I&M Bank Allocates Sh300m for Social Investment This Year

October 31, 2016: I&M Bank has set aside Sh300 million for investment in project that empower members of the community in which it operates, the Bank’s Executive Director Mr. Sarit S. Raja Shah has said. 

Sarit Shah -Executive Director I&M Bank

Speaking during the launch of a two day free medical camp at St Martins Kibagare Primary School in Loresho, over the weekend, Mr. Shah said the Bank was reaching out to the under-privileged population in three social pillars of health, education and environment.

“Each year, I&M Bank sets aside 2% of its pre-tax profits which is kept under a fund to support various social initiatives in the areas of health, education and environment,” Mr. Shah said.

Mr. Shah noted that, in addition to the health initiative, the bank was constructing St. Ann’s Suresh Raja Shah Girls Secondary School, Kairi, at a cost of Sh200 million which is expected to be completed next year.  The bank also set aside Sh4.5 million and Sh3.5 for environment and health initiatives respectively.

“We have broken ground for the school project and the construction is going on,” Mr. Shah said. “We are also actively involved in the conservation of Karura Forest where our staff plant trees and clean Karura River every year.”

The bank has recorded growth in pre-tax profits over the past four years.  In 2015, the Group’s profit before tax reached Sh8.6 billion, Sh7, 480,487 in the years 2014, Sh5, 987,131 in the year 2013, and Sh5, 301,608 in the year 2012.

CHASE BANK EYES HORTICULTURAL SECTOR WITH NEW PARTNERSHIP

Nairobi: January 21, 2015 – Chase Bank is targeting the one-billion shilling horticultural sector as it braces for its next phase of growth, Chase Bank Business Development Director Ken Ouko, has said.

“Horticultural sector is one of the key sectors in the Kenyan economy and as a bank we are keen in developing this sector,” said Mr Ouko. “Our agricultural division, Chase Agri offers financial solutions that are drawn from a deep understanding of the agricultural sector, as well as the diverse and unique needs of our clients who include small, medium and large scale players within the various agribusiness value chains.”

Mr. Ouko was speaking when the bank signed a partnership agreement with Green Farming, a group of Dutch horticultural technical suppliers and knowledge partners.

The partnership will see Chase Bank customers gain easy access to greenhouse technology, input supplies, capacity building and access to financial services and the domestic market under Growing Solutions, a programme managed by Green Farming and aims at improving local entrepreneurship in Kenya on the theme of food security and food safety and is executed by a consortium of Dutch private partners in close co-operation with local partners.

“Green Farming works together with Kenyan partners to find sustainable solutions adapted to the Kenyan climate and economic circumstances.  This partnership with Chase Bank enable us to tie together financial and technical aspects of our project to ensure their success," said Green Farming President Harm Maters.

With the proof of concept complete and commencement of business development phase of the program, Chase Agri will leverage on the program to target, SME Vegetable Growers, to finance the acquisition and implementation of the greenhouse packages.

“As a bank, we cherish strategic partnerships that help us satisfy the ever changing needs of our customers. We believe this partnership will be useful to our current and prospective customers in the agricultural sector by creating added value for horticulture entrepreneurs through the continuous marketing of innovative and contemporary services and products,” said Mr. Ouko. 

“Our strategy included working closely with partners in the horticulture industry who offer technical support, optimal inputs and access to market such one the one we have signed with Green Farming,” he added.

Green Farming has a reputation in the field of agro-consultancy, and undertakes its own scientific research, as well as providing operational, strategic planning and turn-key consultancy across all sectors in Agriculture and Horticulture.

Green Farming is headquartered in the Netherlands with presence in the United Kingdom, Belgium, Spain, Russia, Saudi Arabia, East Africa, and Latin America.

Western Union Partners With M-Pesa In Enabling Local Mobile Money Receipts

It is now possible to receive funds sent from abroad through Western Union Money Transfer services via the M-pesa Platform ! This comes as particularly good news to Kenyans both in the diaspora and locally who have been seeking an efficient and seamless service when it comes to money transfer.

On 16 July 2012 the global payments service provider announced  a promotion set to run till 7 September 2012 with intent to popularize the service especially among Kenyans in America. Customers who tell at least three friends and family members through a qualifying referral about the Western Union^® Mobile Money Transfer service from the U.S. to Kenya will receive a coupon for a $0-fee* transaction. To qualify for the coupon, U.S. customers must “tell a friend” through www.westernunion.com/mpesa using e-mail, Facebook or Twitter.

The new service enables consumers to be able to send money to Mpesa subscribers from nearly 170,000Western Union Agents located in 91 Countries and Territories including the USA.According to the press release from the Company:

 The service operates on Western Union’s worldwide network and trusted global “hub” for processing cross-border remittances. It also builds on the unprecedented success of M-PESA, a mobile money transfer service in Kenya offered by Safaricom that has attracted nearly 15 million customers since its launch in 2007. Funds are delivered directly to M-PESA subscribers and are usually available in minutes.

This facility is a ready welcome and enabler for e-commerce within the region.It is expected that the service will prove very popular among Kenyans.According to a recent Central Bank of Kenya report Kenyans in the Diaspora remitted back home a whooping US $891,107,000 in 2011.This is a lot of foreign exchange and definitely indicates that both Safaricom and Western Union are targeting an already existing and lucrative market.For Kenyans the "Mobile Wallet"service will certainly ease transactions and  enhance money transfer services and usage.

Enablis Network of Entrepreneurs Soars, Creates More Jobs

Nairobi: April 13^th , 2011 – Enablis East Africa network of entrepreneurs created a total of 3,700 jobs in 2010, up from 1,659 in 2009 an annual independent member survey has revealed.

 The Independent Annual Survey, conducted in February 2011, for the third consecutive year by research company Research in Action across Enablis’ 500-strong membership indicated that each entrepreneur in the network created an average of 7.4 jobs up 6.5 jobs the previous year, across all sectors of the economy.

 Commenting at the launch of the survey, Mr. Ali Mufuruki, Chairman of Enablis East Africa said: “We are delighted at the positive results that we are seeing through this annual survey. Our membership has grown to the 500 member milestone from 222 entrepreneurs in 2009. This is a huge achievement for a young organization such as ours, but more importantly, is that our members are creating more jobs year on year.”

“These results demonstrated that great things are possible when entrepreneurs receive the necessary support such as skills, knowledge and networking opportunities such as the once provided by Enablis. We believe that entrepreneurs can have a tremendous impact on socio-economic development of the East Africa region.”

The Enablis’ package of services for entrepreneurs is based largely on the Chase Bank Enablis Annual Business Launchpad Competition, which draws members to Enablis as a platform for networking, capacity building and financing. 

Enablis Africa Chief Operating Officer, Moses Mwaura, said, “We are very happy to see the membership across our country chapters growing so quickly in Kenya, Tanzania and Rwanda. Additionally, the results of annual survey help to confirm that our programmes add value to entrepreneurs in our network. We continue to strive to best serve the needs of our members and provide them with necessary access to skills development and networking.” 

Mrs. Christine Dusabe is Enablis East Africa’s 500^th member. Mrs. Dusabe is the owner of Rwanda Processing Lumen, a cassava food processing business in Kigali, Rwanda. Rwanda Processing Lumen specializes in purchasing cassava produce from farmer’s cooperatives in the region and processing it into starch and high quality cassava flour, the staple food in the region. In addition, the company also grows its own cassava for processing. Mrs. Dusabe came to Enablis which helped her to build critical business skills, knowledge and gave her networking opportunities with other entrepreneurs.

Demographics

The 2010 Survey included a sample of 122 Enablis East Africa members in Kenya and Tanzania. In this sample, 62% of respondents were male and 38% female, 62% were over 35 years of age and 38% were under 35. Participants come from a range of sectors, the largest including Services (49%), ICT (18%), Agriculture (16%) and Manufacturing (15%).

Job Creation

The 122 entrepreneurs included in the Survey sample have a total of 1105 employees, for an average of 9 employees per member. They created 246 full-time jobs and 659 part-time jobs in 2010, which equates to an average of 7.4 new jobs per member in 2010. Projected across the 500 members, this equates to an estimated total of 3,700 new jobs over a year.  Since the first survey results conducted in East Africa, Enablis member entrepreneurs have created an estimated 9,700-time and part-time jobs.

Business performance

Eighty- seven percent (87%) of survey respondents indicated that they had steady or increased turnover over the past year.  In terms of profits, 83% of respondents experienced steady or increased profits in 2010. Seventy-four percent (74%) of entrepreneurs surveyed have improved, extended or introduced new products or services in the past year and 28% added new businesses.  

Improvement in business skills and knowledge

Ninety-five percent  (95%) of respondents indicated that Enablis has helped them grow their businesses, and an impressive 98% report that they have improved their business skills and knowledge since joining Enablis with networking skills, business strategy and communications toping the list of skills developed.

Ebenise Bester, CEO Enablis Africa, explains, “We are grateful to have the opportunity of working with forward-thinking partners prepared to invest in entrepreneurs. The Canadian International Development Agency, Accenture, Chase Bank, Safaricom, NMB Bank and Microsoft have made these benefits possible to the members in our network.”

Family Bank Pesa Pap Product Campaign Drives Growth

The impressive growth witnessed by Family Bank in its third quarter without doubt must be attributed to among other factors its innovative 'Pesa Pap' Product.So popular was this  Campaign Drives that an un witty popular viral video about a media personnel in one of the local media houses was dubbed "patwa pap!'.In essence this demonstrated that the Banks Product had become popular at least in recognition amongst the common populace.Hence the below press release does not come as a suprise:

FAMILY BANK POSTS 117 PERCENT PROFIT GROWTH

…. Impressive results attributed to growth in business 

 Nairobi  November 30, 2010…………….Family Bank, one of Kenya’s fastest growing banks, has reported a 117 percent profits growth in third quarter.

The bank’s profits before tax grew to Ksh 484.6 Million in September 2010 from Ksh 223.8 Million in September 2009. 

Releasing the results, the bank managing director Peter Kinyanjui attributed the phenomenal growth to a strong loan book which grew by 29 percent from Ksh 7.3 Billion in September 2009 to Ksh 9.4Billion in September 2010. 

“Interest income over the period grew by 35.3 percent from Ksh 967.6 million to Ksh 1.3 billion while non interest income grew from Ksh 746.9 million to Ksh 1.1 billion over the same period,” Kinyanjui said.  

At the same time the bank’s balance sheet expanded drastically with assets jumping 52 percent from Ksh 12.3 Billion in September 2009 to Ksh18.6 Billion in September 2010 while deposits grew by 49 percent from Ksh 9.6 Billion in September 2009 to Ksh14.3 Billion in September 2010.

During the period under review, the bank’s capital shot after AfricInvest, a private equity firm acquired 24.99 percent stake pushing up total shareholders’ funds by 97 percent from Ksh 1.6 billion in September 2009 to Ksh 3.1 billion in September 2010. 

AfricInvest Group of the leading private equity firms in North and sub-Saharan Africa with over $550 million (Ksh 44 billion) of assets under management across 10 Private Equity funds. 

“In the period under review our customer base has grown to  800,000 while subscribers to our revolutionary and popular mobile banking platform Pesa Pap hit 140, 000,” Kinyanjui added.  

Recently the bank re-launched its brand identity. The new brand identity combines the bank’s purpose of enabling people to create and sustain wealth through access to flexible, affordable financial services and its strategic thrust to become the premier lending bank. 

Under the new brand identity, the bank will position itself as a financial institution where customers feel valued, understood, supported and respected like in a family. The brand position is captured by the bank’s new tagline “With you, for life.”

ENABLIS FUNDS FIRST ENTREPRENEUR IN KENYA

Nairobi, Kenya, 17 November 2010 – Enablis Entrepreneurial Network East Africa today announced the first loan disbursement of KES 20 Million to a Kenyan entrepreneur through its Loan Guarantee Program with Chase Bank.

Speaking of the occasion, Enablis Africa CEO, Sally Moodley said, “This is another critical milestone for the Enablis network of more than 1,000 entrepreneurs in Africa. Our Enablis entrepreneurs in Kenya are now able to access loans from Chase Bank with Enablis providing the necessary guarantee, in partnership with the Canadian International Development Agency (CIDA), that allows the Bank to consider the entrepreneurs’ applications favorably.”

Enablis, a public-private partnership, operates at the grass-roots level and is dedicated to delivering to its member entrepreneurs key business enablers like capacity building support, business management training, mentorship, networking opportunities, and access to finance. Enablis loan funding partners in East Africa include Chase Bank in Kenya and National Microfinance Bank PLC (NMB) in Tanzania.

Enablis member Athanas Matheka, the entrepreneur recipient of this KES 20 Million loan, is the owner of Greenforest Foods Ltd (GFL). GFL deals in refining, bottling and marketing of high quality pure natural honey. Greenforest Honey is a leading brand sold through all the major supermarket chains.

The funding will be used for expansion of the business into processing and marketing of edible nuts, and growth of the honey market regionally. While receiving the funds, Mr. Matheka said,

“With this facility, I will expand my business and create direct employment through additional staff, and indirect employment for the farmers and other suppliers from whom I will source materials. Clearly, access to this level of funding made possible by the Enablis guarantee and the Chase Bank facility will transform my business and contribute to poverty alleviation. I am extremely thankful to Enablis and the Government of Canada who made all this

possible and to Chase Bank for a wonderful new relationship.”

Moses Mwaura, Regional Director, Enablis East Africa, commented, “This Loan Guarantee Program gives us the ability to fulfill our mandate of providing support to entrepreneurs in all spheres of their businesses. It also allows us to make a substantial difference to the sustainability of Kenyan entrepreneurs in terms of skills development, networking opportunities and finally access to finance.”

BANK OF AFRICA PRE TAX PROFIT GROWS BY 105 PERCENT

BANK OF AFRICA PRE TAX PROFIT GROWS BY 105 PERCENT

…as customer deposits hit the Ksh. 18 billion mark

Nairobi, Wednesday 17^th November 2010: Bank of Africa Kenya (“BOA”) has reported a pre-tax profit of Kshs 280.2million for the nine months ending September 2010, representing a growth of 105 percent compared to the Kshs. 136.4 million reported for the same period last year.

“This year, we have seen tremendous growth in customer deposits and the loan book. This has greatly contributed to the good financial results we have recorded throughout the year,” said Mr Kwame Ahadzi, Managing Director, Bank of Africa.  

The bank has grown its total assets from Kshs.15.0 billion in September 2009 to Kshs. 24.6 billion in September 2010.

“Last year, we embarked on an aggressive branch expansion campaign, with the primary aim of taking banking services closer to the people. , We have opened four branches this year which has increased our asset base and greatly contributed to increased customer deposits which has grown from Kshs.10.9 billion in September 2009 to Kshs. 18.3 billion in September 2010, representing a 67 percent growth,” said Kwame.

The bank’s loan book stands at Kshs. 12.4 billion as at September 2010 as compared to Kshs. 7.8 billion recorded in the same period last year, representing a 58.9 percent growth.

Furthermore, the bank’s total interest income rose by 54 percent from Kshs 808.9 million to Kshs 1.2 billion during the same period in review, while its total operating income increased by 53 percent to reach Kshs 1.1 billion compared to Kshs. 727million in the same period last year.

“We anticipate positive full year financial results and we plan to develop more products and packages to target different market segments to ensure more Kenyans can access affordable financial services. Some of the products being developed will target athletes, health service practitioners and other selected sectors,” said Kwame. 

As a group, which covers Kenya, Uganda and Tanzania, pre-tax profit rose by 62 percent, to Ksh. 380.8 million from Ksh 234.1 million with total assets grew from Kshs. 22.9 billion to Kshs. 33.5 billion.

…Ends…

About Bank of Africa

BANK OF AFRICA KENYA LIMITED is an all public bank which started operations in Kenya in July 2004 after taking over the banking business of Banque Credit Agricole Indosuez, which had operated with only two branches in Nairobi and Mombasa for over 20 years.. Today, BOA-Kenya has 13 branches in Kenya spread over the major towns. 

The bank is a member of the GROUP BANK OF AFRICA which is well established in 12 countries in Africa namely: Benin, Burkina Faso, Burundi, DR Congo, Ivory Coast, Kenya, Madagascar, Mali, Niger, Senegal, Tanzania and Uganda. The Bank of Africa Group also has operations in France.

For more information please contact:

Mumbi Keega                                                       or                            Tom Kiuna

Account Manager                                                                                Marketing Manager            

Hill & Knowlton                                                                                    Bank of Africa Kenya

Tel. 4454461/0722865957                                                                               211175, 210546

Email: Mumbi.Keega@hillandknowlton.co.ke                                tom.kiuna@boakenya.com

Equity Bank SME China Development Bank Deal

Kenya's leading Bank Equity and China Development Bank have announced a Kenya shillings 4 Billion credit facility for Small and medium enterprise businesses.The credit/loan facility will attract low interest rates of between 7% to 9 % for periods of up to 9%. The announcement heralds good times for many small business entrepreneurs who often face punitive interest rates and harsh terms when trying to secure Business loans.

Since its early start as a micro finance institution Equity Bank Kenya Limited has blazzed trail as the Bank for the common Mwananchi(Citizen).  In fact my first Bank account after finishing campus was with Equity Bank as they were the only Bank that did not require Bank Statements, Utility Bills in prospective account Holders Name and letters of introduction from two current customers in the respective Bank Branch. I found such requirements quite absurd and against the spirit behind Banking and what led to the formation of Banks in the first place.Its for such reasons that Equity Bank has continued to steadily increase its customer base.Quite recently the Bank won the African Banker Awards Micro-finance Bank of The Year.

Equity Bank also has innovative products such as the recent launch of the branch-less Mobile Banking /phone based account M-Kesho in partnership with Safaricom's M-Pesa.The  M-Kesho product will be a favourite to many middle and low income earners who have proved to be the driving force behind Equity's growth. KCB's Bankika account seems to be afterthought with intent to rival Equity's dominance of the low income earners segment of the market.Thanks to Equity's competitive products Banking has become accessible to people who previously would only have dreamt of owning a Bank Account.

Furthermore the Bank continues to register increased profit margins on 23rd April 2010 … Equity Bank Group announced a 43 per cent per cent increase in profits before tax for its first quarter in the current financial year, posting a Kshs 1.7 billion profit compared to Kshs 1.2 Billion for the same period last year.That is the kind of news any investor would be happy to hear.
 
Furthermore Equity Bank seems now to on a drive to fund,enhance and support small business.I believe on behalf of many Kenyans and many "Nairobians" we certainly are thankful to Equity Bank for the benefits reaped so far.

"Nokia Money"- Safaricom Mpesa Here Comes The Big Boys !

Nokia has launched a mobile phone payment/money transfer service in India that closely resembles the Safaricom M-Pesa service model that was first rolled out in Kenya by the Vodafone affiliate in 2007.

The M- Pesa concept(see wikipedia stub) made it possible for people to transact business without the need to visit a Bank premise or to make actual physical payment of money.In essence M-Pesa is branch less banking service.The Nokia Money scheme is a replication of the M-Pesa money transfer model and seems to be offering no added value.The service will be first rolled out in India and thereafter on a Country by Country basis.

Nokia money will allow subscribers to transfer money, pay  merchants for goods and services,pay utility bills ,carry out online transactions and even top up their phone credit.Without doubt Nokia has the financial muscle and it is quite telling why the service was rolled out in India first as opposed to Africa where mobile money transfer schemes are readily catching up like wild fire. Indeed Safaricom the big boys are coming your way so it is time that the service was made more affordable both for the sender and recipient of the money transfer and of course more innovative. 

The Nokia group hopes that the new service will help extend its profitability beyond device sales. Indeed, the company is targeting  to have 300 million active users of its services by the end of 2011.Nokia money is aimed to work on any device, not just Nokia phones and will feature joint partnerships or collaboration with local banks.Of course here at A Nairobians Perspective we are eager to see how all this rolls out and of course experience the benefits of competition in the service industry.