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Mobile Payments

Feb 7, 2021

With the emergence of COVID-19, measures to reduce the spread of the virus such as: social distancing, working from home and minimizing physical touch, have been put in place by most governments and consequently, this has led to the adoption of cashless payment systems.  According to the Central Bank of Kenya (CBK), since March 2020, the country has witnessed a rapid increase in mobile and digital payments with the monthly volume of Person-to-person transactions increasing by 87.0% to hit Kshs 684.5 bn. On 28th December 2020, CBK circulated the draft Kenya National Payment System Vision and Strategy 2021-2025, a strategy document which sets out the vision and strategic initiatives for the National Payment System for the next five years (2021-2025) for comments from the public up to 29th January 2021. This move by the Central Bank is aimed at beefing up re...

Property Regulations in Kenya

Jan 24, 2021

Introduction Overview of the Land Sector in Kenya Land plays a significant role in the socio-economic and political development of the country. Therefore, its ownership, allocation, distribution and utilization is of great concern to most Kenyans thus making it one of the contentious issues that requires a lasting solution in effective legal and institutional framework. Land is either public, private or community land, with ownership being either on a freehold tenure which gives the holder absolute ownership of the land for life, or leasehold tenure in which the interest in land for a specific period is subject to payment of a fee, rate or rent to the grantor. The National Land Policy in Kenya recommends leases of not more than 99 years with a possibility of extension when the lessee applies for an extension of term before the...

Cytonn Note on the 27th January 2021 Monetary Policy Committee (MPC) Meeting

Jan 20, 2021

The Monetary Policy Committee (MPC) is set to meet on Wednesday, 27th January 2021, to review the outcome of its previous policy decisions and recent economic developments, and to decide on the direction of the Central Bank Rate (CBR). In their previous meeting held on 26th November 2020, the committee decided to reconvene in January 2021, while highlighting that they would remain ready to reconvene earlier if necessary, as they continue to closely monitor the impact of the policy measures. Additionally, the MPC maintained the CBR at 7.0% citing that the accommodative policy stance adopted in March, and all the other sittings in 2020, which saw a cumulative 125 bps cut, was having the intended effects on the economy. This was in line with our expectations as per our MPC Note with our view having being informed by: Inflation has remained with the bank’s target of 2.5% -7.5% on account of the stable food...

CMMF Factsheet December 2020

Jan 19, 2021

FUND PERFORMANCE 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 conservatively with active management of duration, credit and liquidity risks. Economic Report and Outlook According to Kenya National Bureau...

The Role of Kenya’s Capital Markets on Economic Growth

Jan 10, 2021

Business owners can fund their business through various means but they fall mainly into two main brackets i.e. equities or debt. There is occasional structuring that is done to get some in between the two forms of capital sources to enhance the attractiveness to potential investors. Globally, capital markets play a key role in ensuring that businesses get the requisite funding and that owners of Capital are well protected and get the return that is required. Most of the investments in the Capital Markets are long term in nature and it is therefore important that all the players actually understand the products that are offered in the markets before either issuing them to raise funds and also before buying into them. For instance, with the pandemic, there was a lot of volatility in most markets with the Kenyan equities market for example declining by 8.6% last year.  Despite the volatility, it is important to note that capital markets continue to play a key role in econo...