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Thinning wallets...
Kenya's #1 newsletter among business leaders & policy makers
While incomes plummet and wallets shrink, some of Kenya's sectors — from retail to hospitality — are feeling the pinch while surprisingly, the education sector sees an uptick.
Good evening! It's Brian from The Kenyan Wall Street. This and more business stories in today's edition of ‘The Daily Brief’
THINNING WALLETS: Kenya’s Retail, Hospitality Incomes Drop in Q1 2025
Shopping
The Q1 2025 ILAM Spending Index shows incomes in wholesale/retail and hospitality sectors shrank by 40% and 45% respectively, while only education sector workers saw a 46% income rise.
Spending increased among education workers, but dropped by 33% in the hotel, tourism, and leisure industries. Retail business sales declined overall, especially for clothing stores and restaurants, though Mombasa recorded better sales compared to Eldoret, Kisumu, and Nyeri.
Globally, trade tensions between the US and China are pushing inflation higher and dragging down growth, with international markets expected to post their weakest performance in three years. Locally, Kenya’s economy is forecast to grow by around 5% in 2025, with the Nairobi Securities Exchange offering strong value to investors. Read more in this article»»»»»
Today's Poll
How would you describe your spending power since January this year? |
RED TAPE: Engineers Decry Rising Corruption in Seeking Nairobi County Approvals
Upperhill, Nairobi
The Institution of Engineers of Kenya (IEK) has raised serious concerns over the National Planning & Development Management System (NPDMS), citing frequent technical failures, corruption, and long approval delays.
Despite its goal of streamlining building approvals, the system’s inefficiencies have worsened bribery and manual interventions, eroding trust in the development process. Engineers warn that continued breakdowns threaten Nairobi’s construction safety standards and urban growth plans.
The IEK is urging Nairobi City County, the Ministry of Lands, and investigative agencies to launch urgent reforms. Read more »»»»»
EAST AFRICAN CABLES PLC : Growing Revenues encounter Debt obstacle
East African Cables PLC
East African Cables Plc has reported a 2% revenue growth to KSh 2.57 billion for the year ended December 31, 2024, driven by product innovation and new market channels.
Despite operational gains, the company posted a deeper after-tax loss of KSh 358.8 million, mainly due to a 43% rise in finance costs. EBITDA turned positive at KSh 179 million, a major turnaround from a KSh 20 million loss in 2023, supported by better margins and cost management.
However, debt pressures remain a major concern, with cash reserves falling 59% to KSh 43 million and current liabilities exceeding current assets by KSh 2.68 billion. Management remains optimistic, focusing on asset sales, subsidiary divestitures, and new financing efforts to sustain growth. Here are the full results»»»»»
AN INFANT’S STRIDE : Ethio Telecom's IPO Raises Just 10% of Target
Ethio Telecom
Ethio Telecom’s historic IPO, Ethiopia’s first, raised only 10.7% of its target, securing 3.2 billion birr (US$24 million) from 47,377 investors. However, investor restrictions, low public awareness, and investment caps were major barriers to full subscription. Despite the modest fundraising, Ethio Telecom’s financials remain strong, with 2024 revenue up 27.8% and profit after tax increasing 5.5%.
The company plans to offer a further 45% stake to foreign investors and list on the Ethiopian Securities Exchange (ESX). Its mobile money platform, Telebirr, has surpassed 51 million subscribers, processing over 1 trillion birr. Ethio Telecom’s IPO marks a key step in Ethiopia’s wider economic liberalization and capital market development. Read more here »»»»»
MARKETS
🟢 I&M Group PLC will hold its 73rd Annual General Meeting virtually on 22nd May 2025 at 10:00 a.m.
Shareholders will vote on key matters including:
▪️ Approval of 2024 audited accounts.
▪️ Approval of directors’ remuneration.
▪️ Approval of final dividend of KSh 1.70 per share.
▪️ Re-election of directors.
▪️ Appointment of PwC as new auditors.
▪️ Approval of key company policies.
🟢 Cooperative Bank’s book closure for the first and final dividend of KSh 1.50 per share for the year 2024 is today, 28th April 2025. Payment is expected on or about 10th June 2025.
🟢 Flame Tree Group Holding returned to profit in 2024, posting a KSh 202M net profit and a record KSh 618M EBITDA (+47%). EBITDA margin rose to 13.9% as plastics led growth despite macro challenges. No dividend declared.
🔴 The Nairobi Securities Exchange (NSE) today saw a bearish performance. 👇🏽
Source : NSE
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Yesterday's Poll Results
Do you think Aviator should be banned in Kenya?
🟩🟩🟩🟩🟩🟩 Yes (70%)
🟨🟨⬜️⬜️⬜️⬜️ No (30%)
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