member until it has first been offered to the existing members pro rata at a price certified by the auditors, and that general meetings require 21 clear days' notice.

1,044 words, about 5 min 3

Three Proposals, One Line Running at 55%

Sunrise Packers Ltd is a 22-year-old fruit-juice processor in Thika with 180 employees and revenue of KES 1.4 billion. Its single 20,000-litre-per-day line runs at 55% utilisation.

1,003 words, about 5 min 4

Capital Rationing, the 45% Covenant and a Director's Favourite Project

Bahari Holdings Ltd can raise only KES 60 million of new finance for the coming year without breaching a 45% debt covenant. The finance director has produced the following (all KES million, cash flows discounted at the company's current WACC of 13%): Project X: outlay 40, NPV 8.0, IRR 16.5% Project Y: outlay 30, NPV 6.6, IRR 18.2% Project Z: outlay 25, NPV 4.0, IRR 15.4% The projects are independent and indivisible.

966 words, about 5 min 5

Revenue on Invoice, VAT on Signature, and a Bank Covenant

Tembo Systems Ltd, a Kenyan software company with a 31 December year end, signed a contract on 1 January 2025 with a county government for KES 36 million, invoiced in full on signing and paid within 30 days. The contract covers a three-year right to use Tembo's revenue-collection platform, a four-month implementation and data-migration service, and three years of support.

986 words, about 5 min