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.

SUPERIOR HOMES KENYA AND ABSA BANK ENTER A FINANCING DEAL TO BOOST MORTGAGE LENDING

Nairobi, January 24, 2024 – Leading real estate developer Superior Homes (Kenya) PLC has signed a partnership with Absa Bank Kenya that will see home buyers enjoy 90 percent financing.

Through the partnership, Absa Bank Kenya will provide mortgages with terms of up to 25 years for existing and prospective investors seeking to buy housing units at Pazuri at Vipingo, a holiday homes development by Superior Homes located in Kilifi County. The deal seeks to also provide an avenue for cross-marketing between the two entities.

A 2022 Central Bank of Kenya’s Bank Supervision Annual Report cited high cost of property purchase and limited access to long-term financing as the main factors hindering Kenyans from accessing mortgage loans.

Superior Homes Kenya Head of Sales Clive Ndege said that the partnership marks a significant milestone in their quest to help more Kenyans achieve their home ownership dreams while at the same time addressing the current housing deficit in the country.

“As a company, we strive to see more Kenyans achieving their homeownership dream. With this partnership, with Absa Bank Kenya, a like-minded partner who shares the same dream, our clients are assured of hassle-free process of owning a home,” said Superior Homes Kenya Head of Sales, Clive Ndege.  

According to the Kenya Property Developers Association (KPDA), the current housing deficit is estimated to stand at 2 million houses which continues to rise due to fundamental constraints on both the demand and supply side and is exacerbated by an urbanization rate of 4.2 percent, equivalent to 0.5 million new city dwellers every year.

Speaking during the event, Absa Bank Kenya Regional Manager and Head of Mortgage John Kaburu said that strategic partnerships were a key pillar for the Bank adding that this new partnership with Superior Homes marks the start of a journey towards unlocking and fulfilling more home ownership dreams for Kenyans.

“At Absa Bank, we value the aspect of building partnerships, collaborations, and working with the eco-systems and we are happy to start this journey with Superior Homes Kenya as our key partners in the real estate sector. Besides the mortgage agenda, there are more financial solutions that we will be offering, including financial literacy through enlightening homeowners on the need to secure their investments,” said Mr. Kaburu.

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”

BUSINESS MODEL MARKETING STRATEGY AND FUNDING STRUCTURE AFFECT UPTAKE OF HOUSING FINANCE NEW REPORT SHOWS

Clive Ayuko

Nairobi, Kenya 31st August 2023

A News report developed by Habitat for Humanity in conjunction with Kenya Mortgage Refinance Company in conjunction with the o and Association of Microfinance Institutions of Kenya AMFIK has outlined Business Model: which entails the framework guiding how a financial service provider operates and delivers services to generate income, Marketing Strategy of the lender, the funding structure which determines the availability, affordability and lending terms of the housing finance products and Institutional factors which include government policy for instance Affordable Housing Programme, Vision 2030 or the Big 4 agenda as some of the major systemic barriers affecting the uptake of mortgage products in Kenya.

The report launched today morning at a Nairobi Hotel dubbed systematic barriers towards access and usage of housing finance in Kenya which focussed on low to middle income groups unearthed some of the barrier impeding uptake of loan products for construction, renovation and modernization of homes.

The housing finance products loans amounts vary for loan amounts ranging from Ksh5500 to Ksh100 million. Some of the financial institutions offering KMTC backed loans include ABSA, Cooperative Bank, Credit Bank, Diamond Trust Bank DTB, Housing Finance Corporation, Kenya Commercial Bank KCB, NCBA and Stanbic Bank with loan offered charging interest rates of between 9% to 9.5%. The report also listed Stanbic as Bank offering the highest loan to value ratio.

APPETITE FOR DIGITAL CREDIT SURGES AS INFLATION PUSHES KENYANS TO BORROW MORE

Compared to 2022, incidences of those using more than three digital lenders have increased, while 4 in every 10 consumers (42%) remain loyal to one digital lender.

Nairobi, Kenya 13th March 2023

Half of Kenyan consumers are borrowing more compared to six months ago with incidences of those using more than three digital lenders on the rise. According to Tala’s newly released 2023 MoneyMarch “State of the Economy” report, this is attributed to fewer full-time jobs and declined alternative sources of income forcing consumers to borrow in order to pay for living expenses in the face of growing inflation.
Borrowing for business purposes remained the top reason for taking a loan as 67% of respondents indicated that they borrowed to meet business expenses and add stock. Compared to 2022, this was a slight drop from last year’s 78% as Kenyans shift focus to meeting basic needs such as school fees, utility bills, medical care, rent and public transport amid soaring cost of living.
“Compared to 2022, Kenyans are cutting down on spending and saving more in a bid to curb the impact of increasing inflation in their daily lives. More generally, we are also seeing Kenyans borrowing more, and it is fascinating to note that over the last six months consumers have channeled more of their loans to their savings such as ‘Chama’ contributions. It appears that customers are borrowing from digital lenders to help keep pace with their group contributions, underlying the need for access to affordable credit for continued financial independence during challenging economic times ” said Teddy Kahiro, Senior User Research manager at Tala while presenting findings to media and industry stakeholders.

While speaking on spending habits, Teddy said that the report presented a unique perspective on what respondents were spending on. They revealed that they spent 25% of their earnings in savings with chamas, saccos or fixed deposit accounts, 22% on personal expenses, 23% on utility bills and a distant 15% on emergencies.
On financial literacy, over half of surveyed customers who said that they were experiencing increased expenditures over the last six months, want more guidance on creating a budget to manage expenses. “This is a contrast from last year where consumers wanted guidance on how to start and grow businesses and save effectively” noted Mr. Kahiro. “The hypothesis here could be that people are holding onto money rather than investing it in a new business amidst the ongoing economic crunch” concluded Teddy.
“Empowering our customers with education on how to manage their finances has always been a key objective for Tala. We believe financial resilience among the underserved

and underbanked Kenyan majority can be enormously boosted by helping them understand how money works in everyday life,” said Munyi Nthigah Tala’s General Manager during the media event,which also marked the start of the company’s annual financial literacy campaign christened Tala MoneyMarch.
“Financial literacy is the only way to help our customers build pathways to a more sustainable and secure financial future,” he emphasized.

I&M Bank Waives Bank to M-PESA Charges

Nairobi, 15th February 2023: I&M Bank has today announced a waiver of transaction charges from its digital banking platform I&M On The Go (OTG) to mobile money wallets.

The waiver will make I&M Bank the first lender in Kenya to officially offer zero fees for Bank to M-PESA and Airtel Money transactions following its reintroduction by the Central Bank of Kenya in January 2023 with plans underway to include T-Kash transactions for Telkom users.

Speaking during the press conference, I&M’s General Manager for Digital Business, Mr. Michael Mwangi commented:

“As part of our approach to service delivery, recent customer feedback showed that as much as our transaction rates are favourable, there was an opportunity to review our policies on bank to mobile money wallet charges for the digitally active customer. We believe this move will offer new and existing customers a huge relief during tough economic times and encourage more customers to transact on mobile,” said Mr. Mwangi.

The payment ecosystem between mobile money wallets and bank accounts expanded significantly when the transaction charges were waived in March 2020 because of the COVID pandemic emergency measures.

However, the reintroduction of the charges by the Central Bank of Kenya (CBK) in December 2022, albeit at significantly reduced rates of up to 61%, has increased the cost of living for Kenyans and I&M Bank Kenya is meeting consumer needs with zero fees on Bank to Mobile Money Wallet transfers.

“A key focus for the bank since the launch of our current iMara 2.0 strategy is to enhance our digital banking solutions to meet the needs of our customers. We look forward to seeing these numbers grow with digital transactions gaining favour among our digitally active customers,” concluded Mr. Mwangi.

AFRICA GETS ONLY 3% OF GLOBAL SUSTAINABLE FINANCING

By Clive Ayuko

Nairobi, Kenya 14th September 2022

“…Africa which is represents 17% of the Global world Population and which contributes only 3.8% of Green House emissions receives only about 3 percent of the global sustainable financing compared to the developed nations which gobble up over 96% percent of the same….

This statement was made by Principal Secretary Ministry of Finance Dr. Julius Muia who was speaking as the chief guest during the opening ceremony of the 11th Annual Kenya Bankers Association Annual research conference held at a Nairobi Hotel early this morning who could continued to add; ” 90% of these funds are used to mitigation strategies aimed at combating climate change whole 7% goes to adaptations and Africa should focus on increasing the funding geared towards adaptation…”

Conference whose theme is : Banking Industry Dynamics on the Back of Technology and Financial Innovations and Sustainability: Emerging Risks and Opportunities will be held between 14th and 16th September 2022 in Nairobi, Kenya and will seek to look into the opportunities and challenges facing the banking industry as well as emerging external and internal challenges as well as emerging realities facing the banking world.

The future of life assurance lies in emerging technologies says CIC Insurance

Nairobi, September 2, 2021 – COVID-19 has reinforced the need to adopt technology to make life insurance purchase and uptake simpler as more consumers embrace a tech-driven shift.

CIC Life Assurance Limited Managing Director Mr. Meshack Miyogo said that the insurance industry is critical for effective risk mitigation and it is therefore vital that the industry evolves with the times. 

“To stay relevant, insurance companies need to accelerate their digital transformation journeys by looking at the whole life-product purchasing process. Developed economies are already using emerging technology with insurance firms utilizing tech to support real time underwriting and claims pricing. This means that it is only a matter of time before emerging economies extensively adopt and utilize technology to drive insurance uptake. As such, insurance companies in emerging markets need to start investing in and building capacity for this,” said Mr. Miyogo.

With the uncertainty around COVID-19, the insurance industry is expected to grow as more people embrace life protection against unforeseen circumstances. In addition, as the middle-income segment expands, there will be increased demand for policies that shield against risks and support wealth management. Life insurance is well positioned to serve a ballooning market and its future will be driven by digital transformation, personalized policies, and partnerships.

Mr. Miyogo added that there is need for adoption of innovative tools utilizing emerging technologies. “The use of AI and Big data is increasingly becoming a major factor for growth in the insurance industry. Use of data enables insurance providers to create customized products and solutions that are practical and relevant for the consumer. Consumers are now demanding for personalized experiences and the adoption of technology is a catalyst for meeting their demands,’’ said Mr. Miyogo.

As consumer behavior shifts towards online channels, developing digital insurance platforms that onboard and allow users to manage policies online will be a key determinant of consumer choice going forward. This can be done through partnerships with InsurTechs or by building digital capabilities within the organization. Digital platforms will allow for real time interaction with clients, enabling insurers to meet client needs and concerns in an apt manner. Further, strong digital systems will reduce operational costs for insurance firms, reducing the amount of paperwork, physical offices and human capital resource spent on face-to-face interactions. Leveraging on technology will also expand insurance firms’ reach, with digital tools allowing them to interact with clients from different geographical areas and time zones.

The future is digital and as the industry works towards deepening life insurance penetration rates, the utilization of digital tools and partnerships will be instrumental.

The Association of Kenya Insurers 2019 annual report highlighted that insurance penetration was at 2.37% with an average growth rate of 8.27% since 2015. The report also showed that non- life insurance penetration was at 1.37% while that of life insurance was at 1.00%, possibly because of the misconception that people buy a life cover primarily in case of death. However, it is now gradually becoming a vital tool for wealth management for middle and high net worth individuals. People are now beginning to recognize that there is a wide range of life insurance options for individuals as well as groups. And with the growing interest in the market, insurance firms have an opportunity to utilize digital platforms to educate consumers about life insurance as a form of financial planning.

Britam partners with fintech app KOA to enable more Kenyans to access savings and investments

Partnership is the first Digital Independent Financial Advisors (IFA) agreement

 

Nairobi, June 21^st  2021– Britam Asset Managers and Kenya-based fintech startup KOA, have today announced a partnership to offer customers access to low risk investment opportunities.

 

This partnership is the first of its kind in the market of a Digital Independent Financial Advisors (IFA) agreement. IFAs are professionals who offer independent advice on financial matters to their clients and recommend suitable financial products.

 

The Koa app makes it easy for customers to start their savings and investment journey with the Britam Money Market Fund in under 2 minutes. Through the partnership, Koa users can start saving with as little as Ksh100 and watch their money grow and multiply with Britam’s Money Market Fund.    

 

Britam Asset Managers’ Principal Officer, Jude Anyiko, said the partnership will expand the firm’s omnichannel strategy and deliver a superior customer experience.

 

“Britam Asset Managers is delighted to partner with Koa to rollout the country’s first digital IFA agreement. This partnership will enable Britam deliver its digital savings and investment solutions in ways that are attractive, engaging, and intuitive allowing us to access new emerging markets,” said Anyiko.

 

He added: “This Partnership is part of Britam Asset Managers’ broader initiative to develop innovative products that support savings and investment penetration in the region.”

 

Koa’s Co-Founder and COO Delila Kidanu, said that the Koa App is designed to offer Kenyans an easier way to put money aside towards their personalized savings goals, encourage more people to gain control of their finances and  offer a higher interest rate as compared to other savings products in the market.

 

“Once goals are set, Koa lets users know how much they need to save each day, week, and month to reach their goals. Through this partnership with Britam Asset Managers, Koa users can access low-risk and high growth savings and investment opportunities. This will not only enable them to reach their goals faster, but also create long-term financial resilience.” said Kidanu.

 

“The idea of formal savings is often perceived as intimidating, inconvenient and difficult to start for a lot of young Kenyans. Koa is the only digital savings companion that makes it easy to start saving instantly and remain committed through personalized savings goals. Our goal is to put Kenyans on a clear and visible path toward financial freedom,” said Kidanu.

 

Savings is Koa’s first step into the digital financial services foray. Through partnerships and financial literacy programs, Koa is looking to fill existing market gaps and be the go-to financial companion for the Kenyan youth. Building trust and delivering great user experience for its high-interest savings products is Koa’s first priority, while also leveraging other distribution channels to reach more customers. Kenya is the company’s first market, with expansion plans to grow across the region.

 

Britam recently rolled out its 2021-25 Strategic Plan which seeks to enhance customer experience by becoming more customer centric. As part of its new strategy, Britam is seeking to capitalize on its investments in technology to expand its customer base to drive growth.

 

“Backed by investment in a robust IT system, Britam is today well placed to accelerate its digital programmes to ensure customers continue to access our products and services in a seamless manner. By creating a technology led strategy that prioritizes customer demands and overall customer experience, Britam has been able to provide innovative solutions through seeking digital partnerships”, Anyiko said.

 

Savings is a key component in building financial resilience. While Kenyans are no strangers to the idea of saving, a Geopoll survey showed that only 34% of Kenyan respondents indicated that they save frequently. According to the survey, mobile money is the most popular savings platform, accounting for 54%, followed by bank accounts (48%) while chamas ranked third.