KENYA

CBK in talks with lenders to alter loan cost models

Commercial banks are in talks with the Central Bank of Kenya (CBK) to overhaul their loan pricing models and develop a common base lending rate amid concerns that they are not cutting interest rates in line with the decline in the Central Bank Rate (CBR). The lenders have sent proposals to the CBK governor Kamau Thugge, arguing that the current models are sticky and have made it difficult for them to adjust rates downwards as soon as the regulator lowers CBR. Stanbic Bank Kenya and South Sudan CEO Joshua Oigara, who sits on the Kenya Bankers Association (KBA) governing council, said the industry is rooting for a return of a common base rate for the industry in what will mirror the Kenya Bankers Reference Rate (KBRR) that was phased out in 2016. “In terms of risk-based pricing, it is more of a difficult question. As an industry, we are all disagreeing with the Central Bank of Kenya around risk-based pricing, but remember, we are the ones who created the models and got them approved,” said Mr Cigara.

(The East African)

TANZANIA

BoT sets an ambitious 85 per cent digital financial access target by 2028

The Governor of the Bank of Tanzania (BoT), Emmanuel Tutuba, announced that the government aims to ensure 85% of Tanzanians access digital financial services by 2028 through collaboration with key stakeholders to enhance innovation, affordability, and security. Speaking at the 9th Gilman Rutihinda Memorial Lecture, he highlighted lessons from India’s digital payment systems to improve financial inclusion and efficiency. The Tanzania Instant Payment System (TIPs) will be integrated with mobile money services and 44 banks to lower costs and enhance digital transactions. Finance Minister Dr. Mwigulu Nchemba reaffirmed the government’s commitment to a digital economy by implementing financial sector reforms, reducing transaction costs, and improving security. He emphasised expanding ICT broadband to improve access, particularly in rural areas, and promoting fintech innovation. 

(The Citizen)

UGANDA

USE explores listing on the NASDAQ-100 Index

The Uganda Securities Exchange (USE) is considering listing the NASDAQ-100 Index—a move that could link local investors to some of the world’s biggest technology and innovation-driven companies. Goldkach Uganda, an investment firm dedicated to bridging African investors with global financial markets, is at the helm of this push. The fund manager is lobbying for the NASDAQ-100 Index to be available on the USE by the end of the year.  If approved, it would need to be structured as an Exchange Traded Fund (ETF), a fund that mirrors the index’s performance and allows investors to trade it like a stock on the exchange.

(Monitor)

RWANDA

I&M Bank Rwanda registers 74% increase in profit 

I&M Bank Pic recorded a 74 per cent increase in profit after tax to Rwf18.6 billion in 2024, attributed to the strategic deployment of assets in high-yielding opportunities. According to the bank’s performance statement, assets reached Rwf817.9 billion at an increase of 20 per cent and due to enhanced efficiency, it achieved a Return on Assets of 2.54 per cent.  Benjamin Mutimura, CEO of I&M Bank Rwanda, said, “Our performance in 2024 reflects the success of the iMara 3.0 strategy. We have aligned with Rwanda’s economic priorities while focusing on customer delight.”

(The New Times)

SOMALIA

Somalia’s reform plan unlocks $10.7m more funding from EU

The European Union (EU) has announced substantial financial support for Somalia, amounting to over $10.7 million, following steps that Mogadishu is taking to implement key economic and political reforms to boost governance and confidence in the global financial system. The funding for budgetary support is tied to progress in key reform areas, reflecting the EU’s commitment to fostering sustainable development and governance in Somalia. The announcement was made during high-level talks between EU representatives and Somali Finance Minister Bini Egeh on March 4th, which included discussions on key topics such as customs reforms, education sector reform, external audits, and defence spending. Through its X handle, the EU said it plans new budget support for 2026-2027, signalling a continued partnership with Somalia in its reform efforts. “The EU is set to disburse €10 million ($10.7 million) to Somalia in budget support and plans for a new budget support operation for 2026-2027, it said.

(The East African)