A Banker's Optimism

Hello! It's Brian from The Kenyan Wall Street with the latest edition of our daily newsletter. Below are our stories for the day:

Banks’ Consolidation will Strengthen Financial Sector - Stanbic’s Oigara

Joshua Oigara, CEO of Stanbic Bank, expressed optimism about Kenya's economic outlook and predicted a rebound in credit growth for 2025. He believes the Central Bank of Kenya's decision to raise the minimum core capital requirement to KSh 10 billion will drive further consolidation in the banking sector, creating stronger banks. The implementation period for this requirement has been extended from three to eight years by the National Assembly’s Finance and Planning Committee. Stanbic Bank's profits increased to KSh 13.7 billion in 2024, driven by reduced credit impairments, with a total dividend of KSh 20.74 per share for the year. Oigara also welcomed the Central Bank Rate cut to 10.75%, noting a lag effect of 30 to 45 days before it influences lending rates. He expects key sectors like housing, exports, manufacturing, and trade to recover while agriculture, tourism, education, and healthcare remain strong.

⏱️ Watch this interview here :

Today's Poll

Safaricom Survives in Landmark Copyright Ruling

Davidson Ivusa sued Safaricom, claiming that the company stole his idea for the Reverse Call feature from a proposal he sent in May 2010. He argued that Safaricom delayed implementing the idea until June 2019 and failed to notify him. However, the court ruled that his case lacked merit, accepting Safaricom's defense that the feature was independently developed in June 2018. As a result, Safaricom won the case, and Ivusa's claims were dismissed. Here is how the case unfolded»»»»»

SuperMetro’s Woes…

Public transport operator Super Metro Limited has rejected claims made by the National Transport and Safety Authority (NTSA) leading to the suspension of its operator license—asserting that the accusations are outdated. Here is what the operator said»»»»»

Yesterday, NTSA suspended the matatu operator over claims it had violated various safety regulations. But this is following a much darker story trailing the company. More details here»»»»»

KRA's Costly Silence: Tribunal Cancels Demands

The Taxman is losing quite a number of cases on the legal corridors because of procedural violations. The Tax Appeals Tribunal overturned KRA's multi-million shilling tax assessments against Dalberg Research Limited and Panari Centre Limited due to delayed responses beyond the legally mandated 60-day period. Both companies argued they had valid tax credits from overpayments and withholding taxes, but KRA's delayed decisions left them unable to resolve the disputes. The rulings highlighted issues with KRA’s i-Tax system, where misclassification of tax credits led to rejected claims. Here is the full story»»»»»

Geopolitical Watch 

• Uganda’s Parliament has approved the deployment of its military forces to South Sudan following a request from President Salva Kiir to help quell escalating violence in the Upper Nile State.

The Progresss of Ethiopia's Liberalization Journey

Ethiopia has licensed its first two investment banks, CBE Capital S.C. and Wegagen Capital S.C., as well as the first securities dealer, Ethio-Fidelity Securities S.C. These licenses are part of the country's financial reforms following the launch of the Ethiopian Securities Exchange (ESX) in January. The Ethiopian Capital Markets Authority (ECMA) expects the new service providers to increase market liquidity and investor confidence. Ethiopia has also reached a preliminary agreement with creditors to restructure its external debt. More on this »»»»»

Yesterday's Poll Results

How concerned are you about the state of Kenya's National Debt?