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Kenyan banker Gideon Muriuki’s Co-op Bank posts record earnings, as profits exceed $130 million

Muriuki owns a two-percent stake in the leading financial services group.

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Gideon Muriuki.

Co-operative Bank Group (Co-op Bank), a Nairobi-based financial services group led by Kenyan banking magnate Gideon Muriuki, is on track to deliver yet another impressive set of financial results this year, with profit exceeding Ksh16 billion ($130 million) at the end of the first nine months of its 2022 fiscal year.

According to figures in the group’s recently published financial results, profit at the end of the first nine months of its 2022 fiscal year rose by 47 percent from Ksh11.6 billion ($95.6 million) a year earlier to Ksh17 billion ($140 billion), owing to increases in both interest and non-interest income.

Non-interest income, which includes fees and commissions on loans and currency trading, climbed by 28.2 percent to Ksh20.1 billion ($164.8 million) during the period under review, while interest income increased by 10.5 percent to Ksh43.7 billion ($358.2 million) due to lending growth.

The group also revealed that its customer deposits increased by 2.7 percent to Ksh432 billion ($3.54 billion), contributing to an increase in interest expenses of 7.2 percent to Ksh11.6 billion ($95.1 million), while its loan book increased by 9.4 percent to Ksh335.1 billion ($2.75 billion), while investments in government debt securities decreased by 5.6 percent to Ksh182.3 billion ($1.5 billion).

As a result of the strong financial results, the group’s total assets increased by more than 5% to Ksh622.1 billion ($5.1 billion), up from Ksh592.9 billion ($4.86 billion) in the same period last year, while shareholder funds rose by more than 6.22 percent to Ksh100.9 billion ($827.1 million).

Muriuki, Co-op Bank’s CEO, said in a statement issued during trading hours on Fri., Nov. 18, that the bank’s outstanding performance is consistent with the group’s strategic focus on sustainable growth, resilience, and agility.

He also stated that all of the group’s subsidiaries, including the South Sudan operation, were profitable during the review period and that the strong performance provides shareholders with a competitive return on equity of 23 percent.

Co-op Bank is one of the largest financial organizations in East Africa. Kingdom Securities Limited, Co-op Trust Investment Services Limited, Co-operative Consultancy & Insurance Agency Limited, Kingdom Bank Limited, and the Co-operative Bank of South Sudan are among its subsidiaries.

Muriuki, who was instrumental in the bank’s expansion, owns a two-percent stake in the leading financial services group that serves as the primary banker for Kenya’s SACCOs.

Earlier this year, the renowned businessman earned a dividend of Ksh102.53 million ($882,400) from his stake in the Nairobi-based financial services organization after the lender reported a 53 percent increase in earnings in 2021.

East Africa

Controlled by Kenya’s richest families, NCBA Group eyes entry in Ethiopia, DRC, Ghana

NCBA Group is partially owned by the super-rich Kenyatta, Merali, and Ndegwa families.

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Uhuru Kenyatta.

NCBA Group, a financial services conglomerate controlled by Kenya’s wealthiest families, is preparing to launch operations in Ghana, Ethiopia, and the Democratic Republic of the Congo (DRC) through partnerships led by its mobile phone banking service, M-Shwari.

The move, which aligns with the group’s strategic expansion plans and diversification strategy through mobile and digital banking, comes just a week after NCBA CEO John Gachora announced that the lender plans to expand into eight African markets.

The group, which is one of the leading lenders in East Africa with operations in Tanzania, Uganda, and Rwanda, is negotiating mobile phone banking partnerships with banks and telecom operators in the three countries.

The move is consistent with Gachora’s earlier statement, in which the leading executive stated that the model in the new markets will be to collaborate with local banking and mobile partners to deliver products and services to customers while leveraging cutting-edge technology.

According to Gachora, funding the expansion will be less expensive than establishing a traditional bank. “There will be licensing costs because it’s digital, it’s a fintech, and licenses are relatively cheap,” he said. As a result, the Kenyan bank will earn commissions on deals involving the establishment of brick-and-mortar operations in Ghana, Ethiopia, and the DRC.

NCBA Group is a Nairobi-based financial services conglomerate that operates as a non-operating holding through its extensive network of subsidiaries in Tanzania, Rwanda, Uganda, and Cote d’Ivoire.

The Kenyan banking firm, established in 2019 by the merger of NIC Bank Group and Commercial Bank of Africa Group, now has 109 branches in five countries — Kenya, Uganda, Tanzania, Rwanda, and Cote d’Ivoire — and is partially owned by the super-rich Kenyatta, Merali, and Ndegwa families.

The bank’s profit rose from Ksh6.52 billion ($53.3 million) to Ksh12.8 billion ($104.7 million) at the end of the first nine months of its 2022 fiscal year thanks to a double-digit increase in interest and non-interest income during the period under review.

NCBA has reaped enormous benefits from pioneering mobile phone-based lending in Kenya since partnering with telecom provider Safaricom in 2012 to launch the market-dominating service, M-Shwari.

It hopes to expand this model beyond East Africa, with large populations and a banking industry that primarily serves large corporations.

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East Africa

Led by Kenya’s richest families, NCBA Group plans expansion into eight African countries

NCBA Group is partially owned by the super-rich Kenyatta, Merali, and Ndegwa families.

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Uhuru Kenyatta.

NCBA Group, a financial services conglomerate owned by Kenya’s wealthiest families, has announced plans to expand into eight African markets as part of its diversification strategy through mobile and digital banking.

John Gachora, NCBA’s group CEO, revealed during the presentation of the bank’s third-quarter financial results that the group plans a strategic expansion into eight African markets to strengthen its reach on the continent through digital banking.

“We’re developing the technology, which should be ready fairly soon, and the plan is to roll it out in the mid-next year with our partners in Ghana and other countries on the continent,” Gachora said, revealing that NCBA is in talks with Ghanaian lenders to expand its operations in West Africa.

According to Gachora, funding the expansion will be less expensive than starting a traditional bank. “There will be licensing costs because it’s digital, it’s a fintech, and licenses are relatively cheap,” he said.

Aside from Ghana, NCBA is looking to expand into the mineral-rich Democratic Republic of the Congo and Ethiopia as the country opens up its financial industry to foreign investors.

NCBA Group is a Nairobi-based financial services conglomerate that operates as a non-operating holding through its extensive network of subsidiaries in Tanzania, Rwanda, Uganda, and Cote d’Ivoire.

The Kenyan banking firm, established in 2019 by the merger of NIC Bank Group and Commercial Bank of Africa Group, now has 109 branches in five countries — Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast — and is partially owned by the super-rich Kenyatta, Merali, and Ndegwa families.

The bank’s profit rose from Ksh6.52 billion ($53.3 million) to Ksh12.8 billion ($104.7 million) at the end of the first nine months of its 2022 fiscal year thanks to a double-digit increase in interest and non-interest income during the period under review.

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East Africa

Zimbabwean billionaire Strive Masiyiwa’s Liquid opens cybersecurity center in Nairobi

Liquid C2 is a subsidiary of Liquid Intelligent Technologies.

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Strive Masiyiwa.

Liquid C2, a subsidiary of Liquid Intelligent Technologies, a technology firm owned by Zimbabwean billionaire Strive Masiyiwa, has opened its Cybersecurity Fusion Center (CSFC) in Nairobi, Kenya’s capital city.

The new facility, established by liquid C2 to ensure Kenyan customers have timely access to real-time intelligence-driven alerts and advisory services to mitigate potential security threats, is the first of its kind in Kenya and the second in Africa.

The cybersecurity center will be invaluable in Liquid’s efforts to provide Kenyan customers with real-time intelligence-driven alerts and advisory services, allowing them to mitigate potential threats as soon as possible.

Customers will now be able to focus on their critical business needs while managing their cybersecurity requirements in the most cost-efficient and effective way possible, according to Liquid, thanks to a slew of new cybersecurity services that will be deployed in the new center.

“Through our matrix of Fusion Centers, Liquid C2 will predict, prevent, detect, and respond to cyberattacks that target our customers,” David Behr, CEO of Liquid C2, said.

Behr went on to state that raising awareness about the critical importance of cybersecurity is not only beneficial to clients, but also a critical pillar in Kenya’s economic growth as the country continues to undergo digital transformation.

He added that Liquid C2 will continue to play a role in Kenya’s digital transformation and that with the opening of the center in Nairobi, the company will be better positioned to help customers in real-time and enable them to be proactive rather than reactive in today’s complex cybersecurity landscape.

The cybersecurity center’s opening comes nearly two weeks after Liquid, Liquid C2’s parent company, announced plans to spend more than R350 million ($19.7 million) to deliver a Software Defined Network (SDN) offering known as Dataport Across Africa, making it the first African company to do so.

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