CAK warns Safaricom on M-Pesa fees
The Competition Authority of Kenya (CAK) has ordered telecoms operator Safaricom to make public its Lipa na M-Pesa charges for businesses that levy a commission on the value of payments made through the system. The competition watchdog’s directive comes after it emerged that some petroleum stations are charging consumers half the one percent commission they pay Safaricom for every transaction, citing low profit margins in the tightly regulated market.
Barclays profit hits KES4.6bn on return of ATM charges
Barclays Bank of Kenya’s re-introduction of ATM fees late last year boosted its non-interest income, helping to increase the lender’s after-tax profit for the half-year to June by eight percent to KES4.6 billion. Nearly a third of this growth came from ATM fees which Barclays reinstated in November, four years after scrapping them to attract customers. The bank revealed that it was revamping its ATM network, indicating that it would install 100 “intelligent” machines in the next year at a cost of more than KES300 million.
ARM debt to Nigerian financier hits KES5.3bn on weak shilling
Cement maker ARM’s debt to Lagos-based Africa Finance Corporation (AFC) has soared to KES5.3 billion (USD52.9 million) or 5.8 percent more than the original amount of USD50 million (KES5 billion) the company borrowed in 2012. The rise is mainly due to a weakening of the shilling and the Kenyan firm’s deferment of interest payments on the loan. Besides raising ARM’s debt burden, the increase in the convertible loan means AFC could potentially take a bigger stake in the cement manufacturer if it opts to go for shares instead of being repaid in cash.
Kenya Power in 70MW energy deal with Obama initiative-funded firm
Kenya Power has signed a 70-megawatt power purchase agreement (PPA) with a company that is partly funded by US President Barack Obama’s Power Africa initiative, boosting the country’s goal of adding 5,000MW to the installed capacity in the next two years. Under a 25-year PPA, Kenya Power will buy electricity from Akiira Geothermal Ltd at KES9.3 per unit (9.23 US cents), which is about half the current cost of thermal power.
Kenya Re profit 20pc up as it eyes oil
Kenya Reinsurance Corporation (Kenya Re) yesterday announced a 20 percent growth in half-year net profit on the back of rising premiums which it seeks to further increase through the lucrative oil and gas sector. The listed reinsurer reported a KES1.5 billion after-tax profit, up from KES1.24 billion in a similar period last year. Its gross written premiums grew by 26.5 percent to KES6.2 billion driven
mainly by contribution from overseas markets which produced more than half its underwriting business.
Uchumi set to kick out sub-tenants in new business plan
Loss-making retailer Uchumi Supermarkets has asked operators of specialty shops within its outlets to vacate by mid next month, putting at risk more than 100 medium-sized businesses which rely on the traffic associated with its brand to make sales. In letters dispatched to all sub-tenants last week, Uchumi said the notice to vacate had been prompted by a change in its business strategy whose details it did not disclose.
Kenyan Stock Market
The NSE 20 and NASI index rose 1.84 percent and 1.09 percent w/w to close at 4,496.23 and 152.09.
Turnover, total volumes traded and total market capitalization stood at 2,996.10mn, 112.81 and KES 2,129.70 respectively at the end of the week.
EAC Markets
Uganda: The USE ALSI gained 1.91 percent w/w to close at 1,948.48 while USE LSI lost 2.06 percent w/w to close at 352.34
Rwanda: The RSE ALSI and the RSE RSI declined 0.60 percent and 3.43 percent w/w respectively to close at 142.34 and 197.35.
Tanzania: The DSE TSI and DSE DSEI index rose 1.71 percent and 1.43 percent w/w respectively to close at 2,601.97 and 4,611.56
Global markets
The S&P 500 increased less than 0.2 percent to 2,087. The index is poised for a 0.4 percent advance for the week. The Dow Jones Industrial Average added 46.74 points, or 0.3 percent, to 17,454.99. The Nasdaq Composite Index was little changed.
European stocks stalled after posting moves of 1 percent or more in the past three days. The Stoxx Europe 600 Index added less than 0.1 percent to 386.72.
Asian stocks fell, with the regional benchmark index headed for the worst weekly decline in a month, as a retreat in energy shares overshadowed China’s first rise in the yuan reference rate since Tuesday’s devaluation. The MSCI Asia Pacific Index slid 0.1 percent to 138.22, erasing gains of as much as 0.2 percent.