March 31 Numbers

It’s that time of the year when the companies that have their year-end in March get to release their 2016 results. These include  Safaricom, Centum and Kenya Airways

  • Centum: The Two Rivers mall seems also complete, and there are the venture in banking (Sidian Bank) & fund management (GenAfrica, Nabo Capital), expansion in beverage (Carlsberg beer, Almasi – Coca Cola). They exited insurance, divested of some property, and have  other new ones to pay for (Amu Power, Vipingo estates). Are they will keen on coal energy? Plus it’s time for shareholders to get some dividends.
  • Kenya Airways: Maybe the toughest year of the company in its 39-year history. One of shrinkage after a record loss , with everything “on the table” as CEO Mbuvi Ngunze has often said. This has come to include board reshuffle, selling a Heathrow airport slot, selling/leasing off brand new aircraft  (787 Dreamliners, and 777-300’s),  and staff layoffs. What’s been the financial outcome of these moves?
  • Safaricom:  Unparalleled at the top of the corporate food chain in terms of connection with citizens (communications, security) and as a taxpayer, with no rivals except itself. Has M-Pesa peaked? What’s next?

It’s also time for banks to release their quarter one results for 2016, in an interesting  year, one not seen since the dreaded early 1990’s and mid 1980’s when political banks were in the news for the wrong reasons. Everyone is wondering, who will buy reopened  Chase Bank?

2 thoughts on “March 31 Numbers

  1. Victor

    James Mworia’s been categorical that Centum pursues a zero dividend policy for value creation just like Buffet’s BRK. I’d rather prefer that approach where accelerated investment options are available, like they currently do have. Centum isn’t for short holders and Mworia’s always explaining that point to would be investors.

    1. bankelele Post author

      This is going to become a classic shareholders versus managers story. It may be time to give mangers bonus shares in an ESOP, and pay shareholders cash dividends.

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