Safaricom is closing the decade with its share price hitting an all-time high of KES 32 and a market capitalization of KES 1.27T.
Safaricom was trading at KES 3 at the beginning of the decade in 2010 with a market capitalization of KES 120bn. The NSE opened the decade with 55 listed companies.
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Few 2000 to 2009 decade favourites miss out from the list of NSE top performers in this decade: Nation Media Group, Bamburi and ARM Cement. This just shows how much things can change in a decade. Meanwhile, Longhorn has found a way out of disruption by successfully implementing digital transformation as its international business picks up.
In its first full decade with James Mworia as CEO, Centum has seen its assets grow 12 fold from KES 8.3bn to KES 101bn. The current price of KES 28 is however less than half the net asset value per share of KES KES 75.5. Other notable counters trading below their net asset value or book value per share include Diamond Trust Bank, Unga Group, I&M, Jubilee Insurance, Liberty Insurance and the only listed REIT, Fahari I-REIT.
The Fintech decade
The banking sector had a progressive decade as the convergence of telecommunications and banking sectors came to life. Mshwari was launched in 2012, followed by KCB Mpesa in 2015. There was Equitel in 2014 and then Timiza from Barclays in 2018. Fuliza came it finish off the decade in 2019. This was the fintech decade for the Kenyan financial services sector. Cooperative Bank came up with MCoop Cash app while HF Group launched HF Whizz and other banks had their digital banking initiatives too.
The Rate Cap
There was a bump in the banking sector in 2016 in the name of the interest rate cap and a slowdown in real estate in between that conspired to make the second half of the decade tough for Kenyan banks but they tightened their belts and managed with major layoffs and slowdown in lending to the private sector. They are closing the decade relieved as the banking sector interest rate cap has been technically repealed.
Consolidation
CFC and Stanbic banks kicked off the decade with the merger, starting off consolidation in the sector. Gtbank, I&M, DTB and Mwalimu Sacco acquired Fina bank, Giro bank, Habib bank and Equitorial Commercial banks respectively.
Oriental Commercial bank was acquired by bank M of Tanzania while CBA and NIC merged to close the decade as NCBA. Barclays is transitioning to Absa Kenya Ltd as its ownership changes hands from Barclays Plc in the UK to Absa group in South Africa.
Kenyan Banks become of Age
Joshua Oigara showed us that the elephant that is KCB can dance in the undulating rivers of digital banking while James Mwangi showed us that a Kenya born breed can flex its muscles in Africa’s Savanna. I&M Holdings and DTB Group continued with their strength on income from subsidiaries.
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This decade also ushered in agency banking which was introduced in the Finance Act 2009 and became effective from 1st May 2010 after CBK issued guidelines. CBK also allowed several fintech and digital banking initiatives by giving test and learn approval. These included Mshwari(2012), KCB M-PESA(2015), Equitel(2014), Pesalink (2017),M-ABIKA (2017), HF Whizz(2018), Timiza(2018), Fuliza(2019), Stawi(2019) etc.
A mixed decade for insurance sector
After the 2013/14 bull run, Insurance companies have seen their profits and share prices go in tandem away from their multiyear highs but they are closing the decade with a glimmer of hope and a possible reversal.
A decade to forget for govt controlled companies.
Kengen is the only of NSE listed companies where govt has got a majority stake that is closing a decade without issuing a profit warning and with positive sentiments. It has also had very successfully succession planning.
KPLC and Kenya Re are bruised but we remain hopeful. KQ will open the new decade with the hope for nationalization on the back of two key strategic failures in project Mawingu and a star-studded turnaround that was not to be.
Hanging in there
Carbacid and BOC are hanging in there with their current profits after tax below what they were at the beginning of the decade in 2010.
The shareholders, creditors and management of Mumias, Deacons, Uchumi, ADSS and ARM will close the year in worse position than it started as the companies consistently recorded poor financial results with invest losing billions of Kenya Shillings in shareholder value and debt owed to creditors.
Companies that are closing the decade under administration include Deacons, ARM and Mumias.
Companies that once traded over Ksh 10 and are now closing the decade while trading for less than KES 2 include Deacons, Eveready, Nairobi Business ventures ,Uchumi Supermarket, and Home Afrika.
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