Co-op Bank spent Sh1.2bn to send home 160 employees last year

Co-op Bank disclosed to analysts and investors that it now stands to save Sh500 million annually from this year onwards in staff costs after following the layoffs of 160 of its employees in December which cost Sh1.2 billion. The firm’s managing director, Gideon Muriuki, indicated that the cost was booked last year and that the current financial year performance is expected to rebound by at least Sh1.7 billion. This disclosures which was made over a week ago has seen the bank’s counter at the Nairobi Securities Exchange attract heavy demand that observers attributed to improved information flow [...]

EABL tipped a good bet among African beer-makers

The African beer market report by Citi has ranked East African Breweries Ltd as the best bet on the continent in a list of large breweries that includes Nigerian Breweries, Guinness Nigeria and Delta Corp of Zimbabwe. This high rating was based on expected growth in sales over the next two years as the company starts to recover from the effects of adverse tax policy that has reduced consumption of its cash-rich Senator Keg brand [...]

Insurance firms rally as Jubilee, Kenya Re top

Insurance counters have started on a positive note this week with Kenya Re and Jubilee Holdings leading in the list.  Kenya Re was up 5.1 per cent on Monday to close at Sh18.55, coming in the wake of reports of new regulations requiring insurers to cede 20 per cent of their re-insurance business to the company, up from the current 18 per cent until 2020. Only Britam among the listed insurers shed value on Monday, closing 0.9 per cent down at Sh29 as investors booked profits following last week’s gain of 5.4 per cent [...]

How tendering flaws led to Mumias Sugar rip-off

Blatant procurement irregularities in Mumias Sugar Company have largely contributed to its near collapse. These shocking details were revealed in a forensic audit sanctioned by the company's board and undertaken by audit firm KPMG revealing how the miller's management manipulated and intervened in numerous tendering process for their own benefit For instance, pre-qualifications of suppliers was never done leading to huge loop holes in procurement  [...]

Kenya risks losing out on cheaper oil

According to a report by financial consultancy firm Deloitte, Kenya will not able to fully capitalize on falling oil prices since it has not invested enough in infrastructure such as storage. Motorists in Kenya and other East African countries would have paid less for longer if there were enough facilities for marketers to buy and stock up on the commodity at the current low prices. This explains why oil prices drift down slowly when global oil prices are on a decline. Oil is at $58 (Sh5,301) per barrel, which is a four-year low and a significant drop from the $110 (Sh10,054) level of June 2014 [...]

Kenyans stare at higher food prices as drought persists

Prices for basic commodities such as vegetables, fruits and even milk may increase due to drought that has hit most parts of the country. This comes after a report by the Kenya Meteorological Department indicated that the dry spell will continue towards the end of this month. Households may have to dig deeper into their pockets to meet the rising food costs. Statistics by the Kenya Bureaus of Statistics indicate that inflation reduced 5.53 per cent in January, from 6.02 per cent in the previous month, as transport cost eased due to a fall in oil prices [...]