KCB mobile phone-based service hits over one million accounts

KCB Group’s mobile phone-based lending services has hit more than one million accounts a month after it was launched, underlining the high potential of mobile banking. The platform dubbed KCB-M-PESA signed its one millionth customer this week and its deposits grossed Sh700 million since its launch last month [...]

Banks grow domestic debt by Sh81.5bn in four months

Commercial banks have since the beginning of the year grown their domestic debt holdings by Sh81.5 billion, marking the largest growth amongst investor categories. Pension funds had the second largest increase in domestic debt holdings. The resorting to domestic borrowing was also driven by the lower-than-projected tax collections [...]

Barclays in deal with Chandarias to offer insurance

Barclays Africa has entered into a joint venture deal with local businessmen Ayisi Makatiani and Darshan Chandaria to launch a life insurance firm. Investment vehicles headed by Mr Makatiani and Mr Chandaria –PE firm Fanisi Capital and Chandaria Industries respectively— own the remaining third equity. The bancassurance model allows lenders to sell insurance products as agents [...]

Safaricom’s bid to limit users meets opposition

Telecoms operator Safaricom’s attempt to have its post-paid tariff users use up their accumulated airtime, SMS credits and data in one month on Thursday met stiff opposition from consumers who complained that the move amounted to a breach of contract. Safaricom CEO Bob Collymore described the Karibu tariff as promotional, revealing that it has been loss-making since its launch [...]

TransCentury to double share capital at NSE

Investment firm TransCentury is set to double its authorised share capital in preparation for a rights issue whose proceeds will be used to a repay $80 million (Sh7.5 billion) convertible Eurobond it issued in 2011. TransCentury will on May 29 seek shareholders’ approval to increase its authorised shares to 1.2 billion from the current 600 million units [...]

TransCentury bets big on Civicon deals for rebound

TransCentury, a listed infrastructure firm that has recently plunged deep in the red, says it is eyeing multibillion shillings deals through a subsidiary. Chief executive Gachao Kiuna told analysts at a conference call that the company will go for deals worth between $5 million (Sh473 million) and $50 million (Sh4.73 billion) through Civicon. Analysts, however, point out the future revenues for Civicon are not assured since oil and gas exploration firms, who are major clients for its engineering subsidiary, are cutting back on their budgets as a response to falling oil price [...]

Kenya Power borrows Sh940 million from UBA

United Bank of Africa (UBA), has given Kenya Power $10 million (Sh940 million), marking one of its largest deals in the lucrative corporate lending market. Kenya Power will use the funds to upgrade its power infrastructure in readiness to distribute the planned additional 5,000 megawatts (MW) expected to be generated by 2017 [...]

Calls for caution as Treasury set for Sh2.17trn Budget

The planned expansion of the Budget by a quarter to Sh2.17 trillion in the next fiscal year is too ambitious and will unnecessarily balloon the public debt, experts have warned. There is concern that though public debt is currently sustainable, it is growing at a rapid pace at a time the economy has slowed down [...]