Bad debts to hurt lenders’ profits on tight CBK scrutiny
A new report by Citigroup’s investment banking arm has indicated that the profitability of Kenyan banks will take a hit from increased provisioning for bad loans as Central Bank of Kenya (CBK) heightens its scrutiny on their books. The international research firm noted CBK had previously encouraged restructuring of loans by banks to keep their risk low but it had indicated a change of tack in a letter of intent to International Monetary Fund (IMF) […]
Kenya oil sector gets boost on US-based firm drilling pledge
Kenya’s oil and gas exploration has received a boost after Houston-based Anadarko Petroleum said that it will go ahead with its local drilling program despite cutting its budget for other markets. The US Company expects to drill nine to 12 deep water exploration/ appraisal wells focusing on play-opening exploration opportunities in Colombia, Kenya and the Gulf of Mexico […]
US money transfer firm enters Kenyan market
American money transfer company, Trans-Fast has entered the Kenyan market through a partnership with ABC Bank. Trans-Fast allows customers to send money through the online platform, mobile application or depositing directly into recipients’ bank accounts. This move will assist ABC Bank acquire customer in the diaspora will also cater for local businesses dealing with international clients […]
EA Summit wants crude oil pipeline to be fast-tracked
The presidents of East African Community (EAC) member states have directed their ministers to fast-track projects under the Northern Corridor Infrastructural Projects framework with emphasis on the oil and gas sector. Investment in infrastructure and development of the oil and gas sector is expected to grow the general economy by six per cent in 2015 […]
Portland Cement to hire technical expat in turnaround plan
EAPCC’s decision to bring in expatriates from Lafarge in a move to increase technical and monetary support. The manufacturer made a net loss of Sh386 million for the year ended June 30. Lafarge in December appointed two independent directors to represent its interests on the EAPCC board, one more than the number the conglomerate has had in the past […]
Barclays closes loan talks with parent as net profit rises 10pc
Barclays Kenya is set to receive a Sh4.5 billion loan from its London-based parent after finalising negotiations for the 10-year debt. The bank, which on Friday announced a 10 per cent growth in net profit for 2014, intends to use the loan to boost its capital base […]
Mumias Sugar to seek Sh4bn in rights issue
Troubled sugar miller Mumias plans to turn to its shareholders for a Sh4 billion cash call to boost its turnaround efforts. The deputy president brokered a deal between Mumias and its creditors that would also see the miller retrench 300 workers, fire its entire management and replace half its board of directors. The government has committed to release a Sh1 billion bailout to help Mumias pay farmers who have not received cash for their sugarcane deliveries. Audit firm KPMG will oversee the company’s restructuring that will pave the way for the rights issue […]
World Bank sees Kenya’s current account deficit fall to 4.7pc
Kenya’s current account deficit, showing the value gap between exports and imports, is likely to fall to 4.7 per cent over the next two years from the current nine per cent, a new World Bank report says. Falling oil prices will help push down the deficit given that oil imports account for nearly a quarter of the country’s total import bill, the bank said. The deficit has averaged 8.1 per cent over the past four years […]