Kenya Commercial Bank’s Shares Surge to Record: Nairobi Mover

Kenya Commercial Bank Ltd. (KNCB), East Africa’s biggest lender by assets, outlets and profit, climbed to the highest on record on bets income will keep growing this year.

The shares gained 3.9 percent, the most on a closing basis since March 5, to 33 shillings by 1:45 p.m. in the capital, Nairobi. About 2.12 million shares traded or 127 percent of the three-month daily average.

“It is trading below our fair value, and our fair value is 34 shillings,” Francis Mwangi, head of research at Nairobi- based Standard Investment Bank Ltd., said in a phone interview today. “We expect earnings to grow, mainly driven by focus on increasing the number of products being used by each customer and cost-cutting.”

The bank on Nov. 30 promoted Chief Financial Officer Joshua Oigara to chief executive officer effective Jan. 1.

The lender’s earnings in the nine months through September surged 35 percent to 8.69 billion shillings ($100.2 million).

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

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