Capital rights issues come home to roost
Last October this post discussed banks’ needing to raise share capital to support their rapid growth over the last five years. Since that time, Diamond Trust, NIC, Housing Finance, Equity and now KCB have all gone ahead and put plans in place to increase their share capital to catch up with their asset base.
KCB hopes to raise Kshs. 5 billion and hopefully this could spur some quality mid-tier banks, with foreign shareholding to step forward to the NSE listing place as well i.e K-Rep, Commercial Bank of Africa, Investment & Mortgages, Fina, Citibank and even Cooperative banks.
KQ expands (From African Flyer blog) – Kenya Airways will from mid-year increase flights on routes in Africa (Ethiopia, Nigeria, Ghana), Mid-East (Dubai) and Far East (China, Hong Kong, Thailand).
Another stockbroker falls: This time it’s another small firm – Nyaga stockbrokers. This is not unexpected, as problems were well known for over a year and had even been discussed in a stockskenya forum. The authorities (CMA) can’t pretend to act surprised as they had in the past considered taking action against the firm whose managers repeatedly sold investors shares without their knowledge – and when caught they would blame errors, and take their time correcting the situation, only to repeat the same up to last week.
- Though the NSE launched a 100 million rescue package, a Business Daily story mentions that as much as 820 million could be owed to clients.
- Other blogger takes: The KCIG has some suggestions for the capital markets authority while Coldtusker is dismayed by the pattern of bailouts of Nyaga Stockbrokers and Invesco Insurance after financial shenanigans.
OTC Bank shares: Are shares of Family Bank available to buy over the counter?
New branches: coming soon Gulf Africa bank at Hughes Building – Kenyatta Avenue, and a new Family Bank branch opp. Yaya Center, Kilimani
Big radio opportunity: Kenya’s highest-rated radio show, Kiss FM‘s Big Breakfast Show (with Carol Mutoko) is looking for a new voice to join her on the show. Send a CV with a recording to firstname.lastname@example.org