East Africa

Details: East Africa; 28 March 2025; 290

Photo Danny Lawson. PA Images

The UK Government should improve its response to future energy price spikes as households face “world-beatingly high” bills, Parliament’s spending watchdog said.

Electricity bills in 2023 were the highest among comparable countries, with consumers owing £3.7 billion for gas and electricity in 2024, more than double the amount in 2021, the Public Accounts Committee’s report said.

The PAC urged the Department for Energy Security and Net Zero (DESNZ) to improve support for households vulnerable to fuel poverty and create a clear plan and timeline for policy decisions to make bills cheaper.

Chairman of the committee Sir Geoffrey Clifton-Brown said: “Sharp moves in energy prices in the future must find Government fully prepared to issue targeted and effective support, with those most in need the focus of that support.

“We cannot see a repetition of precious funds being beamed out across the spectrum to those who do not require help.

“This approach is all the more important when our report shows some households remain exposed, at a time when the UK’s electricity bills appear world-beatingly high and debt weighs down bill-payers’ finances to an alarming degree.”

‘Slow to learn’

The PAC said the DESNZ has been slow to learn from past energy price spikes and cannot yet target support effectively, as some people who did not need help still received aid from the £44 billion energy bill support schemes.

It urged the DESNZ to develop more financial support for consumers in time for next winter, saying the department and energy regulator Ofgem “are not doing enough” to ensure people falling into debt with their energy bills receive proper advice and support.

The report read: “We remain concerned that even after the crisis has subsided, UK electricity bills are the highest of the countries providing comparable data to the International Energy Association.

“The UK had the highest electricity price out of 25 countries reporting both domestic and industrial electricity prices in 2023, (including taxes and levies) and electricity is currently four-times more expensive than gas.

“Despite repeated promises, the department has delayed taking action to rebalance energy prices by shifting the cost of environmental levies from electricity to gas.

“In addition, the department is reviewing how electricity prices are set for households so that they can benefit from cheaper rates if demand is low or when the weather means more energy is produced.

“But this review has been running for three years and remains on an uncertain timetable, meaning it is unclear when consumers will start to see the benefits through reductions to their bills.”

Plan

The PAC said the DESNZ must do more to convince Parliament that it has a “robust plan” for ensuring security of energy supply amid increasing global tensions.

An Ofgem spokesperson said: “We know the cost of energy is a huge challenge for many households.

“If anyone is worried about paying their bills, we urge them to contact their supplier or groups like Citizens Advice to make sure they’re getting all the help they can. Switching or fixing tariffs now, where possible, could also help consumers to bring costs down.

“We’ve introduced tougher rules to make sure energy companies do more to spot the signs when a customer may be struggling and step in to offer support, including working out affordable payment plans and providing emergency credit to reduce the risk of self-disconnection.

“We have also made pre-payment meters the cheapest way to pay for energy, and are consulting on plans to introduce a scheme that could provide direct support to those struggling with unmanageable levels of debt.

“We continually monitor the service suppliers are providing to their customers and where they are falling short, we hold them to account. However, the issue of debt is one that requires action from everyone across the sector and government.”

Price shocks

A Department for Energy Security and Net Zero spokesperson said: “Our mission for clean power is the only way to protect UK billpayers from future price shocks.

“The 2022-23 energy crisis, which saw sky-high energy bills and put pressure on households and businesses across the country, was a product of our reliance on gas for heating and powering our homes. We will bring down bills for good by moving towards a clean, homegrown power system that we control.

“We are also rolling out support for consumers, including through proposals to expand the Warm Home Discount to almost three million more households next winter, and allocating £1.8 billion of funding to create warmer, more energy-efficient homes across England.” Source: Nation.Cymru

Details: East Africa; 28 March 2025; 607

The International Finance Corporation (IFC) is evaluating a significant new investment in Airtel Africa aimed at supporting its telecommunications operations in East Africa. The proposal involves a total commitment of $100 million, with $70 million earmarked for Airtel Kenya and $30 million for Airtel Rwanda.

This funding is primarily designated for capital expenditures (CAPEX) essential for expanding network infrastructure and modernizing the services offered by the two subsidiaries. Additionally, a portion of the funds will be allocated to refinancing existing debt, thereby strengthening Airtel Africa's financial health in these markets.

This potential investment builds on IFC's prior engagements with Airtel Africa, which included two financing arrangements in 2022 and 2024. The first financing package, valued at $194 million, supported operations across several countries, including the Democratic Republic of Congo (DRC), Kenya, Madagascar, Niger, and Zambia. The second deal, amounting to $200 million, was aimed at enhancing operations specifically in the DRC, Rwanda, and Kenya, with an emphasis on promoting financial inclusion through Airtel Money services.

Airtel Africa’s latest capital injection is part of a broader expansion strategy to bolster its position in the African telecommunications sector and address the increasing demand for services such as broadband internet. Currently, Airtel operates in 14 African countries, primarily across East, Central, and West Africa, boasting a customer base of approximately 156.6 million as of 30 September 2024. Source: African Wireless Communications

Details: East Africa; 28 March 2025; 496

From L-R: Equity Group Chairman, Prof. Isaac Macharia, Equity Group Managing Director and CEO, Dr. James Mwangi and Equity Group Foundation Director Operations, Dr. Joanne Korir during the Full Year 2024 Investor Briefing event. [Wilberforce Okwiri,Standard]

Equity Group has increased its dividend payout to a new record, rewarding shareholders with a larger return following a significant profit recovery.

The move signals confidence in the bank’s financial resurgence after a year of improved performance, reversing a previous yearly earnings decline.

In the financial results for the year ending 31 December 2024, released yesterday, the bank increased its cash distribution by 6.25 per cent to Sh16 billion or Sh4.25 per share—its highest ever—up from Sh4 per share a year earlier.

This came as Kenya’s largest bank by customer base reported a 10.9 per cent jump in net earnings, posting Sh46.54 billion for the full year ended 31 December, compared to Sh41.97 billion in the same period last year.

The group’s profit before tax grew by 17 per cent to Sh60.7 billion, while earnings per share rose by 11 per cent to Sh12.3.

The increased dividend is a boon for shareholders seeking consistent returns, particularly income-focused investors reliant on dividends amid a challenging economic climate.

Norwegian Investment Fund-backed Arise B.V. will be the largest beneficiary of the generous cash distribution, receiving Sh2.04 billion, reflecting its 12.76 per cent stake.

Equity Group Chief Executive James Mwangi will receive Sh542.4 million through his 3.39 per cent shareholding, while other shareholders, holding 62.8 per cent, will share the remainder.

Equity’s growth strategy and regional expansion

Equity Group’s decision to raise the dividend, representing a 34.5 per cent payout ratio, underscores its commitment to shareholder value.

The performance comes on the back of a six per cent rise in total income to Sh193.8 billion.

“We are proud of the resilience demonstrated by the Group amidst a challenging global economic landscape,” said Mwangi at an investor briefing in Nairobi yesterday.

“Our financial strength gives us the flexibility to seize opportunities as the regional economy presents diversified levers for growth.”

The group’s regional expansion and product diversification strategy continues to drive growth, with subsidiaries contributing 49 per cent of total assets, 48 per cent of total loans, and 54 per cent of profit before tax.

Notably, Equity Bank Rwanda’s revenue grew by 36 per cent, Tanzania by 20 per cent, and DRC by nine per cent year-on-year. Profit after tax for Rwanda grew by 30 per cent, Tanzania by 107 per cent, Uganda by 186 per cent, and DRC by 29 per cent.

The group’s total deposits reached Sh1.4 trillion, with a customer base of 21.6 million.

Equity has also diversified into insurance, issuing 14.1 million policies in the past three years, with 5.9 million unique customers, Mwangi said.

Mwangi highlighted the successful diversification efforts, emphasising the growing contribution from regional operations. Equity’s life assurance business grew its profit before tax by 58 per cent to Sh1.5 billion from Sh934 million in 2023.

The bank recently acquired a general insurance licence, in addition to its life assurance business, giving it the ability to offer a comprehensive suite of insurance solutions.

“As we continue to expand our financial services ecosystem, our Bancassurance unit remains a vital component of our growth strategy. The six per cent increase in premium collections, despite the current market challenges, underscores the unit’s potential,” Mwangi said.

“Our insurance premium financing solution has seen a significant 50 per cent increase in uptake, reflecting our dedication to supporting customers through uncertain times as they prioritise protecting their health, life, and assets.”

The lender’s performance caps a strong year for Kenyan banks, which have reported substantial earnings despite a challenging economic environment. By Brian Ngugi, The Standard

Details: East Africa; 28 March 2025; 303

A mobile court established in the Greater Pibor Administrative Area (GPAA) by the Judiciary in mid-March is racing with time to hear a backlog of 429 major cases in Pibor Town.

GPAA Local Government Minister Peter Ajany Kaimoi told Radio Tamazuj that hearing and trial of the cases have been ongoing for about two weeks. He said those to be convicted of capital offenses will be transferred to Juba to serve their jail terms.

“About two weeks ago, the Judiciary of South Sudan deployed a team of judges to address a backlog of 429 major cases, including murder and robbery cases,” he explained. “These cases filed up because we do not have judges.”

The minister hailed the deployment of judges as a relief and said a lack of judiciary in GPAA created a culture of impunity.

“Customary law only addresses culture-related offenses,” he said. “Major crimes, including murder and theft of huge money, require a judiciary, yet since the inception of GPAA, we have not had a judiciary.”

Minister Ajany appealed for the establishment of a permanent court to foster peace and justice in Pibor.

GPAA was established in 2014 by a presidential decree that carved Pochalla and Pibor counties from the rest of Jonglei State.

The area has witnessed a vicious cycle of inter-communal violence and other crimes. Since its establishment, the area has been run without a constitution or judiciary. Radio Tamazuj

Details: East Africa; 27 March 2025; 377

A photo collage of Chief Justice Martha Koome and former Cabinet Secretary Raphael Tuju, March 22.

The Judiciary has responded to former Jubilee Secretary General and Cabinet Secretary Raphael Tuju following his allegations of corruption involving senior judges handling a case linked to his company, Dari Limited.

In a worded statement released on Thursday by Judiciary Spokesperson Paul Ndemo, the Judiciary dismissed Tuju’s claims, reaffirming its commitment to upholding the rule of law and ensuring the due administration of justice.

"It is therefore clear that the matters between Dari Limited and the bank are actively before competent courts and the JSC. In accordance with the sub judice rule—which upholds the rule of law and the due administration of justice—these issues should be left for judicial determination and resolution by the JSC," read part of the Judiciary's statement.

Further, the Judiciary urged Tuju and other involved parties to avoid litigating their cases through the media or on social media platforms, emphasizing the importance of allowing legal processes to take their course.

Judiciary

"We urge all parties to refrain from litigating their cases through the media or on social media platforms. We also call on the media to verify facts before reporting on such matters to avoid contributing to misinformation or disinformation," the statement added.

These developments come as the Judiciary faces heightened scrutiny following a contentious Supreme Court ruling favouring a senior bank manager, only for subsequent investigations to reveal that the manager had falsified evidence.

Following the ruling, Tuju took a swipe at the Supreme Court for declining to admit cross-examination requests against the accused official after it had made a ruling in favour of the bank.

''In the meantime, the SCOK had issued rulings in favor of the bank based on the lies and statements that were recanted by its official. Despite our pleas that the bank official be cross-examined, the Supreme Court mysteriously declined to take this important piece of evidence,'' Tuju stated.

Following the developments, the former CS revealed that when the truth emerged in a lower court, the whole bench of five judges of the highest court recused themselves from the case.

''It should be of interest that the case by Nelson Havi seeking the removal of Supreme Court judges cites our Dari limited case as one of the grounds for the removal of the judges,'' Tuju noted

''The recusal by the bench of 5 judges has no precedent in the Commonwealth law and is also currently the subject of litigation in other fora.''

Tuju has been actively engaging with the media and has also submitted confidential files to the Ethics and Anti-Corruption Commission (EACC) concerning the conduct of Supreme Court judges. However, the fate of these documents remains undisclosed to the public.

This came shortly after he penned an open letter to Chief Justice Martha Koome, calling for urgent action to address the challenges facing the justice sector. by Frankline Oduor, Kenyans.co.ke