Chase Bank plans to boost capital base as profit hits Sh2.3bn

Chase Bank is set to undertake another capital raising venture following rapid growth, straining the ratios set by the regulator. Its total capital as a ratio to its loan book stood at 15.3 per cent in December compared to the minimum ratio of 14.5 per cent - leaving a headroom of only 0.8 percentage points. In the last three years, the bank has conducted two rights issues, invited three strategic investors and booked more than Sh10 billion in long-term debt to cover its capital needs. Banks are required to match their growth with higher capital to ensure they have financial muscle to absorb any shocks they may encounter [...]

Tea prices hit two-year high at auction as drought bites

Tea prices at the Mombasa auction have hit a one-year high as severe drought continues to take a toll in the volumes of the country’s top foreign exchange earner. Bad weather in tea growing zones has forced a number of farmers to prune their crop at this time of the year even though the exercise is normally done in June. They have pruned in readiness for the rainy season. The high prices come as a boom to traders who have grappled with low prices at the auction in the last two years. The price of tea was low last year due to an increase in production in the world market [...]

Nairobi bourse joins the UN’s exchanges club

The Nairobi Securities Exchange (NSE) has become the fourth stock exchange in Africa to join the United Nations Sustainable Stock Exchanges (SSE), which works towards enhancing corporate transparency among financial markets. There are now 18 stock exchanges on the United Nations Sustainable Stock Exchanges list across the globe. The NSE will work with other member exchanges of the SSE in enhancing social and corporate governance (ESG) issues, while encouraging long-term approaches to investment among investors [...]

NSE 20-share index drops on foreign sales

The Nairobi Securities Exchange (NSE) blue chips lost 28.32 points in Tuesday’s trading to stand at 5,313.84 points as shown by the NSE 20-share index. The All-Share Index also went up 0.33 points to stand at 171.99. Analysts said that foreigners were net sellers in the bourse with their participation falling [...]

Dura Coat maker eyes Uganda and Tanzania

Basco Paints on Tuesday said it will invest Sh800 million for expansion into neighboring countries. Basco Paints intends to set up operations in Uganda, Tanzania, and Rwanda, employing an additional 700 workers. The growth plan will be partly funded by Barclays Kenya and CFC Stanbic bank, which have been the manufacturer’s main financiers. Construction of the new plants is expected to kick off in less than two months, with phase one set to be completed by June this year and the remaining factories expected to be done by October [...]

PwC survey says Nairobi tops Africa in entertainment

A survey by international audit and advisory firm PricewaterhouseCoooper (PwC) has revealed that Nairobi residents have the fastest growing spending in entertainment in Africa underlining rising disposable income in the city. PwC said Nairobi’s current 12.5 per cent growth in entertainment and media expenditure is expected to continue up to 2018 as the middle class seeks to catch up on many of the products and services that urban dwellers in developed countries have long enjoyed. PwC also marks Nairobi as a hub for financial services together with Johannesburg [...]