Author: Wanjiku Njugunah

• KenGen and Toshiba Energy Systems & Solutions Corporation have concluded a memorandum of understanding (MOU), paving the way for a new partnership
• The two parties said the MoU focuses on an Operation and Maintenance (O&M) services partnership for geothermal power plants in developing countries, including East African countries
• This will be done through a combination of KenGen and Toshiba ESS’s know-how and networks. The MoU was signed during TICAD 8 held in Tunisia on August 27 and 28

Kenya Electricity Generating Company PLC (KenGen) and Toshiba Energy Systems & Solutions Corporation have concluded a memorandum of understanding (MOU), paving the way for a new partnership.

On August 31, 2022, the two parties said the MoU focuses on an Operation and Maintenance (O&M) services partnership for geothermal power plants in developing countries, including East African countries.

This will be done through a combination of KenGen and Toshiba ESS’s know-how and networks. …

• Safaricom has officially kicked off a large-scale customer pilot of its network in Ethiopia as part of ongoing plans to officially launch operations in Ethiopia 
• The telco has launched the trial network in Dire Dawa, Ethiopia’s second largest city after its capital Addis Ababa
• The launch of the network is part of Safaricom’s phased city-by-city regional network roll-out and rigorous service tests building towards its national launch in October

Safaricom Ethiopia has officially kicked off a large-scale customer pilot of its network in Ethiopia as part of ongoing plans to officially launch operations in the Horn of Africa country.

The telco has launched the trial network in Dire Dawa, Ethiopia’s second largest city after its capital Addis Ababa.

The launch of the network is part of Safaricom’s phased city-by-city regional network roll-out and rigorous service tests building towards its national launch in October.

Safaricom Ethiopia said the customer pilot would …

• Jubilee Holdings Limited has reported a half-year profit before tax of KES 4.1 billion ($34.1 million) for the period ended 30^th June 2022
• The Kenyan-headquartered insurer said its profitability had declined compared to the KSh 5.2 billion ($43.3 million) it posted in a similar period a year earlier
• The NSE-listed insurer blamed the decline on a tough economic environment characterised by uncertainty arising from elections in Kenya and rising interest rates
• Jubilee Holdings Board declared an interim dividend of KSh 1 per share, payable on 11 October 2022

Jubilee Holdings Limited has reported a half-year profit before tax of KES 4.1 billion  ($34.1 million) for the period ended 30^th June 2022 to defy a tough economic environment characterised by uncertainty arising from elections in Kenya and rising interest rates.

On August 30, 2022, the Kenyan-headquartered insurer said its profitability had declined compared to the KSh 5.2 billion ($43.3) …

• Africa received its highest proportion of private sector investment in infrastructure in 2020 
• African Development Bank has revealed that the greater private sector investment came as most governments contended with the Covid-19 pandemic and limited fiscal space 
• Private sector investment in Africa’s infrastructure rose to $19 billion in 2020, representing 23 per cent, the highest since 2016

A new finding by the African Development Bank has revealed that the continent of Africa received its highest proportion of private sector investment in infrastructure in 2020.

The bank’s Vice President for the Private Sector, Infrastructure and Industrialization, Solomon Quaynor said the finding sends an important signal to governments and investors.

Quaynor said the greater private sector investment came as most African governments contended with the Covid-19 pandemic, limited fiscal space and high debt-to-GDP ratios.

He noted that private sector investment into Africa’s infrastructure rose to $19 billion in 2020, representing 23 per …

• National Housing Cooperation (NHC) is seeking to raise KSh 7 billion through the International Finance Corporation (IFC) for an affordable housing project in Kenya 
• NHC will use the investment to fund the construction of 3,500 housing units in Athi River, Machakos County
• The housing units are part of the KSh 20 billion Stoni Athi Waterfront City project, comprising 10,500 units to be developed on a 150 acres piece of land.

Kenya’s National Housing Cooperation (NHC) is seeking to raise KSh 7 billion through the International Finance Corporation (IFC) under the Public Private Partnership (PPP) model to fund the construction of 3,500 housing units in Athi River, Machakos County.

The housing units are part of the KSh 20 billion Stoni Athi Waterfront City project, comprising 10,500 units to be developed on a 150 acres piece of land.

The affordable housing project comprises one, two and three-bedroom units targeting the low, middle, …

• KCB Group PLC has reported a 28.4 per cent rise in its net earnings to reach KSh 19.6 billion for the six months ending June 30, 2022
• KCB said the growth from KSh 15.3 billion was driven by improvement in both the funded and non-funded income streams
• Group businesses increased their profit contribution to 16.8 per cent, driven by new business growth and the impact of BPR Bank

KCB Group PLC has reported a net earning of KSh 19.6 billion for the six months ending June 30, 2022, to mark a 28.4 per cent rise from last year.

The growth from KSh 15.3 billion was driven by improvement in both the funded and non-funded income streams.

Additionally, the international subsidiaries increased their overall contribution to the Group’s performance.

Total operating income increased by 16.8 per cent, mainly driven by a 29.9 per cent growth in Non- Funded Income.

Group businesses …

• Kenya Airways (KQ) narrowed its half-year loss to KSh 9.88 billion, less than the KSh 11.48 billion loss it reported in the same period in 2021.
• Kenya Airways (KQ) has revealed that its total revenue rose to KSh 48,104 million in the six months ending June 2022, recording a 76 per cent increase compared to the same period last year
• KQ said the increase is mainly attributed to significant growth in passenger revenue, which grew by 109 per cent, and cargo revenue which increased by 18 per cent

Kenya Airways (KQ) narrowed its half-year loss to KSh 9.88 billion, less than the KSh 11.48 billion loss it reported in the same period in 2021.

During the review period, the airline revealed that its total revenue rose to KSh 48,104 million in the six months ending June 2022, recording a 76 per cent increase compared to the same period last year.…

• There has been a decline in bank visits across Kenya, with customers opting to deposit cash via mobile money platforms and transfer bank deposits to their mobile money wallets
• In the latest Kenya Banking Sentiment Index, Deloitte reveals that this has posed a challenge to banks, which have made significant investments in their brick-and-mortar businesses
• Deloitte recommends banks to consider leveraging innovations in technology such as cloud platforms, analytical capabilities and augmented intelligence which can generate levels of customer engagement

A new report has revealed that there has been a decline in bank visits across Kenya, with customers opting to deposit cash via mobile money platforms and transfer bank deposits to their mobile money wallets.

In the latest Kenya Banking Sentiment Index, Deloitte reveals that this has posed a challenge to banks, which have made significant investments in their brick-and-mortar businesses.

Has the rise of mobile transactions in Kenya affected …

• Equity Group has reported a 36% growth in its after-tax profit to hit KSh 24.4 billion, principally driven by the growth of loans to customers
• The Kenyan-based regional lender also attributed the performance to its recovery and resilience strategy
• Equity Group CEO James Mwangi said the loan growth was targeted to supporting their clients to recover and rebuild after the Covid-19 business disruptions

Equity Group has reported a 36 per cent growth in its after-tax profit to hit KSh 24.4 billion.

The performance was principally driven by a 29 per cent growth in interest income to KSh 55 billion, up from KSh 42.8 billion as a result of the growth of loans to customers by 29 per cent to KSh 650.6 billion, up from KSh 504.8 billion.

The Kenyan-based regional lender also attributed the performance to its recovery and resilience strategy.

Equity Group CEO James Mwangi said the loan growth …

• Kenya’s next government will be required to work on new strategies to reduce the country’s over-reliance on debt
• The country’s debt stock stood at KSh 8.6 trillion as of May 2022, equivalent to 69.1 per cent of the GDP and 19.1 per cent points above the IMF recommended threshold of 50 per cent for developing nations
• The incoming government could bridge the deficit gap by instituting austerity measures, reducing amounts extended to recurrent expenditure and focusing on developments 

Kenya’s next government will be required to work on new strategies to reduce the country’s over-reliance on debt.

According to analysts from Cytonn Investments, the country’s debt stock stood at KSh 8.6 trillion as of May 2022, equivalent to 69.1 per cent of the GDP and 19.1 per cent points above the IMF recommended threshold of 50 per cent for developing nations.

According to the analysts, Kenya’s new president will need to …