This research report was prepared by the Research Department of Old Mutual Securities Limited. Old Mutual Securities Limited is a securities trading company licensed by the Capital Markets Authority (Kenya) for the purpose of facilitating trade on the Nairobi Securities Exchange.

Here are our views on the news making headlines today for Kenya:
Telecommunications giant Safaricom touched a new all-time high of Sh16.10 in intra-day trading on a volume of 6.6 million shares on the Nairobi Securities Exchange (NSE).

Our View: Safaricom’s share price rally is being driven by investors’ anticipation of the 2014 full year ending March results, which will be announced in May this year. We forecast revenue growth buoyed by strong growth in Mpesa which is mainly derive by the merchant business growth. Data is also expected to grow after the increased spectrum through the Security deal and the recently acquired Essar’s spectrum which will also lead to improved quality. Voice revenue grew by 11.6% last year however we do not expect to see the same growth rates in this year as last year was a one off lift revenue as their voice quality improved from 3rd quality to 1st quality based on their Best Network in Kenya program 

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