Pain at the Pump
Kenyan fuel prices hit decade high
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This week, we cover the increased fuel prices in Kenya. We also take a look at Kenya Power and Longhorn Publishers.
Pain at the Pump
Record highs: In its September 2021 review, EPRA raised the prices of petrol, diesel, and kerosene in Nairobi by Ksh 7.58, Ksh 7.94, & Ksh 12.97 per litre. The maximum pump prices are now set at Ksh 134.72, Ksh 115.60, & Ksh 110.82 respectively- the highest in Kenya’s history. These new rates will be effective for the month to 14th October 2021.
Subsidy: EPRA removed subsidies of Ksh 7.10 on petrol, Ksh 9.90 on diesel, and Ksh 11.36 on kerosene.
Supplier margins are up: Super petrol now at Ksh 12.39 (from Ksh 5.29). Diesel now at Ksh 12.36 (from Ksh 2.47). Kerosene now at Ksh 12.36 (from Ksh 1.0). Margins were cut in April and August prices.
Looking ahead: New taxes in the form of higher excise duty rates from October 1st 2021 will push fuel prices to further highs. KRA had announced plans to increase the excise duty rate for the commodity by 4.97%.
Back to Profitability
Kenya Power:
According to the Chief Administrative Secretary (CAS) in the Ministry of Energy, the troubled utility firm will post a profit for the year ended June 2021. Publication of the results is expected next month:
“We are going to make a profit and the turnaround results can now be seen. We hope this performance can be sustained.. The losses are now starting to go down after breaching the 19% level. Debt collection is now improving with the support of the government and Ministry of Energy”Ministry of Energy CAS Zachary Ayieko
Last financial year: KPLC booked a loss of Ksh 939m, its first loss in over 14 years.
Board wrangles: Staff of KPLC this week threatened to go on strike calling for the resignation of four directors including chairperson Vivienne Yeda and directors-Elizabeth Rogo, Caroline Kittony, and Sachen Gudka.
Longhorn Publishers:
The book publisher reported Ksh 6.2m in total comprehensive income for the FY ended June 2021, an improvement from a Ksh 227.9m loss reported in the previous period.
Other highlights:
Total revenue up 16%
Gross profit up 2% to Ksh 497m
Operating expenses down 53%
Finance costs up 21%
No interim dividend
Full results here
Markets this Week
In East Africa, Kenya recorded a 1.45% rise in the Nairobi Securities Exchange All Share Index, closing the week at 182.75, up from last week’s 180.14. Tanzania’s DSE ASI was down 0.03% to close at 1,989.64 from last week’s 1,974.65, while Uganda’s USE ASI recorded a 1.37% rise to close at 1,531.52.
Across Africa: Zimbabwe’s ZSE ASI recorded the highest increase in returns this week, up 1.63% to close at 6,850.41.
What Else Happened This Week?
Hard hit hospitality industry in Kenya: Owners of the InterContinental Hotel put hotel property up for auction [Business Daily].
Aviation updates in Kenya : KLM is set to start Amsterdam-Mombasa flights in November [Business Daily] while Kenya Airways resumed its flights to Mumbai. KQ’s subsidiary Jambojet resumed flights to Lamu.
Oil exploration in Turkana: According to findings by British oil firm Tullow Oil, more than 80% of Kenya’s estimated 2.85 billion oil reserves cannot be tapped [The East African].
Changes at ICEA Lion: Philip Lopokoiyit takes over as CEO from Paul Muthaura who is stepping down for medical reasons.
UK red list: UK has removed Kenya from its red list to its amber list [The East African].
Tanzania ups its stake in Shelter Afrique: The East African country increased its shareholding in the pan African housing finance institution to 1.54% from 0.3%, paying $2.7m [Shelter Afrique].
Shoprite out, Carrefour in: Carrefour set to take over six Shoprite stores in Uganda. Shoprite is ending its operations in Uganda.
SBG Securities partners with BK Capital: SBG has relinquished its brokerage license in Rwanda to collaborate with BK Capital on execution of orders [Rwanda Stock Exchange].
SPACS in Zimbabwe? The country’s exchange is inviting comments on the first draft of Special Purpose Acquisition Company listing requirements [Zimbabwe Stock Exchange].
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