Strathmore Shines at CFA Competition with bold Safaricom bet

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Ah, the sweet, sweet scent of victory! Strathmore Institute of Mathematical Sciences carried bragging rights at the CFA Institute Research Challenge, outshining over 18 teams from six Kenyan universities. The prestigious competition challenges university students to conduct a comprehensive analysis of a publicly traded company. Afterward, they present their investment recommendations—basically whether to buy or sell the stock—to a panel of industry experts.

Sounds simple? Think again. It’s anything but.

Now, let’s zoom in on the stars of our story: The team consists of five financial engineering students: Adrian Wachira, Sean Koome, Angela Mumbi, Karii Ngugi, and Laura Namata. This year’s challenge centered around valuing Safaricom PLC (SCOM),  Kenya’s largest telecommunications company. Over the years, Safaricom has carved a path of consistent growth, impressive profits, and positive social impact. They have also earned global recognition for their environmental sustainability and governance impact.

However, amidst the rosy details, the economic landscape in  Kenya and Ethiopia is turbulent. This includes fluctuating interest rates, unpredictable currency movements, and the looming threat of inflation, all of which present formidable obstacles. These conditions pose a substantial risk to the company.

When others saw chaos in this scenario, Team E saw a canvas. And they painted it with recommendations that were a culmination of rigorous analysis, a deep understanding of global economic undercurrents, and probably- a healthy dash of audacity.

Their verdict? A bold, contrarian bet: Buy the stock.

A move that could easily have been scoffed at or dismissed—unless you understood the depth of their analysis and understanding of market dynamics. Fortune, as they say, favors the bold. And amid the tumult of shilling fluctuations and challenging pre-tax profits, their stroke of genius was to advise retiring dollar debts. Bold? Absolutely. Effective? Unquestionably. While the road to victory wasn’t paved with roses, Team E emerged triumphant. From a field of 18, their sharp minds and persuasive presentation skills secured them the win. As they received their $500 prize from industry leaders; Curtis Musembi, and Annette Rumanyika Mulira, CFA , one couldn’t help but wonder: what does this victory portend?

Well, first, the team gets ready to represent Kenya at the Africa Finals and potentially at the global finals. But beyond that they stand as the embodiment of the future of financial analysis— a future that’s bright, daring, and unabashedly brilliant.

 And that, dear readers, is a  future worth banking on.

What’s your story? We’d like to hear it. Contact us via communications@strathmore.edu

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