Britam set to pump KES35bn in property investment plan
British-American Asset Managers plans to invest KES35.00 billion as it seeks to expand its property portfolio. The company has outlined a number of housing projects in partnership with Housing Finance
Corporation and other investors. The investments are aimed at enabling the company to strengthen its grip on the mortgage industry in the next two years. The housing plan will begin with 640 units on Thika Road, followed by another 240 apartments on Kamiti Road, whose ground-breaking is scheduled for next month.
Equity Bank Group has made an entry into the Democratic Republic of Congo through acquiring a controlling interest in ProCredit Bank. Equity will pay about KES6.00 billion to gain a 79.00 percent control of the seventh largest bank in the country. Equity Group chief executive James Mwangi said the DRC presented huge opportunities for the bank owing to a large population of more than 85 million people, most of whom are excluded from formal banking services.
Kenya Re acquires stakes in Ugandan state-owned underwriter and ATI
Majority State-owned Kenya Reinsurance has acquired stakes in Uganda Re and Africa Trade Insurance (ATI) as it seeks to diversify its revenue streams. The company acquired 5.00 percent of the twoyear-old Uganda Reinsurance Company at KES20 million. Uganda Re benefits from a 15.00 percent mandatory cession of all reinsurance business in Uganda. Kenya Re had sought to buy 20.00 percent of the
reinsurer but was only able to secure five percent shareholding, which the management attributed to competition to own a stake in the company.
Troubled Kenya Airways gets KES4.20 billion Treasury bailout
Kenya Airways is set to borrow KES4.20 billion from the government as it continues to battle financial troubles arising from the heavy load of debt it has been carrying in a tough operating environment. The bailout plan comes as the airline navigates strong operational headwinds that have left it with record losses in the past couple of years. The bailout should spare the airline the pain of taking in more expensive commercial loans that would put a strain on its cash flows
EABL launches herbal-flavored spirit in Kenya after Nigeria trial
Beer maker EABL has introduced a herbal-flavored ready-to-drink spirit in the market, hoping to replicate the success that the brand has enjoyed in Nigeria since its introduction about one-and-a-half years ago. The regional brewer has begun selling in targeted outlets before launching countrywide. The drink, which is retailing at between KES80 and KES100 for a 300ml glass bottle, targets lowincome consumers who EABL is keen on courting to boost its sales volumes.
Kenyan Stock Market
The NSE 20 and NSE ALSI declined by 1.91 percent and 1.69 percent w/w to close at 4,786.74 and 162.13 respectively.
Turnover, total volumes traded and total market capitalization stood at KES 2,267.71 , million, 203.24million and KES 5,998.79bn respectively at the end of the week
Uganda: The USE ALSI declined by 0.98 percent w/w to close at 1,885.45 while the USE LSI gained 0.01 percent w/w to close at 324.33 respectively
Rwanda: The RSE ALSI and the RSE RSI declined by 0.01 percent and 0.12percent w/w respectively to close at 136.06 and 223.76 .
Tanzania: The DSE TSI gained 0.15 percent w/w to close at 4,714.76 while DSEI dropped by 0.52 percent w/w to close at 2,715.23
The Standard & Poor’s 500 Index slipped 0.20 percent to 2,117.10 and is poised for its first weekly drop in four. The Dow Jones Industrial Average fell 0.2 percent to 18,082.48, and the Nasdaq Composite
Index lost 0.1 percent.
The Stoxx Europe 600 Index slipped 0.90 percent to 403.18, trimming its monthly gain to 1.8 percent.
The MSCI Asia Pacific Index added 0.20 percent to 151.54, for a 1.20 percent drop in May 2015. Asian stocks climbed, with the regional benchmark trimming its first monthly decline in 2015.