Connect with us

Business

Safaricom Names Peter Ndegwa as the new CEO

Inversk Review

Published

on

Safaricom, the largest telecommunications provider in Kenya and one of the most profitable companies in East and Central Africa region, appointed former East African Breweries Limited (EABL) finance director Peter Ndegwa as the new chief executive on Thursday.

Peter Ndegwa will commence work as the Safaricom’s CEO on the 1st of April 2020. He will also be the first Kenyan to head the largest telco operator in the region.

A statement from the board says Mr Ndegwa joins the telecommunication from Diageo PLC where he is the Managing Director of Diageo Continental Europe.

“Peter oversees the operations of Diageo PLC in 50 countries in Western and Eastern Europe, Russia, Middle East and North Africa region. He had previously served for seven years as CEO in Guinness Nigeria PLC and Guinness Ghana Breweries PLC, where he transformed the two operations to deliver a double- digit growth by investing in people, introducing new brands and reorganizing the businesses,” records the statement.

Preceding to his appointment to the helm of Safaricom, Peter served for 8 years across a range of senior Executive Director roles at EABL (a Diageo subsidiary) based in Nairobi.

“Serving as the Group Chief Finance Officer (CFO), Group Strategy Director, Sales Director, and as an Executive Director on the EABL Board, he was part of the team that saw the EABL business more than doubled in value – and winning the coveted Most Respected Business Award in East Africa for five years in a row,” the board adds.

Peter is to take over from the acting CEO, Michael Joseph, who took up the seat following the demise of the former CEO, Bob Collymore, who battled with cancer but succumbed to it on July 1, 2019.

Safaricom has reported a 14.7%  increase in net profit to Sh63.4 billion for the year ended March 2019. Service revenue grew by 7% to Sh240.3 billion derived largely from outgoing voice calls and Mpesa charges.

Outgoing voice service revenue grew by 0.3% to Sh95.9 billion and Mpesa revenue by 19.2% to Sh74.99 billion.

As mobile data revenue increased by 6.4% to Sh38.69b, its messaging revenue declined by 1.3%  to Sh17.50b which indicates that most people are turning to web-based platforms like WhatsApp to send messages.

Throughout the year, there was a 7.4% increase in the number of customers to 31.8 million, which supported the services revenue of growth of 7.0%.

The board said that they picked on Peter because he is credited with the development of an affordable-beer strategy for EABL resulting in the production of new brands such as Senetor Keg.

Safaricom, which is 35 percent owned by South Africa’s Vodacom, controls about 62 percent of Kenya’s mobile market, with 30 million subscribers.

Britain’s Vodafone has a 5 percent stake and the Kenyan government 35 percent.

Comment using Facebook

Inversk Live is Kenya's most incisive and informative platform to learn about business news, technology, markets, companies, startups, leadership advise, curated business and industry opinion, and affluent lifestyles.

Continue Reading
Advertisement
Loading...

Kenya Today

Fuel Price Soar in the Latest EPRA Review

Kevins Jerameel

Published

on

Energy and Petroleum Regulatory Authority (EPRA) has hiked the fuel prices for one month of November through December. In a statement signed by EPRA Director General Pavel Oimoke on Thursday, a litre of petrol in Nairobi will now cost Sh 110.59 an increase if SG 2.54 while a litre of diesel has risen by Sh 2.65 to retail at Sh 104.61.

Households using kerosene are the hardest hit, in the latest review, kerosene consumers part with Sh 2.98 more for a liter that will cost Sh 104.06.

Kenya’s inflation increased to 5.7% in the month of September from 4.04% the previous month due to increased taxes on petroleum products.

The rate is the highest in 12 months, an indication that the impact of VAT on fuel is sieving into the economy. The price increase which took effect from Thursday night will remain in force till the midnight of December 14.

The rise in fuel proves is attributed to an increase in the landing cost for super petrol by 0.86% from Sh 4,593 per cubic meter last September to Sh 4632 per cubic meter last month while that of diesel increased by 2.08% from Sh 4919 per cubic meter to Sh 4999 cubic meter.

Comment using Facebook

Continue Reading

Markets

Auctions Jump as Mortgage Defaults Hits sh38 Billion

Georgina Korir

Published

on

Default on mortgages jumped 41 percent to Sh38 billion, pointing to widespread distress in the real estate as it is experiencing a slump growth and property auctions pick up.

Latest real estate data from the Central Bank of Kenya (CBK) shows that mortgages shows the industry experienced the biggest hike in non-performing loans (NPLs). Unpaid mortgages increased by Ksh11.2 billion or 41.1 percent, manufacturing by 19 percent, traders by four per cent and personal loans by six percent.

According to the report, 16.9 percent of the Ksh224.8 billion gross loans extended as mortgages were not being serviced at the end of December 2018, up from 12.2 percent in 2017.

“The ratios were above the industry gross NPLs to gross loans ratio of 12.7 percent in December 2018. Deterioration in asset quality was mainly attributed to among other factors; subdued business activities, delayed payments from public and private entities and low uptake of housing and commercial units,” CBK noted.

The real estate industry was dotted with auctions, as the most people who had taken loans on the strength of their pay slips to buy property failed to service them in 2018 and 2019, following the NPLs.

Attributing to a dying economy, which has seen several companies shut, there have been a lot of job cuts in Kenya.

At least 78,400 new formal jobs were created in the economy in 2018 compared to 114,400 in 2017 this, According to the Economic Survey 2019.

Following the interest rate cap which was repealed last week, the banks have also been reluctant to offer loans to individuals and SMEs who are first time borrowers.

As a result, compared with a growth of 23.9 percent in 2015, there was minimal growth in mortgage growth of 0.7 percent last year.

CBK said, “This could be attributed to banks’ review of mortgage terms to offer mortgage loans on increasing credit risk in the real estate sector,”

It is reported that more auctions linked to mortgage defaults were conducted in 2018 compared to 2017.

Comment using Facebook

Continue Reading

Features

Understanding Art Piece Collection Value In The Market

Dennis Kamau

Published

on

You probably have had a trigger of suspense when art is mentioned either in the movies and you wonder how to value them? Well there are a number of factors to consider when valuing an art piece.

Unknown to individuals when it comes to art, is the value that art piece carries on matters concerning the monetary value. The most important factor when valuing an art piece is the artist of the work.

A piece of work that has been produced frequently by an artist will have a high monetary value than an art piece done by a new artist. Also, works that was produced as old art collections have a quite good impression as they tell a story of occurrence of that season and whether it represents their work.

Subject of work may narrow or broaden the market of buyers as more private buyers are purchasing art directly from the artist (primary market). Certain subjects always attract more clientele than others. Like an art piece of a beautiful lady will sell better or the big five animals than a portrait of an old man.

Subjectivity of work is not a factor that is independent but depends on the drive of demand of buyers. If the demand is high the prices increases. The commercial value of art piece depends on collective intentionality similar to currency.

On a different scale, sizes matter where even though the artist may feel that a small size is efficient the buyer perception is different.  Art piece with big size are expensive in the market like a wonderful sculpt that can sit at the backyard of an individual or next to the welcoming door of the house.

The type of materials used in an art piece can greatly increase the price, Leonard Davinci Mona Lisa painting holds the highest value insurance for a paint, its custodian is the museum. Art is being redefined from the beginnings of illusionist painting to complex photography with binary digits and also, sculpture designs. We humans tend to try and tell a story of what the impression an artist had when coming up with an art design.

Comment using Facebook

Continue Reading
Advertisement
Advertisement

Sponsored Content

Loading...

Trending

Copyright © 2019 INVERSK MAGAZINE. Developed by ITIPS