Konza City's Silver Lining...

Kenya's #1 newsletter among business leaders & policy makers

May 29, 2025

I am Brian from The Kenyan Wall Street and these are our day's business stories:

Konza City's Silver Lining : Cloud Services

Konza Technopolis saw its revenue soar to KSh 252.4 million in 2024, driven primarily by a fourfold surge in cloud service earnings. While land lease and other income streams slumped, investor numbers and infrastructure milestones continued to rise, signaling growing confidence in the smart city’s digital future. With cloud utilization intensifying and land parcels swiftly diminishing, Konza is seemingly evolving from promise to platform. Read more »»»»»

Your Opinion

What type of investment do you trust most so far this year?

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Financial Analysis

Two more listed banks released their Q1 earnings today. Our financial analyst — Harry Njuguna — breaks down the numbers :

Equity Group Q1 

Equity Group CEO & MD, Dr. James Mwangi

Equity Group Holdings reported a 4% decline in Q1 2025 net profit to KSh 15.4 billion, weighed down by a 12% drop in non-funded income and South Sudan losses. Still, the Group showed underlying strength through improved interest income and reduced loan loss provisions.

🔸Total income stood at KSh 48.2 billion, down 4% from Q1 2024.

🔸Net interest income rose 3% to KSh 28.6 billion.

🔸Loan loss provisions dropped 44% to KSh 3.4 billion.

🔸Non-funded income declined to KSh 19.6 billion, a 12% fall.

Diamond Trust Bank (DTB) Q1 

DTB

Diamond Trust Bank Kenya posted a 10% rise in Q1 2025 net income to KSh 3.23 billion, driven by improved asset quality and a stronger loan book. However, an 18% decline in non-interest income signaled continued reliance on traditional banking revenue streams.

🔸Total assets jumped 18.8% year-on-year to KSh 571.89 billion.

🔸Customer deposits rose 11.6% to KSh 425.21 billion.

🔸Net interest income increased 7.8% to KSh 7.64 billion.

🔸Non-interest income fell to KSh 3.04 billion, an 18% drop.

Capital Markets

TransCentury PLC : A Comeback Story

TransCentury PLC performance over 10 years

After a decade in the red, NSE-listed firm — TransCentury Plc — stunned markets with a KSh 580 million profit in 2024, snapping a 10-year losing streak and fueling a 212% stock surge. The infrastructure investment firm posted a sharp turnaround in operating profit and earnings, though its cash position remains precariously thin at KSh 41.9 million. Even with negative equity still looming, this unexpected rebound marks a pivotal moment in one of the NSE’s most turbulent sagas. Read here »»»»»

Sanlam’s Rights Issue : What Lies Ahead?

Sanlam Kenya PLC Chairman Dr John Simba left shares a light moment with the company’s Group CEO Dr Patrick Tumbo

Sanlam Kenya’s KSh 2.5 billion rights issue closed with an 82 percent shareholder uptake, with underwriter Sanlam Allianz Africa stepping in to purchase the remaining shares, signaling confidence in the insurer’s turnaround. The capital injection follows a staggering 922 percent profit rebound in FY2024 and is aimed at easing debt and sharpening focus on core operations. With trading of the 500 million new shares set to begin on June 4 at the NSE, Sanlam is repositioning itself for leaner, more profitable growth. Read here »»»»»

NSE Gainers And Losers

Source : NSE

Conduit Raises US$36mn, Eyes Asia After Rapid Growth in Africa and Latin America

Stablecoin payments infrastructure provider Conduit has raised US$36 million in a Series A funding round led by Dragonfly Capital.

kenyanwallstreet.com/conduit-raises-us36mn-eyes-asia-series-a

Weak Governance to Blame for High Electricity Prices in Kenya, World Bank Says

Electricity tariffs in Kenya are among the highest on the continent partly because of poor governance in power purchasing agreements

kenyanwallstreet.com/weak-governance-to-blame-for-high-electricity-prices-in-kenya-world-bank-says

OPINION 

NG’ANG'A : What US Tariffs Mean for Kenya’s Trade

What US Tariffs Mean for Kenya's Trade

While we can’t predict how Kenya’s tariff positioning will evolve, we can lean on some key strengths, Kevin Ng'ang'a, Verto, writes.

kenyanwallstreet.com/what-do-us-tariffs-mean-for-kenyas-trade

On your watchlist 

Yesterday's Poll Results 

Do you believe that Kenya's fiscal pressure can be relieved by expansion of the tax base?

🟩🟩🟩🟩🟩🟩 Yes (70%)

🟨🟨⬜️⬜️⬜️⬜️ No (30%)

❝

The recognition of the insuperable limits to his knowledge ought indeed to teach the student of society a lesson of humility which should guard him against becoming an accomplice in men's fatal striving to control society

~ F.A Hayek

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