ARM set for Sh12.7bn cash boost from foreign investor

ARM Cement is seeking to raise $125 million (Sh12.7 billion) from a strategic investor who is expected to take a controlling stake in the company once it converts the preference shares it is allotted in the Nairobi Securities Exchange-listed firm. ARM Cement appears to have abandoned its recent plan to raise up to $105 million (Sh10.7 billion) through a five-year private bond. ARM’s fundraising has been spurred by its expensive short-term debts that have partly contributed to its losses. The company had in August announced plans to issue a Sh7 billion bond before raising the amount to Sh10.7 billion last month [...]

US agency maintains stable rating for Kenya Re

US rating agency AM Best has maintained a stable rating for Kenya Reinsurance Company (Kenya Re) meaning the reinsurer is in a strong position to pay claims. AM Best said the score was influenced by Kenya Re’s growth in revenues and posting profits in the first half of the year. AM Best assigned Kenya Re’s financial strength a B+ (Good) rating and a “bbb” rating for the listed firm’s credit strength. The outlook for both ratings is stable [...]

Banks face stricter CBK supervision in the New Year

Central Bank of Kenya (CBK) has fired a warning shot at commercial banks that it will impose a more stringent supervision regime next year as it tries to claw back public confidence severely eroded after the closure of two banks this year. The banking regulator has sought help from the IMF to strengthen its supervision department, whose credibility has come under much scrutiny [...]

eBay founder invests in digital currency, asks for official flexibility

Founder of eBay Pierre Omidyar has invested an undisclosed amount in a digital currency platform and is now asking central banks to embrace the innovation of virtual cash such as bitcoin. The Iranian-American billionaire’s investment in the cryptocurrency firm comes at a time Central Bank of Kenya has cautioned the investing public against dealing with digital currencies such as bitcoins [...]

Firms invest billions in a slow property market during 2015

The real-estate sector in 2015 has continued to grow but at a slower pace due to oversupply in some sectors and high interest rates that made borrowing expensive for developers. Currently active international firms in Kenya’s real estate are Aviation Industry Corporation of China (AVIC), Garden City mixed development whose opening marked the entry of South African mega retailer Massmart into the Kenyan market and South Africa’s Delta Africa Property Holdings entered Kenya’s property market through the Buffalo mall development [...]