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Nairobi Metropolitan Serviced Apartments 2020

Dec 6, 2020

In 2019, we published the Nairobi Metropolitan Area Serviced Apartments Report 2019, which highlighted that serviced apartments within the NMA recorded an average rental yield of 7.6%, 0.2% points higher than the 7.4% recorded in 2018, and this was attributed to a 2.3% increase in monthly charges per SQM, from Kshs 2,742 in 2018 to Kshs 2,806 in 2019, fuelled by the continued demand for serviced apartments by both guests on business and leisure travels. The improved performance was overally supported by the stable political environment and improved security, thus making Nairobi an ideal destination for both business and holiday travellers. This year, we update our report findings on the same by focusing on:


Dec 2, 2020

1. FUND PERFOMANCE * 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. 2. FUND MANAGER’S 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 wi...

Understanding Exchange Rate Regimes and the performance of the Kenyan Shilling

Nov 29, 2020

Following the continued depreciation of the Kenya Shilling against the US Dollar and various sentiments being raised in the recent past with regards to currency manipulation, we decided to do a note to demystify the various currency regimes, the mechanisms under which they operate, and how countries use them to ensure currency stability. We shall also focus on the various techniques used to estimate the value of a currency and the factors that have been driving the downward performance of the Kenya shilling. In our focus on Currency and Interest Rates, where we looked at the factors that were expected to affect the performance of the Kenyan shilling against the US Dollar. We expected the currency and the interest rates to remain under pressure with the currency depreciation to continue. This mainly because of the predicted reduction in export inflows as som...

Cytonn Note on the Monetary Policy Committee (MPC) Meeting for November 2020

Nov 23, 2020

The Monetary Policy Committee (MPC) is set to meet on Thursday, 26th November 2020, 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 29th September 2020, the committee decided to reconvene in November 2020, while highlighting that they would remain ready to reconvene earlier if necessary, as they continue to closely monitor the impact of the policy measures have had so far. Additionally, the MPC maintained the CBR at 7.00% citing that the accommodative policy stance adopted in March, April and May 2020 sittings, 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:

Kenya Retail Sector Report 2020

Nov 22, 2020

According to the Kenya  Retail Sector Report – 2019 themed  “Increased Market Activity to promote Retail Growth”, released in October 2019, the retail sector’s performance in key urban cities softened, recording average rental yields of 7.0% in 2019, 1.6% points lower than the 8.6% recorded in 2018, attributed to a reduction in rental rates and  surplus retail space coupled with stiff competition among malls. This week, we update those findings with the Kenya Retail Sector Report – 2020 themed “E-commerce Shaping the Retail Sector”. We conducted research in 8 nodes within the Nairobi Metropolitan Area, as well as key urban cities and regions in Kenya, including North Rift, Coastal Region, Western/Nyanza, and Mt. Kenya, and made findings based on rental yields, occupancy rates, as well as demand and supply in...