Author: David Indeje

British American Tobacco Kenya (BAT) posted an eight percent growth in profit in six months to Ksh.2.7 billion from Ksh.2.5billion a year earlier. The growth was largely attributable to lower costs of operations and financing costs in the period. The company’s costs of operations fell by 10.1 percent to Ksh.6.8 billion as finance costs declined to Ksh.81 million in the period from Ksh.126 million last year. However, its net revenues went down 7.1 percent in the six months period ending June 30 at Ksh.10.5 billion from Ksh.11.3 billion from lower sales. “This was driven by lower domestic and export revenue…

Kenya’s biggest lender, KCB Group’s Outlook has been revised from stable to negative by global credit rating agency Fitch Ratings attributing to the economic effects of the coronavirus pandemic. Ratings are calculated on a scale of 11 predictors, with Fitch relying on independent auditors,  other experts to produce IDRs. The rating agency views that the lender’s asset quality weakened following the consolidation of National Bank of Kenya’s problem loan book, as highlighted by a 300bp increase in its impaired loans in 2019. However, Fitch says it “…has a positive view of management quality and corporate governance.” NBK was acquired in…

S&P Global Ratings has downgraded Kenya’s outlook from stable to negative over high debt that could be worsened by the Covid-19 pandemic. However, it affirmed Kenya’s ratings at ‘B+/B’. “The Covid-19 pandemic will slow Kenya’s GDP growth significantly in 2020 and weigh on its already weak public finances,” S&P Global said. “The ratings could also come under downward pressure if the ultimate economic fallout from the pandemic and weaker policy momentum derailed Kenya’s efforts to curb its twin fiscal and external deficits, pushing external debt up, and/or weakening external liquidity beyond our current projections.” The firm says “Although external financial…

The price of Super Petrol, Diesel and Kerosene will increase by KSh11.38, KSh17.30 and KSh2.98 per litre respectively as from July 15 according to the latest review by Energy and Petroleum Regulatory Authority (EPRA). Super Petrol will now retail at Ksh100.48 in Nairobi, Diesel at Ksh91.87 and Kerosene at Ksh65.45.  In Mombasa, the prices will be relatively lower at Ksh98.11 for Super Petrol, Ksh89.50 for Diesel and Ksh63.09 for Kerosene. In June, the marginal rise was a result of the recovery in crude oil globally. Year-on-year, petrol, diesel and kerosene prices fell by 22.23 percent, 28.34 percent and 39.49 percent…

Nairobi Securities Exchange has appointed Kiprono Kittony as the board chair effective immediately replacing Samuel Kimani who resigned Monday. Kimani has served as the chairman of the NSE board since 2012. He will remain on the board as an independent non-independent director for one more year. “After a thorough process, the board of directors has appointed Kittony as the next chairman of the NSE,” NSE announced. At the same time, NSE said Bob Karina will continue to serve as the Vice-Chairman of the Board for the next year. Kittony thanked the board for having elected him to the position of…

Cold Solutions Kenya Limited has invested KSh7.5 billion to construct state-of-the-art, temperature-controlled cold storage warehouses in the country. The firm will construct Cold Solution flagship facility in Tatu City Special Economic Zone in Nairobi, with other facilities located in Mombasa. The 15,000 square meters grade ‘A’ cold storage complex will span across six acres at Tatu City and will be the country’s largest, most advanced and efficient in the region. The facility is expected to be operational in 12 to 18 months. It has been flexibly designed to cater to numerous temperature ranges from +26 to -40 degrees Celsius and…