CBK's New Playbook

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

Here is What the CBK is Planning…

The Central Bank of Kenya (CBK) is set to propose a new loan pricing model in April, potentially seeking public input. CBK Governor Dr. Kamau Thugge stated that the proposed model aims to replace the current risk-based pricing system, which banks argue is inconsistent and rigid. Additionally, CBK has given 24 banks until April 1st to present plans to increase their core capital to KSh 10 billion. This move seeks to strengthen banks against rising market risks. Dr. Thugge also dismissed calls to reintroduce interest rate caps, warning of restricted private sector lending. Stay tuned for more updates on Kenya's evolving financial landscape. Read more »»»»

Today's Poll

Lipa Later Goes Bust!

Lipa Later, a Kenyan fintech firm specializing in consumer credit, has been placed under administration following financial challenges. Joy Vipinchandra Bhatt of Moore JVB Consulting has taken control of the company’s assets and management as the appointed administrator. This move comes two years after Lipa Later's $1.6 million acquisition of Sky.Garden and amid rising speculation about its financial stability. The Buy Now Pay Later (BNPL) market in Kenya is expected to reach $1.18 billion by the end of 2025, despite Lipa Later's setbacks. The firm's directors can no longer transact with its assets without the administrator's approval. More details here»»»»»

The National Airline : Back into Profit Territory 

Kenya Airways (KQ) has reported a remarkable turnaround, posting a net profit of KSh 5.4 billion for 2024, breaking a decade-long loss streak. The recovery was driven by a KSh 10.6 billion foreign exchange gain, a 4% rise in passenger numbers, and a 25% increase in cargo tonnage. Despite global aviation challenges, KQ's Project Kifaru strategy has stabilized operations, growing total revenue to KSh 188 billion while reducing costs by 9%. The airline's successful capital restructuring and debt-to-equity conversion are set to strengthen its financial health. KQ's return to profitability is expected to positively influence its stock market performance. Here is more »»»»»

More Financial Results :

• NCBA Group closed 2024 with a net profit of KSh 21.9 billion, a 1.9% increase from 2023 on the back of a reduction in loan loss provisions and a significant growth in interest income. Here are the results…

• Diamond Trust Bank (DTB) Group has reported a 25% bump in profit before tax to KSh 11.27 billion, up from KSh 9 billion in 2023, despite a challenging economic environment marked by inflationary pressures and high borrowing costs. Here are the results…

Insight : The World’s Largest Economies Are Hot Spots for Dirty Cash

A new report by the U.S. Department of State identifies major global economies—including the U.S., Germany, the UK, and China—as significant hubs for money laundering. Kenya, despite updating its "Proceeds of Crime and Anti-Money Laundering Act" in 2023, remains vulnerable, with financial institutions cited as weak points. Notably, China’s extensive criminal networks and Nigeria’s use of scams and shell companies highlight the scale of the issue. The UK faces challenges in addressing high-end money laundering due to constrained resources and complex laundering techniques. Here's more »»»»»

Additional Stories :

• Finance. The National Bank of Ethiopia (NBE) has maintained the 15% benchmark rate to temper inflation and anchor exchange rate expectations at its second Monetary Policy Committee (MPC) meeting.

• Commerce. E-commerce giant Alibaba has partnered with Nigerian digital platform for logistics services Kwik to support Nigerian exporters with access and special rates.

• Private Equity. Chanzo Capital, a venture and growth capital firm, has launched a program to help African entrepreneurs access finance and scale their businesses across the continent.

On your watchlist

Yesterday's Poll Results 

Do you think it is a good idea for the government to seek a fresh IMF programme?

🟨🟨🟨⬜️⬜️⬜️ Yes, we have no choice (33%)

🟩🟩🟩🟩🟩🟩 No, it is a disaster (67%)