October 2023 Review
- FY’23 Earnings Season - During the month, we had FY’23 earnings release from KPLC, Carbacid and KenGen. KPLC reported a 197.85% decline in PAT to a loss of KES 3.19Bn. Carbacid reported a 15.31% increase in PAT to KES 816.01Mn and a final dividend of KES 1.70 was declared. KenGen reported a 48.34% increase in PAT to KES 5.02Bn and a final dividend of KES 0.30 was declared.
- Safaricom Acquisition of Mpesa Holding from Vodafone - During the month, Safaricom announced the successful completion of acquisition of 100% shareholding of Mpesa Holding Ltd from Vodafone. We view this as a positive step towards aligning the telco’s strategy with long-term growth centered on the mobile money business.
- ILAM Fahari Redemption Offer Results - During the month, ILAM Fahari announced the results of their redemption offer following the closing on 6th October 2023. The subscription rate of the offer was 113.08% representing 41,371,604 units.
- October MPC Meeting - Central Bank’s MPC held the sixth meeting of 2023 where the Central Bank Rate was maintained at 10.50% to allow for effects of the previous hike to be transmitted across the economy. The committee also noted the banking sectors non-performing loans increased to 15.00% in August ’23 from 14.50% in June’23.
What does November '2023 Hold ?
- Q3’23 Earnings Season - We expect the release of Q3’23 net earning results from the banking sector where we anticipate strong performance to be driven by an increase in interest income and non-funded income.
- HY’24 Earnings Results - We expect Safaricom Plc to announce their HY’24 results during the month where we expect revenue growth to be driven by data revenue and Mpesa revenue.
- Listed Companies EGM - In the month of November, KPLC and ILAM Fahari will be holding their EGMs via virtual meetings.
