We research widely to deliver unique insights.

Recent Topicals

Kenya’s Attractiveness as an Investment Destination, & Cytonn Weekly #49/2018

Dec 23, 2018

Africa remains an attractive investment destination for investors seeking attractive, long-term returns for a number of reasons, including abundant natural resources, improving economic indicators, and a growing population leading to a rise in consumption. GDP growth in Africa is expected to average 3.1% in 2018, higher than the 2.4% growth expected in advanced economies, according to the IMF. With West Africa generally suffering from volatility in commodity prices, and Southern African Development Community (SADC) having low GDP growth (1.6% in 2017), East Africa, whose economy grew by 5.9% in 2017, has emerged as an important and vibrant investment region in Africa due to a relatively diversified economy that contributes to stable economic growth. In addition to its strategic location as a gateway to the East African Region, Kenya hosts the largest expatriate community in the continent, has the most diversified economy in East Africa, and leads in terms of technological innov...

Kenya Listed Banks Q3’2018 Report, & Cytonn Weekly #48/2018

Dec 16, 2018

Following the release of Q3’2018 results by Kenyan listed banks, the Cytonn Financial Services Research Team undertook an analysis on the Kenyan Banking Sector to point out any material changes from our H1’2018 Banking Report. In our Q3’2018 Banking Report, we analyze the results of the listed banks in order to determine which banks are the most attractive and stable for investment from a franchise value, and from a future growth opportunity (intrinsic value) perspective. The report is themed “Deteriorating Asset Quality Dampens on Growth”, as we assess the key factors that influenced the improved performance of the banking sector during the period under review, factors that are dampening growth, and also areas that will be crucial for growth of banks going forward. As a result, we seek to answer the questions, (i) &...

Nairobi Metropolitan Area Serviced Apartments Report 2018

Dec 9, 2018

Last year, we released the Nairobi Metropolitan Area Hospitality Report 2017, which covered the performance of hotels and serviced apartments during that year. According to the report, the hospitality sector was temporarily affected by political tension during the electioneering period, and thus serviced apartments recorded 9.8% points decline in occupancy to an average of 72.0% in 2017, compared to 81.8% in 2016. Given the conclusion of the elections, the improved political environment in 2018 and increased marketing efforts by the Kenyan Government, we have seen an 8.3% growth in international arrivals into the country during the first 8-months of the year, and this is expected to positively impact on the hospitality sector. This week we therefore update our report findings on serviced apartments by covering the following; Overview of the...

Kenya Economic Review 2018

Nov 25, 2018

The year 2018 is shaping up to be a year of stable economic growth, with the economy recovering from the effects of the previous year that slowed down economic growth, including prolonged drought and the protracted electioneering period. Kenya is one of the fastest growing economies in the Sub-Saharan Africa region, with GDP growth expected to average 5.5% in 2018, an increase from the 4.9% GDP growth recorded in 2017. By contrast, the International Monetary Fund (IMF) estimates the Sub Saharan African average economic growth to average 3.8% in 2018, from 3.1% in 2017.The table below highlights the GDP growth expectations from different bodies; Kenya 2018 Annual GDP Growth Outlook No. Organization

Nairobi Metropolitan Area Mixed-Use Developments (MUDs) Report 2018

Nov 18, 2018

Kenya’s real estate and construction market has grown over the last 8-years, with its contribution to GDP increasing from 12.6% in 2010 to 14.1% in 2017, as per statistics from Kenya National Bureau of Statistics (KNBS). The growth has been fuelled primarily by: Demand as a result of rapid population growth at 2.6% p.a compared to the global average growth rate of 1.2% as at 2017 according to the World Bank, High rate of urbanization at 4.4% p.a, compared to the global average of 2.1%, Infrastructural development in various parts of the country, which has opened up areas for development and improved the ease of doing business in the country, Entrance of multi-national firms such as Wrigley and Volkswagen & Swarovski, who demand institutional grade commercial and residential real estate, Relatively high real estate developer returns...