NCBA Group #ticker:NCBA chairman James Ndegwa and his brother Andrew Ndegwa each own a 4.16 percent personal stake in the bank with a market value of Sh1.6 billion apiece.
The Nairobi Securities Exchange-listed firm has made the disclosure through its first annual report based on the requirement that directors of publicly-traded firms reveal their ownership.
The two are non-executive directors of NCBA, the product of the merger of the NIC Group and CBA Group in September last year.
The brothers held shares in the two banks and the merger has consolidated their ownership in NCBA, which is now ranked third in the country by assets.
James previously held 52.5 million shares of NIC and 3.1 million shares of CBA. Andrew held 52.5 million shares of NIC and 3.4 million shares of CBA.
The CBA shares were subsequently multiplied 2.7 times and transferred to the merged bank.
The merger was done through a share swap, with former CBA shareholders ending up with a combined 53 percent equity in the merged entity while former NIC investors were allotted a 47 percent stake.
On completion of the transaction, James’ holdings had consolidated into 61.3 million shares equivalent to a 4.09 percent stake in NCBA while Andrew’s stood at 62.2 million shares (4.16 percent).
The larger Ndegwa family has an estimated 11.6 percent stake in NCBA with a market value of Sh4.6 billion based on the lender’s share price of Sh26.4 on Friday.
The brothers are among a group of top investors with banking stakes valued at more than Sh1 billion each. Others include Equity Group’s #ticker:EQTY chief executive James Mwangi who holds a 4.38 percent stake in the lender worth Sh5.4 billion.
Co-operative Bank #ticker:COOP chief executive Gideon Muriuki has a two percent stake in the lender valued at Sh1.4 billion.
It is not clear when the Ndegwa brothers acquired shares in the former CBA but the disclosures ahead of the merger shows that Kenyans became shareholders in the lender after buying out Bank of America between 1984 and 1992.
The Ndegwa family, through their investment vehicle, First Chartered Securities, also acquired their initial 12 percent stake in NIC between 1993 and 1996 by buying shares from the lender’s previous owner, Barclays Bank of Kenya.
The family, one of wealthiest in Kenya, later acquired more shares in NIC to reach a 25 percent stake by the time the lender merged with CBA.
The brothers are the sons of late Philip Ndegwa, a former CBK governor, who died in 1996.
The two lenders merged to benefit from economies of scale in a competitive industry where big banks take most of the profits from diversified operations including retail and corporate banking.
NCBA is now ranked third with assets of Sh509.5 billion in the first quarter ended March, trailing Equity (Sh693.2 billion) and KCB #ticker:KCB (Sh947 billion).
Co-op Bank, which is now ranked fourth after the rise of NCBA, had Sh470.4 billion in assets. Co-op Bank, however, retains its rank as the third most profitable lender with net earnings of Sh3.5 billion or more than twice NCBA’s Sh1.6 billion in the review period.
“In the next year we will concentrate a lot of our efforts in consolidating our business, ensuring the best of our twin heritage is rolled out smoothly across the region and even internally,” James Ndegwa wrote in the NCBA report.
“We anticipate receiving the remaining regulatory approvals in Uganda and Tanzania to operate as NCBA soon and these will allow us to consolidate our business in the region.”
World Bank pushes G-20 to extend debt relief to 2021
World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.
“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.
He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.
The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.
People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.
For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.
Debt burdens, already unsustainable for many countries, are rising to crisis levels.
“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.
Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans
The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.
“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”
According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.
Tighter Reins on Platforms for Mobile Loans
The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.
Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.
Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.
Scope Markets Kenya customers to have instant access to global financial markets
NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options.
This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.
The Scope Markets app offers clients over 500 investment opportunities across global financial markets.
The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.
The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).
The platform also offers an enhanced client interface including catering for those who trade at night.
The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour; Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).
The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.
Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”
He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.