Parliament is set to reintroduce the Kenya Bankers Reference Rate (KBRR) as a base rate to calculate the cost of credit. According to new proposed amendments to the Banking Act, Parliament’s Finance and National Planning Committee: “Section 33B of the Banking Act is amended by deleting subsection (1) and substitution. Therefore the following new subsection: A bank or financial institution shall set the maximum interest rate chargeable for a credit facility in Kenya at no more than 4 percent above the base rate set and published by Kenya Bankers Reference Rate.” Banking Circular No. 4 of 2016 sent to Chief…
Author: Khusoko
Khusoko
Khusoko provides market insights into Africa's business investment as well as global trends that impact East African businesses.
Co-operative Bank of Kenya on Thursday launched a packaged financial solution for Micro, Small & Medium-sized Enterprises (MSMEs), segmented in bronze, silver and gold respectively. Co-operative Bank has committed to align itself with the regulator’s requirement of ensuring that a minimum of 20 per cent of its lending goes to the MSME sector. Further to this, in support of the Government’s key agenda, the Bank will closely support MSMEs who are key in the realization of this critical agenda. “The MSME customer of today is more exposed to emerging business trends that are both exciting and at the same time…
Kenya’s financial sector has been rated “satisfactory” due to reduced capital and a drop in asset quality compared to a strong rating which was achieved in 2016. In its Bank Supervision Annual Report 2017, the Central Bank of Kenya (CBK) said, “The decline in the industry’s overall rating was mainly due to a decline in capital adequacy and a deterioration in asset quality in 2017.” The institutions rated strong, satisfactory, fair and marginal in December 2017 were 9, 16, 12 and 3 respectively. The institutions rated strong decreased from 11 in 2016 to 9 in 2017. During the period, fifteen…
Safaricom has unveiled “Maisha Ni Digital” campaign that aims to give at least 10 million Kenyans access to the internet through their mobile phones by offering affordable 3G devices, convenient payment terms, and personalized data offers. The three-month campaign is in partnership with Google has unveiled Kenya’s most affordable smartphone: Neon Kicka 4. “As smartphone usage and share of Internet traffic from mobile phones grow in Kenya, we are witnessing a marked difference in income generated by those with Internet-enabled devices compared to those without. Vendors have been able to increase their customer bases by leveraging online marketplaces, and bodaboda…
SBM Holdings Ltd has acquired Chase Bank Kenya Limited (In-Receivership) through its subsidiary SBM Bank. The move comes after having completed the acquisition of certain assets. In the acquisition, SBM Kenya took over 75 per cent of the value of deposits under moratorium at CBLR, all non-moratorium deposits at CBLR. It will take up over a majority of CBLR branches and employees. The remaining 25 per cent of the value of moratorium deposits and other assets and liabilities remains in CBLR. In a Tweet, Chase Bank announced to its customers, “We are not chasing you away…but it’s time to say…
Equity Group Holdings has unveiled its fintech subsidiary, Finserve, that will operate as an autonomous commercial enterprise providing solutions. Equity Group CEO and Managing Director Dr James Mwangi said that fintech will play a critical role in deepening financial inclusion and democratizing financial service provision. “Thanks to Finserve, 97 percent of all Equity transactions are now outside the branch. In the spirit of shared prosperity, and having seen the revolutionary impact that fintech capabilities have brought to the Bank, we have taken a deliberate strategy to make Finserve an independent commercial subsidiary that will focus its efforts in delivering solutions…