Afleveringen
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In this episode recorded on 26.03.2024, we host Lawrence Kimathi, Group Director Finance - KCB, as we break down the bank’s 2023 financial performance.
We also cover NBK’s sale, subsidiary performance, dividends, the G2G oil deal, and the bank’s 2024 outlook.
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Show Notes
00:00:00 Introduction
00:03:00 Local vs Multinational Banks
00:04:00 FY23 Results Overview
00:07:54 Customer Deposits, Gross Loans, and NPLs
00:18:35 NBK
00:23:10 Interest Income vs Interest Expense
00:26:18 Cost to Income Ratio and Subsidiary Performance
00:33:56 Capex and Dividends
00:36:27 The G2G Oil Deal
00:38:59 Outlook for 2024
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In this episode recorded on 25.03.2024, we host Kihara Maina - Regional CEO and Billy Ng'etich - Acting CFO from I&M Group as we break down I&M Group’s 2023 financial performance.
We also cover interest income trends in a rising interest rate environment, monetizing digital transactions, risk-based pricing model, unlocking shareholder value, and subsidiary performance.
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Show Notes
00:00:00 Introduction
00:01:04 Overview of FY 23 Results
00:01:47 Interest Income vs Interest Expense
00:03:00 Non-Funded Income, NPLs, and Interest Income Trends
00:09:02 Bottom Line, ROE, and Investments
00:16:31 Lending Rate and Risk-Based Pricing Model
00:20:27 Strategy, Positioning, and Products
00:23:46 Dividend Payout Ratio and SLLR
00:28:46 Acquisition by East Africa Growth Holding
00:29:26 Unlocking Shareholder Value and Subsidiary Performance
00:32:51 Monetizing Digital Transactions and G2G Transactions
00:37:29 2024 Outlook
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Zijn er afleveringen die ontbreken?
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In this episode recorded on 19.03.2024, we host Yusuf Omari - Finance Director, Absa Bank Kenya, to deep-dive into the bank's FY 2023 results.
We also cover FX depreciation, exposure to government securities, risk-based pricing model, the cost of risk, and mark-to-market losses.
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Show Notes
00:00:00 Introduction
00:01:23 Overview of the FY 2023 Results
00:03:24 FX Depreciation and Exposure to Government Securities
00:07:13 NPLs and Preference for Short-Term Lending
00:10:56 Customer Deposits, Loan Uptake, and the IFB
00:18:55 Cost of Risk and the Cost-to-Income Ratio
00:25:19 CAPEX and Dividends
00:27:44 Non-Funded Income, Insurance, and Asset Management
00:32:08 Loan-To-Deposit Ratio and Mark-To-Market Losses
00:34:19 Interest Expense, FX Outlook, and Risk-Based Pricing
00:40:48 Longterm Plans, M&A, and Key Takeaways
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In this episode recorded on 29.02.2024, we host Nankunda Katangaza - Co-founder and Director, Hook Tangaza, John Kamau - Associate Director Financial Crime Advisory, PwC EA, and Titus Kariuki Senior Manager Financial Crime Advisory, PwC EA to unpack the repercussions of Kenya's greylisting by The Financial Action Task Force (FATF).
We also cover the issues Kenya needs to address to get off the grey list, measures to protect against financial crime, cryptocurrency as an attractive channel for illicit funds, and enhancing compliance.
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Show Notes
00:00:00 Introduction
00:04:41 FATF, AML, and CFT
00:07:33 Implications of Being on the Grey List
00:25:13 Issues to Address to Get Off the Grey List
00:36:50 Challenges in Reporting Suspicious Transactions
00:42:52 Enhancing Compliance
00:59:07 LSK’s Contribution Towards Getting Kenya Off the Grey List
01:04:04 Cryptocurrency as an Attractive Channel for Illicit Funds
01:07:18 Protecting Against Financial Crime
01:13:54 Closing Remarks
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In this episode recorded on 06.03.2024, we host Dennis Musau - Chief Finance & Value Officer, Stanbic Bank to delve into the bank's FY 2023 earnings results.
We also cover the loan book, NPLs, participation in the G2G program, the impact of Kenya’s graylisting by FATF, dollar access in the market, SBG Securities’ performance, dividends, and share buybacks.
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Show Notes
00:00:00 Introductoin
00:06:46 2023 Performance Overview
00:10:04 Loan Book and Non-Performing Loans
00:22:44 Interest Income, Investment In Gov’t Securities, and Non-Funded Income
00:30:02 The G2G Program
00:32:18 Statutory Loan Loss Reserve, Dividends, and Share Buy Backs
00:37:55 South Sudan Subsidiary’s Performance, M&A, and SBG Securities
00:42:11 Exposure in the Tea Sector
00:43:58 FATF Graylisting, Dollar Access, and Eurobond Repayment
00:53:21 Impact of Depreciating Currency on Tier-One Banks
00:57:14 Outlook, Strategy, and Closing Thoughts
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In this episode recorded on 14.02.2024 and hosted by Ramah Nyang - Business Journalist, Bloomberg, we are joined by Julians Amboko - Business Journalist, Nation Media Group and Churchill Ogutu - Economist, IC Group to discuss Kenya's recent Eurobond issuance and buyback.
We also cover borrowing from the domestic market vs the international market, issuing Eurobonds at a fixed vs floating rate, and expectations from the Finance Act and Finance Bill 2024.
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Show Notes
00:00:00 Introduction
00:05:13 Cross-Default
00:08:20 2031 Eurobond Issuance and the 2024 Eurobond Buyback
00:11:03 Alternatives for Settling the 2024 Eurobond
00:16:52 Domestic vs International Markets
00:21:38 Pricing of the 2031 Eurobond
00:28:11 Expectations from the Finance Act And Finance Bill 2024
00:30:30 Fixed vs Floating Rates and the FX Market
00:40:33 Ammortizing Feature
00:42:27 Longer-Term Eurobonds from Frontier Markets
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In this episode recorded on 08.02.2024, we are joined by Toddy Thairu - Director and Lead Consultant, Astute Consulting and Zach Munyi - Head of Public Policy, East African Breweries PLC for a discussion about the implications of the 2023 Finance Act amendments on excise duty.
We also cover how Kenya compares to the rest of the East African region, excise duty changes in the Finance Act 2023, and the impact of stamp and excise duty on EABL’s financial performance.
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Show Notes
00:00:00 Introduction
00:01:00 Excise Duty and its Traditional Intention
00:03:50 Kenya vs East Africa
00:04:46 How has Excise Duty impacted EABL?
00:06:49 Excise Duty Changes in the Finance Act 2023
00:30:52 Impact of Stamp and Excise Duty on EABL’s Performance
00:32:54 Medium-Term Revenue Strategy
00:42:10 Minimizing the Impact of Excise Duty
00:45:37 Closing Remarks
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In this episode recorded on 22.01.2024, we are joined by Churchill Ogutu - Economist, IC Group and Julians Amboko - Business Journalist, Nation Media Group for a discussion on the latest IMF report on Kenya.
We also cover the Medium-Term Revenue Strategy (MTRS), broadening the tax base, currency depreciation, and Eurobonds.
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Show Notes
00:00:00 Introduction
00:02:26 Why Does Kenya Need the IMF?
00:05:09 Takeaways From IMF’s Sixth Review Report
00:12:15 Medium-Term Revenue Strategy and the Finance Act 2024
00:17:24 Augmentation of Existing IMF Programs
00:23:47 Extended Credit Facility (ECF) Extended Fund Facility (EFF), And Resilience And Sustainability Facility (RSF
00:26:03 Broadening The Tax Base and Fiscal Consolidation
00:36:52 Treasury Single Account, Appropriation Bill, and Appropriation Act
00:41:16 Currency Depreciation and Special Drawing Rights
00:53:32 Consumption Tax, Refinancing, and Eurobonds
01:02:38 Closing Thoughts
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In this episode recorded on 19.12.2023, we are joined by the Kenya Power team of Rosemary Oduor - GM, Commercial Services & Sales and Raphael Ndolo - Ag. GM, Network Management to better understand Kenya's electricity value chain.
We also cover electricity generation, power demand, blackouts, IPPs, compensation for damage, and carbon trading.
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Show Notes
00:00:00 Introduction
00:07:06 The Electricity Value Chain
00:09:38 Electricity Generation, Power Demand, and Reserve Capacity
00:22:20 Blackouts and Grid Connections
00:28:34 IPPs
00:36:50 Independent Businesses Selling The Excess Power
00:42:56 Power Transmission
00:46:48 Compensation for Damage by Power Surges
00:49:09 Dispatch Merit Order
00:53:26 SLAs
00:56:58 N-1 Contingency, Power Storage, and Load Shedding
01:08:18 Optimal Power, Energy Insecurity, and Carbon Trading
01:19:27 Closing Thoughts
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In this episode recorded on 20.12.2023, we are joined by Dr. Priscilla Njako - Manager - Competition Authority of Kenya (CAK), Willy Kimani - Director, RETRAK Kenya, and Ishmail Bett - CEO, Association of Kenya Suppliers for an in-depth discussion on buyer power and its potential abuse.
We also cover the role of the Competition Authority of Kenya, the recent KES 1.1B penalty meted out to Carrefour, the sanctity of contracts, and retail trade dispute settlement.
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Show Notes
00:00:00 Introduction
00:02:17 CAK’s Role and Buyer Power
00:08:32 Retail Space in Kenya
00:14:52 Association of Kenya Suppliers
00:17:02 Determination of Buyer Power and its Abuse
00:27:12 Sanctity of Contracts
00:33:48 Dispute Settlement, the Competition Tribunal, and the Carrefour Case
00:54:02 Settlements with CAK and the Carrefour Penalty
01:10:37 Beyond The Penalty
01:18:09 Options Available to an Offending Party
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In this episode recorded on 30.11.2023, we are joined by Ronak Gadhia, Managing Director, Banks at EFG Hermes Kenya, as we take a deep dive into the Kenyan Banks' Q3 2023 results.
We also cover the Kenyan debt situation, subsidiary performance, dividend expectations, and the creation of bad banks to deal with non-performing loans.
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Show Notes
00:00:00 Introduction
00:01:00 Banks’ Q3 2023 Performance
00:06:49 Kenyan Debt
00:10:33 Loan Books, NPLs, and Provisions
00:21:47 Subsidiaries, Acquisitions, and OpEx
00:29:40 Non-Funded Income
00:37:22 Quality of Earnings for Stanbic And StanChart
00:43:42 Dividend Expectations
00:47:07 Good Bank, Bad Bank
00:50:50 NPL Management and Tier 1 Capital
00:51:52 Q4 and Full-Year Outlook
00:58:47 Closing Thoughts
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In this episode recorded on 22.11.2023 and hosted by Joe Mwaniki, we are joined by Ernest Muriu - Audit Partner, Ernest & Martin Associates and Hakamba Wangwe - Chief Manager eTIMS, KRA for a conversation on the implications of the mandatory eTIMS registration.
We also cover turnover tax registration, exemptions from electronic tax invoices, implications of failing to onboard on eTIMS, and capacity building for KRA staff.
Below are some nuggets from the podcast:
“If you are working in an environment where you have business-to-business transactions, and if you do not comply, then you become another person's inconvenience. Probably that other person will feel uncomfortable doing business with you because it means then if they do business with you, that's an expenditure or transaction that they cannot be able to account for in their income tax returns.”
“We have provisions for determining when the tax point is, especially for VAT purposes. The tax point is when you either issue an invoice, receive payment, whether fully or partially, whether you've completed the service, or whether you've received a certificate of completion, if you're thinking of maybe a construction service, then whichever comes earlier, that's when you're supposed to declare that invoice. If it takes long to be paid, the law says, once you complete the service, then that's when the tax point applies. And that's when you need to declare it.
“If you are making sales amounting to 5 million in a year, then you are required to register for VAT purposes…For TOT, the turnover tax, your sales should be between Kshs 1 Million and Kshs 25 Million. The rate is 3 percent for turnover tax. It's supposed to be paid based on the total turnover for the previous month multiplied by 3%. That's what you declare in your turnover tax return by the 20th of the next month.”
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Show Notes
00:00:00 Introduction
00:03:19 What is eTtims?
00:11:12 eTIMS Solutions for Various Taxpayers
00:18:33 Implications of Failing to Onboard on eTIMS
00:25:52 Generating an Electronic Tax Invoice
00:31:43 Other eTIMS Functionalities and Non-VAT Invoices
00:40:13 VAT and Turnover Tax Registration
00:46:52 Exemptions
00:58:17 Compliance Rates and Lessons From TIMS
01:03:02 Trade Facilitation and Capacity Building
01:11:43 Tax Compliance and Small Businesses
01:15:30 Closing Thoughts
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In this episode recorded on 10.08.2023, we are joined by Tim Staermose - Founder, African Lions Fund as we explore investing in equities in Tanzania. We discuss the structure of the Tanzanian market, finding investors, moving funds across jurisdictions, and the Africa Lions Fund’s performance.
Below are some nuggets from the podcast:
“The beauty of funds management is that it is very scalable. Those fixed costs don't rise commensurately with the assets under management, they might rise a little bit, but certainly not at the same pace. You might be able to grow your fund 10 or 20-fold before your fixed costs double in many cases.”
“I'm a value investor but what I'm looking for primarily is, good, solid businesses run by honest and competent people. That's number one. And then I'm trying to buy them also at valuations low enough that I think that there's a potential for the valuations to double. So those are the things that attract me, high returns on equity, and competent and honest management.”
“In terms of which markets to be bullish on and which to avoid, there's two factors at work there. There's the fundamentals, and then there's also the valuation. So at what point in the cycle is the economy and the credit cycle and so on? That's important. I like to go to places that are not near the top of the cycle. Where there are some problems, the economy is either bottoming out or turning. But then also the valuations. It's no use going in somewhere where valuations are still very high. So you need both things working together.”
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Show Notes
00:00:00 Introduction
00:03:23 Investing In Tanzania and Investment Philosophy
00:13:49 Setting Up A Fund In Tax-Neutral Jurisdictions
00:18:24 Structure and Risks in the Tanzanian Market
00:31:08 Investment Criteria
00:35:02 AUM and Costs of Running Sustainable Equity Fund
00:42:41 Activism vs Exiting a Position
00:49:02 Succession Planning, Lock-in Periods, and Allocation
00:53:08 Searching for Data In Africa
00:56:20 Dividend Payments and the Depreciating Shilling
01:04:20 Moving Funds Across Jurisdictions
01:07:25 Macro Perspectives and Undervalued Stocks in the NSE
01:10:48 Tanzanian Banks
01:16:55 Africa Lions Fund’s Performance
01:19:01 Closing Thoughts And Reflections
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In this episode recorded on 17.08.2023, we are joined by James Muraguri - CEO, Institute of Public Finance as we seek to understand Kenya's budget-making process and how to participate in it.
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Show Notes
00:00:00 Introduction
00:02:14 Institute of Public Finance
00:05:45 Overview of the Budget Process
00:23:15 Is The Budget Process Short-Term Oriented?
00:31:42 Tools to Help Citizens Understand And Participate in the Process
00:36:33 Tokenistic Approach to Public Participation
00:39: 41 Macro Outlook
00:42:51 Supplementary Budget
0:44:00 Need for Accountability at the County Level
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In this episode recorded on 28.11.2023, our guest host, Mark Masai, is joined by Florence Nyokabi - MD Human Resources, Stanchart West Africa and Oscar Nganga - Enterprise Sales Manager, SeamlessHR (East Africa) in a conversation on how you can attract the best talent.
We also cover the value of seeking talent globally, automation in recruitment, legal and regulatory challenges in international recruitment, and emerging trends in cross-border recruitment.
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Show Notes
00:00:00 Introduction
00:02:09 Value of Seeking Talent Globally
00:04:39 How SeamlessHR Eases Global Talent Recruitment
00:08:00 Securing Employment In Global Organizations
00:11:07 Automation and the Human Element In Recruitment
00:14:46 Legal Considerations In International Recruitment
00:22:40 Bias In AI
00:26:24 Navigating The Relocation Process
00:34:30 Key Metrics in Data-Driven Hiring Strategies
00:36:26 Dos and Don’ts as a Global Talent or Recruiter
00:42:01 Emerging Trends In Cross-Border Recruitment
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In this episode recorded on 09.11.2023, our guest host, Ramah Nyang, is joined by Wangari Muikia - MD, Expertise Global and Johnson Nderi - Corporate Finance and Advisory Manager, ABC Capital to talk about the state of the Kenyan Economy.
We also discuss planning for 2024, public debt, buying back the 2024 Eurobond and the huge debt service.
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Show Notes
00:00:00 Introduction
00:01:57 Macroeconomic Assumptions in Planning for 2024
00:08:43 Predictable Tax Framework
00:13:08 Public Debt
00:23:11 Eurobond Repayment Extension
00:26:13 2024 Perspective
00:29:15 2024 Eurobond Buyback
00:45:11 Huge Debt Service
00:54:40 Making Equities More Attractive
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In this episode recorded on 13.09.2023, we host Eric Musau - Executive Director, Research at Standard Investment Bank and Ronak Gadhia - Managing Director at EFG Hermes Kenya to dissect Kenyan banks' H1 2023 earnings.
We also cover the banks’ non-performing loans, the forex market, and the future outlook.
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Show Notes
00:00:00 Introduction
00:01:56 High-Level Thoughts on the Results
00:06:20 Loan Books
00:10:18 NPLS
00:24:06 International vs Local Banks
00:29:57 FX Market and Gov’t Securities
00:34:25 Capital Allocation
00:39:43 Eurobond, Credit Rating, and Outlook
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In this episode recorded on 28.09.2023, our guest host, Phares Kariuki - Pure Infrastructure CEO, is joined by Moses Kemibaro - Dotsavvy Founder and CEO, Tim Kipchumba - Questworks Co-Founder, and Kennedy Kachwanya - kachwanya.com Tech Mega Trend Analyst on a conversation about the current startup landscape in Kenya.
We also cover the trajectory of startups in the last two decades, raising money vs generating revenues, building beyond the media hype, and cash-conscious marketing strategies.
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Show Notes
00:00:00 Introduction
00:02:31 Trajectory over the Last Two Decades
00:18:13 Raising Money vs Generating Revenues
00:24:41 Disconnect Between Funding and a Good Investment
00:28:08 The Storytelling Problem
00:42:08 Bad Investments vs Bad Markets
00:54:16 Building Beyond the Media Hype
01:05:25 Challenges in the Fundraising Market
01:15:33 Cash-Conscious Marketing Strategies
01:23:25 Building Resilient Businesses
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In this episode recorded on 03.08.2023, we host Nanjira Sambuli - Fellow, Carnegie Endowment for International Peace, Bright Mawudor - Founder, AfricaHackOn, and Tyrus Kamau - a cybersecurity consultant to explore Kenya's cybersecurity posture.
We also cover the recent DDoS attacks that paralyzed critical infrastructure, the role of various institutions in cybersecurity, and the basic steps individuals should take in protecting themselves against cyber attacks.
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Show Notes
00:00:00 Introduction
00:01:00 Is Kenya Ready?
00:09:48 DDoS Attacks and Paralyzed Critical Infrastructure
00:22:54 Availablity of Tech Talent
00:32:40 Securing Government Infrastructure
00:36:40 Legislature’s Role
00:45:44 Way Forward for Kenya
00:51:10 Recommendations for the Private Sector
01:01:17 Media’s Role
01:07:59 Steps In Protecting Against Cybersecurity Threats
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In this episode recorded on 05.09.2023 and hosted by Rhina Namsia, we are joined by Tom Coleman - Informa Markets’ Exhibition Director and Cynthia Makarutse - Informa Markets’ Conference Director on a discussion about Medic East Africa, redefining healthcare delivery in the region, and the upcoming Healthcare East Africa 2.0 Summit.
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Show Notes
00:00:00 Introduction
00:02:36 East Africa’s Healthcare Overview
00:04:17 Technology and Emerging Trends
00:07:07 The Healthcare East Africa 2.0 Summit
00:10:45 What to Look Forward to
00:12:57 Informa Markets’ Role
00:15:47 Summit Details
00:18:01 Advice for Those Joining Healthcare
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit mwangocapital.substack.com - Laat meer zien
