Saturday Brief – 31st Jan

Shilling steady on liquidity, overnight rates up

The Kenyan shilling has become steady against the dollar on Friday with dollar demand restricted by tight local currency liquidity that has led to rising interbank lending rates. At 0743 GMT, commercial banks quoted the shilling at 91.65/75 to the dollar, from Thursday's close of 91.60/70. This could be due to demand for dollars by importers and tight liquidity of the shilling which has kept the local currency from weakening. The Central Bank of Kenya is unlikely to inject money into the market to ease the shortage of local currency. This tight liquidity is expected to make it slightly more expensive for banks to hold dollars, thus cushioning the shilling. Traders expect the shilling - which has lost 1.1 per cent so far this year - to trade in the 91.50 to 92.00 range against the dollar in coming days [...]

East African region closed 145 deals valued at Sh309b in 2014

Burbidge Capital, an advisory firm has released an East African Financial Review 2014 report, that indicates that East African region last year closed 145 publicly announced deals for a total value of $3.4 billion (Sh309.4 billion). This shows a 49 per cent increase compared to those in 2013. Kenya and Tanzania have accounted for more than 80 per cent of the deals with most of them occurring in the natural resources sector, which saw 38 deals closed in 2014 from 22 in 2013. The study also revealed that the financial services received high interest from investors last year, recording 30 deals valued at $515.8 million. The insurance sector especially is expected to lead in growth and activity in 2015 due to the imminent high growth potential for the industry as well as the higher capital demands [...]

KCB in Sh30m boost for Kwale's livestock sector

The KCB Foundation, on Wednesday, signed a Memorandum of Understanding with the Kwale County government. The Foundation committed at least Sh30million to support the livestock sector in Kwale County in a move to propel the sector to commercialization in the next five years. The joint partnership is part of the Mifugo ni Mali livestock project, which the Foundation has been implementing to empower farmers from Arid and Semi-Arid Lands (ASAL) reap maximum returns from their produce. The funds will be utilized to empower livestock farmers with skills and knowledge in improving productivity, growth, competitiveness and sustainability of the livestock sector in the county [...]

Kenyan investors mint billions from Old Mutual buyouts

Old Mutual, a UK financial services group, has been on an aggressive purchasing spree of Kenyan companies, earning local investors billions of shillings. On the other hand, the remaining shareholders in the companies they have bought, have increased their portfolios by more than double in seven months. Some of the investors who have gained billions of shillings from the buyouts are Joseph Wanjui, the chairman and the biggest individual owner at UAP, whose stake is now worth Sh7.7 billion based on the Sh180 per share price at which Old Mutual bought out his co-investors. Businessman Chris Kirubi, after selling his 9.58 per cent equity in UAP to the multinational, earned Sh3.6 billion before tax. The founders of Faulu Bank earned Sh3.6 billion from Old Mutual, when it acquired a 67 per cent stake in the microfinance institution last year. Other individuals who have earned from Old Mutual’s buying spree in the past are Mr Josphert Konzolo’s, who received millions of shillings in 2010 after Old Mutual acquired a 70 per cent stake in stockbroker Reliable Securities where he was the principal shareholder [...]

 

 

 

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