Investors in Uchumi issue gain 45 per cent over two weeks

Uchumi’s share reached Sh13 this week, a 27 percent gain since it traded at a low of Sh8.05 after opening of its rights issue two months ago. The highest gainer has been Mumias Sugar’s whose stock is up 50 per cent. Those Uchumi investors who participated in the rights issue have enjoyed a 45 percent gain since their new shares started trading two weeks ago. The retailer is on an expansion drive and has sound financial ground after a competitive year where it lagged behind in the battle for retail revenues in Kenya. The company increased its listed shares by 37 per cent following the issue, increasing liquidity in the stock [...]

CIC expands into Uganda, Malawi with joint ventures

The company has done joint ventures to expand in to Uganda, Malawi and South Sudan. In Uganda, for example, it has partnered with Uganda Cooperative Alliance Ltd and Uganda Cooperative Savings and Credit Union Ltd to form a jointly-owned insurance company and open subsidiaries in the country. In Malawi, it has made a 50:50 deal with Malawi Union of Savings and Credit Cooperatives (MUSCCO) to form a cooperative insurance company that will target the Sacco’s’ members. The company has released an information memorandum where it intends to issue the Sh5 billion bond got last year, where 26 per cents of the proceeds are to be used for expansion into the three markets, 24 per cent of the proceeds would go into recapitalization of its subsidiaries, 34 percent to go to real estate and the balance of 800 million will be put into the construction of a medical facility. The bond which went on sale in the last quarter of 2014 attracted bids worth Sh6.34 billion against the Sh5 billion sought [...]

NSE seeks to hire derivatives market team

The trading of derivatives is set for this year with NSE beginning recruitment of a derivatives market oversight board, comprising a minimum of seven of its own nominees, at least one NSE executive, two NSE directors and two individuals representing public interest. The members will be hired for two years and will meeting at least once every quarter. The work of the derivatives market oversight board would be to advise the (NSE) board on risk, strategic issues and oversight roles relating to the NSE’s derivatives market and the NSE clearing house. The team will also be tasked to develop arbitration procedures and address any conflicts of interest in the regulation of trading members or futures brokers, futures contracts’ design and trading, and surveillance functions. The NSE which was awarded a conditional license in December last year by the Capital Markets Authority to operate the derivatives market wants to use part of the Sh627 million raised during its August IPO in August as seed capital for the futures exchange [...]

New money sector council in the pipeline

The Kenyan government plans to form a supervisory body which will be tasked with conducting a nationwide financial literacy campaign with an aim of boosting stability in the financial industry. This body, named the Financial Stability Council, will ensure the country’s economy does not slump, like what happened to most developed countries during the 2008 financial crisis. The body will oversee the banking, Sacco, insurance, pension and capital market industries. It will be tasked to coordinate other regulators including Central Bank of Kenya and the proposed Financial Services Authority (FSA), the regulator of the non-bank financial sector [...]

Upper Hill land most costly as prices in Nairobi up 535pc

Prices of land in Nairobi have shot up by 535 per cent over the past seven years according to a report by property expert Hass Consult. For example, an acre that cost around Sh30 million in 2007 is now going for Sh170 million. The reason for this price increase is unprecedented growth in housing and construction of commercial buildings.  Upper Hill was listed as the most expensive followed by Milimani. The firm has also indicated that land prices are expected to rise in Eastlands once the recently launched Outering Road upgrade is completed. Rent on the other hand has risen with Embakasi, Kileleshwa and Lang’ata recording the highest margin respectively [...]