Esther Masese Waititu has been appointed as the new Chief Financial Services Officer at Safaricom, a leading telecommunications company in Africa, effective February 21st, 2023, pending regulatory approval. She brings over 15 years of financial services experience to the role, previously serving as Director of Corporate Banking at KCB Bank Group and has held various leadership positions at Standard Chartered Bank, Stanbic Bank, and Commercial Bank of Africa.
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Kenya: SACCOs urged to create central pool of liquidity
Simon Chelugui, Cooperatives Cabinet Secretary, has urged Kenyan Saccos to create a central liquidity system to reduce financing costs and reliance on banks. The government plans to disburse the second phase of the Hustler Fund through Saccos and banks, allowing MSMEs and registered groups to access loans between Ksh 100,000 and Ksh 2.5 million. Over 18 million Kenyans have borrowed Ksh 16 billion from the Hustler Fund since its launch in November, with half of the amount repaid.
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Kenya: Gov’t considering launch of ‘green’ bank
Kenya is planning to establish a bank to handle investments in green projects only. The bank will develop credit guarantee instruments and schemes to enhance access to finance for green investments. The government requires at least 2.4 trillion shillings to implement green projects by 2030 and aims to cut greenhouse emissions by at least 32% within seven years. The proposed bank is expected to reduce investment risks in the sector and supplement government investment in priority projects.
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Kenya: Equity Bank to restructure portfolio it acquired from Spire Bank
Equity Bank has unveiled plans to restructure the Sh945 million loan book it has acquired from Spire Bank. Equity Group CEO James Mwangi said they are willing to enter into discussions on restructuring with the 3700 Spire Bank customers who have loans to allow them to settle their dues and retain their securities. The restructuring will allow the lender to match assets and liabilities acquired to offset customer obligations. The announcement comes after the completion of the bank’s acquisition of certain assets and liabilities of Spire Bank.
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Kenya: Central bank approves new digital lenders
The Central Bank of Kenya has approved 12 more digital credit providers, bringing the total number to 22. Some of the approved companies include Getcash Capital, Jumo Kenya, and M-Kopa Loan Kenya. The bank has received 381 applications and says more approvals will be granted once the remaining applicants submit the necessary documentation.
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Kenya: Equity Bank to take over Spire Bank
Equity Bank Kenya will acquire certain assets and liabilities of Spire Bank Limited, after getting approvals from the Central Bank of Kenya and National Treasury. The acquisition will offer a lifeline to the struggling lender and will acquire 20k depositors and 3,700 loan customers. Spire Bank has been struggling with defaulting on all Central Bank of Kenya ratios and posted a Sh403 million net loss in H1 2022.
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Kenya: Commercial International Bank acquires Mayfair Bank
Commercial International Bank (CIB) of Egypt has acquired a 51% stake in Mayfair Bank in Kenya, its first acquisition outside of Egypt. The acquisition is in line with the bank’s African expansion strategy and the country’s efforts to strengthen ties with African neighbors. CIB CEO Hussein Abaza praised the acquisition and said the bank sees promising opportunities in the Kenyan economy. Mayfair Bank Executive Director Hossam Rajeh said the bank is excited to be a part of Kenya’s economic system and to provide the best banking services.
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Kenya: Postbank announces new chairperson, Sarah Serem
Sarah Serem, the former Salaries and Renumeration Commission chairperson, has taken over as the Chairperson of the Kenya Post Office Savings Bank (Postbank). Serem, who also served as Kenya’s ambassador to China, brings a wealth of experience and expertise in government administration. She said she was delighted to return to Postbank and is looking forward to a rigorous three-year term. The bank’s managing director expressed confidence in her appointment and said the bank is optimistic that under her leadership, they will advance their role of offering financial services to the people of Kenya.
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Kenya: High Court allows reintroduction of transfer fees
The High Court in Kenya has decided to allow banks and mobile money providers to charge fees for money transfers between their platforms. An interim order was issued on December 19, 2022, which temporarily stopped the charges from being implemented until the case was resolved. The court announced that the case will be brought up again on March 8, 2023 before Justice Anthony Mrima and the Central Bank of Kenya (CBK), mobile operators, and the Competition Authority of Kenya will be included as parties to the case.
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Africans turning to finance apps
A report by Google and AppsFlyer has revealed a significant increase in finance app installs across Africa, showing that more people are turning to apps and technology as a way of managing finances and navigating economic uncertainty. The report analyzed more than 140 million installs, across 3,000 finance apps, and found that installs across the continent grew 25%. Ghana, Nigeria and Kenya were the main contributors to this rise
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Access Holdings abandons takeover of Sidian Bank
Access Holdings’ planned takeover of Kenya’s Sidian Bank has been halted due to the regulator’s concerns that the deal would result in a significant concentration of market share. The Central Bank of Kenya had previously approved the takeover and the two companies had signed a binding agreement, but the regulator has since decided to reject the deal.
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Kenyan banks challenge M-Pesa in mobile money market
Kenyan banks are looking to take on mobile money leader M-Pesa by growing their own mobile money offerings, either by building their own platforms or by building on existing platforms, including M-Pesa itself. The move comes as a market report shows that the COVID-19 pandemic had a marked impact on non-cash payments to banks, with many banks quickly improving their digital offerings to remain competitive.
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Sudan and Kenya agree to resume banking relations
Sudan and Kenya have agreed to resume banking relations. Ambassador Kamal Jubara announced that the meeting between the two countries’ leaders covered bilateral relations, economic and commercial issues, and stability in South Sudan. The meeting discussed details of the resumption of banking relations between the two countries and provided directives for direct transactions between Sudanese and Kenyan banks.
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Kenya sees competition among banks in AI adoption
In Kenya, seven banks are competing in the adoption of artificial intelligence (AI) in the sector. The banks are using AI in customer service, fraud detection and anti-money laundering efforts. The adoption of AI by the banks is expected to improve efficiency and reduce costs.
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KCB finally buys DRC Bank
KCB Group has completed its acquisition of Trust Merchant Bank in the Democratic Republic of Congo (DRC), taking an 85% stake in the lender. The Kenyan firm said the deal will boost its income diversification, establish its presence in new markets and enable it to accelerate its market presence in the DRC. The acquisition also includes Afrissur SA, an insurance subsidiary, which KCB said will provide an opportunity to diversify its offerings in the DRC’s insurance sector. KCB CEO Paul Russo said the deal would provide “enhanced banking products” to TMB’s existing customers.
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DFC and Mastercard will contribute $50 million to promote financial inclusion in Africa
The US Agency for International Development Finance (DFC) and Mastercard have announced a $50m funding project to promote digitalisation and financial inclusion in Africa. The project will see DFC invest up to $50m in groups that are part of the Community Pass network, which helps to provide digital connectivity, smartphone use and ID systems to underserved communities in India, Kenya, Mauritania, Mozambique, Tanzania and Uganda. The partnership aims to make the digital economy more inclusive and sustainable for all.
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Kenyan Regulatory Agencies Begin Work on a Comprehensive Legal Framework for Crypto
Kenya’s Joint Financial Sector Regulators (FSRB), consisting of five regulatory bodies, will work on recommendations for the development of an oversight framework for cryptocurrencies, players and activities in Kenya. The FSRB’s main role is to enhance collaboration between organizations on legal and policy issues, regulation and supervision, and information sharing. The group also wants to coordinate the development of a framework for promoting the adoption of technology and innovations in the financial services sector to help with effective regulation and supervision. The FSRB will submit recommendations to the Kenya Ministry of National Treasury and Economic Planning.
Tags: Kenya