Author: David Indeje

KCB Group, the largest financial institution in East Africa, has reported a flat net profit of Sh30.7 billion for the third quarter of 2023. “We delivered strong, sustainable growth in revenue from new business lines, the deepening of digital channels, and market-leading customer value propositions,” said the group. The group’s net profit was unchanged from the same period in 2022, mainly due to a 193.4% increase in provision for loan losses to Sh11.1 billion, reflecting the impact of the COVID-19 pandemic on the quality of its loan portfolio. However, the group’s revenue increased by 27.0% to Sh117 billion, up from Sh92.1 billion in the same period last year, driven by…

Remittance inflows from Kenyans living and working abroad surged to $355.6 million (Sh54.2 billion) in October 2023, an increase of Sh2.3 billion from the previous month, according to data from the Central Bank of Kenya (CBK). The remittance inflows in October were 6.9 per cent higher than the $332.6 million (Sh50.8 billion) recorded in October 2022. The cumulative inflows for the 12 months to October 2023 reached $4,165 million (Sh634.9 billion), a 4.2 per cent increase from the same period in 2022. “The cumulative inflows for the 12 months to October 2023 hit $4,165 million (Sh634.9 billion) compared to $3,996 million (Sh609.1 billion) in the same period in…

M-PESA has gained 1.2 million users in Ethiopia since launching its mobile money service in August 2023. The telco announced this during its half-year results for 2023–2024. M-PESA started operating in Ethiopia on August 16th, after getting a license from the National Bank of Ethiopia. M-PESA, a joint venture of Vodacom Group and Safaricom, is the most successful mobile money platform in Africa and a key revenue source for both telecoms. The launch marked a major milestone for Safaricom as it seeks to expand its service in one of Africa’s most populous countries. Safaricom also revealed that transactions worth $288…

Equity Group Holdings reported a 5.3% increase in its profit after tax (PAT) for the third quarter of 2023, reaching KES 36.2 billion. The growth was attributed to a 21.3% rise in net interest income, which reached KES 72.6 billion, as well as a 19.9% increase in customer deposits, which amounted to KES 1.2 trillion. “We are aware of the macroeconomic challenges, the significant rise of interest rates as a result of higher inflation in the earlier part of the year, and the significant depreciation of the local currencies against the US Dollar. While the risks have concentrated in Kenya,…

The Communication Authority of Kenya (CAK) has announced that call rates — Mobile Termination Rates (MTR) and Fixed Termination Rates (FTR)—will be reduced from March 1, 2024. MTR and FTRs are interconnection fees that operators charge each other for terminating calls from different networks.  These fees affect the call prices for consumers, as operators can offer lower calling rates when the termination fees are reduced. The new rate will be Sh0.41 per minute, down from Sh0.58 per minute, for all calls made within Kenya across all mobile networks.  The CAK said that this decision was made to balance the interests of both consumers and operators and to promote affordable…

MultiChoice Group, a South African pay-TV company, reported a 5% decline in half-year profit due to currency depreciation, losses from its streaming service Showmax, and lower earnings from its home market.  The group added DStv Premium subscribers for the first time in years, likely driven by the Rugby World Cup in France. The group operates pay TV in 50 sub-Saharan African countries. Its core headline earnings dropped to 1.9 billion rand ($105 million) in the six months ended Sept. 30, from 2 billion rand a year ago.  Its overall 90-day active subscriber numbers decreased by 2% to 21.7 million, with…