KCB injects US$28m capital in its subsidiary National Bank

KENYA – Financial services group KCB,  has given the National Bank of Kenya a US$28 million long-term loan to help the subsidiary meet minimum capital requirements. The Nairobi Securities Exchange-listed lender made the disclosure in its latest annual report. “In Kenya, the group injected US$47 million into National Bank of Kenya, the subsidiary the group acquired in 2019. In 2021, KCB has increased the capital in NBK via tier-II debt of approximately US$28 million to enable the subsidiary to meet the capital adequacy requirements and also to bolster its resources,” the…

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Kenya orders foreign-owned ICT firms to sell 30% stake to locals by 2024

KENYA – Foreign-owned information and communication technology (ICT) firms in Kenya have been given a deadline of up to 2024 to ensure they have a 30% ownership by the locals. The East African nation’s ICT Cabinet Secretary, Joe Mucheru, has given these foreign firms a deadline of March 2024 to comply. The notice said the Government encourages Kenyans to participate in the ICT sector through a policy that will require 30% local ownership of all foreign-owned ICT firms, either through local firms or individual Kenyans. An already existing foreign ICT…

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I&M Holdings pumps US$3.67m in Mauritian subsidiary Bank One

MAURITIUS – Financial services group  I&M Holdings has invested an additional US$3.67 million in its Mauritian subsidiary Bank One in the year ended December 2020 to boost its capital position. The move came as Bank One sought to strengthen its capacity to handle existing and potential defaults in the course of the Covid-19 pandemic that has hurt bank earnings in most parts of the world. The Nairobi Securities Exchange (NSE) listed firm owns 50 percent of the Mauritian lender, with the other half held by the island nation’s conglomerate CIEL…

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Shelter Afrique to issue US$500m Kenya currency bond

KENYA – Pan African housing development financier Shelter Afrique is set to issue Us$500 million local currency bond in the Kenyan market after returning to profitability in the year ended December 2020. The real estate and housing financier has said the East Africa bond will be listed in Nairobi Securities Exchange (NSE) before the end of the year 2021, with the proceeds being deployed in Rwanda, Uganda, and Tanzania. The firm  issued a similar-sized US$500 million bond in Nigeria in March 2021. This comes after the company recorded a net…

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Carbacid takeover of BOC Kenya hits legal hurdles

KENYA – BOC Kenya’s proposed takeover by Carbacid in collaboration with Aksaya Investments has been put on hold pending the hearing of an appeal at the Capital Markets Tribunal of Kenya. In a cautionary announcement in the Kenyan local dailies, the Nairobi Securities Exchange listed gas manufacturer BOC Kenya Plc has informed its shareholders and the investing public that an appeal was filed by a shareholder at the Capital Markets Tribunal(CMT) on March 2nd, 2021, in respect of the takeover offer by Carbacid Investments Plc and Aksaya Investments LLP. Section 35A (17)…

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Britam Holdings announces new organizational structure, job cuts

KENYA – The board of Britam Holdings Plc, a leading diversified financial services group, has announced a new organisational which it says will result in a more competitive, efficient and customer centric organization. Additionally, it will gear the Nairobi Securities Exchange (NSE) listed firm for enhanced digital innovation and product development. Similarly, the reorganization is expected to lead to a leaner team with fewer reporting layers that will support the company’s growth in an increasingly competitive business environment. Employees in the affected roles and positions are expected to exit the…

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Nation Media Group announces shares buyback plan

KENYA – East and Central Africa’s largest media company Nation Media Group (NMG), has announced a proposal to buy back up to 10% of its 18,854,229 ordinary shares which is in line with Kenya’s capital markets regulations that require a company to inform investors about a plan to buy back shares. A share buyback is a unique opportunity for a company to buy its own shares from the stock market. Share buybacks which are relatively new in Kenya, buybacks are used by companies for diverse reasons such as to boost…

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InfraCo Africa becomes anchor investor in Acorn Holding’s US$10m REIT

KENYA – InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), has subscribed to the Acorn Holdings Ltd (Acorn) Real Estate Investment Trust (REIT) by investing US$10 million enable Acorn to scale its business. The investment will help build the company’s track record of delivering purpose-built student housing in Kenya and helping to mobilise local capital markets. “This subscription marks our first investment into affordable housing, and I am delighted to take this step with Acorn, a well-respected developer of high quality student accommodation,” InfraCo Africa’s CEO, Gilles Vaes noted. “Expanding Acorn’s…

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Standard Bank granted more time to buy Stanbic Bank Kenya shares

KENYA – Standard Bank of South Africa has been given more time to buy an additional 14.8 million shares with a current market value of US$10.95 million in its Kenyan subsidiary Stanbic Holdings . The multinational started accumulating more shares in the Nairobi Securities Exchange (NSE) listed firm in July 2018 and had raised its stake in the lender to 71.16 percent as of November last year. Standard Bank has been buying the shares in the open market through its investment vehicle Stanbic Africa Holdings Limited (SAHL). It is targeting to…

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Diamond Trust Bank (K) to shut six branches by end of October 2021

KENYA – Nairobi Securities Exchange listed lender Diamond Trust Bank (DTB) is expected to shut six branches by the end of October as part of efforts to consolidate its physical footprint in Kenya. In a notice issued to the press, the lender said it had received approval from the Central Bank of Kenya (CBK) to consolidate its branches. “The DTB branch consolidation will affect locations where branches identified for merger are co-located or in close proximity to each other. The affected branches will cease operations with immediate effect,” DTB announced.…

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