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:
Centum to inject Sh1.2bn bond proceeds into K-Rep. Other Centum bond proceeds will go towards the investment firm’s real estate project in Entebbe, Uganda and power projects in Lamu and Olkaria, Nakuru.

Our View: We believe this Short- to medium-term milestones will enhance capital appreciation and this news augurs well for the company. The company strategy for the next 5 years is to develop, scale and grow investment capabilities in 8 new sectors, Agriculture, Education & Health, Energy, Financial Services, FMCG and ICT and further grow their existing Real Estate investments which portends well for the company’s performance going forward. Centum intends to generate 35%+ annualized return over the strategic period (2015-2019) and grow its Total Assets KES 120Bn [USD 1.38Bn] by 2019.We believe Centum’s predominantly Kenya-focused investment portfolio is likely to see capital appreciation over the next 30 months.
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