CBK boss urges banks to adopt social responsibility in loan pricing

The Central Bank of Kenya governor Patrick Njoroge has asked bankers to adopt a new sense of social responsibility in pricing of loans, days after a legal cap on borrowing was lifted in a move expected to unlock credit to the economy. The removal of the cap is seen as a major win for banks, but there are fears that the repeal will expose borrowers to costly lending rates, which had touched a high of 25 percent before the introduction of the ceiling. “I want to emphasize that for all of us with great powers comes great responsibility,” Dr Njoroge

I&M moves to Tier I on takeover of Giro Bank

I&M Bank  has joined the class of large banks after its market share grew by 0.54 percentage points, driven by new business from its acquisition of Giro Bank concluded in 2017. Its market share grew to 5.32 percent to rank ninth and surpass the five per cent mark used by the Central Bank of Kenya (CBK) to classify banks as large industry players. The bank becomes the latest to join the league of large institutions after Diamond Trust Bank (DTB)  joined the group in 2016. Kenyan commercial banks are classified into three peer groups using a weighted composite index that comprises net

Equity boss drops quit plans as profits up 12pc

Equity Bank  chief executive James Mwangi on Tuesday made a retreat over his retirement plan on a day when the lender announced a 12 percent growth in net profit for the nine months to September. Mr Mwangi, who has served the bank for 29 years, told a media briefing that he wanted to cement Equity’s expansion in Africa over the next two decades before calling it quits. Equity Group reported Tuesday that its nine-month net profit rose to Sh17.46 billion, up from Sh15.58 billion in a similar period a year ago as it overcame the effects of an interest rate cap

Deals by foreign banks’ Kenya offices hit Sh356 billion

Representative offices of foreign lenders in Kenya saw the volume of business rise by 18.4 percent in 2018 to hit Sh356 billion, largely from financing trade deals. Central Bank of Kenya (CBK) 2018 Banking Supervision report shows the bulk of transactions remained on trade finance, while correspondence banking and project financing recorded relatively the biggest drop in volumes last year. “The representative offices facilitated business worth an estimated Sh355.58 billion ($3.51 billion) in 2018…a notable increase when compared to the business facilitated in 2017. “The activities facilitated largely comprised of corporate finance, syndicated finance and correspondence banking,” said CBK in

KCB Group to Sponsor the Africa Fintech Summit in Addis Ababa

The Africa Fintech Summit (AFTS) is pleased to announce that KCB Group PLC, East Africa’s largest indigenous banking group by asset size, will be partnering with AFTS as a sponsor for the November 21st summit in Addis Ababa, Ethiopia. The sponsorship is in line with KCB’s focus to embrace innovation and digitization beyond its current realm of operations, with a view to serve its customers better by providing efficient and affordable services. Over the years, KCB has grown and spread its wings into Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia (Rep). In addition to the banking businesses in these markets, KCB