The Jo’burg Giant Lender And the Nairobi Crevice

I am Brian from The Kenyan Wall Street…

In today's newsletter edition, South African lender — FirstRand Group — has begun sizing up a Kenya entry, treating upcoming minimum capital thresholds as an invitation.

Meanwhile, KCB set the tone at home with an 8% H1 profit to KSh 32.33bn and a record KSh 4.00 mid-year dividend, a confident flourish despite softer non-interest income.

FirstRand Group: Why SA’s Giant Bank is Eyeing Nairobi

South Africa’s largest bank by market value is watching Kenya's consolidation drive, potentially seeing an opportunity to shake up the competitive balance.

By TKWS Staff Writer

FirstRand Group, South Africa’s biggest bank by market value has been circling Kenya for years, watching the market’s ebb and flow from the polite periphery of a Nairobi representative office. Now, with the country preparing to sharply raise its minimum capital requirements for lenders, the scent of opportunity is in the air.

Such a regulatory jolt has a way of rearranging the furniture. It forces smaller banks to merge, sell, or fold. For a player with deep pockets, it can be the perfect moment to step inside. FirstRand, a sprawling financial empire with operations in eight African countries, is said to be sizing up the moment carefully.

The rules aren’t even in force yet, but the whispers in banking circles suggest that a shake-up is coming. If the bank makes its move, the ripple effects could be felt far beyond Nairobi’s financial district. Read more here >>>>>

KCB Bank’s Profits Up 8% in H1

By Harry Njuguna

KCB has turned in another robust half-year performance, padding its bottom line with disciplined lending and just enough cost control to weather inflation’s bite. A record mid-year dividend, helped along by the National Bank sale, signals that the bank is not merely content to defend its market position, but willing to flex its financial muscle in a tightening regional landscape.

Here is a recap of KCB results in H1 :

🟢 Net profit rose 8% year-on-year to KSh 32.33 billion.

🟢 Interest income: Rose 1.99% YoY to KSh 70.57 billion

🟢 Loan book expanded 6% YoY to KSh 1.095 trillion.

🟢 A record KSh 4.00 per share mid-year dividend.

🟢 Total Assets slightly dip 0.4% to KSh 1.969 trillion.

🟢 Gross non-performing loans rose 4.24% to KSh 221.07 billion.

Read full financial analysis here >>>>>

Proctor & Allan : Under the Yoke of a Lender 

By Brian Nzomo

In Limuru, the hum of cereal production now answers not to founders but to financiers. Proctor & Allan, a name that once stood for breakfast-table reliability, has slipped under the control of KCB Bank after years of debt and missed deadlines. The company’s rescue attempts including court petitions, investor flirtations, last-minute repayment promises…unraveled one by one, leaving its celebrated owners on the sidelines. Receivers now hold the keys, tasked less with baking prosperity than balancing ledgers. Read more »»»»»

Capital Markets 

The Bond Fever : A Historic Oversubscription 

By Harry Njuguna

The Central Bank’s infrastructure bonds have become the belle of the financial ball, drawing KSh 323 billion in bids for just KSh 90 billion on offer. The appeal was obvious: tax-free interest, near-13% yields, and a market brimming with liquidity from banks and pension funds eager to lock in long-term returns. The frenzy left most bidders empty-handed, setting the stage for a scramble in the secondary market, or perhaps a tap sale if the CBK decides to sate some of that demand. This isn’t the first time infrastructure bonds have whipped up a crowd, but the sheer scale makes it historic. Read more >>>>>

NSE Gainers & Losers 

INSIGHT : Can Africa Afford Its Nuclear Energy Ambitions?

By Fred Obura

Africa’s energy conversation sounds a lot like a high-stakes dinner party: everyone agrees the menu must change, but no one’s sure who’s footing the bill. Nuclear power has wandered back into the room, dressed in the promise of clean electricity and the aura of modernity. The price tag, however, could make even the most ambitious planner choke…a figure so vast. Still, the idea refuses to fade, with governments eyeing not just reactors but partnerships that might share both cost and risk. Some projects are already sketched on paper, others still being imagined in the haze of policy speeches and regional cooperation chatter. The sell is easy: low-carbon, high-reliability power for a continent still chasing universal access. The hard part, as always, will be turning ambition into concrete, steel, and megawatts. Read more here »»»»»

OPINION: Keeping African Skies Affordable is a Shared Responsibility

By Abdérahmane Berthé

Flying across Africa still costs far more than it should, a puzzle in a region where incomes are lowest but airfares are among the highest. Taxes, fees, and a tangle of regulations weigh on passengers, turning even short trips into luxuries. Industry voices talk up partnerships and policy reforms as the way to bring prices down without sacrificing safety or service. But over-commercialisation looms, threatening to swap affordability for profit. For now, the dream of accessible skies remains more promise than reality. Read this opinion article here »»»»»

Also Read

Stories you missed 

♦️ Infrastructure. The Public–Private Partnership (PPP) Committee has rejected the proposal to build a 459-kilometer expressway between Nairobi and Mombasa.

♦️ Companies. Car & General Kenya Plc has posted a 920% increase in profit after tax from KSh 62 million in H1 2024, to KSh 637 million for the six months ended 30 June 2025.

♦️Banking. The Central Bank of Kenya’s Monetary Policy Committee (MPC) has lowered the Central Bank Rate (CBR) by 25 basis points to 9.50%, the seventh consecutive cut since November 2024.

♦️ Infrastructure. As CHAN matches roll on, it is clear that the real game is not just on the pitch but also on the country's capacity to deliver on what it promised, but at what cost.

♦️ Public Policy. The Kenya Ports Authority (KPA) has launched a sweeping cleanup at the Port of Mombasa, ordering the removal of long-stay containers and condemned cargo.

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