Mastermind wins Kenya Power deal to build substations
Advertising firm Magnate Ventures and Mastermind Tobacco, through its subsidiary NGM Ltd, have signed lucrative tenders for construction of 36 Kenya Power substations in bids, which were dominated by Asian and Gulf-based companies. According to Kenya Power, the new substations will improve quality of energy supply to manufacturers and households […]
Auditors’ body seeks backing for Sh1.6bn KCA university deal
Accountants are to go to voting at a special general meeting on March 11to decide whether or not to accept Sh1.6 billion private equity funding from Emerging Capital Partners (ECP) for the Kenya College of Accountancy (KCA) University in order to fix its cash flow problems. ICPAK will own a 25 per cent stake in the new company while ECP, through Maarifa Education will own the remaining 75 per cent stake in exchange for Sh352 million. […]
NIC Bank enters into asset leasing with new subsidiary
Listed mid-tier bank NIC has become the first bank to enter leasing business in the country underlining the growth potential in the industry. The bank has established a subsidiary, NIC Leasing Ltd Liability Partnership (LLP), to enter the asset-hiring business as lenders are not allowed by law to rent out equipment and real assets. Leasing helps the company avoid acquiring a depreciating asset, but ensures it derives value from the same asset […]
Speculative trading in bank stocks stirs NSE
Stocks may be driven by speculators during this period of earnings release where improved profits are expected accompanied by dividend announcement. Analysts indicate the sector’s price-to-earning (PE) ratios are not overpriced even though stocks of banks are hitting an all-time high currently. Increasing focus on non-funded or transaction income is expected to cover any shortfall from the negative effect of introduction of KBRR which may have affected interest income negatively
Foreign lenders increase debt to Kenya by Sh24 billion
Multilateral lenders and foreign commercial banks have increased their lending to the State by a total of Sh24 billion between June and November 2014, according to the Central Bank of Kenya. Kenya’s debt is still below the 74 per cent threshold set for it by the World Bank in its Country and Policy Institutional Assessment Index. CBK says growth was largely driven by exchange rate revaluations. Economists are cautioning that repayments may pose a challenge to the country’s efforts to cut the current account deficit […]
Coal plant to tap local lenders for Sh18.2bn
The consortium that won a tender to construct a coal-fired plant in Lamu is seeking Sh18.2 billion from local banks ahead of groundbreaking in September. Amu Power CEO Francis Njogu indicated that the project will be financed through debt which accounts for slightly over three quarters ($1.4 billion) with shareholders’ equity of $500 million. The African Development Bank (AfDB) will provide a partial risk guarantee for the coal plant, the largest in East and Central Africa […]
Umeme picks two directors on Actis exit
Cross-listed Ugandan power distributor, Umeme has filled board positions left vacant on exit of two directors last November. The cross-listed company had announced board changes to reflect new shareholding after major owner UK private equity firm Actis began gradual exit. Umeme did not confirm if the two appointments were to represent the new shareholding but Mr Kyayonka is Uganda NSSF current chairman. Mr Faling is a South African who has served on the board of troubled utility firm Eskom […]