Category: BUSINESS

Investment firm, TransCentury Limited (TCL), has accused Equity Bank of employing predatory tactics to place it under receivership over a Sh4.8 billion debt.

TransCentury, in a suit before the High Court in Nairobi, has accused the bank of swooping on the investment firm while being privy to advanced negotiations on means and ways of settling the debt.

TCL says it was taken by surprise by Equity Bank’s decision to appoint Receiver Managers even as the parties looked forward to concluding the settlement agreement.

Last week, TransCentury got a reprieve when it obtained court orders stopping Equity’s receivership bid and accused the bank of acting in bad faith and attempting to take over its operations without due process of the law. TransCentury reckons it was at an advanced stage of working with Equity on modalities of settling the debt when the lender ambushed it with the appointment of receiver managers despite availability of cash to pay the debt.

The debt dispute originated from facilities that both TransCentury and its subsidiary East Africa Cables obtained from the lender.

Secondary to the dispute is TCL’s decision to keep the Sh800 million raised from a recently concluded rights issue with Cooperative Bank.

Equity Bank insists that the decision to keep the money at Coop Bank and not with them, is a clear sign that owners of TransCentury are quietly divesting the funds using a different account.

“I verily believe that directors of TransCentury have started divesting the funds received from the recently concluded rights issue by picking Coop Bank as the receiving account to the detriment of Equity Bank and other creditors,” Equity Bank Legal Manager Kariuki King’ori said in court papers.

But the investment firm argues it had on June 9, 2023, informed Equity that it was awaiting approval from Fair Competition Commission (FCC) of Tanzania before accessing the funds raised from the rights issue and it planned to use part of the money to repay the debt.

TransCentury insists Equity was aware it received FCC approval on June 14, 2023, making the the Sh828 million Rights Issue funds available for use in settling the debt but the bank still appointed the receivers.

TransCentury raised over Sh830 million in the right issue and deposited the money at Co-operative Bank.

On June 19, 2023, Equity Bank announced that it had appointed Muriu Thoiti and George Weru from PriceWaterhouseCoopers (PWC) as joint administrators of both TransCentury and its subsidiary, East African Cables, in a move aimed at helping recover the debt.

Two days later, TransCentury moved to court under a certificate of urgency and obtained the order suspending a decision by the bank to appoint two receiver managers to take over the company until the dispute is heard and determined.

The investment firm has listed Equity Bank Kenya Limited, George Weru and Muniu Thoiti as respondents.

Trans Century through its lawyer, Philip Nyachoti told the court that the forceful takeover bid had prejudiced and destabilised the company’s operations even after discussing and agreeing with the bank on a road map for repayment of the loan.

“TCL informed the bank that it is in the final stages of finalising rights issues to the tune of Sh2 billion for purposes of injecting capital into the business and have enough money to offset the outstanding loan balance but they declined,” said Nyachoti.

“That as such, parties have been in extensive negotiations with a view of reconciling Equity’s account and determining the actual outstanding amount with the last correspondence being on June 12, 2023 with the bank requesting for more information about our holding company hence the appointment is premature and in bad faith,” TransCentury says in court papers.

East Africa Cables obtained a Sh1.7 billion loan from Equity between January 21, 2021 and March 10, 2021 and has since paid Sh617,076,299.

Xiaomi Kenya is celebrating its Safari Rally campaign winners by showcasing their content from this weekend’s World Rally Championship (WRC) Safari Rally competition in Naivasha; one of the motorsport’s most iconic and challenging events in the circuit. Xiaomi Kenya took three lucky winners to this year’s rally weekend in Naivasha to experience the adventure and spirit of the sport; inspiring them to live vivid.

The campaign kicked off at the beginning of the month where customers who purchased any Xiaomi device at the MI retail stores was encouraged to share pictures of their purchase to win exciting prizes such as a Redmi A2+, Redmi Note 12 or a ticket to the rally weekend courtesy of Xiaomi. Building on to the campaign with the rally hype, Xiaomi encouraged fans to share creative photos representing the rally theme. Participants were encouraged to showcase unique angles, speed and other rally-related elements. The top two winners were awarded rally tickets, giving them an opportunity to experience the Safari Rally.

The three winners got a chance to experience the thrill of the rally firsthand – the iconic terrain, picturesque sceneries and the adrenaline fueled race as the drivers maneuvered the rocky & rutted tracks adding to the adventure for spectators. At the rally, the winners captured their experience using their Redmi Note 12 Pro’s 200MP cameras. This camera redefines photography allowing users to capture every tiny detail with high resolution. The device not only boasts of amazing camera hardware, but also cutting-edge software such as Xiaomi AI Image Solution that allows for enhanced image quality with computational photography and Xiaomi ProCut, which allows for effortless photo composition with AI assistance, offering users more options for editing and post production.

With the Redmi Note 12 Pro amazing charging speed, 120W HyperCharge that guarantees zero to full charge in less in 20 minutes and its 5,000mAh long-lasting battery built for extended usage even under heavy content consumption – ensured that the Xiaomi Fans never missed a moment at the Rally. Xiaomi is now celebrating the fans by showcasing their unforgettable rally experience on social media.

The spirit of the Redmi Note 12 Series is to inspire people to Live Vivid. With its incredible camera, users can vividly immortalize every moment, its smooth and vivid display creates an amazing user experience and its large battery and fast charging ensures Xiaomi fans are always connected.

The organisers of leading healthcare exhibitions like Arab Health, FIME, Africa Health, Medlab Middle East- Informa Markets have announced the commencement of Medic East Africa and Medlab East Africa, taking place at KICC in Nairobi, Kenya, from 11-13 September 2023.

With the theme of “Redefining healthcare delivery in East Africa”, the event will be Held under the patronage of the Ministry of Health Kenya and will strive to bring together the international and regional healthcare communities to improve healthcare delivery for the people and transform the future of healthcare in East Africa.

The event aims to attract over 5,000 healthcare and laboratory professional visits from around the world, making it the biggest healthcare exhibition in the East African region. The event will also showcase over 150 leading global brands from over 20 countries like Abbott, Snibe Diagnostics, Crown Healthcare, and more. Confirmed countries participating at the event include France, Greece, Italy, Romania, Cyprus, Switzerland, Türkiye, Kenya, China, India, United Arab Emirates and United States.

The event will also include participation of key regional healthcare organisations including the Kenyan Healthcare Federation, the Association of Clinical Pathologists, the Surgical Society, the Medical Association and the National Public Health Institute.

In parallel to the exhibition, the free-to-attend congress will feature the Healthcare Summit 2.0 conference and the Laboratory educational sessions conference tracks will also take place throughout the 3-day event to offer a collaborative environment for healthcare and laboratory professionals, policymakers, researchers, and technology experts to discuss challenges and opportunities in achieving better health systems. The diverse line-up of regional and international experts will share cutting-edge insights and best practices on Healthcare Excellence, Public Health, and Equity to address public and private healthcare challenges in the region.

Some of the featured speakers at the event include Adama Thiam, Head of Emergency Operations Support and Logistics – WHO, Dr Muthoni Karanja, HIV Prevention Specialist – Department of Defence Kenya, Gerald Macharia, Chairman – KNPHI and Aaron K Mulaki Head of Strategic Partnerships and Engagement, African Constituency Bureau for the Global Fund.

Commenting on the announcement, Medic East Africa and Medlab East Africa Exhibition Director Tom Coleman said, “With the growth of the healthcare and laboratory industries in East Africa, Medic East Africa and Medlab East Africa, will showcase the latest innovations and technologies driving the industry forward in the region, as well as provide the ultimate platform for meeting colleagues and discussing the latest trends impacting their respective industries.”

The convention will be a trading and business-sharing platform for industry professionals to promote interaction and trade amongst C-level management from hospitals, leading manufacturers, key government professionals, investors, dealers, and distributors. Visitors will be able to source from 9 dedicated product sectors, including medical equipment and devices, imaging and diagnostics, disposables and consumer goods, healthcare and general services, medical laboratory, and wellness and prevention.

Medic East Africa and Medlab East Africa 2023 is free to attend for healthcare and laboratory professionals and investors across the East African region with a keen interest in healthcare delivery.

KCB through its social investment arm, KCB Foundation has today announced an ambitious programme that will see it extend financial support to learning institutions to transition to clean energy cooking solutions.

Under this arrangement, KCB Foundation will provide a partial grant of between 10% to 30% of the cost of buying and installing Liquified Petroleum Gas (LPG) equipment for qualified learning institutions. The rest of the funding will be provided through pre-arranged financing solutions and will be available to all secondary schools, both public and private learning institutions countrywide.

The move is in response to the revelation that a large portion of fuel demand comes from Kenyan schools where about 90 percent of public schools use firewood for cooking and pay up to $20,000 per year for the wood, which makes cooking fuel one of the biggest expenses in schools’ meal budgets.

Making the announcement, the Head of KCB Foundation, Caroline Wanjeri noted that the roll-out of the clean cooking programme is a testament to the bank’s collective efforts to support Africa’s drive to achieve SDG 7 with particular emphasis on universal access to modern energy services for all. Additionally, it will enable it to scale up its efforts to support the adoption of clean and modern cooking solutions which uses less fuel, limit smoke emissions, and reduces the amount of greenhouse gases emitted to the environment.

“Schools have been identified as large contributors to inefficient cooking as they prepare high volumes of meals by consuming over 685,000 tons of firewood and charcoal per year. This has drastic consequences on the environment, economic development, and public health in a world where close to 2.6 billion people still lack access to clean cooking solutions. We are therefore keen to position schools as the cornerstone of Kenya’s sustainable future powered by affordable, reliable, clean, and modern energy distributed to all,” Wanjeri said.

To date, the bank has disbursed loans worth KShs. 60 million to 30 schools across the country with KCB Foundation giving KShs. 30 million in the form of grants during the pilot phase.

“KCB has been at the forefront of mobilizing the financial sector’s climate action and supporting carbon-positive projects in society. By supporting the transition to cleaner fuels like LPG, we shall be enabling learning institutions to realize up to 40% savings in their cooking budget with better health and environmental outcomes, improved kitchen hygiene, and motivation of workers. It will also be an opportunity to build on our existing efforts to widen the range and reach of activities in support of a just energy transition that is partly spearheaded by our own greening programme dubbed “Linda Miti” which has seen us plant over 160,000 trees in 943 schools this year,” Wanjeri added.

Directline Assurance, once a prominent name in the insurance industry finds itself caught in a whirlwind of outstanding liability claims pushing the company to the edge of collapse.

Claims reports released by the regulator, Insurance Regulatory Authority (IRA) indicate that Directline recorded the highest number of outstanding liability claims throughout 2022.

The company recorded 22,074 , 21,295 , 20,402  and 19,116 liability claims outstanding in the 4^th ,3^rd 2^nd and 1^st Quarters respectively; This means that the company consistently recorded a significant increase in liability claims throughout the year leaving the company  grappling with the formidable task of managing a deluge of claims that threaten its financial stability.

Many, especially the policyholders have been left postulating that the company is chocking with liability claims and is on its death bed.

“These high numbers of outstanding liability claims at Directline is ironical since Directline is the most expensive especially in PSV premium charged and excess fees when reporting claims. Besides, the company has been straining, struggling and delaying to pay claims” ,stated an aggrieved client.

Customers who once relied on the insurer for their coverage are now leaving  in their numbers after being faced by the reality of the company’s inability to honor claims and provide the financial security promised. With mounting frustrations, policyholders are increasingly turning to alternative insurance providers, eroding Directline’s customer base and exacerbating the financial strain.

A collapse of the company would not only leave policyholders in a state of vulnerability but would also have far-reaching implications for the wider insurance industry.

CFAO Motors Kenya, and Stanbic Bank Kenya have today signed an agreement that will see customers get up to 100% financing, payable within 72 months, for any vehicle under the CFAO Motors portfolio.

Under the agreement, customers will access the vehicle asset financing at zero facility fees and receive a 60 and 90-day repayment holiday for passenger vehicles and school buses respectively. In addition, customers will receive competitive insurance terms facilitated by Stanbic Insurance Agency.

Speaking at the signing ceremony of the financing deal, CFAO Motors Kenya Deputy Managing Director, Joshua Anya said the company was well cognisant of the challenge many individuals and businesses face in their quest to purchase brand new reliable vehicles, and hence the importance of having a financial support partner.

“This partnership between CFAO Motors and Stanbic Bank will therefore go a long way in easing the financial load on the customer who wish to enjoy the benefits of buying brand new vehicles,” he said.

Speaking at the event, Stanbic Bank Kenya Head of Products, Nelly Waithaka said “Stanbic Bank is committed to continue leading the market with customer centric innovations that deliver our customers’ expectations by strengthening our Asset Financing offering”

CFAO Motors Kenya Limited recently combined operations with DT Dobie, offering customers the largest automotive models selection and service network countrywide. The new entity is now home to Toyota, Suzuki, Volkswagen, Mercedes Benz passenger vehicles, Yamaha motorbikes, and the Hino, Hyundai, Sinotruk and Mercedes Benz Actros trucks and buses.

Customers taking up this offer will be required to first visit the CFAO Motors showroom to choose the vehicle they wish to purchase, before receiving an invoice from CFAO Motors that they will present to Stanbic Bank for processing.