NCBA Group PLC (NCBA) has completed its 100% acquisition of AIG Kenya Insurance Company Limited (AIG Kenya), solidifying its position in the East African financial services sector. The combined power of NCBA’s distribution network and AIG Kenya’s insurance capabilities unlocks opportunities to grow the insurance market in Kenya and East Africa. Transaction Details NCBA held a minority stake in AIG Kenya for over 18 years, recognizing its strong reputation and consistent revenue growth. The acquisition allows NCBA to tap into Kenya’s Ksh 309 billion insurance market, experiencing a 10% annual growth rate. John Gachora, NCBA Group Managing Director, says the…
Author: Muindi
Muindi
Experience working on communication and marketing departments and in the broadcast industry. Interested in sustainable development and international relations issues.
Equity Group shareholders have approved the establishment of a banking holding company to consolidate the activities of its banking subsidiaries across its markets in East and Central Africa. The lender held its 20th Annual General Meeting with the shareholders voting in favour of all proposals by the board of directors. The Group operates banking subsidiaries in Kenya, Uganda, Tanzania, South Sudan, Rwanda and the Democratic Republic of Congo (DRC). Equity Group will now operate under four groups, the Banking Group, the Insurance Group, the Technology Group and the Foundation Group. Shareholders also gave the green light to establish a health…
Dadaab and Kakuma refugee camps in Kenya are undergoing a significant transformation. These camps will be redesigned into municipalities, fostering self-reliance among refugees and reducing their dependence on humanitarian aid. The initiative, formally adopted by the Kenyan government, respective county governments, and the UNHCR, aims to integrate refugees into local communities. The Shirika Plan, launching in November 2024, will transform the camps in Garissa and Turkana counties into modern urban centres with essential infrastructure like roads, water systems, and sanitation. Subsequently, refugees will become part of these municipalities, benefiting from improved infrastructure alongside host communities. Investments will include schools, healthcare…
Safaricom, East Africa’s leading mobile network operator, has partnered with digital lender Pezesha Africa to launch Mkopo wa Pochi, a loan service for Kenyan small business owners. This builds on Safaricom’s successful existing offerings like M-Shwari and Fuliza. Kenya’s digital lending market has witnessed explosive growth, with Safaricom leading. As of 2022, Fuliza, their overdraft service, boasted over 7.8 million users, facilitating daily loans of KES 1.57 billion ($12 million). M-Shwari serves over 10 million customers, disbursing 50,000 loans daily. The government’s launch of the Hustlers’ Fund in 2022 further highlights the sector’s significance. This collaboration leverages the strengths of…
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…