Latest news with #StanbicBank
Zawya
2 days ago
- Business
- Zawya
Tanzania: Stanbic Bank appoints Lugemela as CFVO
Stanbic Bank Tanzania, one of the country's leading commercial banks and a member of the Standard Bank Group of South Africa, has appointed Derick Lugemela as its new Chief Finance and Value Officer. Lugemela, an accomplished finance professional with over a decade of experience in financial strategy, analysis and reporting, will oversee the bank's financial operations and value-driven initiatives. He has previously worked with Stanbic Bank Tanzania in various capacities, including as head of finance for corporate and investment banking (CIB) and as global market / treasury product control manager, giving him an in-depth understanding of the bank's objectives. Lugemela has a proven track record in senior leadership roles. Until his new appointment, he was the general manager of finance at Bank of Africa Tanzania for three years, where he led critical financial strategies and transformation programmes. Previously, he held posts at Tanzania Agricultural Development Bank, where he was the director of finance, and at KPMG East Africa, where he worked as an audit in-charge. He is a certified public accountant, with credentials from the Board of Accountants and Auditors in Tanzania, and is also ACCA qualified. © Copyright IC Publications 2022 Provided by SyndiGate Media Inc. (
Reuters
05-06-2025
- Business
- Reuters
Kenya private sector activity contracts for first time in seven months, PMI shows
NAIROBI, June 5 (Reuters) - Kenya's private sector activity contracted in May for the first time in seven months, hurt by a slowing performance in the construction, wholesale and retail and services sectors, a business survey showed on Thursday. The Stanbic Bank Kenya Purchasing Managers' Index fell to 49.6 in May from 52.0 a month earlier. Readings above 50.0 indicate growth in business activity, while those below that signal contraction. "Total business output contracted at the fastest rate in 10 months in May, although the overall downturn was only slight," Stanbic Bank Kenya said in comments accompanying the survey. "Declines were generally driven by the construction, wholesale and retail and services sectors, whereas output increased in agriculture and manufacturing." Business expectations for the next 12 months were subdued in May, falling to their second-lowest level on record. Just 4% of surveyed firms expect improved performance in the period, the survey said. "Consumers remain hesitant to spend due to concerns about their economic state and the dim outlook," Christopher Legilisho, an economist at Stanbic Bank, said. Kenya's inflation (KECPI=ECI), opens new tab fell to 3.8% year-on-year in May from 4.1% a month earlier, data from the statistics office showed. The economy expanded by 4.7% last year, down from 5.7% in the previous year. The finance ministry forecasts growth of 5.3% in 2025.
Arabian Post
06-05-2025
- Business
- Arabian Post
Kenya's Private Sector Sees Strong Growth Surge in April
Kenya's private sector recorded its most substantial growth in over two years in April, bolstered by increased sales volumes and heightened business activity. The Stanbic Bank Kenya Purchasing Managers' Index revealed that the country's private sector growth surged to a 27-month peak, pointing to a more resilient economic outlook as businesses expanded and demand continued to rise. The PMI for April showed a notable uptick, reaching its highest point since January 2023, marking a significant shift from previous months that had seen varying degrees of stagnation or slow growth. The indicator, which reflects the health of the private sector, registered 54.7 in April, up from 53.9 in March, signalling a robust recovery following challenges posed by global economic headwinds and domestic uncertainties. A reading above 50 indicates growth, and this consistent upward trend suggests that the economic environment is improving. Key drivers of this momentum were solid sales volumes and the strengthening of business activity across multiple sectors. Both manufacturing and services industries witnessed accelerated output, with firms across various industries ramping up production to meet growing demand. This surge has been attributed to increased consumer spending, a stabilising inflationary environment, and more optimistic projections for the rest of the year. Manufacturing, which has often been a pivotal sector in Kenya's economic framework, reported particularly strong performance. The growth in manufacturing output was driven by both local demand and improving export conditions. Producers cited higher order volumes, particularly in food and beverage sectors, with many companies ramping up production in response to stronger domestic and regional demand. The rise in input costs was partly offset by the increased production levels, showcasing an ability to adapt despite external inflationary pressures. See also Rand Dips as Budget Uncertainty Weighs on Markets Services sectors also showed impressive gains. Both business services and trade reported increased activity, with the retail sector expanding rapidly due to a noticeable uptick in consumer confidence and spending. Many businesses attributed their success to efficient cost management, as well as a steady recovery in tourism, which continued to outperform expectations following the pandemic-induced downturn. Notably, hospitality and transport services have seen a consistent increase in demand, which contributed significantly to the services index's growth. Job creation was another positive aspect, with employment levels showing signs of recovery. Firms increased hiring in response to stronger demand for goods and services, which led to a reduction in job vacancies. However, there remain challenges, as firms continue to struggle with high staff turnover and the costs associated with hiring and training, which impact profitability in some cases. Despite this, overall, the labour market shows an optimistic outlook, aided by rising confidence in the economy. The PMI report also indicated an increase in purchasing activity, which signals a boost in future business prospects. Companies were seen investing in stockpiling inventories ahead of expected demand growth, especially in anticipation of events like major government infrastructure projects and upcoming public holidays that often drive higher consumption. While the economic recovery remains fragile in some respects, particularly due to external factors like fluctuating global commodity prices and ongoing geopolitical tensions, businesses across Kenya have managed to weather these challenges more effectively in recent months. However, inflationary pressures continue to linger, with input costs remaining elevated, particularly for fuel and raw materials. These costs, while moderating slightly, are expected to maintain a degree of upward pressure on businesses' operational budgets. See also Zambia Receives Flood Aid from Chinese Women's Federation Despite these challenges, Kenya's economic recovery has been steady. As businesses continue to capitalise on growth opportunities, such as expanding regional trade and enhancing supply chain efficiencies, the overall sentiment remains positive. Kenya's private sector outlook for the remainder of the year remains cautiously optimistic, as businesses anticipate sustained demand in both local and international markets. The government's fiscal policies and infrastructural investments are also expected to bolster this positive trajectory, offering a stable environment for private enterprises to thrive. Export growth, while significant, remains a key area of focus for long-term economic resilience. The Kenyan government's ongoing efforts to expand its export markets, particularly in the agricultural sector, are expected to further strengthen the economy. The sector's performance has been vital, with tea, coffee, and floriculture continuing to perform strongly in international markets. Strategic trade agreements and improved regional integration are expected to provide further opportunities for Kenyan businesses to tap into new markets and diversify their export products.
Reuters
06-05-2025
- Business
- Reuters
Kenya's private sector growth hits 27-month high in April, PMI shows
NAIROBI, May 6 (Reuters) - Kenya's private sector growth accelerated to a 27-month high in April, driven by robust sales volumes and solid business activity, according to the Stanbic Bank Kenya Purchasing Managers' Index (PMI) released on Tuesday. The PMI rose to 52.0 in April, up from 51.7 in March, marking its highest level since January 2023. A reading above 50.0 indicates growth in business activity, while below 50.0 signals contraction. Strengthening customer demand led to the fastest rise in new orders since February 2022, prompting businesses to expand output and increase purchasing activities. "The Kenya PMIs for April reveal a private sector expanding robustly, and at the fastest pace in over two years," said Christopher Legilisho, Economist at Stanbic Bank. Job creation quickened as firms sought to ease workload pressures, with employment growth reaching its strongest level in nearly a year. However, hiring was primarily focused on temporary staff. Cost pressures picked up amid rising demand, but inflation remained modest compared to historical trends. Input costs rose to a three-month high, driven by supply shortfalls and increased taxation, yet the rate of inflation was below the long-term average. Despite the positive momentum, business expectations remained among the weakest in the survey's history, with only 5% of firms anticipating output growth over the next 12 months. Legilisho noted, "Overall, the April PMI implies a steady return to growth at the start of Q2:25. Further, inflationary pressures remained muted. Despite an improvement in future expectations, sentiment remains among the weakest in the survey history." The PMI survey highlighted robust gains in services, agriculture, and construction sectors, contrasting with lower sales in manufacturing and wholesale & retail.
Zawya
16-04-2025
- Business
- Zawya
Kenya's residential market booms: opportunities and challenges ahead
Kenya's residential market is thriving, driven by rising demand from buyers, expatriates, and international investors. The luxury and affordable housing markets are having a moment with potential buyers. These dynamics will take center stage at the 2025 East Africa Property Investment Summit in Nairobi from 7-8 May at Pullman, Upper Hill, Nairobi, Kenya ( Kenya's residential market is experiencing remarkable growth across the income spectrum, driven by increasing demand from local buyers, expatriates, and international investors. This segment has become a focal point for developers and stakeholders seeking to capitalize on Kenya's evolving real estate landscape. Kenya's housing market is divided into two segments: the luxury and affordable market. On the luxury end of the residential market, Kenya's growing number of high-net-worth individuals and expatriates are driving demand for premium properties in exclusive neighborhoods. This demand for premium properties is driven by affluent buyers, with projections indicating further growth to 16,900-dollar millionaires by 2026, according to the 2024 Africa Wealth Report published by Henley&Partners in collaboration with New World Wealth. Nairobi ranks among the top cities globally for luxury real estate price growth, and in some cases, it has outperformed cities like London and Paris. The dynamics of Kenya's high-end residential market will be explored during the upcoming East Africa Property Investment (EAPI) Summit, a premier real estate event that brings together over 450 global investors, developers, and professionals from the real estate industry. The 12th annual summit will be held in Nairobi from 7 to 8 May 2025, at Pullman, Upper Hill. This year's EAPI Summit will explore how developers and investors can capitalize on investment opportunities in countries such as Tanzania and Zanzibar, Kenya, Uganda, Rwanda, and Ethiopia. These countries are showing promising signs of economic recovery, improving political stability, and stabilizing interest rates. Real estate experts will unpack investment opportunities in Kenya's high-end residential market. Institutional investors and development finance institutions are increasingly paying more attention to the country's residential market as they are funding several development projects and have ambitions of developing good neighborhoods. These investors continue to fund mixed-use developments that combine residential spaces with retail and leisure facilities, attracting younger buyers seeking modern living solutions. Its financial solutions include mortgage financing to cover the property sale price plus closing costs like stamp duty and legal fees; financing for residential property construction; funding products targeting Kenyans seeking affordable housing solutions; cost for residential plots in major towns; and blended finance options for sustainable and affordable student housing. Stanbic Bank/Standard Bank is committed to supporting sponsors that are addressing Kenya's housing needs while promoting sustainability and economic growth in the real estate sector. This is why Stanbic Bank is supporting this year's EAPI Summit as a gold sponsor. While the luxury end of the residential markets remains shaped by location, size of the unit, and breadth of features that align with buyer tastes and aspirations, Stanbic Bank believes that the luxury segment is not starved of attention from investors. However, the affordable housing market remains neglected. And because of this, the financial service company is choosing to back the affordable/middle-income housing segment, where the demand remains strong and impact benefits are richer. 'In that segment, factors shaping the evolution of successful projects are the proximity of projects to key business hubs, accessibility to transport networks, and quality of offering trade-offs relative to price point. It is useful to highlight that the demand in a large section of this market segment is driven by the rental markets and the retail and institutional property investment markets,' says spokesperson Niyi Adeleye, the head of real estate finance for Africa regions at Standard Bank Group, which is part of the Stanbic Bank. The Stanbic Bank/Standard Bank's sponsorship will enable investors to understand Kenya's residential market over the two days scheduled for the EAPI Summit, connecting them with industry experts. The financial services company will back investors aligned with its mandate of investments in the affordable housing market. 'For Standard Bank/Stanbic Bank, our interests remain to actively participate in and contribute to the development and shaping of the built environment in key countries in our footprint of which Kenya is key. Our activities provide opportunities to participate in projects with significant social impacts and deepen environmental impacts in collaboration with the project sponsors through the development of green-rated properties and our provision of green loans to back those developments. In addition, these projects help shape the property evolution of the cities and countries to improve livability and the growth and availability of more robust social infrastructure,' says Adeleye. Despite the growth potential of Kenya's residential market, it faces notable hurdles. Real estate developers struggle with access to long-term financing due to high interest rates and stringent lending requirements, leaving them with limited financing options for residential projects. There are also land tenure issues, with legal disputes over land ownership that can delay projects and increase costs for developers. Another conundrum is that the demand for residences and luxury homes often outpaces supply, which creates competitive pricing pressures. At the EAPI Summit, there will be leading experts helping potential investors navigate through these challenges. Among the experts set to be in attendance is Hass Consult, a company offering high-end homes for sale all over Nairobi. To demonstrate its commitment to helping investors, Hass Consult has joined Stanbic Bank as a sponsor of the EAPI Summit. Hass Consult is bullish on Kenya's housing market, particularly the luxury segment. Farhana Hassanali-Hashmani, the CEO of Hass Consult, says Kenya's luxury housing market is increasingly opening to global buyers. 'As East Africa's economic and cultural hub, the city is increasingly attracting a global, more sophisticated consumer— one who has been exposed to premium real estate and world-class hospitality standards. This demographic, which includes a growing number of expatriates and globally mobile Kenyans, brings with it elevated expectations for quality, design, and lifestyle,' says Hassanali-Hashmani. This global influence has translated into a significant increase in the willingness to pay for luxury and value-added amenities, says Hassanali-Hashmani. She adds that property developers now have more latitude to invest in high-quality finishes, curated experiences, and thoughtful design that elevates not just the property, but the lifestyle it enables. 'Today, luxury is not solely about the physical asset; it's about the entire user experience. Homeowners and investors are looking for developments that offer seamless living—from top-tier management to integrated wellness facilities and thoughtfully designed communal spaces. The emphasis on lifestyle is now central to how value is perceived and how capital growth is sustained. 'There's a strong and growing demand for developments that offer world-class lifestyle amenities—spaces that speak to health, wellness, and fitness, all delivered through a refined user experience. Residents are looking for environments that support balance, well-being, and convenience, echoing global trends in urban living,' says Hassanali-Hashmani. There's also a significant shift in the demographic of buyers in the luxury housing market. Says Hassanali-Hashmani: 'Luxury is no longer confined to the older, ultra-wealthy buyer purchasing sprawling homes. We're seeing a diverse mix of younger, aspirational buyers who are investing in compact yet premium residences—where quality, convenience, and lifestyle matter more than square footage.' Buyers are also more environmentally conscious and are actively seeking housing developments that are eco-friendly, energy-efficient, and built with a responsible footprint. Whether it is the affordable or luxury housing market, Stanbic Bank and Hass Consult remain positive about Kenya and will explore opportunities at the EAPI Summit. The 12 th East Africa Property Investment Summit meeting will take place on 7 and 8 May 2025 at Pullman, Upper Hill, Nairobi, Kenya. For more information and to book to attend the EAPI Summit visit Distributed by APO Group on behalf of API Events. Distributed by API Events: EAPI Summit enquires: Murray Anderson-Ogle Murray@ +27 71 890 77 39 Website:
