A. ABSA Kenya’s core capital on 30 June 2021 was Ksh 46.4B
B. ABSA Kenya’s loans to EABL as of 30 June 2021 were Ksh 18.8B
A/B= 40.6%
That’s a lot more than 25%. This is the question the reporter was asking.
10/ What's more interesting though is this:
The current EABL Chief Financial Officer - Risper Ohaga - worked for ABSA/Barclays prior to being appointed EABL’s CFO in 2018.
11/
The Stockbroker, arranger, placing agent, and receiving bank for the MTN are all part of Absa.
The chair of Absa Securities is @patriciaIthau who is a Non-Executive Director of Absa and has held previous roles at EABL.
ABSA and EABL seem tightly linked on executives.
12/ Btw, the current chairman of ABSA Charles Muchene is a former chairman of EABL.
13/ One would expect the IM to have all the relevant information but the IM issued on 7 Oct 2021 provides information from (unaudited?) accounts of period to 31 Dec 2020
EABL has released updated information in its Annual Report of Year ended 30 June 2021
The IM needs updating
14/ So whereas all seemed well with Loan/Core Capital on 31 Dec 2020, it is not the case on 30 Jun 2021.
Dec 2020 vs June 2021. The difference is this loan maturing July 2022 of Kshs 11B that Absa gave EABL.
Is this the loan that EABL is looking to retire with the MTN?
15/ This now begs a few questions:
1. Where is the regulator @cbkkenya in all this given this high exposure Absa seems to have to EABL?
2. Why didn’t CMA insist on an IM with the latest information since the EABL 20/21 FY results had already been published?
—The Transmission Master Plan (TMP) projects the need for an additional 9,600 km of transmission lines and a $5.2B investment by 2042 to support industrial growth and electrification.
—KETRACO is exploring Public-Private Partnerships to bridge the funding gap
2. Why PPPs?
—KETRACO projects have historically been financed through loans from development partners like the World Bank, AfDB, JICA, and Exim banks.
—The next set of funding from these partners is estimated to be available after the financial year 2028/2029.
—Total Assets: +17.7% to 3.5B
—Net Income: +8.5% to 235M
—PAT: +3.8% to 116M
—Dividend rate on deposits: 20%
—Interest rate on member deposits: 11%
2. Magereza DT Sacco:
—Total Assets: +12.7% to 7.9B
—Net Income: +33.4% to 606M
—PAT: +53.9% to 129M
—Dividend rate on share capital: 10%
—Interest rate on member deposits: 6%
10 Key Takeaways from the CBK Post-MPC Briefing by the Governor.
1. CBK is keen on the separation of Safaricom & M-Pesa:
"One of the factors that has been delaying this..is the tax liability which is fairly significant in the order of at least KES 75B & what to do with it"
2. There has been a sharp rise in remittances to Kenya this year:
"If one were to compare the first two months of 2024 (Jan & Feb 2024), we see remittances for those two months compared to the two months in 2023 have increased by more than 20%"
3. There was a slowdown in growth in credit to the private sector in Feb 2024 from 13.8% to 10.3%
"A certain amount of private sector loans is denominated in dollars & therefore, when the exchange rate appreciated the level of credit to the private sector did decline"
We selected the top #MwangoMemes from 2023 for you to enjoy!
1. The Kenya shilling closed 2023 at KES ~157 against the dollar.
Earlier in the year the President had promised that it would be trading at around 115 to 120 in a few months.
#MwangoMemes
@coldtusker @OchiengJasper @Brianmbunde @Bebi_16 @swabrah @KenyansNoContxt @Dicksonmagecha @MugambiNandi @alexmwanzo @InvAnalystKe 2. Kenya Power [ @KenyaPower] sought to enter the internet business.
It identified some 93 hotspots in Nairobi & Mombasa where it will connect with high-speed internet through 1,331.68 km of overhead fiber optic cables in phase 1 of its data business.
#MwangoMemes
3. There was a proposal to make Kenyans working abroad make mandatory contributions to a new Fund.
Every migrant worker would have to register as a member of the fund before departing the country.
1. Kenya's backlog of incomplete projects reaches KES 1.3 T, sparking calls for a halt on new government projects until existing ones are completed
#MwangoMemes
@MihrThakar @KenyansNoContxt @PesaWall @alexmwanzo @swabrah @NguliMT @MwangiMaina_ @Brianmbunde @arnoldi254 @DollyOgutu 2. Taxpayers are facing a new burden as President Ruto's administration plans to secure an additional KES 362B to fund his second full-year budget, set to surpass the KES 4T mark for the first time.
More debt on the way:
#MwangoMemes
3. Emergency loans the Treasury has tapped directly from CBK [ @CBKKenya] have hit a historical record KES 91.13 B.
According to CBK data, GoK’s overdraft has grown from KES 61.12 B at the end of July to KES 88.33B on December 1.
#MwangoMemes