Senate endorses report that calls for sacking of KQ boss

The Senate on Thursday endorsed a report calling for the sacking of Kenya Airways chief executive Mbuvi Ngunze and possible prosecution of his predecessor Titus Naikuni. This came after the Senate unanimously adopted a report by the Select Committee on Inquiry into Affairs of Kenya Airways following its record Sh25.7 billion loss in the year to March 2015 [...]

KQ director resigns amid Senate push for shake up

Kenya Airways’ commercial director has resigned, leaving the airline the space it needs to effect some of the changes the Government of Kenya has sought as a precondition to bailing out the cash-strapped carrier. Gerard Clarke, 52-year- old Irishman, whose duty was ensure the airline generates sustainable revenue, quietly resigned in October, exactly two years since he took charge of the critical management position [...]

SIB upgrades Safaricom valuation as subscribers and share earnings rise

Standard Investment Bank (SIB) has upgraded its valuation of listed telecoms giant Safaricom following its increased subscriber numbers and a jump in earnings per share (EPS) in the first half-year. The investment bankers said the EPS of 45 cents showed the full-year figure is likely to exceed its earlier forecast of 80 cents [...]

Directors of collapsed lender sue Cofek for linking them to fraud

Directors of the troubled Imperial Bank have sued the Consumer Federation of Kenya (Cofek) for linking them to a 13-year long fraud scheme allegedly run by the lender’s former managing director Abdulmalek Janmohammed. The directors want the consumers lobby compelled to pull down an article it published on its website linking them to the fraud scheme, which saw the bank lose Sh34.9 billion of customers’ deposits [...]

KPMG says Safaricom created 0.6m jobs last year

Safaricom’s operations generated more than 682,000 jobs directly and indirectly in the Kenyan economy last year, a study by consulting firm KPMG shows. M-Pesa business generated the direct and indirect jobs through the telco’s products and services such as airtime dealers, M-Pesa agents and distributors [...]

NSE-listed companies profit warnings hit 11 for second year

Profit alerts at the Nairobi bourse have hit 11 this year after Standard Chartered Bank last week warned full-year earnings for 2015 would fall making it the second year in a row for such a number of notices. Profit warnings make 2015 one of the toughest at the bourse as firms grapple with weak shilling, accounting fraud and rising competition [...]

Cables firm shareholders seen waiting longer for dividend

East African Cables shareholders may wait a little longer for dividend due to recent performance, higher debt and investment in a new plant, an investment bank has said. A dividend is, however, likely to be paid for the financial year 2017 though it may be cut by 40 cents a share from the Sh1 paid last year according to Standard Investment Bank says. Major debts of the company include Sh326 million loan received last year from TransCentury Ltd (TCL), its majority shareholder [...]

Atlas sacks 750 staff as oil sector fortunes take a big nosedive

Oil and gas services logistics firm Atlas Development has sacked nearly 750 staff members since July at a cost of Sh255 million ($2.5 million), as fortunes of the oil sector dwindled following a drop in global oil prices. The restructuring was carried out beginning the third quarter of the year after the company concluded there was little chance of change in fortunes for the Kenyan business. The company this week announced the liquidation of its Kenyan business to concentrate on its new Ethiopian business [...]

Stable currency helps to grow firms’ output

A stable shilling and falling interest rates in November helped Kenyan businesses record the highest growth in activity since August, a monthly survey by CfC Stanbic Bank shows [...]