Author: David Indeje

Kenyan banks have restructured 46% of loans equivalent to Ksh 1.38 trillion to provide Covid-19 relief to borrowers the Central Bank said Thursday. This translates to 46.5 percent of the total banking sector loan book of KSh 2.97 trillion by the end of October.  The regulator said this was in line with the emergency measures it announced on March 18.  “These measures have continued to provide the intended relief to Borrowers,” said Dr Patrick Njoroge when the Monetary Policy Committee (MPC) met to assess the outcomes of its policy measures deployed since March to mitigate the adverse economic effects and…

The Monetary Policy Committee (MPC) of Kenya’s Central Bank kept interest rates unchanged on Thursday as expected amid concerns over a surge in Covid-19 infections. According to the regulator’s November 2020 MPC Private Sector Market Perception Survey, respondents attributed the improvement to continued normalization of economic conditions with the lifting of COVID-19 restrictions, strong agricultural production, and Government focus on infrastructural projects. The Committee said policy measures that have been implemented since March were having the intended effect on the economy.  “The MPC concluded that the current accommodative monetary policy stance remains appropriate, and therefore decided to retain the Central…

KCB Group Plc Thursday said it has signed a definitive agreement with Atlas Mara to acquire Banque Populaire du Rwanda Plc (BPR) and African Banking Corporation Tanzania (BancABC).  The proposed transaction will increase the bank’s regional footprint, as the bank group explores new group opportunities.  In the agreement, KCB will acquire a 62.06% stake in Banque Populaire du Rwanda Plc (BPR) and a 100% stake in African Banking Corporation Tanzania Limited (BancABC) from ATMA in Rwanda and Tanzania, respectively. “Once the transaction is completed, the Group’s Rwanda and Tanzania businesses are expected to have stronger financial credentials to support business…

Carbacid Investments Plc and Aksaya Investments Plc are set to acquire 100% of BOC Kenya at a price of Ksh 63.50 per share.  In a statement issued Thursday, BOC Holdings said it holds 65.38 percent of the ordinary shares of BOC Kenya has issued an irrevocable undertaking to the offers to accept the offer on certain terms and conditions including a long stop date of 31 July 2021. “The offer is also subject to there being no reduction of more than 15 percent in the net asset value of the Company as at 31 December 2019,” BOC Kenya said.  The…

The COVID-19 pandemic has exacerbated the pre-existing inequities in Kenya with an estimated 2 million being pushed into poverty, says World Bank Report. According to the Economic Update, Navigating the Pandemic report says this has been through serious impacts on livelihoods, by sharp decreases in incomes and employment following the coronavirus-induced lockdown. “Kenya’s poor population was predominantly rural and less well education pre- Covid-19. However, the shock of Covid-19 created a new group of ‘newly’ poor Kenyans with demographic characteristics,” said the World Bank. “They tend to be urban with household heads who are younger and more educated. Newly poor…

Country’s economic growth to rebound next year The World Bank expects Kenya’s economy to contract between 1.0 percent and 1.5 percent in 2020 FY21 according to its new country Economic Update, Navigating the Pandemic. Under baseline assumptions, the economy is projected to rebound quickly in 2021, lifting real GDP by 6.9 percent year on year. “A major factor in this strong rebound is the impact on the national accounts of measured education sector output normalizing, which is projected to add 2.2 percentage points to real GDP growth next year.” In contrast, Treasury projects the economy to grow at 0.6 percent…