Otiato Guguyu, Author at Newsroom by Maudhui

November 15, 2023 Otiato Guguyu

NCBA enters deposit race with cash prize offers

NCBA Bank has kicked off a three-month deposit mobilization campaign named “Deposit & Delight,” offering cash rewards to savers. This initiative provides Kenyan customers with the opportunity to win up to Kes1 million for deposits as low as Kes5,000. The campaign underscores the bank’s commitment to expanding its retail banking business to support its key strategic priority of customer growth. Traditionally, banks offer prizes to encourage deposit mobilization, and as lenders grapple with the growing cost of fund deposit mobilization, more campaigns are likely to be launched. However, with the rise of digital banking, competition from unit trusts, and awareness of government interest rates, it…

Will charging Uhuru park have an impact on Nairobi’s mental health

Last week, I was late for an invitation to the Aga Khan Brain and Mind Institute, which included a media briefing ahead of this week’s conference on Healing the Brain in Nairobi. It was one of those late interventions of fate, and I had to cover for a colleague at the last minute. My usual experience with press briefings involves unidirectional sermons, where the newsmaker sits and pontificates their importance, expecting you to relay the message. When you show up late, you can usually crouch at the back and ask a colleague to give you a brief before catching up on the Q and A….

Climate News

November 13, 2023 Otiato Guguyu

Burn turning carbon credit into clean cookstoves

I have never met a worker so enamored with their employer the way Brian is. He shakes his head the way a Kenyan does while telling you something is out of the ordinary, and says ‘those guys’, meaning Burn; the makers of popular ecofriendly cook stove Jikokoa are the best place he has ever worked. He said, he had been there two years and he has never imagined working anywhere else since. I had agreed to visit Burn factory because they had sent out an invitation for a tour ‘the worlds largest clean cookstove manufacturer and cookstove carbon project developer, based in Nairobi’ on the…

Corporate

November 9, 2023 Otiato Guguyu

Journalist Union ask CMA to probe Standard Media Group

Journalists’ unions are urging regulators to investigate the crisis at Standard Media Group, which has left Kenya’s oldest news organization

Economy News

November 8, 2023 Otiato Guguyu

Ndiinomics: How Kenya wants to reap without sowing

I missed a part of the most significant intellectual battle in Nairobi when Dr David Ndii emerged from anonymity of X, formerly Twitter, to face his equally formidable peers. I found myself needing to be in two places simultaneously, but fortunately, thanks to Kenya’s industriousness, the event was broadcasted live and became part of the extensive volume of content that the country contributes to the industrial data economy. This achievement was made possible through the foresight of President Mwai Kibaki’s government, which connected Kenya to the world through an undersea cable, enabling the nation to establish its digital prowess and tap into emerging economic opportunities…

Corporate

November 3, 2023 Otiato Guguyu

Banks bet against President Ruto’s 10 percent interest rate prophecy

The third quarter in the banking sector may witness a significant uptick, driven by a government initiative to issue a Kes50 billion infrastructure bond scheduled for 13th November 2023. Kenya introduced this tax-free bond, which extends over six and a half years, with its coupon rate to be determined by the market. This decision followed a two-year bond that garnered only 35.1 percent of bids at 17.9 percent. Evidently, this signals the government’s openness to accept more aggressive bids, which, according to lenders constituting 45.2 percent of bond investors, may reach as high as 20 percent. The KCB Monthly Economic Brief has indicated that bankers

The man who brought East Africa’s roadside chapatis

In Kenya, chapati used to be considered an exclusive dish, typically reserved for Christmas celebrations and special occasions. This was partly due to its cost and availability. Today, chapati has evolved into a popular roadside snack in Kenya, available for as little as Kes30. In Uganda, it is often enjoyed alongside an egg roll known as a Rolex and kikomando, which involves folding it with beans. The starch has become an everyday meal partly because the global trade made it easy to import wheat. Kenya imports nearly nine times the wheat it produces both for local consumption and for supplying the region. While the country produced…

Corporate

November 2, 2023 Otiato Guguyu

Dr. Mwangi’s regional foresight rains dollars

For Dr. James Mwangi of Equity Bank, a challenging macroeconomic environment, currency devaluation, and a high-interest rate setting feel not only familiar but almost as if they had been foreseen. While Equity Bank’s stock has experienced a 21 percent decline to Kes36.05 per share during the current slump on the Nairobi Securities Exchange, which has earned it the unenviable title of the worst-performing exchange globally, its stock price remains one of the better-performing options. In contrast, close rival KCB has seen a 46.8 percent decrease in its share price, now standing at Kes20.95 per share, while Co-op has faced a 34 percent decline, with each

Ruto imports revive fortunes of SGR dynasties

Around the middle of last year, employees at Mitchell Cotts Freight Kenya Ltd, one of Kenya’s largest logistics companies, received a surprising email. It indicated that those who wished to leave the company were free to do so. Through a voluntary early retirement package, the company generously offered 31 days’ pay for every year worked, including financial training from ICEA Lion, an affiliate of the firm’s owners. At that time, the restructuring was not entirely surprising, given that Kenya’s economy had stagnated post-Covid-19, which had severely impacted the logistics business. Furthermore, a disruptive European war had exacerbated the situation. However, beyond the economic challenges, local…

Markets News

October 30, 2023 Otiato Guguyu

Old Mutual to sell office tower as shilling fall doubles loan cost

Old Mutual wants to sell its iconic Nairobi tower and convert over Kes8.8 billion of shareholder debt into equity to manage its finance costs, which have shot up by 96 percent due to the depreciation of the Kenyan currency. In a notice to shareholders, Old Mutual states that the shareholder loans, amounting to Kes8.8 billion as of 30 June 2023, which are a combination of foreign currency as well as local currency loans, will now be converted into preference shares. The South African giant also plans to put its iconic Old Mutual tower, built in 2016 for Kes5 billion, up for sale. As the Kenyan…