Author: David Indeje

In 2018, South Africa’s  Shoprite (JSE: SHP) opened its doors in the Kenyan market to strengthen its position in East Africa, however, the retailer is gradually shutting its business in the country. It has announced plans to close its City Mall branch in Nyali, Mombasa, and job cuts which will affect 115 workers due to the reduced flow of shoppers. A similar fate happened to its Waterfront, Karen branch in April. “Endeavour to continue trading at the Nyali branch is no longer viable. Financial and other data will be provided and discussed at a proposed meeting,” Shoprite said in a…

Activity in Kenya’s private sector expanded at a faster pace in July as measures to contain the coronavirus outbreak were lifted, data from Purchasing Managers’ Index (PMI) showed on Wednesday. However, business sentiment weakened as the outlook for activity amid the coronavirus disease 2019 (COVID-19) pandemic remained unclear. According to the Markit Stanbic Bank Kenya PMI’s index, activity jumped to 54.2 in July, from 46.6 in the previous month. July’s level was the highest since June last year. Below 50 represents a contraction; while 50 indicates no change. During the period, businesses generated higher sales in July, most notably from…

The Kenya Union of Journalists (KUJ) has sued Mediamax Limited for unfair termination of its employees on June 21, 2020. Through its lawyer, Ibrahim Oduor, the petition is before Justice Stephen Radido.  Oduor termed the matter as ‘extremely urgent’ as Mediamax’s action was in violation of the Kenyan Constitution.  “In a show of unbridled impunity and contempt to the fundamental human rights of its employees, the Respondent vide a text message sent out in the middle of the night, summarily terminated the Interested Parties Employment, in a process that was unfair, unlawful and outrightly inhumane and continues to withhold their…

Kenya’s earnings from tea in the first half of 2020 dropped by KSh5 billion as a result of the negative effects of the Covid-19 that impacted commodity trading in the global market. According to the data from the Directorate, Kenyan farmers received Ksh 55 billion between January and June 2020, a drop from Ksh 60 billion recorded at the same time in 2019. A kilogram of green tea on the international market dropped from Ksh 239 to Ksh 221 while the volume of tea exported dropped by 2,000,000 kilograms during the period under review. Data from the Kenya Bureau of…

The Zimbabwe Stock Exchange (ZSE) resumed trading on Monday after trading was indefinitely suspended in June to protect the country’s currency. https://twitter.com/ZSE_ZW/status/1290178914887720962?s=20 ZSE CEO Justin Bgoni confirmed on Twitter that the market was open following an “excruciating period” since the suspension. However, its resumption was without three listed companies: cement manufacturer PPC, financial services company Old Mutual and Seedco International. https://twitter.com/BgoniJustin/status/1290192657109540865?s=20 According to Bloomberg, the three stocks account for a combined 4.9 per cent member weighting in Harare’s main industrial index in Harare. Old Mutual, the 175-year-old SA insurer, is the largest company by market value. In a statement, finance…

South Africa’s retailer, ShopRite, has said it is considering a sale of “all or a majority stake” of its Nigerian subsidiary. It has operated in the country for 15 years through its Retail Supermarkets Nigeria Limited subsidiary. The company said it has been approached by potential investors willing to take over its Nigerian operations.  “As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year,” ShopRite said in a statement on Monday. “Any further updates will be provided to the market at the appropriate time,” read the statement. On the…