Latest news with #KCBBank
Zawya
a day ago
- Business
- Zawya
Kenya defends role in $152mln loan payment cash
Eight banks shared the Ksh19.7 billion ($152.54 million) that the National Treasury tapped from the emergency kitty to pay a Kenya Airways (KQ) loan in January, new details from Parliament show. The loan payment, however, has attracted criticism as the State is put on the spot for guaranteeing the loan for working capital, in breach of the law. Documents show that the money was shared by the lenders following a settlement agreement with the government in September 2024 after KQ defaulted on the facility, sparking pressure from the banks on Treasury, which guaranteed the airline. I&M Bank received Ksh5.45 billion ($42.2 million), KCB Bank Ksh4.8 billion ($37.17 million), Diamond Trust Bank Ksh2.9 billion ($22.45 million) and Ecobank Ksh2.2 billion ($17.03 million), the four topping the list of beneficiaries by amount received. The National Bank of Kenya received Ksh1.5 billion ($11.61 million), Cooperative Bank received Ksh1.03 billion ($7.98 million), NCBA Ksh871.9 million ($6.75 million) and Equity Bank Ksh838.8 million ($67.66 million), documents show. Treasury raided the government's emergency kitty under Article 223 of the Constitution and withdrew Ksh19.69 billion ($152.46 million) for settlement of the facility, booking the transaction under the Consolidated Fund Services (CFS) budget line. The transaction, however, triggered criticism in Parliament with Busia Senator Okiya Omtatah alleging siphoning of the billions of shillings. Treasury Cabinet Secretary John Mbadi said the government had not budgeted for the settlement of the loan it guaranteed KQ in 2017, and only knew of the default in September last year. Defaulted'KQ defaulted on its repayment obligations amounting to Ksh19.69 billion ($152.46 million). The default necessitated the Government of Kenya to enter into a settlement agreement with consenting creditors on September 25, 2024 as a guarantor,' Mr Mbadi said in a response dated June 10. In the response, he noted that the government guaranteed MTC & Corporate Services Limited—a private firm—and a group of creditors $225 million in November 2017. At the point of default in September last year, KQ had cleared just a third ($75 million) of the loan. KQ borrowed the billions of shillings from the lenders for working capital needs, at a time it had been in the loss-making territory for several years.'The total expenditure was Ksh19,685,136,689 ($152.42 million) against the Exchequer request of Ksh19,698,584,739 ($152.52 million). The balance of Ksh13,448,049 ($104,127) was refunded to the exchequer account on January 14,' Treasury said. Mr Omtatah has said the government guaranteeing KQ a loan for working capital went against the law. Section 58 of the Public Finance Management Act, 2012 states: 'The Cabinet Secretary shall not guarantee a loan unless the loan is for a capital project (and) the borrower is capable of repaying the loan, and paying any interest or other amount payable in respect of it.' KQ in 2024 reported total revenues of Ksh188.49 billion ($1.46 billion), Ksh5.4 billion ($41.81 million) in net profits, and Ksh19.8 billion ($153.31 million) as comprehensive income.
Zawya
13-03-2025
- Business
- Zawya
KCB Bank unveils Kenya's first platinum multi-currency card with Compass Plus Technologies
Dubai, UAE – KCB Bank, the largest financial institution in East Africa, has partnered with Compass Plus Technologies to strengthen its multi-currency offering by launching Kenya's first platinum multi-currency prepaid card which will empower its customers with the flexibility and convenience they need to pay for goods and access funds across borders. The card allows users to load and transact in 11 currencies - Kenyan Shilling, US Dollar, British Pound Sterling, Euro, Swiss Franc, Australian Dollar, Canadian Dollar, Indian Rupee, Japanese Yen, South African Rand, and Chinese Yuan - some of the most popular among its customers, all while helping users avoid the typical exchange fees associated with currency conversion. 'The launch of this card is a celebration of the strengthening of our long-standing partnership with Compass Plus Technologies. This collaboration, once again, brings together two leaders in the industry, merging our expertise, innovation, and shared goal to provide exceptional financial solutions living up to our aspirations of being the bank of choice in Kenya,' said Angela Mwirigi, Director of Digital Financial Services, KCB Bank Kenya Once enrolled, cardholders will enjoy favourable exchange rates and reduced conversion costs that eliminate unexpected charges and simplify global spending. The card's ability to handle multiple currencies removes the need for separate currency accounts or physical cards, ensuring greater convenience and security. "We are thrilled to have collaborated with KCB Bank on this exciting venture," stated Adil Ahmed, Vice President & Deputy Managing Director, MEA at Compass Plus Technologies. "Throughout our long-term partnership, KCB has always taken a forward-thinking approach to developing new card products to improve the lives of their customers. This card not only enhances the banking experience for KCB Bank's customers but also sets a new industry standard for multi-currency prepaid cards in Africa." KCB Bank has been working with Compass Plus Technologies since 2012, when the bank successfully consolidated its three separate systems into one flexible in-house processing centre to handle its issuing, ATM, and POS acquiring businesses. Since then, the two parties have worked together on multiple projects to drive financial inclusion in Kenya and expand the bank's presence in East Africa. For more information, please contact Declan Kinsella at PR@ About KCB Bank Kenya Ltd KCB Bank Kenya Limited is the largest commercial bank in the country. A subsidiary of KCB Group Plc, the Bank has the largest branch network, with over 200 branches, 367 ATMs and 16,000 agents offering banking services on a 24/7 basis in East Africa. This is complemented by mobile banking and internet banking services with a 24-hour contact center services for our customers to get in touch with the Bank. KCB Group Plc- which also has presence in Uganda, Tanzania, South Sudan, Burundi, Rwanda and a representative office in Ethiopia also boasts of a wide network of correspondent relationships totaling over 200 banks across the globe and our customers are assured of a seamless facilitation of their international trade requirements wherever they are. About Compass Plus Technologies: Compass Plus Technologies is passionate about payments technology and architecting it properly for the needs of today and tomorrow. From start-ups and industry disruptors to recognised innovators and market leaders, our exceptional technology puts our customers in the driving seat and ultimately in control of their payment ecosystems. Together, we deliver ground-breaking and industry-leading products and services with uncontested ease and proven time-to-market.
