Author: David Indeje

Regional based insurance firm UAP Holdings has proposed to merge its life insurance business with the life insurance business of Old Mutual Life Assurance as part of its internal restructuring of the Group.   According to the proposal, UAP Holdings will acquire shares in Old Mutual through its subsidiary UAP Life Assurance Limited and Old Mutual Assurance Company resulting in a single ‘unified insurance business’. “UAP Old Mutual Group is confident that the restructuring will ensure the group realises increased efficiencies from consolidating the Kenyan business of UAP Life and OMLAC, while achieving a simpler group corporate structure,” said the Board.…

Moody’s Investors Service says an upward rating pressure on the Kenyan banks’ ratings is limited given the negative outlook. The rating agency said in a statement on the latest ratings of 32 banks across 10 African countries: Angola, Democratic Republic of Congo, Egypt, Ghana, Kenya, Morocco, Nigeria, Tanzania, Tunisia and Uganda. In Kenya, the banks that were focused on include Co-operative Bank of Kenya Limited,  Equity Bank (Kenya) Limited, and KCB Bank Kenya Limited. The banks’ outlook could change back to stable if the sovereign rating outlook is changed back to stable, Moodys said in a statement. However, if it…

Kenya’s Constitutional Court awarded four of the eight petitioners Ksh.16million as damages for violation of their constitutional rights during the 2007/08 post-election violence. High Court Judge Weldon Korir on Thursday while delivering the landmark judgement, he said the government failed to investigate and prosecute the 2007-08 post-election sexual violence terming it “Violation of Constitutional rights” to the victims. “I must emphasize that sexual violation just like any other violation of human rights and freedoms should be compensated. Sexual violence carries with it both physical and mental pain and I am surprised that the 1st, 4th, 5th and 6th respondents can…

Standard Chartered Bank Kenya Wednesday issued a profit warning amid a growing volume of failing loans. Board Chairman Patrick Obath warned that the bank expects to report a ‘substantial decline in the profit after tax for the year ending Dec 31. 2020. As a result, it will report its annual results for the year in the first quarter of 2021. “It has been a challenging year with the protracted heath pandemic and economic crisis, and against this backdrop, SCBK’s current performance forecasts indicate a substantial decline in the profit after tax for the year…” said Obath. However, the lender remains…

Global credit rating agency Fitch Ratings says Kenya’s fiscal deficit is expected to widen to 8.3% of GDP in the fiscal year to June 2021 (FY21) from 7.4% in FY20. The agency attributes it to the timing of the Covid-19 pandemic shock relative to the fiscal year and election-related spending pressures. Further, it says the country will find it difficult to tame its rising debt even if it successfully receives IMF’s $2.3 billion (KSh255 billion)  because of its uneven track record in implementing fiscal policy. ”Kenya’s government has an inconsistent record on fiscal consolidation and implementation of IMF programmes, and…

Kenya and the United Kingdom have signed a trade agreement that will ensure the continuation of goods and services between the two countries as the UK prepares for the end of its transition period with the European Union. The trade agreement will ensure that all companies operating in Kenya, including British businesses, can continue to benefit from duty-free access to the UK market. According to a joint statement from the UK, the UK-Kenya trade was worth £1.4 billion in 2019. “We have a great opportunity ahead of us,” Betty Maina, Kenya’s trade minister, said in a statement issued from London.…