Tag: KCB Safari Rally 2023 news

KCB Group Plc Profit after Tax rises 86% to Ksh29.9B, Resumes Dividend Payout

Posted on by Kibaki Muthamia

KCB Group PLC profit after tax for the first half of the year ending June rose 86% to KShs.29.9 billion, as the Group sustained a focus on supporting customers and economic recovery efforts.

This was a growth from KShs.16.1 billion reported in a similar period last year, depicting a resilient performance that saw the balance sheet expand by 6% to KShs1.98 trillion, up from KShs.1.86 trillion. As a result, KCB remained the most profitable financial institution in East Africa and the largest by asset size.

Strong revenue growth across the Group businesses supported profitability on both funded and non-funded income lines.

The contribution by subsidiaries (excluding KCB Bank Kenya) has continued to increase, closing the half at 37.8% in pretax profits and 34.4% in total assets, signalling diversification benefits to other markets outside Kenya.

The performance has helped the Group resume dividend payout, with the Board recommending an interim dividend amounting to KShs.4.8 Billion, the biggest interim dividend in the lender’s history.

Financial Highlights

  • The Group Total Assets grew by 6% to 1.98 trillion from KShs1.86 trillion, on the back of stable customer deposits growth which closed the period at KShs.1.49 trillion.
  • Net Loans & Advances stood at 1.03 trillion, a 7% jump from additional facilities to support our customers undertake their business activities.
  • Revenues rose across both funded and non-funded income lines. Net Interest income grew by 35% supported by improved yields and increased lending to key segments. The non-funded income grew by 21%, driven by digital banking and FX trading income as well as enhanced contribution from Trust Merchant Bank (TMB), our DRC-based subsidiary.
  • Provisions increased by 20%, impacted by non-performing loan downgrades cushioned by the impact of the appreciation of the Kenya Shilling relative to the foreign denominated facilities.
  • Overall, the Group’s gross non-performing book stood at KShs.212 billion, which saw the NPL ratio close the quarter at 18.5%. This was as a result of downgrades in Kenya and the impact of translation of the foreign currency denominated book. To mitigate the effect of increased NPLs, provisions increased by 20% and an enhanced regulatory coverage ratio of 104.3%. The Group has prioritized efforts to improve asset quality with various measures in place to reduce the NPL ratio both in the short and long-term.
  • Costs were contained at 9.6% increase due to growth in business volumes, staff costs and inflationary pressures, to close the period at KShs.44.3 billion. Cost to Income ratio was down to 46.8% from 55.3% on the back of strong income growth coupled with stringent cost management initiatives.
  • Return on Equity improved to 25.5%, up from 15.9%, while Shareholders’ funds grew by 14% during the period to close at KShs.248.2 billion up from KShs.217.9 billion. This signals a value gap that exists between our book and market valuations signifying, a good entry point at a discount for new shareholders looking for sustainable long-term value as well as an opportunity for existing shareholders to grow their investments.
  • The Group sustained strong capital cushions, with Group core capital as a proportion of total risk-weighted assets stood at 17.8% against the statutory minimum of 10.5% while the Total capital to risk-weighted assets ratio was at 20.3% against a regulatory minimum of 14.5%. All banking subsidiaries except NBK were compliant with their respective local regulatory capital requirements.

Latest Corporate Developments

KCB Group continued to deepen its commitment to its Sustainability and ESG priorities where we seek to support 14 Sustainable Development Goals anchored on corporate social investments and driving sustainable business practices.

On Tuesday, the Group launched its 2023 Sustainability and ESG Report that details the progress made and targets ahead.

The Group is committed to remaining a leading green financier and positioning ‘2jiajiri’, our social impact platform.

In March, KCB Group PLC and Access Bank PLC signed a binding offer for the proposed acquisition 100% of the issued and outstanding share capital of National Bank of Kenya Limited (NBK) by the latter.

The successful completion of the transaction is subject to conditions that are customary for transactions of this nature including receipt of all regulatory approvals. KCB acquired 100% of NBK in 2019.

KCB continued to top in global, regional and local accolades, cementing its market leadership position. KCB was recently listed among Kenya’s top 3 most valuable brands by Brand Finance, a UK based consultancy in its Global 500 ranking.

The Bank has also received several top awards for its role in East Africa’s economic transformation journey.

Some of the awards include Best in Customer Excellence (runners up Tier 1) and Best Banking Group Kenya- Finance Derivatives Awards.

The Bank has also received accolades for its women in banking proposition dubbed ‘FLME’.

KCB Group CEO, Paul Russo was last month named African Business Leader of the Year Award 2024 by the African Leadership Magazine, in recognition of his transformative influence on East Africa’s financial services sector where KCB has emerged as an enabler of economic progress in the region.

KCB prioritizes Sustainability at the 2023 WRC Rally

Posted on by Kibaki Muthamia

The 2023 World Rally Championship (WRC) Rally held in Naivasha from the 22nd to the 25th of June 2023, presented an opportunity to showcase that thrilling events can embrace environmental responsibility.

In the fast-paced world of motorsport, where excitement, speed, and adrenaline reign supreme, KCB, took the center stage to lead the charge towards a greener future. The thrill of watching rally cars zoom through challenging terrains captivates fans around the globe.

However, it is essential to recognize that such events also have negative implications towards the environment. The anticipated emissions, waste generated, and ecological disruptions caused by motorsport activities are significant concerns that cannot be ignored.

Showcasing sustainability at the 2023 WRC held in Soysambu, Naivasha; KCB tent with repurposed furniture and animal artifacts made from recycled metal, embracing the astonishing beauty of waste transformation.

For this reason, days leading to the rally, KCB joined forces with its sponsored drivers, planting a total of 500 trees in Naivasha Boys Boarding Primary School.

This act symbolized commitment to offsetting the rally’s carbon footprint and forged a powerful bond between the drivers and the environment. Beyond the checkered flag, this act instilled a lasting sense of environmental responsibility.

Before the rally, the Bank made a deliberate move to educate and empower its suppliers to integrate ESG practices into their business during the rally and in the future. This was done in line with KCB Group Suppliers’ Code of Conduct to educate the suppliers on how they can mainstream sustainability into their activities for the rally.

Promoting waste segregation at the 2023 WRC held in Naivasha; Color-coded bins positioned at KCB tents for effective waste collection, recycling and proper disposal.

The Code of Conduct aims to have our suppliers run a sustainable business that contributes to the welfare of society and the environment while realizing profits. It requires suppliers to adhere to labor and human rights, ensure a healthy and safe working environment, to have an effective environmental policy and Emergency preparedness and response.

Sustainability was woven into every aspect of the supply chain, ensuring that the event embraced environmentally conscious principles.

As the rally roared to life, the suppliers’ dedication to sustainability took center stage as they played a pivotal role in transforming the rally site into an eco-friendly haven exemplifying the principles of a circular economy.

In a circular economy, the goal is to minimize waste and maximize the value of resources by keeping them in use for as long as possible. Instead of following a linear “take-make-dispose” model, a circular economy aims to close the loop, creating a system where materials and products are reused, repaired, or recycled to create new value.

With ingenious creativity, they repurposed and used recycled materials like pallets, old oil drums, and tires, metal creating stunning decorations and furniture. This not only reduced waste but also showcased the astonishing beauty and functionality that waste and sustainable practices can achieve.

The event set-up was truly remarkable, catching everyone’s attention with strategically positioned eye-catching SDG (Sustainable Development Goals) boxes at the KCB tents. These stylish cubes not only provided seating spaces but also symbolized the goals embraced by KCB.

Serving as a constant reminder, they emphasized the broader social and environmental objectives throughout the event.

Waste management was a priority, with color-coded bins placed throughout the rally site for proper waste segregation and collection. KCB collaborated with WRC marshals to ensure effective waste segregation and collection. This streamlined approach facilitated proper collection, sorting, and safe disposal and recycling of the waste.

KCB Tents at the 2023 WRC Rally showcase sustainable furniture from recycled wood and pallets.

After the event concluded, the unwavering commitment to sustainability was evident as the Naivasha ground was left immaculate. Every piece of waste was diligently collected and disposed correctly.

This thorough process showcased KCB’s and her partners’ dedication to protecting the planet demonstrating enduring environmental sustainability initiatives from beginning to end.

The successful combination of excitement and environmental consciousness in motorsport events has been proven. The efforts of KCB serve as an inspiring testament, encouraging others to embrace sustainability and prioritize the well-being of our planet.

Now is the time to accelerate towards a greener future, leaving behind a trail of excitement and sustainability in every aspect of our lives.

KCB signs African Cross-Border Payment deal to support customers

Posted on by Kibaki Muthamia

KCB Group has signed an Africa-wide deal to facilitate settlements of cross-border transactions on the continent.

The agreement signed early this week with the Pan-African Payment and Settlement System (PAPSS) in Accra, Ghana on the side-lines of the Afrexim Bank Annual Meeting, makes KCB the first Bank in East Africa to on board the financial market infrastructure that provides a secure and efficient channel for processing cross-border payments.

KCB Group CEO, Paul Russo said this platform will guarantee speed, affordability, and reliability of transactions, effectively boosting intra-African trade and payments.

“With this agreement, we bring on board our payments and collections expertise spanning over 120 years. This means that our customers will now have access to vast economic opportunities that will deliver multiple advantages and efficiencies especially when conducting Intra-African trade payments.”

The platform is a centralized Financial Market Infrastructure developed in collaboration with the African Export-Import Bank (Afreximbank) to complement trading under the Africa Continental Free Trade Area (AfCFTA).

It provides an alternative to current high-cost and lengthy correspondent banking relationships to facilitate trade and other economic activities among African countries through a simple, low-cost risk-controlled payment clearing and settlement system.

KCB Group CEO, Paul Russo during the press conference.

“As a Pan-African banking institution, it is our desire to play a bigger role in facilitating trade across Africa and beyond. With such partnerships, we shall be able to settle our own transactions including those for all its subsidiaries as well as for other commercial banks without many hurdles.” Russo said.

The platform will deliver multiple advantages and efficiencies to intra-African trade payments that include a reduction in the duration and time variability of cross-border payments across Africa, support real-time payments, decrease the liquidity requirements of commercial banks for cross-border payments, remove transaction value limits, enable commercial banks to set the applicable exchange rates and strengthen oversight of cross-border payment systems by Central Banks.

The Pan-African Payment and Settlement System network currently consists of at least 8 Central Banks, 28 commercial banks, and six switches.

It has successfully been piloted in the six countries of the West African Monetary Zone and is expected to expand into the five regions of Africa before the end of 2023. Additionally, all African Central Banks are expected to sign up by the end of 2024 while all commercial banks by the end of 2025.

Simba Wa Kenya: Legendary Driver Who Raced In Reverse Gear, and Won!

Posted on by Kibaki Muthamia

The infectious magic in the world of motorsports began with the iconic East African Rally Championship in the 70’s and 80’s. A glorious event that pitted man and machine against extreme terrain, unpredictable weather and wild animals.

Race cars were purposely built for the rough and tumble, featured little of the safety, comfort or technology bells now basic in a modern family car. But, the tough event created hard, gritty sportsmen.

And, stories that will never die. Stories of excellence built painstakingly through experience and initiative to overcome obstacles. The era’s most endearing rally legend is Joginder Singh – The Flying Sikh – a driver so prolific that President Jomo Kenyatta would christen ‘Simba wa Kenya’.

Legendary brothers Joginder and Jaswant Singh celebrating a past win. (file image)

Joginder Singh was born in Kericho, on 9th February 1932. He dived into motorsports aged 26 years to rack up over 60 wins in the East African Rally, and three top five finishes in the Southern Cross Rally in Australia during the 1970s.

It is, however, exploits and escapades in the Safari Rally that made Joginder Singh a legend. The Flying Sikh has a record three wins under his belt: 1965, 1974 and 1976.

Joginder Singh’s record of 19 finishes in 22 attempts in the Kenyan Safari Rally is considered an unprecedented feat of consistency in what has infamously reigned as the world’s toughest rally, where the attrition rate could exceed 90%. It was a chest-thumping feat to just complete the rally.

For instance, the 1968 event had 81 crews on the starting line. Only 7 crews – Joginder’s included – completed the event to earn the moniker ‘The Unsinkable Seven’. The entire field of 74 crews were stranded on the Mau Escarpment, along the western rim of the Great Rift Valley.

Joginder’s acumen started to shine in the event’s 13th edition, in 1965. The legend’s car was branded No.1 – now, both numbers are termed as ‘unlucky’. Sports and superstition are birds of the same feather. Joginder’s co-driver was his brother Jaswant – the pair had rebuilt a retired race car, a Volvo PV544. Against incredible odds, they had won.

It is the 1971 event performance that still evokes nostalgia. Joginder’s Ford Escort became problematic on Day One. The gear box jammed, only the reverse gear working. Deciding to return to his service crew, Joginder drove in reverse gear for four and half miles against oncoming cars!

 “All this time, about 70 more Safari cars were coming flat out towards me as I was reversing,” he later recalled.

“On reaching the service point, we found the crew had gone. Only two mechanics remained. We just opened up the gearbox and stripped it to bits. The gear selector had broken. There were no spare parts. We bent the levers in the gears so as to stick them in. It took a lot of hammering.

This took a lot of precious time. As soon as we got back on the road, we let go at full speed. We started overtaking the tail-enders. We were the 100th car at one stage and we just kept overtaking them.”

Joginder would overtake more than 100 cars – to finish THIRD!

The Flying Sikh eventually retired in 1980, earned two Kenya’s Motor Sportsman of the Year title (1970 and 1976). Sadly, the Shujaa passed away on Mashujaa Day 20th October 2013 in the UK.

The 2023 FIA World Rally Championship (WRC) holds the seventh leg of the series, dubbed KCB WRC Safari Rally on June 22-25 at the lakeside town of Naivasha.

Expected to defend the Kenyan leg is the WRC series champion Kalle Rovanpera.

Kenya Commercial Bank (KCB) is the official sponsor with an estimated Ksh150M fees injected as support for the 2023 WRC Safari Rally event. The annual event features highly for motorsports enthusiasts, with lots of outdoor camping and family fun activities.