Safaricom yet to agree with Vodafone on M-Pesa royalty charges
Safaricom is yet to agree with Vodafone on new M-Pesa royalty fees nearly a year since the two telcos opened talks following the migration of M-Pesa servers from Germany. The relocation of M-Pesa servers to Kenya from Germany was expected to result in lower operational costs for Vodafone to justify a cut in royalty fees payable annually. The delay in concluding talks to lower the royalties means Kenyan consumers will have to wait longer before they can enjoy a cut in M-Pesa transaction fees […]
Barclays plan to sell off Africa unit faces hurdles, warns Citi
Citi analyst Charles Russell says decision by the UK lender to give itself a two- to three-year time-frame to conclude the divestiture is indicative of the lack of a ready buyer waiting in the wings to take up the stake. Barclays Plc effectively owns 42.67 per cent in Barclays Kenya indirectly held through Barclays Africa, which holds a 68.5 per cent stake in the Kenyan unit. According to Citi, possible buyers of the Barclays stake may include global banks, regional players from emerging or developed markets such as China or Australia, or even an in-region African player […]
Co-operative Bank mulls entering Rwanda as early as 2016
Co-operative Bank is mulling expanding into Rwanda as early as this year, says a banking report by Renaissance Capital. The bank said entry into new markets would be through partnerships similar to the case of the subsidiary in South Sudan where the Kenyan lender holds a 51 per cent stake while the government holds the rest […]
CfC Stanbic profit dips as Juba forex crisis erodes Sh7bn
CfC Stanbic Bank has reported a 14 per cent dip in net profit largely attributed to lower non-interest income and a drop in earnings from its Juba subsidiary, where the lender suffered a Sh7 billion hit linked to devaluation of the South Sudan currency. CFC Stanbic made a profit of Sh4.6 billion in the full-year to December 2015 compared to Sh5.4 billion a year earlier. The lender attributed the decline to decreased transactional income from the South Sudan business […]
CBK rules out review of order compelling declaration on Sh1m cash transactions
The Central Bank of Kenya (CBK) has maintained there will be no review of the new guideline requiring customers making cash transactions exceeding Sh1 million to complete an “over the counter large transaction form”. The guidelines aimed at taming money laundering require banks to, among other things, obtain from customers details of why the cash deposit or withdrawal is being made and the intended beneficiary or use […]
UK designer of iconic Dubai hotel buys Kenyan engineering company
A British engineering firm that designed the iconic Burj Al Arab hotel in Dubai has acquired a Kenyan company, making Nairobi its African headquarters for property, energy and infrastructure deals. Atkins will build on the strong regional market presence of Howard Humphreys East Africa to grow its consultancy business lines including design, engineering and project management. The entry of the London-Stock-Exchange listed company strengthens Nairobi’s profile […]