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Market Report – 26th November 2021

- November 30, 2021 - 0 comments

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Features of the week:

MPESA App Advertising for Business

  • Safaricom is set to upgrade the MPESA app platform to enable advertising by businesses.
  • This follows an agreement by Vodacom Group (parent company) and China’s Ant Group which runs Alipay a mobile and online payment platform
  • Vodacom Group is in the process of implementing the Alipay app in South Africa and will see the advertising feature set up on the MPESA app in Kenya and Tanzania.
  • According to Vodacom management, features developed in South Africa will be launched into international markets on a case by case basis based on future agreements with Alipay.


  • This improves monetization on the app. However, it should be done in a such a way that it doesn’t come at the expense of the user experience.


Cooperative Bank receives KES 6.3 billion

  • Cooperative Bank has received KES 6.3 billion from European Investment Bank – the lending arm of the European Union
  • The credit facility, which is repayable in 7 years, will be used for lending to small businesses hard hit by the COVID-19 pandemic.
  • According to management, the loan facility will be available for up to a maximum of KES 1.5 million per customer
  • The loan facilities are expected to be deployed towards funding the acquisition of tangible assets, working capital, development of distribution networks innovation and business research.


We expect the loan facility to support the MSME sector as COVID-19 restrictions ease and business

Equities Market Summary:

Nairobi Securities Exchange Performance

 The All Share Index (NASI) and the NSE 20 fell by 2.2% and 0.4% w-o-w to close the week at 164.77 and 1,886.35 respectively. Equity turnover surged by 138.7% to KES 6.0 billion while the volume traded rose significantly by 139.1% to 169.4 million. We attribute the dip in the all share index to a decline in Safaricom’s price by 3.2% y/y to KES 38.00. All banks except for Absa and Coop registered price declines. Notable declines included; HF (-11.8% w/w to KES 4.32), KCB (-4.5% w/w to KES 43.85), I&M (-2.6% w/w to KES 20.90) and NCBA (-1.1% w/w to KES 23.50). We attribute the price decreases to profit taking activity. NCBA reported positive earnings (+160.0% y/y to KES 6.5 billion) for 3Q2021. DTB also registered growth in earnings (20.0% y/y to KES 4.8 billion). We opine that the new Covid-19 variant – Omnicron – may raise investor concerns over government response in terms of the resumption of stringent measures. We may see the market fall further in the coming weeks.

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