Fastjet stops Kilimanjaro flights a month after launch

Low-cost carrier Fastjet has stopped its Kilimanjaro-Nairobi flights, just a month after launch, handing Kenya Airways and its associate Precision Air competition relief on the Tanzania route. The UK budget airline launched daily flights between Dar es Salaam and Kilimanjaro and the Jomo Kenyatta International Airport (JKIA) on January 11 at rates that were relatively cheaper than its two competitors [...]

Ratings agency cautions Flame Tree on acquisitions

A rating agency has urged listed plastic goods manufacturer, Flame Tree Group to be cautious in its divesture to fast-moving consumer goods (FMCG) as its market is more competitive. Flame Tree Group has been relying on acquisitions to diversify into the FMCG market with a focus on the cosmetic sector. GCR noted the firm's ability to conclude and integrate new acquisitions would bolster the scale of its FMCG operations while also pushing it to a higher credit rating but also heightening its risk profile [...]

Paul Ndung’u tops KenGen owners roll ahead of rights issue

Businessman Paul Wanderi Ndung’u has bought 3.3 million shares of KenGen, making him the top individual shareholder of the NSE-listed power producer. He acquired the shares in the three months to December, with the value of his holdings rising to about Sh21.3 million based on KenGen’s current share price. The investment by Mr Ndung’u comes at a time when the KenGen share price has dropped significantly, partly due to investor fears of dilution in the rights issue [...]

Average personal loan rates climb to 18.3pc in Dec

Average bank lending rates have shot up by 2.2 percentage points over the past six months to 18.3 per cent, with some banks loading onto personal loans a premium of 15 per cent above the Kenya Banks Reference Rate (KBRR). The rise in average price of loans has now seen the interest margins earned by banks rise to 10.38 per cent, taking account of the average fixed-deposit rate of 7.92 per cent as at the end of December 2015 [...]

Interest rates on Treasury bonds drop as CBK rejects high bidders

Rates on government securities have continued to fall as the Central Bank rejects aggressively priced bids, with the highly liquid market also helping tame the interest rate. The interest rates on the 91-, 182- and 364-day Treasury bills fell by between 0.4 and 0.7 percentage points apiece during last week’s auctions, the fourth straight week of rate declines [...]

Jamii fires up pay TV market with low cost Internet device

Kenya’s pay television and theatre market is headed for a major shake-up with the entry of high speed Internet connectivity devices that enable the streaming of movies, premium sports content and live television shows. Jamii Telecoms has launched a television Android box- that is priced at about [...]

Islamic Corp loans Shelter Afrique Sh2.5bn

Pan-African housing lender Shelter Afrique has received a Sh2.5 billion ($25 million) loan from the Islamic Corporation for the Development of the Private Sector (ICD) for onward lending. The loan will also go towards project finance [...]

Indian firm to buy Sh1bn stake in Kikuyu based drug maker Universal Corp

Pharma Strides Shasun, which is listed in India, is set to buy a majority stake in Kikuyu-based drug manufacturer Universal Corporation Limited (UCL) for Sh1.1 billion ($11 million). Strides Shasun, listed on the Bombay Stock Exchange, announced that it will acquire a 51 per cent stake but the sales price could rise further if [...]