Sugar prices expected to drop as Mumias resumes operations

Sugar prices are expected to drop as Mumias Sugar Company, which accounts for 60 percent of sugar production in Kenya, makes a comeback after two months of closure for maintenance. This is good news for the consumers but a bitter pill for other sugar millers who had increased their branding and benefitted from higher sugar prices during the time of Mumias’ closure. The move is expected to stabilize the sugar market and make it predictable. However, it is threatened by the trend of Kenyan supermarkets who are slowly shifting to in-house branding, threatening the shelf space for major brands. [...]

Kenya coffee earnings jump 17pc in 2013/14 crop year

The industry’s regulator on Thursday announced a rise of 17 per cent in Kenya's earnings from its coffee exports to $254.2 million (Sh22.9b) during the 2013/14 (Oct-Sept) crop season owing to higher prices and improved production. Kenyan Coffee farmers had benefited from subsidized fertilizer from the government during the period, helping them raise production by a quarter to 49,475 metric tons. In addition, global coffee prices had risen after a long drought hit the leading global producer Brazil, which had led to uncertainty in the market. [...]

Central Bank of Kenya sells dollars to stop shilling's slide

The Central Bank of Kenya this past Thursday sold an anonymous amount of dollars to mitigate the Kenyan shillings’ losses after the currency weakened. Commercial banks quoted the shilling at 91.00/10 to the dollar, compared with Wednesday’s close of 91.10/20. After the sale, the shilling touched 90.90/91.10 to the dollar, before giving up some of the gains.

The dollar has recently been gaining globally, meaning that more will need to be done to mitigate further losses. [...]

Treasury to fast-track 100pc foreign stake in NSE firms

The Treasury plans to fast track regulatory changes in order to open up listed companies to full foreign ownership this year, from the current 75 percent cap, a move which has been pushed for by the Capital Markets Authority (CMA). This move is expected to improve access, stability and efficiency of the capital markets in Kenya, and help accelerate the establishment of the Nairobi International Financial Centre (NIFC). This institution is expected to facilitate the openness to foreign ownership, to ease capital inflows and outflows, and ensure efficiency and stability of the operational and institutional framework of the capital markets. Moreover, removal of the ownership cap will assist the markets in moving towards achieving the status of emerging market by 2020 as rated by the Morgan Stanley Capital International (MSCI) Index. [...]

Stanchart axes stockbroking units, to cut 4,000 jobs

Kenya: Standard Chartered closed most of its global equities business and made notice of 4,000 job losses in its retail banking sector. 200 job cuts were done in its global equities sector in Asia, however, it is not clear whether this will affect its Kenyan subsidiary. This downsizing represents 5 percent of its employees, a move which is expected to create savings of $200 million (Sh. 18.2 billion) in its costs this year. On the other hand, closure of its equities business is expected to bring savings of $100 million (Sh9.1 billion) in 2016. The banks shares rose by 2.1 percent in London and 2.9 percent in Hong Kong at 0900 GMT yesterday depicting expectations that the cost savings would boost profit. [...]