Author: Khusoko

Equity Group Wednesday signed a $100 million (KSh10.96 billion) loan deal with leading European development banks aimed at deepening lending to micro small and medium-sized enterprises (MSMEs) hit by Covid-19 disruptions. The loan is from Germany’s DEG, the Netherland’s FMO and Britain’s CDC Group.  “The syndicated facility indicates cross-cutting trust on Equity’s ability to manage a sophisticated financing mechanism. The three development banks recognise the critical role that Equity plays in promoting access to finance for MSMEs,” said Equity Group CEO James Mwangi. Chief Investment Officer at FMO Huib-Jan de Ruijter said the facility will be a lifeline for the…

Bonds have continued to play their defensive role in portfolios amid sustained volatility in other investments.  In 2020, this role was made easier by the massive rally in yields that was underpinned by aggressive monetary easing across governments coupled with the pandemic induced flight to safety. This year, however, portfolios may be subjected to a bumpy ride given the growing risk of higher yields, as economies recover and inflation expectations rise faster than initially expected.  Accordingly, markets are pricing in the possibility that central banks may have to begin normalizing monetary policy sooner than earlier guided.  Moreover, the impact of…

Kenya will receive its first batch of coronavirus vaccines within the first week of March, the Government said on Thursday. The first group to be vaccinated will include health care workers and frontline workers among them security personnel and teachers, vulnerable persons and those in working in the hospitality industry. “Cabinet ratified the distribution framework for the vaccines; with first priority being given to Health Care Workers, Frontline Workers including Security Personnel and Teachers, vulnerable persons and groups and Hospitality Sector Workers,” the presidency said. The government plans to vaccinate 16 million people by end of the year to suppress…

KenGen, Kenya’s biggest electricity producer, says its half-year profit before tax soared 9.5% to Kshs. 6.87 billion for the period ended 31  Dec 2020.  However, its profit after tax for the period declined 38.2% to KSh5.05 from KSh8.17 billion it reported on 31 2019.  KenGen’s energy sales increased by 5% following growth in national electricity consumption which saw peak demand reach 1,976MW in December 2020 compared to 1,882MW during a similar period in 2019.  Revenue from geothermal operations continued to show a growth trajectory, recording an increase of 14% supported by additional generation capacity from Olkaria V and revenue diversification…

Listed utility company Kenya Power & Lighting Company Plc (KPLC) said on Thursday it recorded a record first-half profit, thanks to reduced transmission and distribution costs.  The firm posted KSh138 million net profit for the half-year ended December 2020 compared to KSh692 million posted in the same period the previous year.   “Transmission and distribution costs decreased to Ksh 18,675 million from Ksh 22,977 million the previous period due to ongoing cost management initiatives,” the company said in its unaudited results.  However, its finance costs increased to Ksh 8,057 million from Ksh 3,835 million the previous period due to the depreciation…

Humanity must agree on the benefits of technology – and then use it to uplift each other and achieve our development goals says Huawei vice-president Catherine Chen. Technology holds significant benefits for humanity and digital technology can be an indispensable tool for helping the United Nations achieve its Sustainable Development Goals (SDGs). This is according to Chen Lifang, Huawei Senior Vice President and Board Member, who delivered a keynote speech titled “Believe in the Power of Technology” at the recent Connected for Shared Prosperity Forum in Shanghai. Chen said the technology could be an engine for human progress and called…