Toyota Vitz for one million…come on now. 😄
Belated happy new year my dear reader. This year promises a plethora of finance initiatives that i hope we will be able to dissect together and participate in savings and investments that not only make sense, but that feed our curious minds and pockets.
Tighten those finance belts and let’s get started with the news that it could cost you approximately shs.1 million to own a toyota vitz in the near future.😄
Paying more for the latest model cars
The current laws allow for importation of second hand vehicles with an age limit of eight years. That means if you were to buy a used one litre petrol powered toyota vitz currently, you would pay an approximate 600,000. (8 years back, that’s a 2012 model). However, the trade cabinet secretary Peter Munya has directed KEBS to lower the age limit of used imported vehicles to five years. That means you will only be able to import vehicles whose year of manufacture is 2015. Therefore, you will have to cough out approximately shs.1 million to import a 2015 toyota vitz model.
And as we all know, we Kenyans prefer used cars from abroad mostly because of their affordability. Therefore, if this proposed draft goes through, there will be a rise in demand for new cars (the 2015 models). With the rise in demand, car manufacturers in countries like Japan will have to raise the prices of these newer models. Toyota Harrier 2015 model costs 4.3 million compared to a 2012 model that costs 2.8 million.
Equity beats Brewer for second spot
The banker edges the brewer! Equity bank and EABL have in recent months competed for second spot in the Nairobi Securities Exchange with EABL often stealing the show. However, as at Friday last week, Equity out-muscled EABL by having a higher market cap of sh139.4 billion compared to EABL’s Sh 129 billion. To Equity’s investors this brings a smile to their faces as the higher market cap has been rallied by a higher share price over time. However, the bourse is one fascinating market and the tables can turn very quickly. But for know, we give credit where it’s due😂. Safaricom continue to remain in top spot and it’s very difficult to see a change in fortunes at that top spot as Saf’s market cap is more than for the other 13 companies COMBINED. (Nawe kila wakati?)
More of China’s products?
The Chinese government has provided a very good incentive to its home based manufacturing companies by cutting corporate taxes. This means that these companies will now be able to produce more in “improved” working environments. Additionally, the government has reduced the amount of reserves kept to be kept in their banks which gives an opportunity for individuals and companies to borrow more and invest. With our unending appetite for China’s imports ( China being our largest importer at 291.8 billion according to recent statistics), Kenya’s trade deficit continues to surge which is really hurting our local manufacturers.
The recent decision to import high capacity buses for the planned bus rapid transit project in Nairobi rather than giving the 12 local bus body builders the opportunity is just another rub on the wounds of local manufacturers which continues to evidence the minimal support by our government to boost some local sectors.
Another Merger & Acqusition
After the huge headlines of the proposed merger between CBA and NIC, and most recently CBA to also buy Jamii Bora bank, another M&A has caught the headlines after a planned acquisition of KenolKobil(KENO) by French Firm Rubis Energie. Unlike the other deals, if this takeover is successful, KENO will no longer trade in the NSE.
However, the current rise in M&A’s provides a good research area and investment opportunity.
That’s all for the finance news in Kenya today.
This is the first finance blog for 2019 and am thankful for reading through. 😊
This week’s topic is,”are you paying more for mobile loans and by how much?” We will cover that on Wednesday God willing. See you then!! 😊
frank.finance 