Banks left with idle capital after fund raising campaigns

Data from the Central Bank of Kenya shows lenders have core capital (shareholders’ funds) equivalent to 16.7 per cent of their loan book against the statutory minimum of 10.5 per cent. The headroom against regulatory requirement gives the lenders muscle to increase their lending. The Central Bank said banks grew their loan books by 21.8 per cent in January compared to the same period last year [...]

NSSF gets nod to sell 1.5 million Shah Munge shares

The National Social Security Fund (NSSF) has been allowed to attach the last known assets of fallen stockbroker Shah Munge, taking the provident fund closer to recovering some of the money it lost in the 2002 Euro Bank collapse. The NSSF which was awarded Sh258 million, in a 2009 judgment, that it lost in the Shah Munge scam, has indicated the money has earned interest to the value of Sh619 million to date [...]

Equity Bank set to open chain of health clinics

Equity Bank has begun hiring health professionals ahead of plans to open a chain of clinics across Kenya, as the lender seeks to cash in on the increased demand for healthcare. The lender is currently recruiting a chief nursing officer, chief laboratory technologist, finance manager and an IT manager to set up and run its network of health centres dubbed ‘Equity Afia.’ [...]

Affa to issue speciality tea licences to 8 manufacturers

The Agriculture Fisheries and Food Authority (Affa) is set to issue licences to eight tea factories, including Kenya’s second purple tea processor, to process high-value varieties. In a gazette notice published Friday, Affa said the eight factories in Kericho, Nandi, Bomet and Trans Nzoia will be issued with the licences on April 17, barring any objections from the public. Nandi-based DL-Koisagat Tea Company is set to receive a licence to process purple tea at its Kaptel factory, joining Kangaita Tea factory in Kerugoya processes which has already started processing purple tea [...]

Naivasha golf resort developer eyes home buyers with 500 units

Leleshwa Homes, a company associated with the Aberdare Hills Golf Resort in Naivasha, is putting up a multi-billion mixed development in the area, whose target will be middle-income buyers seeking a holiday home or investment in Naivasha property market. The developer said the estate would have 500 houses, club house, Leisure Park and commercial buildings on 100 acres, with completion expected in mid-2016 [...]

Tobacco growers’ earnings rise 30pc on BAT deliveries

Tobacco producers affiliated to BAT were paid Sh1.3 billion for deliveries last year, representing a 30 per cent increase on 2013 payments. BAT said Kenyan producers delivered eight million kilogrammes of leaf in 2014 compared to seven million in 2013, with the highest grade attracting Sh223 per kilogramme [...]

Pan Africa to use dividend cash for Gateway buyout

Pan Africa announced on Friday that it had opted to issue bonus shares instead of paying out a cash dividend, a decision that allows it to save tens of millions of shillings. The insurer has proposed a bonus issue of one new share for every two held, a move that will increase the volume of its ordinary shares by a third to 144 million units. Pan Africa Insurance Holdings expects to spend cash saved from the non-payment of dividend for the 2014 financial year on acquisition of Gateway Insurance and the construction of a new office block [...]