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:
Kenya's Fanisi Capital invests USD 2.1 mln in food firm. Kenyan private equity house Fanisi Capital said on Thursday it had invested $2.1 million in a mid-sized local food distribution and processing firm that sells pizzas, berries and fresh juice. With its USD 50 million fund, Fanisi is one of the emerging private equity groups focused on East Africa's fast-growing economies underpinned by consumer demand.

Our View: FMCGs sector continues to demonstrate strong growth momentum in the medium term and is expected to contribute significantly to the economic growth. Kenya has been ranked third in a global survey conducted by Bloomberg projected to register fast growth this year at 6%, though in our view the key risk to this remain high levels of insecurity and inadequate rainfall. Sectors linked to the rise of the African consumer, particularly those in the FMCG space, are particularly attractive to PE firms. Over the last several years, the emerging markets have evolved into a critical pillar of global investors’ strategies. As growth rates declined across most of the developed world in the aftermath of the credit crunch, private equity (PE) firms turned to emerging markets as an engine of growth.

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