Summary Of The Business Daily Newspaper -Aug 20,2025
Page 1: Reports indicate that KCB Group is pursuing expansion into Ethiopia by initiating talks to acquire a local bank within 18 months. This strategic move, funded partly by the proceeds from the sale of its National Bank of Kenya, is part of the group’s broader growth strategy. The goal is to establish a significant presence in a market currently dominated by the state-owned Commercial Bank of Ethiopia.
Page 2: Reports show that a significant majority of Kenyans, 68%, have abandoned plans to take out new loans in the next year. This is primarily due to persistently high borrowing costs, as commercial banks have been slow to pass on cuts to the Central Bank Rate. High credit costs, alongside concerns about income stability and loan rejection, continue to severely limit access to formal financing.
Page 4: Reports confirm that the Kenyan Treasury failed to disburse any funds to counties in July 2025, the first month of the new financial year. This failure to release the scheduled Sh34.6 billion breaks from a recent trend and risks reigniting conflicts with the Council of Governors. Counties are budgeted to receive Sh415 billion in equitable share revenue and an additional Sh93.5 billion in grants during the 2025/26 fiscal year.
Page 5: Reports state that Kenya has secured Sh8.3 billion in financing from Germany and the European Union to modernize the aging Gogo Hydro Power Plant. The project will increase the plant’s output more than fourfold, from 2 megawatts to 8.6 megawatts, to improve the unstable electricity supply in Western Kenya. The funding consists of a concessional loan and a grant, with the state-owned KenGen set to implement the project.
Page 6: Reports confirm that Family Bank Kenya is aiming to raise approximately Sh6.2 billion through a private placement from select investors. This capital raise is intended to fund its next phase of business growth after strong performance thinned its capital ratios. The private placement is scheduled to close at the end of August 2025 and will be supplemented by retained earnings.
Page 7: Reports indicate that Liberty Kenya Holdings recorded a Sh503 million gain from the sale of its 60% stake in Heritage Insurance Tanzania. Despite this gain, the insurer’s half-year net earnings fell 59% due to a significant increase in motor and medical claims. The weaker operating results have diminished the prospects of a similar special dividend for shareholders in the near term.
Page 10: Reports show that despite the dominance of digital banking channels, many customers feel a lack of genuine human connection and empathetic interaction. Data indicates this shift has not eliminated the need for personal relationships within the banking sector. There is a growing expectation for banks to successfully blend digital efficiency with a human-centric approach.
Page 14: Reports state that the Kenyan government raised Sh95 billion from an oversubscribed infrastructure bond auction, but the entire amount was used to repay a maturing bond. To raise new funds, the Treasury has now opened a Sh50 billion tap sale of the same bonds on a first-come, first-served basis. The tap sale offers the bonds at the same discounted prices as the primary auction.
Page 19: Reports indicate that a growing number of Kenyan men are enthusiastically embracing indoor plant cultivation as a therapeutic hobby. These “plant dads” dedicate time to care for their plants, share cuttings, and have formed a community around this passion. For practitioners, the hobby teaches valuable life lessons in patience, nurturing growth, and the importance of consistent care.
Page 24: Reports confirm that the International Court of Justice has issued a landmark advisory opinion declaring that State Parties have binding legal obligations to protect the climate system. This opinion addresses the market failure where emitters do not bear the costs of the damage inflicted by their greenhouse gas emissions. The ruling also outlines the legal consequences for states that violate these obligations, marking a significant step in addressing the climate crisis.