Kenya shilling weakens, stocks up on bourse’s newly-listed shares.
The Kenyan shilling weakened on Wednesday due to dollar demand from importers in the energy and telecommunications sectors, while stocks rose for the fourth straight session. At close of trade at 1300 GMT, commercial banks quoted the shilling at 88.75/85 to the dollar, compared with Tuesday’s close of 88.60/70. John Muli, trader at African Banking Corporation, said demand was overwhelming the trickle of dollars into the market, but the central bank was helping to support the local currency by mopping up excess liquidity.
On the Nairobi Securities Exchange, the main NSE-20 Share Index was up slightly by 0.1 percent or 7.12 points to close at 5,190.01 points. On its second day of trading, demutualised Nairobi Securities Exchange’s shares surged 9.5 percent to 17.85 shillings.On the bonds market, government bonds valued at 1.8 billion shillings ($20 million) were traded, down from 2.71 billion shillings on Tuesday. […]
Kenya’s Trade Deficit Hit Sh105 Billion in July.
Kenya’s monthly trade deficit hit a historical high for the second time this year in July, surpassing the Sh100 billion-mark it first breached in May. Latest Kenya National Bureau of Statistics data show monthly trade deficit stood at Sh105.74 billion in July as total exports slowed for the third consecutive month to Sh43 billion, against total imports worth Sh148.74 billion.
Kenya’s total exports have been declining month-on-month after peaking in April at Sh49 billion.The decline in total exports has partly been affected by a drop in the value of exports of major cash crops – coffee and tea – whose earnings were less over the seven months compared to a year ago.
The deficit is among factors piling pressure on the currency, which has weakened faster over the past few weeks and forced the Central Bank to intervene. CBK posted the shilling as trading at a mean of 88.63 to the dollar yesterday. […]
Laptrust to appeal against pension regulator’s decline to renew licence.
Giant pension scheme administrator Laptrust will appeal against a decision by the Retirement Benefits Authority not to renew its licence as an administrator of retirement benefits schemes. RBA deregistered Laptrust Administration Services with effect from September 4, 2014 over what it termed as failure by Laptrust to comply with some directions it had issued. The action has the possibility of sending shockwaves across the country leaving the fate of over 30,000 Kenyans, mostly county government workers, hanging in the balance and more than Sh22 billion of assets managed by Laptrust floating in the market. […]
Mumias Sugar issues profit warning.
Mumias Sugar Company has warned that projected losses for the year to June 2014 would be bigger than the previous year’s pre-tax loss of Sh2.24 billion. “The company wishes to report that the projected loss for the year ended June 30, 2014, will be more than 25 per cent compared to the loss reported for the same period in 2013,” it said in a profit warning published in The Standard yesterday […]
Shelter Afrique, Jamii Bora ink Sh100m deal
Pan-African urban housing financier, Shelter Afrique and Jamii Bora Bank have signed an agreement that will see the latter receive Sh100 million loan to shore up its mortgage portfolio. The loan agreement signed by Shelter Afrique Managing Director James Mugerwa and Jamii Bora Bank Chief Executive Officer Sam Kimani, is meant to augment the bank’s ability to lend for the purpose of purchasing low-cost residential housing, incremental building and home improvement.
“We are restless when it comes to housing for the bottom of the pyramid and we are pleased that Jamii Bora Bank has approached us for this important housing deal.” Mr Mugerwa said. […]