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  • Energizing Kenya: Addressing Power Costs and Investor Concerns as CS Ndungu is kept on the radar

    Energizing Kenya: Addressing Power Costs and Investor Concerns as CS Ndungu is kept on the radar

    The Cabinet Secretary (CS) for National Treasury & Economic Planning, Prof. Njuguna Ndung'u appearing before the Departmental Committee on Energy
    The Cabinet Secretary (CS) for National Treasury & Economic Planning, Prof. Njuguna Ndung’u appearing before the Departmental Committee on Energy

    The Cabinet Secretary (CS) for National Treasury & Economic Planning, Prof. Njuguna Ndung’u, recently informed the Energy Committee about the process involving Legal Clearance for letters of support to Independent Power Producers (IPPs). This revelation contradicts the Attorney General’s claim that his office was not involved in the Power Purchase Agreements (PPAs). During the session chaired by Hon. Vincent Musyoka, CS Ndung’u clarified that the issuance of Government Support Measures (GSMs), including letters of support to IPPs, falls under the jurisdiction of the CS for National Treasury and Economic Planning.

    In justifying the issuance of these letters of support, CS Ndung’u emphasized that they function as a mechanism to safeguard both the government and the private sector. According to him, these letters serve as a contingent liability, providing necessary protection for both parties involved.

    Members of the Energy Committee expressed concerns regarding the impact of various taxation measures and levies on the overall cost of power. They discussed ways to manage these costs to provide relief to the citizens of Kenya. In response, Prof. Ndung’u clarified that the only national tax imposed on electricity is the 16% Value Added Tax (VAT). He argued against its removal, citing concerns about introducing discrimination within the VAT tax regime. Instead, he recommended focusing on reducing costs related to the Water Resource Management Authority (WARMA) Levy, the Energy Regulatory Commission (ERC) Levy, and the Rural Electrification Program (REP) Levy.

    Accompanying the CS Treasury, Mr. Chris Kirigua, the Director General for private-public partnerships, highlighted the necessity of reviewing the existing PPAs. He stressed the importance of scrutinizing these contracts to identify discrepancies and rectify them, emphasizing a zero-tolerance policy for any irregularities.

    Additionally, committee members expressed their worries about the economic repercussions of high electricity costs in Kenya. They noted that this issue has been driving investors away, with neighboring countries like Tanzania and Ghana becoming more attractive investment destinations. In response, CS Ndung’u acknowledged the impact of not only the high cost of power but also the recurring power outages in the country, both of which are contributing to this concern.

    The Energy Committee plans to engage in further discussions with stakeholders in the Energy Sector to thoroughly investigate the causes of the high cost of power in Kenya. Subsequently, they will collaborate to formulate effective measures aimed at reducing these costs and promoting a more investor-friendly environment in the country.

  • Hon. Waithera Chege: A Beacon of Dedication and Leadership Shines Bright in Nairobi’s Political Landscape

    In the vibrant tapestry of Nairobi’s political landscape, one figure stands out for her unwavering dedication, principled stance, and independent mindset. Adorned with virtues of integrity, transparency, and a profound respect for the rule of law, Honorable Waithera Chege, the Member of the County Assembly representing South B, has become synonymous with relentless service to Nairobians.

    Her journey, marked by resilience and advocacy for the voiceless and downtrodden, reached a pivotal moment of triumph on a bright Monday morning. Waithera’s unwavering commitment bore fruit as she was rightfully crowned the Leader of the Minority in the County Assembly of Nairobi, a testament to her tenacity and leadership acumen.

    From our esteemed desk at Vipasho, we extend our heartfelt congratulations to the Honorable Waithera Chege. In this momentous juncture, we wish her robust health, a sound mind, and a soul filled with purpose. May divine blessings and unprecedented prosperity accompany her, transcending the bounds of imagination.

    In her gracious acknowledgment, Waithera expressed her gratitude, recognizing the significance of this achievement. “This marks a new dawn for the UDA party in the Assembly. I am immensely delighted for this opportunity to serve,” she remarked.

    Honoring the trust bestowed upon her, the UDA Party led by President William Samoei Ruto, and her esteemed colleagues in the Minority Party, Waithera underscored her commitment to women’s empowerment. “This victory is not just mine; it is a triumph for women’s leadership in Kenya. The UDA party and the Kenya Kwanza leadership have shown their unwavering belief in women’s empowerment,” she passionately declared.

    Waithera Chege vowed to be a beacon of unity, transcending differences and fostering a spirit of collaboration. “I promise not to disappoint our members. My approach is rooted in unity of purpose. Together, we shall restore confidence in the party’s leadership within the Assembly,” she affirmed.

    The next step, she indicated, would involve formal communication to the Assembly, a process she assured would be conducted with transparency and efficiency. As the assembly enters a new chapter, guided by Waithera’s leadership, the future holds the promise of renewed vigor and collective progress.

  • As the world marks Global Encryption Day, Paradigm Initiative condemns stringent ban on use of VPNs in Tanzania

    As countries across the world commemorate the Global Encryption Day today, Paradigm Initiative (PIN) condemns the stringent ban on using Virtual Private Networks (VPNs) in Tanzania which undermines the rights of Tanzanian citizens to access information, communicate securely, and express themselves freely online. PIN believes that VPNs are a key enabler of human rights online and are a vital defense against censorship.

    The stringent ban was announced by the Tanzania Communications Regulatory Authority (TCRA) on October 14, a few days before the international commemoration of Global Encryption Day. The TCRA cited that the announcement was consistent with Regulation 16(2) of the Electronic and Postal Communications (Online Content) Regulations 2020. PIN condemns this announcement as it will clamp down on free speech, limit access to information, threaten the right to privacy and expose citizens who have been relying on VPNs to cyber threats and unauthorised surveillance.

    “VPNs are an important part of digital democracy as they can safeguard citizens’ political rights online. In Africa, it has become common for governments to shut down or throttle the internet during electoral periods or to quell protests. VPNs have been providing refuge to millions of citizens and allowing citizens to exercise their rights to express themselves online and participate in civic discourse freely,” said Mr. Sani Suleiman, PIN’s Programs Officer.

    Paradigm Initiative, which is a pan-African organisation that advocates for digital rights and inclusion across the continent further challenged key stakeholders to reject efforts aimed at undermining encryption.

     

    The organisation underscored the importance of strong encryption citing that it cannot be overstated. “It is a cornerstone of a safer digital world for us all. The guarantee of secure and private communication is not only a fundamental human right but also an essential component of maintaining trust in the global digital ecosystem,” Sani said.

    Encryption, he added, ensures that personal data, online communications, financial and sensitive information are shielded from prying eyes, enhancing the safety and security of individuals, businesses, and society as a whole. It is also essential for protecting freedom of expression and association online.

    “Any attempts to weaken this shield are tantamount to compromising the security of all who rely on it. As such, we remain steadfast in our commitment to repel any proposals that threaten to compromise this fundamental technology,” he continued.

    Paradigm Initiative noted that currently, encryption is under threat. In recent years, there has been an upward trend in governments purchasing surveillance technologies capable of undermining end-to-end encryption, often done under the guise of national security or public safety. This is of concern in repressive regimes, where encryption is used by journalists, activists, and human rights defenders to communicate and share information safely.

    The organisation is deeply concerned about the potential impact of these efforts to undermine encryption on human rights and democracy. Encryption is essential for protecting freedom of expression, association, and assembly online. It is also essential for protecting the right to privacy and security.

    When encryption is weakened, it makes it easier for governments and other entities to spy on communications, steal data, and censor online activity. This can have a chilling effect on free speech and association and can also put people at risk of physical harm.

    On Global Encryption Day, Paradigm Initiative therefore;

    Recommends end-to-end encryption and that VPNs be legally available for use by everyone, more so human rights defenders, journalists, and others at risk around the world.

    Urges governments and the private sector to reject all proposals that undermine end-to-end encryption. But rather support policies that enhance, strengthen, and promote the use of strong encryption to protect individuals globally.

    Strong encryption is a critical tool toward a safer world for us all. We must protect it.

    About Paradigm Initiative

    Paradigm Initiative has worked to advance internet freedom in Nigeria since 2007 and has implemented multi-country programs within the African region since 2017. Throughout the African Continent, PIN promotes a rights-respecting continent through a team of digital rights advocates dotted in subregional offices in Cameroon, Kenya, Nigeria, Senegal, Zambia, Zimbabwe and Democratic Republic of Congo (DRC). The organisation’s interventions are spread across more than 28 African countries. Paradigm Initiative pushes for an Internet that is open, accessible, and affordable to all.

  • Kenya and Yemen Forge Strategic Alliance to Boost Coffee and Tea Trade in the Middle East

    Rt. Hon. Dr. Moses Wetang'ula, welcomed Yemen's Minister for Foreign and Expatriate Affairs, Hon. Ahmed Bin Mubarak, to his office at Parliament Buildings.
    Rt. Hon. Dr. Moses Wetang’ula, welcomed Yemen’s Minister for Foreign and Expatriate Affairs, Hon. Ahmed Bin Mubarak, to his office at Parliament Buildings.

    In a significant diplomatic move, the Speaker of the National Assembly, the Rt. Hon. Dr. Moses Wetang’ula, welcomed Yemen’s Minister for Foreign and Expatriate Affairs, Hon. Ahmed Bin Mubarak, to his office at Parliament Buildings. This meeting underscored the deep historical and mutual interest shared by Kenya and Yemen, particularly in maritime trade. Yemen’s strategic location, controlling vital trading routes to Europe via the Red Sea, makes it a crucial partner for Kenya’s economic ambitions.

    The discussions between Speaker Wetang’ula and Yemen’s Minister Ahmed Bin Mubarak highlighted a shared goal: strengthening trade relations between the two nations, specifically in the lucrative coffee and tea markets. Recognizing the Middle East as a vital market, Kenya is keen to establish robust business connections. This collaboration aims not only to bolster trade but also to pave the way for potential investments and employment opportunities within Kenya.

    Kenya’s deliberate policy of engagement with Middle Eastern nations stems from their significance as key consumers of Kenyan coffee and tea, as well as their role as transshipment points to other global markets. The visit by the Yemeni Minister signifies a joint commitment to fostering business and trade relations. Kenya, acting as a gateway to the East African trading bloc, is poised to facilitate this partnership, providing opportunities for mutual growth.

    Speaker Wetang’ula, during the meeting, urged Yemen to consider investing in Kenya, emphasizing collaborations in food production and the establishment of trading hubs within the country. These initiatives would not only bolster business but also create employment opportunities for the Kenyan populace. Furthermore, the Speaker expressed his sincere hope for peace in Yemen, recognizing the direct impact stability in the region holds for Kenya.

    The meeting, attended by key dignitaries including the National Assembly Deputy Speaker Hon. Glady Boss, Yemen’s Charge d’Affairs His Excellency Abdulsalam Alawi, and Yemen Honorary Consulate Sheikh Saleh Shigog, marks a pivotal moment in the diplomatic relations between Kenya and Yemen. The shared vision for economic collaboration and peace underscores the strength of their alliance, promising a future of fruitful cooperation between the two nations.

  • ILAM Fahari Real Estate Investment Trust (FAHR) Sees Oversubscribed Redemption Offer, Marking a Milestone in Strategic Restructuring

    The Nairobi Securities Exchange (NSE) listed real estate investment trust ILAM Fahari Real Estate Investment Trust (NSE: FAHR), redemption offer has been oversubscribed by 13.08%, paving the way for the next stage of strategic restructuring of the investment vehicle.

    During the offer period, the REIT Trustee received applications for redemption of 41,371,604 units, which represents a subscription rate of 113.08%. The REIT also received an application for top-up additional units of 421,945 from Non-Professional Investors.

    Speaking when he confirmed the offer results, ICEA LION Asset Management (ILAM) Chief Executive Officer Mr. Einstein Kihanda said the offer had received redemption applications from non-professional investors wishing to redeem up to 36,585,134 Units currently listed at the NSE, offered at a premium of more than 82% over the trading price as at the offer announcement date.

    ILAM, he reiterated, has been working to restructure the REIT to ensure its sustainability and improve its ability to generate returns for unitholders. A recent strategic review recommended undertaking an operational restructuring plan, which paved the way for this transaction.

    “This transaction provides a viable path to restructure the REIT. We are clear that the REIT needs to grow substantially in size to achieve economies of scale, which can only be done by acquiring additional assets,” Kihanda said.

    “Following the close of the offer period, ILAM, in consultation with the respective transaction advisers, has provided the offering results to the Capital Markets Authority. The results indicate that the offer received a positive response with more than 13.08% above the target number of units,” Kihanda said.

    He added, “With the positive outcome, we are now on course to complete the redemption process and proceed to the strategic restructuring of the ILAM Fahari I-REIT as we seek to position it for growth. The next step will be the Extra-Ordinary General Meeting in November. This is part of our strategic growth plans to deliver positive returns for our investors while deepening the local capital markets.”

    The ILAM Fahari I-REIT Kshs 402 million month-long offer that opened slightly over a month ago sought to redeem up to over 36M units equaling 20.22% of the issued shares of the ILAM Fahari I-REIT as part of an operational restructuring effort.

    As part of the offer, the target unit holders had an opportunity to either redeem their units at a Redemption Offer Price of Kshs 11 per unit, top up to the Kshs 5 million professional investors threshold as prescribed by regulatory provisions, or opt to be bundled under a nominee account holding all non-professional investors who failed to take up the redemption offer.

    The Trustee redeemed up to 301,400 units from each unitholder that submitted their application.

    Alongside the operational restructuring of the REIT, ILAM Fahari I-REIT Chief Executive Officer Mr. Raphael Mwito reiterated that the firm has continued to perform strategic and operational functions in managing the property portfolio and cash reserves to ensure effective long-term management of the REIT, deliver attractive investor returns and ensure compliance with regulatory and legislative requirements.

    “ILAM Fahari I-REIT aims to provide consistent income and capital growth in the long term. Our active management approach targets quality properties within carefully chosen economically growing nodes,” said Mwito.

    The Transaction results in ICEA LION Asset Management Limited increasing its unitholding to 22.74% post-redemption.

    IFIR will remain regulated by the CMA and is registered as a REIT with the Kenya Revenue Authority (KRA), thus continuing to enjoy statutory tax advantages.

    The payments to unitholders will be done on October 24, 2023, while the suspension of trading in ILAM Fahari units at the NSE will be lifted on October 25.

    The ILAM Fahari I-REIT has invested in a portfolio of high-quality investment real estate properties that provide sustained returns and operating performance.

  • Konza Technopolis partners with Health Ministry to launch new Medical Solution – tibERbu

    Konza Technopolis partners with Health Ministry to launch new Medical Solution – tibERbu

    Konza Technopolis and the Ministry of Health have today unveiled a new medical system designed to unify medical records in public hospitals across the country.

    Known as tibERbu, the system is also expected to provide a single point of information for doctors and nurses to access patient digital records during hospital visits, thus saving time and enhancing medical diagnosis.

    tibERbu,  a product of the Konza Technopolis Innovation ecosystem, was showcased for the first time to members of the public in Kericho during the Health Day in the week leading up Mashujaa celebrations.

    Lucas Omollo, Konza Technopolis Development Authority Manager, ICT & Smart City Facilities said that tibERbu will revolutionize the medical sector with its two components comprising Primary Care Network (PCN) and Electronic Medical Record (EMR), which have been successfully rolled out to various health centres across the country.

    “tibERbu covers various service points in the hospital including Registration, Triage, Out-Patient Department (OPD), In-Patient Department (IPD), Specialist Clinics and other support services like billing, inventory. It enables doctors retrieve various reports from the system for efficient clinical decision making among others when running hospitals and managing patients,” he said.

    Mr. Omollo added that the new development was in line with the Life Science strategic focus for Konza Technopolis that has been set to provide an enabling environment for scientific breakthroughs and innovations in bioscience and the health industry, with the goal to position Kenya as a leader in life Science in Africa.

    “Our aim is to collaborate for Better Health through appropriate partnerships with key stakeholders in achieving universal healthcare goals hence positively impacting the local community by improving local healthcare access and quality, Omollo added.

    Outlining the import of the medical system, Health Ministry Cabinet Secretary Susan Nakhumicha explained that it had been locally developed in line with the Kenya National E-Health Strategy which is anchored on the achievement of Vision 2030.

    “Our overall goal in health is to have equitable and affordable healthcare at the highest achievable standard to Kenyans. The implementation of this novel digital health system is informed by the strategies and results emanating from various policies including the Kenya E-Health Policy 2016-2030, health sector strategic plans, the e-Government as well as Shared Services Strategies rolled out through the e-Government Directorate and the ICT Board respectively,” said Ms Nakhumicha.

    She noted that tibERbu is suitable for use by Sub- County and county Human Resources for Health (HRH) (including Health Records Information Officers (HRIOs), Medical Superintendents, Doctors, Nurses, Clinical Officers, Pharmacists, Radiologists, Lab technicians), County staff ICT officers, records officers, cashiers, accountants, NGOs working in the health industry and across the Ministry of Health offices.

    In order to protect patient data, she explained that the system has been designed with strict authentication. “Access to the system is based on user access rights. One must have a username and password to access the system. Users of the system have different privileges based on their roles in the system,” she said.

  • The Power of Purpose

    The Power of Purpose

    Tini Sevak, Vice President, Audiences & Data, CNN International Commercial

    The word purpose is one that fascinates me. Oxford English Dictionary defines it as “the reason for which something is done or for which something exists”. Taking this literal definition, we can clearly say that purpose is existential both for individuals – it’s what makes us get out of bed, what makes us tick, it’s our why – but is also more important for organisations now than ever before. That’s because the rapid shifts in technology, culture, society and behaviour are driving a rise of new attitudes towards how people are deciding which organisations and brands they work for and buy from.

    Companies today need to have a purpose that goes beyond profit and places value and importance on building relationships to be a brand that people can connect with. Getting this connection right improves business performance, reduces churn, and more importantly creates value and trust with customers.

    The data proves this, a study published by the Harvard Business Review found that companies with a clearly articulated purpose outperformed those organisations that didn’t develop their purpose. Specifically, 52% of purpose-driven companies experienced in excess of 10% growth compared to 42% of non-purpose-driven companies. They also experienced greater global expansion, more product launches, and more successful transformational efforts.

    The reason for this is that “transaction businesses” are largely a thing of the past, and relational, purpose-driven businesses are the way of the future. At these organisations, employees are more empowered and motivated, and the resultant innovation and performance fuels even further customer engagement and loyalty.

    As a news powerhouse used as a global point of reference, CNN also has a clear purpose. In line with my own admiration for the work that my editorial colleagues do day in day out, the role of international news is, according to a recent study by Toluna, viewed by 73% of global news consumers as being more important today than ever before. In addition, international news is seen as being reliable, trustworthy, providing high-quality journalism and in-depth analysis.

    This role that CNN plays in the world, based on 43 years of journalism, not only gives us purpose, but also provides a platform and environment to help brands articulate their purpose to global audiences. At the centre is aligning with audience expectation and sentiment around their purpose. When we conducted a study into attitudes amongst the CNN audience, we found that, after inflation, climate change is the second topic that our audiences are most concerned about in 2023. This concern is impacting their behaviour, both in their personal and professional lives. 75 per cent of our audience agree that ‘responsible’ sustainable financing is important in their company’s investment decisions, and around two-thirds work in companies that are transitioning to alternative fuels and energies and have signed up for net zero emission goals.

    The need for brands to be more purpose driven and responsible is especially important to the Gen Z audiences who have a very different set of behaviours and expectation from brands. This is an audience segment that value brand authenticity and strive to be socially and environmentally responsible. They are more cautious of what they buy, who they buy from and the effect their actions have on the environment. The CNN Gen Z audience firmly believe that brands need to take a stance on causes of our time.

    Therefore, we know that brands will be disproportionately positioned to connect with our audience if they are taking meaningful action around sustainability and are able to articulate this message in an authentic way.

    The word “meaningful” is absolutely key here – brands and nations should only communicate around sustainability issues if it’s true to their brand identity and purpose. Your message needs to be borne out in your actions. Otherwise, audiences will quite rightly reject any messages as “greenwashing” leading to a negative reaction.

    Meaningful is also a word used frequently when describing the upcoming COP28 in the UAE. From the very announcement, this has been billed as the most important COP since Paris in 2015. In recent months, further evidence of the climate emergency and its far-reaching effects has been in force all across the world. Even many sceptics are sitting up and taking notice as temperatures soar, wildfires spread, sea levels rise and glaciers melt exacerbating issues from food security to migration.

    If ever there was a time for companies to look to the future, embrace and clearly define their purpose, particularly around the issue of sustainability and the future of our planet, the time is now. The world will be looking closely at not just the words, but the actions, at COP28, presenting a unique moment for brands to show they have the agency to be part of a more optimistic purpose-driven future.

  • Prepare for Spectacular Delights: Gordons Fun Fair Dazzles Mombasa City

    Prepare for Spectacular Delights: Gordons Fun Fair Dazzles Mombasa City

    Kenya Breweries Limited (KBL), through its brand Gordon’s TM, will be treating consumers to an electrifying fourth edition of the sensational “Gordons Fun Fair,” set to rock the vibrant shores of Mombasa’s Flamingo Beach Resort on Saturday, October 23, 2023.

    This unforgettable spectacle will showcase the creÌme de la creÌme of Africa’s musical luminaries, including the illustrious BET award-winner, ShaSha, from Zimbabwe. And that’s not all, brace yourselves for the unrivalled harmonies of Africa’s Premium Brand, Alternate Sound, all the way from Nigeria!

    Kenya’s own sonic champions are taking the stage too. With the likes of Masauti, DJ Grauchi, Charisma, DJ Pierra, DJ Euggy, and Veejay Chris, expect your auditory senses to be taken on a rollercoaster ride of beats and melodies.

    Your hosts for the night, the magnetic MC duo BV Accurate and the charismatic Wanjira are sure to keep the energy at an all-time high.

    But the excitement doesn’t end there! Secure your passage to this exhilarating event via the EABL’s state-of-the-art commerce platform, thebar.ke, or at the nearest Ticket Sasa outlets as well as convenient/ liquor stores in Mombasa.

    Tickets are available at the EABL e-commerce platform thebar.ke. Purchase any Gordons London Dry Gin 750ML OR Gordons Premium Pink 700ML and get 2 Regular Tickets OR Purchase 350ml OR Gordon’s Cans 6 pack and get 1 Regular Ticket or Purchase any Gordon’s London Dry Gin 1L OR Gordon’s Premium Pink 1L and get 1 VIP Ticket

    Immerse yourself in the carnival of street fashion pop-ups, offering tantalizing merchandise that will transform your style game. Expect memories that’ll last a lifetime with such epic performances on the horizon. Just remember, magic happens when you drink responsibly.

  • Kenyan Government Signs MoU with Huawei to Promote Digital Transformation

    Kenyan Government Signs MoU with Huawei to Promote Digital Transformation

    The Kenya Government has entered into an agreement with Huawei Technologies that will see the two parties collaborate on the development of the country’s ICT infrastructure, promote the digitization of various sectors of the country, such as transportation, e-government, education, digital energy among others. Additionally, the two parties agreed to continue to cultivate digital skills and knowledge sharing to enable Kenya youth to be job ready.

    Speaking when he visited Huawei’s Beijing Executive Briefing Center (EBC), Kenya’s President William Ruto stated that, “We recognise the urgent need to develop a green, digital and creative economy in Kenya. In this regard, we therefore regard Huawei as a reliable partner of Kenya in terms of improving digital infrastructure, with its pioneering strength in ICT technologies driven by its heavy R&D investment. We look forward to strengthening the partnership for more positive outcomes of ICT infrastructure construction and industrial digitalization.”

    Chairman of Huawei’s Board of Directors, Mr. Liang Hua said Huawei is ready to work more closely with the Kenyan government to grow the digital and creative economy in the country.

    “Huawei hopes to facilitate Kenya’s development in fields like the ICT connectivity infrastructure, national data center and solar power generation. We will continue to dedicate ourselves to improving young Kenyans’ digital skills and literacy. Huawei values openness, collaboration and win-win results. We will enhance investment in the R&D of cutting-edge technologies across connectivity, computing and digital power. Our team will work with local customers and partners to make greater contributions to the digital economy in Kenya.”

    Since starting operations in Kenya in 2003, Huawei has been dedicated to boosting ICT infrastructure, providing digital services, and promoting digital skills in the country. The global ICT leader supported the construction of computing power infrastructure including National Optical Fiber Backbone Infrastructure (NOFBI) and the KONZA National Data Center. Huawei also supported Safaricom in launching the first 5G network in East Africa in 2021. Besides, Huawei has long been a firm supporter of Kenya’s inclusive development and digital skills agenda, contributing to Kenya’s inclusive finance innovations such as the M-PESA and the Hustler-fund, and has provided digital skills training to about 10,000 Kenyan people in the past year.

  • Family Bank Receives Shareholders’ Approval to Offer 800 Million New Shares To Strengthen Capital Base

    Family Bank Receives Shareholders’ Approval to Offer 800 Million New Shares To Strengthen Capital Base

     Family Bank has today received formal approval from shareholders to offer up to 800 million new shares through a rights issue. This will increase the Bank’s issued authorized Ordinary shares from the current 1,500,000,000 Ordinary Shares to 2,300,000,000 Ordinary Shares.

    Through this increase in Ordinary shares, the Bank targets to raise up to KES 10 billion in the medium term. The capital raise will be achieved through a mix of a rights issue and from new shareholders via a private placement.  The funds raised through the rights issues will go towards strengthening the bank’s capital base, for local and regional growth plans, driving investments in IT infrastructure and new product initiatives and supporting onward lending activities.

    “Through this capital raise, we are positioning the Bank for the next phase of growth which will position the bank as a choice bank for our existing and potential clients through customer-first service delivery not only in Kenya but also in the region,” added Rebecca Mbithi.

    The rights issue opens on 19th October 2023 and closes on 30th November 2023.