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Furniture Manufacturer and PG Bison Kenya has Expanded its Manufacturing factory in Nairobi 

by Radarr Africa
written by Radarr Africa

Furniture manufacturer, PG Bison Kenya has expanded its manufacturing factory in Nairobi as part of the company’s plans to grow its investment in the Kenyan market.

The move is also part of the company’s plans to tap into the growing market for ready-to-assemble cabinet solutions.

The new factory features investments in technological advancements that will see it boost its production capacity for wood-based panels, individual cabinet parts, and flat pack cabinets while increasing employment opportunities by 20 per cent.

“Our commitment over the last 20 years of growing our footprint in Kenya is evidenced by the up-scaling of our investments to include large-scale manufacturing of value-add furniture components,” said Gerhard Victor CEO PG Bison SA.

As a supplier of wood-based panels, furniture components, and ready-to-assemble cabinetry, PG Bison has also committed to training local furniture artisans to empower them as partners in the value chain to provide customers with best-in-class product designs and finished products.

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“Our industry sector has the potential to substitute the imports of finished furniture and have the same locally manufactured. In order for this to materialise, manufacturers need to attain global competitiveness,” said Hitesh Mediratta MD PG Bison Kenya.

Mediratta called on the government to address the high level of duties imposed on wood-based panels and other raw materials used in the manufacturing of furniture to enhance the sector’s competitiveness.

“Our ex-factory costs are far higher than that of factories in China and this is primarily due to the comparative cost of inputs into the plant.  Kenya must aim to attain a vibrant export market. This can also be achieved through the negotiation of favourable terms under AfCFTA,” Mediratta said.

The company has helped create over 200 SMEs through the transfer of skills to over 1,000 individual installers and linking them with end users, developers and contractors. This is in line with the government’s focus on growing the SME sector.

SOURCE: Capital business

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BusinessEconomyMoroccoSanlam

Sanlam Maroc’s operations yielded 8.3% Annual increase in Turnover at the end of the first half of 2022

by Radarr Africa
written by Radarr Africa

Sanlam Maroc, an insurance company that recently rebranded from its original name “Saham,” has indicated that it saw an 8.3% annual increase in turnover at the end of the first half of 2022.  Sanlam Maroc’s operations yielded MAD 3.673 billion ($347.5 million) in turnover by the end of June 2022, the statement indicates, the group said in a statement released on Tuesday.

Formerly known as Sanlam, the company announced back in June that it was rebranding to represent the name of its majority stakeholder, the South African insurance giant Sanlam.

Prior to the rebranding, Sanlam’s stakes in Saham first reached 61.7% in 2018 under a $1.05 billion deal. 

The company was planning a gradual takeover of the Moroccan insurance group, revealing plans of boosting its stakes in Saham to 84.5% by 2022. 

Sanlam later announced scaling back on the deal citing “unmet conditions,” while market observers speculated the move was due to the effect of the COVID-19 economic fallout.

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Sanlam Maroc is currently the fourth-largest insurance provider in Morocco, following Wafa Assurance, Royal Maroc Assurance (RMA), and Mutuelle Taamine Chaabi.

Prior to the rebranding, Saham’s revenues at the end of 2021 reached MAD 1.268 billion ($133.6 million), increasing by 10.3% from the MAD 1.150 billion ($133.6 million) recorded in the previous year. 

Saham alone controls 68 subsidiaries, with a market footprint in both Africa and the Middle East. After acquiring stakes in Saham in 2018, Sanlam now manages subsidies in 33 African countries.

SOURCE: Morocco news

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Eastern AfricaGlobal NewsMarkets

Kenya Re draws 32 percent of premiums from India market

by Radarr Africa
written by Radarr Africa

India has grown to become Kenya Re’s second largest source of business contributing 32 percent of its gross premiums behind Kenya’s 38 percent in the year ended December, according to South African rating firm Global Credit Rating (GCR).

Kenya Re has traditionally depended on the Kenyan market –from which it gets a mandatory 20 percent premiums from primary underwriters— which made up half of the company’s business over the years.

The company has however diversified into small presences in multiple markets, growing its potential for premium diversification with India leading in market growth to rival the Kenyan business. “We continue to view the group’s business profile to be slightly positive, underpinned by moderately high geographic diversification of its gross premiums,” GCR said.

“In this regard, about 38 percent of the group’s premiums are ceded from Kenya, 32 percent from India, and the rest from more than 80 countries.”

For a long time, the Kenyan business has been contributing nearly 49 percent of gross premiums, 20 percent from India with the balance being comprised of small presences in multiple markets.

Kenya Re which posted Sh832 million net profit in the half year to June, up from Sh533.7 million the year before, collected premiums worth Sh11 billion in the six-month period.

The company has three fully owned subsidiaries including Kenya Reinsurance Corporation Côte d`Ivoire, Kenya Reinsurance Corporation Zambia, and Kenya Reinsurance Corporation Uganda limited and associate company Zep-Re. The reinsurer has invested millions of shillings in setting up and expanding regional subsidiaries to diversify its portfolio.

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However, Kenya Re’s domestic market position is regarded as moderately strong, reinforced by mandatory cession. GCR however noted a contraction in its market share in the local market on account of stiff competition mainly due to price wars in the market, increased retention capacity among cedants and reduced participation in some accounts.

“In this respect, while one percent growth was registered by Kenya Re on domestic cessions in the review year, total industry cessions (both life and non-life) grew by 19 percent resulting in the entity’s reduction in the market share to 14.2 percent (2020: 16.7 percent, 2019: 17.4 percent),” GCR said.

Other reinsurers operating in Kenya include Ghana Re, Zep-Re, East Africa Re, and Continental Re. Kenya Re remains well diversified and has continued to grow subsidiaries with cessions from their respective primary markets ranked among the top ten contributors to the group’s total premiums.

GCR gave the company a stable outlook reflecting expectations that the credit profile will remain very strong, supported by strong risk-adjusted capitalization and liquidity.

SOURCE: Business daily

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BusinessEastern AfricaEconomySanlamUncategorized

Sanlam Kenya narrows half year net loss to Sh287m on lower taxes

by Radarr Africa
written by Radarr Africa

Insurance firm Sanlam Kenya narrowed its net loss to Sh287.7 million in the half year ended June on the back of a lower tax bill and reduced expenses. The company had posted a net loss of Sh291.8 million a year earlier.

Sanlam’s tax expenses collapsed to Sh2.8 million from Sh68.9 million. The company did not disclose the reason for the sharp reduction in its tax bill. Sanlam has recently revised the reserves for claims besides correcting earlier accounting errors which could have an impact on taxes payable.

The insurer’s operating and other expenses declined to Sh1.47 billion from Sh1.79 billion, helping to cut the losses.

The Nairobi Securities Exchange (NSE)-listed firm saw its net earned premiums grow 5.5 percent to Sh4.6 billion from Sh4.3 billion. Net claims meanwhile increased to Sh4.2 billion from Sh4 billion. Investment income dropped by 33.4 percent to Sh1.02 billion.

The fall of share prices on the NSE is part of the factors hurting returns for underwriters with significant exposure to the stock market.

The insurer’s South Africa-based parent firm is creating a joint venture with Allianz SE, a move that could have an impact on their local subsidiaries (Sanlam Kenya and Jubilee Allianz General Insurance Kenya)

Allianz earlier told Business Daily that it will take time to review the fate of its newly acquired local subsidiary Jubilee Allianz under its pan-African partnership with South Africa’s Sanlam Limited.

Allianz Africa regional head of mergers and acquisitions and General Counsel Nandini Wilcke said no decision has yet been reached on how to treat the new company under the 10-year joint venture that will bring together the multinationals’ interests in their local subsidiaries.

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“At the moment Allianz is focused on completing the Allianz acquisition of the majority shareholdings in Tanzania and Mauritius as previously announced, as well as to continuing to strengthen the Jubilee Allianz businesses in Kenya, Uganda and Burundi,” she said recently.

“For now the focus is on business as usual. No decisions have yet been made about the Sanlam or Allianz business operations in Kenya.”

Under the 10-year deal between insurance giants Allianz SE and Sanlam Limited, the latter will own a 60 percent stake in the joint venture while Allianz will hold a 40 percent interest with an option to buy an additional nine percent ownership in the future.

SOURCE: Business daily

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Global NewsTransportation & Logisitics

American Airlines Posts $476 Million Profit in Q2 2022

by Radarr Africa
written by Radarr Africa

American Airlines has posted a $476 million profit for Q2 2022, its first profit without COVID aid. The profit compares with just $19 million during the same period, last year.

Revenues jumped about 80% to $13.4 billion, the most in the company’s history. However, jet fuel costs were more than double the level from the 2021 period.

From April through June, revenues topped those of the pre-pandemic 2019 quarter by 12%, even though capacity was 8.5% lower.

American Airlines says it expects a profitable third quarter, based on travel demand and the forecast for fuel prices. It said revenue will be 10% to 12% higher than the same period in 2019 even as it cuts passenger-carrying capacity by 8% to 10%

Air travel in the U.S. has returned to nearly 90% of 2019 levels, according to government figures, although corporate travel remains down 20% to 25%, American said.

SOURCES: The Kenya wall street

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BusinessEastern AfricaEconomy

Inchcape Launch New Range Rover L460 Model In The Kenyan Market

by Radarr Africa
written by Radarr Africa

Inchcape Kenya has introduced the new Range Rover L460 into the Kenyan automotive market, adding to the significant array of luxury SUV’s the company offers under its Jaguar Land Rover franchise.

Dubbed as ‘the most desirable SUV’, the vehicle is the first of the L460 model and will be available in different variants which include the High Standard Equipment (HSE), Autobiography, SV, the 1st Edition only available in the first year of manufacture.

The New Range Rover is available with a choice of powerful Ingenium 4.4 litre V8 petrol and a 3.0-litre six-cylinder diesel engine that have an electric super charger.

Speaking during the media launch event held at the Jaguar Land Rover Showroom, Inchcape Africa Managing Director, Francis Agbonlahor, noted that the vehicle upholds its reputation of pioneering innovation with the suite of technologies designed to enhance convenience, efficiency and safety.

“The new Range Rover L460 incorporates Software-Over-The-Air (SOTA) updates meaning the vehicle will constantly evolve and remain up to date as it matures,” he said.

The new Range Rover has an advanced Pivi Pro infotainment system that provides immediate start-up and its complemented by a 13.1-inch Interactive Driver Display screen with high-definition graphics and configurable layout” said Mr. Agbonlahor

The vehicle’s body is 50 per cent stiffer than before, creating a safe and strong body designed to accommodate the new 23-inch wheels – a first for Land Rover – and 815mm diameter wheel combinations.

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Additional features that make the vehicle the ultimate SUV experience include the Adaptive Cruise Control and the Steering Assist which smooth out body movements resulting from sudden changes in speed, headrest speakers with next-generation noise cancellation and a new clean air technology that significantly reduces odours and viruses – creating one of the quietest, most relaxing, luxury travelling experience yet.

The vehicle is now available for purchase in Kenya at the Inchcape’s Land Rover showroom.

SOURCES: Capital business

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BusinessEastern AfricaEconomySafaricom

Safaricom extends repayment of Sh47bn credit facilities

by Radarr Africa
written by Radarr Africa

Safaricom has restructured $400 million worth of short-term credit facilities into medium-term loans in a process that saw part of the debt converted into local currency to ease pressure on cash flows and reduce foreign exchange risks.

The company had borrowed the cash last year from a consortium of lenders including Standard Chartered Bank Kenya to make its contribution to the payment for the $850 million fee for a telecoms licence in Ethiopia.

The Nairobi Securities Exchange-listed firm says in its latest annual report that the borrowings have since been restructured into two facilities, stretching out the repayment over seven years.

“During the year, the bridge facility was converted into a five-year long-term facility of $120 million and a Sh31.1 billion ($280 million) seven-year with two years moratorium on principal repayment,” the firm said.

“The new facility was done through a syndication process where both local and international banks participated in.”

The extension of the maturity period and conversion of part of the debt into local currency have saved the telco from a major repayment headache at a time when the weakening of the shilling has inflated dollar-denominated loans.

The Kenyan shilling has depreciated 8.7 percent over the past 12 months to trade at 118.3 units to the dollar, raising the cost of repaying interest and principal for borrowers in the hard currency.

Safaricom did not disclose the interest rate on the two new credit facilities and neither did it specify the lenders who provided the funds. Stanchart has separately said it was part of the consortium that lent the funds to the telco.

The telco said it closed the year ended March with net debt of Sh34.5 billion. The company borrows tens of billions of shillings but usually pays most of the debt within months.

The expansion into Ethiopia has seen it borrow more funds long-term as it invests in the new subsidiary that is expected to break even within four years.

The Ethiopia business reported a net loss of Sh4.8 billion in the 10 months ended March, reflecting the startup costs in a period when it had no revenue.

Safaricom’s partners in the joint venture –Safaricom Ethiopia— are Sumitomo Corporation, CDC Group and Vodacom Group. The Nairobi-based telco is the majority shareholder in the new subsidiary with a 55.71 percent stake.

SOURCES: Business daily

ALSO READ: KRA Destroys Contraband Beverages Worth more than Shs30 Million
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Brand ComparisonBusinessEconomyInformation & Technology

EABL Appoints Image Registrars Limited as Registrar

by Radarr Africa
written by Radarr Africa

EABL wishes to notify its esteemed shareholders, the general investor community and the public of the appointment of image registrars  Limited as EABL’s Share Registrar with effect from 1st July 2022 (the effective date). All shareholder queries, application(s) for registration of transfer of shares in EABL, dividend claims, issuance, cancellation and re-issuance of dividend cheques / payments, immobilization of shares and any other share registration services should be lodged with Image Registrars Limited from the effective date.

Image Registrars’ physical and postal addresses are 5th Floor Image Registrars Limited, Absa Towers (former Barclays Plaza), Loita Street.
Established in 1993, Image Registrars is a leading securities registrar and secretarial services provider in Kenya.

The firm continues to invest in state-of-the-art technology marshalled by a team of dynamic and dedicated professionals to offer world-class service.

EABL says appointment is w.e.f 1st July 2022

The firm is part of a group of associated professional firms providing comprehensive business and professional services, including company secretarial and share register maintenance, accounting, audit, consulting and information technology services.

This partnership ensures clients find solutions to their varied business problems under one roof. Clients get additional value from these relationships.

The firms are MGI Adam & Associates- An audit firm providing auditing, accounting and consulting services. MGI Adam and Associates is part of Midsnell Group International of UK, an international group of independent accounting and consultancy firms worldwide.

This affiliation offers vital potential for exploring strategic alliances and business opportunities for clients and providing business solutions worldwide.

SOURCES: THE KENYA WALL STREET

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BusinessEconomyEntrepreneurshipReal Estate

NSE holds Conference for Finance Officers in Kenya

by Radarr Africa
written by Radarr Africa

The Nairobi Securities Exchange (NSE) PLC has hosted the inaugural NSE CFO Conference. The conference brought together finance leaders from leading companies in Kenya and the region to deliberate on equity and debt financing opportunities provided by public capital markets to fund the growth and expansion of companies in Kenya and the region.

The NSE CFO conference enlightened finance leaders on favourable funding models that Kenyan companies can adopt to accelerate their growth whilst cushioning themselves from the challenging operating environment.

NSE CONFERENCE ATTRACTED CFOs OF LEADING FIRMS IN KENYA

The conference drew insights on emerging issues such as Environmental, Social and Governance (ESG)matters that continue to influence investors’ capital allocation decisions and other developments, including Green Bonds, Real Estate Investment Trusts and the Unquoted Securities Platform.

During the conference, Paul Mwai, Vice-Chairman of the Nairobi Bourse said local capital markets offer a suitable alternative source of funds with better pricing and longer maturities, allowing companies to grow with reduced pressure on loan repayments.

He added that successful issues point to renewed confidence by investors and bright prospects for those companies that seek to raise capital in the future.

“They also cement public capital markets position as one of the most efficient platforms for raising long-term capital for businesses,” he added.

Geoffrey Odundo, NSE Chief Executive, said finance leaders have a more critical role to play in preparing for companies’ short-term and long-term financing-related needs to mitigate risks and propel growth”.

Wyckliffe Shamiah, CEO, Capital Markets Authority, lauded the conference noting that it has set the foundation for a close working relationship that will catalyze capital raising initiatives, using public capital markets as the preferable avenue.

Recent issuers, including Acorn Holdings Limited, East African Breweries Limited, Crown Paints PLC, and the Kenya Mortgage Refinance Company, commented on the seamless and timely capital raising process they experienced during their respective issuances.

The NSE CFO Conference will be an annual Conference that the NSE will be hosting for finance leaders as it seeks to highlight financing opportunities for companies in Kenya through public capital markets.

SOURCES: THE KENYA WALL STEET

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Food ProductionKenyaManufacturing & Consumer Goods

Blow as KRA Shuts Down Keroche Breweries in Fresh Tax Dispute

by Radarr Africa
written by Radarr Africa

The Kenya Revenue Authority (KRA) has shut down Keroch Breweries again, on claims that the latter had defaulted in their earlier agreement on the settlement of tax arrears.

The company CEO Ms Tabitha Karanja says beer worth at least KSh350 million could go to waste if the brewer is not reopened in time to recover the losses, with over 400 workers losing their jobs.

In March this year, Keroche and KRA signed a payment plan that would see keroche settle an undisputed tax amount of KSh957 million over a period of 24 months starting from January 2022.

According to the company CEO Tabitha Karanja, efforts by the company to seek more time to pay the arrears had hit the wall.

“KRA has issued agency notices to the company’s bankers and instead of correctly notifying the banks of the KSh300 million we owe, it gave a wrong figure of KSh558.7 million,” Ms Karanja said.

This is the second time the factory is being shut by the taxman this year due to tax disputes.

SOURCES: KENYA WALL STREET

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