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The Draft CMA Investments Regulations 2021

Sep 19, 2021

The Cabinet Secretary for the National Treasury and Planning, through the Capital Markets Authority (CMA), published two draft regulations; the Capital Markets (Collective Investment Schemes) Regulations 2021 and the Capital Markets (Collective Investment Schemes) (Alternative Investment Funds) Regulations 2021. The draft regulations were published with the aim of seeking comments from the stakeholders and the general public by 24th September 2021. The proposed CIS regulations seek to update the current Collective Investment Scheme regulations given...

Kenya Listed Banks H1’2021 Report

Sep 12, 2021

Following the release of the H1’2021 results by Kenyan listed banks, the Cytonn Financial Services Research Team undertook an analysis on the financial performance of the listed banks and identified the key factors that shaped the performance of the sector. Core Earnings per Share (EPS) recorded a weighted increase of 136.0% in H1’2021, from a weighted decline of 33.6% recorded in H1’2020. The significant growth in earnings is attributable to reduced provisioning levels by the listed banks following the relatively stable business operating environment during the period. The performance in H1’2021 is however skewed by the strong performance from ABSA, KCB Group, and Equity Group, which recorded core EPS growths of 846.0%, 101.9% and 97.7%, respectively. The report is themed “Reduced Provisioning levels Spur Earnings Growth” where we assess the key factors that influenced the performance of the banking sector in H1&r...

Regulatory response to Real Estate Funds in Kenya during COVID-19

Aug 29, 2021

The Coronavirus pandemic (COVID-19), which began as a health crisis, morphed into a global economic crisis as a result of containment measures put in place worldwide to curb the spread of the virus, which brought the global economy to a standstill. According to the IMF World Economic Outlook, the global GDP is estimated to have contracted by 4.4% in 2020, from a growth of 1.6% recorded in 2019. Kenya’s economy was also not spared, with the GDP estimated to have contracted by 0.1% in 2020, from a growth of 5.4% recorded in 2019. As at December 2020, the Non-Performing Loans (NPL) ratio stood at 14.1%, an increase from the 12.7% recorded in 2019. This was mainly attributable to poor performance of businesses as a result of the COVID-19 pandemic in 2020 which affected their ability to service loans. The Nairobi All Share Index (NASI) also recorded a poor performance, declinin...

KCB Group-Plc-H1'2021-earnings-note

Aug 22, 2021

Below is a summary of KCB Group’s H1’2021 performance:  Balance Sheet Items

Equity Group H1'2021 Earnings Note

Aug 22, 2021

Below is a summary of Equity Group Holdings Plc H1’2021 performance:  Balance Sheet Items (Kshs bn)