Equity gains Sh30bn in a month as small banks lose deposits

Equity Bank management says it has grown its deposit base by Sh30 billion in the last month riding on shift of deposits from small banks. Small banks have suffered loss of deposits since last month after the sudden closure of Imperial Bank that shook the market confidence in the sensitive banking sector. There are 21 banks classified as small lenders by Central Bank. These banks usually have to pay a premium to attract deposits owing to fears of collapse and the Imperial Bank crisis just made matters worse [...]

US oil explorer Erin Energy mulls selling Kenyan stake to cut losses

American-owned Erin Energy is looking to sell stakes in its Kenya exploration blocks after losing more than Sh1 billion in the past two years of local operations, filings with the New York Stock Exchange (NYSE) show. The company has seen the price of its shares on the NYSE fall by over 60 per cent since [...]

Kenya placed top in life insurance study

Kenya’s life insurance industry is the most developed amongst lower middle-income economies in sub-Saharan Africa and Asia, a report by the Overseas Development Institute (ODI) and Prudential Life shows. Prudential Life which returned to Kenya close to 30 years after its exit has invested Sh1 billion on buying out Shield Assurance, life arm of troubled Blue Shield Insurance. In 2014 Swiss Re bought a 26.9 per cent stake in Apollo Investments, the holding company of APA Insurance, which was previously held by private equity firm LeapFrog Investments [...]

ARM seeks Sh10.7bn in private bond

ARM Cement is set to raise up to $105 million (Sh10.7 billion) in debt funding from private investors, increasing its target from the previous Sh7 billion. Sales increased seven per cent to Sh11.7 billion primarily driven by the Tanzanian market and fertiliser sales in Kenya. Mr Paunrana in August told the Business Daily that the company would issue a Sh7 billion bond, with the modified target seen to reflect new developments since then. The dollar component attracts a coupon rate based on the six-month London Interbank Offer Rate (LIBOR) and a margin of 5.5 percentage points. ARM’s share price has declined 55 per cent since the beginning of the year to trade at Sh39 [...]

NMG inks pact with E. African professionals for joint initiatives

Nation Media Group (NMG) and Association of Professional Societies in East Africa (APSEA) have signed a memorandum of understanding that will see the two organisations collaborate on various programmes. According to the pact, NMG will provide media channels for APSEA corporate members to engage the public in debates on issues of national interest as well as express their expertise and opinion through on-air interviews and newspaper articles [...]

World Bank faults KenGen’s Olkaria resettlement plan

The World Bank has faulted KenGen over the resettlement of communities displaced from a 280MW geothermal power development site in Olkaria even as it approved mediation mechanism to resolve grievances raised by the affected group [...]

Kebs and grain council in deal to train inspectors

The East African Grain Council (EAGC) and the Kenya Bureau of Standards (Kebs) have entered into a partnership to train inspectors and other grain handlers. The agreement aims to improve the quality of grains that is delivered and enhance traceability. The agreement aims to improve the quality of grains that is delivered and enhance traceability [...]