Charles Mwaniki

Kenya

Business Writer at Business Daily Africa

Business writer @BD_Africa NMG. Views are own though.

Articles

Why CBK differs with banks on reference rate for pricing loans

1 day ago | businessdailyafrica.com | Charles Mwaniki

The Central Bank of Kenya (CBK) has poured cold water on a proposal by commercial banks to use the interbank rate as a reference rate for determining the pricing of consumers' loans, saying it will not accurately reflect their true cost of funding.
How banks are denying good clients cheaper loans

2 days ago | businessdailyafrica.com | Charles Mwaniki

Commercial banks have been denying good borrowers cheaper credit through improper application of their risk-based pricing models and imposition of additional charges on loan facilities, the Central Bank of Kenya (CBK) has disclosed in a working paper ahead of an overhaul of the current loan pricing regime.
Absa set for Sh13bn IFC loan loss cover for trade finance

2 days ago | businessdailyafrica.com | Charles Mwaniki

The International Finance Corporation (IFC) is lining up a $100 million (Sh12.98 billion) loan loss cover for trade finance facilities backed by South African lender Absa Group in its markets in Africa, new disclosures show.
CBK eyes Sh80bn from bond sale to fund big May payment

3 days ago | businessdailyafrica.com | Charles Mwaniki

The Central Bank of Kenya (CBK) is eyeing a fresh Sh80 billion from Treasury bond buyers in its May 2024 issuance to finance a large maturity of Sh83.6 billion falling due next month. CBK opened the sale of the three-tranche bond on Wednesday, targeting Sh50 billion from a pair of reopened 15 and 25-year papers first issued in April and October 2022, respectively, and another Sh30 billion from a reopened 20-year bond first issued in November 2012.
Dividend yields on listed stocks overtake returns from government papers

4 days ago | businessdailyafrica.com | Charles Mwaniki

Dividend yields on a growing number of listed companies have beaten the returns from short-term government securities after a sustained decline in interest rates. The current volatility in stock markets after the US slapped tariffs on its imports has also seen some of Kenyaâ€™s dividend-paying companies record lower share prices, boosting their dividend yields, which are measured as a ratio of the share price.
Treasury, CMA line up board to unlock Islamic funds

1 week ago | businessdailyafrica.com | Charles Mwaniki

The Capital Markets Authority (CMA) and the Treasury have started formulating a national Shariah board to guide investors on compliant products and investments and boost the issuance of Islamic bonds and Reits. CMA Chairman Ugas Sheikh Mohamed said the demand for Islamic financial products is higher than supply, but the growth of the industry is slowed down by the absence of a centralised Shariah board.
Kenya eyes new Sh112.2bn World Bank, AfDB loans for budget

1 week ago | businessdailyafrica.com | Charles Mwaniki

Kenya is set to draw down $865 million (Sh112.2 billion) in new loans from the World Bank and the African Development Bank (AfDB) before the end of the current fiscal year to fund the external financing component of the budget deficit.
High investor appetite pushes NSE bond turnover up 46 percent in first quarter

1 week ago | businessdailyafrica.com | Charles Mwaniki

The value of bonds traded in the secondary bonds market on the Nairobi Securities Exchange (NSE) jumped by 46 percent to Sh667.8 billion in the first quarter of the year, keeping the market on track to beat the record Sh1.5 trillion turnover realised for the full year in 2024. Falling interest rates in primary auctions have forced investors seeking high-paying bonds to turn to the secondary market, raising demand for lucrative papers such as the infrastructure bonds issued between 2023 and 2024.
CBK mops up excess cash as lenders stay cautious about defaulters

1 week ago | businessdailyafrica.com | Charles Mwaniki

The Central Bank of Kenya (CBK) has stepped up its mop-up of excess liquidity from the money market this year, exposing the increased cash reserves held by lenders amid slowed lending to the private sector. The CBK has cumulatively pulled out Sh1.83 trillion in liquidity through repurchase agreements (repo) since January, reversing the trend seen last year when it injected cash into the market.
Umeme investors face payout delays on buyout deal dispute

1 week ago | businessdailyafrica.com | Charles Mwaniki

Investors in the cross-listed Ugandan electricity distributor Umeme face a lengthy wait for their payout after the company filed a legal dispute over a lower-than-expected buyout price offered by the Uganda government for a recently ended concession.