MkukiMoto
Elder Lister
Economic Update by Cytonn Investments - April 12, 2020
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During the week ( April 6 - 12):
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During the week ( April 6 - 12):
- T-bills were undersubscribed, with the subscription rate coming in at 35.6%, down from 112.7% the previous week. The undersubscription is partly attributable to the IFB1/2020/9 bond sale in the primary market that closed during the week, coupled with tightening liquidity in the money market as evidenced by the interbank rate, which increased to 5.3% from 5.2% the previous week.
- Safaricom PLC and Vodacom completed the acquisition of intellectual property rights of M-PESA from Vodafone through a newly formed Joint Venture. The deal is estimated to cost approximately USD 13.4 mn (Kshs 1.4 bn) and will see both Safaricom and Vodacom gain full control of the M-Pesa brand, product development and support services.
- The Central Bank of Kenya (‘CBK’) announced that banks have up to Friday 10th April 2020 to submit details of all loans renegotiated as part of the measures to offer support to businesses and individuals and cushion the economy from the impact of the Coronavirus pandemic.
- The Tax Laws (Amendment) Bill 2020 was set to be tabled before parliament. However, this did not happen following the postponement of the legislature’s sitting to an undisclosed later date. In addition to other amendments, the Bill outlines a proposed amendment to the Income Tax Cap (Cap 470) through the deletion of section 22C, which provides for tax incentives to individuals saving towards purchasing of a house through a registered home ownership savings plan (HOSP).
- Fusion Capital, a local real estate developer, announced that it would offer a 3-month 30.0% rent relief to tenants in its Flamingo Towers development in Upperhill as a result of the Coronavirus pandemic, which continues to affect the sector.
- In the infrastructure sector, the Kenya Roads Board (KRB) disbursed Kshs 539.0 mn for maintenance of roads in the coastal region, as part of the Kshs 4.4 bn conditional grant, from the National Government for the maintenance of roads in all the 47 counties in this 2019/2020 financial year.
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