MOST WEALTHY KENYANS CONSIDER HOME COUNTRY BEST FOR BUYING MULTIPLE HOMES NEW REPORT BY KNIGHT FRANK

Clive Ayuko

Nairobi, Kenya 30th April 2024

Most of the High Net worth Individuals in Kenya – persons who purchase homes in with prices valued at US dollar 1 million and above- consider the country as the most ideal location for purchase or ownership of 1st, 2nd, 3rd and subsequent homes.
This according to the the 2024 Annual Wealth Report by the global property consultancy Knight Frank LLP.
The report which derived it’s finding from interviews with private bankers and wealth advisors based in the country also found out that most of the High Net worth Individuals HNWI hold 60 percent of their wealth in home ownership, with 30 percent of these individuals purchasing a home in 2023 with the same 30 percent also planning to buy a home in 2024.

According to the International Monetary Fund IMF Kenya’s Gross Domestic Product GDP projected to grow at an average of 5 percent well above the global average of 3.1 percent and 4.2 percent for world developing and emerging economies a situation which the CEO of Knight Frank Mr. Mark Dunford Kenya Offices said is bringing a resurgence of HNWI’s buying Kenyan property. This to include second and third home purchases in addition to commercial property investments.

Additionally Mr Dunford who was speaking at the Capital Club in Westlands Nairobi argued that most Wealthy Kenyans have taken a step back from investing in foreign countries in favor of investing more money in the country.

Stanbic Bank Secures KES 4.3 Billion Term Debt Facility for National Cement Company Ltd’s Expansion

Subheading: Landmark Transaction Aims to Boost Production Capacity and Infrastructure Development

Nairobi, 11th April 2024: Stanbic Bank Kenya proudly announces the successful financial close of a groundbreaking deal with National Cement Company Ltd (NCCL), marking the acquisition of a KES 4.3 billion term debt facility. This strategic partnership is set to partially refinance NCCL’s foreign currency liabilities incurred during its expansive capital expenditure phase.

Driven by a mutual vision to enhance production capacity and contribute to infrastructure development in Kenya and East Africa, the collaboration between Stanbic Bank and NCCL underscores the bank’s dedication to supporting key industries and fostering sustainable economic growth across the region.

Mphokolo Makara, Executive, Head of Energy and Infrastructure East Africa at Stanbic Bank, expressed, “Our purpose at Stanbic Bank is to propel Kenya’s growth through partnerships with industry leaders like National Cement. NCCL’s local and regional market insights position them as catalysts for sustainable growth through domestic employment and manufacturing capacity.”

Stanbic Bank provided NCCL with a comprehensive financial solution, including local currency term debt and customized foreign currency forwards, as a Senior Lender. This tailored approach effectively managed the client’s foreign currency exposure relative to domestic operations, mitigating challenges posed by volatile FX market dynamics.

Alakh Kohli, Executive, Head of Corporate and Investment Banking at Stanbic Bank Kenya and South Sudan, stated, “This transaction highlights our commitment to fostering innovation and supporting the expansion endeavors of leading corporates in Kenya. We are honored to facilitate this milestone for NCCL and eagerly anticipate continued collaboration in driving economic progress.”

The KES 4.3 billion term debt facility empowers NCCL to sustainably deliver high-quality construction inputs at competitive prices, furthering economic and infrastructure development initiatives. As a pivotal supplier across East Africa, NCCL’s operations play an indispensable role in propelling growth and prosperity throughout the region.

Established in 2008, National Cement Company Ltd stands as East Africa’s foremost integrated clinker and cement manufacturer, playing a vital role in Kenya’s vibrant construction industry.

I&M Bank Empowers Solo Business Owners with Free Bank to Mobile Wallet Transfers

Extension of ‘Ni Sare Kabisa’ Proposition Demonstrates Commitment to Small Business Support and Financial Inclusion

Nairobi, April 8th, 2024 – In a move to further empower Kenya’s vibrant community of Solo Business Owners, I&M Bank has announced the extension of its ‘Ni Sare Kabisa’ proposition, offering free Bank to M-PESA and Airtel Money transfers to sole proprietorships. This expansion of the initiative underscores I&M Bank’s unwavering commitment to fostering financial inclusion and supporting the backbone of the Kenyan economy – small businesses.

More than a year since its inception, ‘Ni Sare Kabisa’ has already revolutionized the banking landscape by eliminating transfer fees for personal account holders. Now, with this latest announcement, Solo Business Owners can also avail themselves of this cost-saving benefit, reflecting I&M Bank’s dedication to easing financial burdens and enhancing opportunities for entrepreneurs.

Shameer Patel, Head of Personal & Business Banking at I&M Bank, highlighted the significant impact of the ‘Ni Sare Kabisa’ proposition on individual customers and emphasized the bank’s commitment to providing a comprehensive suite of financial solutions. “Our aim is to empower our customers with a range of offerings that not only save them money but also facilitate their financial growth and stability. With free bank to mobile wallet transfers, Solo Business Owners can now streamline their operations and focus on expanding their enterprises,” Patel remarked.

Eunice Kinyanjui, Head of Small Business at I&M Bank, emphasized the importance of catering to the unique needs of entrepreneurs and providing tailored solutions to fuel their growth. “Through extensive research and customer insights, we identified the need to extend free transfers to Solo Biz owners. By doing so, we are enabling them to access a wide range of digital financial services, including Unsecured Business Loans, Stock Financing, and convenient payment solutions,” Kinyanjui explained.

Gul Khan, CEO of I&M Bank Kenya, underscored the bank’s deep-rooted commitment to supporting small businesses, citing their pivotal role in driving economic growth and employment generation. “As we mark 50 years of I&M Bank in Kenya, we remain steadfast in our mission to empower entrepreneurs and stimulate economic prosperity. By extending our ‘Ni Sare Kabisa’ proposition to Solo Biz owners, we are enabling them to reinvest savings into their businesses and fuel innovation and expansion,” Khan affirmed.

The announcement received praise from Mr. Ben Muhati, Chairperson of the MSME Alliance, who hailed I&M Bank’s initiative as a significant step towards enhancing the financial resilience of small businesses. “Small business owners are the lifeblood of our economy, and initiatives like ‘Ni Sare Kabisa’ are instrumental in easing their financial burdens and fostering growth. I&M Bank’s commitment to supporting entrepreneurs is commendable and sets a positive example for the banking sector,” Muhati commended.

To celebrate the launch of the extended proposition, representatives from I&M Bank, small business traders, and association members embarked on a customer activation event at Gikomba, further underscoring the bank’s dedication to engaging with and supporting local businesses at the grassroots level.

Global Credit Rating Firm, Fitch Ratings assigns I&M Group Plc and I&M Bank Kenya National Long-Term Ratings of ‘A+(ken)’ with Stable Outlooks

21st December 2023: Global credit rating agency Fitch Ratings has assigned I&M Group Plc (the Group) and its core banking subsidiary I&M Bank in Kenya (the Bank) National Long-Term Ratings of ‘A+(ken)’ with stable outlooks relative to that of other Kenyan issuers.
Both entities have also been assigned Long-Term Issuer Default Ratings (IDRs) of ‘B’ with a negative outlook. The respective negative outlooks mirror the outlook on the sovereign rating.
These ratings are driven by their standalone creditworthiness and are also reflective of the business resilience and a solid strategic focus by all the business units across the East African region and beyond.
“I&M Group’s business profile is underpinned by its established banking franchise in Kenya and growing regional businesses, which provide some competitive advantages and revenue diversification’’, Fitch Ratings said in a statement which also read, “I&M Bank is a Tier 1 bank in Kenya with a moderate domestic market franchise of around 6% of sector loans and 5% of sector deposits at end-1H23.”
Commenting on the report from Nairobi, I&M Group’s Regional Chief Executive Officer, Mr. Kihara Maina noted that the Group is embarking on its 3rd iteration of their iMara Strategy (2024 – 2026) which is focused on impacting lives through expansion into new horizons in terms of regional operations, segments served, and products offered.
“As a group we are pleased with this rating by Fitch which indicates strong profitability and reasonable capital buffers amidst challenging operating conditions. We remain focused on implementation of the refreshed strategy to deliver on our short- and medium-term objectives,” said Mr. Maina.

COP28 NEGOTIATIONS ARE OFF-TRACK CIVIL SOCIETY NOW SAYS

Dubai, December 6, 2023: The African civil society, under PACJA and the Non-State Actors Committee (NSA) together with partners underscores our unwavering commitment to addressing the urgent climate challenges faced by Africa and the global community. We are here to remind Parties in COP28 of their commitment during their opening statements to deliver an outcome that is credible and impactful, and that is responsive to the aspirations of all of us, particularly people at the frontline of the climate crisis.
We however remain cautiously optimistic on the possibilities of such an outcome, alive to the fact that this outcome may be a mirage unless leaders from developed countries remain faithful to the spirit and letter of the Paris Agreement.
The negotiations so far have been frustrating to say the least, particularly in securing progressive decisions on the Global Goal on Adaptation and its means of implementation.
As COP28 progresses, we are disappointed by slow progress in the adoption of decisions that are progressive and of more relevant significance to Africa. We reiterate that negotiations on adaptation remain pivotal in building Africa’s and indeed world’s resilience to climate change are not on track!
Implementing strong adaptation measures remains at the heart of addressing historical and current climate injusticeand this must be complemented with sufficient means of implementation, to be precise climate finance. Africa demands immediate and substantial action to address the lack of sufficient adaptation measures for the continent, recognizing historical injustices.
We remain unrelenting in our call to governments to agree on a robust, ambitious, and solutions- oriented outcome on the operationalization of the Global Goal on Adaptation to help accelerate adaptation action globally. The GGA framework should be complete with metrics and indicators on measuring progress towards implementation of this goal

We further call for a COP28 decision that looks at adaptation finance beyond the narrative of “doubling” and agree that there is no baseline of that “doubling”. In this regard, we need to see the discussions moving towards more than doubling adaptation finance, with a time-bound roadmap consistent with the needs and urgency of the adaptation response measures as highlighted in the Adaptation Gap Report.
More importantly, we underscore the central role of agriculture in advancing adaptation imperative for climate-vulnerable people of Africa. Dishearteningly, the perpetual workshop mode in discussions on agriculture does not give hope to climate-stricken farmers in Africa, and this should not be the message we should relay back home!
Whereas everyone wants to celebrate the adoption of the Loss and Damage Transition Committee and the announcement by Parties of their pledges, we once again wish to state that our celebrations will only be possible when this money reaches the communities we represent here. We have seen such excitement before, and they have ended in tears – just pledges! We also want to see more pledges, as the amount being thrown into the basket cannot even address the needs of an African country.
We call on the Parties to UNFCCC to put tighter measures that secure sustained commitment to funding Loss and damage, beyond the charitable actions seen at the opening of COP28. The process of putting in place Protocols and procedures needed to make the loss and damage fund functional must also be fast-tracked; 4 years is such a long waiting time for frontline communities battling with challenges emanating from catastrophic disasters emanating from climate change.
We insist that funding for loss and damage should be additional and incremental to existing streams of climate funding, and also ODA. Intelligence obtained by PACJA, so far indicates rich and developed countries are merely repackaging existing climate and/or ODA funding commitment to demonstrate their philanthropy.
The deceit that characterizes these commitments must be addressed, once and for all and we are further keen to see new and additional measures secured in this COP to secure transparency at the global level in securing pledges
The Global Stock Take cannot be a mere ritual. It has its import which has to bear in COP28 through a demonstrated recommitment to deeply cut emissions by developed countries, a strive to meet climate financing gap – now in trillions, and prioritization of the adaptation agenda. This remains our central commitment that African civil society is keen to see from COP28.
The special needs and circumstances that underpin the context of Africa as a continent and secured in the Paris Agreement must remain a guiding principle across all the negotiation streams.

As COP28 enters its homestretch, we remain steadfast in advocating for a just and equitable global response to the climate crisis. We urge all Parties to prioritize vulnerable populations, demonstrate genuine commitment to climate justice, and just transition, and collaborate for a sustainable future.
Note to editors:
At the onset of COP28, the NSAs from Africa issued a statement calling for bold action amidst concerns over the conference’s credibility. Our entry statement raised fundamental concerns on loss and damage funds, prioritization of the adaptation agenda, progress in the climate financing, and the Global Stock Take process.

FAMILY BANK POSTS KES 3.02 BILLION PROFIT BEFORE TAX IN Q3’2023 FINANCIAL RESULTS

NAIROBI, KENYA, NOVEMBER 30, 2023 – Family Bank Group has posted a KES. 3.02 billion Profit Before Tax for the period ended 30 September 2023.

During the period, total assets increased to KES 140.97 billion a 9.6% increase from KES 128.5 billion reported in September 2022. The increase in the total assets was primarily driven by growth in customer deposits which rose by 16.6% to KES 108.1 billion from KES 93.2 billion reported same period in FY’22. The bank continued to lend which saw the loans and advances increase by 6% to KES 84.6 billion. Investment in government securities increased by 21% to close at KES 30.3 billion.

Interest income grew by 18% to KES 11.34 billion while interest expenses grew by 34.6% to close at KES 4.4 billion. The faster growth in interest expense was mainly driven by the general increase in funding costs for deposits and borrowings in line with the tight monetary policies by the government and increased government borrowing costs in the domestic market. The increase in the interest income and the higher than the increase in interest expense saw the net interest income increase by 10.8%.

Total non-funded income increased by 5.6% to close at KES 2.9 billion for Q3’2023 compared to KES 2.8 billion recorded during the same period last year. The Group’s prudential provisioning against the loan book increased by 110% as the Bank took a cushion against future defaults in line with the challenging macro-economic conditions. This saw the Group’s loan loss provision charge increase to KES 989.4 million during the period.

Other operating expenses and staff costs saw an increase of 23.8% and 22.3%. The staff costs were mainly driven by an increase in the Group’s employees’ headcount and continuous investments in the training of employees.

“Our strategy continues to bear fruit for our customers and our shareholders. Our statutory and prudential ratios have significant buffers against the minimum requirements which positions the Group to continue taking advantage of opportunities as they arise. Our objective is to grow both organically and inorganically as we evolve to become a leading bank anchored on customer centricity, investment in innovation and technology and enhanced employee experience,” said Family Bank CEO Rebecca Mbithi.
The Bank’s statutory ratios compliance position remained strong with the total capital ratio closing at 18.3 % while the liquidity ratio stood at 43.4% against the minimum statutory ratio of 20%.

Trustees Urged to Prioritize the Younger Generation in Growing the Retirement Benefit Sector

Nairobi Kenya, 2nd November 2023……. In a move to address the pressing challenges facing the retirement benefit schemes, trustees have been urged to shift their focus towards the younger generation.

Speaking during the opening ceremony of the Zamara 2023 trustees convention, the Director at the School of Pension and Retirement Studies, Dr. Edward Odundo highlighted the importance of early planning. “The younger members of the workforce that is today the larger component membership of retirement benefit schemes is notorious for not being very focused on many things long term such as preparing and saving for future retirement. They want to live for the here and now and not for tomorrow,” he said.

“This represents a challenge we must rise to as a society and as a sector. There are no alternatives to savings. We cannot innovate ourselves out of the need to save for our future needs. Savings requires that we put aside the lure of instant gratification. This is a battle we must be ready to fight and win today so that we can face the challenges tomorrow will bring”, Dr Odundo said, adding that, “Our collective responsibility is to empower and educate the younger generation about the significance of long-term financial planning, which includes retirement savings.”

To address this issue, a collaborative effort is required from parents, employers, trustees, and other stakeholders. A multi-pronged approach is needed to create better awareness and develop effective strategies for incentivizing savings among the young population. The growing temptation of instant gratification must be countered, as savings require individuals to set aside the lure of short-term pleasures.

On his part, James Olubayi, Executive Director, Zamara said that the need for savings is universal, and without proper planning and engagement, the younger generation may face uncertain financial futures. This concern underscores a critical challenge that both society and the retirement benefit sector must tackle head-on.

“The retirement benefit sector is at a pivotal juncture, and it must adapt to the evolving needs and attitudes of its membership base. Trustees have a critical role to play in steering the course toward a secure and prosperous retirement for all members, regardless of age. The time to act is now,” he said.

The second such conference held this year by Zamara seeks to chart a course towards advancing pension solutions that are not only robust but also resilient, capable of withstanding the tests of time. Themed, safeguarding futures advancing pension solutions, the conference taking place over the next three days will see industry players dig into trends and insights on pension adequacy, investment, contributions and sharing the progress of the industry in Kenya.

The conference also provided a platform for experts as well as major industry players to network, share experiences on the emerging trends and happenings within the pension sector that has witnessed a noticeable growth to the level of Sh 1.7 trillion with a contributor population of 4.3 million, representing a coverage of 26 percent of the working population.

FAMILY BANK RECEIVES SHAREHOLDERS’ APPROVAL TO OFFER 800 MILLION NEW SHARES TO STRENGTHEN CAPITAL BASE

NAIROBI, KENYA, OCTOBER 18, 2023– Family Bank has today received formal approval from shareholders to offer up to 800 million new shares through a rights issue. This will increase the Bank’s issued authorized Ordinary shares from the current 1,500,000,000 Ordinary Shares to 2,300,000,000 Ordinary Shares.

Through this increase in Ordinary shares, the Bank targets to raise up to KES 10 billion in the medium term. The capital raise will be achieved through a mix of a rights issue and from new shareholders via a private placement. The funds raised through the rights issues will go towards strengthening the bank’s capital base, for local and regional growth plans, driving investments in IT infrastructure and new product initiatives and supporting onward lending activities.

“Through this capital raise, we are positioning the Bank for the next phase of growth which will position the bank as a choice bank for our existing and potential clients through customer-first service delivery not only in Kenya but also in the region,” added Rebecca Mbithi.

The rights issue opens on 19th October 2023 and closes on 30th November 2023.

I&M Group appoints Robin Bairstow as Chief Executive Officer for it Ugandan Subsidiary

Nairobi, October 10, 2023 –

I&M Group Plc and the Board of Directors of I&M Bank (Uganda) Limited have announced the appointment of Mr. Robin Bairstow as the Chief Executive Officer (CEO) effective August 2023 subject to Bank of Uganda approval.

With an extensive record in the financial services sector, Bairstow’s appointment underscores I&M Bank’s commitment to delivering excellence and growth across its regional operations. Bairstow brings a wealth of experience to his new role and knows the Group well, having served as the CEO of I&M Bank (Rwanda) Plc from September 2015 to June 2023. During his tenure, he achieved remarkable growth and success including the trebling of total assets to RWF 491.3 billion and growth in pre-tax profits to RWF 13.4 billion. Robin also oversaw I&M Bank Rwanda’s listing on the Rwanda Stock Exchange in 2017.

Before joining I&M Group, Bairstow held senior leadership positions at various financial institutions including Standard Chartered Bank, Citibank NA, BOE Bank, and Nedbank. His roles spanned across Central & East Africa and South-East Asia, highlighting his versatile expertise in navigating complex financial landscapes.

A graduate of the South African Merchant Naval Academy, Bairstow holds a Diploma in Business Management from the Institute of Business Management and a Post Graduate Diploma in Business Administration from the University of Leicester, among others. His educational background combined with his extensive firsthand experience makes him a dynamic addition to the I&M Bank Uganda team.

Bairstow takes over the Chief Executive Officer role following the exit of Kumaran Pather in December 2022. Sam Ntulume, who has been serving in acting capacity since December 2022, will now continue in his role as Executive Director and Chief Operations Officer.

Commenting on the new appointment, Mr. Kihara Maina, Regional CEO I&M Group Plc said, “Robin Bairstow is a very familiar face to the I&M Group. We are confident that he will steer the bank towards the realization of its strategic goal of becoming one of Uganda’s leading banks.”



Mr. Suleiman Kiggundu, the Board Chairman of I&M Bank (Uganda) Limited said, “We are happy to announce the appointment of Mr. Robin Bairstow as the new Chief Executive Officer. We are confident that he will build on his institutional knowledge and work with the I&M Bank team to push the organization to the next level. The Board congratulates Robin Bairstow on his appointment and sincerely thanks Sam Ntulume for the strong and dedicated leadership exhibited while serving in acting capacity”