Author: David Indeje

Kenyan High Court has endorsed Uchumi Supermarkets company’s voluntary arrangement (CVA) with its creditors to settle its KSh 3.6 billion debt. Justice Mary Kasango of the Commercial and Tax Division in her ruling delivered 1 July, allowed the implementation of the CVA on condition that the Nairobi listed retailer pays all its debts within six months. The CVA was endorsed at the creditor’s meeting on March 2.   “The decision gives us a chance to implement our recovery plan,” Uchumi CEO Mohamed Mohamed said. According to the CVA, the retailer will not be liquidated. Uchumi owes Chandaria Industries Ksh 69 million,…

President Uhuru Kenyatta on Monday announced the resumption of international flights from August 1 as well as the lifting of intercounty travel restrictions. In a televised address Kenyatta said, “international air travel into and out of the territory of Kenya shall resume effective 1 August 2020.” He also announced the resumption of local air travel effective Wednesday, 15th July 2020 in strict conformity with all applicable guidelines and protocols from both the Ministry of Health and civil aviation authorities. A few ago, Kenyatta told the Corporate Council on Africa (CCA) Leaders Forum that this would be achieved through the lifting…

WPP Scangroup says it will pay shareholders a special dividend of KSh3.45 billion or Sh8 per share in August. The funds are proceeds realised from the sale of its shareholding in Kantar Business in Africa. “The board of WPP Scangroup Plc is pleased to announce the declaration and payment of a special interim dividend of KSh8 for every ordinary share held, subject to withholding tax, where applicable,” the company said in a market update. “The special interim dividend will be payable to shareholders on the company register at the close of business on July 28, 2020. The dividend declared will…

Kenya Airways says it will reduce its workforce in a right sizing largely attributed to muted recovery in demand for travel following the coronavirus pandemic. This is part of the airline’s ongoing turnaround programme to ensure business sustainability. It includes focusing on cost reduction initiatives, revenue enhancement initiatives, Network expansion, revamping our customer experience, and changes in senior management. As at the end of the Financial Year 2019, Kenya Airways had a headcount total of 3,734 staff. It also operated 36 fleets across its  54 global destinations. In 2019, KQ recorded a net loss of Kshs 12,985 million compared to…

Kenya’s economy is expected to contract in the second quarter, due to the adverse effects of the Covid-19 pandemic, the central bank said on Friday. In its weekly bulletin, the CBK said the economy remained resilient in the first quarter of 2020, and grew by 4.9 percent compared to 5.5 percent in the first quarter of 2019. The Kenya National Bureau of Statistics had attributed the growth to significant improvement in agricultural production arising from favorable weather conditions and the resilient services sector. However, KNBS said, “The economy was affected by the resultant uncertainty that was already slowing economic activity…

Kenyan service providers signaled a moderate rebound in business activity in June, but output and new orders deteriorated further a private survey showed on Friday. The rebound was attributed to a reduction in curfew hours that helped many businesses to increase operating hours and reopen premises. In addition, the relaxed measures in Europe led to a slight improvement in export demand that was the first since February.  According to the Markit Stanbic Bank Kenya Purchasing Managers’ Index (PMI) stood at 46.6 in June, rebounding from May’s 36.7 but staying below the 50 mark separating expansion from contraction. The report also…