KBC Channel 1

Author: Ronald Owili

  • Shelter Afrique seeks additional shareholders for housing plans

    Shelter Afrique seeks additional shareholders for housing plans

    Shelter Afrique is seeking to expand its shareholding by onboarding 10 African countries who are not yet members of the pan-African housing financier.

    Currently, Shelter Afrique share capital is held by two groups of Shareholders composed of 44 African countries under Class A and the African Development Bank (AfDB), the African Reinsurance Corporation (Africa-Re), under Class B category.

    “The high number of country membership at 44 attests to the critical role played by Shelter Afrique in the provision of affordable housing across the continent. Our goal is to onboard all 54 countries as shareholders of this great pan-African development finance institution” the Company said in a statement.

    During High-Level Conference on Affordable Housing Finance for Low-Income Groups held recently in Tunis, Tunisia, the financier revealed that it is working towards enrolling more Africa indigenous companies under “Class-B” category and expanding further its shareholding to accommodate non-African investors under “Class-C” shareholding, which it has already created.

    Shelter-Afrique is targets to address the need for a sustainable housing delivery system and related infrastructure projects in Africa.

    The institution provides financial solutions and related services to support the supply and demand side of the affordable housing value chain.

    It also provides advisory and project management services for large-scale affordable housing projects.

  • International collaborations to strengthen Saccos – Chelugui

    International collaborations to strengthen Saccos – Chelugui

    Kenya’s cooperative movement could benefit from international best practices through global partnerships according to Cooperatives and Micro Small and Medium Enterprises Cabinet Secretary Simon Chelugui.

    Speaking in Atlanta, United States when he presided over the signing of a Memorandum of Understanding (MoU) between Trustage and Africa Confederation of Co-operative Savings and Credit Associations (ACCOSCA), Chelugui highlighted the vibrancy of  Savings and Credit Cooperative Organizations (Saccos ) in Kenya.

    Kenya’s cooperative movement is currently the largest in the continent with six million members an asset base of more than Ksh 810 billion.

    During the visit, Chelugui said the government is committed to the development of the sector as Kenya is set to host the headquarters of Africa Confederation of Co-operative Savings and Credit Associations (ACCOSCA) in Nairobi.

    AACUC Chair Maurice Smith will be part of the global Sacco chief executives visiting Kenya later in November this year.

    “In the same spirit, the great Republic of Kenya has been selected to host the African Confederation of Cooperatives Savings 24th Annual Congress. On behalf of the Government of Kenya, I would like officially invite the leaders of AACUC to be part of the 24th SACCA Congress. This will be an ideal connection with the motherland Africa,’ said Chelugui.

    The MoU Accosca will see the organizations conduct trainings on governance, leadership, management and other partnerships.

  • Starlink announces availability in Kenya

    Starlink announces availability in Kenya

    Elon Musk’s satellite internet firm, Starlink,  has announced its availability in Kenya meaning consumers can now subscribe to its services.

    Kenya is among three countries in Africa which the satellite internet provider now has active operations in.

    “Starlink for sale in Kenya! Note, buying a Starlink with global roaming allows you to travel almost anywhere,” said Elon Musk, SpaceX Chief Executive Officer on his official twitter handle.

    According to the firm, customers will will pay Ksh 89,000 for shipping the Starlink hardware, and another Ksh 3000 for shipping.

    The firm will also charge users Ksh 6,500 per month for its satellite internet service.

    The entry by the firm now sets ups Kenya for an increased competition in the internet market currently dominated by mobile broadband and optical fibre.

    Latest statistics indicates that Kenya’s available satellite bandwidth capacity remained flat at 2.513 gigabytes per second (Gbps) between the second quarter ending December and third quarter ending March compared to 14,413.053Gbps available undersea bandwidth capacity during the period.

    On the other hand, total utilised satellite capacity capacity remained flat at 0.105Gbps.

    Kenya currently has a total of 411 satellite internet subscribers, a number now expected to increase with entry of Starlink into the Kenyan market as reports indicate that Safaricom is also looking to introduce the services.

    Besides Kenya, Starlink is also available in Nigeria, Rwanda and Mozambique.

  • PrideInn Hotels to discount rates for visa card users

    PrideInn Hotels to discount rates for visa card users

    Guests staying at PrideInn Hotels have will enjoy a 5pc discount on their accommodation fees when they use a Visa card within its facilities.

    PrideInn Hotels Group Director of Operations and Business Development Jackton Amutala said following the partnership with the digital payment giant, discount will also apply to guests when they pay for meals and beverages within the hotels.

    “This collaboration reflects our ongoing efforts to prioritise customer satisfaction and reward our valued guests for choosing PrideInn as their preferred accommodation provider. We are confident that this partnership will enhance guest experiences and foster a strong and enduring relationship between PrideInn and Visa,” said Amutala.

    Visa Kenya Country Manager Eva Ngigi-Sarwari noted the rise in the use of digital payments in Kenya saying digital payment services are not only promoting financial inclusion but also reducing transaction costs and improving business efficiency.

    “We are delighted to have teamed up with PrideInn to bring tailored offers to our cardholders so they can save when they pay with Visa. This partnership is one of the ways we are showing our commitment to digitizing the economy and supporting both consumers and businesses through offering safe, secure and convenient digital payments,” she added.

  • IMF approves Ksh 136B loan for Kenya

    IMF approves Ksh 136B loan for Kenya

    Kenya will receive an immediate disbursement to the tune of Ksh 58.6 billion from the International Monetary Fund (IMF) to meet its budgetary expenses.

    This follows the conclusion of the fifth review of the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) y the IMF Executive Board.

    “Kenya’s economy has been resilient despite the worst drought in many decades and a difficult external environment. The ECF and EFF arrangements continue to support the authorities’ efforts to address emerging challenges to sustain macroeconomic stability and market confidence, promote growth, and advance ongoing reforms,” said Antoinette Sayeh, IMF Deputy Managing Director and Acting Chair.

    Kenya will also receive Ksh 77.7 billion under the Resilience and Sustainability Facility (RSF) in what the IMF says will support Kenya’s ambitious efforts to build resilience to climate change.

    Additionally, IMF has also approved an extension of the EFF/ECF arrangements from the current 38 months to 48 months in what is expected to grant Kenya sufficient time to implement the authorities’ reform agenda and realize the program’s key objective and an augmentation of access amounting to 75 percent of quota (SDR407.1 million) over the extended program duration for balance of payments support.

    Sayeh lauded the government for implementing key reforms against the backdrop of drought and challenging external environment.

    The lender also lauded the approval of the FY2023/24 Budget and 2023 Finance Act saying they are rucial steps to support ongoing consolidation efforts to reduce debt vulnerabilities while protecting social and development expenditures.

    “However, recent challenges in resource mobilization and elevated uncertainty call for contingency plans that can be quickly deployed to ringfence fiscal performance going forward. Tighter financing conditions also require a prudent debt policy and continued efforts to prioritize concessional loans,” she added.

    IMF further noted that the RSF program are expected to advance Kenya’s already strong track-record at addressing climate-related challenges.

  • Evergrande: Crisis-hit Chinese property giant reveals $81bn loss

    Evergrande: Crisis-hit Chinese property giant reveals $81bn loss

    Crisis-hit Chinese property giant Evergrande has revealed that in 2021 and 2022 it lost a combined 581.9bn yuan ($81.1bn; £62bn).

    The firm, which defaulted on its debts in late-2021, reported its long overdue earnings to investors in Hong Kong.

    Evergrande has been struggling with an estimated $300bn (£229bn) of debts.

    The huge losses highlight how much the developer was rocked in recent years by the property market crisis in the world’s second largest economy.

    In filings to the Hong Kong Stock Exchange late on Monday, the company said it lost 476bn yuan in 2021 and 105.9bn yuan last year.

    That came as revenue more than halved over the two-year period.

    Evergrande said the losses were due to a number of reasons, including the falling value of properties and other assets as well as higher borrowing costs.

    Shares in the firm, which was once China’s top-selling property developer, have been suspended from trading since March last year.

    China’s real estate industry was rocked when new rules to control the amount big real estate firms could borrow were introduced in 2020.

    The following year, Evergrande missed a crucial deadline and failed to repay interest on around $1.2bn of international loans.

    Its financial problems have rippled through the country’s property industry, with a series of other developers defaulting on their debts and leaving unfinished building projects across the country.

    Earlier this year, Evergrande laid out plans to restructure around $20bn in overseas debt.

    The company racked up debts of more than $300bn as it expanded aggressively to become one of China’s biggest companies.

    Over the last decade and a half the company’s expansion encompassed a wide range of industries including sports, entertainment and electric car making.

    In 2010, Evergrande took control of Guangzhou FC and changed its name to Guangzhou Evergrande Taobao FC.

    With an infusion of new money, the squad was strengthened and it immediately won promotion to the top tier of Chinese football. From 2011 it won the Chinese Super League title eight times, including seven seasons in a row.

    Last year, the club was relegated from the Super League, while Evergrande’s plans for a $1.8bn stadium were shelved. The club has also reverted to its previous name – Guangzhou FC.

  • Co-op Bank expands MSME loan book with Ksh 13.8B facility

    Co-op Bank expands MSME loan book with Ksh 13.8B facility

    Co-operative Bank has secured 13.8 billion ($100m) from a consortium of financial institutions to facilitate on-lending to Micro, Small and Medium-sized Enterprises (MSMEs) in Kenya.

    Co-operative Bank Group Chief Executive Officer Dr. Gideon Muriuki said the facility provided by the group led by DEG and has been fully disbursed is a significant support to the bank especially as the bank embarks on digitization with the recent transition to a new, robust core banking system.

    “The funding by DEG and the Consortium is most timely in view of the great need to better support our business customers. In addition, the long-term tenure of the facility has significantly boosted the bank’s ability to offer solutions that are better structured to fulfil the long-term financing needs of MSMEs,” said Muriuki.

    The consortium included The Africa Agriculture and Trade Investment Fund (AATIF), Micro Small Medium Enterprises Bonds (MSMEB) and European Development Finance Institutions comprising Finnfund, Norfund and the co-financing facility European Financing Partners (EFP).

    “By acting as lead arranger and providing the subordinated loan to Co-op Bank, DEG contributes to the further development of Kenya’s financial sector and the wider economy through the creation of jobs and local income, all geared towards the attainment of Sustainability Development Goals,” added Monika Beck, Member of DEG’s Management Board.

    Co-op Bank currently has more than 17,000 MSME customers accounting for at 16.9pc of its total loan book.

  • Jubilee Insurance launches Ksh 3M art competition for schools

    Jubilee Insurance launches Ksh 3M art competition for schools

    Ten pupils from ten primary schools across Kenya stand a chance to win Ksh 3 million scholarship following the launch of 2023 Live Free Art Competition by Jubilee Life Insurance.

    Speaking during the launch, Jubilee Life Insurance Retail Life and Pensions General Manager Wilbroda Odera said the top pupils in the competition will be awarded with full high school education scholarship.

    The Live Free Art Competition which is in its third year targets pupils across Kenya between Grade 1 and 4 under the Competency Based Curriculum (CBC).

    “We are excited to launch the third edition of the Jubilee Live Free Art Competition. We believe that art plays a critical role in the development of young minds, nurturing cognitive abilities such as creativity, problem solving, logical reasoning and self-expression. The art competition will enable young learners across Kenya to demonstrate their artistic prowess and to be recognized for their talents,” said Odera.

    Participating pupils will be required to submit original artworks illustrating their understanding of the theme, ‘Celebrating Jubilant Moments’, in various mediums including painting, drawing, collage or mixed media. Participants will be allowed to use watercolours, coloured pencils, crayons, charcoal, ink or any other locally available material.

    The competition will be divided into two categories comprising Grade1 and 2 and Grade 3 and 4 with interested required to submit their artwork September 8, 2023.

  • Diaspora remittances fall to Ksh 48.8B in June

    Diaspora remittances fall to Ksh 48.8B in June

    Kenyans living abroad sent home Ksh 48.8 billion ($345.8m) in June this year compared to Ksh 49.6 billion ($352.1m) they sent home in May representing a marginal decline of 1.6pc.

    Despite the month-on-month decline, latest data by the Central Bank of Kenya indicates that remittance inflows rose 6.1pc in June this year when compared to the same month last year when diaspora remittances totaled Ksh 46 billion.

    According to CBK, cumulative inflows for the 12 months to June remained steady at Ksh 566.4 billion ($4.017b) compared to Ksh 565.7 billion ($4.012b) in a similar period in 2022, an increase of 0.1pc.

    “The remittance inflows continue to support the current account and the foreign exchange market. The US remains the largest source of remittances to Kenya, accounting for 54pc in June 2023,” said CBK.

    Of the $195.7 million worth of inflows from North America during the month, the US accounted for $189 million or Ksh 26.7 billion.

    Remittance inflows from Europe totaled Ksh 9.3 billion ($66m) with remittance from the United Kingdom, Germany and Switzerland amounting to $34.2 million, $12.1 million and $5.8 million respectively.

    Saudi Arabia was the leading source of diaspora remittances fom Asia with $30.9 million out of $48 million, followed by the Qatar and United Arab Emirates with $4.6 million and $3.9 million respectively.

    Money sent home by Kenyans working in other African countries reached Ksh 3.6 billion ($25.2m) with Tanzania leading the pack with Ksh 730.2 million ($5.2),followed by Uganda with $4.9 million.

    On the other hand, diaspora remittance from Australia and Oceania amounted to $9.1 million.

  • KRA tax collection up 6.7pc to Ksh 2.17T, but below target

    KRA tax collection up 6.7pc to Ksh 2.17T, but below target

    The Kenya Revenue Authority (KRA) has said it collected Ksh 2.17 trillion in a year to June 30, 2023, which is a 6.7pc growth from Ksh 2.031 trillion it collected in the previous fiscal year.

    While year-on-year tax receipts grew by Ksh 135 billion, the authority still came short of its revenue collection target of Ksh 2.2 trillion.

    According to KRA Acting Commissioner General Rispah Simiyu, the revenue performance was impacted by the domestic economy which contracted to 4.8pc as a result of drought witnessed in the better part of last year and the raging Russia-Ukraine which continues to disrupt commodity supply chain.

    “The revenue collection signifies a performance rate of 95.3pc against the target. This is the second year in a row that KRA has surpassed the two trillion mark,” said Simiyu.

    During the year under review, domestic tax collection grew by 8.5pc to Ksh 1.407 trillion against a target of Ksh 1.481 trillion, which translates to a performance rate of 95pc.

    On the other hand, customs revenue grew 3.5pc to reach Ksh 754.1 billion, a performance rate of 95.6pc.

    “Despite overall import values increasing by 15.3pc, customs taxes performance was in part affected by growth in exemptions and remissions, which grew by 39.7pc, driven by special exemptions accorded to rice, maize, sugar, and cooking oil,” she stated.

    According to the authority, the special exemptions on the products which were part of the government’s strategies to mitigate against adverse effects of drought and to reduce the cost of living accounted for 24.8pc of exemptions accorded in the FY2022/2023.

    Collection from excise on betting which was charged at the rate of 7.5pc in the last financial year grew 116.2pc to Ksh 6.6 billion against a target of Ksh 5.72 billion.

    “The performance is attributed to the integration of the betting companies into the KRA tax system. The integration has streamlined tax remittance from the sector and scaled up revenue collection,” added Simiyu.

    Domestic Value Added Tax (VAT) collection grew 11.3pc to Ksh 272.45 billion while corporation tax increased 9pc to Ksh 263.82 billion on account of  increased remittance from among others sectors, finance and insurance, ICT, manufacturing, wholesale and retail trade, and energy. The sectors contributed 77.8pc of the corporation taxes, KRA said.

    Pay As You Earn (P.A.Y.E): P.A.Y.E registered a growth of 7.2pc with a collection of Ksh 494.98 billion during the fiscal year.

    KRA says its tax base expansion efforts during the period resulted to additional revenue amounting to Ksh 14.65 billion.