KETRACO [@KETRACO1] has taken 3 pages in the Star Newspaper to give more details on the Adani Energy deal.

Here is a thread with a few key points we noted from the statement. @MativoMJohn @arnoldi254 @kinjeketile @Jasiri_MAR @DollyOgutu @lindahoguttu @RichardOnyonka_ 1. Background:

—The Transmission Master Plan (TMP) projects the need for an additional 9,600 km of transmission lines and a $5.2B investment by 2042 to support industrial growth and electrification.
—KETRACO is exploring Public-Private Partnerships to bridge the funding gap

The latest Finance Bill proposes several key changes to Kenya's tax laws.

Here is a thread of a few things we picked:🧵

[Corrections welcome] @Nikhil_Hira @mwaniki_joseph @wakili_dennis @ill_dduor @coldtusker @Brianmbunde @janetmachuka_ @arnoldi254 @mmnjug @Theo_mwangi 1️⃣ Finance Bill 2024 introduces the Motor Vehicle Tax:

💰 The tax rate is set at 2.5% of the vehicle's value

🔴 Minimum tax: KES 5k. Maximum tax: KES 100k

✍️Calculation based on make, model, engine capacity, and year of manufacture.

We compiled a thread on SACCO's FY 23 Results that we have received so far.

Here is the thread: @cheruiyotkb @the_acemt @moneyacademyKE @nderi_j @RonnyChokaa @xysist @wiseshilling @StellarSwakei @tyrus_ 1. Nation DT Sacco[@NationDTSacco]:

—Total Assets: +17.7% to 3.5B
—Net Income: +8.5% to 235M
—PAT: +3.8% to 116M
—Dividend rate on deposits: 20%
—Interest rate on member deposits: 11%

10 Key Takeaways from the CBK Post-MPC Briefing by the Governor.

1. CBK is keen on the separation of Safaricom & M-Pesa:

"One of the factors that has been delaying this..is the tax liability which is fairly significant in the order of at least KES 75B & what to do with it" 2. There has been a sharp rise in remittances to Kenya this year:

"If one were to compare the first two months of 2024 (Jan & Feb 2024), we see remittances for those two months compared to the two months in 2023 have increased by more than 20%"

We selected the top #MwangoMemes from 2023 for you to enjoy!

1. The Kenya shilling closed 2023 at KES ~157 against the dollar.

Earlier in the year the President had promised that it would be trading at around 115 to 120 in a few months.

#MwangoMemes @coldtusker @OchiengJasper @Brianmbunde @Bebi_16 @swabrah @KenyansNoContxt @Dicksonmagecha @MugambiNandi @alexmwanzo @InvAnalystKe 2. Kenya Power [ @KenyaPower] sought to enter the internet business.

It identified some 93 hotspots in Nairobi & Mombasa where it will connect with high-speed internet through 1,331.68 km of overhead fiber optic cables in phase 1 of its data business.

#MwangoMemes

𝐓𝐡𝐢𝐬 𝐖𝐞𝐞𝐤'𝐬 𝐓𝐨𝐩 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐍𝐞𝐰𝐬 𝐢𝐧 𝐌𝐞𝐦𝐞𝐬:

1. Kenya's backlog of incomplete projects reaches KES 1.3 T, sparking calls for a halt on new government projects until existing ones are completed

#MwangoMemes @MihrThakar @KenyansNoContxt @PesaWall @alexmwanzo @swabrah @NguliMT @MwangiMaina_ @Brianmbunde @arnoldi254 @DollyOgutu 2. Taxpayers are facing a new burden as President Ruto's administration plans to secure an additional KES 362B to fund his second full-year budget, set to surpass the KES 4T mark for the first time.

More debt on the way:

#MwangoMemes

The Hass Real Estate Index Q2 2023 Report by
@HassConsult
:

1. Land prices in Nairobi:

— General land prices for Nairobi’s 18 suburbs stagnated with slower demand and a decline of 0.1 % in the quarter but an overall increase of 1.2% in the year. https://t.co/4T7q3zyZUz

https://twitter.com/MwangoCapital/status/1651886302395240455

@HassConsult 2. Land Pricing

—Land prices within Satellite Towns were subdued with minimal increases of just 1.2% in the quarter and 5.1% in the year

—Ngong experienced a bullish land price increase of 4.7% in the quarter and 20.7% in the year (4X the increase in the average Satellite Town)

𝐄𝐧𝐣𝐨𝐲 𝐭𝐡𝐢𝐬 𝐰𝐞𝐞𝐤'𝐬 𝐭𝐨𝐩 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐧𝐞𝐰𝐬 𝐢𝐧 𝐦𝐞𝐦𝐞𝐬 𝐚𝐬 𝐩𝐨𝐰𝐞𝐫𝐞𝐝 𝐛𝐲 @MwangoCapital:

1. Okiya Omtatah was the hero this week as he secured conservatory orders temporarily suspending the implementation of the Finance Act 2023:

#MwangoMemes 2. The new CBK governor Dr Kamau Thugge raised base rates this week by a whoopping 100 basis points to 10.5% and may raise rates again soon to stem an increase in inflation.

Here is a live video of Thugge raising rates in this tough economic environment:

#MwangoMemes

𝐌𝐰𝐚𝐧𝐠𝐨 𝐑𝐨𝐮𝐧𝐝𝐮𝐩 𝐨𝐟 𝐓𝐨𝐩 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐂𝐨𝐧𝐭𝐞𝐧𝐭 [𝟐𝟐𝐧𝐝 𝐌𝐚𝐲]:

1. Kenya's diaspora Remittances fell 9.8% YoY in Apr 2023 to $320.3M

Month-on-Month, remittances fell 10.5%.

The cumulative 12-month remittances reached $3.985B, up 0.4% YoY @MaudhuiHouse @arnoldi254 @alykhansatchu @MihrThakar @coldtusker @WehliyeMohamed @BrianGeorgeKE @NSE_Investors @bankelele @tradingroomke 2. Kenya and Uganda Revenue Authorities have some issues with Bamburi:

—Kenya's Treasury CS declined their application for KES 288M in interest and penalties waivers
—A URA review resulted in a Corporation tax assessment with a principal tax of KES 594M & interest of KES 362M.

𝐄𝐧𝐣𝐨𝐲 𝐭𝐡𝐢𝐬 𝐰𝐞𝐞𝐤'𝐬 𝐭𝐨𝐩 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐧𝐞𝐰𝐬 𝐢𝐧 𝐦𝐞𝐦𝐞𝐬 𝐚𝐬 𝐩𝐨𝐰𝐞𝐫𝐞𝐝 𝐛𝐲 @MwangoCapital:

1. The IMF is in Kenya on a two-week review of an ongoing, three-year, $2.4B loan program. After the review, $300B will be released to Kenya.

#MwangoMemes 2. Kenya also wants to borrow KES 321 B from the IMF but there is a catch: Kenyan lawyers will have to snitch on their clients who launder money.

The lawyers have refused. The country has until July to convince them to change their minds or miss out on this cash.

#MwangoMemes

Quotes from the chat between President Ruto [@WilliamsRuto] & Mo Ibrahim at the Mo Ibrahim Governance Summit [@Mo_IbrahimFdn]:

1. On the AU:

"We seriously need an interrogation of the management of the AU. Today we cannot even support Somalia. We are waiting for the EU to give… twitter.com/i/web/status/1… 2. The global financial infrastructure needs a relook:

"The current international financial architecture is, to put it bluntly, rigged against those of us in the global south because we cannot meaningfully address our development needs with the financial resources from this… twitter.com/i/web/status/1…

The Hass Real Estate Index Q1 2023 Report by @HassConsult:

1. Land prices in Nairobi:

Overall land prices in Nairobi's suburbs remain stable at 0.3% over the quarter, while land prices in the satellite towns price increased by 1.2%. 2. Land as an investment:

—Nairobi land prices hit a historic high average of KES 194 M per acre.
—Land prices in 59% of Nairobi suburbs are now above pre-pandemic levels.
—Ruaka is the most expensive suburb with the average price per acre now at KES 100 M

𝐌𝐰𝐚𝐧𝐠𝐨 𝐑𝐨𝐮𝐧𝐝𝐮𝐩 𝐨𝐟 𝐓𝐨𝐩 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐂𝐨𝐧𝐭𝐞𝐧𝐭 [28𝐭𝐡 𝐀𝐩𝐫𝐢𝐥]:

1. Treasury is in the market with a new 3-year bond to raise KES 20B for budgetary support.

The period of sale is 26th April to 9th May and the coupon rate will be market determined. 2. The results of this week's T-bill Auction:

—Amount offered: KES 24B
—Performance Rate: 37.52%
—Amount Accepted: KES 8.9B

Performance Rates Breakdown:
—91-Day: 167.18%
—182-Day: 8.72%
—364-Day: 14.4%

Interest Rates:
—91-Day: 10.275%
—182-Day: 10.511%
—364-Day: 11.124%

Notes on the FY 2023/24 budget brief, the first under this government.

1. Revenue projection targets.

—FY 22/23: KES 2.5T (18.3% of GDP)
—FY 23/24: KES 2.9T (17.8% of GDP)
—FY 26/27: KES 4.2T (18.3% of GDP) @ill_dduor @nderi_j @WehliyeMohamed @JoyDoreenBiira @HonMoses_Kuria @swabrah @alykhansatchu @Markbohlund @AmbokoJH @thesarahmwangi 2. Expenditures for FY 23/24

—Total: KES 3.6T (22.1% of GDP)
—Recurrent: KES 2.5T (15.2% of GDP)
—Development: KES 689.1B (42% of GDP).

The fiscal deficit is projected at KES 663.5B (4.1% of GDP) vs KES 1.12T in FY 22/23 (6.2% of GDP).

Here's a highlight of the key numbers from the Safaricom Investor Briefing 2023:

1. Business at a glance:

— Market Share: 66%
— Customers: 43.2 million
—M-PESA Customers: 31.2 million
—Fiber Optic Footprint: 12,500km 2. Revenue Mix:

—Absolute Service revenue: +12.3 YoY
—M-PESA Revenue +38.3% YoY in 2022, from +33% YoY in 2021
—Voice revenue growth has consistently declined over 4 years

Mwango Roundup of Top Business News [22nd Feb]

1. Global Investment powerhouse JP Morgan is set to set up a regional office in Nairobi eyeing more business deals here.

This was revealed after the President met Daniel Zelikow, global head of JP Morgan's Public Sector Group. @coldtusker @KellyGitahi @gachoki_munene @MaudhuiHouse @mmnjug @DollyOgutu @BobMainaMagari @ffochieng @MihrThakar @alykhansatchu 2. Digital lender Tala is seeking funds for growth:

"The amount we are looking for is not less than $10M. With this, we will be looking to grow our customer base by about three to five times in the next 18 months"

[@TheStarKenya]

Mwango Roundup of Top Business News [21st Feb]

1. Trade CS @HonMoses_Kuria issues warning to edible oil companies:

"5 companies continue to come here & repackage edible oil & say they are doing value addition...I will deal with them squarely & perpendicularly"
[@citizentvkenya] @KAM_Kenya @RufasKe @coldtusker @KellyGitahi @janetmachuka_ @arnoldi254 @MihrThakar @gachoki_munene @MaudhuiHouse @mmnjug 2. Car & General (Trading) Limited (C&G), a subsidiary of Car & General (K) PLC, acquires 50% of shares in Cummins C&G Holdings Limited (the Cummins CG) from CMI Africa Holdings BV (Cummins BV) in a share purchase agreement.

C&G will now own 100% of shares in Cummins CG.

Mwango Roundup of Top Business News [20th Feb]

1. Manufacturers protest govt plan to import ~150k tonnes of cooking oil.

With local annual demand of ~650k tonnes, @KAM_Kenya says the ‘mystery' importer will have a bigger share than most of the 13 manufacturers.
[@StandardKenya] @mmnjug @coldtusker @gachoki_munene @bankelele @MaudhuiHouse @MyAdvisor254 @janetmachuka_ @beth_kasinga @BobMainaMagari @RufasKe 2. President William Ruto appoints a presidential task force on the establishment of a national lottery.

Steering Committee:
—Chair: Narendra Raval
—Vice: Gideon Thuranira

Technical Committee:
—Chair: Linda Musumba

This past week, there has been a discussion around NSSF in Kenya ever since President @WilliamsRuto made this remark:

"Uganda has a bigger pension scheme than ours & a smaller economy. So we have to change"

Here is a small thread comparing @NSSF_ke & @nssfug: 🧵👇 @coldtusker @MugambiNandi @DollyOgutu @bankelele @MaudhuiHouse @DavidNdii @tradingroomke @ffochieng @TimKipchumba @TToroitich 1/ Membership:

Registered members as of June 30th 2020:
—NSSF Kenya: 2.6M
—NSSF Uganda: 2.1M

The Mwango roundup of Today’s Top Business News [September 20, 2022]

1. The High Court has stopped the bid to increase monthly contributions to the NSSF ten-fold up to KES 2,068 after it ruled that the law supporting the increments was unconstitutional.

[@BD_Africa] 2. According to latest Treasury data, Kenya spent 63.5% of tax collections in the first 2 months of the current financial year to repay its creditors.

Debt servicing costs amounted to nearly KES 177.95B in Jul and Aug against a record KES 280.23B in tax receipts.

[@BD_Africa]

The Mwango roundup of Today’s Top Business News [September 19, 2022]

1. Local companies are struggling to recruit, retain talent as US tech titans led by Microsoft, Amazon & Google tilt the market in their favour with high salaries and attractive employment terms.

[@BD_Africa] 2. The Treasury has said Kenya will find it challenging to sustain reliance on multilateral lenders for external funding, signalling a return of costly foreign loans in the first year of the new administration.

Commercial Loans, FY 21/22: -14.2% y/y to $9.4B.

[@BD_Africa]