- Kenya - 30 YEAR Treasury Bond
- Issue No:SDB1/2011/30(Tap 5)
- Price: 88.393
- Coupon Rate: 12%
- Shoprite to lay off 115 as it shuts Mombasa branch
- August 4, 2020
Africa’s biggest supermarket chain Shoprite Holdings is set to lay off 115 workers as it shuts its Nyali Branch this month, signalling inability to crack the Kenyan market. This is just three months after it closed its Waterfront branch in Karen putting 104 individuals out of work. The South African owned retailer has already notified the Kenya Union of Commercial Food and Allied Workers (KUCFAW) and invited them for a consultative meeting on Wednesday with their terminations set at the end of this month. “Endeavors to continue trading at the Nyali branch is no longer viable,” the notice to the union signed by Human Resources manager Carolyne Walubengo. There are currently 115 people employed at the Nyali branch of which 92 are members of KUCFAW. “It should be noted that the branch will cease trading operations on a sooner date but this will not prejudice employees as they will continue to continue the services at said branch until the termination date,” added Walubengo. The retail chain, which has a presence in 15 African countries, opened its first store in Kenya in 2018, aiming to take advantage of the gaps in Kenya’s retail sector after the collapse of top supermarkets including Uchumi and Nakumatt.
But now indications are that it may exit Kenya. The coronavirus pandemic, among other factors, have worsened retailers’ woes and heavily reduced footfall.
Foreign retailers such as Shoprite have been complaining that landlords are demanding dollar-based rents. Covid 19 Time Series
- Magoola replaces Mathu Kiunjuri as BAT Uganda managing director
- August 4, 2020
Kirunda Magoola Kirunda Magoola is the new managing director and executive board director of British American Tobacco (BAT) Uganda Limited.
He took over on August 1, replacing Mathu Kiunjuri who resigned from the position effective July 31.
An official statement shows Kiunjuri has been redeployed to a new senior role within the company. Kiunjuri was appointed to the Board as Managing Director on 14 October 2017.
Prior to joining BAT Uganda, he held various senior management positions in the company’s units in Kenya, Uganda, Tanzania, Ethiopia and South Africa.
“Under his stewardship, the Company registered significant growth evidenced in its strong performance, thereby delivering sustained value for its shareholders,” reads the statement.
His replacement, Kirunda Magoola, was until recently manager of Corporate and Regulatory Affairs Manager at BAT Uganda.
He is an experienced marketing and communications professional with over 15 years’ experience within the consumer goods and utilities industries.
The statement says Magoola is skilled in business planning & management, risk management as well as regulatory and policy management.
He holds a Master of Science degree in Accounting and Finance from Makerere University Business School and a Bachelor of Commerce degree from Bhopal University, India.
- Nationalisation: There’s more to KQ than its aircraft
- August 4, 2020
Passengers arrive at Jomo Kenyatta International Airport in Nairobi following the resumption of International flights at the airport yesterday The proposed nationalisation of Kenya Airways, better known as KQ, is an economic hot potato. Beyond the term nationalisation – which echoes communism – there are other issues that need soberness and return to reason. KQ is not about planes, it’s about real people, jobs, national pride and a reaction to geo-health issues arising from Covid-19 and hyper competition. Let’s start from the ground before we fly. Many Kenyans can’t understand how KQ can’t be making money. If a ticket from Nairobi to Mombasa goes for Sh15,000 and a bus Sh4,000, how can the airline not make money? Costs are high and the industry is highly regulated. Safety standards must be maintained from the ground to the sky where there are no ‘pit stops’. A margin of five per cent is a call for celebration. Any economist would easily oppose the nationalisation and argue that the invisible hand of the market should be left to work. The visible hand of the Government has not been that good, if we go by Uchumi and Kenya Meat Commission, to name a few. It is this history that is leaving our heads spinning. To be fair, other governments have intervened in the market to rescue private businesses in the past. Chrysler, General Motors and other well-known firms got US government money; they are still running. The decisions to rescue them were hinged on patriotism and national interests. But the best reason would be the systemic risk to the economy. Industries depend on each other and a break in the chain would have a ripple effect throughout the economy. Think of all KQ stakeholders and how they would be affected the airline was allowed to fail. Airport workers, travel websites, aircraft manufacturers and other related industries. Our national image would be dented, affecting the market for our goods and services. Think of offices KQ has in other countries, our exports, humanitarian flights and alliances with other airlines. It may send an impression that we are not a serious nation. In turning KQ around, we are using wrong benchmarks such as Ethiopian Airlines, which has always been in government hands. The socio-political system in Ethiopia is way different from Kenya or Rwanda. How did Ethiopian continue flying during Covid-19? We are assuming, I guess wrongly, […]
- BAT registers 9.9 billion profit in half year results released
- August 4, 2020
BAT Uganda has announced its half-year results for the six months ending 30th June 2020; posting gross revenue of Ushs 76 billion, profit before tax of Ushs 9.9 billion and contributions to Government revenue of Ushs 42.9 billion.
“I am pleased to report that BAT Uganda’s business continues to show resilience despite the difficult operating environment in the country.
“For the first half of 2020, gross revenue reduced by 12% to Ushs 76 billion, mainly due to the impact of the COVID-19 pandemic on the consumer purse.
“With rising unemployment and a significant increase in the cost of various basic consumer goods, the pandemic has left many consumers more cash-stretched than ever.
“ Additionally, the closure of retail outlets led to constrained consumer access to our products. Despite these challenges, our Business
continues to be resilient, posting a 2% increase in profit before tax to Ushs 9.9 billion due to prudent cost management measures undertaken to mitigate the decline in revenue,” said BAT Uganda Managing Director, Mathu Kiunjuri.
“As we navigate the particularly challenging business environment occasioned by the COVID19 pandemic, the menace of illicit trade is entrenching itself now more than ever, on the back of heightened consumer affordability challenges.
“This is partly evidenced by the reduction of our contribution to Government taxes in the form of Excise Duty, Value Added Tax (VAT) and Corporation Tax by Ushs 7.3 billion to Ushs 42.9 billion,” added Kiunjuri.
“We are concerned that, despite the enhanced border controls put in place to mitigate the spread of COVID-19, our trade teams continue to report an increased presence of illegal tax-evaded cigarettes in the Ugandan market, primarily tax-evaded cigarettes from Kenya.
“ This is consistent with third party research conducted at the end of last year, which indicates that about 44% of illicit cigarettes sold in Uganda have been smuggled across the Kenyan border.
“Evidently, border enforcement alone is not sufficient to curtail the illicit trade in cigarettes, which continues to deny the Government in excess of Ushs 30 billion every year.“Whilst we recognize the opportunity presented by URA’s Digital Tracking Solution (DTS), immediate action is required to redouble enforcement of anti-illicit trade regulations.“This enhanced action includes cooperation between Uganda and Kenya officials in stemming the flow of illicit cigarettes into Uganda, which requires identification of the source of these illegal products and their supply routes. We also reiterate our call to the Government to ratify the World Health Organisation (WHO’s) Protocol to […]
- Stanbic Bank Named Kenya’s Best Investment Bank
- August 4, 2020
NAIROBI, Kenya, Juk 29 – Stanbic Bank Kenya has been recognized as Kenya’s Best Investment Bank by EuroMoney Awards for Excellence 2020, making it their second win with the Global Institution.
This award is recognition to Stanbic Bank’s ability to deliver solutions across a range of products and services to its customers and further demonstrates a breadth of capabilities in terms of client-driven business across debt, equity, Mergers & Acquisitions, corporate advisory, and areas such as foreign exchange and cash management.
Stanbic Bank Head of Corporate and Investment Banking Anton Marais said, “This recognition speaks volumes of our track record and is a pleasing achievement in Kenya’s highly competitive investment banking environment where we are up against both local and international competitors.”
The award further reaffirms the bank’s leading position in structuring relevant and innovative financial deals for its Corporate & Investment banking customers. It also demonstrates Stanbic’s unparalleled investment banking capabilities and expertise in financial advisory across the country and the pan-Africa region which has awarded them the International EMEA Award for 12 years consecutively.
Jonathan Muga, Head of Investment Banking Kenya added that, “We understand the intricacies of the Kenyan market and have the experience, skill and relationships to assist our clients negotiate the often challenging and complex financial and regulatory environments in Kenya and beyond. Delivering solutions for our clients that allow them to accelerate and grow their portfolio is our focus and this accolade is evidence that we are on the right track and are making an impact for our clients and the nation at large.”
For over a decade, Stanbic Bank Kenya has been ahead of the pack, leading investment banking for years and enabling key projects to materialize and help drive not only Kenya but the region at large. The bank has also maintained an efficient use of capital and strong collaboration between divisions. Highlighting this, Stanbic Bank’s investment in Sustainable Financing gained recognition when they received the most innovative and ground-breaking deal in 2019 for their involvement in closing Kenya’s first-ever Green Bond by Acorn Project (Two) Limited Liability Partnership, a Sh4.261bn 5-year fixed-rate green project bond.
This was the first Green Bond to be issued in East Africa and the first corporate issuance to be listed on both the Nairobi Securities Exchange (“NSE”) and the London Stock Exchange (“LSE”). It was also the first senior secured bond in Kenya and the first corporate bond to be […]
- Equity recognised among the best banks globally
- August 4, 2020
Equity Bank is among the top 1,000 best banks globally listed by the Financial Times Banker Magazine.
The lender was ranked at position 754 out of 1,000 global banks, jumping 90 spots from last year’s position 844.
Equity was also ranked position 62 on Capital Assets Ratio and Financial Soundness, which is an improvement of 13 spots, from last year.
The lender also ranked at position 20 overall on Return on Assets, and position 55 on Profit on Capital.
According to the publication, return on assets was at 3.35 per cent; profit on capital was at 23 per cent and capital assets ratio was 14.56 per cent.
Continentally, Equity was placed at position 22 of the best banks in Africa.
Despite the growth and development of its financial sector, Africa remains a minor player in global banking terms.
In 2019, the continent’s banking industry accounted for less than 1 per cent of global Tier 1 capital making it the smallest regional player, behind Latin America with just over 2 per cent.
Nonetheless, the performance in capital terms of the top five African countries – South Africa, Egypt, Morocco, Nigeria, and Kenya was noted as being impressive.
“We are humbled that despite being a regional bank operating in Africa, we have made it among the top 754 banks in the world,” said James Mwangi, Managing Director and CEO Equity Group.
Equity’s steady improvement in the global rankings is a result of a deliberate strategy to improve operational efficiencies, backed by an elaborate digitisation strategy.In the first quarter of 2020, Equity’s profit before provisions was up by 10 per cent to Sh10billion from Sh9.1 billion the previous year.The Group, however increased its loan loss provision tenfold to Sh3billion up from Sh300 million the previous year leading to a 14 per cent decline in net profit by 14 per cent from Sh6.2 billion to Sh5.3 billion for the same period last year.
- IFC Announces Sh5.4bn Loan to Equity Bank to Support SMEs During COVID-19
- August 4, 2020
NAIROBI, Kenya, Jul 23 – IFC, a member of the World Bank Group, has announced a $50 million – Sh5.4 billion – loan to Equity Bank Kenya to help it increase working capital and trade-related lending to its small and medium-sized enterprise (SME) clients, especially those facing COVID-19 related challenges.
The loan, which will ultimately support hundreds of Kenyan businesses in the manufacturing, health, trade, transport, and consumer goods sectors, is part of IFC’s global $8 billion fast-track COVID-19 facility, announced in March and designed to help businesses maintain operations and jobs during—and after— the COVID-19 crisis.
Dr. James Mwangi, Equity Group CEO, said, “IFC’s loan, part of our business continuity management plan, will help Equity Bank extend much-needed support to our clients, particularly to SMEs in sectors hit hard by COVID-19. We have purposed to support and walk with them so that they can survive during this crisis, recover, and thrive after it.”
“I call on customers looking to seize emerging opportunities in the health and medical sector to manufacture personal protective equipment (PPE) or support the logistics of the entire
ecosystems and value chain to take advantage of the $50 million facility,” he added.
Manuel Moses, IFC Country Manager for Kenya, said, “IFC’s longstanding partnership with Equity Bank underscores our commitment to Kenya’s financial sector and wider economy, especially during these difficult economic times. Keeping businesses solvent and protecting jobs are essential parts of IFC’s response to the unprecedented challenges of COVID-19.”
The COVID-19 pandemic has disrupted trade and value chains in Kenya, across Africa, and around the world, affecting commodity prices, reducing foreign financing flows, and collapsing tourism revenues.
Smaller businesses are the lifeblood of Kenya’s economy, accounting for about 81 percent of employment.
IFC’s portfolio in Kenya stood at $884 million as of June 30, 2020, with investments supporting growth and jobs in the financial, manufacturing, agribusiness, services, infrastructure, and other sectors.
- Kenya Airways, RwandAir Return to the skies
- August 4, 2020
[ Airlines ]
After 129 days of government restrictions on international flights, Kenya Airways will return to the skies in the face of the COVID-19 pandemic that has spanned the globe and caused a worldwide travel dropoff, African Aerospace reports .
“Since resuming domestic flights on July 15 2020, we have been monitoring the adherence to the protocols that we have in place to ensure the health and safety of our customers and staff, and I am pleased that they are being enforced and followed strictly,” said Allan Kilavuka, Group Managing Director and Chief Executive Officer of Kenya Airways.
The first flights were marked with two intercontinental flights to London and Dubai, while Addis Ababa, Ethiopia; Kigali, Rwanda; Dar es Salaam, Tanzania and Lusaka, Zambia were the first regional international flights for the SkyTeam Alliance member.
Kenya Airways also expects a gradual increase in its network throughout the month of August with flights to Paris; Mumbai, India and Amsterdam. In Africa, the airline will launch to flights to Accra, Ghana; Dzaoudzi, Mayotte; Freetown, Sierra Leona; Harare, Zimbabwe; Kilimanjaro, Tanzania; Lagos, Nigeria; Monrovia, Liberia; Moroni, Comoros; Nampula, Mozambique and Zanzibar, Tanzania with focus on increased travel demands and travel regulations to those destinations.
“The resumption of our international flights is an important milestone for us. Through the COVID-19 pandemic, we have continued to provide connections for our farmer’s produce to reach international markets, medical supplies to reach our people through our Cargo flights, as well as reuniting families through the repatriation flights we mounted with support from the Government of Kenya. We look forward to welcoming our guests on board as we play our role in kick starting economies, not only for Kenya but also for those countries that we operate to,” Kilavuka continued.
Rwandair also returned to the skies, beginning international flights on Aug. 1 as previously announced by the Rwanda Development Board (RDB).
The flights started with selected African routes where travel restrictions have been eased and borders reopened.
“Now travel bans and restrictions are being relaxed, we can once again resume flying and look forward to welcoming our highly-valued customers back to RwandAir,” said RwandAir CEO Yvonne Manzi Makolo.
The airline has put in place a robust health and safety system that ensures coronavirus mitigation. Among other measures, passengers, including those in transit through Rwanda, will be required to show proof of a negative COVID-19 test taken within 72 hours of arriving in Rwanda.
“We want […]
- Kenya Airways to resume China service on 08-Aug-2020
- August 4, 2020
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- United Nations Antonov An-72 Crashes In Mali
- August 4, 2020
A United Nations Antonov An-72 has crashed on arrival in Mali. Initial reports suggest that there were only a few injuries and no fatalities. It is unclear exactly what caused the incident, but it appears that the plane landed during or after a rainstorm. Pin RA-74044, the aircraft involved in the incident. Photo: Papas Dos via Flickr A UN plane crashes in Mali
The United Nations Antonov An-72 landed in Gao Airport in Mali. The plane was involved in a mission in Mali on behalf of the United Nations. It is unclear what led to the crash. However, the images from the incident show a lot of water around the aircraft, suggesting a possible landing during or after a rainstorm. #Mali #Transport #Minusma
Atterrissage forcé d’un avion de la MINUSMA a l’aéroport de Gao. l’avion rate la piste d’atterrissage.
Bilan provisoire:11 blessés légers pic.twitter.com/r8MqjpD9QS — JournalduMali (@JourDuMali) August 3, 2020 Reports from Maliweb.net indicate that the aircraft was involved in a runway excursion after landing. The report also stated that an official from the airport suggested that another plane had a safe arrival in Gao despite the rain.
The Aviation Herald reported that ten passengers suffered minor injuries while the pilot received more substantial injuries. According to an aircraft employee, the plane was performing an emergency landing and veered off the runway. Of the 11 people on board, seven were crew members, and four were passengers. Where is Gao?
Gao is located in the eastern part of Mali, closer to Mali’s border with Niger and Burkina Faso. The airport’s code is GAQ. Pin The location of Gao. Rendering created at Great Circle Mapper In 2018, the United Nations celebrated the completion and opening of a new runway in Gao. The airport operation was a big deal with the UN stating that there has been no other runway project in the UN’s history of airport and infrastructure development that came close to the size and cost of such an effort. Other advances to the airport included new taxiways, ramps, lighting, and satellite-based instrument approaches that, per the UN, allows for 24/7 operations in all weather conditions for international operators.
The leading airport in Mali is in Bamako, the capital of the country with code BKO. Bamako sees service from several major international airlines. Passengers can catch flights on Air Algerie, Air France, Air Senegal, Ethiopian Airlines , Kenya Airways, Royal Air Maroc, […]