Amid other revivals
No stockbroker is collapsing!
The whole stock broking industry is due for a shake-up. Arguably CFC is the only stockbroker with the capacity to serve a myriad of customer stock broking requirements.
Now, one other leading Kenyan Bank has applied for a stock broking license, which is expected to be granted later this year. And if one of the big Kenyan banks (Barclays, KCB, Stanchart) decides to enter the market, this could herald the death of the traditional stockbroker.
Banks are always looking to grow their fee income and the sums are here. Imagine if every time a customer withdrew or deposited funds from his/her account, the bank earned a commission of 1.5% of that amount. That’s what a stock broking license means as brokers get paid their commission when investors buy or sell shares regardless of their investors gain or loss.
EA Safari Air: The airline will launch twice daily flights to Mombasa starting on August 1 at a price of 8,900 shillings plus tax. No response from Kenya Airways who have had a virtual monopoly on that route.
Equity Bank: The listing of 90.5 million shares of Equity Bank at the stock exchange has now been approved. listing on August 7
KBS: A few Kenya Bus vehicles are back on the road this morning. The buses are refurbished, painted over, with new seats, and look much cleaner and better maintained than when the company shut down earlier this month.
Kenya Re Another IPO expected, probably in 2007 will be that of the Kenya Reinsurance Company (Kenya Re) from www.stock-detective.co.ke.
Scangroup: IPO opens today, with 69 million shares up for grabs.
Uchumi: One month after I made, what I thought was, my last Uchumi purchase, I was back to buy some Afya apple juice. Afya is one of the brands of Kevian Kenya owned by Kimani Rugendo, a dynamic Kenyan entrepreneur and businessman, and who as a supplier, has led the Uchumi supplier’s movement that successfully lobbied the government to revive the chain.
The stores have reopened with the same euphoria and fanfare that followed the rights issue last year. The question is can this be sustained and will customers be shopping, and suppliers be stocking, at Uchumi 3 or 6 months from now?
Also, the Minister of Trade announced that an Uchumi shareholders meeting will be held this Friday at KICC.