Insurance Companies in Partnership with Government to Provide Cover against Poor Maize Yields

Equities

Wednesday’s trading was marked by improvements on the market indicators and in the value of transactions. The NSE-20 Share Index was on the gaining front, appreciating by 0.25% to close at 3951.42 points whilst the NSE-25 Share Index followed suit, increasing by 0.35% to close at 4204.03 points. Nairobi All Share Index (NASI) was similarly up; 0.12% to close at 144.93 points. Market capitalization expanded by 0.12% to close at KES 2.041 trillion from KES 2.039 trillion. Equity turnover went up by 13.63% to KES 0.915Bn. Market breadth improved slightly, with the number of stocks that advanced-20, outweighing the number of stocks that declined-18.

Insurance companies have announced a partnership with Kenya government to launch a small holder’s cover providing protection against poor maize yields. The government promised to provide a 50% subsidy on insurance premiums for a five acre piece of land per farmer. The companies set to offer the Area Yield Index Insurance are Jubilee Insurance, Amaco, CIC, Heritage, APA, Kenya Orient and UAP; which will compensate farmers against farm losses blamed on adverse climatic conditions, diseases and damage by pests includes.

Based on the AKI report 2014, agriculture insurance is classified under miscellaneous and accounted for 21.5% of the gross premium. Under the agriculture insurance, crop insurance accounted for 84.1% of the gross premiums. Agriculture insurance is still in the early stages of development will be key in increasing insurance penetration as the sector currently contributes upto 28% of Kenya’s economy.

Equity Market Highlights

East African Breweries Ltd (NSE: EABL) was the most actively traded stock today accounting for 43.38% of the total market value traded activity. KCB Group Ltd (NSE: KCB) also registered high levels of activity, accountingfor 19.98% of the total market turnover. CFC Stanbic of Kenya Ltd (NSE: CFC) crowned the gainers list, appreciating by 4.17% to close at KES 87.50.

Sameer Africa Ltd (NSE: FIRE) posted a 4.05% gain to close the day at KES 3.85. Longhorn Publishers Ltd (NSE: LKL) emerged as the top loser of the day, plummeting by 8.18% to close at KES 5.05. Uchumi Supermarket Ltd (NSE: UCHM) lagged behind, dipping by 6.31% to close at KES 5.20.