Author: Muindi

Family Bank shareholders have greenlit the creation of a non-operating holding company. The holding company will own shares along with any future non-banking subsidiaries, as the bank gears up for expansion across Africa. “Expanding regionally remains a key part of our strategy to grow the business,” stated Family Bank CEO Nancy Njau. “We’re exploring entry into countries within East, West, and Central Africa.” Shareholder approval came during the bank’s Annual General Meeting (AGM). The AGM also saw approval for a dividend payout of Sh723 million for the financial year ending December 2023 compared to Sh795 million in the previous year.…

Kenya’s Finance Minister Prof Njuguna Ndung’u presented the 2024/25 budget, aiming to tackle Kenya’s high debt while supporting the ongoing economic recovery. The budget targets a significant reduction in the fiscal deficit, bringing it down to 3.3% of GDP compared to the revised deficit of 5.7% for the previous year (2023/24). As a result, it plans to spend Sh3.92 trillion in the upcoming fiscal year. Subsequently, it expects to collect Sh3.432 trillion in revenue, leaving a budget deficit of Sh597 billion. To finance the deficit, the government will borrow Sh263 billion domestically and Sh333.8 billion from foreign sources. “The fiscal…

British International Investment (BII) has sold its 10.1% stake in I&M Group, a leading East African banking group, to AfricInvest, a Pan-African investment firm. I&M Group operates in Kenya, Mauritius, Tanzania, Rwanda, and Uganda. It offers financial services to individuals, small businesses, and corporations. “Having been a trusted equity partner to I&M for over 7 years, today’s announcement represents a great outcome to BII’s engagement, as we exit to a like-minded partner with a focus on commercial sustainability and development impact,” Maximilian Biswanger, Investment Director at BII, said in a statement. AfricInvest, already a shareholder in I&M Bank Rwanda, has…

Local carrier Safarilink Aviation Limited will discontinue flights between Nairobi and Kitale, citing an unfavourable business environment. The route’s success was hampered by two main factors: high fuel costs and inadequate airport facilities, which resulted in flight cancellations. This decision comes after Safarilink resumed service on the route in April 2022 [following a two-year hiatus due to airport renovations]. The National Treasury had allocated Sh727 million in the 2023-24 budget for the expansion and refurbishment of several airstrips across the country. This investment aimed at improving air transport infrastructure in these regions. The budget breakdown highlights specific allocations: Migori Airstrip:…

Tesla and SpaceX CEO Elon Musk is critical of Apple’s decision to integrate OpenAI technology, threatening to ban Apple devices at his companies. Musk claims integrating OpenAI at the operating system level presents an “unacceptable security violation.” And visitors will have to check their Apple devices at the door, where they will be stored in a Faraday cage — Elon Musk (@elonmusk) June 10, 2024 He proposes banning Apple devices and storing them in Faraday cages (metal enclosures blocking electromagnetic signals) for visitors. He further questions Apple’s ability to ensure user security and privacy while using OpenAI technology. “It’s patently…

Kenyan insurance company Directline Assurance has ceased operations, citing financial mismanagement by previous leadership and a disagreement with the Insurance Regulatory Authority (IRA). Directline terminated all employee contracts and dissolved its board. Royal Credit Limited, chaired by S.K. Macharia, took over Directline’s assets. Macharia blames the closure on over Sh7 billion misappropriated by former Directline directors and accuses the IRA of failing to act. “The board of directors of Directline has been dissolved and all the assets taken over by Royal Credit Ltd. All employees have been dismissed, and Directline will no longer issue insurance services,” Macharia said. We found…