Time to pay up...

Under the weight of unpaid obligations, Kenya gestures toward resolution : settling a fraction of its verified arrears while the full ledger of state promises remains open.

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

Main Stories.

⏰ Clearing the Mountain of Pending Bills

The government plans to settle only KSh 229 billion out of KSh 522.9 billion in pending bills verified so far, prioritizing payments to individuals, MSMEs, and road contractors. The verification process, led by Edward Ouko’s committee, analyzed over 57% of the 65,627 submitted claims. Treasury CS John Mbadi emphasized the move is meant to boost economic liquidity and revive halted infrastructure projects. Meanwhile, Nairobi tops counties with the largest debt stock, reporting KSh 115.69 billion in unpaid bills. Read more »»»»»

🪙 T-Bills Yields Hit by CBK Rate Cut

Yields on Kenyan Treasury bills have dropped sharply, with the 364-day paper slipping to 9.75%, now aligned with the Central Bank’s reduced policy rate. Short-term instruments like the 91-day bill remain popular with retail investors, though institutional capital is migrating toward reopened long-term bonds offering over 12% returns. The government raised just KSh 17.2 billion out of a KSh 24 billion offer, as interest in longer maturities eclipsed appetite for mid-range T-bills. As yields fall and liquidity shifts, the reopened SDB and FXD bonds are emerging as the market’s new north star. Read here »»»»»

Capital Markets

📈 Safaricom’s Trillionth Mark And NSE Rally

In a stunning show of investor optimism, Safaricom briefly crossed the KSh 1 trillion mark this week, igniting the strongest rally the Nairobi Securities Exchange has seen in over a decade. The NSE All Share Index is now up nearly 20% year-to-date, with Safaricom alone contributing a staggering 46% gain in its stock price. Investor wealth ballooned by KSh 180 billion in just four sessions, as total market capitalization surged to KSh 2.325 trillion. For a brief moment, the telco was worth more than all Kenya’s listed banks and insurers combined— a signal of renewed confidence in tech-led growth. Read more »»»»»

⚡The Final Count : Umeme Ltd Results 2024

Umeme Limited closed the curtain on its 20-year electricity concession in Uganda with a crushing Ushs 511 billion net loss. The blow came as it handed over assets to the state and began international arbitration over a disputed buyout settlement.

Financial Results Summary :

🟢 A Revenue of Ushs 2,314.77 billion (up 5.4%) driven by 10.8% growth in electricity demand.

🔴 A Net Loss of Ushs 510.57 billion (down from Ushs 11.47 billion net profit) due to billions in impairment and credit losses.

🔴 Equity fell to Ushs 241.48 billion (down 74.2%) as the Buyout Amount dispute hit shareholder value.

🔴 Operating Cash Flow of Ushs 424.06 billion (down 27.1%) reflecting transition costs and delayed receipts.

Read the full financial analysis here »»»»»

NSE Gainers And Losers

Also Read…

📡 Separating SuperSport from DSTV 

In a move that could reshape African pay-TV, MultiChoice is contemplating separating SuperSport from its DStv packages to appeal to cost-conscious, sports-hungry viewers. The broadcaster, under pressure from streaming platforms and a shrinking subscriber base, is exploring a more flexible model — one that Canal+ has already tested in Europe. But fragmenting SuperSport, long the crown jewel of DStv’s premium bouquet, risks unraveling a delicate balance of value and revenue. Read here »»»»»

Opinion 

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