CBK suspends licensing of commercial banks

Central Bank of Kenya (CBK) has in a shock move slapped a moratorium on licensing new commercial banks throwing off balance the entry of Dubai Islamic Bank and the planned conversion of Unaitas Sacco. The moratorium is likely to force up the price of fringe banks as well as shield large players from new competition. CBK has for six years frozen licensing without official order [...]

Helios holds on to Sh1.3bn Equity shares

Private equity firm Helios Investment Partners has re-emerged on Equity Group’s top shareholders list with a 0.87 per cent stake worth Sh1.3 billion a few weeks after the lender announced the institutional investor’s exit. Helios is listed as the ninth largest foreign investor in Equity, according to October records, with subsequent filings expected to show whether its position is ephemeral or long term. Equity said the investors who acquired Helios’ stake have a long-term commitment and are ready to raise their stake or provide additional equity financing to further grow the bank [...]

Two KQ flights turned back to JKIA over technical hitches

Kenya Airways has suffered two back-to-back international flight interruptions this week due to technical hitches. KQ flight 706 to Lusaka and Harare was on Wednesday morning turned back to the Jomo Kenyatta International Airport (JKIA) after the Embraer plane developed “pressurisation issues”. A day earlier, flight KQ576 to Bangui, the capital city of the Central African Republic, was turned back midflight due to “technical reasons”, which the airline did not elaborate [...]

Express Kenya faces KRA tax audit after losses

Kenya Revenue Authority has launched investigations into financial records of Express Kenya, a move that could see the Nairobi Securities Exchange-listed firm face a significant tax demand. Express Kenya earned a negative tax credit of Sh917,083 in the year ended December 2014, widening its net loss to Sh77.3 million in the period. Express Kenya had accumulated tax losses of Sh309.5 million as of December last year, generating tax assets of Sh92.8 million which it can use to reduce taxable income in the future when it makes profits [...]

Firm ‘allowed’ to trade in Safaricom Bonga points

Onfon Media, owned by businessman Dennis Makori, told the Business Daily that the firm got Safaricom’s approval and that the platform is already operational, trading over 100,000 points a day after it was relaunched on Sunday. Before the platform was closed by Safaricom in October 2013, Onfon was buying the loyalty points from the subscribers at Sh0.20 each and selling them for Sh0.35, earning a return of 75 per cent [...]

Cannon Assurance earns negative outlook rating after drop in profit

Cannon Assurance’s future outlook has been downgraded from stable to negative after profit drop and capital shrinkage. South African rating agency GCR assigned the negative grade to the insurer but retained BBB+ rate on its ability to settle claims. Cannon Assurance was 75 per cent acquired by South African Metropolitan and Momentum International (MMI Holdings) in February at an estimated Sh2.4 billion [...]