AXYS INVESTMENT BANK Research Updates

Today’s News Highlights • NSSF reveals Sh38bn stake in Kenya Pipeline after IPO The National Social Security Fund (NSSF) pumped Sh36.3 billion into the initial public offering (IPO) of Kenya Pipeline Company (KPC), unmasking the identity of the top shareholder who earlier opted to remain secret. The State-backed pension scheme got a 22.2 percent stake in the freshly listed firm, making it the second-largest shareholder behind the government, regulatory documents seen by the Business Daily show. About 90 percent of the top owners of KPC Plc bought their shares through proxies during the firm's IPO, keeping the identity of the investors anonymous. Regulatory filings show that 18 of the top 20 shareholders of KPC are under nominee accounts after demand from Kenyan institutional investors and the Ugandan government helped the IPO become oversubscribed. Without the Sh36.3 billion from the NSSF and Uganda's Sh33.8 billion, the IPO would have collapsed on failure to hit the success level. It was required to sell shares worth Sh53.1 billion of the Sh106.3 billion shares that were on offer, in what was East Africa's biggest IPO in local-currency terms. • Police, KRA gain access to parcels ferried by Uber and Bolt App-based courier platforms such as Uber, Bolt, Glovo and Little will from next month be required to verify and record the contents of customer parcels that the taxman, police and communication watchdog will access. The Communications Authority of Kenya (CA) has issued new licensing requirements that demand that online courier platforms record the contents of parcels, sender details, and recipient information. The firms will keep records and provide them to the communications regulator, the Kenya Revenue Authority (KRA), and the police upon request part of ongoing efforts to curb illicit trade in items like drugs and firearms. • Boon for hoteliers as confirmed room bookings rise Local hoteliers project higher room bookings in the four months to November 2026, reflecting a stronger conference season as international meetings and corporate travel lift demand for accommodation. A new Central Bank of Kenya (CBK) survey shows average forward bookings for August through November rose to 56.25 percent, up from 49.5 percent in a comparable period last year. Forward bookings in the hotel industry refer to confirmed room reservations secured for future dates. The bookings averaged 59 percent in August, 53 percent in September, 56 percent in October and 57 percent in November, against 49, 52, 46 and 51 percent respectively in the corresponding months of 2025. • KQ half-year loss widens to Sh16bn as costs spiral Kenya Airways' net loss for the six months to June 2026 jumped 31.9 percent to Sh16 billion after its costs grew exponentially to a record level due to the Middle East conflict. The national flag carrier's costs during the period surged by 12 percent to a record Sh97.7 billion, up from last year's Sh86.7 billion, pushing up its losses from the Sh12.2 billion reported in the first half of 2025. This was largely due to a surge in fuel costs, which rose to Sh29 billion, accounting for roughly 32 percent of its operating costs, up 66 percent from Sh17.47 billion, which was 22 percent of operating costs. • Blow to graduates as CEOs freeze hiring on jobs market pause More than three-quarters of Kenya's chief executive officers have signalled little appetite to expand fulltime jobs in the coming months, dealing a fresh blow to thousands of jobless graduates in an increasingly crowded labour market. Findings of the latest Central Bank of Kenya's CEOs Survey suggest that 77.1 percent of firms are planning to keep employee numbers unchanged in the third quarter, the highest in the series dating back to at least January 2021. It exceeds the previous high of 75.3 percent recorded in July 2024, when businesses were operating amid intense political and economic uncertainty triggered by youth-led protests against tax increases and high cost of living. Courtesy: of Business Daily