MaDaFu Newspaper

Today’s News Highlights

▪ Here are NSE's investment bankers' succession plans
Kenya's top investment banks are laying the ground for takeover of their companies by heirs in an elaborate succession plan seeking to ensure continuity of the businesses at the Nairobi Securities Exchange (NSE).

▪ Falling rates offer big corporates reprieve
In 2017 and 2018, Sanlam Kenya tapped two two-year loans worth $27 million (Sh3.5 billion) to, among other things, recapitalise the insurance businesses and finance completion of its office complex along Waiyaki Way.

▪ How the battle for deposits cost top lenders an extra Sh63 billionpar
Banks have watched as the number of customers opting to invest directly in government securities rises, forcing them to increase returns on deposits to levels last seen 26 years ago in an attempt to stop the flight to Treasury Bills and Treasury bonds.

▪ Special power tariff drives uptake of electric vehicles
The uptake of electric vehicles (EVs) in Kenya has grown nearly fourfold since the State introduced a special subsidised tariff in a bid to spur uptake of the units as the country seeks to cut its carbon footprint from the transport sector.

▪ Reduce digital tariffs for Africa's fast economic transformation
Digital trade is rapidly transforming economies across the globe, and Africa is no exception.

_Courtesy: Business Daily_

The Cost of Hiring a Football Stadium in Kenya Per Match by Football Teams: 🏟️

• Kasarani - KSh 80,000 (floodlights)
• Annex - KSh 29,000
• St. Sebastian Park - KSh 30,000
• Police Sacco - KSh 50,000
• Ulinzi - KSh 40,000
• Utalii - KSh 40,000
• Kinoru - KSh 29,000
• Dandora Stadium - KSh 30,000
• Ruaraka - KSh 20,000
• Thika Stadium - KSh 30,000
• Machakos Stadium - KSh 25,000
• Mumias Complex - KSh 20,000
• Bukhungu - KSh 20,000
• Gusii - KSh 70,000
• Awendo - KSh 15,000
• Ukunda - KSh 20,000
• Mombasa Sports Club - KSh 40,000

Today’s News Highlights

▪ Gains from NSE dead stocks beat blue-chip firms in 2024
Penny stocks at the Nairobi Securities Exchange (NSE) were the surprise top gainers this year, helped by speculative trading and a return to profits that boosted their dividend earnings.

▪ Safaricom seeks partners in phone insurance business
Safaricom wants to partner with insurance companies to insure millions of phones against breakage and theft ,marking the Tesco's new revenue stream months after registering an underwriting agency.

▪ Stronger shilling takes shine off gold listing on NSE
Gold has had a bullish 2024 with the price of the precious metal rallying on the back of renewed geopolitical tensions including escalation of conflict in the Middle East.

▪ MPs launch fresh bid to force down power prices
Members of parliament have launched a fresh bid to forcibly lower the prices at which power producers sell electricity to Kenya Power, in the latest push to reduce the cost of electricity.

▪ How Kenya averted risk of debt default during the year
In October 2023 , international commercial lenders made it clear that they would only lend to the Kenya government it it was prepared to pay between 13 and 19 percent in interest on dollar loans.

_Courtesy: Business Daily_

Today’s News Highlights

▪ Bank CEOs summoned over costly loans, cheap deposits
The Central Bank of Kenya (CBK) will this week step up pressure on commercial banks to cut lending rates at a crunch meeting with chief executives of top lenders who have started lowering interest on savings.

▪ Unclaimed cash, shares and dividends cross Sh75 billion
Unclaimed cash, shares and dividends surrendered to a State agency have crossed the Sh75 billion mark, reflecting the difficulty in reuniting the idle wealth as investors, including tycoons, show disinterest in reclaiming the assets.

▪ CBK to regulate buy-now-pay-later firms in Bill
The Central Bank of Kenya (CBK) will now determine the prices charged by buy-now- pay-later (BNPL) companies if proposed amendments to the law are passed by Parliament.

▪ Sanlam seeks Sh3.2 billion from shareholders to pay Stanbic loan
Sanlam Kenya plans to raise Sh3.25 billion from its shareholders to settle a Stanbic Bank Kenya loan and rescue the company from liquidity challenges.

▪KenGen gets Sh1.43 billion tax waiver
The Kenya Revenue Authority waived Sh1.43 billion in accumulated taxes by Kenya Electricity Generating Company (KenGen) following a review between the two State-run entities and a partial tax which ended June 2024, ending a decade-long dispute.

_Courtesy: Business Daily_

Edit, Sign and Share PDF files on the go. Download the Acrobat Reader app: https://adobeacrobat.app.link/Mhhs4GmNsxb

Today’s News Highlights

▪ State firms default on Sh266 billion Treasury-backed loans
Public institutions have defaulted on loans worth Sh266.5 billion, meaning the Treasury will step in to settle their obligations.

▪ KenGen earns Sh4bn from carbon credit sales
Electricity producer KenGen is set to receive $32.05 million (Sh4.14 billion) by January from the sale of its certified emission reductions (CERs), offering a sneak peek into the lucrative market of climate change initiatives.

▪ Foreigners buy extra Sh663 million KCB Group stake from local investors
Foreign investors purchased an additional 16.87 million KCB Group shares currently valued at Sh663.96 million in the three months ended September 2024, chipping away at the stake of locals.

▪ Suspect in Sh1.5bn Equity heist arrested from China
A man linked to the Sh1.49 billion heist at Equity Bank has been seized by detectives after jetting back from China where he had reportedly gone into hiding after receiving part of the loot in hard cash.

▪KRA raids Chinese cigarette marketers in tax fraud probe
Kenya Revenue Authority (KRA) investigators have raided offices and warehouses belonging to the local agents of the world's largest cigarette producer from China, as part of a preliminary probe of suspected tax fraud.

_Courtesy: Business Daily_

Today’s News Highlights

▪ Private sector pay falls for first time in over 30 years
Average monthly pay in Kenya's private sector has fallen for the first time in over three decades to Sh75,781, reflecting the impact of the country's soft economy that has pushed firms to keep a lid on costs.

▪ Ethiopia's birr hits Safaricom as Kenya unit profits grow
Safaricom will take longer to break even in Ethiopia after depreciation of the Horn of Africa nation's currency, birr, cut the telecoms operator's net profit amid a thriving Kenyan business.

▪ Carbacid unsure over Sh1.2bn buy of BOC Kenya
Uncertainty has hit the bid by Carbacid Investments to acquire fellow listed gas maker BOC Kenya even after the Capital Markets Tribunal struck out a petition opposing the protracted deal.

▪ Treasury raises Sh25 billion from two November bonds tap sales
The government has raised Sh25.7 billion from the first of two bond auctions this month, even as the Central Bank of Kenya continued to reject higher priced bids in efforts to bring down interest rates.

▪ KENHA, NLC ignore KenGen Sh250m claim for coast land
Kenya Electricity Generating Company (KenGen) is staring at losses of more than Sh250 million following acquisition of part of prime property in Mombasa for construction of a major road.

_Courtesy: Business Daily_

Document from Rishi Arun Parikh

Today’s News Highlights

▪ Trump win throws Kenya, US trade talks into doubt
Kenya's trade and investment deal with the United States that was set for conclusion next month has been thrown into uncertainty after Donald Trump was elected US president, capping a remarkable comeback four years after he was voted out.

▪ Shilling unmoved as dollar rallies on Republican's victory
The Kenya shilling remained relatively stable on Wednesday following the victory of Donald Trump in a US election that occasioned a sharp, one-day rally of the dollar against major world currencies.

▪ Private sector loans growth falls to low of 0.4 percent
Growth in lending by banks to the private sector slowed to a 22-year low of 0.4 percent in September, piling pressure on the Central Bank of Kenya (CBK) to lower its base rate despite concerns by the International Monetary fund that this could trigger fresh inflationary pressure.

▪ Why banks' lending rates are yet to fall
Commercial banks' loan interest rates are yet to move lower despite two successive cuts to the benchmark interest rate by the Central Bank of Kenya (CBK) to 12 percent from 13 percent.

▪ KenGen starts geothermal survey in Eswatini
KenGen is conducting exploration surveys in Eswatini to establish the country's geothermal energy potential, underlining its growing status as the go-to company in unlocking Africa's steam power

_Courtesy: Business Daily_

Today’s News Highlights

▪ Borrowers hit as IMF opposes CBK's plan to cut cost of loans
The International Monetary Fund (IMF) has warned Kenya against a larger interest rate cut despite the fall in inflation to a 17-year low and the recent stability of the shilling, saying that easing monetary policy risks price stability.

▪ Growth of new taxpayers slows on collapsed Finance Bill
The Kenya Revenue Authority (KRA) expects a slower growth in the number of new taxpayers it targets to recruit in the current financial year ending June 2025 after its strategy was derailed by the collapse of the Finance Bill, 2024.

▪ KPLC to renew contract with the most expensive power plant in Muhoroni
Kenya Power will sign a fresh Power Purchase Agreement (PPA) with Muhoroni Gas Turbine-owned by KenGen and the most expensive thermal plant in the country to shore up power supply to western Kenya.

▪ Kenya's private sector activity recovers, cash circulation woes persist
Kenya's private sector activity edged up slightly in October on the uptick in demand for goods and services, prompting firms to grow their workforce for the first time in three months.

▪ Kenya, IMF mull options as loan plan nears expiry
Kenya and the International Monetary Fund (IMF) are set to weigh options available to them as its existing multi-year programme nears its April 2025 expiry date.

_Courtesy: Business Daily_

📊 Current situation:

1. Stocks are falling like the economy is bracing for a recession

2. Oil prices are rising like the recession was cancelled

3. Gold prices are falling like inflation is gone

4. Bonds are falling like inflation has rebounded

5. Interest rates are rising like the "Fed pivot" is over

Today’s News Highlights

▪ Unit trusts sell bonds to buy stocks as interest rates drop
Collective investment schemes (CIS) or unit trusts have sold part of their bond holdings to invest in Nairobi Securities Exchange- listed stocks amid a decline in returns from government securities, including Treasury bills and bonds.

▪ Foreign investor count falls further amid market rally
The number of foreign investors at the Nairobi Securities Exchange (NSE) has dropped further, against a domestic market rally which has lifted the market by nearly 30 percent so far this year.

▪ Carbacid posts 3.3 percent profit rise as costs swell
Carbacid Investments has reported a 3.3 percent growth in net profit for the year ended July 2024 to Sh843.2 million, helped by higher demand for carbon dioxide in regional markets.

▪ StanChart in bid to double investment in wealth unit
Standard Chartered Bank said it will double investment in its wealth unit while paring back retail banking, as it lifted performance targets and said it will go further in reshaping the bank to try and meet those goals.

▪ How Sh175bn roads bond caused rise in fuel prices
The Sh7 a litre added to the fuel levy in July will be used to pay off Kenya's inaugural Sh175 billion roads bond, underscoring the State's defiance amid the public uproar that greeted the sharp increase.

_Courtesy: Business Daily_

Today’s News Highlights

▪ Infrastructure bonds fetch premium in secondary market
Bond buyers in the secondary market at the Nairobi Securities Exchange (NSE) have raised their demand for a pair of high interest infrastructure bonds (IFBs) floated in the last 12 months, looking to lock in the attractive returns as interest rates on new issuances continue to fall.

▪ HF Group stock falls 7.5pc on rights issue pricing in first trading session
HF Group's share price fell by 7.5 percent to Sh4.18 yesterday in the first trading session after the lender announced that its upcoming rights issue will be priced at Sh4 per unit when it opens in two weeks' time.

▪ Treasury reveals funding of counties over 11 years
Eleven counties have spent more than Sh100 billion each since the onset of devolution, a new statement shedding light on biggest beneficiaries of the devolved governance system shows.

▪ KRA starts integrating tax system with banks, telcos
The Kenya Revenue Authority (KRA) has started integrating its system with banks, money remittance firms and payment service providers like M-Pesa in fresh efforts to weed out tax evaders and boost revenue by billions of shillings.

▪ Absa, Equity, Co- op, DTB, Sidian, KCB to handle SHIF contributions
The Social Health Authority (SHA) has designated six banks including KCB, Sidian Bank, Co-operative Bank, Equity Bank, Abasa Bank, and Diamond Trust Bank as the official collection accounts for employer contributions.

_Courtesy: Business Daily_

How to Get a Safaricom eSIM Without Visiting a Physical Store

https://tech-ish.com/2024/10/28/how-to-get-a-safaricom-esim/

Today’s News Highlights

▪ Kenya eyes Sh113bn mega IMF loan disbursement
Kenya expects to receive Sh113 billion in the next tranche of loans from the International Monetary Fund (IMF) following a breakthrough in protracted talks that delayed funding from the multilateral lender after the rejection of new tax measures in June this year.

▪ State slashes domestic borrowing target to five-year low on UAE cash
Kenya now plans to cut domestic borrowing for 2024/25 by 5.9 percent to Sh388.37 billion, pushing it to the lowest point in five years as it looks to push interest rates downwards and stimulate private sector activity.

▪ CBK support to banks hits Sh5trn on cash crunch
Commercial banks have deepened their dependence on the Central Bank of Kenya (CBK) for liquidity support, pushing their cumulative drawdowns through reverse repurchase agreements (repos) this year to Sh5 trillion and signalling skewed cash distribution in the sector.

▪ Treasury sends Sh32.8 billion to counties after clearing legal hitch
The Treasury wired Sh32.8 billion to counties in September, marking the first disbursement to the devolved units in the new financial year after clearing a legal hurdle that had frozen the release of funds.

▪ Analysts see more drops in base interest rates amid pressure
Analysts see the Central Bank of Kenya (CBK) lowering base interest rates by at least 25 basis points before the end of the year on subdued inflation prices and the need to spur economic activity.

_Courtesy: Business Daily_

*Dear blessed Members, Greetings!*

Over the past 12 years; we have been together in various WA Groups that started with MTE, then Msa Expose and now we shall be renaming again as Madafu Newspaper under the same flagship. We shall continue updating you relentlessly with latest, accurate and timely information via various Groups under *Madafu Newspaper!*

1. *Madafu News* - for general, security and national updates. (Mombasa Expose renames as Madafu News) https://chat.whatsapp.com/COl8xeG31FULre6wdVZcM1
2. *Madafu Eateries* - for anything and everything in foodstuff's https://chat.whatsapp.com/HNBgEgOeuJX3paH7WC1ASn
3. *Madafu Deals* - for general trade merchandise from a pin to a car. https://chat.whatsapp.com/CQkkoIei0OYIVg27ZmxHWb
4. *Madafu Jobs / Vacancies* - for job openings and seeking with employers and employees together in the group. https://chat.whatsapp.com/LU7hOqVDaPm7UBICILwvUh

We have many more Groups on the way so keep posted and benefit from them. All these patriotic services are *free of cost!*

Engage the Group Admins for any query; *Share the Group Links* with your Friends, Family and Business Networks!

God bless and thank you!

𝟮𝟭 𝗙𝗮𝘀𝗰𝗶𝗻𝗮𝘁𝗶𝗻𝗴 𝗔𝘂𝘀𝘁𝗿𝗮𝗹𝗶𝗮 𝗙𝗮𝗰𝘁𝘀

𝟭. Most Aussies (90%) live by the coast.
𝟮. The Indian Pacific train has the world’s longest straight track.
𝟯. Australia has over 60 wine regions.
𝟰. The Great Barrier Reef is huge and can be seen from space.
𝟱. The Great Ocean Road is a war memorial.
𝟲. The Australian Alps get more snow than the Swiss Alps.
𝟳. Fraser Island is the biggest sand island in the world.
𝟴. 80% of Aussie animals are found nowhere else.
𝟵. The world’s longest golf course (1,350 km) is in Australia.
𝟭𝟬. There are 10,685 beaches—one a day for 29 years!
𝟭𝟭. Australia has 21 of the world’s 25 most venomous snakes.
𝟭𝟮. It’s the world’s sixth largest country.
𝟭𝟯. Tasmania has the cleanest air in the world.
𝟭𝟰. Australia has no active volcanoes.
𝟭𝟱. The Dingo Fence is 5,614 km long.
𝟭𝟲. One-third of Australians were born overseas.
𝟭𝟳. The Aussie dollar is waterproof and hard to fake.
𝟭𝟴. Australia is the only country on its continent.
𝟭𝟵. There are over 1,500 species of spiders here.
𝟮𝟬. 91% of the land is covered in native plants.
𝟮𝟭. The world’s oldest fossil, 3.4 billion years old, was found in Australia.

SPEAKER WETANG'ULA: DEPUTY PRESIDENT NOMINATION REQUIRES NATIONAL ASSEMBLY VOTE, NOT APPROVAL

Parliament Buildings, Nairobi
Friday, October 18, 2024

National Assembly Speaker, Rt. Hon. (Dr.) Moses Wetang'ula, clarified to the House that the nomination of Interior and National Administration Cabinet Secretary, Prof. Kithure Kindiki, for the position of Deputy President will not follow the procedure outlined in the Public Appointments Parliamentary Approval Act.

In guiding the House on the nomination process, Speaker Wetang'ula referred to Article 149(1) of the Constitution, which stipulates that when a vacancy arises in the Office of the Deputy President, the President must nominate a candidate within fourteen days.

The National Assembly is then required to vote on the nomination within sixty days of receiving it.

“From a reading of Article 149(1), it is clear that the National Assembly is required to vote on the nomination within 60 days. Notably, the Constitution's drafters intentionally distinguished the language in this article, specifically requiring a vote, not an approval, on the nomination,” Speaker Wetang'ula explained.

He contrasted this with Article 132(4) of the Constitution, which requires the National Assembly's approval for the President's nominations for positions such as Cabinet Secretaries, the Attorney General, the Secretary to the Cabinet, Principal Secretaries, and diplomatic representatives.

For these roles, parliamentary approval is mandatory before formal appointments can be made by the President.

However, for the Deputy President's position, Speaker Wetang'ula emphasized that the Constitution explicitly calls for a vote, not an approval process.

“The Public Appointments Parliamentary Approval Act applies only where the Constitution or another law requires House approval for an appointment. Since Article 149(1) mandates a vote on the Deputy President's nomination, the approval process under the Public Appointments Parliamentary Approval Act does not apply,” he clarified.

𝙃𝙚𝙧𝙚 𝙖𝙧𝙚 𝙨𝙤𝙢𝙚 𝙩𝙞𝙥𝙨 𝙛𝙤𝙧 𝙨𝙖𝙫𝙞𝙣𝙜 𝙤𝙣 𝙖𝙞𝙧 𝙘𝙤𝙣𝙙𝙞𝙩𝙞𝙤𝙣𝙞𝙣𝙜 𝙚𝙡𝙚𝙘𝙩𝙧𝙞𝙘𝙞𝙩𝙮 𝙘𝙤𝙨𝙩𝙨:
To save on electricity, I set my air conditioner to dehumidification mode (DRY mode), keeping the room's humidity between 50-60%.
On the remote control, I set the temperature to 26°C, but the actual room temperature is 24.3°C, with a humidity of 47%. Normally, my room's humidity is around 70%. In Malaysia, the ideal, fresh, and healthy humidity range is between 50-60%.
This means my air conditioner is working well and is suitable for the size of the room. The optimal sleeping temperature is 24°C or 25°C. Even if you set the remote control to 16°C, you might only reach about 19°C, but the compressor will keep running, leading to a spike in electricity costs.
To save energy, set the remote control to dehumidification mode (DRY mode, represented by a water droplet symbol instead of a snowflake) and set the temperature to 24°C or 25°C. If it still feels uncomfortable, you can first set the remote to 22°C in cooling mode (COOL mode), and then switch to dehumidification mode (DRY mode).
Dehumidification mode can save approximately 50% of electricity compared to cooling mode (COOL mode) because the compressor operates at a lower frequency.
For reference, the electricity cost per hour for an air conditioner is approximately:
- 1 HP (900 watts) - 20 sen per hour
- 1.5 HP (1.2 kW) - 30 sen per hour
- 2 HP (1.9 kW) - 40 sen per hour
- 2.5 HP (2 kW) - 50 sen per hour

Today’s News Highlights

▪ Kenya eyes Sh113bn mega IMF loan disbursement
Kenya expects to receive Sh113 billion in the next tranche of loans from the International Monetary Fund (IMF) following a breakthrough in protracted talks that delayed funding from the multilateral lender after the rejection of new tax measures in June this year.

▪ State slashes domestic borrowing target to five-year low on UAE cash
Kenya now plans to cut domestic borrowing for 2024/25 by 5.9 percent to Sh388.37 billion, pushing it to the lowest point in five years as it looks to push interest rates downwards and stimulate private sector activity.

▪ CBK support to banks hits Sh5trn on cash crunch
Commercial banks have deepened their dependence on the Central Bank of Kenya (CBK) for liquidity support, pushing their cumulative drawdowns through reverse repurchase agreements (repos) this year to Sh5 trillion and signalling skewed cash distribution in the sector.

▪ Treasury sends Sh32.8 billion to counties after clearing legal hitch
The Treasury wired Sh32.8 billion to counties in September, marking the first disbursement to the devolved units in the new financial year after clearing a legal hurdle that had frozen the release of funds.

▪ Analysts see more drops in base interest rates amid pressure
Analysts see the Central Bank of Kenya (CBK) lowering base interest rates by at least 25 basis points before the end of the year on subdued inflation prices and the need to spur economic activity.

_Courtesy: Business Daily_

Today’s News Highlights

▪ CBK cuts main lending rate by biggest margin since Covid-19
The Central Bank of Kenya (CBK) has cut the benchmark interest rate by the largest margin since the start of Covid-19 economic hardships in March 2020, signalling relief to borrowers plagued by costly loans.

▪ Private sector loans collapse to interest rate cap-era lows
Loans to businesses and households collapsed in August to low levels registered in the interest-rate cap era seven years ago as high interest rates turned away borrowers.

▪ EA corporate deals dip 18pc on low Kenya activity
The number of reported corporate deals in East Africa dropped by nearly a fifth in the first seven months of the year compared to the corresponding period in 2023, largely due to reduced activity in Kenya.

▪ Cash in bank fixed deposit accounts hits Sh2trn
The amount of money in savings held in fixed deposit accounts crossed the Sh2 trillion mark for the first time in July, underlining the impact of a scramble by savers lured by high interest rate offers by commercial banks.

▪ Investors seen seeking higher returns in October T-bond sale
Investors face a race to lock in higher interest returns in the October Treasury bond sale which closes today, with rates expected to come down in subsequent offers after the Central Bank of Kenya (CBK) further cut its indicative lending rate by 75 basis points to 12 percent on Tuesday.

_Courtesy: Business Daily_