KenGen ups dividend payout as profit jumps threefold to Sh11.5bn

Kenya Electricity Generating Company (KenGen) has raised its dividend payout by 62.5 per cent after recording a threefold jump in net profit in the year ended June, powered by increased sales and a tax credit. KenGen's net profit increased to Sh11.5 billion, up from Sh2.8 billion a year earlier — marking a 307.5 per cent jump and hitting one of the highest earnings in corporate Kenya this year. This helped the utility to declare a dividend of Sh0.65 per share, up from Sh0.40. On Monday the stock closed at Sh8.30 a share, up from Friday’s close of Sh8.20 [...]

NSE drops below 4,000 psychological mark as bear run extends

The Nairobi Securities Exchange (NSE) has touched a new low with the flagship index crossing the 4,000 psychological point mark. Investors’ wealth as measured by the market capitalisation has dropped to Sh1.98 trillion from Sh2.3 trillion, wiping out over Sh300 billion in value. Rising interest rates, introduction of capital gains tax, the weakening shilling and poor financial performance of listed companies have all contributed to the bourse’s poor performance [...]

Mumias gets window to seek raise of power tariff

Mumias Sugar has a chance to submit its application for a raise in tariff for its wholesale electricity sales to Kenya Power, opening a window for the cash-strapped miller to boost earnings from its power generation business. Mumias Sugar needs to make a formal application for review of the ¢6 per kilowatt hour it currently receives. The miller has been pushing for a review of the 10-year power purchase agreement it signed on May 15, 2008 to match the prices offered by Kenya’s feed-in tariff (FiT ) policy adopted in 2008 [...]

Jamii Bora eyes Sh5bn in funds drive

Jamii Bora Bank plans to raise Sh5 billion through a mix of options, which include new shares to a strategic investor, convertible debt and a rights issue. The lender said it was looking to raise Sh3 billion by ceding shareholding to a new investor combined with a convertible debt of Sh1.5 billion.  It also plans to ask its current owners to inject an additional Sh500 million through a rights issue. The bank’s management has recommended the creation of 20 million shares, valued at Sh66 each [...]

Stima Sacco gets guarantee for trade finance

Stima Sacco has received a Sh750 million guarantee from the American aid agency (USAid) to enable it to participate in trade finance. The sacco will offer the services through a partnership with Chase Bank since as a co-operative it is not allowed to offer products like bid and performance bonds or advanced payment guarantees [...]

State’s one-year bond to attract over 20pc interest

The government could pay a steep price of above 20 per cent as interest to investors in the Sh20 billion one-year bond it has floated for budgetary support. The Central Bank of Kenya (CBK) began selling the Treasury bond Monday. The price will be determined by the market, but is expected to follow the trend of more recent issues. Analysts say that investors are expected to ask for a higher rate since final payments will be amortised and not a bullet or one-off payment [...]

Counties net 67pc of revenue target

Counties missed their Sh50 billion target in internal revenues by Sh16 billion in the 2014/15 fiscal year. Counties have been asked to collect more revenue to avoid relying too much on the national government cash transfers which have proven erratic [...]