Category: East Africa
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Kenya: NSE up Sh289bn in three months on dividend chase
Dividend-chasing investors at the Nairobi Securities Exchange (NSE) have lifted the stock market valuation by Sh289 billion in three months, signalling an end to a free fall that had seen the bourse touch an eight-year low in January. The steady growth in paper wealth for NSE investors has come on the back of elevated demand…
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East Africa: Why informal financial markets are here to stay
It is argued that African financial markets are highly fragmented, creating both formal and informal structures. While formal financial markets are largely controlled by the Capital Markets Authority (CMA), informal financial markets (IFMs) are outside the CMA’s regulatory and supervisory control. IFMs include Shylocks, merry-go- rounds (chamas), pawn brokers, credit societies, and traders. IFM lenders…
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Loss-making Air Namibia wins permit to fly into U.S
State-owned Air Namibia has won approval to fly into the United States and hopes to generate revenues through its codesharing agreements, the government-run daily New Era reported on Monday, The newspaper quoted the loss-making carrier’s acting managing director, Mandi Samson, saying the airline received its foreign air carrier permit in April. Until now, South African…
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Kenya:Stores ration subsidised maize flour
Subsidised maize flour will be available across the country from Sunday due to logistic hitches as Nairobi supermarkets restricted shoppers to two 2kg packets. Cereal Millers Association (CMA) Wednesday said the Sh90 a packet maize flour will be available at all top retail chains by Friday. The cheap maize is the product of a Sh6…
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Kenya: Loan interest rate caps here to stay, declares Ruto
The Government has ruled out the scrapping of loan rate caps despite a clamour by commercial banks. In a TV interview Tuesday night, Deputy President William Ruto said the law would remain and urged commercial banks to change their business models in line with the law. Banks have cut lending with the growth in credit…
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Kenya: State departments can’t account for Sh3 billion
More than Sh3 billion collected for issuance of visas, passports, and certificates of good conduct as well as fees charged at Huduma centres cannot be accounted for. Auditor-General Edward Ouko said he could not confirm the accuracy of Sh2.6 billion for visas and other consular fees charged by the Department of Immigration in the year…
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Kenya:Vodafone to sell 35pc of its Safaricom stake to Vodacom in a Sh266b deal
Safaricom’s British parent company, Vodafone, is set to sell 35 per cent stake in the Kenyan telecom to its South African subsidiary Vodacom in a deal valued at Sh266 billion (€2.4 billion). Vodafone is currently Safaricom’s largest shareholder with 40 per cent interest. Under the deal, Vodafone will retain five per cent shareholding in Safaricom…
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Kenya’s yuan debt doubles on Sh20.7bn Chinese loan
The portion of Kenya’s external debt denominated in Chinese currency nearly doubled between September and December 2016, pushed up by a Sh20.7 billion ($200 million) semi-concessional loan disbursement from Beijing. Latest data from Central Bank of Kenya shows that the yuan-denominated portion of external debt stood at 6.6 per cent at the end of the…
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East Africa:Spare power capacity falls to 7-year low
Kenya’s spare electricity capacity has dropped to lows seen seven years ago, raising the risk of blackouts in the event of breakdown of some power stations. The country’s reserve energy margin — difference between maximum electricity demand and total available power that can be produced at any given time — is now 4.4 per cent,…
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Kenya: KCB earnings fall as interest income drops
KCB Group Kenya’s largest bank by assets, has posted a 1.9 per cent drop in net earnings for the first quarter on the back of lower interest income as the rate caps regime narrowed lenders’ spreads. The listed bank said net profit stood at Sh4.54 billion in the three months to March 2017 compared to…