Uchumi battles to recover Sh2bn from landlords

Uchumi had committed to open more than 20 outlets in Kenya in the mid-term and had reserved space in malls such as Centum-owned Two Rivers, Sarit Centre, Lake Basin Mall in Kisumu and Kenyatta University’s Unicity. The payments now appear to have left the company with a huge legal battle that might take years to resolve. The retailer has instructed its lawyers to serve the landlords with demand letters seeking refunds following the suspension of expansion plans [...]

NMG’s digital plan takes shape as new press starts rolling

Nation Media Group is banking on its large online presence and a revamped digital plan to double its revenues from advertising and e-papers, the management said. NMG's digital business currently accounts for about five per cent of revenue, riding on the flagship portal , www.nation.co.ke, which has an average of 90 million views every month. The company now plans to leverage on this Internet traffic and 15 other websites to [...]

IFC cuts Stanlib Reit investment after poor uptake

The International Finance Corporation (IFC) reduced investment in Kenya’s first Real Estate Investment Trust (Reit) to avoid breaching its rules after poor market response to the issue. The investment rules of the World Bank’s private financing arm do not allow the institution to own more than one fifth in such ventures. IFC will be the second-largest investor in the Reit behind only the Liberty Group — including Stanlib Kenya Limited and its fellow subsidiaries [...]

National Bank tests liquidity ratios as MPs reject State cash injection

National Bank of Kenya (NBK) has nearly reached the limit of its statutory ratios following Parliament’s rejection of the National Treasury’s plans to inject new cash into the institution. National Bank’s liquidity ratio stands at 21.1pc against a minimum requirement of 20pc, leaving a 1.1pc headroom. The bank’s capital ratios in relation to lending also remained tenuous with a headroom of only 0.9 percent above the minimum requirement of 14.5 per cent. This means that the institution must control the amount of lending going forward. The Treasury is reported to be mulling merging NBK with state-sponsored Development Bank of Kenya and Consolidated Bank of Kenya [...]

CFC Stanbic Q3 earnings down 34pc

CFC Stanbic has recorded a 33.6 per cent drop in profits after tax for the nine months to September following a decline in non-interest income. The bank posted a Sh2.7 billion after tax profit as at end of September compared to Sh4.1 billion in a similar period last year. The banks shares were trading at Sh90 each Friday [...]

Imports choke wheat farmers

Thousands of farmers in wheat-producing zones are stuck with produce with millers’ stores currently full of the imported grain. Millers have told farmers they don’t have more storage space and can only accommodate local wheat starting January. This is likely to affect next year’s crop as farmers might cut down on the acreage under wheat, affecting production in a country that relies on imports. Kenya is a net importer of wheat, producing 350,000 tonnes against an annual consumption of 900,000 tonnes [...]