Feature of the week:
World Bank Delays KES 14.4 billion loan
- The World Bank has delayed the issue of a KES 14.4 billion loan that had been approved in June 2021.
- The loan was set to be used by the government to purchase COVID-19 vaccines from Johnson & Johnson with a target to vaccinate 10.0 million people by December 2021.
- According to the World Bank, the loan will be released after the Treasury meets certain undisclosed conditions.
- Further, Kenya would be allowed to purchase part of the vaccines on credit pending release of the loan.
- Kenya will get to buy vaccines through an African Union facility and also through COVAX – a global scheme for sharing vaccines equitably to lower and middle-income countries.
- The government recently eased restrictions in the country owing to lower infection rates. The nationwide curfew effected in March 2021 was removed and restaurant and bars operating hours were extended.
- We expect that the loan would go a long way in boosting vaccination rates in the country.
Equities Market Summary:
Nairobi Securities Exchange Performance
The All-Share Index (NASI) and the NSE 20 Share Index eased by 0.2% and 0.5% w-o-w to close the week at 178.54 and 1,960.75 respectively. Equity turnover rose by 53.3% to KES 3.2 billion while the volume traded edged up by 33.9% to 73.2 million. Notable price declines in the week included; Scangroup (6.5% w/w to KES 4.59), Sanlam (2.5% w/w to KES 11.65), CIC (2.2% w/w to KES 2.63), DTB (2.1% w/w to KES 58.25), KCB (2.0% w/w to KES 44.20), NCBA (2.9% w/w to KES 25.00) and Co-operative (1.9% w/w to KES 12.75). Safaricom eased by 0.3% w/w to KES 42.95. The company is set to release its half year results for the financial year 2021/2022 on 10th November 2021.We expect increased activity on the counter in anticipation of an interim dividend.
KCB – Neutral