In this episode recorded on 26.03.2024, we host Lawrence Kimathi, Group Director Finance - KCB, as we break down the bank’s 2023 financial performance.

We also cover NBK’s sale, subsidiary performance, dividends, the G2G oil deal, and the bank’s 2024 outlook.

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Show Notes

00:00:00 Introduction

00:03:00 Local vs Multinational Banks

00:04:00 FY23 Results Overview

00:07:54 Customer Deposits, Gross Loans, and NPLs

00:18:35 NBK

00:23:10 Interest Income vs Interest Expense

00:26:18 Cost to Income Ratio and Subsidiary Performance

00:33:56 Capex and Dividends

00:36:27 The G2G Oil Deal

00:38:59 Outlook for 2024

In this episode recorded on 25.03.2024, we host Kihara Maina - Regional CEO and Billy Ng'etich - Acting CFO from I&M Group as we break down I&M Group’s 2023 financial performance.

We also cover interest income trends in a rising interest rate environment, monetizing digital transactions, risk-based pricing model, unlocking shareholder value, and subsidiary performance.

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Show Notes

00:00:00 Introduction

00:01:04 Overview of FY 23 Results

00:01:47 Interest Income vs Interest Expense

00:03:00 Non-Funded Income, NPLs, and Interest Income Trends

00:09:02 Bottom Line, ROE, and Investments

00:16:31 Lending Rate and Risk-Based Pricing Model

00:20:27 Strategy, Positioning, and Products

00:23:46 Dividend Payout Ratio and SLLR

00:28:46 Acquisition by East Africa Growth Holding

00:29:26 Unlocking Shareholder Value and Subsidiary Performance

00:32:51 Monetizing Digital Transactions and G2G Transactions

00:37:29 2024 Outlook

In this episode recorded on 19.03.2024, we host Yusuf Omari - Finance Director, Absa Bank Kenya, to deep-dive into the bank's FY 2023 results.

We also cover FX depreciation, exposure to government securities, risk-based pricing model, the cost of risk, and mark-to-market losses.

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Show Notes

00:00:00 Introduction

00:01:23 Overview of the FY 2023 Results

00:03:24 FX Depreciation and Exposure to Government Securities

00:07:13 NPLs and Preference for Short-Term Lending

00:10:56 Customer Deposits, Loan Uptake, and the IFB

00:18:55 Cost of Risk and the Cost-to-Income Ratio

00:25:19 CAPEX and Dividends

00:27:44 Non-Funded Income, Insurance, and Asset Management

00:32:08 Loan-To-Deposit Ratio and Mark-To-Market Losses

00:34:19 Interest Expense, FX Outlook, and Risk-Based Pricing

00:40:48 Longterm Plans, M&A, and Key Takeaways

In this episode recorded on 29.02.2024, we host Nankunda Katangaza - Co-founder and Director, Hook Tangaza, John Kamau - Associate Director Financial Crime Advisory, PwC EA, and Titus Kariuki Senior Manager Financial Crime Advisory, PwC EA to unpack the repercussions of Kenya's greylisting by The Financial Action Task Force (FATF).

We also cover the issues Kenya needs to address to get off the grey list, measures to protect against financial crime, cryptocurrency as an attractive channel for illicit funds, and enhancing compliance.

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Show Notes

00:00:00 Introduction

00:04:41 FATF, AML, and CFT

00:07:33 Implications of Being on the Grey List

00:25:13 Issues to Address to Get Off the Grey List

00:36:50 Challenges in Reporting Suspicious Transactions

00:42:52 Enhancing Compliance

00:59:07 LSK’s Contribution Towards Getting Kenya Off the Grey List

01:04:04 Cryptocurrency as an Attractive Channel for Illicit Funds

01:07:18 Protecting Against Financial Crime

01:13:54 Closing Remarks

In this episode recorded on 06.03.2024, we host Dennis Musau - Chief Finance & Value Officer, Stanbic Bank to delve into the bank's FY 2023 earnings results.

We also cover the loan book, NPLs, participation in the G2G program, the impact of Kenya’s graylisting by FATF, dollar access in the market, SBG Securities’ performance, dividends, and share buybacks.

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Show Notes

00:00:00 Introductoin

00:06:46 2023 Performance Overview

00:10:04 Loan Book and Non-Performing Loans

00:22:44 Interest Income, Investment In Gov’t Securities, and Non-Funded Income

00:30:02 The G2G Program

00:32:18 Statutory Loan Loss Reserve, Dividends, and Share Buy Backs

00:37:55 South Sudan Subsidiary’s Performance, M&A, and SBG Securities

00:42:11 Exposure in the Tea Sector

00:43:58 FATF Graylisting, Dollar Access, and Eurobond Repayment

00:53:21 Impact of Depreciating Currency on Tier-One Banks

00:57:14 Outlook, Strategy, and Closing Thoughts

In this episode recorded on 14.02.2024 and hosted by Ramah Nyang - Business Journalist, Bloomberg, we are joined by Julians Amboko - Business Journalist, Nation Media Group and Churchill Ogutu - Economist, IC Group to discuss Kenya's recent Eurobond issuance and buyback.

We also cover borrowing from the domestic market vs the international market, issuing Eurobonds at a fixed vs floating rate, and expectations from the Finance Act and Finance Bill 2024.

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Show Notes

00:00:00 Introduction

00:05:13 Cross-Default

00:08:20 2031 Eurobond Issuance and the 2024 Eurobond Buyback

00:11:03 Alternatives for Settling the 2024 Eurobond

00:16:52 Domestic vs International Markets

00:21:38 Pricing of the 2031 Eurobond

00:28:11 Expectations from the Finance Act And Finance Bill 2024

00:30:30 Fixed vs Floating Rates and the FX Market

00:40:33 Ammortizing Feature

00:42:27 Longer-Term Eurobonds from Frontier Markets

In this episode recorded on 08.02.2024, we are joined by Toddy Thairu - Director and Lead Consultant, Astute Consulting and Zach Munyi - Head of Public Policy, East African Breweries PLC for a discussion about the implications of the 2023 Finance Act amendments on excise duty.

We also cover how Kenya compares to the rest of the East African region, excise duty changes in the Finance Act 2023, and the impact of stamp and excise duty on EABL’s financial performance.

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Show Notes

00:00:00 Introduction

00:01:00 Excise Duty and its Traditional Intention

00:03:50 Kenya vs East Africa

00:04:46 How has Excise Duty impacted EABL?

00:06:49 Excise Duty Changes in the Finance Act 2023

00:30:52 Impact of Stamp and Excise Duty on EABL’s Performance

00:32:54 Medium-Term Revenue Strategy

00:42:10 Minimizing the Impact of Excise Duty

00:45:37 Closing Remarks

In this episode recorded on 22.01.2024, we are joined by Churchill Ogutu - Economist, IC Group and Julians Amboko - Business Journalist, Nation Media Group for a discussion on the latest IMF report on Kenya.

We also cover the Medium-Term Revenue Strategy (MTRS), broadening the tax base, currency depreciation, and Eurobonds.

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Show Notes

00:00:00 Introduction 

00:02:26 Why Does Kenya Need the IMF?

00:05:09 Takeaways From IMF’s Sixth Review Report

00:12:15 Medium-Term Revenue Strategy and the Finance Act 2024

00:17:24 Augmentation of Existing IMF Programs

00:23:47 Extended Credit Facility (ECF) Extended Fund Facility (EFF), And Resilience And Sustainability Facility (RSF

00:26:03 Broadening The Tax Base and Fiscal Consolidation

00:36:52 Treasury Single Account, Appropriation Bill, and Appropriation Act

00:41:16 Currency Depreciation and Special Drawing Rights 

00:53:32 Consumption Tax, Refinancing, and Eurobonds

01:02:38 Closing Thoughts