Browsing: Central Bank of Kenya(CBK)

Central Bank of Kenya’s Monetary Policy Committee has lowered the Central Bank Rate to 8.50 per cent from 9.00 per cent, despite the removal of interest rate capping in the country.

Central Bank of Kenya’s Monetary Policy Committee has lowered the Central Bank Rate for loans to 8.50 per cent from 9.00 per cent, despite the removal of interest rate capping in the country.

READ ALSO:Why Kenya’s Central Bank has retained base lending rate at 9%

The MPC met on November 25, 2019, to review the outcome of its previous policy decisions and recent economic developments.

The meeting came at the backdrop of a domestic macroeconomic stability, the recent repeal of interest rate caps, and heightened global uncertainties and volatility in international markets.

READ:No more lending controls in Kenya as rate cap ‘dies’

READ ALSO:World Bank, IMF biggest winners in Kenya’s interest rates cap repeal

The MPS which is chaired by CBK governor Patrick Njoroge however noted that month-on-month overall inflation remained well anchored within the target range in September and October 2019, largely due to relatively stable …

Kenya is strategically positioning itself as the gateway to the vast African market as it seeks to attract investments into the country.

President Uhuru Kenyatta who has been on a charm offensive in foreign markets has called on Asian economies to use Kenya as a gateway to Africa’s market of over 1.2 billion people that is worth more than US$ 29 trillion.

President Kenyatta said Kenya is the best entry point for Asian businesses that want to trade in Africa with the coming into force of the African Continental Free Trade Area (AfCTA).

READ ALSO:Kenya seeks AfCFTA partnership on trade standards

“I invite you to use Kenya as a gateway to the African continent.  It is not only one of the top-ten fastest growing economies in Africa but is also one of the most pro-business Nations on the continent,” the President said when he delivered a keynote address at …

Central Bank of Kenya’s Monetary Policy Committee has lowered the Central Bank Rate to 8.50 per cent from 9.00 per cent, despite the removal of interest rate capping in the country.

Majority of the deals are tier 1 banks going for struggling tier 2 and 3 lenders

Kenya’s banking sector is on an evolution path evidenced by the high number of mergers and acquisitions being witnessed; a trend the government is hoping will realign and strengthen the sector.

The most recent is last week’s offer by the country’s largest bank by asset-KCB, which has made a move to acquire a hundred per cent (100%) of the ordinary shares in National Bank of Kenya (NBK).

This is the sixth deal in the last nine months (between August 2018 and April this year) with a total 13 banking merger and acquisitions in the last six years.

Majority of the deals are tier 1 lenders going for smaller struggling banks in tier 2 and tier 3, in the market which has a total of 42 commercial banks and one mortgage finance institution-Housing Finance.

KCB, …

Diaspora transaction volumes rose to Ksh107 billion in 2018

Equity Bank’s Fintech innovation and digitization has powered rapid growth of Diaspora banking boosting the total revenue income by 38 per cent.

Diaspora transaction volumes grew by 196 per cent to Ksh107 billion (US$1.06 billion) while the commissions recorded a 169 per cent rise from Ksh279 million (US$2.76 million) in 2017 to Ksh751 million (US$7.43 million) after the same period last year.

The results came in the backdrop of a unique business model and strategy that creates resilience while managing headwinds of interest rate capping and challenging macroeconomic and business environment.

Speaking during the release of the 2018 full year results, Equity Group CEO & MD Dr. James Mwangi noted that, remittances have taken a significant market share moving from Ksh36 billion(US$356.1 million) to Ksh107 billion(US$1.06 billion) and hopefully this year surpassing Ksh200 billion (US$1.98 billion) in diaspora remittances processing simply …