Kenyan Banks Plan for First Bond to Fund Green Investments

Market activity opened the week on a lower note as all the indices were on a downtrend. The NSE 20 Share index dropped 18.58 points to end the day at 3463.59 points while the NASI lost marginally to level at 143.44 points.

The NSE 25 Share index decreased by 9.70 points to end the day at 3934.26 points. Market capitalization fell to KES 2065.974 billion from KES 2073.67 previously, whilst equity turnover diminished to KES 0.43 billion owing to a 19.39% drop in the number of shares traded.

Kenya’s commercial banks are planning to issue a green bond in the next six to eight months to raise money to fight climate change. In a joint statement, the Kenya Bankers Association (KBA) and the Nairobi Securities Exchange (NSE) said the country’s first bank-supported climate change-aligned corporate debt instruments will pave the way for Kenya to join its peers in the continent who have already tapped the growing investor demand for green investments.

The collaboration between the KBA and the NSE is in line with the Exchange’s commitment to develop sustainable capital markets through the United Nations-led Sustainable Stock Exchanges (SSE) Initiative.

CURRENCIES:

The Kenya shilling traded steadily on Monday as it exchanged at a mean of KES 101.38 compared to an average of KES 101.39 on Friday due to subdued dollar demand as some market players stayed on the sidelines anticipating better rates.

The shilling gained albeit slightly against the Sterling and the Euro to close the day at a mean of KES 132.23 and KES 112.17 respectively as uncertainty over the future of Britain’s economy after the Brexit vote and its impact on the global economy as a result, persist.