Welcome to the first issue of The Weekly Brief, by The Kenyan WallStreet, a new newsletter that goes out every Monday morning at 9 am (EAT).

The first week of November is here, and as companies across the globe prepare for the tail end of Q4, economic recovery is still not in sight. The government says it’s worried about the rate at which companies are failing, and the solutions may yet take time. Then there’s the worsening Israel-Palestine conflict that presents real risks for Kenya’s own security and the economy, but there are some glimmers of hope.

Dive in!

Kenya Goes to G7

Last week, Kenya’s Cabinet Secretary Rebecca Miano was invited to the G7 Trade Ministers Meeting in Japan. CS Miano was invited by Japan for the G7 Trade Ministers Meeting aimed at promoting open trade and resilient supply chains, because of Kenya’s strong position on free trade and its membership to the Ottawa Group.

Kenya and the host, Japan, also held a bilateral meeting where CS Miano and H.E Yasutoshi Nishimura, Japan’s Minister Ministry of Economy, Trade and Industry, signed to Initiate Industrial Policy Dialogue (IPD). In a statement, the two said that the IPD is meant to “will indicate the direction of industrial collaboration that will contribute to strengthening economic relation between Kenya and Japan and provide for identifying and discussing cooperation areas that may become points of discussion in the future”

“Kenya aims to scale up local content production, particularly in the automotive industry, where 34 parts are currently considered for local production.” a statement from the CS’s office said.

Kenya main exports to Japan include titanium ores and concentrates, coffee, flowers, tea, and waste and scrap copper. In turn, Japan exports mainly cars and flat-rolled products of iron or non-alloy steel. “We will reason with and support businesses. We shall be keen and willing to support progression of your good business ideas,” CS Miano said at a roundtable with Japanese businesspersons.

Headlines To Start Your Week

• The Kenyan government is alarmed at the rate at which companies are failing and is exploring policy interventions to, among other things, harmonise tax regimes, a senior government official said.

• The ongoing escalation in the Israel-Palestine conflict has already led to thousands of deaths on both sides, and is threatening to upend not just global security, but also economic recovery. This is why it matters.

• Carbon credits have become all the rage but who even knows what they are? “Every unit of carbon avoided or removed generates demand and can be sold like any other commodity in an open market,” Dr. Yvonne Maingey writes in this first part of a series on this key subject.

In Listed Companies Last Week

• Listed brewer EABL has appointed a new Company Secretary to replace Kathryne Maundu, who resigned from the same position in four listed companies within the last few weeks.

• Nation Media Group (NMG) issued a profit warning of at least 25 percent. The media house posted a significant decline in net earnings to KSh 2.9 Million at the end of the half year period ended 30th June 2023.

• KenGen profit after tax for the year ended June 30, 2023 is up 48 percent, and its revenues are up 14 percent.

• NewGold Issuer (RF) Limited, a South African firm listed at the Nairobi Securities Exchange (NSE), recorded a net profit of US$1.5 Million for the half-year period ended September 2023.

MarketForce Exits Three Markets

B2B e-commerce platform Marketforce has downscaled operations in three of its five markets and is currently exploring other business models.

The five year old startup was previously present in Kenya, Nigeria, Uganda, Tanzania and Rwanda. It had also planned to expand to Ethiopia and Ghana through a partnership with Cellulant. Its flagship product, RejaReja, is now only available in Uganda, but the company will still be headquartered in Kenya.

“Marketforce has downscaled operations in other markets and is now just operational in Kenya and Uganda,” CEO and co-Founder Tesh Mbaabu told The Kenyan WallStreet on Friday.

Since it was established in 2018 by Tesh Mbaabu and Mesongo Sibuti, Marketforce grew fast on the back of venture capital funding attracted to its asset-light business model. The company raised US $40 million in Series A funding in February 2022; two months ago, the company launched a community fundraising round aimed at raising US$ 1 million.

Mbaabu says that Marketforce is “exploring other high margin opportunities in adjacent verticals, such as social commerce.”

Upcoming Events

• Africa Fintech Summit: Lusaka, Zambia November 2-3

• The Inaugural Supply Chain Disruption week: Nairobi, November 6-8

• Libya Energy & Economic Summit: Tripoli, November 8-9

• Annual Tax Conference: Nairobi, November 23-24

Interview of the Week

Have a great week!

Advertise with Us

Reach out to us [email protected] to learn more.