Kenya is at its lowest valuation ever amid the improving macro environment The Kenyan market is down 23% YTD (31% in USD terms). Much of this is due to the lower valuation of Safaricom, but even the market ex-Safaricom is cheap (3.3x 12m Fwd P/E). Market liquidity is poor(3 million average daily trading volume (ADTV) […]
The question on the breakfast table in most Kenyan households revolves around the sugar price. People are concerned about whether it will drop from a record high of Ksh 200 per kg or will it continue to rise in June, pushing up the inflation rate– which tracks commodity and services prices – over a year. […]
When Dr Patrick Njoroge, the outgoing Central Bank of Kenya Governor, took over in June 2015, his first Monetary Policy Meeting – on July 7, 2015, saw the Central Bank Rate (CBR) rise by 1.5% to 11.5%. It was the largest in his eight years at the helm. The CBR is the rate at which […]
We lower our FY23-27e earnings per share (EPS) estimates for KCB by an average of 12.2%. Its risk pricing model (RPM) will result in lower gross yields reducing our average NIM estimates by 110 basis points to 7.9%. We also raise our FY23-27e operating expenditure (OPEX) estimates by 14.0% on average to reflect the impact […]