The recently relaunched ethnic caucus, Mega, will bid to purchase parastatals when the privatisation process kicks off.
Mega’s bank of choice Equity Bank, MD James Mwangi has told his staff that they plan to buy National Bank of Kenya (NBK).
Lee Njiru wrote a very harsh critique of the group, warning the Meru and the Embu, not to get taken for a ride.
ADB: The New head of the African Development bank ADB will be elected on 22. This was after USA and France combined to scuttle Nigeria’s bid for the presidency – according to the Business Day (SA) newspaper. Donors threw their weight behind the Rwandan candidate, Donald Kaberuka. Kaberuka met the criteria on total votes polled but did not meet the regional vote percentage required, while Bisi Ogunjobi, the Nigerian candidate, likewise met the criteria on regional votes but missed that of the total votes polled. According to the East African (Kenya), most countries are determined that the president should not be from a French-speaking country.
KCB: Kenya Commercial Bank will begin offering Western Union services at all branches soon.
EIB: The European Investment Bank (EIB) has opened the first of three first regional office in Sub-Saharan Africa in Nairobi – to cover Central And East Africa.
NBK: National Bank of Kenya is carrying out a retrenchment package that will cost over 80 million shillings ($1m). It is being done in three phases: employees who are over 50 years, followed by non-performing staff. After that, it will be voluntary retirement for anyone wishing to leave the Bank.
Executive Changes:
I missed the best AGM of the year, so far. I wish I had the courage to buy NBK shares.
– The Government has confirmed in writing it will make this payment,” the auditors told skeptical shareholders during the bank’s annual general meeting held yesterday.
– The bank’s management was also at pains to control shareholders’ anger over reports that it will not payout dividend.
– “We are not interested in the glossiness of this book (financial statements. All we want is the information contained in it”
According to the Daily Nation, government-appointed directors at National Bank of Kenya and Kenya Commercial Bank will be replaced by professional and independent directors at the Banks AGMs on June 3 and 17 respectively, both of which will be held at KICC.
Postbank Modernises: Postbank has earmarked 230 million shillings for expansion including an online payment and ATM network. They are also seeking to amend the KPOSB Act 493 of 1978 that set up and governs the Bank. The Bank, which was set up to encourage Kenyans to save, is not allowed to give loans, and they would like to offer micro-finance and consumer loans at their 47 branches nationwide.
Bank to auction land: Bank of Baroda will auction off the 8,300-acre farm that used to be Chemelil Sisal Estate in South Nandi at a cost of 78 million shillings. This stems from 3 loans the directors of the company took between 1971 and 1988, that were never paid and accrued huge interest arrears. The farm has 2,000 squatters who are demanding the right to buy sections of the farm, as they have lived there for many years.
Privatisation in Kenya: (The People Feb 21) The government is considering selling its stake in three banks which it controls. National Bank, which is valued at 4 billion shillings, has attracted offers from several investors, the highest being only 500 million. This is mainly because the Bank has non-performing loans of 17 billion, 11 of which is owed by the government. Other Banks on the list are Consolidated Bank and Industrial Development Bank. The newspaper urges the government not to sell these Banks below their value, despite their various problems.
Privatisation in Tanzania: After a review of technical and financial bids, three banks – Radobank Nederland, Standard Bank (SA) and Akiba Commercial Bank – have been short-listed to bid for a 49% stake in the National Micro Finance Bank of Tanzania. (East African Feb 21)
More SMS: Prime Bank is the latest bank to offer SMS banking to its customers.