Author: James Wambua

IMF
MarketsNews
James Wambua

Kenya gets nod for Sh100 billion fresh IMF loan

The International Monetary Fund (IMF) announced on Thursday that it has secured a provisional agreement with Kenya, allowing for the immediate disbursement of $682.3 million (KES 103.85 billion). The country has also secured an augmentation of the current program’s funding by $938 million (142.76 billion). The IMF noted that uncertainty surrounding Kenya’s ability to access financial markets had been placing significant strain on liquidity. This was primarily attributed to the impending maturity of a substantial Eurobond, valued at $2 billion and set to mature next year. Haimanot Teferra, the head of the IMF’s Kenya mission, explained, “The tightening global financing conditions for frontier economies and…

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Safaricom
MarketsNews
James Wambua

M-PESA revenue surge propels Safaricom half-year profit to Sh34.2 billion

The reintroduction of M-PESA charges, along with the onboarding of more merchants on Lipa Na M-PESA, has increased M-PESA’s contribution to Safaricom’s earnings by 16.5 percent or Kes66.2 billion in the half that ended on September 30. Safaricom reports that business-related payments, such as bill payments and purchases, increased significantly by 40.2 percent or Kes17.6 billion YoY in the same period when M-PESA merchants saw a 22.3 percent uptick to 658,000. Out of the Kes18.3 trillion in transactions processed through M-PESA during this period, Kes 10.1 trillion, or 55.4 percent, were subject to charges, reflecting a 64.3 percent year-on-year increase, according to Safaricom. However, Safaricom…

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NCBA
CountiesNews
James Wambua

Agriculture and services set to lead Kenya’s 6% 2024 growth — NCBA

A rebound in agriculture, driven by favorable weather conditions, along with increased activity in the services sector, is expected to anchor Kenya’s growth next year. NCBA Managing Director and CEO John Gachora has identified these two sectors as the drivers of the country’s GDP growth, which could hit 6 percent in 2024. “Agricultural output is likely to expand by 5 percent in 2024, according to our internal projections,” Mr Gachora stated during NCBA’s Economic Forum held under the theme “Macroeconomic Outlook; Divergence Across Economies and Sectors.” On agri-export flows, including coffee, tea and horticultural crops, the lender says they will remain within their long-term-average trend…

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Absa Kenya green financing
Corporate
James Wambua

Sowing the seeds of sustainability with green financing

The debate surrounding the journey to net zero emissions has now firmly landed in Kenya. While the government is set to play a key role in setting the stage for climate action, the spotlight is fast shifting to the private sector, where its essential role is increasingly taking centre stage in driving the transition toward sustainable, eco-friendly practices. This shift is not only essential for Kenya’s economy but also to align with the global push for a sustainable tomorrow. In the quest to tackle climate change, the private sector’s participation has been met with varied opinions. It’s evident, though, that some forward-thinking companies are taking

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Ruto Education
FeaturedNews
James Wambua

The waiting game: freshers on the edge of hope

In a country bursting at the seams with promises, there exists a shared hope among Kenyan university freshers – a hope for a brighter future through education. But at times, hope can seem as fragile as an elusive butterfly, always just within reach yet constantly fluttering away. Imagine this: thousands of determined young minds, prepared to embark on their academic journeys, were uplifted by the assurance of receiving timely government funding under Kenya’s new university financing model. However, for now, they must wait patiently, only to discover themselves caught in what appears to be an unending pause. Two months have elapsed, and the promise remains…

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BURN Manufacturing
EAC & The HornNews
James Wambua

BURN ignites change with Sh1.5 billion green bond for clean cooking

Clean cookstove maker BURN Manufacturing (BURN) has issued Sub-Saharan Africa’s first-ever green bond, aiming to raise US$10 million (just over Kes1.5 billion) for clean cooking initiatives. The bond’s proceeds will enable BURN, a clean stove distributor, to expand its manufacturing capacity in Kenya. With this injection of funds, BURN anticipates increasing its production from the current 400,000 units per month to 600,000 units, including a range of life-saving biomass, electric, and LPG stoves. BURN, which is also involved in carbon offset projects, plans to use the fresh capital to establish a new plant in Lagos, Nigeria. Founded in 2011, BURN seeks to save lives and…

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Anti-Money Laundering Law Kenya
Economy
James Wambua

What you need to know about Kenya’s new law against dirty money

The Law Society of Kenya (LSK) is now required by the law to report suspicious financial transactions related to lawyers as Kenya steps up the fight against money laundering. According to the 2021 National Risk Assessment (NRA), the legal profession was identified as having a high vulnerability to money laundering. This was primarily due to the abuse of client-attorney privilege and the exclusion of law firms from the category of reporting institutions. By law, lawyers are now obligated to report suspicious transactions when involved in the purchase and sale of real estate or the management of client assets and accounts. They are also required to

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CorporateNews
James Wambua

Absa’s Sh100 billion war chest to power Kenya’s SME growth and resilience

Absa Bank Kenya has announced a commitment of Kes100 billion to support the growth of Kenya’s Micro, Small, and Medium Enterprises (MSMEs), a move expected to create more job opportunities in a sector employing over 80 percent of Kenya’s workforce. This funding comes at a time when Kenya’s MSMEs are contending with a challenging operating environment marked by high inflation, increasing interest rates, the impact of the Russia-Ukraine war, and elevated taxation as per the Finance Act of 2023, among other factors. Absa asserts that this multi-billion-shilling investment will play a pivotal role in driving the growth of MSMEs across various value chains in Kenya…

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CorporateNews
James Wambua

Court stops Equity’s rushed takeover of TransCentury

High court has slammed the breaks on Equity Bank’s attempt to seize two listed companies TransCentury and East Africa Cables over unpaid debt, stating that the move was premature. Equity Bank seized TransCentury after the Kibaki-era investment firm raised Kes828 million instead of Kes2 billion from a cash call. Part of the money raised from the rights issue was meant to pay off Equity Bank’s debt and the bank sought to place TransCentury and its subsidiary East African Cables (EAC) under receivership to prevent the company directors from accessing the raised funds. The move now means TransCentury and EAC can continue with their business unhindered…

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