CfC Stanbic sees a rise in corporate bond issuance

Standard Bank of South Africa majority-owned CfC Stanbic expects an increase in corporate bond issues in the coming year. The bank projects an increase from this year’s issuance of about Sh14 billion, which is lower than previous year figure of Sh30 billion. Among the largest issues in the year was that of East Africa Breweries bond of about Sh5 billion ($50 million) [...]

Mwalimu Sacco summons EGM to approve Sh500m cash call

Mwalimu Sacco-owned Equatorial Commercial Bank (ECB) is looking to raise an extra Sh500 million through a rights issue as it seeks to shore up its deteriorating capital adequacy ratios. Equatorial Commercial Bank wants to increase its authorised capital to Sh3.825 billion from the current Sh3.325 billion. The bank will sell 100 million shares at Sh5 each to its existing shareholders [...]

Insurers dealing with unrated firms to hold higher capital levels

Insurance firms which give their reinsurance businesses and credit to unrated companies will be required to hold higher capital levels in a move meant to protect the industry from defaults. The Insurance Regulatory Authority is recommending that insurers hold capital equivalent to amount owed by unrated creditors while putting in the equivalent of 45 per cent of what is owed by the worst rated companies [...]

Tullow woes force Atlas to shut down Kenya units

The extent to which Kenya’s nascent oil industry has unravelled emerged on Tuesday as logistics firm Atlas Development liquidated local operations on uncertainty over payment of Sh225 million ($2.2 million), part of it owed by Turkana explorer Tullow Oil. The fall in oil prices has left oil companies in the Kenyan upstream sector facing tighter financing prospects leading to [...]

Former envoy Awori bags four board jobs in one year

Former envoy Dennis Awori has bagged four directorship positions in the past one year, emerging as the new blue-eyed boy of corporate Kenya— highly sought after for his business credentials and political connections. On Tuesday, he began his tenure as a non-executive director at TransCentury, adding to his November appointment as the Kenya Airways chairman. President Uhuru Kenyatta in October tapped Mr Awori to join the Vision 2030 Delivery Board; having taken over as chair of the Kenya Private Sector Alliance (Kepsa) in May [...]

Longhorn seeks to increase share capital five-fold in cash call

Longhorn Kenya is set to increase its share capital by more than five times in a rights issue meant to boost its balance sheet. Longhorn Kenya will seek approval from shareholders to increase its total number of shares from 146.25 million to 785.5 million. The proposed cash call will see the firm float a rights issue and establish an employee share ownership plan (Esop) equivalent to five per cent of the issued stock [...]

Safaricom seeks to block sale of France Telecom stake over debt

Safaricom has moved to court to block sale of France Telecom’s 70 per cent shares in Telkom Kenya over unpaid Sh639 million. The firm says it will suffer irreparable loss and damages if the sale and takeover of France Telecoms’ stake in the Kenyan company is concluded before it is paid the amount. Safaricom is also seeking an interim injunction to stop Telkom Kenya from disposing of its assets, including land and telecommunication equipment [...]

BAT bribery scam forces out senior EABL executive

The bribery claims levelled against UK’s British American Tobacco (BAT) Tuesday spread its tentacles across corporate Kenya sucking in rival Mastermind Tobacco and forcing out an East African Breweries Limited (EABL) executive. BBC Panorama expose found that BAT paid government officials to, among other ends, stifle competitors. EABL was drawn into affair after it emerged that a corporate affairs executive it hired from BAT Kenya, Julie Adell-Owino, organised payment of bribes to senior Kenya official [...]