KCB Q3 Pretax Profit Up By 17 Percent

Kenya Commercial Bank (KCB) has posted an improved pretax profit rising by 17 percent for the third quarter of 2014.

The company pointed out growth in Transaction Fees and improved efficiency through the use of alternative business channels, as well as, a significant growth in non-funded income as some of the driving factors behind its profit growth.

Image via Business Daily Africa

The Bank's CEO Joshua Oigara told CNBC Africa “We have also seen good increment on our fees and commission which is also not a surprise because we have invested very strongly on the non-funded income, alternative channels, invested in agency banking… despite the reduction in our net margin this year compared to last year.”

The group fees and commission on loans was up 20 percent to 3.5 billion Kenyan shillings while loans and advances grew by 17 percent to 264.3 billion Kenyan shillings from 225.7 billion shillings reported the same period last year.

KCB is East Africa's largest commercial bank in terms of assets, and despite experiencing some serious headwinds in its operations in Uganda and Southern Sudan over the recent past, the group still managed to grow its overall assets significantly increasing from $385.2 billion Kenyan shillings to 451 billion shillings, representing another 17 percent growth,a figure that was so common in the recent results.

Kenya is the company's largest revenue contributor accounting for 77%, while South Sudan contributes about 12.7%, with Tanzania, Rwanda and Uganda accounting for 3.7%, 3.2% and 3.2% respectively.

Kenya Will Review Growth Target After Rebasing: Says CBK Chief

Kenya will review its economic growth target for this year after it recalculated the size of the economy.

This is a move that led to a jump in annual growth rates, its central bank governor said on Monday.

Government officials put 2013's gross domestic product at 53.4 billion US dollars - 25 per cent higher than previously stated - after updating the base year for its calculation.

Growth for 2013 was revised up to 5.7 per cent from 4.7 per cent. The higher growth trend was confirmed when the statistics office said the economy expanded by 5.8 per cent in the second quarter, up from 4.4 per cent in the first three months. Read More...

Horn Of Africa Gets Development Boost As Lenders Pledge $8 Billion

According to Reuters, Global Development Lenders have pledged more than $8 billion to boost economic growth in eight countries in the Horn of Africa region.

The Horn of Africa region has faced several challenges over the last few decades including political and security related threats. Despite all these, the region is one of the most promising in the continent in terms of economic growth. However, in order to realize this potential, the Horn of Africa region would have to meet crucial development milestones like a clear infrastructure that links the eight countries.

The Horn of Africa region features some of the world's fastest growing economies including, and is comprised of Kenya, Uganda, Sudan, Eritrea, Somalia, Ethiopia, Djibouti and South Sudan.

The $8 billion pledged by global development lenders will be invested in the countries' infrastructure development, which
include projects like regional oil and gas pipelines, programmes to improve health and access to energy, as well as, the expansion of university education and job training in the coming years.

The countries of the Horn of Africa are making important yet unheralded progress in economic growth and political stability, United Nations Secretary General Ban Ki-moon said in a statement announcing the commitments.
Now is a crucial moment to support those efforts, end the cycles of conflict and poverty, and move from fragility to sustainability,” Ban added. 

Most of the countries in the Horn of Africa region have shown impressive signs of economic growth with Ethiopia, Kenya and Sudan being among the most promising. The countries in this region also boast a wealth of mineral deposits, which would become more accessible and easy to commercialize with improved infrastructure.

NB: Photo UNDP.

Kenya Power FY Pretax Profit Jumps 55.2 Percent

National utility firm, Kenya Power, has posted a 55.2 per cent rise in its pretax profits for its full year results.

Kenya Power, has posted a 55.2 per cent rise in its pretax profits for its full year results. PHOTO: Getty Images

The firm that supplies electric power and energy services across the country recorded 10.2 billion Kenyan shillings in its profit before tax. This positive performance is credited to higher tariffs, increased sales and enhanced systems efficiency. Read More