Author: Wanjiku Njugunah

Kenya Electricity Generating Company PLC (KenGen) says it has surpassed a crucial stage in the ongoing USD 6.2 million geothermal drilling contracts in Ethiopia.

According to the firm’s Managing Director and CEO Rebecca Miano, a team of KenGen engineers have so far crossed the 450 meters of drilling depth of the first of eight geothermal wells for the state-owned electricity producer, Ethiopia Electric Power Company which commenced in May this year.

“The first 450 meters is the most difficult phase of the entire geothermal well drilling process which can go upto a depth of 3,000 meters,” Miano said.

“This particular one is being done under peculiar circumstances including unforeseen delays occasioned by the COVID-19 pandemic,” she added.

The CEO added that they will be drilling at a rate of about 50 meters per day going forward and therefore expect to complete the remaining part on schedule in about two months.…

Land prices in Nairobi and its environs showed mild recovery in the second quarter, at a time when investors who froze investments in land at the peak of the Covid-19 economic crisis are slowly returning to the market on the improved business environment.

This is according to a new report by HassConsult which indicates that land prices in Nairobi improved by 0.3 percent while the satellite towns showed a 1.1 percent increase.

HassConsult Head of Development Consulting and Research Sakina Hassanali said select areas within the suburbs and towns are being favored by proximity, adding that these places are opening up.

Hassanali added that this is in turn attracting developer and speculator interest and thereby improving asking prices.

In the Nairobi suburbs, Nyari was the best performing suburb. According to the report, prices in the suburb improved by 2.25 percent over the quarter, and 6.24 percent annually.

The report has …

Sanlam Kenya PLC says it has restructured its foreign currency-denominated loan into a local currency facility.

In a statement, the listed non-bank financial services provider says the move is geared at preserving shareholder value.

During the first six months of the year, Sanlam says it restructured US$27 million loans into a Sh3 billion facility with a local banking institution to mitigate against future forex losses occasioned by the weakening of the Kenya Shilling against the United States dollar.

The move comes at a time when the company has posted a Sh291.8 million loss, up from a Sh99.1 million loss posted in the same period last year.

The financial services provider has attributed the loss to one-off forex losses and a more prudent company stance towards provisioning as the business carefully manages its future financial outcomes in a recovery period from the onset of the covid-19 pandemic in 2020.

Sanlam pretax …

The lockdown occasioned by the coronavirus pandemic saw new e-commerce users rise by 5 percent in Sub-Saharan Africa in 2020 when compared to the active base the previous year.

This is according to a report by VISA, which attributes this to a preference of e-commerce to fill the void left by the closure of face-to-face retail, which was implemented across many parts of the world, including the region, to fight the viral disease.

The ‘e-commerce developments across Su-Saharan Africa’ report also notes the economic shocks that followed COVID-19 have reduced spending power across the world, including in the region, but the closure of physical stores has provided a growth opportunity for digital payments and e-commerce itself.

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As such, VISA projects that e-commerce sales will grow to US$7 trillion across the globe by 2024, with the Asia Pacific, specifically, China, India, and Southeast Asia, …

E-commerce and payment company Pesapal Limited has been accredited as a Payment Service Provider in Kenya and an Application Service License for Tanzania, amid the acceleration of the online payment industry in Africa, which has been growing since the beginning of 2020.

In a statement, Pesapal says the milestones will enable consumers and businesses in the two East African economies to make and receive online payments seamlessly. 

Kenya’s Central Bank has already granted authorization to Pesapal Limited as a Payment Service Provider (PSP) to carry out Payment Gateway Services in compliance with the law.

In Tanzania, the company has received the National Application Service License (AS) from Tanzania Communications Regulatory Authority (TCRA), effectively enabling Pesapal to operate in the country.

Commenting on the twin milestone, Pesapal Chief Executive Officer Mark Mwongela said the pandemic has accelerated the usage of digital payments.

He added that the firm is innovating to meet …

Regional bank Kenya Commercial Bank has doubled its profit after tax for the period ended June 2021.

In a statement, KCB says its profit reached Sh15.3 billion, up from Sh7.6 billion posted during a similar period last year.

During the period under review, revenues increased by 14 percent on account of higher interest income driven by an increase in earning assets and a lower cost of funding.

The Group’s total income increased by 13.7 percent to Sh51.2 billion during the period, with net interest income going up by 17.7 percent to Sh36.6 billion from Sh31.1 billion last year.

This was on the back of higher interest-earning assets and effective management of the cost of funding during the period.

The Group’s assets stood at Sh1.02 trillion, up from Sh953 billion reported in the first half of 2020.

Commenting on the performance, KCB Group CEO Joshua Oigara said the bank’s resilient and …

Regional bank Equity Group Holdings has announced a 98 percent growth in half year profits to Sh17.9 billion up from Sh9.1 billion registered the previous year.

The Group’s Managing Director and CEO Dr James Mwangi said attributed improved performance to the defensive and offensive strategy, which they adopted at the onset of the COVID-19 pandemic.

As such, deposits registered a 51 percent growth to Sh820.3 billion up from Sh543.9 billion, while long term borrowed funds grew by 78 percent to Sh102.3 billion up from Sh57.6 billion.

Net Loans and advances grew by 29 percent to Sh504.8 billion up from Sh391.6 billion, while investment
in Government securities grew by 46 percent to Sh315.5 billion up from Sh216.4 billion resulting in 50 percent
growth in Total Assets to Sh1.12 trillion up from Sh746.5 billion.

The CEO also revealed that the strategy led to a 33 percent growth in topline Total Income to …

Kenya’s Ministry of Devolution together with the Food and Agriculture Organization say the country requires at least US$87 million to ensure food security in all the 23 Arid and Semi-Arid Lands Counties, between August and December 2021.

In a statement, FAO says several interventions need to be done, at a time when the East African nation has been facing a myriad of challenges in the recent past including two desert locust invasions, the COVID-19 pandemic and poor rains that have resulted in food scarcity.

If sourced, the funding will be used for several interventions and cover various areas, among them provision of feed and supplements and livestock off-take and animal health services.

Additionally, FAO plans to provide drought-resistant seeds to farmers in the counties, as well as milling of staple commodities.

Other interventions include water trucking, rehabilitation and maintenance of water facilities, fuel subsidies for motorized boreholes and water …

Centum Investment Company subsidiary Vipingo Development Limited (VDL) has handed over keys to more than 300 home buyers to their houses, following the completion of Phase 1 of the Palm Ridge Estate in Kilifi County, in the Kenyan coast.

In a statement, Vipingo Development Limited says the Sh1.5 billion housing estate comprises 330 units of one, two and three-bedroom four-storey apartments priced at Sh2.5 million, Sh3.5 million and Sh4.6 million respectively.

It marks the second major residential estate development by the company, and increases to about 400, the number of home owners within the 10,000-acre master-planned development that has a residential, commercial, school and industrial districts.

“We’re consolidating our reputation as a developer that completes projects on time, on budget and to the highest quality standards and that is why investors increasingly trust us with their money,” said the VDL managing director, Ken Mbae.

The project, dubbed 1255 Palm Ridge …

A new report by the Central Bank of Kenya has revealed that bed occupancy in some Kenyan hotels increased to 30 percent in June and July, respectively, from 19 percent in April.

Bed occupancy in hotels in Nairobi and Mombasa counties improved in July, while the occupancy in the rest of the country declined.

The occupancy levels in hotels in Nairobi and Nakuru counties were boosted by the World Rally championship in June.

The report noted that hotels in Nakuru County reported that they were fully booked during this event.

In addition, the end of financial year expenditure by the national and county governments boosted hotels operations in the rest of the country in June.

Hotels in Mombasa reported improved business in July 2021, mainly attributed to the July school holiday and the high season for tourists.

Consistent with the improved level of bed occupancy, the utilization of restaurant services …