EABL loses Sh240m claim against former top manager

Beer maker East African Breweries Limited has lost a Sh240 million claim against an ex-employee whom it accused of using a shell company to steal from the firm. High Court judge Joseph Sergon on Friday dismissed a civil suit EABL filed against its former procurement director, Aristide Nkoumondo. The judge ruled that EABL should have sued the shell company that Mr Nkoumondo allegedly used to illegally sell 2,500 refrigerators owned by the beer maker [...]

Family Bank, PE firms in capital talks

Family Bank is in talks with private equity (PE) firms to inject capital into the lender in exchange of a stake in the business. Family Bank is seeking equity financing to supplement proceeds from the recently issued bond. The bank managed to raise Sh2 billion through a bond, half the Sh4 billion it was targeting with the debut notes. High interest rates on Treasury bills, tight liquidity and investor uneasiness following the closure of Imperial Bank by regulators made raising the whole Sh4 billion difficult [...]

Gulf African backs banking laws overhaul

Gulf African Bank is pushing for hastening of proposed changes to banking laws to allow introduction of Sukuks and other Sharia-compliant products. The fully fledged Islamic lender says changes to the Banking Act will open the door for Sharia-compliant bonds and other instruments that can be used for trade finance. Gulf African is targeting SMEs and county business especially in the coastal [...]

Domestic tea consumption drops to 1.97m kilos as production rises

Tea consumption in Kenya dropped in the first eight months compared to the corresponding period last year. The reduced consumption is a setback to the directorate’s efforts to promote consumption by Kenyans, who have for many years only taken up just a fraction of what is produced by farmers. Kenya exports 95 per cent of the tea produced locally and is the largest exporter of the beverage to the world market. This is unlike China, which is the leading producer of the commodity but consumes all its tea [...]

KTDA begins paying farmers hefty tea bonus

Tea farmers affiliated to Kenya Tea Development Agency (KTDA) have started receiving their second payment, popularly known as bonus, for the 2014/2015 financial year. The money was distributed to their bank accounts and factories last week Friday, according managing director Lerionka Tiampati. Farmers earnings in the year that ended June improved compared to the previous financial year when their payment dropped significantly [...]

Uchumi sets 1-year target to re-open in Dar, Uganda

Uchumi Supermarkets has set a one-year timeline within which it will re-enter the neighbouring countries it is currently exiting due to financial difficulties. The retail chain recently announced plans to close its loss-making Uganda and Tanzania branches. The retailer says the outlets are bleeding cash and have fallen behind on supplier payments, relying mainly on the Kenyan business for support [...]

PwC appointed new receiver at Karuturi

CfC Stanbic Bank has appointed PricewaterhouseCoopers as the new receiver managers of struggling flower firm Karuturi Limited in place of Ian Small. CfC Stanbic put Karuturi under receivership after it failed to repay a Sh400 million loan. Karuturi is also battling Indian Bank ICICI over a disputed Sh1.7 billion loan. Owners of the struggling flower firm have been battling Mr Small and Mr Day over allegations that they were trying to waste away Karuturi [...]

Treasury gets IMF nod in bid to raise fresh Sh155bn debt

The National Treasury has been backed to raise fresh commercial debt of up to Sh155 billion ($1.5 billion) by December under an agreement reached with the International Monetary Fund (IMF), even as the economy chokes under huge external liabilities. The Treasury now views the domestic market as costlier [...]