Kenya Airways Gets relief as Guinea and Sierra Leone Skies Reopen

By / Published September 26, 2015 | 6:30 am

Kenya has lifted the ban on visitors from Ebola-struck West African nations Sierra Leone and Guinea, opening a flight path that closed 13 months ago for struggling national carrier Kenya Airways (KQ). Kenya closed the door on visitors from the two countries and Liberia in August last year following an acute outbreak of an Ebola epidemic, cutting deep into revenues of the airline that operated 44 scheduled flights a week to 10 West African cities.

Safaricom’s share of voice market drops as Airtel, Orange gain

Industry data released by the Communications Authority of Kenya (CA) revealed that Safaricom’s share of the voice traffic had dropped to 74.1 percent in the 12 months to end of June, down from 78.8 percent a year earlier. Airtel’s market share by voice traffic grew to 16.4 percent up from 10.7 percent, while Telkom Kenya’s market control more than doubled to 7.1 percent, up from three percent recorded at the end of the previous year.

First Assurance rating up on Barclay’s acquisition

First Assurance’s credit rating has gone up following acquisition by Barclays Africa in June. South African Global Credit Rating (GCR) assigned the insurer an A on its claims paying ability, up from Aaccorded last year. This follows the purchase of a 63.3 percent stake in the company by Barclays Africa for KES2.2 billion accompanied by capital injection of KES700 million..

HF Group set to build 1,272 housing units in Nairobi city

Property and financial solution provider HF Group (Formerly Housing Finance Company), through its subsidiary HF Development and Investment Limited (HFDI), is set to construct 1,272 housing units in Nairobi’s Komarock area. The project, christened Komarock 5C, is the second largest housing project — after Nyayo Estate, Embakasi — to be undertaken in Nairobi in the last 10 years.

East African Breweries now goes for the bottom with 300ml Tusker, Pilsner bottles

Beer maker East African Breweries Limited (EABL) will launch 300ml and 330ml bottles for its Tusker and Pilsner beer brands targeting lower-income consumers. The regional brewer is piloting the new
330ml Tusker and Pilsner 300ml in several down-market bars across the country ahead of an official launch mid-November.

Longhorn profit declines on poor regional sales

Longhorn Publishers has announced a profit dip for the year ended 30 June 2015, in what the management terms as poor performance in subsidiaries in Uganda and Tanzania. The publishing group recorded a
24.4 percent decline in after tax earnings of KES71.7 million against KES94.9 million recorded over similar period last year.

Monetary team retains policy rate at 11.5pc for the third time

The Central Bank of Kenya (CBK) on Tuesday for the third time retained the policy rate at 11.5 percent, saying this would keep inflation in check at a time of relative exchange rate stability. The Monetary Policy Committee (MPC) said overall inflation was trending towards the five percent target. The MPC said the KES655 billion (USD6.2 billion) worth of forex reserves and the KES65 billion (USD610.7 million) precautionary facility from the International Monetary Fund were adequate cushions against volatility in the value of the shilling

Kenyan Stock Market

The NSE 20 lost 0.36 percent w/w to close at 4,221.10 while NASI index rose 0.77 percent w/w to close at 148.32.

Turnover, total volumes traded and total market capitalization stood at 2,819.05mn, 69.82 and KES 2,080.18 respectively at the end of the week.

EAC Markets

Uganda: The USE ALSI rose 0.57 percent w/w to close at 1,957.03 while USE LSI lost 0.23 percent w/w to close at 352.44.

Rwanda: The RSE ALSI and the RSE RSI declined 0.21 percent and 1.23 percent w/w respectively to close at 141.06 and 187.02.

Tanzania: The DSE TSI and DSE DSEI index shed off 0.34 percent and 1.52 percent w/w respectively to close at 2,530.38 and 4,593.15.

Global markets

Dow Jones industrial average was down 1.13 percent at 16,096.4. The S&P 500 was down 0.98 percent at 1,919.81. Nasdaq composite was down 1.12 percent at 4,699.30.

European stocks slid Thursday on a mix of broad worries about global growth and the unfolding impact of cheating allegations against German auto giant Volkswagen AG that now threaten to taint BMW AG. The Stoxx Europe 600 index fell 2.1 percent to 339.63.

The MSCI Asia Pacific Index added 0.2 percent to 125.08. The regional benchmark measure has fallen 14 percent since the end of June, on course for its worst quarter in four years, as the Fed prepares to raise rates with financial markets rattled by concern slowing Chinese growth.