Martin Habel

Uganda's former Attorney General William Byaruhanga has acquired a KES Billion-shilling stake in Kenya's Sidian Bank. The deal positions Byaruhanga as the bank’s fourth-largest shareholder and cements his growing reputation as a regional business player. Read the full story: https://lnkd.in/dNGjQGmv

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Paul Ikopit, Country Director for Uganda at Onafriq, will moderate a key panel at the Uganda Bankers'​ Association's 8th Annual Bankers Conference today, at the Serena Conference Centre in Kampala, Uganda. The panel, "The Role of Financial Institutions in Harnessing the Potential in Remittances," will explore how banks, regulators and fintechs can work together to make remittance flows more impactful and accessible. With remittances playing a vital role in household income and national development, the discussion will focus on how financial services can support inclusive products, trusted systems and enabling policies while reducing friction and unlocking opportunity. At Onafriq, we're committed to making borders matter less. We're excited to see what comes out of this conversation. #BankingConf2025 #Onafriq

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Banks in Kenya have shifted their trends from focusing mainly on digital transformation (mobile apps, internet banking, agency banking, etc.) to re-investing in physical branch expansion.Here’s some context on why this might be happening: 1. Customer Trust & Relationships: Many Kenyans, especially in rural and semi-urban areas, still prefer in-person interactions for financial services like loans, mortgages, and wealth management. Physical presence builds trust in a way that digital-only channels may not. 2. Financial Inclusion Mandates: The Central Bank of Kenya (CBK) and government policies emphasize reaching the unbanked and underbanked population. Branches in underserved counties improve access to credit and savings. 3. Limitations of Digital Channels: Digital banking works well for basic transactions, but more complex services (like SME financing, investment advice, or dispute resolution) often require face-to-face consultations. Fraud risks and cybersecurity concerns also make some customers hesitant to go fully digital. 4. Competition with SACCOs & Microfinance SACCOs and microfinance institutions often maintain strong community-based physical presence. Banks may be countering this by positioning branches closer to customers. 5. Hybrid Banking Strategy: Instead of “digital vs. physical,” banks are now adopting a phygital approach: using branches for relationship-building and complex services, while keeping digital channels for everyday transactions.

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Kenya’s decision to tap Sh21.8 billion in Samurai financing is less about the immediate cash injection and more about the long game of diversifying its debt portfolio. For years, Kenya’s external borrowing has been overwhelmingly dollar-denominated, 62% as of December 2024, leaving the country highly exposed to currency swings and rising US interest rates. By venturing into yen-denominated loans, Nairobi is signalling a deliberate strategy to broaden its financing sources beyond the dollar and euro, positioning itself to better weather global credit shocks. The move also underscores a recognition that dependence on a single currency bloc is unsustainable for an economy with Kenya’s ambitions. By adding Samurai financing to earlier experiments with Panda bonds and Eurobonds, Kenya is building a more balanced debt mix that could, if carefully managed, reduce refinancing risks and stabilize repayment obligations. Kenya’s foray into Samurai bonds is not just about plugging today’s financing needs, it’s about future-proofing its debt strategy by diversifying away from the dollar and spreading its risk across global markets.

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DBSA strengthens Uganda’s development path The Development Bank of Southern Africa (DBSA), in partnership with Ecobank and Rand Merchant Bank (RMB), has successfully closed a landmark €230 million facility with the Government of Uganda to finance its FY2024/25 Infrastructure and Development Budget. This facility, totalling €230 - comprising €100 million from DBSA and €130 million from Ecobank and RMB - will fund priority projects in education, health, transport, power, water and sanitation. These investments are vital in a country where only 35% of the rural population has access to electricity and many healthcare facilities remain under-resourced. The transaction represents one of Uganda’s most significant sovereign syndications in recent years. It not only strengthens the country’s Development and Infrastructure Plan (2025/26–2029/30), but also accelerates progress towards the United Nations Sustainable Development Goals – particularly Health, Education, Clean Water and Sanitation, Affordable Energy, and Infrastructure Development. At DBSA, we believe collaboration between development finance institutions and commercial banks is key to mobilising capital at scale, enabling sustainable growth, and delivering lasting impact across the continent. #DBSA #Infrastructure #DevelopmentImpact #Uganda

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