KCB signs deal with Tuskys for advance pay of suppliers’ bills

Kenya Commercial Bank has signed a financing facility with retailer Tuskys Supermarkets that will see suppliers get payment before their invoices fall due. KCB is the second bank to enter into such a partnership with the retail chain, which also signed a similar deal with Diamond Trust Bank (DTB) in early December. The financing partnership will also enable small and medium sized companies (SMEs) that supply the retailer get loans from both banks at preferential rates [...]

Employees face bonus drought as NSE firms issue profit warnings

Kenya’s formal sector workers are headed for a tough year following a steep drop in corporate earnings last year that is expected to significantly reduce or wipe out bonus payments altogether. A record 17 publicly traded companies issued profit warnings last year, alerting investors of reduced earnings and even losses, leaving little room for dividend and bonus payments [...]

Kenya pay-TV firms set to feel the heat of Netflix launch

Kenya’s pay-TV market is set feel the competitive heat of US-based streaming service Netflix, an on-demand service that transmits shows via Internet-enabled devices. Netflix, whose high uptake in the US has hit audience ratings and slashed advertising revenues for cable and satellite channels, already has about 74 million subscribers. Wananchi Group and MultiChoice will be wary of the US company [...]

Uchumi calls on Kampala suppliers to lodge claims

Kenyan retailer has given creditors 15 days to make claims ahead of its bankruptcy filings at the Uganda High Court. Uchumi owes suppliers, landlords and employees USh8.8 billion or Sh265 million. The listed retailer decided to exit Uganda and Tanzania after the management failed to turn around the subsidiaries despite efforts that included selling assets and injecting cash to boost working capital [...]

Businesses see shilling staying stable in the first half

Concern over the shilling’s exchange rate to the dollar has eased among Kenya’s businesses, which expect the currency to remain fairly stable in the first half of 2016. The stable rate (which reduces import cost fluctuations) will be a relief to businesses, which have also been strained in the past few months by higher financing costs and reduced availability of credit [...]

Dry Associates targets the deep-pocketed with Sh1 million unit trusts

Dry Associates Ltd (DAL) is set to open a unit trust scheme targeting the deep-pocketed with a minimum investment of Sh1 million. Those opting for the dollar money market fund will be required to put an opening $10,000 (about Sh1 million), with the option to top up the investments in multiples of $1,000 (Sh100,000). DAL estimates it will give a return of 15 per cent to investors [...]

Strong dollar lifts value of exported coffee

The value of Kenya coffee exports rose marginally between July and October compared to the same period last year even as the volume of the commodity dropped by three per cent. Exports grew to Sh2.2 billion in the period under review from Sh2 billion in the corresponding period in 2014. Kenya exports more than 90 per cent of the locally produced coffee, mainly used by roasters in blending [...]

Low Sh16bn bond uptake signals appetite for higher rates

The undersubscribed infrastructure bond issued in December has pointed to a new round of high interest rate demands by investors on primary government debt issues.  The Treasury offered a rate of 14.75 per cent for the Sh16 billion tap (reopened) sale of the infrastructure bond but only managed to raise Sh7.23 billion of the target amount [...]