Business & Money
Equity:First Bank to Surpass Ksh 1 Trillion in Deposits within East and Central Africa Region
Within three years, the lender plans to triple its balance sheet by expanding trade finance in the six African nations it operates, according to Chief Executive Officer James Mwangi.
: Equity Group Holdings Becomes First East and Central African Bank to Surpass Ksh 1 Trillion in Deposits, Aims for Ksh 3 Trillion Balance Sheet by 2025
By Charles Wachira
Depositors of Equity Group Holdings PLC , Kenya’s biggest lender by assets have surpassed the Ksh 1 trillion ( US$ 8,184,645,600) threshold, a first occurrence for a financial institution drawn from the East and Central African region.
Quoting a highly placed source from the bank who sought anonymity the local Star newspaper on Nov 21 said the bank was mobilizing an average of Ksh 324 million ((US$ 2,651,825.17) daily and was only waiting for a greenlight from the Capital Markets Authority to announce the new development.
Attempts to validate the story from the bank came a cropper.
And according to the Daily, by the end of June 22 deposits at the bank were valued at Ksh 970.9 million ( US$ 7,945,171.80) which meant the lender required Ksh 29.1 billion ( US$ 238,134,204.60) to hit one trillion shillings.
Presently, Equity Bank has 16.9 million customers making it the largest bank in terms of customer base in Africa and having nearly half of bank accounts in Kenya.
Within three years, the lender plans to triple its balance sheet by expanding trade finance in the six African nations it operates, according to Chief Executive Officer James Mwangi.
The balance sheet of Kenya’s largest lender may reach 3 trillion shillings ($25 billion) by 2025 after it doubled over the past two years, Mwangi told investors this Aug 23 Tuesday.
Besides Kenya, this 38-year-old Bank has subsidiaries in Uganda, South Sudan, Rwanda, Tanzania, DRC, and a Commercial Representative Office in Ethiopia but has plans to have a presence in nine other countries by 2026.
Keywords:Equity Group Holdings deposits:Ksh 1 trillion milestone:East and Central Africa banking:Trade finance expansion:Balance sheet growth to Ksh 3 trillion
Business & Money
Watchdog Probes Coca-Cola for Anti-Competitive Behavior in 19 African Countries
This investigation centers on the future of competition in Africa’s booming beverage market, valued at billions annually. With over 1.4 billion people and a young, urbanizing demographic, Africa is a crucial growth market for global firms like Coca-Cola. However, regulatory frameworks are tightening as governments and consumer protection agencies strive to establish a fair playing field for all businesses.
:Coca-Cola Faces Major Anti-Competitive Probe Across 19 African Countries: Regulatory Watchdogs Targeting Fair Competition, Beverage Market, Monopoly Concerns, and Business Practices
By Charles Wachira
The Coca-Cola Company, one of the world’s largest beverage manufacturers, is under investigation by a coalition of African competition watchdogs for allegedly engaging in anti-competitive practices across 19 African countries. This major probe comes amid growing concerns that the company has been using its dominant market position to stifle competition, limiting choices for consumers and creating barriers for smaller beverage firms trying to enter the market.
Why the Probe Was Initiated
The investigation was triggered in August 2024 following complaints from local competitors and regulatory authorities, alleging that Coca-Cola had been involved in activities that violate fair competition laws. The specific allegations include exclusive supply agreements with retailers, preferential pricing arrangements with distributors, and practices that prevent rival brands from gaining shelf space in key outlets.
The complaint gained traction when smaller beverage companies accused Coca-Cola of using its vast distribution network to monopolize the market, especially in countries where the regulatory framework is still developing. These smaller firms argue that Coca-Cola’s influence on the supply chain has marginalized their products, limiting consumer choice and hindering competition.
The probe is a joint effort initiated by the African Competition Network (ACN), an umbrella organization that brings together competition authorities from various African nations. The ACN was formed to ensure a unified approach to cross-border competition issues on the continent. According to sources, this investigation is one of the largest of its kind ever conducted in Africa.
Countries Involved
The 19 African nations involved in the investigation are spread across East, West, Central, and Southern Africa, indicating that Coca-Cola’s business practices have raised widespread concerns. These countries include:
- Kenya
- South Africa
- Nigeria
- Ghana
- Tanzania
- Uganda
- Ethiopia
- Rwanda
- Zambia
- Zimbabwe
- Botswana
- Namibia
- Mozambique
- Malawi
- Angola
- Ivory Coast
- Cameroon
- Senegal
- Democratic Republic of Congo (DRC)
The inclusion of some of Africa’s largest and most dynamic economies, such as South Africa, Kenya, Nigeria, and Ethiopia, underscores the significant stakes involved. Coca-Cola has a long history of dominance in these markets, often considered critical to its African operations due to their large populations and growing middle class.
What is at Stake
At the heart of this investigation is the future of competition in Africa’s rapidly growing beverage market, estimated to be worth billions of dollars annually. With more than 1.4 billion people across the continent and a young, urbanizing population, Africa is seen as a key growth market for global companies like Coca-Cola. However, the regulatory environment is also tightening as governments and consumer protection agencies work to create a level playing field for all businesses.
The stakes for Coca-Cola are high. If the company is found guilty of anti-competitive behavior, it could face significant fines, sanctions, and even restrictions on its operations in some of these countries. Additionally, Coca-Cola could be required to revise its distribution contracts and change its business model in key African markets, which may impact its profitability and market share.
There are also broader implications for the business community. This investigation signals to multinational corporations that African regulatory bodies are becoming more vigilant about enforcing competition laws, even for industry giants like Coca-Cola.
The Initiation of the Probe
The probe was officially launched by Kenya’s Competition Authority (CAK) in August 2024 after it raised concerns following complaints from local bottlers and distributors. CAK’s then acting Director-General, Adan Wario, emphasized the need for competition in the beverage sector, which he said is vital to ensuring consumer choice.
“Competition in the beverage market is essential to ensuring that consumers have access to a variety of choices at fair prices. We have observed practices that could potentially limit competition and harm both consumers and small businesses,” said Kariuki during a press briefing on August 18, 2024.
The concerns raised by Kenya’s competition body quickly gained attention from other regulatory agencies, leading to the formation of a broader coalition under the African Competition Network. The ACN’s chairperson, Thabo Maseko, who also heads South Africa’s Competition Commission, underscored the importance of this investigation:
“This investigation marks a milestone in African competition law enforcement. It highlights our collective commitment to creating an environment where businesses, regardless of their size, can compete fairly. No company should be allowed to use its size and influence to undermine competition, especially in markets as important as ours.”
Coca-Cola’s Response
In response to the investigation, Coca-Cola has denied any wrongdoing. In a statement, Patricia Obozuwa, Vice President for Public Affairs, Communications, and Sustainability at Coca-Cola Africa, stated:
“We are fully cooperating with the authorities and remain confident that our business practices comply with all local competition laws. Coca-Cola has a long history of supporting economic development in Africa, and we continue to prioritize fair competition and consumer choice in all our markets.”
Obozuwa also underscored Coca-Cola’s role in building a robust distribution network that benefits many small businesses across the continent. “We work closely with thousands of local suppliers, distributors, and retailers across Africa. Our relationships help drive economic growth and create jobs, and we have always upheld high ethical standards in all our operations.”
Next Steps and Potential Outcomes
The ACN has indicated that the investigation will be thorough and is expected to take several months. Officials have projected that the probe could be concluded by early 2025, depending on the complexity of the findings. The watchdog will conduct detailed market investigations, including interviews with retailers, distributors, and competitors of Coca-Cola in the affected countries.
If Coca-Cola is found guilty, penalties could range from hefty fines to orders to dissolve exclusive agreements. In some countries, Coca-Cola could face more drastic measures, such as restrictions on its ability to enter new distribution contracts or sell certain products.
The Growing Importance of Competition Law in Africa
This investigation into Coca-Cola’s practices reflects the increasing attention African countries are paying to competition law, particularly as foreign investment grows across the continent. Authorities are more focused on ensuring that multinational corporations do not exploit weak regulations or fragmented legal frameworks to maintain monopolistic control over key industries.
As Maseko pointed out during a press briefing, “Africa is no longer a region where companies can ignore local laws with impunity. Our economies are maturing, and so are our regulatory capabilities. This investigation will set an important precedent for how we handle competition issues in the future.”
Conclusion
The probe into Coca-Cola’s alleged anti-competitive behavior across 19 African nations marks a pivotal moment in the enforcement of competition laws on the continent. As regulatory authorities work together to ensure a level playing field, the outcome of this investigation, which is expected to conclude by early 2025, will have far-reaching implications, not only for Coca-Cola but also for how multinational corporations conduct business in Africa’s burgeoning markets.
Keywords: Coca-Cola, Anti-Competitive Probe, African Countries, Beverage Market, Monopoly Concerns
Business & Money
Former Kenya Power MD Ben Chumo Dragged Into KSh 40 Million Land Dispute Amid High-Profile Divorce Case
The case revolves around a prime piece of land in Kitengela, Kajiado County, which businessman Philip Kiptum sold to Ben Chumo for KSh 40 million in 2020. However, Edna Jeptoo, the estranged wife of Kiptum claims the land, valued at KSh 50 million, was part of their matrimonial estate and was sold without her consent to hide assets ahead of their divorce settlement.
: Former Kenya Power MD Ben Chumo became entangled in a Kajiado land dispute after purchasing a KSh 40 million Kitengela property, now at the centre of a high-profile divorce battle between businessman Philip Kiptum and his estranged wife, Edna Jeptoo.
By Charles Wachira
Former Kenya Power Managing Director, Ben Chumo, has become embroiled in a high-profile divorce dispute between Philip Kiptum, a prominent businessman, and his estranged wife, Edna Jeptoo. The case revolves around a prime piece of land in Kitengela, Kajiado County, which Kiptum sold to Chumo for KSh 40 million in 2020. However, Jeptoo claims the land, valued at KSh 50 million, was part of their matrimonial estate and was sold without her consent in an effort to hide assets ahead of their divorce settlement.
The Contested Land and Transaction
The disputed Kitengela property became a focal point of the legal battle when it emerged that Kiptum had sold it to Chumo during the couple’s ongoing divorce proceedings. Jeptoo’s legal team accused Kiptum of intentionally orchestrating the sale to diminish her rightful share of the couple’s joint assets. She insisted that the land was part of their matrimonial estate, a claim that complicated the transaction and eventually led to a court battle.
Kiptum, a businessman with significant investments in real estate development and commercial farming, defended the sale, arguing that the land was not intended to be part of the matrimonial assets. He maintained that the sale to Chumo was a legitimate business transaction conducted within his normal business operations.
Ben Chumo’s Involvement
Ben Chumo, who had made the land purchase as a business investment, found himself drawn into the legal dispute when Jeptoo challenged the sale. Represented by lawyer Mutula Kilonzo Jr., Chumo argued that he had entered the deal in good faith, unaware of any ongoing matrimonial dispute over the property. His legal team asserted that the transaction followed all legal protocols and was handled through proper channels.
“My client, Mr. Chumo, was approached by Mr. Kiptum as an investor interested in acquiring the Kitengela property. The purchase was made following legal procedures, and he had no knowledge of any matrimonial claims related to the land,” Kilonzo Jr. told the court during proceedings.
Jeptoo’s Claims and Court Proceedings
Jeptoo, however, presented a different narrative. She claimed that the sale was a deliberate attempt by Kiptum to hide matrimonial assets and deprive her of her rightful share. In her court filings, she accused Kiptum of undervaluing the property by selling it for KSh 40 million, despite its actual value being KSh 50 million. Jeptoo argued that the land was part of their joint investments and that her husband had sold it without her knowledge or consent.
Her legal team urged the court to void the sale, arguing that it was conducted in bad faith and without full disclosure. They sought to have the land included in the matrimonial estate and subject to division as part of the couple’s divorce settlement.
Court Ruling and Ownership Status
After months of legal proceedings, Justice Maureen Odero delivered her ruling in late 2023. The court found that the Kitengela land was indeed part of the matrimonial estate and that Kiptum had sold the property without proper consultation or disclosure to Jeptoo. Justice Odero nullified the sale to Chumo, ruling that the property should be returned to the matrimonial estate for equitable division between Kiptum and Jeptoo.
However, the court recognized that Chumo had acted in good faith, unaware of the ongoing dispute. As a result, he was awarded KSh 40 million in compensation for the canceled transaction, to be paid by Kiptum. Additionally, Kiptum was ordered to cover Chumo’s legal costs resulting from the dispute.
Current Ownership of the Land
Following the court’s ruling, the Kitengela property is now part of the matrimonial estate of Philip Kiptum and Edna Jeptoo. While the land remains in joint ownership for the time being, its eventual division is expected as part of the ongoing divorce settlement. Both parties will have to reach an agreement or await further court orders regarding any future sale or development of the property.
Business Background of Philip Kiptum
Kiptum is a well-known businessman with a portfolio of investments in real estate and agriculture. His real estate ventures focus on acquiring and developing properties in fast-growing areas such as Kitengela. He is also involved in commercial farming, supplying agricultural products both locally and internationally. The sale of the Kitengela land to Chumo was part of his real estate dealings, which have come under scrutiny due to the legal battle with Jeptoo.
Public Reaction and Implications
The ruling has sent ripples through Kenya’s real estate and business communities, highlighting the risks associated with property deals that involve matrimonial disputes. While Chumo has been exonerated, his involvement in the high-profile case has brought attention to the importance of due diligence in property transactions, especially when disputes over ownership are present.
For Kiptum, the ruling has dealt a blow to his public image, with the court finding that he attempted to conceal assets from his wife. Jeptoo, on the other hand, has been vindicated in her claim, with the court affirming her right to a share of the contested property.
As the Kitengela land returns to the marital estate, the next phase of the divorce case will focus on dividing the remaining assets. Still, the controversy surrounding the property has left a lasting mark on the proceedings.
Keywords: Ben Chumo land dispute: Kitengela property battle: KSh 40 million land sale: Philip Kiptum divorce case: Kajiado County real estate
Business & Money
JPMorgan Chase Enters Kenya with Central Bank License: A Landmark Move for East Africa’s Financial Hub
“JPMorgan’s decision to establish a representative office in Kenya affirms the confidence that global financial institutions have in our economy. It is a strong signal that Kenya is a key player in the financial architecture of Africa, and we look forward to welcoming more international investments,”said CBK Governor Kamau Thugge.
: JPMorgan Chase has been granted a license by the Central Bank of Kenya to establish a representative office in Nairobi, marking the U.S. banking giant’s strategic expansion into East Africa. This move strengthens Kenya’s position as a financial hub and opens doors for increased foreign investment and partnerships in the region
By Charles Wachira
In a major development for Kenya’s financial sector, the Central Bank of Kenya (CBK) on October 14, 2024, granted a license to JPMorgan Chase, one of the largest banking institutions globally, with assets totaling over $4.1 trillion. The bank has been authorized to open a representative office in Nairobi, marking a significant step in its long-anticipated entry into East Africa’s biggest economy.
The establishment of the JPMorgan Chase N.A. Representative Office Kenya comes just ahead of a scheduled visit by JPMorgan CEO Jamie Dimon, who is set to tour Kenya, Nigeria, South Africa, and Côte d’Ivoire as part of the bank’s strategy to expand its footprint across the African continent.
“The Central Bank of Kenya (CBK) announces the granting of authority to JPMorgan Chase Bank N.A. of the United States to establish a representative office in Kenya by the name JPMorgan Chase N.A. Representative Office Kenya. This authority is granted pursuant to Section 43 of the Banking Act and follows the fulfillment by JPMorgan of the stipulated requirements,” CBK said in its official statement.
What a Representative Office Means for Kenya
Under Kenyan law, foreign banks’ representative offices serve as marketing and liaison branches but are not allowed to conduct direct banking transactions, such as accepting deposits or offering loans. Instead, they focus on marketing their services and signing deals on behalf of their parent banks. The JPMorgan office in Nairobi will follow this model, seeking to market its banking services while capitalizing on large-scale transactions that local banks may not be well-equipped to handle.
This move ends a decade-long wait for JPMorgan, which initially expressed interest in entering the Kenyan market back in 2012. With this development, JPMorgan becomes the second U.S. bank with a presence in Nairobi, joining CitiBank in targeting multinationals and sovereign debt deals in East Africa.
CBK noted that JPMorgan’s entry into Kenya will not only diversify the country’s financial sector but also catalyze trade and investment across the region.
“The JPMorgan Chase Bank N.A Representative Office Kenya will contribute to the diversity of Kenya’s financial sector and catalyze trade and investments. Additionally, the authorization of the representative office affirms Kenya’s standing as a premier financial services hub,” the CBK said in a statement.
A Global Giant Eyes East Africa
JPMorgan Chase, already a significant player in Africa with offices in Nigeria and South Africa, is now targeting Kenya as its East African hub. The bank’s operations on the continent largely revolve around asset management, commercial banking, and investment services, particularly for multinational corporations and sovereign debt transactions. This expansion into Kenya aligns with the bank’s strategy of tapping into emerging markets for growth.
CEO Jamie Dimon’s upcoming visit to Kenya is expected to reinforce the bank’s long-term commitment to the region. Dimon has been vocal about JPMorgan’s interest in expanding across Africa, having hired a team in 2018 to explore opportunities in Kenya and Ghana. Now, with Kenya officially on board, JPMorgan is looking to increase its involvement in major corporate and sovereign debt deals across the continent.
Why Now?
The timing of JPMorgan’s entry is particularly significant as it comes at a time when global financial institutions are increasingly eyeing Africa for investment opportunities. In 2023, Kenya selected JPMorgan, alongside CitiBank and Standard Chartered Bank, as lead arrangers for its Eurobond, underscoring the bank’s growing involvement in the region’s financial activities.
The new office in Nairobi positions JPMorgan to capture a larger share of East Africa’s growing market, with a particular focus on serving U.S. multinationals, wealth funds, and institutional investors operating in the region. Dimon’s visit is also expected to include discussions on expanding operations to other emerging financial hubs like Côte d’Ivoire, which could further cement the bank’s presence on the continent.
Economic Impact and Opportunities
JPMorgan’s entry into Kenya is a win for the country’s ambition to become the premier financial services hub in East Africa. With the bank’s arrival, Kenya stands to gain from increased foreign direct investment, job creation, and access to global financial expertise. For local businesses, particularly those dealing with large-scale investments, JPMorgan’s presence offers new opportunities for growth and partnership.
This move is also symbolic of Kenya’s growing integration into global financial markets. As the country continues to develop infrastructure and deepen financial reforms under its Vision 2030 agenda, attracting global financial giants like JPMorgan reaffirms its standing as a key player in Africa’s economic transformation.
Looking Ahead
As JPMorgan Chase begins its operations in Nairobi, Kenya is likely to see further inflows of foreign capital and interest from other global financial institutions looking to tap into the East African market. The move sets a precedent, positioning Kenya not just as a regional leader, but as a gateway to Africa for global financial services.
In the words of CBK Governor Kamau Thugge, “JPMorgan’s decision to establish a representative office in Kenya affirms the confidence that global financial institutions have in our economy. It is a strong signal that Kenya is a key player in the financial architecture of Africa, and we look forward to welcoming more international investments.”
JPMorgan’s Nairobi office will serve as a cornerstone in the bank’s African expansion strategy, reinforcing Kenya’s role as a financial hub and accelerating its economic development goals. As the country welcomes this new chapter, the future of Kenya’s financial sector looks poised for unprecedented growth.
Keywords:JPMorgan Chase Kenya:Nairobi financial hub:JPMorgan East Africa expansion:Kenya foreign investment::Global banks in Africa
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