Author: Muindi

Kenyan coffee production is expected to fall to 750,000 bags in 2024, a decrease from 750,000 bags in 2023. The decline is attributed to several factors like stagnant harvested areas where farmers have converted coffee farms to real estate due to limited profitability. Two, a shortage of certified planting materials and restricted access to inputs and extension services for farmers. The 2024 Coffee Annual Report by the Foreign Agricultural Service (FAS) notes that: “The projected yield decline is attributed to the disruption of inputs and extension support by the private sector because of the recent coffee marketing reforms. MY 2024/25…

The Bank of Uganda (BOU) has shut down Mercantile Credit Bank Limited (MCBL). The action, effective immediately, revoke MCBL’s license and orders the bank to wind down its operations. BOU cited MCBL’s undercapitalization, poor corporate governance, and insolvency as reasons for the closure. These factors, according to BOU, posed risks to depositors. “This action is necessary because the Bank of Uganda has determined that the continuation of Mercantile Credit Bank Ltd’s activities is detrimental to the interests of its depositors due to the institution’s failure to resolve its significant undercapitalization, poor corporate governance, and insolvency,” Deputy Governor, Dr Michael Atingi-Ego said…

ICP Hub Kenya, a leading East African blockchain education and advocacy group, has partnered with Kotani Pay, an African crypto payment infrastructure provider, to bolster the Olympus Accelerator Programme. This strategic partnership aims to supercharge blockchain adoption and empower Web3 developers in East Africa. ICP Hub Kenya and Kotani Pay will leverage their unique strengths to accelerate the development of the Olympus Accelerator Programme. Kotani Pay’s participation will provide program attendees with greater access to mentorship, cutting-edge tools, and potential funding. The partnership allows Kotani Pay to refine its offerings, expand its reach, and solidify its position in the blockchain…

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…