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Recent Topicals

Kenya Listed Banks Q1’2021 Report

Jun 13, 2021

Following the release of the Q1’2021 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 recorded a weighted increase of 28.4% in Q1’2021, compared to a weighted decline of 7.3% recorded in Q1’2020. The increase in earnings was mainly attributable to the growth in Net Interest Income, which grew by 17.5% in Q1’2021, compared to a growth of 7.4% in Q1’2020, for the listed banking sector. Additionally, interest income grew by 14.7%, compared to a growth of 8.2% recorded in Q1’2020, attributable to the increased allocation to higher yielding government securities during the quarter. Investments in government securities grew by 20.3%, faster than the 11.0% loan growth recorded during the period. Consequently, the Yield on Interest Earning Assets (YIEA) i...

CMMF Fact Sheet May 2021

May 31, 2021

FUND PERFORMANCE *Percentage you can expect to earn with the fund during one year of investment on basis of the so far realized monthly returns since inception. FUND MANAGERS REPORT AND OUTLOOK Fund Objective The Cytonn Money Market Fund is a low-risk fund that seeks to obtain a high level of current income while protecting investor’s capital and liquidity. Portfolio Strategy The portfolio objective will be to outperform the income yield available on money market call accounts and fixed deposit accounts by investing in interest-bearing securities and other short-term money market instruments. These securities are usually available to the wholesale or institutional clients. The Fund will also be managed conservativ...

Kenya Listed Insurance FY’2020 Report

May 30, 2021

Following the release of the FY’2020 results by Kenyan insurance firms, the Cytonn Financial Services Research Team undertook an analysis on the financial performance of the listed insurance companies and the key factors that drove the performance of the sector. In this report, we assess the main trends in the sector, and areas that will be crucial for growth and stability going forward, seeking to give a view on which insurance firms are the most attractive and stable for investment. As a result, we shall address the following: Insurance Penetration in Kenya Key Themes that Shaped the Insurance Sector in FY’2020, Industry Highlights and Challenges, Performance of The Listed Insurance Sector in FY’2020, and, Conclusion & Outlook of the Insurance Sector. Section I:  Introduction Insurance uptake in Kenya remains low compared...

Currency and Interest Rates Outlook

May 23, 2021

In March 2021, Kenya saw its sovereign rating downgraded by all the major rating agencies;  Standard & Poor’s , Fitch Rating and Moody’s. The lowering of the credit rating was mainly on the back of Kenya’s high fiscal deficit coupled with the economic shocks occasioned by the challenges brought about from the impact of the COVID-19 pandemic.  With the downgrading and the constant increase in the fiscal deficit we have seen some pressure on the local bonds yield curve which has resulted to 1.4% decline in the FTSE NSE Bond Index. Despite the challenges that have been facing the economy the shilling has held stable this year having appreciated by 0.5% YTD following a 7.7% depreciation...

Public Private Partnerships (PPPs) in the Real Estate Industry in Kenya

May 16, 2021

Kenya’s Vision 2030 Agenda seeks to make the country an industrialized middle income economy by 2030. The government and the private sector have therefore been working on providing the right environment for implementation of Public Private Partnerships (PPPs) since 1996, to deliver projects in sectors such as infrastructure, housing and student hostels, health care facilities, and agriculture. Additionally, there has been some effort in establishing sound legal and regulatory framework to promote and encourage PPPs. This week, we shall therefore cover PPPs in the real estate sector in Kenya with the aim of giving recommendations on what can be done to make them more efficient, and therefore accelerate the government Big Four Housing Agenda. The report will cover the following: Overview of Public-Private Partnership...