IMF Signs Off Sh8bn to Help Stabilise Kenyan Shilling

The International Monetary Fund (IMF) has signed off the KES65 billion (USD610.7 million) cautionary lending facility it offered Kenya early this year – handing the Central Bank of Kenya fresh fire-power in its battle to save the Kenyan shilling. The IMF board made the decision during its executive board meeting held on Wednesday, making available an extra kes8.06 billion (USD76.3 million) besides the KES56.4 billion (USD534.4 million) that was signed off in January, but is not yet drawn.

Uchumi clears KES500 million debt to suppliers

Retail chain Uchumi Supermarkets says it has so far cleared KES500 million debts owed to its suppliers as part of its turnaround plan that involves restocking its shelves. The retailer has in recent months
suffered low supply of commodities in most of its branches after traders stopped deliveries due to unpaid debts. The sour relations with suppliers had seen customer traffic to its branches fall sharply,
ceding market share to its main rivals. Uchumi entered into arranged payments with suppliers to reduce the backlog of debts and ensure there is adequate supplies in our outlets.

Safaricom eyes Lapsset billions with fibre optic lease

Safaricom has leased Kenya Electricity Transmission Company (Ketraco’s) fiber optic cables linking the North and South Coast regions in a move targeting businesses that are expected to emerge from the new Sh1.5 trillion Lamu transport corridor. The Telco giant said it is eyeing wholesale Internet provision to businesses that will be created by opening of the Lamu Port South Sudan Ethiopia Transport (Lapsset) project Safaricom is expected to pay Ketraco about KES150 million (usd1.5 million) to lease its fibre optic cable connecting Rabai-Galu and Rabai-Malindi-Garsen-Lamu for five years Safaricom is expected to pay Ketraco about KES150 million (usd1.5 million) to lease its fibre optic cable connecting Rabai-Galu and Rabai-Malindi-Garsen-Lamu for five years.

Kenya Power to export 30MW to Rwanda in next three months

Kenya Power is set to start exporting 30 megawatts of electricity to Rwanda in the next three months. Chief executive Ben Chumo said the company has entered into a power purchase agreement with Rwanda to export electricity through Uganda. This programme would earn Kenya Power millions in revenue. Kenya Power had lined up 252 projects worth KES86 billion in a bid to improve quality of electricity supply in the country.

Equitel loans jump to KES4bn in three months

Loans borrowed from Equitel mobile money have hit KES4 billion since its launch, underlining the vast potential of mobile banking in the country. Equity Bank CEO James Mwangi said an average of KES5,000
is borrowed daily, with most borrowers using the ATM non–card option to access the loans. Equitel has so far issued 1.2 million SIM cards, with transactions hitting KES7 billion by August.

Kenyan Stock Market

The NSE 20 and NASI index soared 0.62 percent and 0.50 percent w/w to close at 4,236.26 and 147.19.

Turnover, total volumes traded and total market capitalization stood at 2,483.89mn, 89.14 and KES 2,065.75 respectively at the end of the week

EAC Markets

Uganda: The USE ALSI and USE LSI gained 0.22 percent and 0.27 percent w/w respectively to close at 1,945.92 and 353.25.

Rwanda: The RSE ALSI and the RSE RSI declined 0.01 percent and 0.05 percent w/w respectively to close at 141.35 and 189.34.

Tanzania: The DSE TSI and DSE DSEI index went up 0.77 percent and 1.78 percent w/w respectively to close at 4,608.83 and 4,644.61

Global markets

The Standard & Poor’s 500 Index rose 0.2 percent to 1,998.41. The benchmark index gained 2.2 percent over the previous two days. The Dow Jones Industrial Average added 0.1 percent, to 16,760.53.

The Stoxx 600 slid 2.1 percent to 353.58 and is heading for a 0.6 percent weekly retreat. The U.S. central bank showed itself reluctant to call time on an era of record monetary stimulus amid market turmoil, rising international risks and slow inflation at home.

The MSCI Asia Pacific Index increased 0.8 percent to 129.48, advancing for a second day. While investors remain confident the U.S. central bank will raise borrowing costs this year, traders are pricing in a 32 percent chance of action on Thursday.