Episodes
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In this episode recorded on 25.02.2025, we are joined by Absa Life Assurance Kenya Managing Director and Principal Officer, Githanji Waiguru, to break down life insurance and its role in securing your financial future.
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Show Notes
00:00:00 Introduction
00:02:15 Cultural Influences in Insurance
00:04:49 Journey of Absa Life in Kenya
00:11:59 Relationship with Absa Group
00:13:32 Low Insurance Penetration in Kenya
00:21:44 Assurance vs Insurance and Basic Concepts in Life Assurance
00:27:39 Products for Freelancers and Support During Difficult Times
00:34:19 Investment Component in Assurance
00:35:50 Solutions for Chamas
00:37:30 Premiums and Affordability
00:41:16 Getting Started with Absa Life
00:42:43 Future Outlook and Closing Remarks
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In this episode recorded on 06.03.2025 and hosted by Ramah Nyang, we are joined by Stanbic Holdings' Chief Financial & Value Officer, Dennis Musau, to break down the banks’ FY 2024 performance.
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Show Notes
00:00:00 Introduction
00:00:38 Cost of Funds
00:02:41 Net Interest Margins and Private Sector Credit Growth
00:09:31 Impact of Tax Policy
00:12:48 NPLs and Recovery
00:20:26 Rate Transmission and Risk-Based Pricing
00:26:46 Risk Exposure on the G2G Oil Import Arrangement
00:31:57 Agriculture Sector Outlook
00:35:39 FX Risks and Commodity Exports
00:37:32 South Sudan Oil Exports
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In this episode recorded on 07.02.2025 and hosted by Ramah Nyang, we are joined by Churchill Ogutu - Economist at IC Group, and David Rogovic - VP and Senior Credit Officer at Moody’s, to discuss credit ratings and their impact on African economies.
We also cover their significance, perceived bias, impact on debt restructuring, and the feasibility of an African credit rating agency.
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Show Notes
00:00:00 Introduction
00:01:53 Credit Rating Basics
00:06:33 Significance of Ratings in Investing
00:10:36 Perceived Bias in Credit Ratings
00:12:22 Changing the Outlook
00:15:26 Data Quality Challenges
00:27:35 Impact of Debt Restructure on Credit Rating
00:30:49 Feasibility of an African Credit Ratings Agency
00:37:46 Final Remarks
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In this episode recorded on 30.01.2025 and hosted by Nicole Njuguna, we are joined by Co-operative Bank’s Diaspora Banking Manager, Edison Mochiemo, to discuss the top investment opportunities available for diasporans.
We cover the various products tailored for them, common challenges encountered, emerging investment trends, and exiting investments.
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Show Notes
00:00:00 Introduction
00:01:10 Investment Opportunities Available in Kenya for Diasporans
00:06:38 Common Challenges and Mitigation Strategies
00:15:06 Best Return on Investment Options
00:18:27 Preferential Rates and Incentives
00:20:28 Emerging Investment Trends
00:22:39 Products Tailored for Diasporans
00:25:53 Partnerships
00:27:54 Exiting Investments and Succession Plans
00:34:04 Loans For Investment
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In this episode recorded on 05.02.2025, we host EABL’s CFO, Risper Ohaga, as we unpack the firm’s half-year 2024/25 results in detail. We cover the impact of macroeconomic factors on the company’s operations, supply chain management, capital expenditure, and the focus in 2025.
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Show Notes
00:00:00 Introduction
00:01:20 Impact of Macroeconomic Factors
00:04:31 Top-Line Growth
00:08:47 Impact of Tax Changes
00:14:12 CAPEX
00:16:28 Dividends
00:18:40 Payables and Receivables
00:20:09 Supply Chain Management, Ethanol Sourcing, and Global Tariffs
00:25:38 Premium Brands and Consumer Spending
00:29:00 2025 Focus Areas
00:32:59 Reflections and Final Thoughts
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In this episode recorded on 23.01.2025, we host Asman Mugambi, CEO of Jubilee Life Insurance, to explore strategies for smarter financial planning in 2025 and beyond. We also cover Jubilee Life Insurance and its products, risk management, misconceptions about life insurance, and regulation in cryptocurrency.
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Show Notes
00:00:00 Introduction
00:03:25 Jubilee Life Insurance and its Products
00:10:40 Retirement Planning Advice
00:14:49 Flexibility in Contributions
00:16:31 Investment and Risk Management
00:20:28 Financial Planning for 2025 and Beyond
00:22:51 Life Insurance Misconceptions
00:27:28 Freelancers and Gig Workers
00:29:21 Regulation and Investment in Cryptocurrency
00:33:53 Impact of NSSF Act of 2013 on Retirement Savings
00:38:46 Closing Remarks
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In this episode recorded on 06.02.2025, we host the Stima Sacco CEO, Gamaliel Hassan, to learn how SACCOs operate, their benefits, and how to leverage them for financial growth.
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Key Quotes
“More than 40% - 45 % of the money that we earn as a profit, is paid back to our membership.”
“Even as you look at what is being given to you as a return, the first question you should always ask yourself is ’The place I've put my money, is the money safe?’ Return is secondary. You have given a principal amount to somebody, can that principal sum be guaranteed that if you need it, you're going to have it? So number one, ‘Is the money safe?’ Number two, ‘If I want my money back, am I going to get it?‘ Number three, ‘Is the money accessible?’ And then lastly, let's talk about the aspect of return, and this goes without saying, if the return is too good, normally think twice. If somebody is offering you a return of 30%, ask them, what are you trading in to give you such a return.”
“Guarantee is not an obligation. You're not obligated to guarantee anyone. Only guarantee the people that you know very well, you know where to find them, probably their families, something about them, their character. Because guarantorship is about character.”
“When you join the SACCO, there are two very important disclosures. Disclosure number one, your shares are not refundable but they are transferable. So if you have shares in a SACCO, correctly as stated, those shares, you cannot come and say, refund me the shares. Those shares will always be part and parcel of the share capital of that SACCO, and that is by law and by regulation. However, those shares can be transferred…The second disclosure is on the deposits that I've talked about, the monthly deposits. Those monthly deposits are indeed withdrawable. You can be able to withdraw them. However, there's a catch around it. By law, you can withdraw them by giving a 60-day notice. So you give 60 days’ notice and say, I'm withdrawing, and within 60 days you must get your money back.”
“The best thing you can give somebody is the ability to make income. You don't want to be giving handouts to people. You want to show somebody how to make money. The best thing is to showcase to people how money can work for you, and the share capital is a classic example of that.“
Show Notes
00:00:00 Introduction
00:02:11 Understanding Saccos and their Operations
00:11:50 Joining a Sacco
00:16:18 Stima Sacco Products and Benefits
00:27:49 Interest Rebates, Dividends, and Loans
00:44:55 Guarantees and Loan Repayment
00:51:47 Exiting a Sacco
00:58:22 Stima Sacco Financials
01:04:52 Diaspora Members
01:06:00 NPLs and Financial Discipline
01:17:27 Closing Remarks
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In this episode recorded on 14.01.2025, we are joined by Hawi Abwonji - Research Analyst at ArvoCap Asset Managers, Stephanie Kimani - Economist, and Sunil Sanger - MD, Orion Advisory Services as we explore 2024 economic trends and the outlook for 2025.
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Show Notes
00:00:00 Introduction
00:02:42 Macroeconomic Environment in 2024
00:06:57 Equity Market’s Performance
00:10:34 Bonds Market
00:16:06 Investor Perspective on Emerging Markets
00:18:57 Government’s Creditworthiness
00:28:49 Investors’ Concerns in 2025
00:32:26 2025 Outlook
00:54:00 Closing Thoughts
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In this episode recorded on 10.12.2024, we are joined by Stella Mutai - HFC Kenya’s Head of Mortgage, Florah Muthaura - KMRC’s Head of Risk & Compliance, and Shadrack Etale - a Branch Manager at Stima Sacco, as we explore affordable homeownership for the Kenyan diaspora.
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Key Quotes
“ The company's primary mission is mainly to provide affordable, long-term funding to financial institutions…It is also a financial institution itself, and it's non-deposit-taking. We operate by refinancing the mortgage portfolios that the primary mortgage lenders advance to borrowers, and all our lending is collateralized. And that's why we really take a low margin to be able to pass that benefit to the ultimate borrower. This approach has really enhanced liquidity in the housing finance market, making homeownership more affordable to Kenyans.”
Flora Muthaura
”The interest rate is single digit, and that's our value proposition, and it's fixed for the entire duration of the mortgage… The best part about the KMRC loan is fixed for the entire duration. And that is really important because you have predictability of your repayment and you don't have to worry about your repayment going up.
We even tend to support our financial institutions by encouraging them to increase the loan-to-value ratio, which we accept up to 105%. This is mainly to cover the costs associated with processing a mortgage, such as the legal fees, valuation fees, and stamp duty.”
Flora Muthaura
”One of the things we also discovered from our business of lending is that most of the members will want to get a facility for constructions as opposed to purchase simply because they are able to tailor make to their tastes and preferences and that is very critical. Now what happens if that's what you want?
Number one, you have to construct a house on land. So ensure you have a piece of land that has ownership documents. That is very critical. If you come to the Sacco, and you have a land that has a title deed or certificate of lease, then the Sacco is able to give you 100% in terms of construction.
You have to know the cost of that house. If it's a bungalow, we need to have a QS give us the bill of quantities. And if it is a mansion, then ensure you have structural drawings from a qualified engineer, and, of course, the process begins with an architect giving you the plans and all those things have to be approved.”
Shadrack
Show Notes
00:00:00 Introduction
00:04:07 KMRC and Affordable Housing Solutions
00:09:19 HF Group’s Relationship with KMRC
00:11:27 KMRC’s Loan Requirements
00:12:43 Home Ownership Challenges Faced by Diaspora Customers
00:25:49 Saccos' Relationship with KMRC
00:27:45 KMRC’s Loan Process
00:32:31 Loan Repayments by Diaspora Clients
00:39:19 Saccos Supporting Diaspora Clients
00:42:35 Tax Implications, Legal Requirements, and Financial Risks
00:57:44 Closing Remarks
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In this episode recorded on 13.12.2024 and hosted by Ramah Nyang, we are joined by the Competition Authority of Kenya’s Director of Policy and Research, Dr. Adano Wario, as we unpack how competition can tackle inequality and promote fairer markets.
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Show Notes
00:00:00 Introduction
00:01:26 CAK’s Role and Mandate
00:08:06 Overlapping Mandates with Other Regulators
00:13:00 Enforcement Challenges
00:17:36 Mergers and Acquisitions
00:25:28 Inequality in the Marketplace
00:33:13 Digital Economy and Big Tech Concerns
00:39:13 Market Inquiry and Regulatory Impact Assessments
00:47:39 Data Access, Data Privacy, and Compliance in Digital Markets
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In this episode recorded on 03.12.2024, we are joined by Jubilee Insurance’s GM Corporate & Retail Pensions Catherine Kangata and Chief Distribution Officer Kanyingi Kagucia to learn more about life insurance.
We cover the state of life insurance in Kenya, insurance penetration, choosing the right insurance plan, claim settlement, and accessibility of insurance products.
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Key Quotes
“We need to do more public awareness and people need to appreciate that insurance is not only for the wealthy. There are solutions that are there for all of us depending on your needs.”
Catherine Kangata
“You want to look at life as three phases. You have an income accumulation, a wealth accumulation phase when you have the energy. When you're working, when you're setting up your businesses, you're bringing in the cash, so to speak, and you're building up your wealth. Then you have a phase that comes somewhere from the 40s into the 50s, you're looking at wealth consolidation. That's what we call the consolidation phase. So the accumulation phase, 20s into your 30s, consolidation phase, 40s into your 50s. And then once you get to retirement after 60, you go into what is called deaccumulation… What you do in your accumulation phase and your consolidation phase is critical in deciding what is going to happen in the deaccumulation phase.”
Kanyingi Kagucia
“ When we talk about endowment life policies, we are looking at the type of life insurance that combines savings and investment components. It looks at, should this event occur, then my loved ones would be compensated at a particular level. If the event does not take place, then there's a payment that comes back to me. So it combines those two, maturity or death. It's going to pay out one of the two.
When you talk about term, the term life is a pure risk policy. And this is what it means, it covers only for the event of death. So if I take out a plan for 10 years, 20 years or 30 years of a term life policy, should that time elapse and death has not occurred, I don't get paid because what I was buying was protection against that event happening within that period. Whereas I could be paid back under endowment should I not pass on, in the term life then if the event does not occur, I don't get paid. The policy comes to an end.
When we come to whole life, and this is an interesting one, this covers you for the duration of your life so long as premiums are paid. We have whole life policies in the industry and around the world where you can pay for a given period of time, 10 years, 15 years or so, and after that your cover still remains open and you're covered for it. Now the interesting thing with whole life is that the event must occur. So death must occur, and therefore the people who benefit from a whole life are those that we leave behind again.”
Kanyingi Kagucia
Show Notes
00:00:00 Introduction
00:02:15 Life Insurance in Kenya
00:06:34 Insurance Penetration and the Need for Life Insurance
00:23:04 Types Of Life Insurance Policies
00:34:30 Unique Kenyan Saving Habits
00:41:13 Claims Settlements
00:47:02 Affordability and Accessibility of Insurance Products
00:51:33 Insurance for Different Life Stages
00:56:01 Sum Assured and Investment Returns
00:59:40 Getting Started with Life Insurance
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In this episode recorded on 21.11.2024 and hosted by Tim Kipchumba - Co-founder at Questworks, we are joined by Spin Mobile Limited’s CEO, Dr. Victor Kiplagat, and CTO, Eng. Sammy Kariuki, to discuss how alternative data is revolutionizing credit scoring.
We cover the use of alternative data in credit scoring, security and privacy of user data, the application of AI in credit scoring, and adapting alternative data for SMEs.
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Key Quotes
“ One of the biggest benefits of this alternative data is triangulation. Data should be able to verify itself. I'll give you an example. If this customer at the point of loan application or providing their KYC indicated that they operate in Thika Road, maybe Kahawa Sukari or Kahawa Wendani. Maybe wrote they run a small shop around that. Now, when you get data, let's say from mobile money statements, which actually provided by the customer, and you notice that this customer is literally doing their shopping every day in the evening in Langata, they take their lunch along Langata Road, probably shop at Naivas Supermarket next to Langata Road, literally itself correct. So it's actually able to tell you there is something here that is not adding up. So that's really the beauty of having many sources of data. Remember, in conventional lending what we call traditional data, it was mainly referencing. It is historical and submitted by financial institutions. But now if you have this many sources of data and confirmations coming in from these verification APIs, you can be able to verify most of these aspects.”
Dr. Victor Kiplagat
“Another challenge is ensuring that the lender has the credit scores within three minutes or five minutes, and whether it's a tiny statement, 20 pages, or something with 2000 pages, they're able to make a decision within five minutes. This overall ensures that at some point, we will not even need to have human beings looking at this data. We can be able to automate this data because you can guarantee that the system would have already generated the expected output within one minute and can move on to the next decision.”
Eng. Sammy Kariuki
“ Anybody who is venturing into technology space, be ready to change. Remember our story of how we started by being a lending company, and it's a customer who requested us to do this credit scoring. We were not to get into it. So it was client-led. So I think be more agile. Be willing to try new technologies.”
Dr. Victor Kiplagat
“Listen to who you're targeting, your customers, what they need. And I think that's one of the things that have helped us to innovate and to keep improving on the product. It's not an easy thing to do perfectly, but it really ensures that you are solving real problems and that people find your product to be very useful and adaptable. That's something I would tell any startup or any company that's trying to find its footing and make a difference.”
Eng. Sammy Kariuki
Show Notes
00:00:00 Introduction
00:06:44 Alternative Data in Credit Scoring
00:15:20 Misconceptions About Alternative Data
00:22:24 Financial Inclusion and Success in Credit Decisions
00:25:51 Challenges in Collecting, Processing, and Analyzing Alternative Data
00:28:10 Classification, Security, and Privacy of User Data
00:33:20 AI in Credit Scoring
00:37:00 Open Banking and Data Integration
00:39:36 Adapting Alternative Data for SMEs
00:45:53 The Future of Credit Scoring in Emerging Markets
00:49:11 Expanding Reach and Advice for Fintech Startups
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In this episode recorded on 02.12.2024 and hosted by Ramah Nyang, we are joined by Robert Kibaara - CEO of HF Group as we dive into HF Group's Q3 2024 results and their rights issue.
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Key Quotes
“We have heavily digitized our business… We have 54 journeys and we embarked on enabling customers to be able to consume services of the bank through the digital channels, pretty much as if they would come to the bank. And now I can say 80% of our transactions, as I said earlier, are through digital channels and our banking app has been voted the best banking app in Kenya. Now I can tell you this digitization work has really pulled down our costs by removing manual processes, both in the back office and in the customer-impacting channels. So this will remain a key pillar to our transformation.”
“Branches have an optical value. And I think people feel the confidence of knowing that if I have an issue, my branch is not far away. So that's the first reason. The second reason is branches have become conversation centers. So people use branches less for transactions and more for conversations, especially business customers who like to come, and have a conversation with the relationship managers or relationship managers go to them. And thirdly, branches are also advisory centers where you can be able to advise clients. And then also finally scale. Sometimes people want to see that the company they are banking with also has many branches.”
“Keeping an eye on the cost, focusing on the target sectors that are fast-growing, less risky, and less susceptible to macroeconomic forces, we believe that we can be able to sustain this growth.”
“You should be asking me because I'm one of the smaller investors of the group as a person. Why have I taken up my rights and why have I invested in the company? In fact, I've applied for more shares than my rights. And why is that? I'll say a few things. Number one, HF group the group itself and all its subsidiaries are profitable. And if you just think about the new capital, the new incremental money that is coming, it is coming to power the growth of the business. Now, today, the costs of the business, the establishment costs of the business, what we call overheads are all taken care of. So we are not going to double the technology of the company. We are not going to double the number of staff. So that entire cost is already taken care of. So the marginal or incremental capital that is coming in will power the growth of the business, and it's going to accelerate the growth of the business and the rewards to shareholders are going to be sooner.”
“The reason why I would encourage somebody to invest in this business is just the fact that they can be able to grow with the business as it grows, and in my view, it's a very good opportunity.”
Show Notes
00:00:00 Introduction
00:01:15 HF’s Journey, Diversification, Culture, and Skillset Transition
00:07:13 Revenue Mix, NPLs, Challenges, and Strategy
00:14:47 Affordable Housing
00:16:18 Rights Issue and Dividend Policy
00:21:39 Impact of Govt’s Affordable Housing on HF’s Mortgage Business
00:27:53 Legal Issues in Asset Recovery
00:29:59 Digitization and Branch Expansion
00:36:04 Liquidity Ratios
00:40:12 Insurance Business, Innovation, and Cost of Funds
00:44:32 Future Outlook
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In this episode recorded on 20.11.2024, we are joined by Brent Malahay - Chief Strategy Officer at Equity Group, Willy Mulamba - Ag. Managing Director at Equity BCDC, and Paty-Paterne Mushagalusa - Commercial Director at Equity BCDC to unpack Equity Group's Q3 2024 results and the DRC strategy.
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Key Quotes
“Let me give you four statistics which may give you a sense of the true problem statement of Africa. The first statistic I'll give you is 3%. 3% is the share of wealth that Africa has if you use GDP. The second statistic is 8%, and this is essentially the supply of food net of exports that Africa has. And then importantly, the third statistic is 17%. And this is the share of Africa's population, and the last or the fourth statistic I'll give is 25% and this is the population of Africa by 2050. So the real problem statement for Africa is how we close the gap of the 3% to the 25% by 2050.”
Brent Malahay
“Our subsidiaries, which include DRC contributed 48% to our asset base. DRC contributed a third to the total Group in terms of total assets or balance sheet. In terms of profit before tax, our subsidiaries contributed 53%. And if we just look at the DRC, it contributed also about a third to the Group's profitability.”
Brent Malahay
“Any investors coming from Kenya or any other country in Eastern Africa where it's a bit developed, we can only believe food and agriculture, I think internal transformation can present a quick conversion in terms of opportunities and then returns on any investment.
The other one will be education and health. Kenya has quite an impressive network in terms of schools, in terms of education we believe that industry itself can also present great opportunities for any investor coming. Health as well I think is a critical and basic need in the DRC, specifically in big hubs of which Kinshasa would be number one, and other areas such as Lubumbashi, even Eastern DRC, and Bukavu. This would be, I think, the three or four where you can see a quick low-hanging fruit for conversion into opportunities and in PNL.”
Willy Mulamba
“As a group, we intend to have 100 Million customers by 2030. So maybe not so much 5 years, but call it in the next 7 years, we expect to have a hundred million customers. For us, the focus is more about the customer target than necessarily the number of flags we plant, our map.”
Brent Malahay
Show Notes
00:00:00 Introduction
00:04:34 Equity Group’s Strategy
00:10:04 DRC's Role and Its Economic Potential
00:19:24 The DRC Strategy
00:21:33 Kenya's Economic Landscape
00:25:03 Economic Challenges, Consumer Trends, and Diversification
00:26:01 Opportunities in the DRC
00:28:51 Regional Strategies
00:32:01 Security Concerns in the DRC
00:36:38 Equity Group's Vision and Future Plans
00:41:38 Closing Remarks
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In celebration of Customer Service Week, we partnered with Kenya Airways on a discussion about growing towards customer excellence. Our guest host, Terryanne Chebet, is joined by Julius Thairu - Chief Commercial & Customer Officer at Kenya Airways of Customer Service Week in this episode recorded on 08.10.2024.
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Show Notes
00:00:00 Introduction
00:05:03 KQ’s Customer Service Week Activities
00:06:56 Customer Service Strategy
00:13:27 Improving On Customer Touchpoints
00:21:46 Self-Rebooking Platform
00:24:43 Addressing Customer Challenges
00:32:01 Future Initiatives At KQ
00:39:47 Closing Remarks
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In this episode recorded on 03.10.2024, we are joined by Dr. Brian Lishenga - Founding Chair of Rupha Kenya and Dr. Trizah Tracey John - Ag. Head of Health Financing at the Ministry of Health to discuss the Social Health Insurance Fund.
We cover the transition from NHIF to SHIF, SHIF benefits, NHIF’s weaknesses that SHIF seeks to address, implementation challenges, funding mechanisms, and the claims process.
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Key Quotes
“We have the four main sources, where we have the government sources, we have the health insurance aspect, and we have external funding commonly what we call the donor funding, as well as what the population pay at the site, at the point of service delivery, that is the out of pocket expenditure. So looking at those four elements, the whole principle of health financing is to try and balance those four by making sure we have more government funding, more health insurance, less out-of-pocket expenditure, and less reliance on donor funding so that we have sustainable financing for the country.”
Dr. Trizah Tracy John
“The other key difference is that SHA actually carries three funds whereas NHIF had just one fund, the insurance fund managing the insurance scheme. Under SHA, the authority, that is the Social Health Authority, seeks to manage three funds. And that is the primary health care fund, the Social Health Insurance Fun (SHIF), and the emergency chronic and critical illness fund.”
Dr. Trizah Tracy John
“The issue of fraud is double-sided in the sense that one, it was conveniently used to push back against a genuine request for payment. Number two, it was an issue that required collaboration by rogue providers and some NHIF staff.”
Dr. Brian Lishenga
“One of the things that is obviously clear and the reason for the vigorous debate is that the money available to pay for the benefits is not enough. Even if we tax at 2.75%, we don't think we will raise enough money to pay for the healthcare that Kenyans want.”
Dr. Brian Lishenga
“As a country, we need a blueprint for health. We can't have the cyclic political changes that we see in the health sector, because on average, it takes about 15 years for you to realize any return on investment in any change that you bring into the sector, and we must quarantine the sector from the political happenings. And a blueprint is the only way that can change this, and we will use how much of acreage, maybe a president, a governor or your MP is able to cover in that blueprint as the indicators for success.”
Dr. Tim Theuri
Show Notes
00:00:00 Introduction
00:02:07 Transition from NHIF to SHIF
00:09:25 Healthcare Provider’s Perspective
00:16:49 Fraud Within NHIF
00:20:40 NHIF’s Weaknesses that SHIF Seeks to Address
00:30:32 Implementation Challenges and Patient Experiences
00:37:58 SHIF Benefits
00:45:09 Funding, Claims, and Informal Sector Contributions
00:50:05 Proxy Means Testing
00:52:17 Balancing Benefits and Financial Realities
01:03:12 Concluding Remarks
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In this episode recorded on 19.09.2024, we are joined by Geofrey Mwaura - Head of Refinancing at Kenya Mortgage Refinance Company, Lydia Owuor - Partner at Cliffe Dekker Hofmeyr, Stella Situma - Partner at Cliffe Dekker Hofmeyr, and Beatrice Chege - Head of Mortage at Absa Bank Kenya to discuss common misconceptions about mortgages in Kenya.
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Key Quotes
“A mortgage can typically be obtained through three means, a borrower may be buying an existing house, or you may be buying off plan, or you may be in ownership of an undeveloped piece of land, and then you're borrowing to construct.”
Lydia Owuor
“When you look at the statistics, Kenya's mortgage penetration is less than 2%, in fact, 1.9% as per the last CBK report that was published last month. We’re actually talking about a very big gap in terms of mortgage penetration. Homeownership sits at around 21% in the country compared to other markets where they are up over 70-65% in Eastern Europe where home ownership is quite high. So we have a lot to do.”
Geoffrey Mwaura
“When we started, there was a limitation on income, 150, 000 which moved to 200, 000. But recently, we have removed that income limitation so that we allow more Kenyans to enjoy this program. So as of today, you can access up to 10.5 million with no income restrictions. So if you are earning through employment or you are doing business, you can still access this as long as you are buying a property that is within that 10.5 million for your own occupation.”
GeoffreyMwaura
“What I want to emphasize is that due diligence is key. In circumstances where you're buying, due diligence is key. Due diligence on the registered owner of the property, due diligence on the property itself, and lately the scope of due diligence has expanded. We've seen flooding incidents, and that may require structural due diligence before you acquire such properties. We've seen properties that have been adversely mentioned. We have an ongoing land conversion and migration process, which is a process of tidying up our records. And there are some properties within Nairobi because that's where we still are, which have not been gazetted for conversion. So you need to be proactive, check why your property has not been gazetted for conversion and please deal with those issues. So do not skip due diligence.”
Lydia Owuor
One of the things to look at when you're dealing with such developers is do they have the necessary approvals for the development that they're taking out? And this is where you actually demand to see those documents because you're buying into this and you need to know that you're buying into something that has already been legally recognized by the government. And then also do they have enough money to finish the construction? Where is their source of income? You don't want to be the ones pumping everything and you know with pre-sales the deposits don't come all at the same time. So when people are not paying what happens does the developer stall and just wait for you to pump in the money?”
Beatrice Chege
Show Notes
00:00:00 Introduction
00:02:49 Understanding Mortgages in Kenya
00:04:18 KMRC’s Role in Affordable Housing
00:06:29 Eligibility Criteria and Legal Aspects for Mortgages
00:18:54 Debunking Mortgage Myths
00:23:57 KMRC’s Funding and Impact
00:30:57 Down Payment, Monthly Repayments, and Foreclosure
00:45:08 Income Limits and Mortgage Accessibility
00:48:52 Credit Worthiness and Mortgage Approval Process
00:54:28 Due Diligence, Success Stories, and Market Impact
01:02:02 Mortgage Products and Closing Remarks
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In this episode recorded on 24.09.2024, we are joined by Spiro Kenya CEO, Kaushik Burman, and Deputy Country Manager, Raymond Kitunga, to discuss the impact of Electric Vehicles (EVs) on Kenya's transport sector.
We also cover the African EV market landscape, building the EV ecosystem in Kenya, financing solutions to drive EV adoption, and Spiro’s key products and innovations.
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Key Quotes
“For Spiro, our vision is aligned with what we call SDG goals, sustainable development goals, which means by actually developing affordable and clean mobility accessible infrastructure, we will be in a position to provide this to mass customers, mass consumers so that they feel included, they feel and that leads to a massive amount of compounding in terms of GDP growth, in terms of quality of life, in terms of multiple other factors. So for us, that is the higher purpose which drives us and inspires us to come to work.”
Kaushik Burman
“Now we are deploying fast chargers in Kenya. So wherever you want to go and do a quick fast charge in 15 to 20 minutes, you can fill up, and charge up 30% of your battery. And then we are also giving home charging kits to customers. So people who have access to home charging can just go and charge their batteries through the night.”
Kaushik Burman
“We have developed our own maps. So we don't use Google Maps. We use Spiro maps. Increasingly, you will see that maps will have the energy network footprint, and the number of swap stations. Any boda rider, or even for that matter, if you're a normal consumer, you'll be able to actually see where the swap stations are, where the fast chargers are, and you will increasingly see more and more action happening on Spiro maps.”
Kaushik Burman
Show Notes
00:00:00 Introduction
00:02:25 Spiro’s Journey and Vision
00:05:33 African EV Market Landscape
00:08:16 The EV Revolution
00:11:17 Key Products and Innovations
00:14:59 Building the EV Ecosystem in Kenya
00:20:19 EV vs Fuel-Powered Bikes
00:26:15 Financing Solutions
00:29:46 Regulatory Insights and Future Outlook
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In this episode recorded on 12.09.2024, we are joined by AAR Insurance’s CEO, Justine Kosgei, and Head of Distribution, James Kamau, as we explore affordable and flexible insurance solutions for families and businesses.
We also cover insurance penetration in the country, their ShwAARi product, implementing cloud Infrastructure and digital transformation to enhance service provision, and their partnerships with various stakeholders to provide effective insurance coverage.
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Key Quotes
“There are quite a number of barriers that make insurance not accessible amongst Kenyans. One of them is affordability. For a fact, insurance is expensive compared to some of the other priorities in the household…The other barrier to insurance would be probably the product designs, maybe they're a bit complicated for the ordinary person to understand. And the other would be probably trust.”
James Kamau
“The ShwAARi proposition was all about bringing that simplicity to medical insurance and the product has very unique features. It is a very innovative product. It has what we call a one-limit. Most, in fact, all health insurance products have an aspect of inpatient-outpatient and then quite a number of sub-limits to address other concerns like dental, optical maternity and what have you, pre-existing conditions. So what ShwAARi does is to create a solution that is one limit. It gives you a lot of empowerment because you are able to decide on the limit that you have bought.”
James Kamau
“As a result of having our systems in the cloud, we're able to have platforms that provide services in a paperless and electronic manner. So we have a core platform that supports us, especially on claims. One area of this is our claims. That means that, for our customers, we have used this to ensure that they can access services digitally. Using mobile, you can view your health insurance benefits. Using the mobile, you can go to the hospital and be identified using biometrics. Your fingerprints can be used to access your insurance card, and then you can be given services. Then using the same platform hospitals can submit their claims digitally because the platform connects the hospital systems to our systems and therefore we do not need human intervention or paperwork to do that.”
Justin Kosgei
“Finally, I'd like to just highlight one more thing, which we tested again in partnership with our M-TIBA providers, where we worked with transport sectors Saccos to have an evacuation product because of the huge number of accidents that we have in the country. I think recently we've had a lot of accidents happening. Things that we noticed is that whenever accidents happen, there's a delay in getting emergency help. Normally there's a lot of lives that can be saved within that time frame.”
Justin Kosgei
Show Notes
00:00:00 Introduction
00:05:16 Insurance Penetration
00:08:20 Technological and Innovative Solutions
00:14:25 Affordability and Transparency
00:16:41 Insurance Products for Women and Youth
00:25:06 Microinsurance
00:32:53 Cloud Infrastructure and Digital Transformation
00:34:20 ShwAARi
00:39:18 Restrictive Limits on Dental and Optical
00:45:53 Flexible Solutions for the Underserved Market
00:50:43 Home and Business Insurance Products
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In this episode recorded on 17.09.2024, we are joined by Stanbic Bank’s Asset Management Portfolio Manager Jimmy Karanu, and Head of Asset Management - Christian Mwirigi as we explore wealth creation with Stanbic Asset Management. We also discuss their product offerings, fees, investment allocation, asset classes, and risk management.
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Key Quotes
“With as little as a thousand Kenya shilling, you can be able to partake in our money market offering, and with as little as 100 USD, you are able to partake in the U. S. dollar offering. That is quite intentional because from where we sit we want to equally provide accessibility to these solutions because we believe that's part and parcel of promoting financial inclusion.”
“A money market fund is the safest form of what we call unit trusts that you can partake in. It is designed to ensure that the investments that are contained within that pool are as liquid as possible, are as stable as possible to be able to not only give you a competitive return, but also ensure that your funds are actually readily accessible should you need to access the money.”
“When you look at money market funds, they are designed to minimize risk through something that is called diversification. At the end of the day, the structure of the fund is that, it being a pooled investment, you basically have what you call indirect exposure to multiple asset classes.”
Show Notes
00:00:00 Introduction and Career Journey
0:03:58 Overview of Stanbic Asset Management
00:05:59 Understanding Unit Trusts and Key Players
00:12:23 Product Offerings and Fees
00:17:01 Investment Allocation, Asset Classes, and Risk Management
00:25:07 The Investment Process, and Value Dates
00:29:38 Investing for the Long Term
00:38:02 Future Plans and Diversification
00:44:32 Advice for Young Investors
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