Recession means job losses, companies perform poorly and its much worse in an environment of rising cost of living.
Comments coming as data shows US Q1 GDP growth was -1.6% (contracted)
World Bank chief economist says “pretty skeptical” global and US economies can avoid a recession.
In case you missed it listen to the recording of the twitter space covering how to trade stocks in Kenya, important dates for dividends, and bonds here https://t.co/1MJywCxMiX
Jambojet tickets have gone up by 8% after jetfuel prices hit a high of Sh148 a liter — Business Daily
EABL stock rebounded yesterday with a price gain of 9% closing at Sh119.50. The price change added Sh7.5 billion to its market cap. — Business Daily
Kansai Paint (Owns Sadolin Paint brand) has been bought by global paints and coating company, Akzo Nobel.
World bank to spend Sh390 million to give 1.3 million Kenyans solar power and clean cooking solutions by July next year. — Business Daily
CMA is currently investigating Kakuzi over allegations of shifting profits abroad and corporate governance issues. — Business Daily
Absa has signed a deal with Visa to allow instant transfer of funds overseas. — Business Daily
Sudanese army has launched a large-scale attack on Ethiopian troops remaining inside disputed border area of Al Fashaga following alleged executions of Sudanese soldiers
Let’s talk. What is the most high value investing or business decision you have made so far this year?
US to prohibit importation of Russian gold in latest sanctions. — Reuters
National Oil will from August import 30% of the country’s monthly petroleum requirements.
Kenya has sealed deal for cheaper Saudi fuel. State-owned National Oil Corporation of Kenya will from August start shipping fuel from Saudi Arabia at lower prices than the global rates. — Nation
G7 countries to start a $600 billion global infrastructure initiative to counter China’s push to exert political and commercial influence through massive investments across emerging economies. The United States will spend a total of $200 billion for the program.
The cost of a tray of eggs has jumped to Sh450 from Sh360 two weeks ago. A tray of eggs at Naivas and Quickmart is going for over Sh500
DTB bank says that they will progressively increase dividend payouts in the years ahead. The bank is set to pay Sh3 per share dividend for year ended December 2021. — Business Daily
Individuals and firms interested in leasing government land for commercial farming will need to show proof of financial muscle. This comes after Cabinet approved large-scale commercialization of public land held for agricultural production. — Business Daily
Kenyan traders and manufacturers risk Sh1 million fines if they fail to install and use new ETRs by July 31. The new internet-enabled ETRs track every transaction and update the buyers’ iTax page automatically after each sale. — Business Daily
EACC raided the homes of six top Kenya Power managers yesterday. The six are under investigation for alleged grand corruption. — Business Daily
Fuel prices could lower when National Oil starts importing cheap discounted Saudi Arabian Oil from August. — Business Daily
Minority shareholders say Limuru Tea’s land is worth 23 times more than its currently valued at. At Sh16.2 billion, the valuation of the land alone is worth multiple times the Sh768 million market value of Limuru Tea. — Business Daily
Turkey has already leased 850,000 hectares of land in Sudan where it’s planning to start the project but is looking to lease virgin land in other African countries and South America.
Turkey says it is looking to lease land in Africa for farming grain products. It’s planning to send the produce from leased land to Turkey for processing before exporting. Says it wants to produce in virgin agricultural areas and introduce modern farming methods.
Most significant to commodity markets is: — G7 countries banning importation of Russian gold. — Proposal to limit price of Russian oil. Countries will be allowed to import Russian oil as long as it’s done below the price they will set.
— Ukraine President told G7 leaders that he wants the war with Russia to end by end of year before winter sets in according to EU diplomats. — US to send Ukraine advanced missile defense systems and ammunitions.
Geopolitics: — Russia has defaulted on foreign debt for the first time since 1918. — Russia says it doesn’t not accept that it defaulted because it’s payments are being blocked by Euroclear. — G7 countries say they are determined to reduce Russia’s revenues including from Gold.
Zimbabwe will also for the second time in more than a decade legalize use of the US dollar. The US dollar will be used parallel to the Zimbabwe dollar.
Zimbabwe has raised interest rate to a record high of 200% from 80% in bid to curb inflation and stabilize foreign exchange. The interest rate is by far the highest in the world. — Bloomberg
IMF says the delay in timing of the anticipated financing “could be mitigated by securing alternative sources of financing”.
Kenya may need to find alternative sources to finance current budget due to delay by the IMF to approve Shs 28 billion loan. No reason provided for the delay by the IMF. Kenya had included the amount in budget for financial year ending this month. — Bloomberg
Tanzania has doubled export permit costs. The permit now costs Sh52,000 per truck. The move currently contributing to maize shortage in Kenya. This is likely to lead to a new trade war between Kenya and Tanzania — Business Daily
Telkom Kenya to launch mobile loans service similar to M-Shwari on its T-Kash product. — Business Daily
The World Bank’s private investment arm, IFC, has doubled its total investment in Equity bank to Sh52.8 billion. It’s Equity’s second largest shareholder and its biggest lender. — Business Daily
Proparco, a French soveriegn wealth fund, has acquired Sh3.7 billion stake in Naivas. Proparco will be joining two other funds to jointly acquire a 40% stake in Naivas. If the three funds are contributing equal amounts, it values Naivas at Sh27.8 billion. — Business Daily
“If you offer affordable food with low margins, you can probably pay employees only minimum wage. And you’ll need to squeeze out every efficiency: that’s why restaurants put grandma to work at the register and make kids wash dishes” https://t.co/3MLu5DZ8Fq
Billionaire Peter Thiel on restaurant start-ups: “When you (as an entrepreneur) hear that most new restaurants fail within one or two years, your instinct would be to come up with a story about how yours is different”.. “instead of considering if it’s true” — Zero to One https://t.co/YQrkgCNdn4
KENHA has announced the closure of the Mlolongo Toll station exit after a motorist crashed into it and ran over other vehicles that were being cleared to exit. The over-speeding vehicle’s driver died on the spot while two passengers got serious injuries. https://t.co/lfNFc8bouL
Kenya is spearheading push to have regional mobile operators cut roaming charges to boost integration and modernization. The goal is to eliminate roaming charges in Africa within 8 years. — The East African
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Let’s talk. What was the biggest sacrifice you made to get to where you are at today?
Zimbabwe Central Bank is planning to double its key benchmark interest to 190% which will be by far the highest in the world. Says it has ‘decided to bite the bullet’. Inflation hit 191.6% in June. — Bloomberg
Kenya to begin rehabilitating the 127km Voi-Taveta metre gauge railway line to serve the Kenya Ports Authority inland container depot at Taveta on border with Tanzania. — The East African
Safaricom should really improve M-PESA security. This is unacceptable. https://t.co/eyILvO9yrP
Number of Kenyans taking loans to meet daily needs has risen sharply due to inflation. World Bank and KNBS survey data showed number of Kenyans taking loans to raise income increased to 55% in March from 13% in February. — The East African
What felled Kune, ultimately, was an overly ambitious business model that needed much more capital than Kune could raise. And the model was too fragile perhaps to withstand rapidly changing economic conditions. Perhaps delivering high-quality ~$3 meals was never a realistic plan.
Kune’s lead investor says: A pitch deck Kune was circulating before its demise put its gross margins at 48%. Recent spikes in food and other costs were squeezing those margins down toward 5%. This meant Kune either had to jack up its prices, cut costs, or raise money fast.
Equity Bank Group to invest Shs 12 billion in construction of Kigali Financial Towers. The towers will host Kigali International Financial Center intended to host key financial institutions including global investment banks. — The East African
*streamlining of imports using single window system such that importers interact with only one platform to import stuff rather than eight different agencies is bound to help imports
Streaming of imports to save the economy $150 million to $250 million annually. New law makes Kenya Trade Network Agency (KenTrade) a one-stop Customs release center and offers electronic trade transactions. — The East African
In Kenya, 8 of 10 youths are convinced the country is on the wrong track ;Young African Survey 2022 — The East African
Kenya is primarily a rental market due to unaffordability of home ownership. Only about 20% of Kenyans living in urban areas own their homes. — The East African
Non-performing mortgage loans increased to Sh28.3 billion from Sh27.8 billion the year before. The average interest rate charged on mortgages increased to 11.3% from 10.9% — The East African
Kenyan property market facing uncertain times over falling investments and reduced demand for home ownership due to inflation. House prices reduced by 4% in October to December 2021. — The East African
Russia is looking to sell more oil in Africa as Europe continues to reduce imports from the country. Russia has been shipping oil products to Senegal, Sudan, Ivory Coast and Togo. — The East African
Rwandan President Paul Kagame has taken over chairmanship of the Commonwealth for the next two years. — The East African
7.30pm, invite your friends, grab a drink, and join the conversation. https://t.co/XY0u1MCYHX
Keroche CEO says the tax deal she signed with KRA to pay taxes in installments was done under duress. Says installments were to high and it was unrealistic to pay such huge amounts shortly after reopening. — Business Daily
Naivas accepting to invite external experts and selling stake in the family business to large private equity funds was probably the best decision it could have ever made. Especially at a time it’s peers were collapsing.
With stock prices declining daily it is getting harder and harder to keep sane about investing. Join todays discussion at 7.30pm and lets consider how to prosper during an economic recession. https://t.co/Ubrg4dstlc
Naivas Supermarket has made Shs 101 billion in revenues in financial year ending this month. Naivas expects to make Shs 117 billion in next financial year.
Mauritian conglomerate, IBL Group, says the stake it has bought in Naivas is the biggest investment it has ever made in its history. IBL did not disclose the value of the transaction. — Business Daily
Consortium comprising of World Bank’s IFC and French private equity fund Amethis have sold 30% stake in Naivas Supermarket to investors led by Mauritian conglomerate IBL Group. World Bank and its partners had paid Shs 6 billion for the 30% stake in 2020. — Business Daily
Bad news for football live streamers after Multichoice won a court case that will compel Safaricom to block content on over 141 websites that host content owned by DSTV. This is the first time the court ordered has blocking of websites over copyright. — Business Daily
Cost of maize flour to remain high with millers struggling to import maize after transport costs per bag from Malawi and Zambia skyrocket to Sh1500 leading to a landed cost of Sh6000 per bag. — Business Daily
Vivo Energy to open 20 more fuel stations across the country before end of year , a move that will cement its dominance in the market. The Shell brand owner is the largest oil marketer in the market. — Business Daily
Vivo energy has raised market share to 26.52% up from 21.7% last year. It is the first time a single company has over a quarter of local petroleum sales. The growth was due to the oil shortage that hit small dealers forcing motorists to flood larger stations. — Business Daily
A UK investment firm has spent Sh108 million to buy 71% stake in Great Lakes Graphite. Great Lakes plans to begin rare earth mining in Homabay which contains lots of cerium, lanthanum and neodymium which are major inputs in magnets used for electric vehicles and turbines. — BD
A case of Kune: It is still mysterious how Kune burnt through Sh100 million given it had only 90 employees in its seven outlets. Further, they were selling cheap to make meals such as rice & beans at over Sh350 per meal. It shut down after failing to raise Sh409.5 million.
The president refused to assent the HELB amendment bill because it proposed that beneficiaries would start repaying their loans when they secure jobs, a change that sought to save millions of unemployed graduates from monthly fines. — Business Daily
Cost of foreign travel set to increase as EU now requires Kenyan passengers to obtain Schengen transit visa when connecting flights through Europe. The transit visa costs Sh10,500 (€80) — Business Daily
Manufacturing sector’s non performing loans jumped to Sh77.8 billion for the first quarter of the year accounting for nearly half of all bad loans. The sector was faced with high cost of raw materials and shipping and lack of access to dollars to pay suppliers. — Business Daily
Expect more lay-offs from companies in coming months. US raising rates means cheap funding will dry up and it will be increasingly more expensive for companies to raise capital. That coupled with rising cost of living.
Netflix has laid off 300 employees today as revenue growth slows. This is in addition to 150 employees laid off in May. Says it wants to keep costs growing in line with slowing revenues.
Higher yields means investors are pricing in a higher risk of debt default and makes it more expensive for Kenya to borrow in international markets.
Yield on Kenya’s 2024 Eurobond has rises by more than 10% (1000 bps) since start of the year to 15%. 2032 Eurobonds are up 5.75%.
NCBA CEO says dollar shortage driven by significant increase in cost of goods globally. Says there is a need to make it more valuable to hold the shilling vs holding the dollar. — Capital FM
Equity Bank top shareholder, Arise B.V., has acquired additional 29 million shares in the bank raising its ownership to 12.76% from 11.99%. Arise BV is backed by Rabobank and sovereign wealth funds, FMO and Norfund. — Business Daily
Let’s talk. Which is your best place to get loans?
Today’s Banks Rates: NBK is selling dollars at Sh126.85 DTB is selling dollars at Sh126.2 NCBA is selling dollars at Sh125.95
KRA has vowed not to reopen Keroche breweries over Sh22 billion tax bill — Business Daily
Safaricom share price is still declining. Its now selling at at Sh23.45 per share.
Tea exports grew 20% in the first quarter of the year to hit Sh41.1 billion. The tea fetched Sh303 per kilo on average. — Business Daily
Amaco insurance to be auctioned after it failed to pay Sh19 million debt to an NGO — Business Daily
Kune Food to shut down Kenyan operation after failing to raise more funds. At its peak it was selling 400 meals a day.
Sports Department says it has exhausted its funding allocations and thus has asked sports federations to seek alternative sources to sponsor sports events. The Kenyan Rugby team is begging Kenyans to donate towards helping it compete in its next match.
Kenya Railways has begun rehabilitating 127 km Voi-Taveta railway line which has not been operational in over 20 years. Once rehabilitated it will be linked to SGR for ferrying cargo from Mombasa port to Holili in Kenya-Tanzania boarder. — Business Daily
Over 50,000 United Kingdom (UK) railway workers went on strike over low wages and high inflation leading to chaos as commuters scrambled to find other means of transport around the country. — Business Daily
Rivatex , the Eldoret based textile manufacturer, says its operating below capacity over cotton shortage. Its receiving 3,000 bales of lint against a capacity of 20,000 monthly. — Business Daily
KBA house price index reveals that the average price of a house in high market segment- Spring Valley, Riverside,Milimani,Runda,Karen -is Sh21 million as at end of 2021. Houses in other parts of Nairobi averaged below Sh10 million. — Business Daily
Uber is expanding to Kisumu, Naivasha, Elementaita and Gilgil. — Business Daily
KRA officers to start using bodycams in a bid to reduce misconduct among staff. — Business Daily
Kenyans risk Sh20,000 fine or up to 6 months in jail for not separating organic waste from recyclable waste when disposing trash. Counties to license and regulate private garbage collectors. — Business Daily
Kwale Sugar to get Sh32 billion from Treasury as damages over lease of 15,000 acres of land for sugarcane farming. The court was forced to award damages after AG failed to respond in time. — Business Daily
Treasury set to borrow Sh846 billion for year starting July 1. The country’s current debt stands at Sh8.6 trillion. — Business Daily
Senate has approved proposal to raise debt ceiling to Sh10 trillion. Only three UDA senators voted to reject it. — Business Daily
The Competition Authority is raiding to top steel manufacturers to secure evidence that confirms price fixing. The cost of building materials has risen over 100% in the last year. Driving up construction costs. — Business Daily
Kenya Airways intends buy 40 flying taxis from Eve UAM ,Brazil. These 4 passenger units suitable for very short trips are selling at about Sh327 million each. — Business Daily
President Kenyatta declined three parliamentary bills among them the Information Communication Technology Practitioners Bill; Insurance Professionals Registration Bill of 2020; and Higher Education Loans Bill of 2020, all sent back to Parliament with memoranda. – CS Mucheru
Namibia announces its biggest oil discovery since independence estimated at 4 billion barrels (worth over $400 billion). Namibia is an $11 billion economy and at peak expects to be earning $5.6 billion. — Bloomberg
Kenya has about 4 million crypto-investors. — Business Daily
Russia has overtaken Saudi Arabia to become China’s main source of oil. It has increased oil imports from Russia by over 55% — Business Daily
Schools across the country have been rationing and changing their food menus due to rising cost of food and supply disruptions. Some schools have stopped co-curriculum activities so that they can save funds for food. — Business Daily
KRA to auction 193 cars at Mombasa port today for failure of the owners have failed to pay taxes. This could decongest the port and its warehouses. — Business Daily
3-5 people will get to share 100GB data under new data package by Telkom Kenya that costs Sh1,500 monthly — Business Daily
Failing to adhere to mandatory wearing of masks in all indoor meetings could lead to fines of up to Sh20,000 or 6 months in jail The mask mandate was reintroduced after positivity rate increased to 12.5% yesterday. — Business Daily
Cost of a 2kg maize flour crossed Sh200 this week, the highest in Kenya’s history on maize shortage. The price is up by Sh50 in one week. — Business Daily
Kenya Health CS has announced return of mandatory mask-wearing in PSVs, flights, offices, supermarkets and places of worship. Says Covid-19 numbers are worryingly high and if the trajectory continues, elections might be affected. — Nation
Greece is offering its citizens subsidies of between 30-50% to help households replace old fridges and air conditioners in order to cut down on power bills due to soaring energy prices. — Reuters
Tanzania has secured $1.1 billion (TShs 2.6 trillion) from the IMF to support economic recovery.
Germany’s producer price inflation hit 33% in May. This is the highest increase since the start of the statistic in 1949.
Keroche lays off over 400 employees after KRA closed down the company over unpaid taxes – The Star
Bank exchange rates: NCBA is buying US Dollars at Sh112.50 and selling at Sh125.55 National Bank buying US Dollars at Sh107.90 and selling at Sh120.80
East African Community leaders in Nairobi today for meeting convened by Kenya President to discuss security situation in the eastern Democratic Republic of Congo. — The East African
Kenya set to sign deal on July 5 with Somalia that will reopen miraa (khat) market for Kenyan exporters.
Newly launched I&M wealth management unit has gained over Sh700 million in assets under management from 45 new customers since launch in July 2021 — Business Daily
Treasury is sitting on unused Sh9.7 billion Covid-19 emergency response fund despite surge in infections leading to positivity rate hitting 12.5% on Friday. — Business Daily
PSV operators across the country have increased matatu fares by 20% on increased fuel prices. — Business Daily
Kabarak University set to build Sh35 billion mega-hospital in Nakuru county. It will be built on 100-acre land in Kabarak and will be a 500-bed teaching and referral hospital focused on Cancer and research. — Business Daily
What is the most important factor you consider when choosing a bank?
Kenya Ports Authority (KPA) has suspended release and receipt of import and exports from some shipping lines overpayments dispute. KPA says its owed billions by Kenya Railways Corporation and some shipping lines. — The East African
Invitation to contribute troops to the East African Standby Force has been extended beyond traditional East African Community countries to other regional countries like Ethiopia. The force will seek to disarm Congo rebels who refuse to dialogue with Congo govt. — The EA
Ethiopia Tigray (TPLF) rebel leaders say they are ready to dispatch high level delegation, fully mandated and briefed to talks convened and hosted by Kenya government. Ethiopia government to also send its delegation. — The East African
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Bitcoin now below $18,000.
Several routes in Nairobi will see an increase in fares by Sh20 to Sh50. The Matatu Owners Association (MOA) has asked its members countrywide to increase transportation charges saying the fuel increase has made the current fares unsustainable. – Citizen
Ethereum has also now fallen below $1,000.
Bitcoin falls below $20,000 to a low of $19,101.
The EACC says money that went through his M-Pesa amounts to Sh497 million, the properties are worth Sh694.6 million, and the cars are valued at Sh10.5 million. Source: Business Daily
EACC says in court documents that Nicholas Owino Ochiel, who is a senior assistant director of valuation at the Ministry, amassed the millions through corrupt schemes
A land’s ministry employee has been accused by EACC of unexplained Sh 1.2 billion wealth .
This is coming a day after Kenya President called for the East African defense forces to be immediately deployed in support of Congo government.
DR Congo supreme defense council has called for Congo government to suspend all agreements with Rwanda including economic pacts. Says Congo is backing M23 rebels and it’s troops are participating in rebellion against Congo government. — Bloomberg
Earnings from tea exports to Russia declined by Sh598 million in March as volumes drop 74% — Business Daily
Dollar shortage continues due to high demand despite the value of foreign currency deposits in local banks hitting an all-time high of Sh834.5 billion in April — Business Daily
Parliament has approved Laikipia County to borrow Sh1 billion via infrastructure bond. — Business Daily
Importers are experiencing delays in cargo delivery and collection at Mombasa port after payment dispute between KPA and SGR shipping lines. — Business Daily
Kengen has added 83 megawatts of electricity to national grid after connecting Olkaria 1 unit 6. — Business Daily
Energy CS Monica Juma says oil subsidy is unsustainable and is straining government spending. — Business Daily
Kenya’s maize supply from Tanzania has been cut off with over 400 trucks stuck at Namanga border post for lack of export permit. — Business Daily
The Ethics and Anti-corruption Commission to monitor public officials, civil servants and lawmakers suspected of theft for 10 years after office. EACC will conduct lifestyle audit if public officer is living beyond lawfully obtained and reported income. — Business Daily
Petrol currently selling at Sh159 without subsidy, it would be Sh184 per litre. Current fuel prices are pegged on the price of crude per barrel at $112.48 and any further rise in cost will see petrol prices hitting record highs by end of the year. — Business Daily
Billionaire Elon Musk has been hit with a $258 billion lawsuit that alleges he “engaged in a crypto pyramid scheme by way of dogecoin cryptocurrency.” — New York Post
Elon Musk has told Twitter staff that he wants at least 1 billion people on Twitter.
Tanzania government is proposing to reduce mobile money transaction fees by 43%. — The Citizen
Anyone noticed significant reduction in traffic everywhere?
The East African Regional Force will be deployed to Ituri, North Kivu and South Kivu provinces immediately to stabilize the zone and enforce peace in close coordination with UN peacekeeping force and Congo army.
Preparation for deployment will be finalized at a meeting of regional commanders in Nairobi on Sunday.
Kenya’s President Uhuru Kenyatta has called for immediate deployment of a new regional military force to try to stop rebel violence in eastern Democratic Republic of Congo. — Reuters
Unilever says it has changed the ingredient makeup for some of its products like deodorants and packaged food to cut costs amid rising inflation and mitigate supply constraints. — Reuters
MPs and Senators spend on foreign trips increased 775% to a Sh1 billion high. They used trips to boost monthly pay. They earn $1296 per diem a night in allowances for Singapore, $1196 in US, $1108 in London, $1102 in Swiss Cities. — Business Daily
Housing Finance has secured Sh475 million from KMRC at cheap 5.1% for onward lending to home buyers. The funds will help finance home buyers at friendlier rates and for longer periods. — Business Daily
The new government will be forced to float a roads bond within the next few months as pending bills rise 300% to Sh121.5 billion in March. — Business Daily
Uber Kenya set to review prices due to Sh9 per litre rise in fuel price yesterday. — Business Daily
KRA is collecting Sh62.89 on every litre of petrol It is the main beneficiary of increase in pump prices, making Sh22.9 billion in June alone. — Business Daily
Senate set to approve bill this afternoon that will restrict Kenyans from knowing the wealth of public officials. — Business Daily
The Nairobi Securities exchange has lost Sh627.5 billion of investor wealth since the beginning of the year. The value of all stocks stood at Sh1.95 trillion, the lowest point in 19-years. — Business Daily
This is the biggest increase since 1994
US has raised interest rates by 0.75% in bid to combat inflation.
South Africa says it is considering buying Russian oil to curb steep fuel prices: Energy minister — Bloomberg
International Energy Agency (IEA) says global oil supply with struggle to meet rising demand next year. — FT
Petrol prices would have been higher by Shs 26 and diesel by Shs 48 without subsidies.
Expect fuel prices to increase further when government starts eliminating subsidies.
Kenya Finance Minister says the country will gradually eliminate fuel subsidies by adjusting domestic prices possibly within financial year that starts next month. Says subsidies could escalate public debt to unsustainable levels. — Reuters
Ethiopian Ambassador to Russia says Ethiopia would connect to the international payment system created by Russia if China or Turkey participate in its establishment. Says it would also be suitable for Africa. — Kommersant (Russian Daily Newspaper)
Coca-Cola says it will delay public listing of Coca-cola Beverages Africa until 2023 due to current market conditions. — Bloomberg
Kenyan millers to import 1.5 million 90-kilo bags of wheat in the next 10 days to ease local shortage. — Business Daily
Crown Paints Shareholders who took up the rights units got a capital gain of Sh2.38 billion (334%) after share price rises to Sh43.40 Crown Paints market value has increased by Sh4.2 billion since the firm issued a rights issue last year. — Business Daily
Counties to receive Sh5.2 billion for leasing of medical equipment despite counties lacking specialized staff, space and power to operate them. Each county to get Sh110 million for leasing medical equipment. — Business Daily
Kenya Re unable to benefit from its land investments due to disputes and security concerns. KAA has locked it out from Sh720 million land near JKIA. Its in dispute over Sh563 million Kiambu Rd. property. Kenya Forest Service is claiming its Sh350 million Ngong Rd. property. -BD
Microfinance banks in Kenya have hit their sixth year of consecutive losses. Faulu, Maisha, and Rafiki took the largest loss positions of Sh522 million, Sh178 million and Sh153 million respectively. — Business Daily
Weakening shilling against dollar expected to strongly contribute to high prices of fuel which will lead to further increase in cost of living and inflation. Last month, Oil dealers were buying dollars at Sh118.34 while price of crude oil increased from $94 to $112.5 — BD
Oil marketers might increase cost of fuel further to compensate for forex exchange rates. Last month EPRA was compensating them at Sh116 per litre compared to the Sh118 per litre they were buying the dollars from banks at exposing them to loses of Sh2 per litre — Business Daily
KRA expects to beat its revenue collection target by up to Sh140 billion on enhanced tax enforcement and recovery measures. Its current target is Sh1.8 trillion — Business Daily
More bad news on this 1. These fuel prices include government subsidies and fuel subsidy budget was cut by 84% for year starting next month. 2. International oil prices are still rising. Brace yourself for higher cost of living.
Prices of Super Petrol, Diesel and Kerosene to increase by Shs 9 per liter respectively effective today midnight.
KRA has shut down Keroche Breweries in renewed tax dispute. More than 400 workers affected. — The Standard
Oil prices continuing to rise will make it more expensive to maintain fuel subsidies raising chances of prices at the pump continuing to increase.
Brent Oil rising, now trading above $124.60 a barrel. Approaching highest price since start of Ukraine-Russia war.
Metropol TV, a niche media house that focuses on business news has announced that it will be laying off journalists in the coming days. Intends to remain with lean team expected to reduce cost of running its operations.
Kenya and Nigeria have been heavily involved in the peace negotiations behind the scenes with former Nigeria president being said to have met both Ethiopia government and TPLF rebel leaders.
Prospects of peace in Ethiopia is good news for Safaricom which recently made significant investments in the country.
Ethiopia’s Prime Minister says federal government has formed a committee to negotiate for peace with northern Tigray region’s forces. – Reuters
Ethiopia Prime Minister says fuel subsidies are draining a vast amount of wealth. Confirms Ethiopia government will begin lifting the subsidies progressively from next month. — Addis Fortune
Nigeria to require social media platforms like Twitter, Facebook and Tiktok to open offices in Nigeria in proposed law. This comes after Twitter agreed to open offices in Nigeria as part of deal to lift ban on the social media platform. — Reuters
Standard Chartered Bank has revealed that the number of fraud threats doubled to 2,027 in 2021 compared to 1,018 in 2020. Top fraud threats were card fraud and payment fraud through social engineering schemes. — Business Daily
Crown Paint’s largest shareholder has increased ownership by 4.6% to 66.7% by buying 6.5 million shares during rights issue. — Business Daily
Kakuzi’s parent company to pay final instalment of Sh175 million as part of a Sh1 billion settlement for human rights abuses at Kakuzi in Kenya and EPM in Malawi. — Business Daily
Kenyan bank’s average lending rate rose to 12.2% in April – the highest level since January 2020 — Business Daily
Uganda is accusing Kenya of reintroducing tax on imports of eggs at Kshs 72 per tray. The tax had been suspended last December to avoid trade wars and allow for bilateral negotiations. — The East African
Bitcoin falls below $21,000.
Drop in stocks in the index largely driven by central banks’ move to tighten monetary conditions in bid to combat rising inflation.
MSCI all-country world stock index that tracks nearly 3,000 stocks in 48 developed and emerging market countries is now down more than 20% from record close in November 2021.
The two companies have for long resisted canning the popular cocktail for years, but are doing it now in response to changing global business dynamics
Coca-Cola and Jack Daniel’s to start selling Jack and Coke canned ready to drink cocktail.
National Bank has appointed it’s Finance Director,Peter Kioko, as it’s new acting Managing Director.
Cryptocurrency exchange, Binance, says it has temporarily paused Bitcoin withdrawals due to “stuck transaction causing backlog”.
If income doesn’t keep up with cost of living, then you would need to cut down on lifestyle.
Inflation can complicate retirement plans. If last year you needed Shs 50k every month to live the life you wanted and prices of the things you use every day doubled, you will now need 100k for the same kind of lifestyle. Your income needs to keep up with the cost of living.
Bitcoin now under $24,000 at $23,523.
Bitcoin falls to below $25,000. Celsius Network, one of the biggest crypto lenders, has halted withdrawals.
Cytonn HYS has failed to suspend a court order allowing arbitration between it and one aggrieved investor. Cytonn had argued that it has more than 3,500 investors and the orders may trigger an avalanche of similar applications for arbitration proceedings. — Business Daily
UBA bank drops court case over Uchumi’s Langata Road land over Sh172 million debt after it emerged that government was compulsorily acquiring the land and UBA would be paid first since it holds title to property — Business Daily
Banks have been bypassing auctioneers to cut costs of enforcing collections of amounts due to them. Auctioneers say this is illegal — Business Daily
Directors of Perl Beach Hotels, the owners of English Point Marina, have been blocked from accessing bank accounts at DTB bank pending hearing of an application filed by KCB bank. KCB had earlier seized the hotel for defaulting on Sh4.8 billion loan. — Business Daily
Kenya Ports Authority has been revealed to have bought locally made staff uniforms and overalls, but declared items as imported from Canada at three times more. KPA overpaid the supplier by Sh30 million for the overalls. — Business Daily
Kenya to cut marketing spend in Italy, Switzerland and Japan due to lower share captured and slow annual growth. The freed funds will be directed to marketing Kenya in China, UAE, Saudi Arabia. Tourism promotion and marketing activities have Sh1 billion budget — Business Daily
Unilever has also been accused of delaying over Sh100 million annually owed to Limuru Tea effectively granting itself interest-free loans with an indefinite settlement period. Source: Business Daily.
Unilever has also been accused of selling inputs such as fertilizer and labour to Limuru Tea at exorbitant prices and is the only buyer of the company’s tea leaves at prices often below those offered at Mombasa auction.
Joe Wanjui’s petition to CMA accuses Unilever of impropriety in Limuru Tea: Unilever is accused of undue influence on the board of Limuru tea with six of eight board members being current or former employees or past directors of Unilever, a breach of corporate governance rules.
Billionaire Joe Wanjui ,who owns 25% of Limuru Tea, has moved to court to block Unilever from selling its 52% stake in Limuru Tea currently valued at Sh443 million to a foreign private equity fund — Business Daily
CBK says it’s committed to keeping a free-floating exchange rate despite continued weakening of the Kenyan shilling. The IMF recommends that it keeps doing so. — Business Daily
Electricity bills to remain high after sources reveal that Ministry of Energy is yet to open talks with “big” IPPs on cutting power prices. Kenya has also not provided a budget for the promised second 15% cut. — Business Daily
China’s military general, Wei, says China will fight to the end if anyone tries to secede Taiwan from China. Says China relationship with United States is at critical juncture.
Former Twitter CEO Jack Dorsey has launched Web5 a new platform that levelages the best features of both Web2 and Web3
Which Kenyan sector is likely to have the highest returns in the next 5 years
Botswana Stock Exchange and Ghana Stock Exchange have joined African Exchanges linkage project bringing number of participating countries to 9. The project seeks to promote cross-border trading and liquidity. — The East African
Uganda President says the country has attained middle income status at a GDP per capita of $1,046. — The East African
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Despite repeated denials by TPLF and Ethiopia government, there have been frequent reports of talks in Kenya, the Seychelles and Nigeria.
Ethiopia government and TPLF rebel group said to be resolving war in Northern Ethiopia peaceful. There is speculation that telephone, electricity, banking and other services would be allowed in Tigray in the next few weeks. — Ethiopian Reporter
Ethiopia’s inflation rises to 37.2% in May from 36.6% in April.
IMF says governments should allow high global prices to pass through to domestic economy. Says it’s less costly to protect vulnerable households than keeping prices artificially low for everyone irrespective of their ability to pay. — The East African
Tanzania has signed framework agreement with Norway’s Equinor and Britain’s Shell that will bring closer the start of construction of a $30 billion (Kshs3.5 trillion) liquefied natural gas (LNG) export terminal. — Reuters
Tanzania already uses some of its natural gas discoveries for power generation and to run manufacturing plants. It also plans to build a fertiliser plant.
Tanzania President has ordered authorities to set aside between 70,000 and 100,000 hectares for cultivation of sunflower and palm oil to end shortage of edible oil facing the country. — The East African
Centum Investments is considering re-investing proceeds of the sale of its shares in Sidian Bank in treasury bonds in attempt to recover losses incurred in the transaction and improve cashflows. — The East African
Construction of the first phase of Kenya free trade zone — Dongo Kundu special economic zone — at the port of Mombasa will start in July after Kenya signed agreement with Japan’s JICA to undertake the project. — The East African
US inflation at multi-year high of 8.6%. Dollar surging on the news.
Embarrassing that Africa has so much arable land and resources but imports a lot from outside the continent.
US says it is working to get grains out of Ukraine into world market which will help ease food crisis in Africa. African countries import more than 40% of their wheat from Russia and Ukraine. — Bloomberg
Parliament has passed controversial ICT bill that will require IT practitioners to be registered by the Professional Body Institution of ICT Practitioners. IT practitioners will also be required to have a degree and pay to renew their license yearly. — Techweez
China-based phone maker, Tecno mobile, says it will launch new mobile money wallet service in Kenya to allow customers to make payments to small businesses and retailers. — Business Daily
Millers’ association says half of small-scale millers have shut down their businesses due to lack of maize. They also lack financial muscle to import. Large scale processors also not milling continuously as they should. Move likely to see increase in flour prices. — BD
Japan Central Bank, Japan’s Ministry of Finance and Financial Services Agency issue joint statement saying they are concerned by recent rapid weakening of their Japanese Currency, Yen.
National Treasury says it’s time the insurance industry consolidated and would rather have fewer stronger players rather than current situation where insurers lack sufficient capital to operate.
National treasury says it will allow the Insurance Regulatory Authority to shut down insurers who are not complying with new stricter capital requirements introduced in June 2020. — Business Daily
Mastercard, Qatar Holding, Chimera Investment and The Rise Fund invested Shs 64.2 billion in the Airtel Africa mobile money business.
Airtel Africa has sold 25.77% stake in local mobile money business as part of deal valuing Airtel Africa mobile money business at Shs 250 billion. — Business Daily
Pwani oil says supply consignment coming mid-month will also be dependent on dollar supply for cargo to be released. Says oil supply currently in the market is what it had produced months earlier.
Pwani Oil says it is anticipating shortage of oil products if current situation persists. Says it is currently not running its plant due to shortage of supplies. Says it is only expecting one supply consignment mid-month and won’t get another until end of July.
Pwani Oil says it is only able to source $500,000 to $1000,000 a day against a requirement of $2 million to $2.5 million, making it difficult to pay for supplies. Says Indonesia is also restricting oil exports which is creating supply issues. — Business Daily
Last year Kenya borrowed at 6%, the rate has since doubled. Likely to seek shorter-term loans from banks will lower rates.
Kenya has cancelled issuance of Shs 115 billion in Eurobonds after it received bids of 12% on the dollar loans. It will instead borrow dollar loans from commercial banks. — Business Daily
Ethiopian currency, Birr, black market rate is at 82 down 26% since start of month. Official rate is at 52. Surging inflation and shortage of dollars is driving up dollar black market rate. — Bloomberg
Armed forces of Democratic Republic of Congo have accused Rwanda of sending 500 special forces in green-black uniform disguise into Congolese territory. — Reuters
Speakers in virtual meeting that included Kenya Association of Manufacturers (KAM) Chair argued the prevailing crisis is more of a dollar pricing issue by banks rather than an acute shortage of dollars at the marketplace.
Meeting between Central Bank and private sector tentatively set for Friday.
Players in motor vehicle and travel industry say they are also struggling to access US dollars from their banks. Dollar shortage also said to cause Euro and Japanese yen shortage. — Citizen TV
Low demand has led Kenya Railways to switch to night trains only on its Nairobi-Kisumu route. — Business Daily
New study shows that primary school pupils at Bridge International Academies, Kenya after two years are nearly a whole additional year of learning ahead of children taught using standard methods. — Business Daily
Tanzania central bank says it will for the first time allow residents of East African and Southern African trade blocs to invest in its Treasury bonds and bills. Law effecting the change was gazetted in May. — Reuters
Kenya Power has opened a Sh340 million live line laboratory to test equipment. The laboratory may help cut revenue losses from outages by allowing live line repairs without switching off customers. — Business Daily
Kenya’s six Eurobonds have risen sharply in the past few weeks to trade above 10% in the secondary market making it expensive to issue bonds.
Treasury PS says the government is concerned about high yields on Eurobonds and will explore alternatives for borrowing to plug the budget deficit. — Business Daily
NCA wants the construction levy reinstated, saying the 0.5% rate will boost its ability to enforce standards. — Business Daily
Parliament says treasury should help recover Sh7.5 billion owed by Kenya Airways to Kenya Airports authority. — Business Daily
ICT CS Joe Mucheru wants schools to cut costs by leasing digital devices as opposed to buying them. — Business Daily
Safaricom says technical hitches have delayed rollout of the plan to block contact details when paying via Lipa na M-Pesa. — Business Daily
CBK says it will start regulating financial super apps such as M-Pesa app and Little. Super apps offer ecommerce, loans, insurance, investing etc. within the same platform. — Business Daily
PayPal to begin supporting the transfer of cryptocurrencies between PayPal and other wallets and exchanges.
Bread manufacturers say supermarkets are overpricing their bread above recommended retail prices so that they can sell their own in-house bread cheaper. Say they are already giving supermarkets margins way above what manufacturers of other products offer. — Business Daily
High Court has stopped Kenya Revenue Authority from demanding from Churches tax on tithes, donations and offerings. Court says churches do not need to seek tax exemption certificates. — Business Daily
Cooking oil prices expected to hike after Kapa Oil, maker of Rina vegetable oil, has revealed that it is operating below capacity due to dollar scarcity and inability to access raw material. — Business Daily
Sidian and Access bank Kenya to be merged to create the largest Tier 3 Bank in Kenya with a combined Sh57 billion in assets and Sh26.6 billion loanbook. — Business Daily
Parliament has increased the public debt ceiling to Sh10 trillion. — Business Daily
Nigeria’s largest bank, Access Bank, to acquire 83.4% of Sidian Bank Kenya from Centum Investments for Sh4.3 billion — Business Daily
Move meant to cut on waste and increase convenience for consumers.
European Union has agreed to force all companies — most notably Apple — to make smartphones, tablets and digital cameras with common USB-C chargers.
Fitch Ratings is forecasting that Kenya, Uganda, Rwanda and Tunisia will record budget and current account deficits of at least 7% this year. Says financial conditions will be challenging due to slowing global growth, rising US interest rates, strong dollar and high inflation.
The affordable concrete emergency shelters will be capable of disassembly, reuse and recycling.
Bamburi Cement’s Parent company Holcim and Norman Foster Foundation are working on a concept for building 1,000 units and a medical facility in one day using low-carbon concrete. This is after Holcim and Bamburi built Africa’s largest 3D-printed housing project in Kenya Kilifi.
Local steel manufacturer, Jumbo Steel Mill, has invested Sh2 billion in a new mattress and polyvinyl chloride (PVC) water tank factory in Kisumu. The plant will run 100% on 700kw solar power. – Capital FM
World Bank is forecasting Kenya’s economy to grow 5.5% this year from 7.5% in 2021. Expects high commodity prices will increase import costs, while the projected slowdown in global growth will soften the demand for Kenyan exports.
Britam has committed to support the fund in fulfilling its obligations.
Britam set aside additional Shs 2billion in 2021 to absorb losses from Britam Wealth Management whose cash outflows are expected to be higher than what can be met by the firm’s existing assets. Brings total cash set aside to Shs 7.2 billion. — Business Daily
Court of Appeal has reinstated PVR Rao as Mumias Sugar receiver managers. The appeal was supported by KCB and Sarrai Group of Uganda which says it has already contracted farmers for sugarcane farming. — Business Daily
7/n Housing Finance group is currently trading at Sh3 per share Source: Business Daily
6/n Housing finance in its latest annual report says it has engaged the CBK on its multiple regulatory breaches and its management is taking actions. It is among nine institutions that were flagged by CBK for non-compliance last year.
5/n Housing Finance plans to sell Rehani House in Nairobi CBD by the end of year in a transaction it says will boost core capital and generate a one off gain. It is also seeking to covert some of its borrowings into teir 2 capital and is opening talks with new equity investors.
3/n A bank should not lend over 20% of core capital to a single insider, such as a director or shareholder. Housing Finance’s single insider ratio stood at 66% as of December.
4/n Besides breaking banking rules, Housing finance has been going against covenants it has signed with multiple lenders including Shelter Afrique, East African development bank, and European Investment Bank. HF has received temporary waivers for some of these covenant breaches.
2/n A bank must not lend more than 25% of its core capital to one borrower (single obligor). Housing Finance’s single obligor ratio stood at 40% as of December.
1/n BREAKING: Housing Finance has been revealed to be breaching multiple CBK capital and lending rules. It has been engaging in extremely risky lending despite lacking sufficient capital.
Fuel prices expected to rise sharply by October after current fuel subsidy of Sh5 billion allocated for the year starting next month runs out. The fuel subsidy has been reduced by 84% which is expected to lead to a political headache for the next government. — Business Daily
Pwani Oil has been asking its customers to pay using dollars at a rate of Sh121 per dollar. It needs the dollars so that it can pay for the palm oil imports it needs to make cooking oil. — Business Daily https://t.co/o57jenhGyX
Twitter shares fall more than 5% after Elon Musk says he may terminate deal to buy Twitter if Twitter doesn’t provide information on fake/spam accounts.
Ethiopia has outlawed use of Bitcoin and other virtual assets. Threatens to hold accountable anyone involved in cryptocurrency and virtual assets transactions.
Beyond the headline: — Likely that there are other companies going through similar issues as Pwani Oil. — Importers may also start buying more dollars in advance in anticipation of continued shortage, worsening the issue. — Could damage importers relationship with suppliers.
Parliament’s Finance Committee is proposing to remove requirement for local vehicle assemblers who qualify for tax incentives to source 30% of parts from manufacturers operating in Kenya. Also proposes to exempt local vehicle assemblers from VAT and excise tax. — BD
AfDB to lend Sh17.5 billion to construction of Nairobi-Nakuru highway. This is 10% of the Sh180 billion needed for the project. — Business Daily
Kenyan tech companies raised Sh56.3 billion in January-March 2022 period. — Business Daily
Parliament to debate an extra 20% excise tax on digital loans that if approved looks set to hurt thousands of borrowers. — Business Daily
Safaricom is still trading slightly above its 52-week low. At Sh26.20 per share, it is trading at 15 times its earnings
Pwani Oil, maker of Fresh Fri, Salit and Fry Mate cooking oils, has temporarily shut down its oil plant because it has been unable to access enough dollars to import the raw materials it needs. — Business Daily
Parliament’s Public Investments Committee wants EACC to investigate Energy ministry as to why Kengen was denied approval to connect ready Geothermal wells worth Sh79 billion and 447 MW to the national grid. Why buy from IPPs when these wells remain idle? — Business Daily
Israeli Prime Minister has told the UN nuclear watchdog that it is ready to use its “right to self-defense” to prevent Iran from achieving nuclear weapons.
Angola’s biggest bank, Banko BAI, has raised $94 million (Kshs 11b) in the country’s first every initial public offering. It sold 10% of its shares. — Bloomberg
Increase in capital gain tax by three times will impact on sale of properties as sellers will have to pay more taxes. May potentially also impact on companies holding significant amounts of unrealized gains on the properties through increase in deferred tax expenses.
Additional items lawmakers agreed on: — Bioethanol stoves, fertilizer, and maize flour to be exempted from VAT. — No change on excise tax on beer
Kenya Lawmakers have agreed: — Capital gain tax increase from 5% to 15% should be approved. — Imported Cell phones should be taxed at 10% in excise duty. — 20% tax on digital lender’s fees. — 7.5% tax on gaming, betting, prize competition and lottery. : Bloomberg
The UN Security Council has urged all domestic armed groups in the Democratic Republic of the Congo to lay down their arms. Urges them to unconditionally participate in dialogue initiated by Kenya and DR Congo presidents.
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Kenya had indicated it would issue its Eurobond in June. Cost of issuing debt in international markets expected to increase as the US and other developed countries increase rates in a bid to fight rising inflation.
Nigeria says it is now planning on managing the situation to make sure it is not exposed to increased costs in 2022. Hopes 2023 will be better.
Nigeria says it has cancelled plans to issue $950m in Eurobonds because it is too expensive to issue in current unfavorable market conditions. — Bloomberg
Russia says it will strike the west if it is hit by a US made rocket. — The Times
Kenya has taken to Senegal suspected Monkeypox samples for testing. Kenya’s testing capacity is limited given the rarity of the disease. Ministry to create budget for testing materials should the tests turn positive. — The East African
Kenya says calls for debt relief by the UN and African Finance Ministers are timely and if heeded would provide a “breathing space”. Says it would help in pandemic recovery and weathering Ukraine war impact. — Business Daily
Tanzania’s CRBD Bank will launch a new bank in DR Congo in October this year. Norway’s Norfund and Denmark Investment Fund will each own 22.5% of the new bank. — The East African
Nairobi Stock Exchange index this week fell below 1700 for the first time in 20 years to a low of 1681.8. Drop driven by foreign investors sell off. — The East African
Kenya is seeking to construct the biggest import and storage gas facility in Mombasa. Plans to also license more private companies in bid compete with Tanzania. It has contracted Pakistani company, Petrochem, to design the 25,000 tonne storage facility. — The Citizen
Ahead of expiry of Kenya deadline to close down Kakuma Refugee camp by June 2022, South Sudan says it’s willing to receive its citizens back into the country. Asks its High Commissioner to directly coordinate with Kenya government on voluntary repatriation.
Users will need to generate a unique number that expires in 30 minutes every time they transact using the MPESA App.
Safaricom and Visa have launched MPESA Global virtual card. Transactions using the card will be subject to Mpesa limits of 150,000 and double that per day. The virtual card will later be introduced in Tanzania, DR Congo, Mozambique, Lesotho and Ghana.
Why Ndovu? 1. You only need a minimum investment of Ksh. 50,000 2. Easy to invest via the app (IOS or Android 3. Zero fee charged to invest 4. Advisory fee (tied to your plan) is taken from your first interest payment https://t.co/41zupej0nV
– Bond 2022/19: The government was looking to raise Ksh. 75 Billion, it received an oversubscription of Ksh. 132.2 Billion and a resulting return rate of 12.965% – Expected return for the current bond on offer 13*% per year (Ndovu estimates).
Here’s an overview of how the Government Infrastructure Bond has performed over the past year. – Bond 2021/021: The government was looking to raise Ksh. 75 Billion, it received an oversubscription of Ksh. 151 Billion and a resulting return rate of 12.737%
A 62-year-old Kenyan poacher has pleaded guilty to involvement in the illegal poaching of 35 rhinos and 100 elephants across seven African countries. He and his accomplices made, Sh865 million in seven years from selling illegal ivory and rhino horns. — Business Daily
MPs are currently debating: -⬇️ Lowering of VAT to 8% on cooking gas. -⬆️ 23.1% increased tax on beer -⬆️ New Sh50 tax per imported SIM card — Business Daily
Foreign investors withdrew Sh4.2 billion from the NSE last month, affecting the stock prices of Safaricom, BAT Kenya and Equity group. Safaricom declined 23% in May, ending the month at Sh26 per share. — Business Daily
Russia plans to resume wheat exports, which could lower the price of wheat locally. Wheat flour now selling at Sh202 from Sh150 in April. — Business Daily
US ambassador nominee billionaire Meg Whitman plans to overturn Chinese dominance by linking American tech giants to local deals. Her big mission will be to help build the country’s tech industry dubbed Silicon Savannah. — Business Daily
Parliament’s public investments committee says the Port of Mombasa should not have been used as collateral for the SGR loan.
In this thread we discuss how the infrastructure bond compares to other bonds, stocks and money market funds. We also discuss how easy it is to sell it to the secondary market and what the government will do with the monies raised. https://t.co/2Gp9CcQ73B
If you loved this thread and would love to see more like it. Please comment below on more questions and other threads you’d want us to do. Join our list here to keep up with our tweets. https://t.co/UPk6cD8bn2
Remember Ndovu is the only place you can get the bond for as little as Sh50,000 and while we wish it wasn’t so you have only today and tomorrow to invest in the bond at https://t.co/ab6DYr3vGP
Q: Why should I take this bond over money market funds? A: Locally, the best-performing ones make around 10.20% which is a measly 8.67% after tax. Compare this to tax-free 13%* from the infrastructure bond.
Q: How does it compare to stocks? A: You can’t perfectly predict the outcome of your share purchases on the other hand you know what exactly to get from your fixed-income portfolio. Even if you prefer stocks, bonds allow you to diversify and reduce risk.
Q: So why should you care about the infrastructure bond? A: The tax-free nature of this bond is its best feature. Let’s say the coupon comes in at 13%. Then it would be equivalent to a taxable bond with a coupon of 14.30%. No current issued bond has such a high coupon. None.
Q: Compare this to other bonds. Show comparative returns in numbers. A: Please see returns of historic bonds https://t.co/LaqOm6CE8z
Q: How will the government use infrastructure bond monies? A: The government states its expenditure plans within the annual budget. The money raised for this bond will be spent on those projects.
Q: Why are most of the people who invest in infrastructure bonds foreigners? Why are Kenyans shying away? A: We don’t have proper stats as to how many locals vs foreigners invest in a particular bond. Of late lots of local investors are getting into the market.
Q: Is the interest rate variable? Is it compound interest? A: The interest rate is not variable and is determined by the market at the point of issue. It is a fixed simple interest rate.
Q: Can it be resold in the secondary market by retail individual investors? If so, how easy/difficult is it to exit through the secondary market? A: On Ndovu, retail investors can sell the bond at any time. Ndovu will sell it on the secondary market for you. Exit is very easy.
Q: If the government was to start defaulting on its debt obligations, how will the bond be affected? A: The government could always refinance/ reborrow. If it is in distress, it can sell local assets to raise money or in an extreme scenario, it can attach fiscal collections.
Q: What fees does Ndovu charge for the bond? A: Zero fees upfront. If you deposit 100,000 no fee is cut upfront and the full amount is invested. Ndovu charges an advisory fee per your plan which is taken from your first interest payment. The advisory fee is btwn 0.75% to 1%
And we are back to answer your questions on the Infrastructure Bond. You can join in using @ndovuinvest by tomorrow at 9pm. This thread is crucial if you or someone you know is interested in safe investing.
If you haven’t, check our last thread on the basics of bonds and how to invest in them before you continue. https://t.co/9e48STiuhG
RedBird investment fund to buy AC Milan for $1.3 billion Redbird owns French club Toulouse and is minority owner of Liverpool club. — Business Daily
Property developers to pay between Sh10,000 and Sh40 million for mandatory environmental audits by Nema from June 1 — Business Daily
The value of stocks listed on NSE has dropped by Sh586 billion since the start of the year. Safaricom stock has declined 36.4% over the past 12 months to trade at Sh26. EABL has declined 23.8% over the 12 months and is now trading at Sh141. — Business Daily
Kenya to get Sh20 billion loan from AfDB this year. Sh11.6 billion will go towards budget support. The rest will be used on fertilizer and seeds. — Business Daily
Sasra has revealed that universities have been deducting loan-repayments from their employees but not remitting them to the saccos. Institutions of higher learning account for 62% (2.68 billion) of Sh4.31 billion non-remitted loan repayment deductions. — Business Daily
President Kenyatta on debt: “The only time debt is a burden to the nation is if a nation is led by looters. But in the hands of a visionary administration, debt is a catalyst for rapid development.” — Business Daily
Kenya Power to get Sh7 billion from the government to reduce electricity bills by 15% — Business Daily
Flower exports generate foreign exchange and manufactures are complaining that there is a shortage of US Dollars.
Available freight space stands at 3,500 against required 5,000 tonnes a week. Foreign flights coming in are normally restricted to protect Kenya Airways.
Kenya Flower Council says small scale farmers are throwing away about 20% of their daily produce due to short-fall in freight capacity. Says big players are locking out small players through advance bookings on airlines. — Business Daily
EFG Hermes says it sees Kenya Shilling official rate dropping to 122-123 per dollar by end of year. — Bloomberg
Acquisition of shares in listed Stanbic Holdings PLC by Standard Bank Group was done through Stanbic Africa Holdings. https://t.co/lReXoIbT1Q
Standard Bank Group has announced it has completed acquisition of 31,666,091 additional shares in Kenya’s Stanbic Holdings limited which increases its shareholding to 74.92%. Says it’s interested in buying balance of shares owned by the public through NSE.
CBK has raised its rates for the first time in seven years.
Central Bank of Kenya has raised rates by 0.5% or 50bps to 7.5%. Increase in rate meant to combat inflation.
Kenya’s Equity Group has a significant part of its balance sheet exposed to DR Congo.
Fighting in DR Congo between Congo government and the M23 rebel group recently intensified so much that Uganda sent troops to its borders to prevent spill-over of the fighting into Uganda. DR Congo recently joined East African Community and member countries agreed to intervene.
Rwanda has told DR Congo that the M23 rebel group Congo alleges Rwanda is backing is a Congolese internal problem. Says M23 rebel problem should be resolved using the framework established in recent Nairobi summit. Urges de-escalation. — Bloombergs
Germany and other western countries fighting inflation by raising rates means its going to become increasingly more expensive/difficult for countries and companies to borrow in international markets.
German inflation continues to rise, surges to 7.9%. German Finance minister says fighting inflation is an absolute priority.
About 52% of national debt is external. Shilling depreciation will push up national debt, need to raise more taxes and increase cost of living.
Kenya Association of Manufacturers says US dollar shortage is causing: – Manufacturers to buy dollars in advance, increasing working capital requirements – Cost of accessing bank/credit facilities to increase – Supplies being cut or delayed due to breach in credit limits
Kenya Association of Manufacturers says banks are not able to trade dollars among themselves which is worsening foreign currency shortage. Says there is risk of creating parallel shadow market with “unwanted consequences”.
Kenya Association of Manufacturers says the real Kenya shilling exchange rate against the dollar is above 120. Says none of its members can access dollars at official rate of 115-116.
Malawi devalued it’s currency last week by 25% due to what it says is limited capacity to generate foreign exchange and rise in import bills.
Kenya Airways has suspended ticketing services in Malawi due to the Malawi’s foreign exchange crisis. Malawi foreign exchange shortage has forced foreign traders to halt or suspend operations. — The East African
Centum has launched a real-estate rental portal at https://t.co/MuQrFf3aZl to reach potential clients and show available properties for rent and sale. — Business Daily
Sasini half year profits jump to Sh421 million on success of its diversification efforts. — Business Daily
Tea exports expected to drop as major buying countries have cut consumption due to summer season. Tea buyers have also sought to buy from Uganda, Tanzania and Burundi where tea is cheaper. — Business Daily
Co-op bank CEO says a higher dividend will be paid out this year. — Business Daily
Kenya Power to get part of Sh87 billion state loans to help ease effect of revenue drop when it cuts power tariffs. — Business Daily
Ministry of Health has lost Sh5.3 billion from donors due to lack of capacity to use the funds. — Business Daily
Only 2.6% (1.6 million) of Kenya’s (66 million) bank accounts hold more than Sh100,000 — Business Daily
The average lending rate in the banking sector stands at 12% ,it’s below the risk-free medium term to long-term government bonds — Business Daily
Africa Union has called for dialogue between DR Congo and Rwanda as tensions escalate between the two countries over resurgence of the M23 rebel group. — Reuters
Regional banks entering Ethiopia will have access to a population of 110 million people where less than 15% of the population have access to bank accounts.
Opening up of Ethiopia to foreign investors was part of a long-term strategy to reduce foreign currency shortage and had been agreed on with World Bank and IMF as part of support program before the war.
Ethiopia is looking to boost foreign currency inflows through the bank acquisitions.
Foreign banks looking to enter Ethiopia will need to either acquire local Ethiopian banks or form joint ventures in proposed law. Opening up of banking sector will also be limited to regional banks like Equity Bank, COOP and KCB. — The East African
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Tanzania has issued precautionary notice over monkeypox as cases rise in Europe. Urges anyone with symptoms to visit health centers. Says symptoms include swollen lymph nodes, fever, headaches and muscle and body aches.
Rwanda says two of its soldiers have been kidnapped by rebels in DR Congo. Rwanda is accusing Congo’s government of backing the group responsible for the kidnapping. — Monitor
Elon Musk says Bill Gates has a large bet against Tesla which would require $1.5b-2b (Kshs 234 billion) to close.
China’s Capital Beijing says from May 29 it will adopt dynamic COVID control measures that will relax curbs in some areas : City Official
Ethiopia economic developments are now going to also be important to Safaricom shareholders.
Ethiopia’s April inflation hit 37% in April as it struggles with foreign exchange shortage. It now expects economic growth at 6.6% down from 8.7%. — Bloomberg
Congo recently joined East African Community (EAC) where Rwanda is also a member. The EAC has been attempting to intervene in Congo including negotiations with rebels that were held in Nairobi.
DR Congo has summoned Rwanda’s ambassador and suspended RwandAir flights to Congo in response to what it says is Rwanda’s support for M23 rebels that have been fighting Congo government. — Reuters
Nairobi to install Sh6.5bn smart traffic lights and improve junctions to ease congestion on city roads. Nairobi has the second worst gridlocks globally, with commuters spending 55.8 minutes in traffic, leading to an estimated loss of Sh58 million daily. — Nation
Kenyans could be consuming food without the necessary nutrients, thus exposing them to nutrition deficiency. Only 46.4% of maize millers and 84% of wheat flour millers comply with food fortification standards. — Nation
15% of maize millers in the country produce maize flour containing high level of aflatoxin thus exposing consumers to various health complications, a new market surveillance study has shown. — Nation
It really is that simple to invest in the infrastructure bond. Remember the window closes next Friday on 3rd June. Ask your questions below and share with others if you liked the thread and want more educational threads like this one.
To Invest in Bonds with Ndovu: 1. Visit https://t.co/mQKGb2zgrT 2. Click on “Invest Now” then “Sign Up” After signing in, click on the “Government of Kenya Infrastructure Bond” 3. Enter the amount you wish to invest. 4. Add payment. 5. You will get a message congratulating you.
Fortunately, there’s a new and better way to invest in the bond. With https://t.co/5BnPDxidAU you can invest as little as Sh50,000 in the bond, not need a CDS account and not have to bid. Ndovu is a roboadvisor which means they handle most processes for you.
Traditionally bonds would keep small investors out. It is such a hustle to meet the minimum bid of Sh100,000 which keeps most people from investing in bonds. Many are yet to set up a CDS account which would be needed. Even with a CDS account, one would have to bid for themselves.
In case you need your money back early, you can sell the bond or you could use it as collateral for a bank loan. If you stick it out, You will get Sh50,000 (50% of your investment) back on 2/6/2031 and the remaining Sh50,000 (100% on 21/5/2040
So what’s the big deal? With Sh100,000, you get 13,000( lets assume 13% interest for the example.) in interest payment paid in two equal payments of Sh6,500 in June and December for the next 18 years tax-free.
The government has offered the infrastructure bond to raise Sh75 billion to fund infrastructure projects in the current financial year. The interest-rate will be market determined through bidding. (We expect about 12-13%) The bond sale next Friday 3rd June .
The main risk is that whoever you loan to should be able to pay you back. Buying company bonds is thus much much risker than government bonds. The second risk is inflation. If you locked in a 10% long term bond and inflation is 12% then your inflation-adjusted return is negative
A bond buyer lends money to the government or a company and in return receives a steady flow of regular interest payments back and eventually receives the original loaned amount back.
Grab a drink and lets take a deep dive into the world of Bonds. In this thread we will examine in the simplest detail: What bonds are, why should you care and the easiest method to invest in them. https://t.co/NKIAi7VWZU
Family Bank’s profits rose 43.7% to hit Sh1 billion in the first three months of the year.
On July 1 the East African community will adopt a 35% tax on finished imports such as furniture, leather products, fresh-cut flowers, fruits and nuts, sugar and confectionery, coffee, tea and spices, textiles and garments, head gear, ceramic products and paints. — TheEastAfrican
We will do an amazing thread on the new infrastructure bond tomorrow. What do you want to know about it?
Shoutout to @Satelliteforex for their great and incredibly negotiable FX rates. https://t.co/UdagWSqDyr
Growth in mobile money transactions has slowed from 56.1% last year to just 7.2% in the first quarter of this year. About 3,000 agents closed shop. Ease up of growth follows high fuel, food and import prices. — Business Daily
Creditors of collapsed ARM Cement lost Sh11.5 billion on liquidation. ARM’s Kenyan assets were sold to Narendra Raval’s National Cement for Sh5 billion. — Business Daily
Battery maker, Eveready ,will need more capital from share holders to stay afloat after its liabilities exceeded its assets It reached negative equity joining the likes of Mumias and KQ after it made half year losses of Sh8.4 million. — Business Daily
Belgium ambassador-designate Bitange Ndemo is the third richest on the list of nominees at Sh190 million in net worth.
New report has revealed that Kenya’s ambassador-designate to China Mary Muthoni is the richest nominee at Sh400 million. She is chair of the Retirement benefits appeals tribunal and a member of several retirement benefits schemes. — Business Daily
Eveready shares are currently trading at Sh0.8 valuing it at Sh168 million
Battery maker, Eveready ,will need more capital from share holders to stay afloat after its liabilities exceed its assets. It’s half year loses hit of Sh8.4 million. — Business Daily
Co-op bank is currently trading at Sh11.45 per share valuing it at 4 times its earnings and 1.09 its book value.
Co-op bank earnings grow 69% in first quarter to Sh5.8 billion up from Sh3.4 billion the year before. — Business Daily
Government to disburse Sh517 million to 94,000 poor households in Marsabit, Wajir, Mandera and Turkana. Each household to get Sh5,400 — Business Daily
Black rock, World’s largest asset manager, frontier investment trust was holding Shs 790 million or 1.7% of its frontier equity portfolio in Kenya’s Equity Group as of March 31.
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Net loans and advances increased 18% through organic and strategic acquisitions. The bank recently acquired Rwanda’s Banque Populaire du Rwanda (BPR)
KCB Group profits after tax surged 54.6% to Kshs 9.9 billion in three months ending March 2022 compared to same period last year.
Nation Media (NMG) has partnered with VC firm Antler East Africa to help create new digital products for its customers. — Business Daily
Chelsea FC to be sold for $5.3 billion to Todd Boehly. The $5.3 billion will be used for humanitarian causes in Ukraine. — AFP
PE firm, AfricInvest has raised Sh48 billion for investing in mid-sized companies in Kenya and the rest of Africa. It acquired 36% of AutoXpress last month. — Business Daily
Jumbo Steel to open Sh2 billion Kisumu plant in June. The mill will offer 600 jobs. — Business Daily
AfDB has banned Weihai construction for fraud in three projects including the Sh33 billion Kenol-Marua highway — Business Daily
33% of SMEs are owned by women and contribute 20% to the GDP — Business Daily
Treasury to spend second supplementary budget on an additional Sh37.8 billion to stabilize fuel prices to June 30. Sh15.8 billion has already been paid out to oil marketers in March and April. — Business Daily
Jubilee insurance has lent Sh1.7 billion to IPS Cable for use in buying more shares in Seacom. Jubilee currently owns 33.3% of IPS Cable and 18.8% of Seacom. Seacom is a Sh75.7 billion 15,000 kilometer submarine fibre optic cable project. — Business Daily
Kenyan billionaire Julius Mwale to build a 16 Gigawatt battery manufacturing plant next to his cobalt and nickel mines in DRC to power smart cities in Kenya and the rest of Africa. — Business Daily
Kenya spent Sh260 million on Former President Mwai Kibaki’s funeral. — Business Daily
The recovery for Africa will be very costly. Africa will need at least $432 billion to address the effects of covid on its economies and on the lives of its people, resources that it does not have. – AfDB
Lobby groups are asking Kenya government to suspend import taxes on grains to avert potentially devastating food crisis as prices have increased sharply. — Bloomberg
Gambian government says it is willing to prosecute former president Yahya Jammeh for a “myriad of crimes” committed by the regime during his more than 20-year rule – AFP
The Sh32 billion Mombasa port second container terminal is ready for handover with commissioning and operations expected to start in June. — Business Daily
US Dollar against the Kenya Shilling is now trading at Sh119 buying and Sh120.50 selling. Rate at @Satelliteforex
Maize millers say high flour prices will remain since its too expensive to import maize. Maize flour is currently retailing Sh150. — Business Daily
KCB bank, the second largest bank in Kenya, is currently trading at Sh35.95 which is near its 52 week low of Sh34. The Stock price values the company at 3.38 times its earnings, and 1.25 times its book value despite its high 8.34% dividend yield.
National bank’s MD Paul Russo was appointed as KCB’s new CEO based on his performance over the last 8 years at KCB and his turnaround of National Bank. Mr. Russo has a Strathmore MBA. A Management BA from Moi University and 20 years as HR expert. — Business Daily
MPs have rejected Treasury’s proposal requiring taxpayers to deposit 50% of the disputed tax demands by KRA while appealing the case. Currently, court determines whether KRA’s demands for security are justifiable then sets amount to be used as deposit. — Business Daily
Treasury wanted excise duty on beer increased from Sh121.85 to Sh134 while that of wines and spirits increased from Sh208.2 to Sh278.7 per liter. EABL had said a 10% rise in excise duty is too much and would make drinks very expensive.
Treasury to miss out on Sh50 billion revenue after its proposal to increase taxation on alcohol, juice and bottled water was rejected by MPs — Business Daily
Helb to issue a Sh22 billion bond to fund laptop purchases for university students. Helb will back the bond with its assets worth Sh110 billion. It also has a sovereign guarantee from the government for the bond. — Business Daily
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I&M Group PLC reports 44% growth in Profit after tax to Kes 2.7 billion in first quarter of 2022 compared to same period last year.
Russo served as group head of human resources at KCB before being appointed to run NBK in 2019 after it was acquired by KCB.
KCB Group has selected Paul Russo as new CEO. Russo currently heads KCB subsidiary NBK and will replace Joshua Oigara : Sources — Reuters
NMS has postponed the operationalization of the Green Park Bus Terminal that was set to commence today on request for a time extension by PSV operators
U.S President Joe Biden states that American troops would defend Taiwan militarily in the event of a Chinese invasion, a departure from a traditional policy of strategic ambiguity. – NYT
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UN Food Head has warned world’s food security conditions are “worse” than what was observed during Arab Spring over a decade ago.
Botswana’s real estate firm, Lethole La Rona (LLR) to acquire 30% of Orbit Kenya’s manufacturing facilities in Mlolongo for Sh842 million. — Business Daily
Kenya defaulted repayment on three loans from an international bank in the financial year in 2021. The country’s public debt now stands at Sh8.4 trillion. – Nation
CBK to raise Sh75 billion from sale of 18 year infrastructure bond at 12.96% tax-free interest This is the most lucrative security the government has issued in recent years and will likely be oversubscribed. — Business Daily
Bank earnings increased 25% y/y to Sh57.3 billion in January to March period on increased lending. — Business Daily
Uganda is now the first EAC country to fully shift to electronic passport. Kenya has pushed deadline for new generation chip-embedded passports to November. — Business Daily
Kenya’s pension payments for first 10 months of the year increased 53% (Sh39 billion) to Sh113 billion from Sh74 billion. The growth was caused the thousands of public servants who retired last year becoming eligible for monthly pension pay — Business Daily
Uganda President says offering subsidies and removing taxes on key Ugandan imports such as fuel and wheat is “suicidal and a blunder”. Says it would use up foreign currency reserves and cut tax revenues. — Bloomberg
Auditor General has raised issues with the procurement of 650,000 desks worth Sh1.9 billion to public schools. Procurement records were not provided and needs assessment details for audit review — Business Daily
Sportpesa founders made Sh8 billion in dividends in the 5 years of its operation. CEO Ronald Karuri made a cumulative Sh535 million in dividends for the period. — Business Daily
Global fertilizer shortage could lead to 10% drop in Kenya’s coffee production, a new report shows. Fertilizer prices have increased 71% to Sh6,000 per 50kg bag. — Business Daily
BCLB’s CEO said betting firms may be hiding their marketing spend as CSR spend. BCLB has ordered all gaming companies to disclose audited records of activities ,amounts and beneficiaries of their corporate social responsibility(CSR) spending and sponsorships. — Business Daily
The amount of unpaid bills by Parastatals has risen by Sh122 billion from Sh263 billion to Sh385 billion. About Sh228 billion is owed to contractors of public projects and suppliers of goods & services. The reminder is unremitted statutory and other deductions. — Business Daily
USD to Kenya Shilling trading at Sh119.2 buying and Sh121 selling Rate at @Satelliteforex
Pension funds recorded a -0.6 % return in Q1 due to bear market and weak shilling. Pension funds had 24.5% of their total assets in stocks. — Business Daily
BII, a British fund, has pledged to invest Sh81 billion over the next five years to Kenyan companies. — Business Daily
Traders withdrew a record 4.7 million kilos of tea worth Sh1.2 billion from auction after prices remained low at Sh262 per kilo. Teas has been selling below government set minimum price of Sh279 for three months. — Business Daily
IPPs say they Kenya power to hold open auction tenders if it wants to lower electricity costs. Electric bills are yet to reduce despite government promises in January. — Business Daily
Kenyan troops reimbursed Sh2.5 billion for Somalia mission — Business Daily
Platinum Credit and Premier Credit to get Sh4.6 billion financing from IFC for lending. — Business Daily
Centum share price set a new 52-week low of Sh9.6 on Friday marking a 36.2% decline over the past 12 months. — Business Daily
Four Cytonn executives- Ndande, Nkukuu, Arora and Njeri- to face fraud charges over unauthorized payment back in 2014 of over Sh1 billion at Britam, their former employer, after supreme court dismissed their appeal saying it lacked merit. — Business Daily
UK has also told high risk Monkeypox close contacts to isolate for 21 days.
Sportpesa paid out Sh380 billion in winnings in its first five years of operation. The amount is 85% of the Sh447 billion gamblers staked. — Business Daily
Belgium has become the first country to impose mandatory 21-day monkeypox quarantine for those who contract the virus as 14 countries confirm outbreak.
The current black market rate is as high as 72 while official is at 52. Ethiopia’s currency volatility is going to be increasingly important for Safaricom as it gets into Ethiopia.
The difference between the US dollar official and black market rate for the Ethiopian currency Birr has widened by up to 38%. The Birr has dropped sharply against the dollar. Rising commodity prices have pushed up demand for dollars.
Kenyans living abroad sent home Sh41.35 billion in April up 18.6% compared to last year. US accounted for 62% of the remittances. — Capital FM
US President says Monkeypox is a concern in that if it were to spread it would be consequential.
US National Security says it has vaccines available to be deployed for Monkeypox. — ABC News
Michael R. Bloomberg, the former mayor of New York City, to spend $242 million to promote clean energy in 10 developing countries including Kenya. -NYT
The US has warned that IT workers from North Korea are trying to get remote working jobs by hiding their true identities to steal money to fund their country’s weapon programmes. Many of them pretend to be from other parts of Asia. — BBC
Rwanda says it expects to receive its first batch of 50 asylum seekers from the UK in coming weeks. Under the deal with UK, Rwanda will be paid Shs 18.3 billion ($157m) by UK to cater for migrants to be ‘integrated’ into communities. — The East African
Cargo volumes at Dar es Salaam port have grown by 21% while they have dropped by 6% at Mombasa port. Decline at Mombasa blamed on move by Uganda and Rwanda to divert more cargo to Dar es Salaam. — The East African
Russia says it has taken complete control of Mariupol in Ukraine after surrender of last defenders. — WSJ
Ukraine to get another $40 billion in U.S. support as it continues to battle a Russian invasion. The legislation includes $20 billion in military assistance and $8 billion in general economic support. -AFP
Equity Group CEO recently said a significant portion of Africa’s fertilizer comes from Russia. Proposed idea that large fertilizer plants could be set up in Africa to help counter the global fertilizer shortage issue and help the West diversify supply.
African Development Bank has announced Shs 174 billion ($1.5b) fund to boost grain production in Africa to prevent potential food shortages. The money will be used to supply 20 million farmers with climate-smart certified seeds and fertilizer. — Bloomberg
Selling property then leasing it back is a strategy companies use to raise capital.
Letlole expects redevelopment and expansion of the Mombasa road property to be completed by end of 2023 and will then enter into another 20 year lease with Orbit. It expects minimum US dollar interest of 9.6%.
Orbit Kenya has sold its Mombasa road warehouse property for Shs 6.2 billion to Botswana listed Letlole Limited. Orbit will then lease back the warehouse for 25 years. Letlole expects to make 16% yield from redevelopment and expansion of the property.
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Helb is constantly underfunded and struggles with non-repayment this bond helps solve these problems. They will look at how much is required for the year then issue a bond of that size. The bond will likely be priced at 8%.
Helb has initiated tendering for advisory on floating of a Social Education bond. According to Helbs strategic plan it targets to float the bond by end of June.
Kenya had indicated it will go ahead and issue Eurobonds by June despite rates being very high.
Ivory Coast says it won’t allow itself to borrow in Eurobonds at current high rates of 8% or 9% like other countries. Says it will instead try to borrow from its regional markets. — Bloomberg
EA Cable is also eyeing proceeds from parent company, Transcentury’s rights issue and negotiating facilities in Kenya and Tanzania to fund operations.
East African Cables is selling parcels of land and non-core machinery worth Shs 460 million to raise cash to fund operations. — The East African
Uganda and Tanzania are planning to build a natural gas pipeline from Dar es Salaam to Kampala. Tanzania has already built 512kms pipeline from gas fields in Mtwara to Dar. — The East African
The gas pipeline will be constructed parallel to the East African Crude Oil Pipeline from Uganda to Tanzania.
Nigeria has signed universal health coverage into law. Plans to set up healthcare fund to cover up to 83 million poor people who cannot afford premiums for insurance schemes. — Reuters
WHO says Monkeypox virus cases are being detected among people engaging in sexual activity and the symptoms are unknown to many. Says it’s concerned that spread of the virus could accelerate due to parties and festivals in summer.
Europe has so far reported over 100 cases of Monkeypox in recent days.
The virus which in the past has been limited to Central and West Africa has started spreading in Europe and North America.
World Health Organization set to hold emergency committee meeting to discuss Monkeypox virus today.
China lockdowns are holding back flow of goods and affecting global supply chains.
China’s Shanghai Hongkou district has ordered all shops to shut and residents to stay at home. Says it will conduct mass testing between May 20-22. — Reuters
National Bank USD Buying at Sh107.90 and Selling at Sh120.80
US Dollar against the Kenya Shillings now trading at Sh119 buying and Sh120.7 selling. Rate at @Satelliteforex
Airtel has asked Uganda communications regulator to extend deadline to list 20% of its shares at Uganda Stock Exchange by one year. — Business Daily
Manufacturers and tax experts are asking lawmakers to amend law that requires including inflation when calculating capital gains tax on sale of houses, land and privately held shares. Proposed tax changes will also increase capital gain tax to 15% from 5%. — Business Daily
Kenya’s exports to Pakistan increased 21% to Sh16.8 billion in Q1 becoming Kenya’s biggest export destination. It is the biggest buyer of Kenyan tea. Uganda is now second with Sh13.9 billion in exports. — Business Daily
Kakuzi dividends increase to Sh22 per share up from Sh18 last year due to strong performance. — Business Daily
*mobile money based loans uptake
Report shows Kenya mobile money uptake is the highest in the world. Four in every 10 Kenyans have used mobile money to get a loan: GSMA — Business Daily
Kenya in talks with UK to fund Sh28 billion Central Railway Station. UK expected to provide up to Sh220 billion for Kenyan projects — Business Daily
Kenya’s debt repayments to China have risen 135% to a record high of Sh73.5 billion — Business Daily
KRA collected Sh7.4 billion less tax from airtime and calls due to reduced use after increasing excise duty from 15% to 20%. It had thought it would collect Kshs 8 billion more from the tax increase in 2021. — Business Daily
Zimbabwe has effectively devalued it’s official currency rate by 74% from 166 to 289. The currency has been falling in the black market. — Bloomberg
The world’s top financial leaders (G7) have called for swift and comprehensive regulation of cryptocurrencies following turmoil that resulted incollapse of the Terra stablecoin last week. — Reuters
Twitter executives have told Twitter staff that the Elon Musk deal to buy the company is proceeding as expected.
The 425-acre piece of land where the railway city will be build stretches from Haile Selassie Avenue, Uhuru Highway, Bunyala Road, Commercial Street, and Landhies Road.
Kenya and UK governments have today unveiled the final design of the Nairobi Central Railway Station. The project seeks to build eight-platform central rail station and a public space, which will anchor commercial and residential developments on 425-acre land. https://t.co/J13OeDlYeB
Indonesia to lift ban on palm oil exports from next week. This may lead to lower cooking oil prices globally .
U.S. Department of Agriculture is forecasting Kenya’s coffee production will decline by 10% due to lower fertilizer use. — Reuters
Sportpesa spent Sh4.4 billion on marketing in its first 5 years.
The privatization commission had planned to list some sugar millers on the NSE back in 2015. Perhaps it can resume those plans now that it has new directors.
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NSE CEO says it wants government to speed up privatization by selling shares of state-owned agencies. The last successful privatization by government was Safaricom IPO in 2008. — Business Daily
CDSC has suspended the introduction of a Sh100 monthly charge after investor protest. CDSC enables trading stocks in Kenya — Business Daily
Agriculture CS says Kenya will not import milk despite shortage. Milk supply fell to 61 million liters in March compared to 69 million liters in January — Business Daily
Old Mutual in talks to sell its stock brokerage business . Existing clients will be transferred to buyer. — Business Daily
Car & General’s profit increases 36% to Sh629 million for half year ended March. — Business Daily
The Sh250 million Nairobi Green Park Bus Terminal to open Tuesday next week. Only three matatus per sacco will be allowed to access the terminal at any given time. Touting will not be allowed at the terminus with each matatu allowed 20 minutes within. — Business Daily
Banks loaned out Sh317 billion for the year ended March — Business Daily
Sportpesa has revealed that it made a total Sh12.9 billion profit in its first five years. 2014- Sh44 million 2015- Sh1.6 billion 2016- Sh6.2 billion 2017- Sh2 billion 2018- Sh2.8 billion — Business Daily
Madison Capital ratio sunk to negative 59% last year. Under the insurance capital rules, real estate investments attract up to 40% in capital charges as government bonds attract 0%. Which is also why Madison really wants to dispose real estate investments.
Madison Insurance plans to sell property investments worth Sh8 billion to raise capital. Says it will quit annuity business, terming it an expensive product. It made a loss of Shs 1 billion last year. — Business Daily
County governments struggling financially after Treasury delays paying Sh109 billion in dues. — Business Daily
Survey shows Netflix is losing more long-term subscribers. It means that the company is struggling to retain its customers for longer period of time.
The European Central Bank (ECB) may raise its benchmark interest rate in July for the first time in more than a decade to fight record-high inflation (7.5%), with further hikes after the first being likely – Reuters
US Dollar against the Kenya Shillings now trading at Sh118 buying and Sh119.5 selling. Rate by @Satelliteforex which has has the best FX rates in Nairobi so far.
Registrar of Trademarks is being sued for SportsPesa trademark. It is being accused of fraudulently facilitating transfer of the brand from Pevans East Africa to Milestone Games. — Business Daily
Majority shareholders of companies looking to delist from Nairobi Stock Exchange will be required to make fair cash offers to buy out small investors in draft regulations. — Business Daily
CBK is seeking to raise Kshs 10 billion in 10 and 25 year bonds. 10 year bond pays an interest of 13.49% and 25 year pays 13.97%. — Business Daily
UAP insurance has delayed over Sh6.5 billion loan repayments to next year after it made a loss of Sh1 billion — Business Daily
Twiga Fresh its new commercial farming subsidiary has leased a farm in Taveta to grow onions, tomatoes and watermelons. Growing private label products will drive growth if it reduces costs and increases quality.
Twiga Foods to invest Sh1.1 billion in farming fresh produce — Business Daily
Representatives from 44 countries met in El Salvador to discuss Bitcoin
Kenya Competition Tribunal has found Royal Mabati guilty of misleading customers that they can deliver purchased roofing materials countrywide for free. The company was also found guilty of forcing customers to change product specifications after receiving payment. — BD
LinkedIn has increased Kenya subscription fees by up to Shs 1,400 due to new VAT on digital transactions. — Business Daily
Sacco Societies Regulatory Authority (SASRA) Kenya government officials are in El Salvador to discuss Bitcoin rollout and financial inclusion. — El Salvador President
DR Congo oil reserves that will be auction are estimated at 16 billion barrels which at today’s oil price of $107 a barrel makes them worth at least $650 billion with a recovery rate of just 35%. Current aging oil blocks are controlled by France’s Perenco SA.
Democratic Republic of Congo is planning to auction oil blocks worth estimated Kshs 76 TRILLION ($650 billion) at current oil prices. The blocks will be on auction between July 28 and 29. — Bloomberg
Standard Charted Bank Kenya profits up 15.6% to Kshs 3.93 billion.
Tired of low returns on local stocks? Try trading popular U.S stocks on @HisaApp
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Isuzu has handed over 48 D-Max pickups to Interior ministry as part of a Sh4.6 billion contract. — Business Daily
KRA has lost bid to collect billions in taxes from betting firms for 2018-19 period after judge found tax on winnings did not involve amount wagered. — Business Daily
Kenya Association of Manufacturers (KAM) ,says CBK should release excess dollars to ease dollar shortage and allow importers to meet obligations. — Business Daily
Equity bank spent Sh383 million on its DRC subsidiary last year raising its cumulative investment in DRC to Sh17.3 billion — Business Daily
Bamburi Cement has given Lafarge, its Swiss parent company, a Sh3.6 billion loan at 1.44% and Hima Cement, its Ugandan subsidiary, a Sh2.2 billion loan at 5.41%. — Business Daily
Equity bank and IFC have signed Sh19.2 billion deal to fund SMEs — Business Daily
CDSC to collect over Sh1.8 billion annually from its Sh100 monthly charge to be from July 15. CDSC facilitates holding and trading of shares in Kenya on over 1.5 million accounts. — Business Daily
3,480 low-cost housing units are currently under construction at a cost of Sh6.9 billion. Only 93 units were constructed in 2021. Jubilee Government was to construct 500,000 units before the end of its term but only 2,613 units have been completed since 2017 — Business Daily
Road construction spend is currently Sh5.5 billion over the budget. Sh68.6 billion compared to a budget of Sh63 billion. This comes at a time when Transport CS is seeking Sh9billion to rehabilitate road sections destroyed during construction of expressway. — Business Daily
Higher oil prices will also increase demand for dollars from importers and worsen dollar shortage.
Expect prices at the pump to keep rising if oil continues on its current trajectory. Higher cost of living.
Brent oil trading at March highs of $114.30.
US President Biden has signed order to deploy US troops to Somalia amid heightened concerns about al-Shabab extremists.
Elon Musk says information on number of bots on Twitter is very important to him in buying the company and he relied on Twitter’s public filings. Twitter CEO is insisting that calculation of number of bots was based on public and private confidential user information.
Elon Musk says his lowest estimate of Twitter bots is 20%. Compares spam Twitter bots to termites when buying a house. Says viable deal not out of question at lower price.
CDSC to introduce account maintenance fee of Kshs 100 per month. This means a person with a brokerage account that has Kshs 12,000 will lose 10% annually on the account without even trading or considering stock losses.
This will end 200 years of neutrality and anger Russia.
Sweden has officially announced it will apply to become a member of NATO. — Bloomberg
Ancestral House, a Nigerian e-commerce platform, has set up in Kenya hoping to help Kenyans export to Nigeria easily and vice versa — Business Daily
Ramco Plexus which owns 50% of Platinum packaging company and will be buying out the remaining 50% for Sh500 million. Platinum packaging controls 7% of packaging market. — Business Daily
Co-op bank spent Sh372 million on its South Sudan subsidiary in 2021 indicating that the subsidiary may be struggling. — Business Daily
Maize flour prices now at a historic high of Sh150 for 2Kg packet. 90kg bag of maize now selling at Sh4,500. — Business Daily
US Dollar against the Kenya Shillings now trading at Sh117.7 buying and selling at Sh118.9 Rate by @Satelliteforex
Safaricom backtracking on its 5G promise to focus on 4G. CEO says that until handsets that can receive 5G are at a sufficient scale from an individual mobile perspective there isn’t a big need to have lots of sites that offer 5G — Business Daily
Nairobi Stock Exchange has lost Sh294 billion in a month to a 20-month low following sell off by foreigners. — Business Daily
Kenya has approved Laikipia’s request to borrow Sh1.6 billion through domestic infrastructure bond. — Business Daily
Kenya is planning to allow maize imports from outside East African Community to counter rise in maize flour prices that have recently hit historic highs. — Business Daily
Radisson Blu has cut number of its employees by 30% as it resumes operations in Nairobi Upperhill. — Business Daily
Canadian Oil company, Africa Oil, says it is yet to reach any deal with interested investors in the Turkana Oil Project. — Business Daily
Zimbabwe has told its ordinary citizens with access to US dollars that they can import basic commodities for their own use to counter price increases by retailers. Plans to cut taxes on imports from ordinary citizens. — Bloomberg
RCNS has donated Sh203,000 towards school furniture. During project visit & official handover in February, the club donated enough foodstuffs to last for entire term and cash donations of Sh36,500. The school currently needs the following: https://t.co/grulG3QcOp
Kivaa Primary empowers underprieveledged deaf kids in Machakos county -who were mostly previously hidden from society- to get quality education and gain life skills It is seeking 180k to buy a computer, printer and water tank. Donate via PayBill: 4005031 Mpesa Account: KIVAA https://t.co/eUyLhZlR2P
Russian President Vladimir Putin is “very ill with blood cancer,” an oligarch close to the Kremlin said in a secret recording — New York Post
Kenya Petrol, Diesel and Kerosene prices to increase by Kshs 5.50 respectively effective today midnight.
The Chinese contractor who built the Nairobi Expressway has won Sh9 billion tender to rehabilitate the old road. — Business Daily
Netflix has told its employees that viewers will decide what is appropriate for them instead of censoring specific content. The company last month showed it lost subscribers for the first time in over a decade.
Netflix has told its employees to be prepared to work on content they may disagree with. Tells its employees to quit if they don’t like it. — WSJ
Russian State Energy Company has cut electricity supply to Finland over refusal to pay in Russian currency, Ruble. Finland recently said it will apply to join NATO despite Russia’s threats to take military action if it joins.
Cameroon, Chad, Equatorial Guinea, Gabon, Republic of Congo and The Central African Republic all use the CFA Franc controlled by one Central Bank and France.
The Bank of Central African States is preventing banks from partnering with cryptocurrency platforms after Central African Republic adopted Bitcoin as legal currency. Orders lenders to also monitor indirect attempts by customers to make transactions. — Bloomberg
The platform will facilitate African buyers to pool resources to buy from African suppliers and outside the continent where necessary.
African Trade Exchange has been launched to help African countries access commodities such as fuel and food whose prices have risen in the continent. The project is backed by African Continental Free Trade Area Secretariat, African Exim bank, AfDB & UNECA. — The East African
The United Arab Emirates’ President Sheikh Khalifa bin Zayed Al-Nahyan died aged 73 on Friday. He is likely to be replaced by his brother, Abu Dhabi Crown Prince Mohammed bin Zayed — Nation
Stanbic bank’s Q1 net profits rose 12% to 2.1 billion while is loanbook grew 31% to Sh206 billion
Zimbabwe’s President has commissioned a Sh3.2 billion medicinal marijuana farm – Citizen
Fuliza is Safaricom’s most lucrative loan product making Sh5.94 billion in Q1.
Daily active Fuliza users grew by 1 million to hit 6.9 million.
The amount disbursed on Fuliza rose 43% Sh502.6 billion in January-March period. That’s Sh1.2 billion daily. That’s Sh57 million hourly.
Court has ordered the Kenya to provide two activists with agreements relating to the construction of the Ksh450 billion SGR project. — The East African
BREAKING: Whatsapp file transfer limit increased to 2GB while its group member limit increased to 512. — WhatsApp Blog
Kenya government has committed to bailout Kenya Airways for the next 12 months to prevent its collapse. — The East African
Safaricom is seeking to raise Shs 232 billion ($2b) over the next 5 years to fund its Ethiopia operations. Part of the funding will be raised internally and through rental financing from equipment sellers. — The East African
Elon Musk has clarified that he is still committed to the acquisition of Twitter.
This will make it more expensive to defend shilling strength.
US dollar index rises above 105, highest price since late 2002.
Twitter shares fall 24%
Elon Musk has put deal to buy Twitter on hold pending confirmation that spam/fake accounts represent less than 5% of users.
Equity Group Holdings (EGH) Ltd posted 36% growth in net profit for the three months to March 31, 2022.
US dollar against the Kenya shilling now trading at Sh117.6 Buying and Selling at Sh118.8 Rate by @Satelliteforex
A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects and backed by the issuing entity’s balance sheet.
Equity bank’s income up by 33% to Sh11.5 billion while its interest income rose 31% to Sh26.6 billion in Q1 It’s loans increased 28% to Sh623.5 billion At this pace, this will likely be its most profitable year — Business Daily
Safaricom says it is considering issuing a green bond to fund its operations. Says it is top of agenda and is in talks with NSE and CMA on timing and amount. — Bloomberg
The number of Kenyans in need of humanitarian assistance has increased to 3.5 million due to drought that started last October — Business Daily
Kenya to lease thousands of acres of idle public land held by parastatals to private investors for food and cash crop production — Business Daily
Kenyan MPs want a 62% pay increase to Sh1.1 million monthly plus Sh7.5 million tax-free car grant. They also want house allowance reinstated and perks raised to Sh400,000 — Business Daily
Safaricom made Sh6 billion from Kenyan betting activity alone. That’s more than the total profit of most Kenyan companies. Betting is now the M-Pesa’s second-largest business line by revenue.
The value of bets placed via M-Pesa rose 24% to Sh169 billion — Business Daily
Bamburi Cement CEO says the company greatly benefited from Nairobi Expressway construction. Says the company is seeing slow down in infrastructure projects business as many projects come to an end.
Bamburi Cement CEO says the company will build 50 houses using 3D printing technology in Kilifi. Says the technology will help construction costs. — Business Daily
Bamburi cement CEO says the company’s cement prices have increased by an average of 10%.
Bamburi Cement CEO on challenges in the industry: — Transportation costs have increased by 30% — Coal prices are up 300% to $300 from $100 last year. — China lockdown making it difficult to import from China — Says dollar shortage situation ‘is very bad’. — Business Daily
China’s continued lock-downs will worsen supply chain issues.
China’s Capital, Beijing, has ordered three days of residents staying at home for COVID testing.
Foreign currency exposure to dollar and Ethiopia’s Birr may become increasingly more important for the company.
Safaricom’s Mpesa revenue grew 30.3% to Kshs 107.69 billion in financial year 2022. Growth in Mpesa revenue driven by resumption to charging previously zero rated transactions.
Safaricom says it converted the loan it took to finance Ethiopia license to $120 million 5 year loan and Kshs 31 billion 7 year loan where they will start paying principal after 2 years. It’s total borrowings increased to Kshs 65 billion.
Safaricom hit by foreign exchange losses of Kshs 9.5 billion from its Ethiopia operations. Comprehensive income dropped 15.6% as a result.
Safaricom to pay Sh0.75 dividend after its profit drop to Sh67.5 billion.
Bitcoin breaks below $27,000
CMA has set rules that require small business that want to issue bonds to have been in operation for at least two years with minimum capital of Shs 10 million. Smaller companies that don’t meet the conditions will require guarantees from banks/insurers. — Business Daily
Serena Hotel brand operator, TPS, reported losses of Shs 632 million last year. TPS is in talks with Absa Bank and Proparco to restructure loans besides receiving support from majority shareholder, Agha Khan Fund. — Business Daily
Agricultural firm, Sasini, more than tripled its profits in half year ended March to Shs 421 million. Increase driven by higher sales and lower costs. — Business Daily
Dubai based halal fast-food chain, ChickKing, is planning to open 30 fast food outlets in Kenya over next 5 years starting with Mombasa from next month. — Business Daily
Vodafone Group Plc is in talks to merge its UK operations with Three UK, which is owned by Hong Kong-based CK Hutchison Holdings. — Financial Times
Kenyan transporters say move by government to ban importation of second hand buses and trucks will make it unaffordable and could cause them to close down. Truck cost will increase from Kshs 5.5 million to Kshs 16 million. — Business Daily
Bitcoin has hit new 52-week low of $28,494.
Electronic Arts to stop making FIFA-branded soccer games, ending a run from 1993-2022 which made FIFA one of the best-selling games of all time.
Kenya’s existing Eurobonds have been the worst performing in Africa.
Rating Agency, Moody’s, says Kenya will have to issue Eurobonds to replace $2 billion in Eurobonds maturing in 2024 otherwise it would drain dollar reserves and strain domestic resources. — Bloomberg