MMFs Overtake NSE Stocks in Popularity as Java House is Put on Sale for the 4th Time

In Summary

• Unit trusts have surpassed stock accounts in popularity, driven by high yields and increased investor awareness.
• Java House is set for its fourth ownership change, with Alterra Capital and Phatisa acquiring control to drive its growth further.
• KDF’s PAYE system aims to streamline resources and improve meal service efficiency for military personnel.
• KNEC has set strict guidelines and deadlines for the 2025 KPSEA and KILEA registration, warning schools against malpractice and late submissions.
• KNEC’s mid-year KCSE re-sit policy has drawn criticism over its costs, timing, and lack of consultation.
• Starlink’s aggressive expansion has doubled its market share in Kenya, driving a surge in satellite internet adoption.
• KCB and Mastercard’s multi-currency prepaid card aims to simplify global transactions and enhance financial convenience for international spenders.

Kenya has witnessed a surge in unit trust investments, with the number of investors rising 7% to 1,299,300 by September 2024, overtaking stock market accounts, which decreased to 1,286,500. Data from the Capital Markets Authority (CMA) highlights the appeal of unit trusts due to double-digit returns, with money market funds yielding over 15% recently, compared to the declining performance of equities. In a report by The Business Daily, assets under management in unit trusts grew 54% year-on-year to Ksh316 billion, driven by increased awareness, technological accessibility, and attractive returns post-Covid. 

The Kenya National Examination Council (KNEC) has announced that the registration for the 2025 Kenya Primary School Education Assessment (KPSEA) and Kenya Intermediate Level Education Assessment (KILEA) will open today Monday, January 27 and close on Friday, February 28. Capital Business reports that Grade 6 learners must register afresh through the KNEC portal, with authorities warning against late registration and malpractice, including registering ghost candidates. Schools are urged to ensure accuracy in learner bio-data and complete mandatory online transfers before the deadline. The government will cover assessment fees for citizens, while non-citizens will pay Ksh750. 

UK-based private equity firm Actis has agreed to sell Java House to Alterra Capital and Phatisa, two Africa-focused PE funds, for an undisclosed sum. According to The Business Daily, Alterra will hold the majority stake, while Phatisa will have controlling rights despite a minority stake. This marks the fourth ownership change for Java since its founding in 1999 and highlights its growth to 73 branches across Kenya, Uganda, and Rwanda. The deal awaits approval from the Comesa Competition Commission.

The Kenya Defence Forces (KDF) has announced plans to replace its food subsidy programme with a Pay-As-You-Eat (PAYE) system starting July 1, 2025, citing inefficiencies and significant resource wastage under the current model, according to The Daily Nation. According to KDF, this shift is expected to save taxpayers between Ksh2 billion and Ksh3 billion annually while improving personnel welfare by offering tailored meal options. Soldiers in operational and training areas will not be affected, and cashless payment systems such as Pre-Loaded Paybill numbers and Point-of-Sale machines will be implemented by March 2025 to enhance efficiency and accountability.

KCB Kenya, in partnership with Mastercard, has unveiled the country’s first multi-currency prepaid card that supports 11 major currencies, including Ksh, USD, GBP, and EUR, as reported by The Star. The card is designed to simplify international transactions for frequent travellers, online shoppers, students, and businesses by offering favourable exchange rates, reduced conversion costs, and enhanced convenience. Users can load specific amounts to control spending and access real-time exchange rates, all managed through a self-serve portal.

US billionaire Elon Musk’s Starlink has doubled its market share in Kenya within three months, controlling 1.1 percent of the satellite internet market by September 2024, up from 0.5 percent in June. Starlink added 8,723 new subscribers during this period, surpassing its growth for the full year to June, and climbed from position 10 to tie at position seven in market dominance rankings. Satellite internet subscriptions in Kenya grew by 104.7 percent during the same period, driven by Starlink’s introduction of a cost-effective equipment rental option, in a report by The Business Daily. 

The Standard reports that the Kenya National Examinations Council (KNEC) introduced a mid-year KCSE re-sit policy during the release of the 2024 KCSE results, an announcement made by Education Cabinet Secretary Migos. The policy, aimed at giving candidates a second chance to improve their grades or retake missed exams, has faced criticism over inadequate preparation time, high registration fees (Ksh7,200), logistical challenges, and lack of stakeholder consultation. Some stakeholders have termed the move rushed and discriminatory, with legal experts predicting court challenges.