Banks demand retrenchment insurance for borrowers

Commercial banks are increasingly demanding insurance cover against retrenchment for customers seeking personal loans, signaling increased concerns over the rising load of bad debts. Commercial Bank of Kenya (CBA) last week announced a requirement for salaried borrowers seeking secured and unsecured loans to take up retrenchment insurance, becoming the latest lender in the country to introduce such a condition [...]

UAP in a race to open tallest Juba block this month

UAP Group says it will complete construction of the tallest building in South Sudan by the end of this month and has expressed optimism about the country’s future amid raging political conflict.This is the group’s second major development after UAP Heights Apartments in the volatile country whose conflict has hit local companies invested in Africa’s youngest state hard.The over-the-counter-traded group’s other properties valued at Sh15 billion are spread across Kenya, Rwanda and Uganda[...]

Bond traders say Treasury targets Sh25bn

The Treasury will this month float two new bonds seeking to raise Sh25 billion. Bond traders estimate the Treasury has to raise a net of Sh30 billion in June to meet the target of Sh163.7 billion for the financial year amidst tight liquidity and rising rates.So far this year, Nairobi-based brokerage house Kestrel Capital estimates the government has raised Sh133.7 billion, leaving a Sh30 billion gap.It is expected with the Sh25 billion raised from the two-year and five-year bonds, the rest of the amount will come from the weekly Treasury bills market [...]

NIC eyes earnings boost with Kenya, Tanzania units buyouts

NIC Bank has raised its shareholding in its Tanzanian unit and stock broker NIC Securities in a move that will see the Nairobi Securities Exchange-listed firm book more earnings from the subsidiaries.The lender disclosed in its latest annual report that it took full ownership of NIC Securities in 2013, buying out the remaining 0.07 per cent equity that it did not own in the market intermediary [...]

Union seeks Tuskys meeting over staff suspensions

The Kenya Union of Commercial Food and Allied Workers wants more information on the allegations that some Tuskys employees have been colluding with external cartels to steal goods from the supermarket. The union’s Nairobi branch secretary claimed the suspensions were part of Tuskys’ plans to look for excuses to employ cheaper labour[...]

Swala Energy nets Sh100m working capital from owner

Swala Energy said it raised the $1 million from Hayaat International, a Dubai-based company that has a 9.2 per cent stake in the listed oil and gas exploration firm.The company will use the funds to finance working capital on both its Block 2B located in Ahero and its Zambia-based block [...]

China’s ZTE seeks order to wind up Kenyan telco

Chinese firm ZTE has moved to the High Court in a bid to wind up Kenyan telecommunications operator Flashcom over a $5.5 million (Sh530 million) debt that accrued from supply of goods.Flashcom, which was a big player in the fixed-line supply industry a decade ago, has taken a hit following growth of mobile telephony and competition from larger firms like Safaricom, Airtel and Orange. ZTE now wants its assets sold to recover the Sh530 million debt [...]