Author: Muindi

House prices are on the rise after seven quarters of depressed growth, a new survey by the Kenya Bankers Association(KBA) reveals. According to the KBA – House Price Index, prices rose by 0.22 per cent in quarter four of 2020,  from a 0.08 per cent contraction in the previous quarter.  Although house prices have been on the rise, it has been gradual. “The uptick in the House Price Index signals stabilising market prices, which largely reflect an outcome of the demand and supply dynamics in the market,” the index says. On the supply side, housing remains largely fixed, with adjustment…

British American Tobacco (BAT) has signed a strategic collaboration agreement with Organigram Inc., a wholly-owned subsidiary of publicly-traded Organigram Holdings Inc.  Under the terms of the transaction, a BAT subsidiary will acquire a 19.9% equity stake in Organigram Holdings Inc valued at £126 million ($176 million) to become the largest shareholder.  The two firms will create a “Center of Excellence” at Organigram’s facility in Moncton, funded equally by both parties.   BAT will own the intellectual property rights for products developed at the new R&D facility, and Organigram will be granted a royalty-free licence under the terms of the agreement.   Both companies will contribute scientists, researchers,…

Egyptian ride-hailing firm, SWVL, has announced the resumption of its regular commuter services in Nairobi, adding to their recently launched innovations dubbed Swvl Carpool and Swvl Travel. At the onset of the global COVID-19 pandemic in March last year, the firm reduced the number of routes covered by its regular rides service, owing to the low number of regular commuters within Nairobi at the time. During the pandemic period, we took our time to analyse the needs and patterns of commuters. We identified the areas of change and have used the information to advise our innovations and the decision to…

Unga Group Plc has posted a decline in its half-year earnings to KSh 83, 476,000 for the six months ending 31st December 2020. These are lower compared to a net profit of KSh 151,322,000 posted over a similar period in 2019.  The Kenya-based holding company is involved with the manufacture and marketing of a broad range of human nutrition, animal nutrition attributed the low earnings to depressed margins and massive restructuring and finance costs. Underscoring the tough market conditions, the group projects a tough year and said instead it will leverage its strengths to drive performance improvement initiatives across all…

Kenya Airways (KQ), has unveiled, Economy Max, a product that allows customers to create additional personal space by booking a seat or a row next to them.  Economy Max, a first of its kind for an African carrier, will be available for purchase between 48 to 3 hours before departure to all KQ customers purchasing Economy Class tickets globally. https://twitter.com/KenyaAirways/status/1363980386842345472?s=20 According to a July 2020 IATA Study, travellers are seeking ways to feel more comfortable about flying again. This has led to increased accountability for airlines to ensure passenger confidence. Julius Thairu, Chief Commercial and Customer Officer at Kenya Airways say…

Acorn Investment Management Limited Wednesday listed two of its real estate investment trusts (Reits) on the Nairobi Securities Exchange (NSE) unquoted securities platform (USP). They include Acorn Student Accommodation Development REIT (ASA D-REIT) and Acorn Student Accommodation Income REIT (ASA I-REIT). The Unquoted Securities Platform (USP) is the first automated solution that will facilitate the trading of shares of unquoted companies in Kenya. This is part of the Ksh 2.5 billion raised in new funding in the projects.  “These Reits are projected to give long-term investors an 18 per cent return over a 10-year hold basis which is significantly above…