Equity’s returns on shareholder funds seen falling Regional lender Equity Bank could be headed for lower returns on shareholder funds as it doubles bad debt provisions and margins on interest income fall. As Equity grows its loan book, the analysts say, the return on equity (ROE) — used to measure…

PSC shortlists five to battle out for Central Bank governor position Veterans with long experience in public finance management dominate the race to replace retired Central Bank of Kenya governor even as the Public Service Commission (PSC) targeted to fill the influential slot by May. The position of CBK…

Family Bank earnings hit Sh1.8 billion Strong lending to SMEs helped boost Family Bank’s interest income leading to a 46 per cent growth in net profit for the year ended December 2014. The interest income growth was from SMEs. The bank expects to spend Sh1 billion to upgrade its IT…

Centum explores Sh8bn bond option in expansion plan Centum Investments is exploring the possibility of raising an estimated Sh7.5 billion from the bond market to fund its operations in various sectors of the economy. The funds are to finance Centum’s ambitious strategic plan that will focus on investments in the education,…

New Kenyan law to ease revenue payments set for next year Kenyans will have to wait for at least a year to have a new Income Tax Act. The new Act is intended to, among other things, simplify payments to the revenue authority, remove exemptions and broaden the tax…

Bad debts to hurt lenders’ profits on tight CBK scrutiny A new report by Citigroup’s investment banking arm has indicated that the profitability of Kenyan banks will take a hit from increased provisioning for bad loans as Central Bank of Kenya (CBK) heightens its scrutiny on their books. The international…

KCB issues caution over proposed restructuring Kenya Commercial Bank Ltd (KCB) directors have urged shareholders and customers to exercise caution when dealing with the bank’s shares. This follows a resolution last week by the bank’s top management to undertake a restructuring which will lead to the establishment of a non-operating…

Banks left with idle capital after fund raising campaigns Data from the Central Bank of Kenya shows lenders have core capital (shareholders’ funds) equivalent to 16.7 per cent of their loan book against the statutory minimum of 10.5 per cent. The headroom against regulatory requirement gives the lenders muscle to…

Food prices offset gains from low energy bills edging up inflation to 5.61pc Inflation bucked a five month decline in February, inching up marginally on rising prices of key food items which offset benefits from lower energy bills. Data from the Central Bank of Kenya (CBK) shows that the cost…

CfC Stanbic triples dividend payout after 10.9pc net profit increase CfC Stanbic Holdings has nearly tripled its dividend payout following a 10.9 per cent increase in net profit for the full-year ended 2014 driven by sharp growth in interest income. The holding company, which owns CfC Stanbic Bank and its…