Uchumi reveals Sh2.4bn drain by closed outlets

Uchumi Supermarkets’ regional subsidiaries cost the retailer Sh2.4 billion in cash injection every year but returned losses for the past five years leading to their closure this week. Uchumi says it has consistently pumped Sh200 million a month into its five Ugandan branches and six Tanzania branches “to help them meet their financial obligations.” The retailer says the two countries constitute 4.75 per cent of its entire business but account for a quarter of its operating costs, ratios which did not justify the high cash injection which was “straining its liquidity” [...]

NSE index falls to four-year low as bank stocks make gains after scare

The Nairobi Securities Exchange’s (NSE) main index fell to a new four-year low of 3868 points, even as stock prices of several banks that had earlier fallen recovered slightly. The NSE 20 Share Index is now down 24.3 per cent year to date, with the factors behind its fall ranging from poor corporate results and profit warnings to shifting of funds to the primary fixed-income market which is currently benefiting from high interest rates [...]

Safaricom launches new M-Pesa feature

Safaricom has introduced a new feature on its mobile money service M-Pesa, allowing customers to confirm the name of cash transfer recipients to curb erroneous transactions. The new feature dubbed Hakikisha allows customers to confirm the name of cash transfer recipients to curb erroneous transactions [...]

I&M lifts ban on online card deals after client outcry

I&M Bank has ended the suspension of its online debit and credit card transactions following strong customer protests. I&M Bank said on Thursday that debit and credit cards would remain open for online transactions. The lender had previously instructed its clients making online transactions to issue a prior notice asking for an opening of the card for use and to notify the lender as soon as a transaction is concluded for the bank to disable them [...]

US drugs firm Serenus opens office in Nairobi for Africa expansion

Serenus Biotherapeutics, a US company that distributes drugs and medical devices in Africa, has opened its regional office in Nairobi. Serenus Biotherapeutics's Nairobi office will be the base for rolling out its products in eastern and central Africa. The company said it was targeting the growing market for drugs that treat lifestyle diseases [...]

PE firm Phatisa to build 300 houses in Kigali

Private equity (PE) firm Phatisa, which has been developing housing in Nairobi and Nakuru counties, has now moved to the Rwandan market. Phatisa, through the Pan African Housing Fund (PAHF), is partnering with Kigali Batsinda Estate to develop 300 units in the country’s capital. The development, dubbed Izuba City, will have a mix of studio, one-bedroom apartments and three-bedroom units [...]

WB sees fresh round of shilling volatility on Fed rate increase

The World Bank has warned of an impending second round of shilling volatility owing to the country’s vulnerability to a raise in interest rates in the United States. The World Bank says the latest volatility of the shilling exposed its vulnerability to America’s plan to stop offering cheap money to businesses. The Federal Reserve was expected to raise the American benchmark rate for the first time in close to a decade last month but [...]