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Tuesday, 28 May 2019

Kenyans who earn 150,000 KES (1,481 USD) and below per month are set to get house loans


Insights Africa

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Economic Outlook

Economic Outlook

  • Kenyans who earn 150,000 KES (1,481 USD) and below per month are set to get house loans from local financial institutions at rates below 10% after the country launched its first secondary mortgage financier.
  • The Digital Life Abroad Report by InterNations placed Kenya first in Africa, well ahead of South Africa, Morocco, Uganda and Egypt for ensuring a high-speed Internet at home and online freedom.
  • The Ugandan government stated that Uganda Vision 2040 implementation phase has started and that it is a responsibility for all citizens. Noting that the vision is a plan to transform Uganda to a middle-income economy in 2040, entitled "A Transformed Ugandan Society from a Peasant to a Modern and Prosperous Country within 30 Years''.
  • The Ugandan government has signed a three-year partnership worth 10.52 BN UGX (2.5 MM EUR) with the Belgian government to aid teaching of agriculture practically in secondary, technical and vocational training institutions.
  • The Bank of Zambia raised the Monetary Policy Rate to 10.25% from 9.75% in a bid to stabilize the deteriorating currency and support macroeconomic stability. This increase indicates that that Zambia economic performance has continued to deteriorate on account of fiscal pressures limiting monetary policy interventions.
  • Residents from 226 villages in Tanzania are set to benefit from the Hoima- Tanga oil pipeline project that is jointly implemented by Tanzania and Uganda. All 226 villages will have their lands subjected to Land Use Plan (LUP) to tap economic potentials to be brought about by the project.
  • According to Rwanda Cooperative Agency (RCA), Vulnerable Rwandans, who receive support through Vision 2020 Umurenge Program (VUP), will start accessing interest-free loans effective by 2019/2020.
  • Rwanda joined the OECD Development Centre, a club of 57 countries. It was admitted into the grouping alongside Togo and Ecuador.
  • Zimbabwe government figures blamed exporters for intensifying the dollar shortage and warned the power utility against increasing inflation. Zimbabwe faces a severe dollar crunch, a tumbling local currency and a mounting inflation, which hit 75.86% in April 2019.
Political Events

Political Events

  • Ethiopia Foreign Ministry has apologized after publishing a map of Africa on its website incorporated neighboring Somalia within its own borders. The map has caused a disturbance on social media, with Somalis saying it reveals a wider plan by Ethiopia to annex their country.
  • Oman Air issued a travel advisory to guests flying to Tanzanian destinations of Dar Es Salaam and Zanzibar. The advisory comes in the wake of the Tanzanian government's ban on plastic from June 1.
Stock Market

Stock Market

  • Lack of disposable income caused by the high cost of leaving has led to a decline in the number of Kenyans investing at the Nairobi Securities exchange. The latest data from the Capital Markets Authority, shows that the number of new investors at the bourse has dropped by almost 48%.
  • The price of coffee declined by 9% last week's trading, reversing the gains witnessed in the last two sales when the value of the commodity rebounded after months of losing. A market report by the Nairobi Coffee Exchange (NCE) indicates that a 50-kg bag of coffee fetched 9,400 KES (92.8 USD) down from 10,300 KES (101.7 USD) previously recorded.
  • MTN Nigeria was one of the top 5 gainers on the Nigerian Stock Exchange (NSE) last week closing at 140 NGN (0.39 USD) with a 28.56% gain.
Companies Transactions

Companies Transactions

  • KCB Group fell behind Equity Group in the race for the most profitable lender in Q1-2019 despite registering a net profit increase of 11.4% reaching 5.77 BN KES (56.9 MM USD). Equity's net profit registered 6.2 BN KES (61.2 MM USD) in Q1-2019, a growth of 4.9%. However, KCB has been the most profitable bank on a full-year basis in the recent years.
  • Devki Group, a family-owned conglomerate with interests in cement, steel products, roofing sheets and aviation, has reached a deal to buy out troubled ARM Cement Plc for 5.05 BN KES (50 MM USD). Noting that the International Finance Corporation (IFC) and KCB Group are financing part of the deal.
  • Kenya Standard Chartered Bank reported a 31.1% net profit jump in Q1-2019. The lender's net earnings stood at 2.4 BN KES (23.7 MM USD) in Q1-2019 compared to 1.8 BN KES (17.7 MM USD) in Q1-2018.
  • Amsterdam and Nairobi-based CarePay International, a mobile health payments platform, has raised 40 MM EUR (around 5.1 BN KES) in a Series A financing round for regional expansion.
  • Mayfair Bank recorded steady growth as it narrowed its net loss to 76 MM KES (750,691 USD) in Q1-2019 compared to a net loss of 89.1 MM KES (880,086 USD) in Q1-2018.
  • Kenya Airways has revived plans to implement a rights issue by selling new shares to small investors at a huge discount. The transaction is estimated to raise more than 1.5 BN KES (14.8 MM USD).
  • Retail Giant Pick 'n' Pay announced that their profits in Zimbabwe have declined by 6% in the period February 2018 to March 2019. They have attributed the decline to the currency and fiscal adjustments made by the government during the operational year leading to March 2019.

Dubai

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Emirates Financial Towers, DIFC, Dubai, UAE
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Tel: +9714 351 8187
info@multiplesgroup.com

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S5-6, Area 5, District 1, New Cairo, Egypt.
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