Farewell Savannah Clinker!

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Here is Brian from The Kenyan Wall Street.

Our leading stories today :

▶️ Savannah Clinker Withdraws Bamburi Cement Takeover Bid, leaving Amsons Group as the sole bidder.

▶️ Central Bank Admits Four New Monetary Policy Committee Members

▶️ Relief for Banks as Parliament Proposes Extending Core Capital Hike to 8 years

▶️ Kenyans Avoid Chamas as Source of Financial Advice -FinAccess Survey.

👷 Savannah Clinker Withdraws Bamburi Cement Takeover Bid

Savannah Clinker Limited has withdrawn its competing offer to acquire listed cement manufacturer Bamburi Cement Plc, the Capital Markets Authority (CMA) announced on December 4, 2024. This development leaves Amsons Industries (K) Limited as the sole bidder for Bamburi Cement, with its KShs. 23.59bn offer. Shareholders who had accepted Savannah Clinker’s now-withdrawn offer have until 5:00 pm on December 5, 2024, to reconsider or they will retain their stakes in Bamburi Cement. Savannah Clinker, in a statement, said its withdrawal was occasioned by “the recent well-publicised arrest and indictment of the Chairman and main shareholder of SCL.” More details on this developing story…

🏦 Central Bank Admits Four New Monetary Policy Committee Members

The Central Bank of Kenya has admitted 4 new external members to the Monetary Policy Committee (MPC), after delays as the terms of other 4 existing members expired in August. The term of the four previous external members expired in August 2024.The new members are Isis Nyong’o, Dr. Kemboi Kipruto, Dr. Freshia Mugo, and Jared Osoro. The appointments come just a day ahead of the MPC’s final meeting of 2024 on December 5th. This article explores who these individuals are and what is expected of them…

💰 Relief for Banks as Parliament Proposes Extending Core Capital Hike to 8 years

The National Assembly’s Finance and Planning Committee has proposed to extend the period that commercial banks will raise their core capital to at least KSh 10 billion from three to eight years. The Kenya Bankers Association (KBA) lobbied for the extension of the period of compliance to this requirement, which was initially set at 3 years. The Business Laws (Amendment) Bill, 2024, required banks to increase their core capital from at least KSh 1 billion to at least KSh 10 billion to strengthen the banking sector. The lenders argued that the timeframe was too short and many banks would not be able to achieve the core capital and operate effectively. What does this mean for Kenyan banks?

💸 Kenyans Avoid Chamas as Source of Financial Advice -FinAccess Survey

Kenyans are shifting away from informal, community-based sources such as chamas for financial advice, instead seeking advice from family/friends or self-consultation. Chamas act as a platform where Kenyans hold weekly, monthly, quarterly or annual meetings to dissect their financial wellbeing, financial literacy also formed part of the gathering’s agenda. In 2019, 4.9% more sampled female respondents relied on Chamas for financial advice compared to male at 2.3%, which, by 2021, dipped to 2.8% and 1% for female and male respondents respectively. By 2024, the number seeking financial advice from such groupings has disappeared to 0.1% for both male and female respondents. Where do Kenyans get financial advice according to this survey?

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Opinions and Commentaries

✈️ The Proposed VAT Regime on Air Ticketing Services Needs to Be Scrapped - Nicanor Sabula argues that the imposition of VAT on air ticketing services will reduce flight bookings by up to 15%, lead to business closures and with it approximately 12,500 in direct job losses, aggravating the country’s unemployment crisis.

💵 Africa’s Financial Future Needs Radical Reform - Maria Nkhonjera explains that Africa’s financial future is shaped not just by traditional western-led institutions but also by emerging partnerships with eastern and BRICS-led financial groups. While these new partnerships offer hope, African nations must be careful to avoid repeating past mistakes with old financial partners.

Video of the Day

In the debut episode of our new series ‘Her Leadership’, Amy Chao of The Kenyan Wall Street sits down with the remarkable Daphne Maina, Deputy CEO of CIB Kenya, as she shares her inspiring journey to the top. 

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