Connect with us

Hi, what are you looking for?

Cyprian Is Nyakundi

Business

Kenyans Stuck With Useless Sh100 Billion Bonds That Can’t be Cashed

Five years after investing in Imperial bank’s Sh2 billion corporate bond, the investors were now supposed to be counting down to payday. However,  Imperial Bank, whose bond was issued in August 2015, is still stuck in insolvency.

This is not the only institution that has not paid out billions, others like Chase Bank, cement manufacturer Athi River Mining (ARM), and microfinance company Real People have all left Kenyans devastated.

Chase Bank for instance has a deficit of Sh4.8b in corporate bonds.

This has, in turn, killed all the confidence in corporate bonds and commercial papers, which are among the most lucrative sources of finances for companies seeking to expand.

Banks, which were regularly tapping into the corporate bond market, have now sought different ways of recapitalizing their businesses.

Businesses have then been forced to get their financing from the more costly alternative of borrowing direct loans from banks, avoiding corporate bonds.

The Capital Markets Authority (CMA) in its 2017-18 annual report blamed the development on the slow process of solving the insolvencies of Imperial and Chase banks, noting that these delays had negatively affected the corporate bond market.

As a result, the regulator explained there has been little interest in corporate bonds as a debt financing instrument.


Would you like to get published on this Popular Blog? You can now email Cyprian Nyakundi any breaking news, Exposes, story ideas, human interest articles or interesting videos on: [email protected]m. Videos and pictures can be sent to +254 710 280 973 on WhatsApp, Signal and Telegram.


Comments

comments

 
Click to comment

Facebook

You May Also Like

News

Netizens are up in arms against the Kenyan Urban Roads Authority (KURA) due to some of their shocking engineering concepts within the city. On...

News

“As the Swahili saying goes,” Ngoma ikivuma sana, ina karibia kupasuka”. The sounds from the drums of corruption at Nyali School (located along Links...

Fraud

If you are a pillion passenger, you should note that you are a potential statistic to the new trend where bodaboda riders, in an...

Opinion

Guest Writer, Isn’t it strange that our normal rain patterns within Nairobi and a radius of about 80KM, rains which used to be predictable,...

Copyright © 2021 Cyprian Is Nyakundi.

%d bloggers like this: