- The Daily Brief, by The Kenyan Wall Street
- Posts
- The profit reapers
The profit reapers
Kenya's #1 newsletter among business leaders & policy makers
Hello there 👋🏿
It's Brian from The Kenyan Wall Street.
In today's edition of ‘The Daily Brief’, both EABL and Kenya Power have released the half-year results.
Also, we look at the case between CMA and the eight directors of the collapsed Imperial Bank…
And we crunch down this month’s inflation figures from the KNBS….
COMPANIES
EABL Half Year Profits Increase by 20% to KSh 8.1 bn
Tusker beer bottles
Financial Performance :
🔺 A profit after tax of KSh 8.1 billion in the first half of 2024.
🔺 A 20% increase in profit compared to the same period in 2023, when it was at KSh 6.8 billion.
🔺The company’s sales increased by 2% to KSh 67.9 billion alongside 1% volume growth.
🔺 EABL has recommended an interim dividend of KSh 2.50 per share to be paid on or about 30th April 2025.
🔻The cost of sales went up 7.4% to KSh 39.8 billion in the 6 months, watering down the mild increase in sales.
🔺Finance costs were 13% lower to KSh 3.4 billion helped by a KSh 4.9 billion debt reduction in the period.
🔺Operating expenses were up 4.9% to KSh 13.7 billion with foreign exchange gains at KSh 1.1 billion in December 2024 from KSh 2.3 billion in FX losses in December 2023.
Despite this impressive performance in the market, the brewer forecasts a gloomy trend in consumer habits.
Our financial analyst, Zainab Hafsah explains in this article >>>>>
Kenya Power Half Year Profits Surge by 3025%
Kenya Power MD, Joseph Siror
Financial Performance :
🔺Net profit in the half year – KSh 9.97 billion
🔺A 3025% increase in net profit compared to KSh 319 million during the same period in 2023.
🔺An interim dividend of KSh 0.20 per share after a 9 year freeze, to be paid on or about 11th April 2025.
🔺Electricity unit sales went up 5% to 5,506 Gigawatts per hour from 5,225 Gigawatts per hour on the back of higher consumption and new customer connections.
🔻The overall electricity revenue declined 5.4% to KSh 107.4 billion from KSh 113.6 billion in December 2023 owing to a reduction in tariffs.
🔺Finance costs reduced by KSh 13.1 billion to KSh 1.9 billion in December 2024 from KSh 15.0 billion in December 2023.
🔻Operating expenses increased by KSh 4 billion to KSh 23.7 billion, attributed to higher staff costs.
🔻Power purchase costs decreased by KSh 1.7 billion to KSh 71.4 billion in the period.
🔺The recent profits and dividend payouts have steered Kenya Power’s share price up 454.3% in a year to KSh 7.76 per share as of today’s morning session.
Today's Poll
Going by the financial performance of both Kenya Power and EABL, would you buy their stocks? |
Yesterday's Poll Results
How can you describe your purchasing power over the last one year?
‘Poor’ led with 60%
Imperial Bank Vs. CMA
The collapsed lender, Imperial Bank
The Capital Markets Appeals Tribunal has barred the Capital Markets Authority (CMA) from proceeding with an inquiry into the conduct of 8 directors of Imperial Bank during the application of a Ksh 2 billion corporate bond in 2015, shortly before the lender collapsed.
In April 2015, Imperial Bank applied to CMA for approval for a Kshs. 2 billion corporate bond issue to the public - which the regulator approved five months later. The next month, the bank’s then-managing director Abdulmalek Janmohamed passed away and Naeem Shah, the Head of Credit, was appointed acting MD. Naeem and the new Deputy Managing Director, James Kaburu, informed the board of longstanding illegal disbursements authorized by the late Managing Director, concealed from CMA, the Central Bank of Kenya, and the Board of Imperial Bank. An audit that was conducted revealed the fraudulent scheme and CBK shut the lender.
ECONOMY
Kenya’s Inflation Rises to 3.3% in January
Foodstuffs in Kenya
Kenya’s headline inflation rose to 3.3% in January to a 4- month high from 3% in December 2024, still below the Central Bank of Kenya’s (CBK) midpoint target of 5% for the 8th consecutive month.
Food and non-alcoholic beverages prices increased by 1.6% between December 2024 and January 2025 mainly driven by increases in prices of tomatoes, cabbages and onions. The increases were however tempered by a drop in prices of cooking oil and mangoes. Electricity and gas prices declined by 0.7% between December 2024 and January 2025 while the price of kerosene went up 2%.
TECH
Generative AI is Fuelling a New Wave of Fraud in Africa
Telecommunication network
Rapid developments in generative artificial intelligence (AI) are fuelling a new wave of fraud in Africa, with fraudsters using AI to create hyper-realistic documents, images and voices to beat verification systems.
In this article, we analyse the evolving trends of document fraud and biometric fraud in Africa, derived from a report by digital verification platform — Smile ID
✒️ On the News Desk
Mind your Money
Interviews
⏱️ Also watch
For to everyone who has, more shall be given, and he will have abundance; but from the one who does not have, even what he does have shall be taken away
What did you think of our newsletter today?
Contact us if you have any inquiries and concerns at :
Have a lovely weekend!