Weak shilling lifts central bank’s profit to Sh48bn

CBK made a Sh7.3 billion profit from ordinary operations compared to the Sh751 million loss it reported last year. A weak shilling also boosted the CBK’s operating profits mainly arising from forex gains made from sale of dollars in the market. The super profit is mainly the product of book gains earned from revaluation of the regulator’s basket of international currencies in its vaults [...]

Equitel urged to lower registration charges

Equity Bank needs to lower registration costs for thin-SIM card users in order to penetrate the mobile money market, financial research institute Helix has advised. The bank currently charges Sh500 for the thin-SIM cards, which come with Sh200 airtime making the net cost Sh300. Helix Institute argues that people might not see the additional value of thin SIM as they already have SIM cards [...]

Family Bank inks car financing deal with Simba Corp

Mid-tier lender Family Bank Thursday entered into an asset financing deal with auto firm Simba Corporation Ltd targeting individuals and small and medium enterprises (SMEs). The deal seeks to increase Family Bank’s customer base in a bid to boost its revenue as it strives to become a top tier lender by next year [...]

Australian oil explorer makes Sh3bn loss

Pancontinental Oil and Gas, which is prospecting for oil in the Lamu basin, made a loss as a result of exiting exploration in two blocks in Kenya. Pancontinental Oil’s results for the year that ended on June 20 show the company sank into a Sh3.12 billion loss following the withdrawals [...]

CBK fights bid to stop Dubai Bank liquidation

The Central Bank of Kenya opposes a suit filed by collapsed lender Dubai Bank’s second-largest customer seeking to stop its ongoing liquidation. Richardson and David, which had a total of Sh142 million in several accounts with Dubai Bank, says CBK is winding up Dubai Bank prematurely and that the decision could see it and other depositors lose substantial funds [...]

Treasury struggles to meet loan obligations

The government defaulted on two loan payments amounting to Sh1.1 billion in the last financial year, the Central Bank of Kenya has revealed. Treasury repaid Sh2.2 billion in the year to June to catch up with the repayment schedule, leaving the loan outstanding at Sh26.6 billion as at June this year down from Sh28.9 billion last year. The government had requested twice for a waiver to make delayed payments on IMF loans in the same period it defaulted on the Central Bank debt. [...]

Low revenues, high interest rates behind State cash crunch

Low revenue collection, high interest rates and an unfavourable exchange rate are the reasons the Treasury has no money that has stalled payment of essential expenditures, MPs were told on Thursday. State crisis has affected the 47 counties, release of cash for the free primary education and secondary school education funds as well as the National Assembly—with MPs salaries and those of their staff delayed. The high interest rates for domestic borrowing mean the government is afraid to borrow a lot of money from the market [...]