Kenya | - Part 23

Kenya Banks Face New Row with Lawmakers over Deposits Plan

NAIROBI (Capital Markets in Africa) – A new row is brewing between Kenyan banks and parliament after a lawmaker proposed placing restrictions on deposits by state-owned companies, months after the state imposed a cap on lending rates. Kimani Ichung’wah, vice chairman of the Public Investments Committee, drafted a bill seeking to bar state-owned corporations from investing or depositing public funds with lenders in which the government has a stake of less than 20 percent. Ichung’wah declined to…

Kenyan Bourse Develops Equity Index, Single Stock Futures

Posted on by The Editorial Team

NAIROBI (Capital Markets in Africa) – Nairobi Securities Exchange has sought regulatory approval to introduce products in derivatives market, Capital Markets Authority says in e-mailed statement. Regulator proposes to charge fee not exceeding 0.14% per value of equity index futures contract, 0.17% per value of single stock futures contract. Proposed fees will “give investors exposure to price movements in the derivatives instruments rather than the underlying individual constituents”. Charges cover securities exchange, clearing member, trading…

Kenya Hires StanChart, Citigroup, RMB for $800 Million Syndicated Loan

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NAIROBI (Capital Markets in Africa) – Kenya’s government mandated four international banks to raise $800 million in syndicated loans that authorities need to boost foreign-currency reserves and plug a widening budget deficit, according to two people familiar with the agreement. The East African nation’s Treasury informed the Nairobi-based units of Citigroup Inc., Standard Bank Group Ltd., Standard Chartered Plc and Rand Merchant Bank on Tuesday that they were appointed to arrange the financing, the people said, asking not to be identified…

Kenya Central Bank Expects Current-Account Gap to Stabilize

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NAIROBI (Capital Markets in Africa) – Kenya’s current-account deficit will stabilize after shrinking last year as the currency strengthens, exports increase, tourism improves and remittances climb, central bank Governor Patrick Njoroge said. The gap probably narrowed to 5.2 percent of gross domestic product in 2016 from 10.4 percent 1 1/2 years earlier, he said in an interview Thursday in Davos, Switzerland. The bank will continue to intervene to slow the shilling’s depreciation and appreciation, trying to smooth…

Kenyan Stocks, World’s Worst This Year, Set to Fall Further

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NAIROBI (Capital Markets in Africa) – Kenyan stock prices at more than three-year lows may have further to fall with domestic investors favoring bonds and foreign buyers waiting for lower valuations, the head of the bourse said. Shares on the Nairobi Securities Exchange have dropped 6.9 percent since Jan. 1, extending last year’s 8.5 percent decline, because of jitters among investors about elections scheduled for August. The yield on Kenya’s benchmark 10-year bond has fallen almost 200 basis points to…

Kenya’s economy to grow at a slower pace this year, IMF Rep Says

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NAIROBI (Capital Markets in Africa) – Kenya’s economic growth rate will slow in 2017, from about 6 percent last year, due to sluggish credit growth and as investors take a wait-and-see attitude before a presidential election in August, a senior IMF official said on Monday. Armando Morales, the International Monetary Fund’s representative in Kenya, said growth is likely to remain within the 5-6 percent range of the past five years, despite the slowdown. “We expect a…

Election Vexing Foreigners Makes Kenya Stocks Cheapest on Record

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NAIROBI (Capital Markets in Africa) – Investor trepidation seven months from Kenyan general elections has turned the country’s stocks into the worst-performers of 2017, and driven valuations to the weakest on record. The Nairobi Securities Exchange All-Share Index has fallen 6.9 percent to the lowest since September 2013, the biggest slump among 94 benchmarks tracked by Bloomberg. The looming Aug. 8 vote has prompted concerns of a repeat of violence that marked voting in 2007 and foreign investors, who…

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