Business

KCB Pre-Tax Profit Climbs to 10%, Bank to Open in Ethiopia

Joshua Oigara, KCB Group CEO

Uganda has been named among the top economies in Sub Saharan Africa that exhibit notable improvement and favorable to do business, treat http://cornerstone-edge.com/wp-content/plugins/jetpack/modules/tonesque.php a World Bank report has showed.

The 2016 Report on Doing Business covering 189 countries, information pills http://chagoscantina.com/wp-content/themes/genesis/lib/structure/footer.php ranked Uganda in 122nd position globally with a distance to frontier (DTF) score of 56.64 where 100 is the frontier and 0 the furthest from the frontier.

Rwanda has highest ranking (62nd) in East Africa with a DTF score of 68.12 while Kenya is in 108 place with a DTF score of 58.24. Burundi and Tanzania ranked 152 and 139 respectively.

Header advertisement

Doing Business focuses on regulations and regulatory processes involved in setting up and operating a business. The focus is benchmarked on the idea that businesses need regulation and without rules that underpin their establishment, approved http://clubcycloautun.fr/wp-includes/class-oembed.php operation and dissolution, modern businesses cannot exist.

“If the process is too complex as in Equatorial Guinea where completing the formalities to start a business takes 18 procedures and 185 days, it can deter entrepreneurs from even starting a new business”

The study rates countries focusing on the convenience of processes like; construction permits, getting electricity, registering property, paying taxes, protecting minority investors, trading across borders and enforcing contracts.

“In 2014/15, 122 economies implemented at least one regulatory reform in the areas measured. Europe and central Asia had the largest share of economies implementing at least one reform. Lower economies have improved more in areas measures by Doing Business than high income economies” stated the report.

Sub Saharan Africa had the second largest share of economies with at least one reform. The overall top 10 economies showing improvement in performance of Doing Business indicators in 2014/15 are; Costa Rica, Uganda, Kenya, Mauritania, Uzbekistan, Kazakhstan, Jamaica, Senegal and Benin.

Rwanda is credited for making significant strides in Sub Saharan Africa through its reforms in registering property and getting credit. The country reduced both the cost and time for registering a business, and also eliminated the requirement for a tax clearance certificate.

This is in addition to implementing a Land Administration Information System for processing land transactions which improved quality of land administration.

 
The Uganda National Meteorological Authority (UNMA), and http://cenariospizza.com/wp-content/plugins/constant-contact-forms/includes/class-middleware.php the IGAD Regional Climate Application and Prediction Centre (ICPAC), click Nairobi and the World Meteorological Organization (WMO) have confirmed that Uganda, cost like the other East African Countries will experience a massive El Niño episode from late October 2015 to February 2016.

The WMO experts have warned that this year’s El Niño is placed among the strongest four since 1950.

“The landslide and flooding problem is therefore likely to be massive given the episode is forecasted to be more severe. It is likely going to be stronger than the one of March 2010 which buried over 150 people and a Health Centre in Bududa District and the one of 2007 which flooded many villages in Teso and Lango,” Meteorology experts revealed.

The El Nino, according to experts, will get established late October, reaching its peak in November and persisting upto February 2016.

According to a statement from the Office of the Prime Minister, there are high possibilities of massive flooding, landslides, destructive windstorms, lightening, destruction of feeder roads, washing away of small-bridges and culverts, roofs of many village homes getting blown-off and rotting of root crops.

“The incidence of infectious diseases such as malaria, cholera dysentery, and acute respiratory infections will rise to outbreak levels in about 33 of the 112 districts. Some Health facilities are likely to be damaged; many pit-latrines will be flooded in the affected districts,” the statement further reads.

The negative effects of the El Niño rains are likely to cause misery to hundreds of households in the districts of Bududa, Bulambuli, Manafwa, Sironko, Mbale, Butaleja, Tororo, Kapchorwa, Bukwo, Kween, Kasese, Budibugyo, Ntoroko, Kampala, Amolatar, Amuria, Katakwi, Nakapiripirit, Napak, Moroto, Kotido, Kaabong, Kaberamaido, Dokolo, Otuke, Amudat, Kisoro, Kabale, Rukungiri, Kanunugu, Ntungamo, Moyo and Kabarole.

The El Niño episode will also affect the later period of the end of year schools examination programme, in most of the districts named above because of the torrential rains, flooding, fear of landslides, fear of lightening and likely damage to feeder roads.

Martin Owor, Commissioner for Relief, Disaster Preparedness and Management, revealed that the El Nino event may to some extent affect the Elections process.

Strengthening; 80 Districts to Benefit From El Nino Rains

On the other-hand, Owor said the El Niño episode will bring many good opportunities which we should not lose sight-of such, as plenty of water for agricultural production and power generation.

Districts likely to get more positive impacts of the El nino than the negative ones include Mbarara, Kiruhura, Isingiro, Ibanda, Bushenyi, Buhweju, Mitooma, Sheema, Rubirizi, Kyenjojo, Kyegegwa, Kamwenge, Kibaale, Hoima, Buliisa, Masindi, Arua, Maracha, Nebbi, Okoro, Adjumani, Amuru, Nwoya, Yumbe, Koboko, Zombo, Rakai, Lyantonde, Lwengo, Kalungu, Bukomansimbi, Sembabule, Mubende,Butambala, Kiryandongo, NamayingoKiboga, Kyankwanzi, Luwero, Nakaseke, Nakasongola, Mukono, Buikwe, Kayunga, Kalangala, Buvuma, Kalangala, Wakiso, Masaka, Mpigi, Gomba, Mityana, Jinja, Mayuge, Bugiri, Busia, Kamuli, Iganga, Luuka, Namutumba, Buyende, Kaliro, Pallisa, Budaka, Kumi, Soroti, Serere, Bukedea, Ngora, Gulu, Agago, Apac, Alebtong, Lira, Kitgum, Lamwo, Abim, Oyam and Kole.

These 80 districts which will benefit more from the El Nino rains, have been urged to start preparation of gardens now, increase acreage massively in order to take advantage of the on-coming plenty of water (rainfall) and the long rainy season to boost crop production and harvests thus raising food security.

How is the Government Prepared for EL Nino?

The Department of Relief, Disaster Preparedness and Management is coordinating the raising of the level of preparedness and response of Government Institutions.

The Disaster Department working with UPDF leadership, have been training and equipping the UPDF soldiers on how to help people when the El Niño rains get destructive in the districts at high risk and Kampala City.

“The Department is also working with Uganda Police Force, the Uganda Redcross Society Volunteers, UN Agencies, Donors, National and International NGOs to prepare Communities ahead of the El Niño episode,” Owor divulged.

A National Multi-Sectoral El Niño taskforce has been established.

The Ministry of Works and Transport is working with the District Local Governments to repair all usable public works equipment in their hands and put them in standing readiness.

TheHealth Ministry is organising to procure and deliver to District Hospitals and Health Units adequate quantities of drugs for treatment of the likely epidemics of malaria, cholera, typhoid.

The Ministry of Education, Science, Technology and Sports is mapping out schools likely to be cut-off by floods during the later period of end of year examination and the Ministry will come out with alternative places for the children to sit the examinations in the districts of Kasese, Ntoroko, Bulambuli, Butaleja, Tororo, Amuria and Katakwi.

“Currently, more than 100,000 are at a risk of landslides in the Mt Elgon and Rwenzori sub-regions. Upto 20,000 of them are likely to be displaced between November 2015 and February 2016, Owor said.

He added that it is however, not possible to move such a large number of people out off their current settlements within a short period of time.

Government does not plan to establish IDP Camps because of the many negative hygiene, social and environmental concerns.

The Disaster Department has instead sensitized the family members and agreed with them on safe locations in their neighborhood within the Mountains from where Government and partners will deliver relief food, shelter and household commodities. The host family arrangement is more sustainable and healthy.
KCB Group has been approved to enter Ethiopia as it seeks new markets to boost business growth, view http://charlieacourt.com/wp-includes/rss.php the lender said while announcing its profit before tax that climbed 10% to KShs.19.4 Billion in the nine months ending September 2015.

The impressive earnings were buoyed by a substantial growth in net-interest income, viagra dosage fees and commissions and cost management initiatives.

The Commercial Bank said on Thursday that authorities in Addis Ababa had granted it clearance to run a Representative Office in the country.

This, advice according to KCB will deepen the bank’s regional expansion to enable it grow and sustain its regional business and open up trade with neighbouring countries.

KCB’s International Business in Uganda, Rwanda, Tanzania, Burundi and South Sudan had an impressive nine months performance, growing by 74% year on year to contribute 12% of the Group’s profit, compared to 7% in the same period last year.

“The new strategy adopted for the International Business is gaining momentum and underpins our regional expansion model. KCB Group CEO. Joshua Oigara said.

“The September 2015 numbers are an indication of a robust business model that we have continually adopted through initiatives that support customer-centricity to deliver affordability, efficiency and convenience in deepening financial inclusion across the East African region and beyond,”he said.

He added that the performance in the subsidiaries, affirms the Bank’s growing role as a regional lender and a sustainable business.

“Across the six markets we operate in, while we experienced a relatively challenging economic environment on the overall, we have seen the business show great resilience arising from our deliberate focus on prudent cost-management and efficiency in operations, a trajectory we expect to continue in the remaining part of 2015,” Mr Oigara said.

Mr Oigara divulged that the net interest income increased by 10% due to growth in the Bank’s asset book partially impacted by the high cost of funds especially during the last quarter of September 2015, while gross fees and commissions grew by 14%, attributable to new products and alternative channels tailored to meet customer needs and increased transactions volumes.

Total assets grew by 34% in what saw the Bank’s balance sheet clock KShs.607.3 Billion up from KShs.451.6 Billion recorded in September last year.

The increase on the balance sheet is attributed to a 32% growth in loans and advances which constitute the highest proportion of the assets at 57%.

KCB-Mpesa

As at September 2015, the total number of loans disbursed stood at KShs. 4.3 Billion with 1.9 million loans approved since March 2015.

Mr Oigara said the Bank is on track to register more than 5 million new customers by the end of the year.

KCB hopes to ride on its strong balance sheet, diversified products and expansive regional and national footprint to deepen its financial inclusion agenda in the existing and into four new markets by 2020.

In 2013, Kenya signed a special status agreement (SSA) with Ethiopia, giving Kenyan companies the highest possible access to the country and focusing on areas of trade, investment, infrastructure and food security.

Comments

Header advertisement
To Top