Week 16 2023 Market Cap Trainers Summary

KEY HIGHLIGHTS FOR THE WEEK ENDED 21 MARCH 2023

• In the Treasury bills auction of April 20, the government sought to raise KES 24 billion but received bids totaling KES 35.15 billion representing a performance of 146.47% percent. Amount accepted amount to KES 33.28 billion compared to KES 27.37 billion last week.  Interest rate on 91-Day Treasury bill, 182-Day Treasury bill and 364-Day Treasury bill was 10.159%, 10.477% and 11.059% respectively. The subscription rates across the three papers were 799.62%, 21.49% and 10.18% respectively.

• The bond market reported increased activity with bonds worth KES 11.20Bn transacted compared to KES 8.40Bn registered the previous week. Year to date bonds worth KES 202.76Bn has been traded in the Secondary market in the Nairobi Securities Exchange.
• The Communication Authority of Kenya has been given 60 days by the High Court of Kenya, to respond to concerns that Safaricom and Telkom Kenya have denied interconnection services to a local firm that offers low priced call roaming services.
• The depreciation of the Kenya Shilling against the dollar by 6.8 percent in the first quarter of 2023 made the NSE to be very unattractive to foreigners in the first quarter of the year. As per the Morgan Stanley Capital International (MSCI) Kenya Index, which guides foreign investors on local market investments, showed a return of -20.2 in the three months to March. None of the other nine African markets had a return lower than negative seven percent.
• NCBA and Equity Group CEO earned a combined KES 362.37 Million pay in the year ended 31 December 2022. Mr. James’ Mwangi earnings increased 49 percent to KES 213.64M, including a Sh 53 million bonus, having missed out on the incentive pay in 2021.  NCBA  Group Ceo Mr Gachora  earned a pay rise of 87.7 percent to KES 147.73 Million, including a bonus of sh 40 million, after missing  the performance linked reward for two years in a row. Both rises are justified given the increase in profitability reported by the two banks in 2022.
• Betting firms are set to remit taxes via M-PESA under new system. An estimated  137 online bookmakers are set to remit betting taxes on a real-time basis to the Kenya under the proposal via Safaricom’s M-PESA platform. This should see KRA collect more revenues from betting excise duty that stands at 7.5% of wagered amount and 20% withholding tax on punter winnings.
• Savannah  Clinker an affiliate of Savannah Cement has raised KES 65Bn ( $500 million) for set up of a clinker plant in Kitui County. Setting up such a plant takes between 22 to 36 months to come to completion.
• Safaricom is the most valuable in Kenya and East Africa according to a report  by Brand Finance with a brand value of KES 87B ($646.12M), followed closely Equity Bank and KCB. Other brands in the top 10 positions by value are M-Pesa, Co-operative Bank, Kenya Power,NCBA, I&M, Tusker and Kenya Airways.
• Deputy President Rigathi Gachagua last week received 2 oil tankers at the Mombasa Port, the first shipment under the new Government  oil deal. The MT Front Capella had 83,000 tonnes of Jet A-1 fuel, while the MT Nordolphin had 89,191 tonnes of diesel and petrol.
• The Competition Authority of Kenya (CAK) has approved the purchase of a 55.8% stake in Maisha Microfinance Bank (MFB) Kenya by Cactus Cantina Investment Limited. The bank controls less than 10% of the market share in the Microfinance Banking Market.
• Transcentury KES 2.06B right issue in which 1.876B shares  were on issue at a price of KES 1.10 per share , recorded an aggregate subscription performance rate of 40.13%. Trading of the new shares  will start on 26 April 2023.