Heineken targets the youthful with tequila-flavoured beer

Corporate News

Global beer maker Heineken has introduced a tequila-flavoured beer into the Kenyan market, seeking to pull youthful consumers away from regular-tasting brands. PHOTO|FILE 

By MUGAMBI MUTEGI

In Summary

• The Dutch brewer on Thursday night launched Desperados, the second alcoholic product it will be marketing since it started importing Heineken from the Netherlands in 2011.
• Nakumatt Holdings, the brand’s exclusive retailer, will be selling the drink at a recommended retail price of Sh170.
• Desperados, with an alcohol content of 5.9 per cent, is available in 330ml bottles and will initially retail in Nairobi in select bars like Galileo Lounge, K1 Klubhouse and Tribeka before expanding into the country and region.

Global beer maker Heineken has introduced a tequila-flavoured beer into the Kenyan market, seeking to pull youthful consumers away from regular-tasting brands.

CMC loses Volkswagen to DT Dobie in fresh blow

Corporate News

DT Dobie managing director Zarak Khan. CMC Holdings has lost Volkswagen franchise to DT Dobie. PHOTO|FILE 

By VICTOR JUMA

In Summary

• DT Dobie’s agreement with the VW franchise owners takes effect Friday, with the dealer set to begin selling the saloon cars in October.
• DT Dobie sees the takeover of the VW franchise as an opportunity to recover from the loss of its Renault and Nissan brands to rival dealers.
• The migration of VW to DT Dobie marks the latest setback to CMC which last year lost its most lucrative franchise – Jaguar Land Rover (JLR) – before losing Ford last month, significantly eroding its share of the new vehicles market.

Motor vehicle dealer CMC Holdings has lost the Volkswagen franchise to rival DT Dobie, in the latest blow to the group which was de-listed from the NSE this year after acquisition by a Dubai conglomerate.

Pancontinental, BG Group raise stake in Lamu exploration block

Boats on a Lamu beach. Offshore exploration is currently going on. PHOTO | FILE 

By John Gachiri

In Summary

• Australian firm Pancontinental said together with BG Group of UK they have increased stakes in Block L10B by equitably taking up the combined 40 per cent stake held by Premier Oil and PTTEP.
• Pancontinental increased its shareholding to 25 per cent from 15 per cent while BG Group has seen its shareholding increase to 75 per cent from 45 per cent.

Oil and gas companies Pancontinental and BG Group have increased their stakes in the Lamu exploration block following the exit of two other partners.

KCB to offer employees 40 million shares

Money Markets

A KCB banking hall. The bank will sell 40 million shares to staff under Esop. PHOTO | FILE 

By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com

In Summary

• The stock is part of the 150 million shares that shareholders of the Nairobi Stock Exchange (NSE)-listed lender approved for issue to staff in 2008.
• The company did not disclose the price at which it would offer the employees the shares, but going by the Sh20.04 price of the last two Esop issues, the employees may be looking at more than doubling their share values on listing.

KCB has received approval to issue and list an additional 40 million shares under its employee share ownership plan (Esop) at a time the lender’s stock is trading at an all-time high of Sh54.

Central Bank admits error in listing Ecobank as small lender

Money Markets

 

An Ecobank branch in Nairobi. PHOTO | FILE 

By GEORGE NGIGI

In Summary

• CBK amended ranking of its annual survey with sources, saying the regulator had mixed up Ecobank numbers with those of Equatorial Bank leading to the error.
• The regulator recorded Ecobank deposits as Sh13.8 billion while the lender held Sh25.3 billion.
• There are 16 medium-sized banks in the country while small lenders number 21. CBK has classified six lenders as large banks.

The Central Bank of Kenya (CBK) has admitted it erred by classifying Ecobank as a small lender and reinstated it to the medium-sized category.

Centum bids for majority stake in K-Rep Bank

Corporate News

 

A K-Rep Bank branch on Kenyatta Avenue in Nairobi. The investment firm Centum has announced its intention to raise its stake in the bottom-tier bank. PHOTO | SALATON NJAU  

By VICTOR JUMA, vjuma@ke.nationmedia.com

In Summary

• Centum has opened negotiations to acquire a 66 per cent stake in the bottom-tier bank whose value the transaction advisers estimated at Sh2.5 billion.
• The transaction, if successful, will raise Centum’s stake in the lender to Sh67.54 per cent. The investment firm has been a minority shareholder in K-Rep since 2004 with a 1.66 per cent stake.
• Centum expects to complete the transaction in the next four months and will own the stake through a non-operating holding company.

Investment firm Centum on Thursday announced plans to enter the lucrative financial services market with a multi-billion-shilling bid for a controlling stake in K-Rep Bank.

Kenyan shilling overvalued by 4pc, says CBK policy insider

Money Markets

A teller counts money. The World Bank says that in 2013 alone the shilling appreciated by 5.7 per cent, eroding Kenya’s competitiveness. PHOTO | FILE 

By GEOFFREY IRUNGU, girungu@ke.nationmedia.com

In Summary

• Francis Mwega says the shilling’s overvaluation is marginal, a view that is in contrast with the World Bank’s opinion that the exchange rate has become overvalued by 33 per cent in the past 10 years causing big variation between exports and imports.
• The shilling has been trading for several months at between Sh87.50 and Sh88 to the dollar.
• In the latest update on the Kenya economy, the World Bank said in 2013 alone the shilling appreciated by 5.7 per cent, eroding the country’s competitiveness.

A member of the Central Bank of Kenya's Monetary Policy Committee (MPC) says the shilling is overvalued by 4.3 per cent, but discounts suggestion this is the main reason for low exports compared to imports.