suffesa monthly review june

Editorial team note:

Here we are once again with the second issue of the Monthly review highlighting some Key

events that happened during the month as well as our index. Enhance your economic edge

whilst reading our flagship magazineWe hope it lives up to expectations as well as draws more

readerships. As usual, all our

communication channels are open so

please don’t hesitate to contact us…Till

next time, enjoy

Some food for thought;

"Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday?" - Anonymous.

“Together we Achieve”

Suffesa| ©2012

Suffesa Editorial Team

Director – Timothy Abwoga

Contact: [email protected]

Consulting Editor – Allan Mutuma Gitonga


Designer – James Phillip


Illustrator & Grammarian – Brian Gachichio Karanja


Analyst: Edel Were

Contacts: [email protected]

Contributing Writers:

ROW

Hazel Nyandia Ndiho

Contacts: [email protected]

Willis Mwenda

Contacts:[email protected]

mailto:[email protected]








Suffesa| ©2012

Contents Wintery June (Economic Highlights)

Feverish Budget

The Dark Knight’s Dilemma

Index Performance

Stock of the month

Stocks to Watch


Suffesa| ©2012

Wintery June Economic highlights…

The month of June in the year at 26 BC originally

had 29 days, but Julius Caesar in 46BC decided to

add an extra day to make it 30 days. The luxuries

ascribed to being a world tyranny then were

unbelievable by their sheer exuberance.

Unfortunately, in modern day democracies our

leaders do not have the luxuries that Caesar

enjoyed. But I digress; I shall come back to this

matter later. This article is meant to give you a short

synopsis of the economic events that took place in

the economy in the month of June.

Let’s start with the easy stuff

The Central Bank Rate (CBR; the benchmark rate

levied by the central bank to commercial banks

borrowing from it) was maintained at 8%. There

have been no major changes in the value of the

shilling against any major currencies. Inflation

nonetheless has increased marginally and closed the

month at the 4.91%.

It's common knowledge, or at least should be, that

national budget is read in the month of June. There

were two major differences about this year's

budget.For one it was read from an ipad, not the

traditional volumes of papers that characterized

other budget readings. Two, it was read by an

individual who actually had an in-depth

understanding of what he was saying. He wasn't the

common politician delivering a key note address

with a rose pinned on his suit.

The rest was pretty much your normal budget

reading. The government is short of raising its

revenues to meet an increased budget (that stood

at about KES 1.4 trillion), the normal tactics of

increases in tax on booze was there and not

forgetting the allocation of money to presidential

campaign promises (Read: Laptops za Standard

One).

Devolution thickened the plot a bit, since the

government put forth the case that it would have to

impose Value Added Taxes (VAT) on the basic

commodities and reintroduce Capital Gains Tax

(CGT) to bridge the shortfall in the budget, you

know, on top of all the borrowing that it will have

done.

My two cents on the matter: the VAT proposition

will not, nay, should not prevail. The Jubilee

government is too young to pass unpopular (tax)

policies especially in the wake of rioting teachers,

disgruntled civil servants, jittery nurses and an

already overtaxed and increasingly disenfranchised

Wanjiku.

My opinion on the capital gains tax reintroduction

shall be expressed two fold. If I was solely to

consider the government's plight, without even

having to convince you using figures and statistics,

levying tax from the from the real estate sector and

the Nairobi Securities Exchange (the two main

markets where capital gains are made by investors)

would result into significant amounts of tax revenue

being collected. But as a future investor in these

two

markets I

am

scared, in

fact I am

praying

that CGT

isn't put

into effect

because it

may

reduce the supernormal profits currently being


Suffesa| ©2012

enjoyed by market participants, of which I intend to

soon be one. Selfish, I know, but I can bet that is

same mind frame land tycoons and major investors

in the NSE have. If that's the case they will want to

safeguard their interests by bribing politicians

(because such investors are usually the political king

makers) but this discussion should be carried on

elsewhere.

Closing with the County Budgets

Our politicians have undoubtedly devolved into

demigods who think that their counties are like the

King Mswati's Swaziland. Presidents of their own

little counties with boots that their subjects should

be queuing to lick. Here is what I propose; I know

different counties have different budgetary

allocation needs. However, to stop our beloved

governors from playing Julius Caesar in the year

2013 after Christ, the central government should set

budgetary allocation quotas as a rule of law. For

example, a maximum of 4% of the county budget

shall be allocated to pay all county government

officials and buy their cars, a minimum of 20% shall

be used to build roads and other infrastructure, a

minimum of 30% shall be used to build hospitals and

improve healthcare facilities in the county, 30% shall

be used for agricultural development etc... Yes the

governors and senators shall scream wolf claiming

that the central government is “deliberately stifling

devolution” and what have you, but that is of

course if I was Caesar of Kenya. I am not, sadly. We

must then contend with our democratically elected

(they like reminding us of that fact) governors

spending millions of dollars buying themselves

lavish limousines and building stately palaces,

allocating peanuts to Wanjiku and her wide plate of

needs.I hope you are sufficiently up to date with the

latest economic events in Kenya.

Suffesa Analyst

Financial Markets

On the stock market front, the improving economy

failed to spur

the market

this time

round. The

market shed

about 7% on

the back of

decreasing

bond yields. Makes you wonder where investors

have stashed their cash this time round. The

turnover at the bourse was down on the back of the

Fed announcing a scale back on its quantitative

easing plans. This led to an abrupt shift in the

direction of flow of funds from emerging markets to

the American economy as yields on Fed treasury

yields rose. This led to markets such as the Nikkei

index declining by as much as 7% in a day. In the

Kenyan markets, the NSE 20 Index was down 7.34%

to 4598.16 points showing signs of slowing down

after a strong first half of the year. The NASI was

down 7.83% to 116.31 from 126.19 registered at the

end of last month.

The money markets have also declined steadily to

trade between 5% and 6% in the month of June. The

91- day T- bill stood at 5.99% as at 28th June 2013. The

Cabinet Secretary however pointed out that Kenya’s

planned Eurobond might face some interest rate

risk amid the events surrounding the month of June.

It takes 20 years to build a reputation and 5 years to ruin it. If you think about that, you’ll do things differently” – Warren Buffet


Suffesa| ©2012

THE BUDGET Feverish…

The month of June in Kenya is always met with a

mixture of

fervour and

hullabaloo

from the

Finance and

Economic

world (or

anyone who

really gives two cents about public policy). There is

always going to be a world of expectations on the

budget reading, with many quarters expecting it to

solve all their economic problems while the more

realistic hoping it’s able to balance out any

irregularities in public sending; something Kenya

never seems to lack. So riding on the back of a new

government and a fistful of campaign promises, the

2013/2014 Kenyan budget is nothing short of

ambitious. The kind of projects that could yield

wonders if successful or spell total disappointment

if it flops.

Spending more than what we earn. That can best

describe the budget. The total estimate stands at

Kshs 1.640 trillion (up by around 200 billion from last

year’s budget) that trickles down to the usual

sectors (national security, education, health…) with

few new appearances; devolution in this case can be

considered the new kid on the block. The budget, in

the past few years has been geared towards the

Vision 2030, a goal that is desperately sought after

by citizens and leaders alike. Therefore, it should

come as no surprise that the dominating sectors in

terms of revenue allocation are the ‘heavy hitters’:

Energy, ICT and Infrastructure which come only

second to Education.

However, those (read disgruntled teachers) thinking

that the bulk of Education spoils will go to

honouring the age old salary agreement between

teachers and government are pitifully mistaken (and

let down), for it’s the free laptops to all class one

pupils that’s on everyone’s lips. As there will always

be a Kenyan gold medal at every Olympics, so must

promises be honoured.It just happens that this is a

very expensive promise. This is not to say that it

cannot be done. Kenyans will just have to hang on

tight in the coming years because the only place

resources for such endeavours will come from are

the citizens’ pockets. Without going into the finer

details, for the year 2013/2014, Kshs 17.4 billion has

been deployed for about 1.35 million laptops. The

project is set to take place in stages, so expect it to

become a regular feature in the coming budget

speeches.

Expectedly, the biggest beneficiary of this year’s

budget allocation is none other than county

governments (or as I like to all it, ‘The People’s

Choice’). The people voted and are now going to

enjoy 30%, which translates to Kshs 210 billion of the

2013/2014 budget through the highly lauded

devolution process. Whether it’s going to reach the

masses is an expose for another day. The reality

however is that, the government has more than

carried out

their

constitutional

right (which

calls for 15% of

the budget to

go to

devolution),

to hand over

spending and

planning

power to the mwananchi. Those alarmed by the


Suffesa| ©2012

massive amount of money that is going into

devolution should note that; the beautiful aspect of

devolution is that it replicates the growth at the

national level to the county level and more so does

this while catering to the specific needs of the

‘countizens’ (county citizens). Hence, if properly

managed, county governments will be able to

address the needs that the national government

failed or refused to see, tapping into natural county

resources, boosting productivity at a micro level and

creating business opportunities in the process. But I

digress…the point is that the money allocated to

counties might look enormously straining on public

spending right now but if properly managed, Kenya

will be leap years ahead of their Vision 2030

schedule.

As with any country that wants to move from the

doldrums of developing to developed,

infrastructure investment is key. The plans to do this

are as aggressive as they are expensive, but not

impossible. Around Kshs 220.8 billion has been set

aside for the construction of roads and

maintenance, the highly anticipated LAPSSET (Lamu

Port- Southern Sudan- Ethiopia Transport) project,

expansion of the Kisumu port and changing the

standard gauge railway, which looks to reduce the

cost of transport up to 300%, among others. As with

all infrastructure projects, it’s expected that these

will open up the country to trade and thereby

bringing in additional revenue that will render the

projects self-sustainable in the coming years. In

other words, a solid investment in infrastructure will

reduce pressure on public spending in the long run,

which is the route I think the Kenyan government is

trying to pursue.

Health is another sector that’s worth mentioning

given the free maternity healthcare policy that is

being rolled out. Its share of the government

spending adds up to Kshs 34.75 billion with the free

maternity care allocation taking up Kshs 3.8 billion

of that distribution. Among other endeavours that

the government hopes to achieve in that area,

include free access to all health care centers and

financing of health care equipment. Agriculture and

rural development have a share of about Kshs 38.07

billion, which from the ‘meagre’ allocation anyone

can deduce that the government is trying to move

away from dependency on the seasonal trade in

agriculture to the more reliable industrial sector.

Despite this change of guard Kenya remains, will do

so for some foreseeable years, a country with an

agricultural backbone, so the government does well

to allocate some of that money to the

mechanization of farming, and increased irrigation

projects.

Along with the other sectors that were mentioned

in the budget speech, the complete breakdown of

the budget looks something like this:

SECTOR ALLOCATION (BNs KSH)

County Government 210

Contributory Pensions 6.9

Contingency Fund 5

Agricultural and Rural Development 38.07

Energy, Infrastructure and ICT 220.8

General Economic Commercial and Labor Affairs 17.5

Health 34.75

Education 273.66

Governance, Justice, Law and Order 105.1

Public Administration and International Relations 149.12

Environmental Protection, Water and Housing 55.41

National Security 74.42

Social Protection, Culture and Recreation 57.2

Parliamentary Service Commission 19

Consolidated Fund Services 380

TOTAL 1,646.93*Source Kenya National Treasury 2013

Now the major issue with any budget is the

revenue. It’s always good to amaze people with

huge projects and ambitious spending plans but


Suffesa| ©2012

basic economics (and something they didn’t teach

in Greece circa 2010 apparently) will tell you that a

balance between spending and revenue is key. “So

where will the money come from?” one will

naturally ask after examining the statistics. Well, this

is where the government usually reaches into the

pockets of its law-abiding citizens who (very

reluctantly) have to give up some personal earnings

for ‘the good of the nation’. In this year’s budget

speech, some of the more controversial ways in

which the government (with the advice of the IMF)

intends to finance its spending is through

introduction of the VAT bill that threatens to end

the regime of tax exemptions and zero rating

through which the prices of basic consumer goods

will be set to rise. Apparently, the public outcry

following the tabling of the bill last year did not

deter the government from reintroducing it.

County Government

13%

Contributory Pensions

1%

Contingency Fund0%

Agricultural and Rural Development

2%

Energy, Infrastructure and

ICT

13%

General Economic Commercial and

Labor Affairs

1%Health

2%Education17%

Governance, Justice, Law and

Order

6%

Public Administration and

International

Relations9%

Environmental Protection, Water and

Housing3%

National Security5%

Social Protection, Culture and Recreation

4%

Parliamentary Service

Commission

1%Consolidated Fund Services

23%

Kenya 2013/2014 Budget

*Suffesa estimates, Kenya National Treasury 2013.

In addition, the government has also set plans to

introduce capital gains tax especially on property

owners, in what can only be an attempt by the

government to cash in on the bubbling volcano that

is the real estate boom, as well as stock market

players. On top of that, the government announced

the introduction of a

new railway

development levy of

1.5% in a move that is

seen by many people

as only making

Kenya’s trade sector

less competitive, a

detriment to

international trade. In all this the Kenya Revenue

Authority is eyeing a total revenue haul of about

Kshs 1.2 trillion which still leaves the big elephant in

the room called deficit, of about Kshs 400 billion,

waiting to be handled. One way the government

plans to handle it is through issuance of bonds and

it's expected that it will be gearing to introduce a

sovereign bond that could be priced at $1 billion or

higher. This will be supplemented by more external

sources such as grants and net foreign financing to

the tune of about 223 billion. In addition, there is the

option of domestic borrowing with the government

setting aside about Kshs 110.2 billion for domestic

interest payments.

For the budget to succeed it requires people to

understand that for every great endeavour that

takes place, many sacrifices have to be made. On

that note, leaders (and national planners) would do

well to acknowledge that you cannot build a great

nation on the backs of tired men; innovation should

be sought after in the coming years to find a way to

increase revenues to fund elaborate national

projects without necessarily denting the people’s

pockets. All in all, this year’s budget looks to be very

promising and if carried out keenly with a healthy

dose of moderation, we expect some good strides

in the economic development of our country.

Note: Figures might not add up due to rounding off,

charts not drawn to scale.

By ROW


Suffesa| ©2012

The Dark Knight’s Dilemma A primer…

atman

fascinates

me because

he is one of the few

superheroes who

aren’t freaks of

nature (i.e.

genetically

modified to be

superhuman). Plus, he looks proper cool in his all-

black ‘uniform’. I can’t help but list 'The Dark

Knight' as my favourite in the Christopher Nolan

reboot of the Batman series (and probably a top

three on my best movies of all time). One of my best

scenes (probably re-watched at least a dozen times)

is the point where the Joker decides to unleash his

penultimate evil deed and leave Batman with a little

haunting moral dilemma. The Joker, mad as ever,

rigs two ferries with powerful explosions; one

carrying a bunch of Gotham prisoners while the

other holding some law-abiding citizens just trying

to get to the other side of the river. Now to make

thing a little bit jokeresque, he gives each ferry the

detonator to the other ferry and announces to each

boat: they either blow up the other boat or save you

lives, or if neither does that by midnight, he would

blow up both ferries! Talk about you modern day

dilemma!

Now consider the game theory of all this (humour

me, I’m a BBS student after all). In prisoner’s

dilemma, two men are caught and arrested for a

crime but the police do not have enough evidence

for a conviction. The police separate each and give

them the option of betraying the other (i.e. pin the

crime on their partner). If one betrays and the other

doesn’t, then the betrayer goes free and the silent

one faces maximum time. If both are silent then they

go free, and if both betray the other, they receive

half the maximum sentence.

Each ferry has the option of pushing the detonator

and saving their lives but ultimately staying with the

guilt of having killed all those people in the other

ferry. Alternatively, they could both not do anything

and both ferries are blown up by a mad man.

Alternatively, both press the detonator and kill each

other. There’s no win-win is there? What would you

do?

The payoff (considering we’re talking Economics)

would probably look something like this:

Most of us would detonate and look to seize a [0, 1]

payoff. Fortunately or unfortunately in the movies

both occupants had a crisis of morality and

eventually decided not to do anything.

And since the movie had to have at least one happy

conclusion, (SPOILER ALERT!) it turns out the joker

didn’t detonate any of the two ferries anyway (he

wanted to

test human

morality

when faced

with a

choice of

survival). It

doesn’t

have to be

a ferry

loaded with

Citizen’s ferry

Don’t

detonatedetonate

Criminal’s ferry Don’t detonate 0,0 0,1

detonate 1,0 0,0

B


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explosive and you facing the near end of your life,

but you have to admit that economics (and logic)

run deep in every aspect of our lives; always weigh

your decisions.

By ROW

Index Performance…. Bears take control…

*Source – Suffesa analysis

he Suffesa SSI Index posted losses for the

month of June amid a largely bearish outlook

on the markets. Inflation was up at 4.91%

from the previous level of 4.14%. The SSI lost 2.96%

to close at 3,589.16 points as at 28th June 2013.

Market Capitalization registered a drop of 9.30% to

close at 84.65Bn from 93.34Bn recorded at the end

of last month. Index P/E declined substantially by

14.65% to 7.70 from 9.02. This was however a lesser

loss than the market which shed more than

expected. The NSE 20 Index and the NASI lost 7.34%

and 7.83% respectively wiping out about 10% of

investor’s wealth at the bourse.

Losses at the bourse were attributed to distribution

activities taking place at the bourse. This was

witnessed mainly on KCB, Equity and Safaricom Ltd.

The SSI index was dragged down by Liberty

Holdings Kenya (NSE: CFCI), TP Serena East Africa

Ltd (NSE: TPSE) and Kenya Power and Lighting

Company (NSE: KPLC) which declined by 23.46%,

13.46% and 13.43%.The index composition remained

the same with no stock moving in or out of the

index. Index composition is displayed below.

*Source – Suffesa analysis

We expect the SSI Index to pick up in the next

month given the stable macroeconomic

environment characterized with a low Central Bank

Rate (CBR) and a robust growing economy. As such

we expect the bourse to rebound as investors come

back to the market. However, recent disruptions in

government operations may put investors on alert

as recent events show that the devolution agenda

may be in jeopardy. This follows on the back of the

stand-off between governors and MPs as well as

teacher’s strike which has disrupted the education

calendar in Kenya.

Firms such as Uchumi Supermarket (NSE: UCHM)

and TPS Eastern Africa Ltd. (NSE: TPSE) are set to

advance on

the back of

an economy

that is

estimated

to grow at

the highest

rate of 6% this year on the back of the tourism

sector and consumer spending.

Indicator Previous Current % change

Stock index Performance % 3,698.83 3,589.16 -2.96%

Market Capitalization ( Kes . Bn ) 93.34 84.65 -9.30%

P/E Ratio 9.02 7.70 -14.65%

Suffesa Stock Index

Index Allocation Weights Price Change

Centum Investment Co Ltd Ord 0.50 0.09% -2.25%

CFC Stanbic of Kenya Holdings Ltd ord.5.00 29.65% -0.78%

Crown Paints Kenya Ltd Ord 5.00 1.57% 0.00%

E.A.Portland Cement Co. Ltd Ord 5.00 5.90% -9.02%

Eaagads Ltd Ord 1.25 AIMS 0.64% 0.00%

Housing Finance Co.Kenya Ltd Ord 5.00 7.03% -5.61%

Kenya Power & Lighting Co Ltd Ord 2.50 33.43% -13.43%

Liberty Kenya Holdings Ltd Ord.1.00 6.06% -23.46%

TPS Eastern Africa Ltd Ord 1.00 9.68% -13.46%

Uchumi Supermarket Ltd Ord 5.00 5.96% -7.32%

100% -7.53%

T


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Stock of the Month Two heads better than one?

Are two heads really

better than one? Do

many hands truly

make light work?

Does the saying

united we stand hold

in real life? These

sayings have been

constantly proven in

the case of office

boardrooms and school work projects. The recent

merger of I&M Holdings and City Trust Ltd. also

portrays that these sayings can indeed be extended

into the financial market as the consolidation forms

a highlight in an otherwise slow month in the NSE.

The reverse takeover of City Trust by I&M Holdings

towards the end of June was met with great

expectations by investors which saw City Trust

shareholders gain Kes.1.6Bn and the share price of

I&M Holdings jump from its debut price of

Kes.93.00 to a high of Kes.103. Closing at Kes.98.00

as per 8th July 2013, I&M Holdings has an upward

potential of about 3-7% given that its target price lies

between Kes.101.00 and Kes.105.00

I&M Holdings is a stock to watch in the medium and

long given its plans to expand into the regional

market. The bank has already established itself in

Kenya, Mauritius, Rwanda and Tanzania and seeks

to grow even

more given its

feasibility studies

for possible

acquisitions or

licenses in

Uganda, South

Sudan and

Zambia. The listing of the firm’s shares will help it

achieve its expansion strategy by creating a

platform for raising additional capital.

In addition, the bank seeks to gain a competitive

edge by focusing on customer service through

provision of

efficient and

quality services to

clients.

It also aims at

enhancing

product

innovation as can

be seen by the launch of the Master card

Multicurrency Prepaid Card in April 2013. This card

has gone a long way in giving the firm a competitive

advantage by being the first of its kind to be

launched in East Africa. The card allows individuals

to hold money in three currencies namely the U.S

dollar, the Euro and the Great British Pound. It is

thus ideal for frequent travellers and useful in

virtually any market across the world.

The bank experienced a 15.76% gain in annual net

profit to end the year 2012 at Kes.5.73Bn. Moreover,

its 1st quarter results for the year 2013 improved

from Kes.1.36Bn to Kes.1.53Bn mainly on the back of

increased loans and advances coupled with an

increase in foreign exchange trading income.

These sound fundamental values of I&M Bank

coupled with its positive financials make the firm a

definite security to watch in the future. In addition,

the increased liquidity of the firm’s shares and the

interim dividend worth a total of Kes.745.5Mn that

is to be paid out at the end of July is expected to

result in a lot of trading activity in this stock in the

NSE.


Suffesa| ©2012

By Hazel Nyandia Ndiho

Stocks to Watch Possible runners…

Holidays anyone?

This month TPS Eastern Africa Limited has made it

on the radar of investors at the bourse with the high

tourist season approaching. The company is a

holding company of a group of hotels within east

Africa under the Serena brand. It operates in Kenya,

Uganda, Tanzania, Rwanda, Zanzibar and

Mozambique with 24 hotels in its portfolio. The

company just concluded an acquisition of a majority

stake (50.26%) in TPS Uganda. TPS Uganda adds to

TPSEAL’s margins and increase’s its room capacity

by 17% and diversifies its business risk in term of

geographical location.

While the strong competition in the hospitality

industry cannot be discounted, TPS is well

positioned to maintain its market share given its

strong brand name and diversified product offering.

Management has also expanded its city hotel circuit

to tap into the growing Meetings, Incentives,

Conferences and Events (MICE) segment.

Further, management has indicated that they plan

to expand the Nairobi Serena hotel by 70 rooms at a

cost of KSH 3 bn. Half of this money will be raised

through a rights issue while the rest will be

borrowed.

The hotel industry has averaged a compounded

annual growth rate (CAGR) of 16% over the last

decade and bed occupancy has averaged at 40%

with a high of 47% in 2007 and a low of 26% in 2008.

Stock Highlights:

Black Gold Bonanza…

There’s currently a lot of excitement about the oil

sector in Kenya. Tullow has just discovered a new

well and quite a number of firms are setting up in

the country to explore for oil. How then can we get

a piece of this oil action?

With the inefficiencies facing Kenol Kobil the only

avenue in the NSE is Transcentury Limited. The firm

is shifting its interests to mining, oil and gas

exploration and infrastructure development. It has

done this by acquiring a 63% stake in Civicon, an

engineering and logistics firm. Civicon has contracts

with firms such as Tullow, EABL and Kengen and it is

bound to benefit from the exploration going on

around given that it provides support services.

Transcentury has gone further and sold its stake in

Chai Bora which is a Tanzania’s leading packaged

teamanufacturer. The sale was made to Catalyst

Partners and the proceeds from the sale will be

92949698

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I&M Share Price

SharePrice

Current Price (28th June) KES 47.25

YTD(%) % 10.63%

Market Cap (Mn) KES 8,308.01

Shares Outstanding 182,174,108

52 Week High KES 61.00

52 Week Low KES 36.00

P/E Trailing x 12.78

EPS Trailing x 3.60

Dividend Yield % 2.83%

TPS Serena


Suffesa| ©2012

redeployed into Trans century’s core divisions-

power infrastructure, transport and engineering.

The firm is also bound to benefit from the

amendment to the Public Procurement Act which

producers of electricity cables to be given priority in

government spending. This benefit will accrue

through East African Cables which is 68.3% owned

by Transcentury and has consistently paid out

dividends to its shareholders.

It is for this reason that Transcentury is stock to

watch going forward. The company is shifting its

business strategically to take advantage of the

lucrative industry of oil exploration.

By Willis Mwenda.

THE END!!

Note: Any Suggestions towards improvement of the Suffesa Monthly review is welcome. We look forward to your views and comments on our Facebook page and contacts alike. If you wish to become an inaugural part of the editorial team at Suffesa Monthly Review or contribute, don’t hesitate to contact the person below:Lilian - +254 719 339 906.

Current Price (28th June) KES 33.00

YTD (%) % 31.91%

Market Cap (Mn) KES 8,492.46

Shares Outstanding 273,950,284

52 Week High KES 37.75

52 Week Low KES 20.00

P/E Trailing x 18.67

EPS Trailing x 1.66

Dividend Yield % 1.29%

Transcentury


Suffesa| ©2012

Review by: Strathmore University Finance and Financial Economics Student’s Assosciation – (SUFFESA) Email –[email protected] Disclaimer: The content provided on this document is provided as general information and does not constitute advice or

recommendation by SUFFESA and should not be relied upon for investment decisions or any other matter and that this document

does not constitute a distribution recommending the purchase or sale of any security or portfolio. Please note that past

performance is no indication of future results. The ideas expressed in the document are solely the opinions of the authors at the

time of publication and are subject to change without notice. Although the author has made every effort to provide accurate

information at the date of publication all information available in this report is provided without any express or implied warranty

of any kind as to its correctness. You should consult your own independent financial adviser to obtain professional advice before

exercising any decisions based on the information present in this document. Any action that you take as a result of this

information, analysis, or advertisement is ultimately your responsibility.

Strathmore University, Student Centre, Clubs office, Madaraka, Nairobi.

Tel: +254 725 471260 (Club Official)

suffesa monthly review june

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