Uchumi mulls over closure of underperforming branches

Uchumi mulls over closure of underperforming branches

Uchumi Supermarkets could shut down some of its underperforming branches resulting in job losses as it restructures its business. Uchumi currently has 40 branches and 4,500 employees spread across the region. Board chairman Khadija Mire said an audit to assess performance of all branches was already underway and would be complete in two weeks. The focus will be on performance, location and the management.

BAT says it will continue to buy farmers’ tobacco

British American Tobacco (BAT) Kenya says it will continue contracting farmers to grow the crop despite the industry’s gloomy outlook. The listed tobacco processor and distributor said in a statement that it will still contract farmers in the Eastern, Nyanza and Western parts of the
country, the main areas where it sources leaf.

KES 1bn released for Mumias bail-out

The government yesterday released Kes1.00 billion to the financially struggling Mumias Sugar Company and announced a revival strategy that includes undertaking a rights issue to raise between KES3.00billion and KES4.00 billion.

Helios loses top slot in Equity after stake sale to NSSF Uganda

London-based investment fund Helios EB Investors is no longer the single largest shareholder at Equity Bank after selling part of its stake to Uganda National Social Security Fund. Helios sold 2.44 percent of its ownership to the pension fund at KES4.5 billion, cutting its stake in the bank to 9.78 percent which is lower than the 12.22 percent held by Norway-based Norfund.

Lack of House quorum leaves KQ’s bailout plan in limbo

Lack of quorum in the National Assembly Wednesday June 2015 left a government plan to bail out Kenya Airways hanging in the balance as members have only today to approve the emergency loan. The
National Treasury is seeking approval to grant Kenya Airways KES4.2 billion emergency shareholder loan. The National Assembly Budget and Appropriations Committee approved the loan meant to help the
national carrier address its cash flow problems.

MPs deny NBK Sh5bn allocation for rights issue

The KES13.00 billion National Bank of Kenya (NBK) rights issue faces further delay after the Treasury’s allocation of Sh4.9 billion to the shareholders cash call was reversed by a parliamentary committee. The Budget and Appropriations Committee report tabled in Parliament shows that MPs removed the cash provision for NBK’s rights issue in the 2015/16 budget, effectively ruling out the Treasury’s support for the bank. The move has cast doubt on NBK’s ability to successfully float the cash call in the coming fiscal year unless the Treasury lobbies parliament to reinstate the amount.

Kenyan Stock Market

The NSE 20 and NASI index rose 0.66 percent and 0.07 percent w/w to close at 4,810.36 and 162.51

Turnover, total volumes traded and total market capitalization stood 5,102.94mn, 159.64 and KES 2,273.10 respectively at the end of the week.

EAC Markets

Uganda: The USE ALSI edged up by 2.24 percent w/w to close at 1,984.11 while USE LSI dropped 0.91 percent w/w to close 327.989.

Rwanda: The RSE ALSI and the RSE RSI declined by 0.12 percent and 0.60 percent w/w respectively to close at 135.65 and 220.34.

Tanzania: The DSE TSI and DSEI declined 1.58 percent and 2.08 percent w/w to close at 4,708.68 and 2,805.12 respectively

Global markets

The Standard & Poor’s 500 Index lost 0.7 percent to 2,108.58. The Dow Jones Industrial Average sank 1 percent to 17,966.07. The Nasdaq Composite Index slipped 0.7 percent from an all-time high.

European stocks were little changed as Greece was said to have rejected an offer to extend its bailout program. The Stoxx Europe 600 Index rose less than 0.1 percent to 396.50.

The MSCI Asia Pacific Index lost 0.3 percent to 149.35. Shares retreated after Greece and its creditors on exchanged duelling proposals but failed to reach a breakthrough.