Author: Martin Mwita

• In the three months to March 2023, Group’s total assets rose by 39.8 percent to close at $11.8 billion buoyed by DRC subsidiary TMB.
• Revenue increased by 26.9 percent to $267.4 million mainly driven by the non-funded income from customer transactions across the Group.
• This is the Group’s newest subsidiary in the Democratic Republic of Congo.
• It demonstrated the range and diversified income streams across the group’s businesses, adequate to cover the elevated operating and funding costs.

Regional lender KCB Group Plc posted $68.8 million in profit after tax for the first quarter 2023, a marginal drop attributable to acquisition and consolidation costs of its newest subsidiary, Trust Merchant Bank (TMB), in the Democratic Republic of Congo.

In the quarter, however, the Group recorded a strong balance sheet growth with total assets hitting $11.8 billion, with TMB contributing 14 percent to the Group’s total assets. The bank said this was …

• The acquisition by Shorecap III, LP of 20 percent shareholding in Credit Bank has been approved by Central Bank of Kenya.
• Credit Bank was licensed by CBK as a non-banking financial institution in 1986 under the name Credit Kenya Limited. It converted to a fully-fledged commercial bank in 1995.
• Credit Bank specializes in provision of banking services to small corporates and Micro, Small and Medium-sized Enterprises (MSMEs). It has a market share of 0.5 percent as at March this year.

Mauritian private equity fund Shorecap III, LP has received the nod to acquire a 20 percent stake in Kenyan tier three lender, Credit Bank, in the latest mergers and acquisitions in the country.

The industry regulator, Central Bank of Kenya (CBK), announced the acquisition on Monday, with an effective date of June 15, this year.

This follows CBK’s approval on April 24, 2023, under Section 13(4) of the Banking …

• Standard Bank has developed the Africa Trade Barometer, a tool that blends qualitative and quantitative data across African markets.
• The Africa Trade Barometer is instrumental in solving access to information, a significant non-tariff barrier in Africa.
•  It provides a near real-time view of trade openness, access to finance, and macroeconomic stability data among others.

Standard Bank, the biggest lender by assets across Africa, has thrown its weight behind the African Continental Free Trade Area (AfCFTA) saying it is a key opportunity to alleviate poverty, drive economic activity and achieve prosperity.

By eliminating trade barriers, AfCFTA aims to lift about 30 million Africans out of poverty by increasing incomes across the continent by seven percent by 2035. Once implemented, AfCFTA will be the world’s largest free trade area ever rolled out.

Standard Bank wants to power AfCFTA take-off

Recent global supply chain woes suffered in Africa illustrate the urgent need of …

• Kenya’s Nairobi Securities Exchange posted drop in capitalization in April due to investor flight.
• Other poorly performing bourses were Uganda, Mauritius, Namibia, Morocco, Tanzania, Rwanda and Tunisia.
• Zambia, South Africa, Ghana and Egypt remained positive railing Zimbabwe and Malawi.

Zimbabwe has maintained the lead in the African equity markets returns by recording the highest gains at 112.33 percent year-to-date, the latest data shows. In the period under review, Malawi recorded the highest month-on-month value of 10.96 percent.

At the same time Kenya posted the highest drops both on year-to-date and month-on-month, Nairobi Securities Exchange (NSE) monthly barometer indicates, which stood at negative 15.56 percent and minus 3.52 percent, respectively.

Other poor performers across Africa were Uganda, Mauritius, Namibia, Morocco, Tanzania, Rwanda and Tunisia. In West Africa, Nigeria performed poorly on the month-on-month index but remained positive year-to-date. Zambia, South Africa, Ghana and Egypt remained positive railing Zimbabwe and Malawi.

Kenya’s …

• Ghana, a top gold and cocoa exporter rich in oil and gas deposits, is struggling with a $55 billion debt burden.
• About 70 percent to 100 percent of the government revenue currently goes toward servicing the country’s debt.
• It is estimated that Ghana’s debt-to-GDP will reach 98.7 percent by the end of 2023.

Crisis-saddled Ghana is seeing about $15 billion in external debt relief by 2026, the International Monetary Fund has said even as the country pursues debt restructuring plan with investors. In December 2022, Ghana suspended payments on most of its foreign debts effectively defaulting as policymakers started restructuring plans as part of a bailout deal with the IMF.

Initial plan was an agreement to suspend service payments of its Eurobonds, commercial loans and most bilateral loans. Further, as an interim emergency measure, the government moved to engage its external creditors in what it thought was best in making …

• Dr Kamau Thugge, who is President Ruto’s advisor on fiscal affairs, is set to take over from Dr Patrick Njoroge.
• Previously, Dr Thugge served as the Permanent Secretary at Kenya’s National Treasury between 2013 and 2019.
• Prior to his nomination as Principal Secretary, he worked as a senior economic adviser in the Ministry of Finance since 2010.

President William Ruto has nominated former IMF economist Dr Kamau Thugge for appointment to head the Central Bank of Kenya. Dr Ruto picked Dr Thugge out of a list of six candidates who were interviewed on May 9th for the job that helps define Kenya’s fiscal policy.

Dr Thugge is not a stranger at Kenya’s financial industry. For close to 10 years, between 2013 and 2019, he served as the Principal Secretary, National Treasury under former President Uhuru Kenyatta. He was, however, hounded out of office over allegations of corruption. The scandal, which …

• Safaricom targets a customer base of at least 10 million across 25 cities in the next year.
• Since Safaricom Ethiopia switched on its mobile telecommunications network, it has grown coverage from an initial 11 to 22 cities.
• Safaricom Ethiopia is building a wholly-owned mobile network and also has infrastructure sharing deal with state-owned Ethio Telecom.

Safaricom is now targeting a customer base of at least 10 million in Ethiopia in the next one year. The move is tailored to shake up the country’s telecommunication industry. Latest developments follows huge investments in the country, with cash transfer service M-PESA now on the table.

Since Safaricom Telecommunications Ethiopia switched on its mobile telecommunications network and services in Addis Ababa in October last year, major inroads have been made in the second-most populous country in Africa.

It has grown coverage from an initial 11 cities when it launched to 22. The telco with …

• High inflation due to rising fuel and food costs hurt business confidence in April.
• Stanbic Bank’s Purchasing Manager Index (PMI) shows output and new orders declined sharply.
• Downturn was led by manufacturing and services, contrasting with expansions in agriculture, construction, wholesale and retail.

Kenya’s business confidence dipped to the lowest levels on record in April, the latest PMI survey shows. During the period, high inflation and political unrest led to a sharp fall in customer demand ruffling business confidence.

Activity levels and input purchases also fell sharply, but employment numbers continued to rise, the Purchasing Managers’ Index indicates. On a positive note, input cost pressures showed further signs of having peaked, dropping to their lowest recorded in 2023 so far, though remaining steep.

The headline figure derived from the survey by Stanbic Bank Kenya is the PMI. Readings above 50 signal an improvement in business conditions on the previous month, …

• Kenya’s President William Ruto says the free movement was necessary for sustainable growth in the Horn of Africa.
• Dr Ruto calls on member states in the region to eliminate national boundaries that are chocking growth.
•  EAC Secretary General Peter Mathuki notes EAC can address challenges in advancing movement of goods and labour.

Barriers to free movement of goods and people are chocking East Africa’s regional integration. To unlock the bloc’s trade potential, Kenya’s President William Ruto is calling in the East African Community (EAC) and the Intergovernmental Authority on Development (IGAD) to remove barriers to free movement. Dr Ruto urges that free movement of people, goods and services can significantly enhance East Africa’s regional integration.

The Kenyan President notes the free flow of goods and capital was necessary for sustainable growth across East Africa.

The President is now challenging regional member states to eliminate national boundaries that have since become …

• Across the East Africa region, Rwanda posted the strongest performance.
• Uganda’s economy grew by 4.4 percent in 2022 compared to a 6.7 percent uptick in 2021.
• Tanzania’s real GDP expanded by 4.5 percent in 2022 compared to 4.9 percent growth in 2021.

Kenya’s economy recorded a slower growth of 4.8 percent last year as agriculture slumped due to severe drought. In 2021, Kenya posted 7.6 percent growth as the country emerged from Covid-19 induced economic fallout.

Latest data from the Kenya National Bureau of Statistics show that East Africa’s economic powerhouse growth outpaced its neighbours. Kenya saw its nominal GDP increase to $98.24 billion, from $87.98 billion in 2021, retaining its pole position over East African peers.

Uganda’s economy grew by 4.4 percent in 2022 compared to a 6.7 percent growth in 2021. The marginal drop was partly on account of recovery in hospitality and other service sectors as schools …