Economic recovery began with easing of Covid containment measures and gradual resumption of business in the past year. PHOTO | FILE | NMG Market analysts expect rising political temperatures ahead of the August general election, rising fuel prices, lower agricultural output due to potential adverse weather and the desert locust infestation in the northern parts to dampen the prospects of recovery.
According to the National Treasury increased public expenditure pressures would place a strain to the fiscal space while the emergence of Covid-19 variants could lead to renewed disruption to trade and tourism.
Kenyan listed firms are offering dividends to shareholders for 2021, signalling recovery from the Covid-19 economic fallout even as prospects for the country’s full economic resurgence remain uncertain. Election, fuel prices
Market analysts expect rising political temperatures ahead of the August general election, rising fuel prices, lower agricultural output due to potential adverse weather and the desert locust infestation in the northern parts to dampen the prospects of recovery.
“We expect the discovery of new Covid-19 variants, the general election and slow vaccine rollout to continue weighing down the economic outlook. On the upside, we believe that the relaxation of lockdown measures will lead to improved investor sentiment,” analysts at Cytonn Investments Ltd said.
According to the National Treasury increased public expenditure pressures would place a strain to the fiscal space while the emergence of Covid-19 variants could lead to renewed disruption to trade and tourism.
Some firms listed on the Nairobi Securities Exchange that have published either their half-year or full-year financial statements for 2021 show improved earnings for shareholders to cash in.
In 2020, some listed firms including banks suspended dividend payments while others opted to issue bonus shares in attempts to preserve adequate capital to navigate through the Covid-19 storm.
Analysts at Sterling Capital saw economic recovery begin with the easing of the Covid-19 containment measures and gradual resumption of economic activity last year. Global recovery
However, in their market report dated December 2021, they argue that hurdles to economic recovery include the slow pace of global economic recovery, uncertainty over the political environment, high inflation and depreciation of the local currency.
So far, mobile phone operator Safaricom has declared an interim dividend of Ksh0.64 ($0.005) per share after its net profit for the six months to September 30, 2021, grew 12.1 percent to Ksh37.05 billion ($327.87 million).East African Breweries Ltd recommended an interim dividend of Ksh3.75 ($0.03) per […]
