Profit Warnings

Friday, 15th January

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Profits and Dividends

Expect some lower dividends as 6 of the 11 banks listed at the Nairobi Securities Exchange (NSE) have issued profit warnings, meaning that they expect their earnings to fall by more than a quarter. On the other hand, insurers are having a good time with many avoiding going to the hospitals.

Many people avoided going to hospitals for fear of contracting Covid-19. There was highly reduced traffic to hospitals and even those seeking elective surgeries were also postponing. People were also working from home and therefore for simple ailments which could otherwise drive heavy traffic to hospitals, people avoided

— Association of Kenya Insurers (AKI) CEO Tom Gichuhi

A Moody outlook

Moody’s maintained a negative outlook for Sub-Saharan markets. The debt burdens and the corona pandemic are dimming the prospects of the continent for now.

Most Sub-Saharan African governments’ debt burdens will stabilise at materially higher levels in 2021, with the average debt burden for the region at around 64% of GDP in the near to medium term

Moody’s VP Senior Credit Officer Kelvin Dalrymple

Soaring Safaricom Shares

Safaricom share price rose to an all-time high [Business Today]

Soaring Fuel Prices

Fuel prices are set to go even higher this week [Business Today]

Generous Diasporans

Remittances were up in the 11 months of 2020 were up 10%, hitting a record-high $2.8 billion versus $2.55 billion in the same period in 2019. Seems like our people in the diaspora are doing their part in supporting the local economy. Not everyone is contributing the same. North American remittances were up 28% while those from Europe fell by 22% to $477 million. Here’s to hoping for more remittances.

See you on Monday for more.

[Sources: Kenyan Wall Street, Business Daily, Business Today]