Author: David Indeje

The Competition Authority of Kenya has approved the proposed merger between Commercial Bank of Africa and NIC Group. However, the approval is on condition that “…none of the employees of the merged entity are declared redundant within 12 months of closing the transaction in Kenya.” In January, NIC and CBA respective Board of Directors agreed to the merger. The proposed merger will be executed through a share swap. An exchange share ratio will be based on a 47:53 relative valuation of NIC and CBA respectively. Post-merger, the market share of merged entity will be 10.67%. This will make it the…

The Kenya Revenue Authority on Friday interdicted 75 members of its staff on allegations of abetting tax evasion and bribery. However, according to KRA’s statement, they have not been charged but being questioned. “Investigations into the rackets have been in progress for the last four months with covert assistance provided by national law enforcement agencies to help in trailing money and communication,” it said. Those accused, 61 are from Domestic Taxes Department and the remaining 14 are from Customs and Border Control Department. “The practices in question include facilitation of fraudulent clearance of cargo, fraudulent amendment of tax returns so…

Uganda has announced the second round of competitive bidding for five oil exploration blocks in its Albertine Graben region by the Minister of Energy and Mineral Development. Minister of Energy and Mineral Development Eng. Irene Muloni on Thursday said they were expecting potential exploration companies for the blocks given that the current price of crude oil was high and very attractive for investment. “I am very pleased to announce that my five new brides are ready. They are very attractive and easy to find. I invite investors to come and take them up,” Muloni said. The five blocks are Avivi…

Kenya has announced a roadshow for a dual-tranche Eurobond (12- and 31-year paper) to raise Ksh250 billion for both bonds. The international tour will target investors in Europe and the United States. The National Treasury has appointed J.P. Morgan and Standard Chartered to lead the new Eurobond issue. https://twitter.com/PaulWallace123/status/1126155887628955648 “Pricing for the bond is still uncertain. However, whereas heightened risk aversion on the back of geopolitical and trade tensions and the absence of the IMF pre-cautionary facility may attract a higher premium, sound domestic economic underpinnings as well as sustained yield search amidst a dovish drift in major central banks’…

Debt-laden ARM Cement PLC (NSE:ARM) application to delay the release of its results for the financial year 2018 has been approved by the regulator. The cement maker missed the March 30 deadline. However, its Administrators in a Public Notice dated April 30 said: “The company has applied for and obtained approval from the Capital Markets Authority for a two-month time extension in order to publish the audited financial statements of the company for the financial year ended 31 December 2018 on or before 30 June 2019.” “The Administrators have taken steps to address the challenges that have occasioned the expected…

A report by Amana Capital reveals that Kenya has been maintaining a managed shilling rather than a free-floating currency. This approach could potentially make its exports more expensive in the short term compared to competitors, leading to a decrease in export earnings and economic growth. Reginald Kadzutu, Amana Capital’s Chief Investment Officer, stated that the shilling is overvalued by 30%. He pointed out that the consumer price index, which was at KSh97 in 2009, has risen to KSh192. This means that Kenyans are now spending KSh192 to buy what could have been purchased for Sh100 ten years ago, indicating a…