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KCB bank registers Shs231b profit

KCB Board Chairman N'geny Biwott with the bank MD Joshua Oigara

Kenya Commercial Bank Group has posted a pre-tax profit of Shs231.7 billion in the first quarter ending March 31, 2017.

The adverse impact of the interest capping law was cushioned by a 27 per cent reduction in interest expense, 20 per cent growth in non-interest income and prudent cost management that limited cost growth to below inflation.

“We have witnessed an increasingly challenging operating environment across all markets. In Kenya, the interest rate caps have made it difficult to price for risk whereas some of our subsidiaries are experiencing high inflation and shortage of foreign currency,” said KCB Group Chief Executive Officer Joshua Oigara.

The Group’s non-interest income was up 20.3 per cent from Shs161.7 billion Uganda currency in the first quarter of 2016 to Shs196.9 billion within the same period this year, underscoring the growing importance of income derived from alternative revenue channels.

Non-interest income currently accounts for 35 per cent of the group’s total operating income and is expected to be the growth driver going forward. The group has pegged its future on its finech strategy that rides on a digital platform to provide seamless services for its customers.

“The future lies in leveraging technology to drive efficiencies in our operations in order to serve our customers better with relevant products that meet their expectations,” said Mr. Oigara.

KCB has made significant advances in adopting technology resulting to more than 79 per cent of the transactions performed outside the branches. Mobile banking transactions have increased by 37 per cent, Agency banking increased by 50 per cent and Point of Sale transactions increased by 33 per cent in quarter 1 2017 compared to the same period last year. Over the same period, branch transactions have reduced by 27 per cent.

“This year, we will make investments to increase mobile banking customers to over Shs15 million, grow the agency network to over Shs20, 000.

“We need to continually manage our capital and risks to keep the business growing while delivering on our targets. Our focus will be on generating higher growth, and over the next three years, we will be seeing a bigger and more efficient bank” said Mr. Oigara.

KCB group continues to face challenges in South Sudan, due to the hyperinflation situation in the economy. The continued depreciation of the currency (South Sudanese Pound) has had a negative impact on our results. “The group continues to monitor South Sudan’s overall performance and appropriate optimization measures are being executed,” said Oigara.

In Uganda however the market is facing an improved market environment as Bank of Uganda continues to reduce the Central Bank Rate. In April it was reduced to 11 percent in in order to support the private sector credit and the economic growth momentum noting that “core inflation is forecast to remain around the medium-term target of 5 per cent.”

Other funding opportunities include the European Bank lent Shs38 billion to KCB Bank Uganda for onward lending to local small and medium scale enterprises. Mathias Muhimbisa, the Executive Director KCB Bank Uganda said that the facility will enable SMEs have access to loans ranging from Shs50 million to Shs1 billion to fund expansion of their business in terms of additional projects.

“SMEs will benefit from the reduced interest rate for fairly long term borrowing of 5-7 years” noted Muhimbisa

 

 

 

 

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Gov’t to start massive oil and mineral exploitation-Muloni

Energy Minister Eng. Irene Muloni

Energy Minister, Eng. Irene Muloni has revealed that government plans to massively start both oil and mineral exploitation.

She said in line with Uganda’s target of 2020, the Muloni put it clear that “. Four consortiums have been identified” two are going to be engaged (construction) and by the end of this year, the government will have a final investment decision made for the commencement of a refinery depot construction”

While addressing the media at Uganda Media Centre, the Minster said that the laboratory is under rehabilitation and more equipment is being procured adding that training has been carried out at the lowest cost. She added that in the long term, the government will be exploiting other sources of renewable energy such as geothermal potential (nuclear) and others are yet to be established.

Being environmentally sensitive, the refinery depot and pipeline are going to be developed as private businesses for the petroleum sector to progress.

Uganda granted eight additional licenses, five to Tullow Oil Company and three to Total. Tullow Oil Company was first granted its license in 2004 and started its preparations for the extraction of oil in 2006 especially at kisemena oil wall.

She clarified that the country is exporting gold from its Entebbe based gold company and this has brought in foreign exchange that will later be invested in other sectors of the economy.

In terms of electricity, she said the government has already invested in big hydro power projects which are currently under construction citing an example of Isimba, Karuma and Agago however, the government is fast tracking every sub-county to have electricity with free connection charges.

‘’As an East African region, Uganda wants to start trading in power, some of the transmission lines are being upgraded’’ the minister said.

She stressed that ‘’we must have cheap electricity that must support industries and industrial parks should have quality reliable electricity’’

 

 

 

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Court orders for arrest of Nakawa MP, Kabaziguruka

Nakawa MP Michael Kabaziguruka

The Makindye General Court martial has ordered for the arrest of Nakawa Municipality legislator Michael Kabaziguruka for what it calls skipping court.

The Registrar informed Court today that they had written to the Speaker of Parliament in regard to the matter after the legislator twice skipped court.

This was apparently after they contacted the legislator informing him about his case before the Court Martial but he vowed never to appear in the Court as advised by his lawyers until after the Constitutional Court had ruled on his petition before it.

Through his lawyers Lukwago and company advocates, Kabaziguruka wants the military Court dissolved, saying it is unlawfully established and has no powers to either try civilians or officers and men of the Uganda Peoples Defence Forces as its jurisdiction is limited to instilling discipline in errant soldiers.

Constitutional Court Judge, Justice Remmy Kasule issued an interim order restraining the General Court Martial from hearing the treason charges against Kabaziguruka until it disposed of his petition.

However, the Court Martial says the order is invalid since the Constitutional Court later declared null and void all interim orders it previously issued, saying they were made in contravention of the constitution.

However, Justice Kasule five days later extended an interim order halting Kabaziguruka’s trial at the Court Martial, assuring him that the status quo would remain in place.

 

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Shoprite closed again over selling rotten meat

Shoprite Supermarket Lugogo has been stopped from selling meat.

The Kampala Capital City Authority inspection team found its hygiene way below the set standards in addition to having rotten meat in its section.

According to KCCA, the supermarket was found selling stale meat that is not fit for human consumption.

 

It also found that the supermarket had improper meat waste disposal practices. It also “failed to follow the meat hygiene codes and standards in addition to having poor wastewater drainage in the meat section which is a source of contamination.”

The meat processing at Shoprite Lugogo was henceforth suspended until “the super market adheres fully to the required codes and standards of practice.”

This is not the first time KCCA is suspending Shoprite supermarket meat section over selling rotten meat and poor hygiene.

In 2014, KCCA closed Shoprite Naalya branch and other 14 supermarkets over selling over failing to observe minimum health and safety standards.

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NTV top boss resigns

NTV boss Agnes Kondo

Nation Media Group the owners of NTV, Daily Monitor, Dembe and KFM rolled out a new restructure last month that saw many workers laid off.

Under the restructure, a new payment policy was rolled out whereby employees will earn in relation to their output unlike before when they earned monthly some senior NTV staff protested the policy last week by not turning up at NTV studios for his show.

The latest to join this queue is the head of marketing at NTV, Collins Mugume. But unlike others, Mugume has already handed in her resignation letter.

We have since established that she is headed to Kwese Sports TV, owned by Zimbabwean businessman Strive Masiya.

Sources at NMG Nairobi reveal that anytime soon, the merge between different entities in the group in Uganda will have one Managing Director a moving which likely to render Agnes Asiimwe Kondo jobless.

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Torture of suspects: Kadaga instructs MPs to visit Nalufenya

Speaker, Rebecca Kadaga

The Speaker of Parliament, Rebecca Kadaga has asked the Committee on Human Rights to visit and examine Nalufenya detention facility then give a report.

Nalufenya has been one of the most discussed places since last week following suspects’ complaints that they had been tortured from the facility.

“During last week, there has been a lot of cover in the media about torture by police. On behalf of the citizens, we are demanding justice, this is a crime against humanity, who are these people?” she told MPs during a plenary.

Among those is Kamwenge mayor Godfrey Byamukama, who was tortured to near-death before he was secretly sneaked in Nakasero Hospital after other public referral hospitals rejected him over his then worrying health state.

His fate remained a secret thanks to the tight security at his hospital ward where neither relatives nor friends were given access.

Other suspects detained at Nalufenya while appearing in Court earlier had complained about torture, pleading they be sent to Luzira maximum prison.

However, his plight became public last week sparking off public outcry both loacally and internationally.

The torture meted out on Byamukama and other suspects has since been condemned by international and local human rights observers.

The Inter-religious council also came out yesterday and condemned the torture of suspects.

Kadaga had earlier demanded that the police officers responsible of torturing suspects should be charged in an open court for their crimes are against humanity.

The committee on Human Rights consists of MPs including former police spokesman, Simeo Nsubuga of Kasanda South, Amodoi Cyrus Imalingat – Toroma, Adong Lilly – Nwoya, Achiro Lucy – Aruu North,  Chekwel Lydia –  Kween District, Mudukoi Fred Oduchu – Butebo, Oula Innocent (Brig) – UPDF, Nabilla Naggayi Ssempala – Kampala, Gilbert Olanya – Kilak South, Harold Tonny Muhindo – Bukonzo East, Komakech Lyandro – Gulu Municipality and. Akol Anthony – Kilak North.

 

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Mutebile speaks out on current high food prices

BoU Governor Emmanuel Tumusiime-Mutebile.

The Governor Bank of Uganda, Emmanuel Tumusiime-Mutebile has spoken out on the current high commodity prices.

Speaking at the Uganda Bankers Association dinner, Mutebile admitted the current food prices threatened causing core inflation though, this had been identified six months back and control measures were put in place to avoid core inflation.

“Some of the upside risks to core inflation, which we had identified six months ago, notably the rising food and fuel prices, and the risk of further exchange rate depreciation, have abated somewhat. Food crop prices have risen steeply – annual food crop inflation was nearly 22 percent in April – but the pass-through to core inflation has been muted,” he told bankers.

“Our forecasts indicate that core inflation should be in line with our 5 per cent policy target in 12 months’ time, which is the time horizon for our monetary policy decisions. Our 12 month forecast for inflation has remained largely unchanged since the end of last year.”

He added that the exchange rate has also been relatively stable in the first half of 2017.

“The nominal effective exchange rate, which takes into account exchange rate movements of the Shilling against all our trading partners, has only depreciated by 1.6 per cent since the end of 2016. We also expect that the current food price shock should have started to ease by the third quarter of this calendar year, as the better weather that we are now experiencing boosts harvests, and that will help to lower headline inflation.”

Meanwhile, Mutebile also refuted the claim that the economy is suffering from a lack of demand.

“Of course, some individual industries may not have sufficient demand to sell all of their output – that will always be the case in any economy – but at the aggregate level there is little evidence to indicate that a lack of demand has depressed real economic growth. If that were the case, we would expect to see that the sectors most badly affected would be the non-traded goods sectors of the economy, because these sectors are dependent fully on domestic demand.

Adding “In fact the very opposite is the case. The services sector, which consists predominantly of nontraded goods industries, did much better than both industry and agriculture in the first half of the fiscal year, while our composite indicator of economic activity indicates that services also grew faster than the other sectors in the third quarter. That suggests that a shortage of aggregate demand is not the cause of the slowdown in growth in 2016/17.”

Mutebile’s remarks come at a time when a Kilogram of sugar costs more than Shs7000 while a kilo of posho for the first time costs more than Shs4000.

 

 

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WizKid, Davido, Tekno & AKA nominated in BET Awards

Musician Tekno

This year’s BET Awards nominations list was released yesterday but for the first time in five years, no artiste from East Africa made it to the list.

The only Africans who make it to the list include Best International Act: AKA (South Africa), Babes Wodumo (South Africa), Davido (Nigeria), Nasty C (South Africa), Stonebwoy  (Ghana), Tekno (Nigeria), Wizkid  (Nigeria) and Mr Eazi  (Nigeria).

Last year 2016 in Los Angeles, South African DJ and Producer Black Coffee went home with the award edging out Wizkid, Yemi Alade, AKA, Cassper Nyovest, Diamond Platnumz, MzVee, and Serge Beynaud.

Coffee became the first South African to win an award in that category. Eddy Kenzo is the only musician to have won a BET Award.

The award ceremony celebrates mass achievements in black entertainment and honors music, sports, television, and movies released between April 1, 2016 and March 31, 2017.

Meanwhile, Beyoncé dominated this year’s nominations with a total of  seven including ‘Best Female R&B/Pop Artist,’ ‘Best Collaboration’ with Kendrick Lamar for “Freedom,” ‘Video of the Year,’ and ‘Album of the Year’ for Lemonade. Bruno Mars follows with five nods including ‘Album of the Year,’ ‘Best Male R&B/Pop artist,’ and ‘video of the year’ for “24K Magic.”  Other nominees include Solange, nominated for four awards and who is up against sister Beyoncé for ‘Best Female R&B/Pop Artist.’

Chance the Rapper and Migos receive four nominations as well,
Chance the Rapper nominated for ‘Best Male Hip-Hop Artist’ and ‘Best New Artist’
and Migos for ‘Best Group’ and ‘Best Collaboration’ for their #1 hit “Bad and  Boujee” with  Lil Uzi Vert.

 

 

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EC set dates for polling for Kyadondo East

The chairperson of the Electoral Commission justice Simon Byabakama has set June 26, 2017 as the polling date for filling a parliamentary seat for   Kyadondo East constituency.

Kyadondo East parliamentary seat fell vacant after the nullification of Apollo Kantiti’s election as the Member of Parliament for Kyadondo East by the High Court Judge Isabirye Kaweesa on grounds that the Electoral Commission did not comply with the electoral laws.

Upon declaration Forum for Democratic Change’s candidate Kantinti as a legislator, NRM candidate William Sitenda Sebalu filed an electoral petition claiming that Kantinti and the EC violated electoral laws and the election was characterized by voter bribery among others.

However the EC chairperson Justice Simon Byabakama admitted the mistake made and pleaded never to do it again.

The nomination of candidates shall be conducted between May 30 – 31, 2017 at the office of the district returning office, Wakiso.

 

 

 

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Gen.Tumukunde promises to work hand in hand with media to make Uganda safe

In the past, many media personnel have suffered under the hand of the rude police and other security agencies where many are manhandled and tortured.

However, after today’s dialogue, the media and security agencies, that might be a thing of the past.

Under the theme media coverage and national security in Uganda, Security Minister, Gen. Henry Tumukunde, convened a dialogue which brought together different media and security persons. The dialogue that was held in a conference room at the Office of the president is one media people will live to talk about.

Tumukunde said the media being ‘second in ‘command’ to security shouldn’t be bashed but rather utilized by government in telling the Ugandan stories.

He also appealed to his counterpart in government to own up whenever a mistake has been committed in line of duty rather than deny.He also fired against police for torturing people who are innocent.

“If the person being held by police is not the right one, have the courtesy to say you were wrong,” Tumukunde said to police. He also called out media on the aspect of fake news sighting that the role of media should be to promote social, and economic development.

The guest of honor Dr. Ruhakana Rugunda, the Prime Minister who spoke about the role of media in National Security. On the panel was also Kin Karisa, the Chief Executive Officer of NBS Television who gravely talked about the need to make our country a peaceful one. “This is our country we need to make it a better place to live in,” he said. Karisa also appealed to government to revive the weekly cabinet press briefing saying it previously the conferences had helped in dissemination of news about government programmes.

While speaking, Dr. Ruhakana Rugunda emphasized the fact that a lot of information is kept in government when in fact it’s for public consumption. “Endeavour as much as possible to make information available,” Rugunda said to government communicators.

The dialogue between security personnel and media practitioners is meant to bridge the gap the two sides of common interest. Wheres journalist gather news for publication, intelligence or security agencies gather information for consumption making information the common good.

 

 

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