Author: David Indeje

The National Treasury raised Ksh.60 billion from October’s 20-year and 25-year-opened bonds from its domestic market. Investors made bids worth to Ksh.69.1 billion against a pre-advertised offer of Ksh.50 billion. The 25-year bond sale saw bids worth Ksh.46 billion with the shorter 20 year bond with 10.6 years to maturity fetching bids amounting to Ksh.23.2 billion. The improved appetite resonates with NCBA Market Analysts who had earlier in the week said the issue was likely to receive fair interest from the public considering the persistent dearth of alternatives and improved liquidity partly from maturing papers. “While FXD1/2011/20 (10.6yrs to maturity)…

Kenya’s biggest telecoms operator Safaricom controls 50 percent of all inbound diaspora remittance through its M-Pesa Global platform. According to the Central Bank of Kenya data, it accounted for Kshs 2.65 trillion between April 2019 and the end of March this year. M-PESA Global allows customers to make and receive payments from 200 markets across the world since its launch in 2018. During the period, it registered a 12.1 percent growth in the period with M-pesa service transactional value at Kshs 13.9 trillion after registering a growth of 18.4 percent as revealed from the telco’s  9th Sustainable Business Report. “Our…

Kenya has been ranked at the 7th position in the latest edition of the Africa Financial Markets Index that benchmarks countries’ performance across a host of indicators within financial market development. However, Kenya’s score is a decline compared to its third position in 2019 and 2018. The decline was attributed to Kenya’s inability to make significant gains in the legality and enforceability of standard financial markets master agreements amongst its peers. Other factors include the dependence of foreign investor participation on its equities market, reduced market capitalization at the bourse which was triggered by the COVID-19 pandemic which saw foreign…

VSA Capital has inked a strategic partnership deal with Faida Investment Bank expanding the London-based firm’s African footprint.  In a joint statement, VSA Capital Chief Executive Andrew Monk said the partnership will enable increase appeal to multinational clients looking for opportunities in Africa. Mr Monk says Faida Bank is in a leading position in East Africa in the provision of security trading services thus will strengthen VSA Capital’s presence across Africa. VSA Capital operates offices in London, Shanghai, and in partnership with Moshe Capital in Johannesburg. According to Monk, the partnership will create a formidable London-China-Africa axis that will see…

The National Treasury has disbursed Ksh 52.2 billion to Kenya’s 47 County Governments as part of their equitable share of the revenue for months of July and August 2020 This is after the government enacted the County Revenue Allocation (CRA) Bill that initiated the release of funds. “The backdating of the payments to July 2020 could potentially jerk up overall liquidity in October. Increased T-bill and bond maturities should also lend support,” says NCBA Bank Analysts. “Stronger payments into the financial system may further support the performance reducing pressure on yields.” According to NCBA Analysts, for instance,  the overnight rate…

Kenya’s debt has exceeded 7 trillion following large state borrowing as the coronavirus pandemic continued to wreak havoc to the economy. Data from the Central Bank of Kenya’s Weekly Bulletin shows that at the end of August, total accumulated debt hit KSh7.068 trillion. The debt increased by 0.158 billion compared with July’s KSh6.91 trillion. Between March and August, the country borrowed KSh782.75 billion of which KSh329.07 billion was from domestic sources and KSh453.69 from external sources. https://twitter.com/MihrThakar/status/1315242172694880257?s=20 Analysts at Genghis Capital project that the public debt will hit KSh9 trillion by the year 2022 if the current rate of borrowing…