Hacktivists target Central Bank of Kenya Website

Hackers target Central Bank of Kenya Website

Over the weekend, hacktivists conducted distributed denial-of-service DDoS attacks on the websites of four International banks including the Central Bank of Kenya (CBK).

The other banks include National Bank of Panama, Central Bank of Bosnia and Herzegovina and Maldives Monetary Authority.

According to Hacknews, hacktivists only referred to as Anonymous and Ghost Squad began conducting cyber attacks on banking websites worldwide over a week ago.

This particular hack is said to have been executed by Ghost Squad on Saturday morning. All of the sites are now back online, an event that might go unnoticed to most people.

CBK Website Hacked

Screenshot showing all four banks were down after the attack

The National Bank of Panama was of special interest to the hackers due to the recently leaked documents known as Panama Papers.

The operation by hacktivists is against banks and financial institutions around the world. The hacktivists believe banks are controlling the world’s economy, promoting and hiding corruption at governmental and private level.

Barclays sells 103.6 MILLION Barclays Africa ordinary shares

Barclays has sold 103,592,491 ordinary shares in the capital of Barclays Africa (representing 12.2% of Barclays Africa’s issued share capital) at a price of ZAR 126 per share through an accelerated bookbuild placing (the “Placing”), raising aggregate gross sale proceeds of approximately ZAR 13,053 million (£603 million)1 . Upon settlement, the Placing is expected to result in a pro forma increase of approximately 10 basis points on the 31 March 2016 CET1 ratio.

Barclays Bank PLC, acting through its investment bank (“Barclays Investment Bank”) is acting as sole global coordinator and joint bookrunner, together with Citigroup Global Markets Limited, J.P. Morgan Securities plc (which conducts its UK investment banking activities as J.P. Morgan Cazenove) and UBS Limited (the “Managers”) who, together with Barclays Investment Bank, are acting as joint bookrunners on the Placing (together, the “Joint Bookrunners”).

Following completion of the Placing, Barclays will hold 424.7 million ordinary shares in the capital of Barclays Africa, representing approximately 50.1% of Barclays Africa’s issued share capital.

All of the remaining ordinary shares in Barclays Africa held by Barclays PLC or its subsidiaries (excluding Barclays Africa and its subsidiaries) not sold in the Placing will be subject to a 90 day lock-up restriction from settlement. During this period, the lock-up restriction may be waived with the consent of the Managers (such consent not to be unreasonably withheld or delayed).

The proceeds of the Placing are payable in cash on usual settlement terms, and settlement of the Placing is expected to occur on a T+5 basis on 12 May 2016, subject to the satisfaction or waiver of certain customary conditions.

1 Exchange Rate ZARGBP 0.0462 as of 4 May 2016 (source: Bloomberg)”

Pursuant to the above and in accordance with section 122 (3)(b) of the Companies Act and section 3.83(b) of the Listings Requirements of the JSE Limited, Barclays Africa shareholders are advised that Barclays Africa has received formal notification from Barclays PLC that its total interest in Barclays Africa has been reduced from 62.3% to 50.1%.

As required in terms of Section 122 of the Companies Act, the required notice will be filed with the Takeover Regulation Panel.

World’s top business schools visit Nairobi

World’s top business schools visit Nairobi

Nairobi will be host to the World’s top business schools as they seek to attract MBA applicants on Monday, 9th May 2016.

Dubbed the QS World MBA Tour, the event will happen on Monday, 9th May 2016 at the Southern Sun Mayfair, Nairobi.

Some of the prestigious business schools expected to attend the event include HEC Paris, Rotterdam, GIBS, Wits, Cape Town, Stellenbosch, IE, Manchester and Henley.

For those looking for an international MBA, the QS World MBA Tour will be the place to be. Registration is free from this link.

The QS World MBA Tour is the world’s largest series of recruitment and information fairs which provides prospective MBA, Master and PhD candidates with the opportunity to experience free expert seminars, meet face-to-face with admissions directors and obtain all the information about the different programmes, fees, admissions requirements, scholarship, financial aid, GMAT/GRE test and much more.

Barclays Africa Appoints New Tanzanian Head

Abdi-Mohamed-Barclays-Bank-of-Tanzania

Barclays Bank of Tanzania has today announced the appointment of Abdi Mohamed as the new Managing Director, effective April 2016.

Mr. Mohamed will be taking over from Kihara Maina, who after serving in the role since 2009 will now be pursuing other opportunities outside the Barclays Africa Group.

Until now, Mr. Mohamed has been Chief Operating Officer at Barclays Bank Kenya. He has a long standing career history with Barclays starting in1994 where he has held progressively senior roles in Kenya, Zambia, and the United Kingdom.

Barclays Africa Regional Management Chief Executive Mizinga Melu said: “Abdi brings to the role wide-ranging experience across markets and product areas including retail, corporate banking and operations. His career progression within the Barclays Group is a true success story and is testament to our belief in advancing talented employees.”

Barclays Bank Tanzania Chairman Dr. Ramadhani K. Dau commented: “We welcome Abdi to Barclays Tanzania and are confident that his breadth of financial services expertise will help us in executing our growth strategy in the market. We take this opportunity to thank Kihara who has played a critical role in leading the business in Tanzania during the last six years which has seen us register a number of milestones in the market, including the roll-out of leading digital platforms such as Strategic Hello Money (SHM), BIR, BARX and pioneering loan products.”

Commenting on his appointment, Mr. Mohamed said: “I am excited by the opportunity to lead the Barclays Tanzania team. We see continuedgrowth potential in the Tanzanian economy and my focus will be to ensure that Barclays is an active participant in enabling and supporting this growth. We will work with all the relevant stakeholders to position BBT as the Go To bank for our customers and an exciting place to work for colleagues.”

Barclays Bank of Kenya Managing Director Jeremy Awori said Abdi’scareer progression within the Barclays Group is a true success story and testament to the bank’s belief in advancing the careers of talented colleagues.

“We are greatly honoured to have worked with him here in Kenya. Abdi espouses the true meaning of the values of Barclays and his diligence has seen him forge an admirable career. I congratulate him as he takes on his new role,” Mr Awori said.

Mr. Mohamed holds a Masters in Business Administration (MBA) – International from Edith Cowan University in Perth Australia.

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New Body to Handle Business Registration in Kenya

New Body to Handle Business Registration in Kenya

The office of the Attorney General has formed a new body that will be tasked with the registration of businesses in Kenya.

Attorney-General Githu Muigai published a list of directors to run the Business Registration Service Board on Monday stripping the State Law Office of the powers to register companies.

Ms Carol Musyoka has been appointed to head the board and will work with Michael Mugasa, Shallah Sheikh, Irene Wamakau and Ben Gaithuma as directors for three years.

The Attorney-General was mandated by the Business Registration Service Act, which removes the function of business registration from The State Law office, that is set to take effect.

The act was signed by President Uhuru Kenyatta in 2015 alongside six new legislations set to transform Kenya’s business landscape and thrust the country’s competitiveness.

Entrepreneurs should now expect a fastracked business registration process. Low foreign investment has previously been blamed on the State Law Office’s slow process that was marred by constant delays.

Services such as incorporation of companies, registration of business names and partnerships will be devolved to promote local business ideas/legal entities, cut the costs of registration and operations which are currently being offered in Nairobi only.

For better service delivery, the independent body expects to have an office in Nairobi as well branches across the country.

Chase Bank to reopen under KCB Management

Chase Bank to reopen under KCB Management

Following the receivership of Chase Bank Kenya over financial trouble, the Central Bank of Kenya (CBK) has announced that the bank will reopen on April 27 under the Kenya Commercial Bank’s (KCB) management.

Customers will have immediate access to their deposits up to a maximum of Sh1 million, CBK says.

167,290 accounts, equivalent to 97 per cent of accounts or 6 per cent of total deposits, will have their funds available in full.

The deal with Kenya Deposit Insurance Corporation, signed at 8.30am on Wednesday, will see the bank’s 62 branches reopened by next Wednesday, April 27  2016.

The CBK had received nine proposals, including six from local investors, two foreign and one from existing Chase Bank shareholders.  The bank’s shareholders had proposed to inject more cash for its revival.

KCB was chosen for their offer to re-open the bank immediately as well as their credibility and cash to support operations. The reopening will be followed by their eventual acquisition of a majority stake in the bank.

Other announcements from the acquisition are as follows

  • Deposits in excess of Ksh.1 million will be made available in a structured manner, details of which will be released in the near future.
  • The moratorium on payments to creditors and lenders remains in place. However, the Manager will correspond with them in the near future with details of how these would be dealt with.
  • Ongoing efforts to collateralize existing loans and recover funds that were obtained irregularly or are non-performing will be stepped up. Existing borrowers are required to continue servicing their facilities.
  • CBK and KCB will ensure that Chase Bank Ltd (In Receivership) will have adequate liquidity for its operations.
  • KCB will make available a management team that will assist in the receivership.

Soho launches Serviced Apartments in Kilimani, Nairobi

SOHO Serviced Apartments in Kiliman, Nairobi

SOHO Serviced Apartments has unveiled an ultra modern 11 storied serviced hotel apartment project in Kilimani, at a time when Nairobi has been listed as among the global cities set to enjoy a surge in short let accommodation.

Located along Kirichwa Road, the apartments offer luxurious 1 bedroom, 2 bedroom duplexes and 3 bedroom duplex targeting expatriate guests and foreign corporates working in Nairobi for a 3 – 12 month period.
“The location of SOHO Serviced Apartments is very convenient as we tap into the international organisations and embassies currently relocating their offices to this area, as well as its environs, such as Westlands and Upper Hill,” said Mr Rajpal Sahib, CEO of Realto Group Ltd.

Globally, a hybrid of hotel room and rental apartment, the number of serviced apartments in the world has grown by 80 per cent since 2008 to about 750,000, according to a report by The Apartment Service, a global provider of short term accommodation.

However, demand for the accommodation has grown by far more than supply in Nairobi and other key Kenyan cities.

Nairobi is currently the leading location in demand with searches for short let accommodation standing at 29.61 per cent, ahead of Mombasa at 14.70 per cent, and followed closely by Naivasha at 12.71 per cent. This is despite the fact that the city takes the crown for having the highest number of hotel rooms, with an estimated 58,071 rooms.

Part of the driver for demand for short let serviced apartments, instead of hotel rooms, is the chance they offer to set up a temporary ‘home’ complete with hotel like amenities.

According to Knight Frank, multinationals have also become more cost conscious when looking for short term rentals and are keen on cutting the expenses, hence are now showing an inclination towards serviced apartments rather than hotels on the basis of cost too.

“The hotel apartments provide a cheaper and homely option with most of them being in close proximity to all the recreational facilities that a modern lifestyle requires,” said Mr Rajpal Sahib.

According to research by the Apartment Service, a studio apartment in Nairobi costs about $64 per night, a big contrast to the walk in rate of an international-standard hotel room in Nairobi that would cost as much as g $220 – $350 a night.

This, coupled with the fact that internationally, serviced apartments in Africa cost, on average, less than anywhere else in the world, make such apartments an increasingly sought out option, with now 84.62 per cent of companies using apartments for business travel in Africa.

However, even as the demand for hotel apartments has skyrocketed in Nairobi, the rest of the country is even more severely under-served. In Nairobi for instance, the Kilimani area which has set itself apart as the most cosmopolitan of suburbs, boasts of high end apartments such as Yaya Towers Serviced Apartments, Palacina, Woodmere Serviced Apartments among many others.

In such well served areas, the serviced apartments are frequently booked out. “But with Kenyan tourism ranking 5th in Sub-Saharan Africa, investing in hotel apartments all over Kenya will provide variety not only to our international clientele, but also to our Kenyan tourists, giving them the option to have a homely visit while in Kenya,” said Mr Rajpal Sahib.

The demand for serviced apartments is also being pushed upwards as Kenya hosts an increasing number of trade summits and multinational dignitaries.

The SOHO hotel apartments, now under construction, will be completed by the end of 2017, and offer additional amenities that include a restaurant, gym, sauna and spa, poolside bar, tuck shop and a conference room sealing SOHO’s place as one of the first in a new wave of short term accommodation investments in Kenya.

Mobius II: A Kenya made car

Mobius is Kenya made car by Mobius Motors that retails at Kes 950, 000. The recent model, the Mobius II delivers 12 kms to the litre on highway driving and 10 kms to the litre in city driving.

The company designs, manufactures and sells durable, affordable vehicles for Africa’s mass market. The vehicle, that is designed for Africa’s rough terrain and off-road driving, is assembled by the Kenya Vehicle Manufacturers (KVM).

Business people would find it very useful to operate a range of services such as public transport, goods delivery or mobile medical care.

While most new off-road driving models are likely to fetch close to Kes 2 Million at the showroom, the Mobius II comes at an affordable price of Kes 950, 000.

Read: TRADECARVIEW INTRODUCES IMPORT DUTY FINANCE IN KENYA

It’s affordable but consumers in Kenya will probably miss out on extras such as air conditioning, power steering and other internal fixtures that the car manufactures have foregone, probably to keep the price low.

Mobius Motors is now taking subscriptions to place pre-orders for Mobius Two production units on their website. Once they receive a completed subscription, a member of the Mobius Sales team sends the customer a pre-order form including the bank details for your deposit payment. The deposit on a Mobius Two production unit is 50,000 KES ($500), against a total vehicle price of 950,000 KES (excluding VAT).

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Banks & Financial Institutions under Liquidation in Kenya

Financial institutions currently under liquidation in Kenya

Seventeen (17) financial institutions are currently under liquidation in Kenya.

Liquidation is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations as and when they come due. The company’s operations are brought to an end, and its assets are divided up among creditors and shareholders.

The following banks are currently under liquidation in Kenya, some of which payments to customers and shareholders is underway through the Kenya Deposit Insurance Corporation.

Institution Name Liquidation Date
1. Post Bank Credit Ltd. 20th May 1993
2.  Meridien BIAO Ltd. 15th April 1996
3.  Ari Bank Corporation Ltd. 5th December 1997
4.  Reliance Bank Ltd. 12th September 2000
5.  Trade Bank Ltd. 18th August 1993
6. Thabiti Finance Co. Ltd. 19th December 1994
7. Fortune Finance Co. Ltd.  14th September 2000
8. Daima Bank Ltd. 13th June 2005
9. Dubai Bank Kenya Ltd. 24th August 2015
10.  Prudential Building Society  18th January 2005
11. Middle African Finance Ltd. 20th August 1993
12. Pan African Bank Ltd. 18th August 1994
13. Pan African Credit & Finance Ltd. 18th August 1994
14. Kenya Finance Bank Ltd. 29th October 1996
15. Prudential Bank Ltd. 5th May 2000
16. Trust Bank Ltd. 15th August 2001
17. Euro Bank Ltd. 21st February 2003

 

Stakeholders can follow up with the Kenya Deposit Insurance Corporation which is located at 1st Floor, CBK Pension House, Harambee Avenue, Nairobi, Kenya. Their website is http://www.depositinsurance.go.ke/.

Those with questions can call the KDIC on Tel. No. 0770 887992. Customers can also contact KDIC on email: kdiccommunications@depositinsurance.go.ke for more information.

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What is a Receivership?

According to PWC, a Receivership is a remedy available to secured creditors to recover amounts outstanding under a secured loan in the event the company defaults on its loan payments. A Receiver may also be appointed in a shareholder dispute to complete a project, liquidate assets or sell a business.

In Kenya, the Central Bank of Kenya (CBK) has previously put over 3 banks under the Kenya Deposit Insurance Corporation (KDIC) receivership which include the recently troubled Imperial Bank, Dubai Bank and now recently Chase Bank.

Typically, the process begins with the appointment of a Receiver either by the secured creditor under a security agreement (“Privately Appointed Receivership”) or by the Court on behalf of a secured creditor (“Court Appointed Receivership”). Only a licensed Trustee in Bankruptcy can act as a Receiver.

Privately Appointed Receivers will generally only act on behalf of the secured creditor that appointed them and will realize on the assets specifically covered by the loan agreement. Court Appointed Receivers however, are officers of the Court and act on behalf of all creditors. The powers and rights of Court Appointed Receivers are included in the Court order that appointed them.

The Receiver is appointed to take possession of and sell or liquidate the assets secured by the security agreement in order to repay the outstanding debt.

In a Receivership, a secured creditor or the Court may also appoint a Receiver-Manager to operate and manage the business until it is sold as a going concern.

The Receiver’s duties also include notifying creditors of the receivership and regular reporting to the Official Receiver (a representative of the Office of the Superintendent of Bankruptcy) and/or the Court on the status of the receivership.

Receivership and bankruptcy are not mutually exclusive, they can occur at the same time or a receivership can occur without a company being bankrupt. The same firm may act as Trustee in Bankruptcy and Receiver, but often different firms are appointed to these roles.

The Receiver is tasked with selling the assets secured under the security agreement and after deducting the receivership’s fees and expenses, distributing the proceeds from the sale to creditors on a priority basis. In situations where the proceeds from the sale of assets are not sufficient to fully repay the liabilities of the secured creditor, no realizations will be available for distribution to the unsecured creditors.