Author: David Indeje

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.…

Shareholders of I &M Holdings PLC have approved the acquisition of a  90 percent stake in Orient Bank Uganda. Following the green light during Virtual Extraordinary General Meeting, the lender will buy the shares from Hemlata Karia, Jay Karia, Morka Holdings Limited, Zhong Shuang Quan, Cornerstone M8 Limited, and the bank’s founder Ketan Morjaria worth USD 33.6 million (KSh3.6 billion). I&M Holdings operates in five countries – Kenya, Tanzania, Rwanda, Uganda, and Mauritius through its subsidiaries, affiliates, and joint venture investments in each of these countries. In the third quarter of 2020,  the lender reported a 30% dip in net…

Somalia has suspended visa-on-arrival for Kenyans in view of the Covid-19 pandemic with effect on 13th December 2020. This means ordinary passport holders will apply for the travel permit at Somalia’s embassy before departing Nairobi.  Diplomatic passport holders will be required to have approval from the Minister of Foreign Affairs and International Cooperation of the Federal Government. “In line with the federal government’s policy of ensuring security, improving migration management and reducing the risks of COVID-19 infections, all Kenyan passport holders travelling to Somalia are obliged to obtain visas from Somali embassies,” Somalia’s immigration authority said in a statement Monday.…

TechnoServe, an international nonprofit economic development organization, has partnered with the Aspen Network of Development Entrepreneurs (ANDE) to host its 4th Virtual Micro Retail Stakeholder Forum. The forum scheduled for 9th December is themed Adopting Digital Solutions to Overcome Key Micro-Retail Challenges. According to the organisers, micro retailers have been affected by the COVID-19 pandemic and there is a need to build resilience in order to survive.  “While the crisis has created challenges for shopkeepers, it has also highlighted substantial opportunities that will help businesses adapt and survive the crisis,” TechnoServe said in an emailed statement to Khusoko. “However, there…