Author: Martin Mwita

Equity Bank emerged as the overall best bank in Kenya for the eighth time at this year’s Think Business Banking Awards, with Equity Group Managing Director and CEO James Mwangi scooping the CEO of the Year Award for the third time consecutively. READ:Why Equity Bank CEO James Mwangi was named Banker of the year, again Equity Bank bagged 18 awards, garnering the top slots in 12 categories – Best Bank in Tier 1, Best Bank with the lowest charges for individuals, the most customer-centric bank, best bank in mobile banking, best in internet banking, best agency banking, best in product…

After more than three years of waiting, the Nairobi Securities Exchange (NSE) has received regulatory approvals to proceed with the launch of the derivatives market. This follows the successful conclusion of the Derivatives Market Pilot Test and subsequent submissions to the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK). READ:Investors to commence derivatives trading at Nairobi bourse NSE now sees the launch of the Derivatives Market as a significant milestone in the growth and deepening of the country’s’ capital markets and the wider Kenyan economy. “Derivatives Markets provide new opportunities to investors, enabling them to better diversify…

The World Bank Board of Directors has approved a US$750 million (Ksh75.9 billion) International Development Association (IDA) credit for Kenya, in the latest move by the global lender to channel funds to the East Africa State. A member of the World Bank Group headquartered in Washington D.C, IDA is an international financial institution which offers concessional loans and grants to the world’s poorest developing countries The loan comes amid concerns over the country’s ballooning public debt which crossed the Ksh5.1 trillion (US$50.4 billion) mark in September 2018, with possibilities of going Ksh5.6 trillion (US$55.4 billion by close of the year. READ:Tough…

Diamond Trust Bank (DTB) has posted a 9.4 per cent growth in net profit for the first quarter ended March, buoyed by returns from investment in government securities and non-funded revenue. The Nairobi Securities Exchange (NSE) listed lender closed the period with a Ksh1.97 billion profit after tax compared to Ksh1.80 billion posted last year. The Group defied a tough operating environment to build customer deposits to Ksh275 billion, while the asset base grew to Ksh370 billion, entrenching the DTB’s position as a leading tier one bank in Kenya and the wider East African region. On the back of an…

The Kenyan government has once again gone to the market with its unique mobile phone based bond M-Akiba, as it seeks to raise funds to support infrastructure development in the country. In a second issue this year, the National Treasury has re-opened the retail infrastructure bond as targeting to raise Ksh250 million (US$2.47million). The bond was opened to the public on Monday, May 27, and will run up to Friday June 7, 2019. The value date shall be on Monday, June 10, 2019 and will start trading at the NSE on Tuesday, June 11, 2019, the government has said. “Following…

The Kenyan government has now resorted to vetting of importers and exporters of consolidated cargo in the latest move to curb tax evasion. This comes in the wake of recent piling of cargo at the Nairobi Inland Container Deport (ICD) as authorities opted for 100 per cent verification on containers with consolidated goods. This is on suspicion of under-declaration and misdeclaration by traders in a tax evasion racket that has been denying the government revenues amounting to billions of shillings. Rogue state officials have been accused of colluding with unscrupulous traders to facilitate false declarations, denying the Kenya Revenue Authority…

The Kenya Revenue Authority (KRA) has received a go-ahead to collect more than Ksh2.7billion (US$26.7 million) worth of monthly taxes on withholding tax on winnings from Sportpesa. This follows a ruling by Milimani Commercial Courts Chief Magistrate, Peter Gesora, allowing KRA to collect withholding taxes on winnings from betting games on the Sportpesa platform among others, that have been failing to withhold tax on winnings. The landmark ruling delivered on Thursday, May 23, 2019 arose from a 2014 suit filed by a Mr. Benson Irungu against Sportpesa Ltd trading as Pevans East Africa. READ:Why Kenya will not collect taxes from sports betting…

In yet another review of the country’s macroeconomics, Kenya’s Central Bank has held the benchmark lending rate at 9 per cent, meaning banks in the country will continue giving loans with a maximum interest rate of 13 per cent. This is under the Banking Act which caps lending rates at four percentage points above the CBK rate. The decision was reached on Monday by CBK’s decision making organ-Monetary Policy Committee (MPC), which meets every two months to review the outcome of its previous policy decisions and recent economic developments. The meeting was held against a backdrop of domestic macroeconomic stability,…

Kenya’s capital-Nairobi could soon have an oversupply of hotel rooms, latest trends have indicated, in the wake of heavy investments in the hospitality industry. Whilst the inclination reflects investor confidence in the country as the city continues to attract high level conferences and investments by multinationals and locals, concerns are now that an oversupply will drawback returns in the industry as hotels scramble to fill rooms. Average occupancy in the city’s high end hotels (three to five star) remains at 52 per cent, with the number of hotel rooms tripling in the last five years to more than 19,000. A…

Kenya has unveiled a mortgage refining facility-Kenya Mortgage Refinance Company (KMRC), a short in the arm in President Uhuru Kenyatta’s affordable housing scheme under the Big Four Agenda. KMRC is a non- deposit taking financial institution under the supervision of the Central Bank of Kenya (CBK). The company was incorporated on April 19, 2018 with the single purpose of providing long-term funds to primary mortgage lenders (banks, micro finance banks and saccos) in order to increase the availability and affordability of mortgage loans to Kenyans. READ:Mortgages more unaffordable as Kenya house prices increase in 2018 KMRC shareholders and funding The…