I&M Bank Lifts Ban on Online Card Deals After Client Outcry

I&M Bank has ended the suspension of its online debit and credit card transactions following strong customer protests. I&M had previously instructed its clients making online transactions to issue a prior notice asking for an opening of the card for use and to notify the lender as soon as a transaction is concluded for the bank to disable them. Following feedback from their cardholders who have expressed concern at the inconvenience that this would cause, I&M announced that they will not proceeding with this measure.

Uchumi Reveals KES 2.4bn Drain by Closed Outlets

Uchumi Supermarkets’ regional subsidiaries cost the retailer KES2.4 billion in cash injection every year but returned losses for the past five years leading to their closure this week. The retailer on Thursday, 15 October 2015 disclosed it has consistently pumped KES200 million a month into its five Ugandan branches and six Tanzania branches to meet their financial obligations. Despite this significant investment,

Uganda business posted a net loss of KES28 million in the year to June 2014 while the Tanzania arm recorded a net loss of KES150 million in the same period. Efforts to turn these businesses around had proved futile and the Board considers that it is no longer tenable to continue the support.

KenGen eyes KES1.8bn Treasury debt pay cut after rights issue

KenGen has applied to the regulator for approval of a KES28 billion rights issue in which the government is expected to participate by converting part of its KES41.2 billion loan to the company into equity. KenGen, which on reported a 307.5 percent jump in net profit to KES11.5 billion for the year ended June, is 70 percent owned by the Treasury — which is not keen on injecting cash into the firm given other pressing national government expenditure. The NSE-listed firm says the rights issue, whose details are currently under review by the regulators, will enable it to reduce its government debt burden and receive a cash injection from minority shareholders.

Centum in KES1.2bn injection into K-Rep shareholder cash call

Centum has injected KES1.2 billion into K-Rep Bank, taking its majority share in the bank’s ongoing rights issue expected to be concluded by end of the year. The Nairobi Securities Exchange (NSE) listed
investment company is majority shareholder of K-Rep Bank, having raised its stake in the lender to 67.54 percent nearly a year ago. The equity injection, which now raises K-Rep Bank’s core capital to KES3.8 billion, was sourced from the proceeds of a KES6 billion corporate bond that Centum floated in July. K-Rep Bank expects to have raised about KES1.6 billion on conclusion of the shareholders cash call.

Safaricom launches new M-Pesa feature

Safaricom has introduced a new feature on its mobile money service M-Pesa, allowing customers to confirm the name of cash transfer recipients to curb erroneous transactions. The telco expects to fully roll out the new feature dubbed Hakikisha to all M-Pesa customers by the end of this month. Safaricom said it attends to an average of 12,000 cases daily of M-Pesa customers who accidentally sent cash to unintended persons and businesses.

Kenyan Stock Market

The NSE 20 and NASI index went down 2.89 percent and 3.48 percent respectively w/w to close at 3,901.13 and 136.94

Turnover, total volumes traded and total market capitalization stood at 5,048.67mn, 150.45 and KES 1,926.06 respectively at the end of the week.

EAC Markets

Uganda: The USE ALSI declined 6.74 percent w/w to close at 1,771.97 while USE LSI went up 1.28 percent w/w to close at 363.69.

Rwanda: The RSE ALSI and the RSE RSI declined 0.17 percent and 1.05 percent w/w respectively to close at 133.83 and 172.81.

Tanzania: The DSE DSEI declined 0.25 percent w/w to close 2,403.58 while DSE TSI index went up 0.41 percent w/w to close at 4611.29.

Global markets

The S&P 500 added 0.1 percent to 2,026.69, after earlier rising as much as 0.3 percent. The gauge is on track for its third consecutive weekly gain, the longest streak since May. The Dow Jones Industrial
Average rose 15.66 points, or 0.1 percent, to 17,157.41. The Nasdaq Composite Index slipped 0.1 percent.

The MSCI Asia Pacific Index added 0.4 percent to 134.51 .The measure has climbed 0.9 percent this week, poised for a third weekly advance. Global equities resumed their October rebound, with U.S. stocks rising to an eight-week high amid strong bank earnings and mounting speculation the Federal Reserve will put off raising interest rates until 2016.

The Stoxx Europe 600 Index rose 1.5 percent to 360.99 at the close oftrading. Shares slid yesterday after Shares slid yesterday after disappointing Chinese inflation data.