Treasury yet to release KES1bn for Mumias bailout

Treasury yet to release KES1bn for Mumias bailout

The Treasury is yet to release the KES1 billion bailout cash for ailing sugar miller Mumias Sugar, nearly two weeks since President Uhuru Kenyatta presented a cheque to the company. Mumias Sugar Company chairman Dan Ameyo said the firm urgently requires the money to pay farmers and repair the factory. The KES1 billion bailout was part of the company’s rescue plan that the government, as an anchor shareholder with a 20 percent stake, promised to give the miller to facilitate its revival.

EABL, Tanzania subsidiary merger could be repealed

East African Breweries Ltd (EABL) could lose its Tanzania subsidiary Serengeti Breweries Ltd (SBL) after Tanzania’s Fair Competition Commission issued a notice of intention to revoke a merger between the two companies. In a notice in the Tanzania media, the Fair Competition Commission accused EABL of breaching merger agreement rules, and not ensuring improved performance at SBL

Uchumi takes additional KES500m debt from KCB

Uchumi Supermarkets said it had struck a KES500 million loan deal with KCB as it awaits the outcome of a forensic audit that will determine the company’s future. The money is expected to come through this week and will go towards paying suppliers as well as meeting other working capital needs, the management said.

KenGen to add 450MW to grid in three years

KenGen plans to add another 450 megawatts (MW) to the grid from wind and geothermal in the next three years at a cost of at least KES67 billion. Kenya, which relies heavily on renewables such as geothermal and hydro power, aims to expand installed capacity to about 6,700 MW by 2017, from about 2,500 MW now. It also aims to halve bills from around USD0.17-0.18 per kWh in three or four years.

Lamu nod boosts Centum’s 1,000MW coal power plant

The Lamu county government has endorsed the Amu coal power plant, paving the way for its construction. The move comes as a boost to Centum Investment, which won the tender to build the 1,000-megawatt plant. The Lamu coal plant project is part of the government’s efforts to produce 5,000 megawatts of electricity in a bid to lower the cost of power. The coal-fired power plant, which Centum said would generate close to half of Kenya’s electricity capacity when completed, would be funded by equity of about USD450 million, with the balance of USD1.35 billion coming from debt.

Borrowers to feel pinch as CBK raises lending rates

Borrowers face more pain after the Central Bank of Kenya (CBK) raised the base lending and policy rates in a bid to curb the depreciation of the Kenyan shilling, which hit the psychological 100 units to the dollar on Monday. CBK’s Monetary Policy Committee (MPC) raised the Kenya Banks’ Reference Rate (KBRR) to 9.87 from 8.54 per cent and the Central Bank Rate (CBR) to 11.5 from 10 per cent.

Kenyan Stock Market

The NSE 20 and NASI index declined 1.77 percent and 1.28 percent w/w to close at 4,727.46 and 159.44

Turnover, total volumes traded and total market capitalization stood 6,954.31mn, 214.77 and KES 2,232.25 respectively at the end of the week.

EAC Markets

Uganda: The USE ALSI and USE LSI rose 1.38 percent and 1.46 percent w/w respectively to close at 1,984.67 and 328.75

Rwanda: The RSE ALSI and the RSE RSI went up by 0.08 percent and 0.43 percent w/w respectively to close at 144.63 and 214.91.

Tanzania: The DSE TSI went up by 2.01 percent w/w to close at 2,694.10 while DSEI declined 0.54 percent w/w to close at 4,661.26

Global markets

The S&P 500 climbed 1.00 percent to 2,072.65. The Dow Jones Industrial Average gained 1.1 percent to 17,732.48, while the Nasdaq Composite Index advanced 1.2 percent.

European stocks climbed for a second day, poised for a weekly gain, after Greece’s proposal to meet most of its creditors’ demands stoked speculation of a deal. The Stoxx Europe 600 Index rose 1.8 percent to 387.81.

The MSCI Asia Pacific Index climbed 0.5 percent to 141.38 . Asian stocks rose, following gains in global markets, as Chinese equities rebounded for a second day and Greece submitted a bailout plan similar to that proposed by its creditors.