Genghis Capital

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Genghis Capital is an innovative and customer focused Investment Bank licensed by the Capital Markets Authority (CMA). Founded in 2008, Genghis is one of the leading investment banks in Kenya. Since its establishment, Genghis has achieved tremendous growth to offer a well-diversified portfolio of financial services that includes:

  • i. Securities(Equity/Debt) Trading
  • ii. Research
  • iii. Wealth Management services
  • iv. Investment Advisory & Management via the GenCap Unit Trusts
  • v. Corporate Finance & Transaction Advisory services

The Kenyan Capital Markets continue to develop in size, scope and sophistication. With this is an increasing demand for more specialized and personalized brokerage service and we at Genghis Capital are glad to be able to offer you this service. Our strength lies in ensuring our clients are up to speed with developments at the stock market and the economy. Research and technology remains our competitive and comparative advantage hence Experience, Expertise and Professionalism are some of the qualities you can expect from our team.

Gerald Muriuki
  • Gerald Muriuki
EABL East African Br...

Genghis Cross-Asset Weekly Strategy - 8th February 2021

In this week's edition of the Weekly Cross-Asset Strategy Report, we give a recap of the equities, fixed income, currencies and derivatives markets' performance over the past week and our trading ideas for the coming week. Our Momentum, Income and Value equities portfolios continue to outperform the benchmark NSE 20 index. Performance of the Momentum and Income portfolios is ahead of all the benchmark indices including the Nairobi All Share Index (NASI) and Zamara Index. Genghis Trading Ideas ...

EABL EAST AFRICAN BREWERIES LTD
02/08/21 February 8, 2021 5 EN
Gerald Muriuki
  • Gerald Muriuki
EABL East African Br...

East African Breweries Ltd (NSE: EABL) 1H21 Earnings Note

East African Breweries Ltd (NSE: EABL) announced weak y/y performance as expected but a rebound h/h with net revenue down 3.1% y/y (+53.2% h/h) to KES 44.5Bn. The h/h recovery follows relaxation of pandemic-related restrictions in the July-Dec 2020 period with volumes (-5.0% y/y) and sales almost normalizing to pre-pandemic levels in 2019. In addition to the weak volumes, the business grappled with weaker currency, higher direct costs (gross margin at 43.5% from 47.7% in 1H20) and one-off tax pr...

EABL EAST AFRICAN BREWERIES LTD
01/29/21 January 29, 2021 4 EN
Gerald Muriuki
  • Gerald Muriuki
KEGN Kenya Electrici...

KenGen Company Plc (NSE: KEGN) FY20 Earnings Note

KenGen Plc (NSE: KEGN) announced the delayed FY20 audited results. Performance was buoyant as expected with an EPS of KES 2.79 (+132.5% y/y) but normalized (adjusted for the KES 4.6Bn tax credit) EPS growth rate of 16.7% y/y to KES 1.40. The tax credit emanates from capital deduction allowances following completion of the 165MW Olkaria V power plant in November 2019. Electricity revenue backed by the power plant rose 13.4% y/y amidst steady growth in operating expenses (+3.0% y/y). As expected, ...

KEGN KENYA ELECTRICITY GENERATING CO
01/28/21 January 28, 2021 4 EN
Gerald Muriuki
  • Gerald Muriuki
KNRE Kenya Reinsuran...

Genghis Cross-Asset Weekly Strategy - 25th January 2021

In this week's edition of the Weekly Cross-Asset Strategy Report, we give a recap of the equities, fixed income, currencies and derivatives markets' performance over the past week and our trading ideas for the coming week. Our Momentum, Income and Value equities portfolios continue to outperform the benchmark NSE 20 index. Performance of the Momentum and Income portfolios is ahead of all the benchmark indices including the Nairobi All Share Index (NASI) and Zamara Index. Genghis Trading Ideas ...

KNRE KENYA REINSURANCE CORP LTD
01/25/21 January 25, 2021 5 EN
Gerald Muriuki
  • Gerald Muriuki
EABL East African Br...
EQTY EQUITY BANK ... (+5)

GENGHIS CAPITAL PLAYBOOK 2021: Navigating the Now Normal

Dear Investors,No, that’s not a typo.  The theme is just what it is, ‘Navigating the Now Normal’. The COVID-19 shock upended the world last year with far-reaching consequences; an earthquake of a magnitude 9 comes closer. While the rollout of the vaccines this year are meant to be a shot in the arm (no pun intended) to global economies, we are alive to the fact that the pandemic’s scars will still linger longer. Not only has COVID-19 exposed the domestic economy’s soft spots, but the spillover e...

EABL EAST AFRICAN BREWERIES LTD
EQTY EQUITY BANK
KCB KCB GROUP LTD
ABSA ABSA BANK KENYA
SCOM SAFARICOM LTD
01/20/21 January 20, 2021 25 EN
Churchill Ogutu
  • Churchill Ogutu
EUR 288.03

4Q18 Macro-Economic & Fixed Income Report

EXECUTIVE SUMMARY In this report, we review Kenya’s macro-economic environment in 3Q18 which was salient with fiscal policy risks. We also provide our 4Q18 outlook of key macro-economic variables. Please see the highlights below.Inflationary pressures on the horizon: We expect a build-up in inflationary pressures in the final quarter of the year issuing from first-round and second-round shocks on elevated fuel pump prices at the domestic front. This has been triggered by the twin rising global o...

11/09/18 November 9, 2018 15 EN
Patrick Mumu
  • Patrick Mumu

MPC Outlook Note - September 2018

The Monetary Policy Committee (MPC) is set to meet on Tuesday 25th September 2018 to determine the course of the key policy rate, the Central Bank Rate (CBR). The committee last met on July 30th 2018 and cut the CBR by 50bps to 9.0%, citing room for more accommodative monetary policy, on the back of a stable macroeconomic environment. Further, private sector credit growth (PSCG) improved to 4.3% in June, following a similar 50bps cut on the CBR in the March meeting. We expect the MPC to maintain...

09/24/18 September 24, 2018 3 EN
Churchill Ogutu
  • Churchill Ogutu
EUR 288.03

3Q18 MACRO-ECONOMIC & FIXED INCOME REPORT

EXECUTIVE SUMMARY In this report, we review Kenya's macro economic environment in 2Q18 which has been broadly stable. We also provide our 3Q18 outlook of key macro economic variables. Please see below highlights.   Kenya Economic Growth: We maintain our 2018 Kenya real GDP growth at  5.25% - 5.75% driven by recovery in the Agricultural sector and continued performance in the Service sectors. Inflation: We expect a slight uptick in inflation from the average 6.25% in 2H17 to 6.50% in 2H18 prope...

07/30/18 July 30, 2018 18 EN
Churchill Ogutu
  • Churchill Ogutu

WEEKLY FIXED INCOME REPORT - WEEK 11

Weekly Wrap: Secondary market turnover increased 28.18%w/w to settle at KES 14.75Bn. The 2018 infrastructure bond (IFB) continued its stellar run in the course of the week, contributing 29.82% of the total turnover. The top five traded bonds were dominated by short-end maturities as banks sought home for liquidity. Sell-Buy back transactions in the week were mainly on IFB1/2015/12Yr which accounted for 70.70% of the total KES 621.90Mn turnover. USDKES: The shilling traded in a tight range ag...

03/19/18 March 19, 2018 2 EN
Churchill Ogutu
  • Churchill Ogutu

WEEKLY FIXED INCOME REPORT - WEEK 10

Weekly Wrap: Secondary market turnover increased by 9.65%w/w to KES 11.51Bn. The trades were mainly concentrated on the 2018 infrastructure bond (IFB) paper which accounted for 40.07% of total turnover. Offer yields on the IFBs were elevated in the earlier part of the week which buoyed the papers. The Consultative Forum of Domestic Debt met in the course of the week and as per market expectation, has issued benchmark issues of 5 years and 20 years seeking to raise KES 40Bn. USDKES: The shill...

03/12/18 March 12, 2018 2 EN
Gerald Muriuki
  • Gerald Muriuki
EABL East African Br...

Genghis Cross-Asset Weekly Strategy - 8th February 2021

In this week's edition of the Weekly Cross-Asset Strategy Report, we give a recap of the equities, fixed income, currencies and derivatives markets' performance over the past week and our trading ideas for the coming week. Our Momentum, Income and Value equities portfolios continue to outperform the benchmark NSE 20 index. Performance of the Momentum and Income portfolios is ahead of all the benchmark indices including the Nairobi All Share Index (NASI) and Zamara Index. Genghis Trading Ideas ...

EABL EAST AFRICAN BREWERIES LTD
02/08/21 February 8, 2021 5 EN
Gerald Muriuki
  • Gerald Muriuki
EABL East African Br...

East African Breweries Ltd (NSE: EABL) 1H21 Earnings Note

East African Breweries Ltd (NSE: EABL) announced weak y/y performance as expected but a rebound h/h with net revenue down 3.1% y/y (+53.2% h/h) to KES 44.5Bn. The h/h recovery follows relaxation of pandemic-related restrictions in the July-Dec 2020 period with volumes (-5.0% y/y) and sales almost normalizing to pre-pandemic levels in 2019. In addition to the weak volumes, the business grappled with weaker currency, higher direct costs (gross margin at 43.5% from 47.7% in 1H20) and one-off tax pr...

EABL EAST AFRICAN BREWERIES LTD
01/29/21 January 29, 2021 4 EN
Gerald Muriuki
  • Gerald Muriuki
KEGN Kenya Electrici...

KenGen Company Plc (NSE: KEGN) FY20 Earnings Note

KenGen Plc (NSE: KEGN) announced the delayed FY20 audited results. Performance was buoyant as expected with an EPS of KES 2.79 (+132.5% y/y) but normalized (adjusted for the KES 4.6Bn tax credit) EPS growth rate of 16.7% y/y to KES 1.40. The tax credit emanates from capital deduction allowances following completion of the 165MW Olkaria V power plant in November 2019. Electricity revenue backed by the power plant rose 13.4% y/y amidst steady growth in operating expenses (+3.0% y/y). As expected, ...

KEGN KENYA ELECTRICITY GENERATING CO
01/28/21 January 28, 2021 4 EN
Gerald Muriuki
  • Gerald Muriuki
KNRE Kenya Reinsuran...

Genghis Cross-Asset Weekly Strategy - 25th January 2021

In this week's edition of the Weekly Cross-Asset Strategy Report, we give a recap of the equities, fixed income, currencies and derivatives markets' performance over the past week and our trading ideas for the coming week. Our Momentum, Income and Value equities portfolios continue to outperform the benchmark NSE 20 index. Performance of the Momentum and Income portfolios is ahead of all the benchmark indices including the Nairobi All Share Index (NASI) and Zamara Index. Genghis Trading Ideas ...

KNRE KENYA REINSURANCE CORP LTD
01/25/21 January 25, 2021 5 EN
Gerald Muriuki
  • Gerald Muriuki
EABL East African Br...
EQTY EQUITY BANK ... (+5)

GENGHIS CAPITAL PLAYBOOK 2021: Navigating the Now Normal

Dear Investors,No, that’s not a typo.  The theme is just what it is, ‘Navigating the Now Normal’. The COVID-19 shock upended the world last year with far-reaching consequences; an earthquake of a magnitude 9 comes closer. While the rollout of the vaccines this year are meant to be a shot in the arm (no pun intended) to global economies, we are alive to the fact that the pandemic’s scars will still linger longer. Not only has COVID-19 exposed the domestic economy’s soft spots, but the spillover e...

EABL EAST AFRICAN BREWERIES LTD
EQTY EQUITY BANK
KCB KCB GROUP LTD
ABSA ABSA BANK KENYA
SCOM SAFARICOM LTD
01/20/21 January 20, 2021 25 EN
Churchill Ogutu
  • Churchill Ogutu

Weekly Fixed Income & Money Market - Week 45

Weekly Wrap: Secondary market turnover retreated 39.1% w/w to close at KES 7.67Bn with executed trades cutting across the whole spectrum of the yield curve. The top five traded bonds accounted for 58.6% of the total activity of the week’s turnover. The market ended the week on a subdued note, as the bid-ask spread widened, signaling uncertainty in the market around this month’s auction and the pressure the shilling has seen over the last two weeks. The Consultative Forum for Domestic Debt sat d...

11/12/18 November 12, 2018 2 EN
Grace Ndungu
  • Grace Ndungu

Weekly Market Monitor-Issue 34/2018

July Treasury data shows that tax income hit KES 98.97Bn, lower than pro-rated KES 140.86Bn. Recurrent expenditure hit KES 49.48Bn in the first month of the current fiscal year. Public debt repayments, under the Consolidated Fund Services, were at KES 68.24Bn in July. We view that efforts towards fiscal consolidation with austerity measures may hamper growth prospects that may offer headwinds for revenue mobilization. ARM Cement Plc (NSE: ARM) was placed under the administration of (PwC) foll...

08/27/18 August 27, 2018 5 EN
Churchill Ogutu
  • Churchill Ogutu

WEEKLY FIXED INCOME REPORT - WEEK 3

Weekly Wrap: Secondary market turnover declined 46.02% w/w in the week to record KES 5.24Bn. The trades were spread out across the yield curve with the top five traded bonds accounting for 63.23% of total activity. This month’s issue – IFB1/2018/15Yr (15-year tenor infrastructure bond) – was announced in the course of the week. We hold the view the primary bond issue also led to the subdued secondary market turnover. USDKES: The shilling’s performance improved marginally in the week crossing...

01/23/18 January 23, 2018 2 EN
Churchill Ogutu
  • Churchill Ogutu

WEEKLY FIXED INCOME REPORT - WEEK 15

Weekly Wrap: Secondary market turnover rebounded 50.56% w/w to close at KES 11.03Bn. The trades were boosted by infrastructure bonds and shorter duration papers. Demand overhung is still marked at the short end of the yield curve. The top five bonds accounted for 56.52% of the total turnover with the IFB1/2018/15Yr paper continuing being the dominant paper. Sell buyback transactions totaled KES 731.5Mn representing 6.63% of the week’s total activity. USDKES: The shilling touched a 3-month lo...

04/16/18 April 16, 2018 2 EN
Churchill Ogutu
  • Churchill Ogutu

WEEKLY FIXED INCOME REPORT - WEEK 14

Weekly Wrap: Secondary market turnover narrowed 22.56% w/w to close at KES 7.33Bn. This was in line with our expectation as a number of institutional investors are mapping out 2Q18 investment strategies. The top five bonds accounted for 70.85% of the total turnover with the IFB1/2018/15Yr paper contributing 25.42% of the week’s turnover. The market is currently skewed to the short-end segment, with the trend likely to spill over in the coming week. USDKES: The shilling traded in a tight rang...

04/09/18 April 9, 2018 2 EN
Churchill Ogutu
  • Churchill Ogutu

WEEKLY FIXED INCOME REPORT - WEEK 13

Weekly Wrap: Secondary market turnover rebounded in the week, edging up 33.52% to settle at KES 9.46Bn. The top five bonds accounted for 55.20% of the total turnover with the IFB1/2018/15Yr paper continuing its dominance. CBK announced a TAP Sale on the March primary bonds issue seeking KES 8.5Bn to plug the deficit from the initial auction. CBK received and accepted bids worth KES 15.51Bn; an indicator of investor preference to the two benchmark bonds. USDKES: The shilling clawed back gains...

04/03/18 April 3, 2018 2 EN
Churchill Ogutu
  • Churchill Ogutu

WEEKLY FIXED INCOME REPORT - WEEK 12

Weekly Wrap: Secondary market turnover dipped 51.97%w/w to settle at KES 7.09Bn. The IFB1/2018/15Yr paper continued its dominance to account for 25.84% of the week’s activity with its yield trending downwards. The turnover decline was mainly attributed to the then-ongoing primary bond sale that closed out in the week. The result showed an oversubscription of 128.46%. USDKES: The shilling traded in a tight range against the US dollar in the course of the week. CBK foreign exchange reserves na...

03/26/18 March 26, 2018 2 EN

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