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Recent Topicals

Kenya Listed Banks H1’2018 Report

Sep 23, 2018

Following the release of the H1’2018 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 FY’2017 Banking Report. In our H1’2018 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 perspective. The report is themed “Growth and Efficiency aided by Technology, amid deteriorating Asset Quality”as we assess the key factors that influenced the improved performance of the banking sector during the period under review, and also areas that will be crucial for growth of banks going forward. As a result, we seek to answer the questions, (i) “what influenced the ba...

The IMF Precautionary Credit Facility 2018

Sep 16, 2018

Recently, the International Monetary Fund (IMF) concluded their review under a precautionary Stand-By Arrangement (SBA), which was extended to Kenya on 14th March 2016. The SBA is a lending arrangement extended by the IMF to member countries in emerging markets in need of financial assistance in case of occurrence of exogenous shocks such as drought, increase in global oil prices or changes in international financial markets. Previously, we had highlighted the IMF’s various forms of lending and the reasons why Kenya may benefit from the IMF standby facility (for more information, see our focus on Kenya’s IMF Standby Facility), while in this focus we shall highlight on the possible economic implications of missing out on the IMF’s precautionary credit facility.  In a press statement after the visit, the IMF stated that their mission to assess the Kenyan ec...

Mombasa Real Estate Investment Opportunity August 2018

Sep 9, 2018

In line with Cytonn’s expansion strategy, we continue to carry out market analysis for various regions in Kenya and Sub Saharan Africa in order to identify lucrative investment opportunities for our investors. In 2018, we have released the Nyeri Real Estate Investment Opportunity 2017, Kisumu Real Estate Investment Opportunity , and the Nakuru Real Estate Investment Opportunity topicals in  January, July and August, respectively, In 2017, we released the Kampala Real Estate Investment Opportunity and the Ac...

Cytonn’s Kenya Real Estate Sector Retail Report 2018

Sep 1, 2018

In October 2017, we released the Kenya Retail Sector Report - 2017, themed “Cautious Optimism in the Face of Turbulence”, which focused on the performance of the retail real estate sector in Kenya in 2017. According to the report, the retail sector in Kenya was an attractive investment opportunity with average rental yields of 8.3% countrywide and 9.6% in Nairobi compared to other sectors such as the residential sector at 5.6% and office sector at 9.1%, driven by a growing middle-class population seeking aspirational lifestyles, high GDP growth rate, which averaged at more than 5.0% p.a over the previous five-years, and increased infrastructural developments opening up new areas for development. This week, we update that report with our Kenya Retail Sector Report - 2018. The report is based on findings from research conducted in 8 nodes in the Nairobi Metropo...

Status of Rate Cap Review in Finance Bill, 2018

Aug 26, 2018

This week we revisit the interest rate cap topic following the proposed amendments to the Finance Bill, 2018, tabled by the Parliamentary Committee on Finance and Planning in the National Assembly during its second reading. According to the chair of the committee, the proposed amendments were based on deliberations of the committee and the comments received during public awareness and stakeholder participation forums conducted between 1st – 3rd August 2018, following the first reading of the Finance Bill, 2018 on 3rd July 2018. The Finance Bill, 2018, during its first reading, proposed the repeal of section 33B of the Banking Act, which would result in the elimination of the Central Bank’s powers to enforce an interest rate cap in banks and other financial institutions.  However, based on the committee’s deliberations and input from the public, the committee is now of the view that, (i) the upper limit on interest rate cha...