Family Bank to sell PE funds Sh15bn stake

Family Bank plans to raise as much as Sh15 billion through sale of stake to private equity (PE) firms. Family Bank shareholders will now have to create more shares to accommodate potential investors. Family Bank intends to use the cash injection to fund its expansion while addressing the large unbanked population [...]

Dropping T-bill rates signal return of cheaper bank loans

The Treasury bill, a major competitor to private lending, has seen its rates come down for the third consecutive week further boosting expectations of lending rates dropping. Market watchers predict short-term rates will be in single digits in a matter of weeks, marking the beginning of the end of the high-interest rate environment as the Treasury turns down billions offered by banks and other institutions [...]

Imperial Bank bondholders and fixed depositors set for slashed rate payout

Central Bank of Kenya (CBK) Governor Patrick Njoroge Thursday said investors in the collapsed Imperial Bank’s Sh2 billion bond will be refunded cash even though not at the rate of return promised in the information memorandum. Holders of fixed deposit accounts will also miss out on interest payments. The governor disclosed they were building a case against senior managers of the bank who authorised falsification of financial statements [...]

Cost of diaspora remittances seen falling to 3pc after EU talks

The cost of sending money home from the diaspora is set to reduce thanks to behind-the-scenes discussions taking place at the EU African leaders’ summit in Malta. According to the UK’s Financial Times an agreement is set to be reached to reduce transaction costs to “less than three per cent” of the total sent by 2030. That would be a significant reduction on the current average of eight per cent to send $200, according to the World Bank [...]

Mombasa auction tea price hits new three-week low on rising volume

Tea prices at the weekly Mombasa auction continued on a losing streak this week, dropping by Sh2 as the volume offered for sale increased. Tea prices at the weekly Mombasa auction continued on a losing streak this week, dropping by Sh2 as the volume offered for sale increased. The Kenya Tea Development Agency (KTDA) has warned that the ongoing rains are likely to impact negatively on the price of the produce this financial year [...]

RSM set to replace Deloitte as Mumias Sugar auditor

RSM Eastern Africa is poised to be the external auditor of Mumias Sugar at a time when audit firms are under increased scrutiny by shareholders on how they handle books of account. RSM Eastern Africa executive chairman Ashif Kassam said the firm had “significant expertise in sugar” as they are also the auditors at Butali Sugar. The Kenyan unit is affiliated to London-based RSM International [...]

Unilever eyes Tatu City land in Sh17bn plan

Consumer goods manufacturer Unilever East Africa is set to acquire a 70-acre piece of land in Kiambu’s Tatu City, setting the stage for its Sh17 billion expansion plans. The multinational is now expected to build a new factory in the location in the medium term, replacing the current plant it has operated at Nairobi’s Industrial Area for decades. Unilever’s Kenyan factory produces a wide range of products for the local and regional market, with the planned new factory meant to boost capacity to keep up with rising demand in these markets [...]

Business openings in Africa catch eye of UAE investors

Investors from the United Arab Emirates (UAE) are aggressively seeking opportunities in Africa, coming in the wake of forays by other nations such as China and India. The giant Dubai Chamber of Commerce and Industry (DCCI), which represents the UAE investors, has recently opened liaison offices in Ghana and Ethiopia and targets to open another in Nairobi early next year as part of a strategy to grow business and investment ties with Africa [...]