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Recent Topicals

Global Markets Review

Apr 3, 2022

Global Economic Growth: The world economy is projected to register a slower growth in 2022 than earlier envisaged, with the International Monetary Fund (IMF) projecting a 4.4% growth in 2022 down from the initial projection of a 4.9% growth. The downward revision is mainly attributable to: Inflationary pressures around the globe and more so in developed economies that has resulted in hiking of interest rates to tame inflation and rolling back of stimulus packages, Supply chain constraints that were in existence due to the COVID-19 pandemic have been worsened by the Russia-Ukraine conflict. As a result, prices of key manufacturing inputs for majority of the economies such as energy have increased, exerting higher inflationary pressures and currency depreciation as demand for dollars g...

Nairobi Metropolitan Area Commercial Office Report 2022

Mar 27, 2022

In 2021, we published the Nairobi Metropolitan Area Commercial Office Report 2021 themed “Market under Pandemic, in which we highlighted the performance of the sector in 2020, as well as giving insights on the outlook and areas best fit for investment opportunities. According to the report, the sector’s performance softened in 2020 recording a 0.5% points decline in average rental yields to 7.0% in 2020, from 7.5% in 2019. Occupancy rates declined as well by 2.6% points to 77.7% in 2020, from 80.3% realized in 2019. Also, asking rents and prices declined by 3.0% and 2.8% respectively to an average of Kshs 93 and Kshs 12,280 per SQFT in 2020, from Kshs 96 and Kshs 12,638 per SQFT in 2019. The drop in performance was mainly attributed to a challenging financial environment that led to reduced spending patterns, coupled with...

Kenya Mortgage Refinance Company (KMRC) Progress

Mar 20, 2022

Housing Pillar of the Government of Kenya’s Big 4 Agenda. It was incorporated in April 2018 as a non- deposit taking financial institution under the supervision of the Central Bank of Kenya with the single purpose of providing long-term funds to primary mortgage lenders (Banks, Micro Finance Banks and SACCOs) in order to increase the availability and affordability of mortgage loans to Kenyans.  The company was licensed by the Central Bank of Kenya (CBK) in August 2018 and began operations in September 2020. We have previously covered four topicals on KMRC namely; Kenya Mortgage Refinance Company, in April 2018 where we introduced KMRC as a mortgage liquidity facility and demystified th...

Kenya Retirement Benefits Schemes FY’2021 Performance

Mar 13, 2022

According to the ACTSERV 2021 Retirement Benefits Schemes Investments Performance Survey, segregated retirement benefits schemes recorded an 11.6% return in 2021, up from the 7.0% recorded in 2020. The increase was largely supported by the performance of equities investments made by the schemes which recorded a 16.9% gain, up from a 10.4% decline recorded in 2020 on the back of the gradual economic recovery.  Additionally, the retirement benefits schemes’ Assets under Management increased by 11.8% to Kshs 1.5 tn in June 2021, from Kshs 1.3 tn in June 2020. On a q/q basis, the AUM grew by 5.7% from Kshs 1.4 tn recorded in December 2020. The growth of the assets can be attributed to the economic recovery that saw people resume contribution to the retirement benefits schemes.  Despite the continued growth, the Kenya...

Student Housing in the Nairobi Metropolitan Area

Feb 27, 2022

In 2020, we released a topical named ‘Student Housing Market in Kenya’ where we explained the concept of student housing, surveyed the market and gave recommendations on investment opportunity in the asset class. Student housing or purpose-built student accommodation (PBSA), refers to housing that has been designed specifically to meet the demands and requirements of the modern-day student. Most student housing facilities range from studios to flats with a cluster of up to eight rooms sharing living quarters. It also comprises of shared social spaces which provide amenities such as cable TV, laundry facilities and even organized social events, with others also offering gym facilities. Most of these facilities and amenities are positioned in central locations and with all-inclusive r...