Lower costs drive Barclays Kenya to 10pc net profit growth
Barclays Bank of Kenya recorded a 10 per cent net profit growth in the year ended December, helped by lower costs. The lender had made a net profit of Sh8.3 billion in the period compared to Sh7.6 billion the year before. Interest expenses rose sharply by 36.9 per cent, reflecting the expansion of customer deposits. The performance was largely driven by the Sh788.2 million the bank spent to retrench 170 employees in 2013, a one-off expense item whose absence last year contributed to the profit growth. Nevertheless, increase in interest income from growth of the bank’s loan book was another factor […]
Mumias Sugar reports Sh2bn loss, H1 revenues down 62pc
Mumias Sugar reported a bigger first-half loss from a year ago, citing lower prices as well as a prolonged shutdown, but forecast an improved second half. The cash-strapped miller said its loss widened to Sh2.08 billion ($22.8 million) from Sh407.4 million a year earlier. Net revenues for the period, during which it suffered a prolonged shutdown, fell 62 per cent to Sh2.67 billion […]
Mumias directors, 300 staff to lose jobs in revival plan
The government on Friday proposed on a Sh5 billion deal to revive Mumias Sugar that will see the board and management of the company sent home. The turnaround to be overseen by audit firm KPMG will involve weeding out “sugar brokers” and retrenching about 300 staff. The deal hammered out in a meeting chaired by Deputy President William Ruto will see more than 50 per cent of the board sent home. The restructuring will see the issuance of a rights issue to inject Sh4 billion to the ailing factory […]
Safaricom gets go-ahead to import digital set-top boxes
Telecoms operator Safaricom has applied for a digital broadcasting licence as it aims to take advantage of the convergence coming with digital TV migration to deepen its presence in the wireless Internet market. Safaricom applied for the license two weeks ago complete with approval for a set-top box. Bob Collymore, the Safaricom CEO said they are mainly interested in using the set-top boxes to deliver Internet to households that own a TV set. Safaricom plans to sell the universal set-top box in the local market, meaning buyers will also have access to all free-to-air TV channels […]
US energy firm sues Kenya for cancelling licence
WalAm Energy Inc wants to institute an international arbitration against Kenya for cancelling the firm’s licence for the exploration and development of the Suswa geothermal field. Official says WalAm’s licence was cancelled and Suswa field repossessed after the firm failed to carry out an environmental impact assessment study report as required by law.The firm is represented by Nairobi-based J Miles & Co in the case filed on February 23 at the US-based International Centre for Settlement of Investment Disputes, against Kenya’s Ministry of Energy, and the Attorney General Githu Muigai […]
Kenya to ban printing of brand names on cigarette packets
Though Kenya is yet to meet all the World Health Organization recommendations on tobacco control, the country is intensifying its efforts to tighten the noose on tobacco business. Recently, the Ministry of Health published the Tobacco Control Regulations, 2014, which will effectively ban cigarette manufacturers, distributors and importers from printing brand names or trademarks on cigarette packages and wrappers from June this year. Cigarette packages and wrappers will instead carry health warnings and pictograms on the front and back […]