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: 19 November 2021; Hits: 5582

KCB to increase agriculture lending & issue Kenya’s first Green Bond in 2022

Q3 Results

By George Munene

The Kenya Commercial Bank, Kenya’s biggest bank by assets, plans to strengthen its lending in agriculture, energy, infrastructure, and housing projects. This according to Chief Executive Officer Joshua Oigara should contribute to the bank’s loan book growing by as much as 20 per cent in the coming year.

The bank also plans on issuing the nation’s first green bond by a commercial lender in 2022, “A green bond is one of the key actions we are looking at in our market,” Oigara said in an interview on Thursday. “We are probably the most ready institution to move in that direction in the coming year.”

This is in pursuit of its green ambition and in the wake of the 2021 United Nations Climate Change Conference, also known as COP26, in which the Group joined other global institutions in signing up to a Net Zero emissions target by 2050.

The Nairobi-based bank with operations in six eastern African markets is training employees to check customer’s environmental and social impact before lending. KCB expects loans for climate-friendly projects to account for 25% of its total loan book by the end of 2024, from 7%, according to Oigara.

He was speaking while announcing 131% jump in net profit from Sh.10.9 billion in 2020 to Sh.25.2 billion this year which the bank said was driven by higher income and reduced provisions as recovery from the COVID-19 pandemic accelerated in the third quarter of 2021.

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: 19 November 2021; Hits: 14862

Kenya in talks to begin meat export to Egypt

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By George Munene

Talks are ongoing between Nairobi and Cairo for The Kenya Meat Commission to begin export of Kenyan meat products to Egypt.

“There has been ongoing engagement between The Kenya Meat Commission and Egyptian authorities for over two years and we should hopefully see Kenyan meat in the Egyptian market in the next six months, said Joff Otieno,” Kenyan Ambassador to Egypt.

Egypt imports meat from Australia and Brazil with the average distance between the two nations and Egypt being 11,000 kilometres. This inflates the eventual price of the products which trickles down to the consumer with a kilogram of beef in Egypt costing double what it does in Kenya.

The distance from Kenya to Egypt is a much more manageable 2,928 kilometres. Both Egypt and Kenya being members of the Common Market for Eastern and Southern Africa (COMESA) means all goods exported between the two states are exempt from custom duties, fees and other taxes.

“There is a big market here for meat and livestock products because Egyptians do eat a lot of meat, ” Otieno explained.

Cairo forecasts Egypt’s cattle total slaughter in 2021 at 1.79 million head, up by 1.5 percent or increasing by 25,000 animals. In terms of trade Egypt’s live cattle imports forecasts in 2021 were 200,000 head. The import share of meat into the country is scheduled to increase due to beef production input costs being high in the North African nation.

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: 18 November 2021; Hits: 6342

Farmers demand improved maize prices from NCPB to match production cost

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By George Munene

Farmers from Kenya’s grain hub of North Rift Valley have demanded a rise in the price of maize being offered by The National Cereals and Produce Board (NCPB) from Sh.1,305 for a 50 kilogram bag to Sh.3,000 for a 90 kilogram bag. This price farmers say is commensurate to the cost of production.

For a 50 kilogram bag the farmers say a fairer price would be Sh.1,700.

“Given the prevailing cost of production, it is impossible for me to make a profit from selling my maize at current prices, explained Gideon Tanui, an Elgeyo Marakwet maize farmer.

Maize farmers in the country have complained that the agriculture ministry has neglected them and focused on enacting regulations that uplift coffee, tea macadamia, avocado and potato agriculture sub-sectors.

They have vowed not to sell their maize at the prevailing prices.

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