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A Strained food chain...
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Kenya continues to play dice with its food security, relying heavily on the increasingly unpredictable rains. The result is a diminishing granary and the unending concern about the prices of our staple diets…
This and more stories in today's edition of our daily newsletter… I am Brian from The Kenyan Wall Street.
A STRAINED FOOD CHAIN : Why Meal Prices are Likely to Soar
Bags of Maize
Kenya is likely to face a food shortage following a significant decline in the production of key staples, especially maize. The crop's output fell by 6.1% in 2024 due to erratic rainfall, dropping from 47.6 million bags in 2023 to 44.7 million bags.
The inconsistent short rains have disrupted planting and growth cycles, reducing overall harvests. Prices have already begun to rise, with loose maize grain increasing by 5.8% and fortified flour by 6.5%, according to KNBS. This indicates growing scarcity in the market, as reduced supply meets rising demand.
Millet and potato production also dropped by 30% and 4.3%, respectively, deepening food security concerns. These crops serve as alternative staples, and their decline further limits options for households.
Although bean and sorghum yields rose slightly, they are not sufficient to fill the maize gap. Maize makes up a larger portion of the national diet, so increases in other crops offer only minimal relief. What is the government planning to do?
Today's Poll
Do you think Kenya is serious with its food security goals? |
Markets
SANLAM’S PRICE CHECK : When Optimism meets Reality
Sanlam Kenya PLC Chairman Dr John Simba left shares a light moment with the company’s Group CEO Dr Patrick Tumbo
Sanlam Kenya’s share price has dropped 43% to KSh 5.88, following an initial post-announcement rally to KSh 10.35. The decline reflects investor concern over the 77% dilution impact from the KSh 2.5 billion rights issue.
With 500 million new shares to be issued at KSh 5.00 each, the market is recalibrating Sanlam’s valuation ahead of the 12th May closure. Although Sanlam Allianz Africa is underwriting the offer, shareholder participation remains critical. Theoretical Ex-Rights Price (TERP) stands at KSh 5.20, underscoring the market correction. Final share allocation and listing of new shares are expected by early June. Read full article>>>>>
BIRR BITES BACK : Safaricom's Book Value Bleeds from FX losses
How FX losses affected Safaricom's Equity
🟢 Safaricom PLC has posted a net profit of KSh 69.8 billion and maintained a KSh 48.08 billion dividend, but its total equity fell by KSh 111.7B (–33.3%), from KSh 335.7B in FY2024 to KSh 224.0B in FY2025, the biggest drop in its history. The core Kenyan business showed healthy growth across key revenue streams:
Net income (Kenya only): KSh 95.5B (+12.7%)
Group Profit After Tax: KSh 45.76B
Profit Attributable to Shareholders: KSh 69.8B
M-PESA revenue: KSh 161.1B (+15.2%)
Mobile data revenue: KSh 72.9B (+15.2%)
NSE Gainers and Losers
Source : NSE
ACQUISITION : Kenya's Oldest Safari Tour Company Acquired…
An elephant at a National Park
Africa Travel Investments, a tourism investment firm backed by Africa’s richest man — Aliko Dangote — has acquired Kenya’s oldest tour company Pollman’s Tours and Safaris. Africa Travel received unconditional approval from the Competition Authority of Kenya (CAK) to purchase 100% of Pollman’s issued share capital. In February, private equity fund Alterra Capital, backed by Dangote and American billionaire Dave Rubenstein, invested in ARP Africa Travel Group, which operates Pollman’s. Read more »»»»»
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