Kenya Power Gets KES6bn Loan From French Fund

Kenya Power has received a KES6 billion loan from French fund AFD to finance the expansion of its electricity transmission network. Unlike other similar loans from international financiers, the AFD’s is not guaranteed by the government of Kenya in what is seen as the fund’s confidence in the utility’s creditworthiness. The company plans to connect an additional 814,000 customers to the national grid by 2017, further raising its customer base from the current 4.1 million.

NBK shelves expansion plan to preserve capital

The National Bank of Kenya (NBK) has shelved regional expansion bid to avoid squeezing its prudential ratios although its management says the lender still has a KES13 billion headroom to grow its local loan book. The bank said the current headroom of 0.9 percent in terms of total capital to total risk-weighted assets was equivalent to KES13 billion in loans and advances given that many other assets on the balance sheet could be expanded without adding risk.

NIC secures KES5.6bn EIB loan for small business borrowing

NIC Bank has secured a KES5.6 billion (EUR 50 million) loan from European Investment Bank to fund its loan book expansion and lend small- and medium-sized enterprises. NIC becomes the second lender to receive cash from the European bank following disbursement of KES555 million to ABC Bank last week. The EIB funding will support the push into the fast expanding SME sector.

KenGen invests KES166bn in wind

Kenya Electricity Generating Company (KenGen) will spend KES166 billion to put up wind and geothermal power plants in the next two years. The additional generating capacity estimated to be 460 megawatts is expected to significantly reduce reliance on fuel driven generators and ease the cost of electricity.

KQ signs fresh 6-year ticketing deal with Spanish tech company

Kenya Airways has signed a new six-year partnership with Spanishbased international travel firm, Amadeus, which gives the national carrier access to a global network of travel agents. The partnership will see the loss-making Kenya Airways continue to access the channel to grow its international customer base. Amadeus subscribers will see on its portal Kenya Airways’s fares, schedules, flights availability and all other information that is also offered through the airline’s direct distribution channels

KenGen owners approve KES28bn rights issue by June next year

KenGen shareholders have approved the firm’s Sh28 billion rights issue slated for next year. The shareholders approved the rights issue unanimously at KenGen’s annual general meeting in Nairobi on 16th December 2015, and also agreed to the board’s plan to issue up to 7.8 billion shares, revoking an earlier decision to issue up to 2.2 billion ordinary shares.

Kenyan Stock Market

The NSE 20 declined 0.13 percent w/w to close at 3,989.95 while the NASI index went up 0.57 percent w/w to close at 144.55.

Turnover, total volumes traded and total market capitalization stood at KES 4,856.01 million, 152.34 million and KES 2,035.71 bn respectively at the end of the week

EAC Markets

Uganda: The USE ALSI and USE LSI gained 0.87 percent and 5.91 percent w/w respectively to close at 1,790.59 and 408.12

Rwanda: The RSE ALSI and RSE RSI was up 0.02 percent and 0.14 percent w/w respectively to close at 130.62 and 146.99

Tanzania: The DSEI and DSE TSI declined 3.69 percent and 0.90 percent w/w respectively to close at 2,300.02 and 4,508.89.

Global markets

The Standard & Poor’s 500 Index slipped 0.6 percent to 2,029.43 after falling 1.5 percent yesterday. The gauge’s decline has halted so far near its average price during the past 100 days. The Dow Jones Industrial Average sank 0.7 percent, to 17,374.18. The Nasdaq Composite Index lost 0.2 percent.

Asian stocks fell, halting a two-day rally, as a plan by the Bank of Japan to purchase exchange-traded funds left investors disappointed and a slump in oil weighed on energy shares. The MSCI Asia Pacific Index
slipped 0.7 percent to 129.61.

European shares fell as investors turned their attention back to global growth prospects, after the Federal Reserve’s interest rate move helped the Stoxx Europe 600 Index to its biggest three-day advance since August. The benchmark gauge slid 0.7 percent to 362.29 trimming its weekly gain to 1.8 percent.