KQ needs Sh100bn bailout, says Standard Investment Bank analysts
National carrier Kenya Airways requires up to Sh100 billion new funding to stay afloat, Standard Investment Bank analysts have estimated. The amount is required in the form of fresh capital injection to reduce the carrier’s debt burden. KQ may also need to significantly scale down its operations and cut on operating costs to return to profitability…[…]
Parliament summons two Cabinet secretaries over KQ
Parliament on Monday summoned Treasury secretary Henry Rotich and his Transport counterpart James Macharia to appear before it and explain how they intend to rescue debt-ridden national carrier Kenya Airways. The airline, popularly known as KQ, last week announced a record Sh25.7 billion net loss in the year ended March, revealing that it is insolvent to the tune of Sh5.9 billion…[…]
Safaricom seen riding on data as voice sales slow
Safaricom data and M-Pesa businesses are projected to provide more than 40 per cent of the firm’s revenue in the next four years, pushing the share contributed by voice revenue to below 50 per cent. In a coverage note on the telco, Dyer & Blair Investment Bank said growth in use of smartphones would boost data revenue, backed by the improvement provided by the capital expenditure on network improvement over the past few years…[…]
Ex-KenGen CEO in Ethiopia power deal
A firm with Kenyan links has signed to sell geothermal power to the Ethiopian government in a transaction valued in billions of shillings. Berkley Energy, an investment firm which has an office in Nairobi, is one of the companies involved in the 1,000 megawatts (MWs) Corbetti Geothermal Project…[…]
Safaricom seeks TV station licence with eyes in Internet broadcast
Safaricom has applied for a licence to operate a commercial free-to-air television station, signalling more competition for established broadcasters. Communications Authority of Kenya director-general Francis Wangusi has given anyone with objections to Safaricom being awarded the licence 30 days to present his or her views to the regulator…[…]
Equitel eats into Airtel’s mobile customer base
Airtel Kenya lost 600,000 mobile subscribers in the three months to March while new entrant Equitel gained nearly the same number of customers, a quarterly report released on Monday by the Communications Authority of Kenya (CA) shows. The report indicates that Airtel’s subscribers declined by 7.8 per cent to seven million in a period that saw its customers, however, talked longer…[…]
CIC Insurance targets matatus with loan repayment for accident vehicles
CIC Insurance is targeting matatu saccos with an insurance package covering loan repayments for vehicles taken off the road to be repaired after accidents. The insurer will also offer a tracking facility for vehicles signed under the insurance package to monitor their movement…[…]
Housing Finance gets nod to establish holding unit
Housing Finance, an integrated property and financial solutions provider, has announced the establishment of a non-operating holding company, HF Group Limited, following approval by the Central Bank of Kenya (CBK). This new development will result in the transfer of the mortgage finance business of the company to a new subsidiary, HFC Limited…[…]