Mumias goes for its former CEO to drive turnaround

Mumias Sugar has hired an Australian, Eroll Johnston, as its new chief executive officer to drive turnaround of the company after receiving a Sh1 billion State bailout package. Mr Johnston’s term begins on August 1, with the tenure of the current CEO Coutts Otolo expiring at the end of this month.The new CEO is not a stranger to the sugar miller, having worked in the same capacity between 1988 and 2001…[...]

Barclays becomes the first bank to raise cost of loans

Barclays Bank of Kenya has raised the cost of loans beginning next month, becoming the first lender to react to the Central Bank’s increase of the benchmark Kenya Banks’ Reference Rate (KBRR).Mid-tier lender Commercial Bank of Africa has also notified its customers of the interest rate rise, signalling an increase of its cost of lending.Other banks are expected to follow suit, in tandem with the Central Bank of Kenya’s goal of mopping up cash in the economy to tame inflation and support the shilling…[...]

Bank sues KenolKobil over eviction bid

Family Bank has asked the High Court to stop oil marketer KenolKobil from kicking it out of a prime piece of land in Nairobi’s Kilimani estate, arguing that it has a valid lease agreement with the property’s owner.The bank says it initially rented the space from KenolKobil, which is also a tenant on the land, but the deal became void when an investor bought the plot in 2010 and revoked its lease…[...]

CBA credit rating down after expansion

Commercial Bank of Africa (CBA) credit rating has been lowered following its regional expansion and upgrading by the regulator to a tier-one lender. South African rating agency, GCR, has in its latest rating accorded CBA a long-term rating of A+ down from AA- in June last year and a short term rate of A1 from A1+…[...]

 Standard gauge rail material supplies earn local firms Sh23.5bn

Local firms have supplied material and services worth Sh23.5 billion to the standard gauge railway project with cement-maker Bamburi the largest beneficiary, China Road and Bridge Corporation (CRBC) said Thursday. The contractor of the Sh327 billion Mombasa-Nairobi standard gauge rail said it bought more than 150,000 tonnes of local cement. It was responding to allegations it imports Chinese cement…[...]

Fanisi invests Sh600m in Tanzanian firm

Private equity firm Fanisi Capital has made its first investment in Tanzania, buying a stake in Kijenge Animal Products, an agro-processing business.Fanisi, whose managing partners are AyisiMakatiani and Tony Wainaina, bought a minority stake in the Arusha-based Kijenge Animal Products for $6 million (Sh600 million). Fanisi did not disclose the size of its shareholding. Kijenge is involved in maize milling, animal feed production and rears chicken broilers…[...]

Uchumi workers now want in on ongoing talks to restructure chain

A workers union has written to the Uchumi Supermarkets board seeking involvement in the ongoing restructuring of the retail chain, which it says could lead to retrenchment of its members.The financially troubled Uchumi has announced a freeze on expansion plans and a possible closure of underperforming branches…[...]