Author: Muindi

Acorn Student Accommodation Development REIT (ASA D-REIT) sold one of its properties, Qwetu Aberdare Heights II, to Acorn Student Accommodation Income REIT (ASA I-REIT) for Sh1.48 billion.  The property has 630 beds and is located near USIU. It is the fourth asset that ASA I-REIT has acquired from ASA D-REIT in the past three years, bringing its total portfolio to seven properties with 4,450 beds. The sale also increased the total asset value of ASA I-REIT to Sh10.5 billion. ASA D-REIT used part of the proceeds to repay Sh600 million of the Acorn Green Bond, which has a total value…

Sanlam Kenya Plc, a non-bank finance solutions provider, has projected a drop in its earnings after tax for the year ending December 31, 2023, due to high costs of doing business and a sluggish economy. The company expects its earnings to be at least 25 per cent lower than the previous year, the board of directors announced. The decline in earnings has been attributed to high-interest rates that have increased finance costs for the company and unrealised losses on its government securities portfolio, which have reduced its fair value. For the financial year ended December 31, 2022, the company reported…

Everyone needs a roof above their heads. According to the Worldometer, Kenya’s 2023 population is estimated at 55,100,586 people at mid-year. Kenya’s population is equivalent to 0.68 per cent of the total world population. At the same time, Kenya ranks number 26 in the list of countries (and dependencies) by population. With such a vast population, housing demand has been growing year over year. According to Habitat for Humanity, Kenya has an annual housing demand of 250,000 units with an estimated supply of 50,000 units, culminating in a housing deficit of 2 million units, or an 80 per cent deficit.…

Kenya Airways (KQ) has leased an A330 Airbus from Hi Fly, a leading lease and charter airline, to boost its operations and capacity during the festive season.  The ACMI lease will allow KQ to add the aircraft to its fleet immediately.  Kenya Airways CEO, Allan Kilavuka, said the lease was a practical solution to the growing demand for air travel and the limited capacity of the airline.  He said the new aircraft would improve the stability, efficiency, and convenience of KQ’s services.  “With the current capacity constraints on the back of the growing demand for airline travel, we need to…

Carrefour’s franchisee in Kenya, Majid al Futtaim (MAF) will appeal against a Ksh 1.1 billion penalty imposed by the competition authority for abusing its buying power with Pwani Oil and Woodlands Co. Ltd. According to Majid al Futtaim, the regulator did not consider that the suppliers had dropped their complaints and renewed their contracts with them.  As a result, MAF will challenge the authority’s decision at the Competition Tribunal and the High Court if needed. “Majid Al Futtaim has full confidence in the fairness and integrity of our business practices and is appealing the Competition Authority’s decision,” MAF said in a…

The Competition Authority of Kenya (CAK) has fined Carrefour Kenya Ksh 1.11 billion for abusing its buyer power over Pwani Oil and Woodlands Co. Ltd. Woodlands is a refined natural bee honey supplier, while Pwani supplies edible oils, fats, skin care products and laundry soap. “The Authority as pursuant to investigation penalize Majid AI futammi which trades in Kenya under the brand name Carrefour a total of 1,108,327,873.60 for separately abusing its superior bargaining position over two \of its suppliers,” read the statement. In addition, the retailer has been ordered to amend all its supplier contracts to remove clauses that…