Summary Of The Business Daily Newspaper
Page 1: Reports indicate that a consortium of flour millers has acquired Savannah Cement for Sh3.8 billion through a new entity called Savannah Cement 2025 Limited. The cement firm had been in receivership due to a substantial debt of Sh14.1 billion owed to two banks. This acquisition concludes a two-year search for a new buyer for the company.
Page 2: Reports show that the number of dollar millionaires in Kenya has declined to 6,800, causing the country to fall to fifth place in Africa, behind Morocco. Despite this overall drop in high-net-worth individuals, the count of centi-millionaires (those worth over $100 million) has remained steady at 16. This trend reflects a decrease from the 7,700 millionaires recorded in 2022.
Page 4: Reports confirm that Kenya’s fiscal deficit has widened to 5.8% of GDP for the 2024/25 financial year, up from 5.6% the previous year. The Treasury attributes this deviation to accommodating Sh218 billion in carryover expenditures and weaker tax revenues after the finance bill was withdrawn. Officials contend that the underlying deficit performance is positive when these one-off factors are excluded.
Page 5: Reports state that the World Bank is set to approve a $750 million loan for Kenya next month after Parliament passed a crucial Conflict-of-Interest Bill. This development policy financing is critical as the Treasury has faced challenges in mobilizing external funds. Furthermore, the government is actively pursuing a new financing arrangement with the IMF to bolster its external financing options.
Page 6: Reports reveal that Kenya Airways has secured a $50 million bridge loan from a local bank to address immediate working capital needs. This stopgap measure is necessary due to delays in securing a larger $500 million strategic investment, for which the airline awaits government approval on an investment memorandum. While awaiting this approval, KQ is also exploring additional innovative bridge financing options with international partners.
Page 7: Reports announce that regional insurer Old Mutual Holdings plans to sell its entire real estate portfolio across East Africa, including Nairobi’s Old Mutual Tower, to exit the struggling property market. This decision is part of a broader business restructuring driven by weak returns and single-digit yields from its property assets. The company is already in advanced stages of selling several properties, with deals progressing in Kenya, Rwanda, Uganda, and South Sudan.
Page 10: Reports explain that water service providers in Kenya collect significant amounts of personal customer data, placing them under the obligations of the Data Protection Act. They are required to obtain this data lawfully, use it only for explicit purposes like billing, and implement strong security safeguards. Protecting this sensitive information is deemed as critical as maintaining the physical water infrastructure itself.
Page 13: Reports describe air cargo as a transformative force that provides fast, reliable market access, which is critical for the success of African SMEs. Its true power lies in acting as an economic lifeline by shortening the time to market for perishables and high-value goods. Expanding cargo operations and strengthening route networks is essential for stimulating economic growth and unlocking new revenue across the continent.
Page 14: Reports indicate that the Kenyan government is seeking to borrow an additional Sh60 billion through reopened Treasury bonds following a highly successful tap sale last week. If fully subscribed, this issuance would push the net domestic borrowing for the year past Sh300 billion, already reaching 41% of the annual target in under three months. This aggressive front-loading strategy aims to capitalize on the current favorable interest rates in the local debt market.
Page 24: Reports highlight that family-owned businesses are vital to East Africa’s economy but face significant challenges, with fewer than 20% surviving beyond the second generation. Their longevity is threatened by issues in succession planning, governance, and informal decision-making, which are exacerbated by growth and external pressures. Effective succession planning and professionalization are therefore crucial for ensuring business continuity, maintaining investor confidence, and supporting community resilience.