IFC eyes 11pc in Kenya Re partly owned reinsurer

The International Finance Corporation (IFC) will acquire an 11 per cent stake in Zep-Re, in a Sh1.9 billion deal. Kenya Re, which is opposing this share purchase, has its shareholding in Zep Re shrunk to 16 per cent from 20.7 per cent two years ago following the entry of two development financial institutions [...]

Kenya headed for 7pc growth for first time in eight years

IMF said in a new report focusing on sub-Saharan Africa that the local economy will grow 7.2 per cent this year on increased foreign direct investment and improved balance of trade. International Monetary Fund (IMF) said in a new report focusing on sub-Saharan Africa that the local economy will also benefit from a narrower current account deficit —the difference between imports and exports [...]

Interbank rate below 10pc on rising liquidity

The interbank rate has fallen below 10 per cent for the first time in three weeks as liquidity in the money market improved. Rising liquidity in the market reduces the need for banks to borrow from one another on emergency basis to cover their cash positions, thus pushing the overnight rate south [...]

NSE dips below 5,000 on foreign sale

The NSE 20 share index has slipped below 5,000 points for the first time since December as the prices of several constituent counters slid on selling by foreign investors. The index reflected the declining fortunes of many of the blue chip companies listed on the Nairobi bourse. Analysts said that foreign investors were net sellers, contributing to the fall [...]

Centum targets key Olkaria steam, issues Sh6bn bond

Akiira Geothermal, partly owned by listed firm Centum Investments, has embarked on recruitment of key staff ahead of exploration drilling near Olkaria. Akiira intends to construct a geothermal power plant at a cost of Sh29 billion. It intends to produce 70 megawatts of power at the plant. Centum has also announced it had received Capital Markets Authority (CMA) approval for listing a Sh6 billion fixed-rate and equity-linked notes on the Fixed Income Securities Market Segments (FIMS) of the bourse, part which will go to its energy investments. The sale opened Monday [...]

KenolKobil signs deal with BP to supply lubricants

British Petroleum (BP) is Monday set to sign a local lubricants distributorship deal with KenolKobil, signalling a thaw in relationship with the UK-based oil major, following a legal tussle between the two companies over an agency contract. The signing will enable Kenolkobil to continue distributing the Castrol-branded lubricants which will potentially strengthen its financial health. Kenol returned to profitability in the year ended December 2013, with a positive bottom line of Sh558.4 million. In the period to December 2014, the marketer reported a net profit of Sh1 billion [...]

Botswana retailer picks Kenyan partner in EA growth plans

Choppies Supermarket, a Botswana-listed retail chain has picked a Kenyan businessman as its partner to help in its expansion plan into East Africa. Birju Pradipkumar Patel, who serves as a director at Export Trading Group — one of the largest global agriculture commodity companies based in Dar es Salaam — confirmed that he had partnered with Choppies for its Kenya and Tanzania operations [...]

Airtel suppliers reject new commission rates

Airtel Kenya has sparked a row with its suppliers who have accused the telecommunications firm of changing their contract terms unfairly. Airtel distributors are seeking to reverse a notice of price and structure changes the telco issued between March and April.  They claim the new payment terms were designed to work only in Airtel’s favour and should be quashed [...]