KA-INVESTOR
Kenya Commercial Bank (KCB) has this week been in the media for all the wrong reasons. The bank seems to have opened another branch in the courts, where it’s fighting to win some very big cases against ‘Grand Corruption’ and its former boss was in the dock for insider trading.
Mugoya Constructions: According to this article from the Standard, a case by KCB to put the famous Mugoya construction under receivership for a debt amounting to over Ksh.2.7 billion (over 30% of KCB non-performing loans) was thrown out after the AG entered nolle prosequi on the case. Is this another case of ‘Grand Amnesty’? Apparently while the case was going on, Mugoya paid KCB all the money it’s being sued for…so the case was thrown out. Since when did this become a remedy in Kenyan law?
Terry Davidson Woes: KCB’s former CEO, Terry Davidson, was yesterday arraigned in court for insider trading on the Uchumi shares before the supermarket collapsed. After the good work Davidson did to turn around KCB from a loss making parastatal to a profit making giant, its unfortunate that he’s being arraigned in court for insider trading. hope this will restore some sanity in the NSE.
Kamlesh Pattin’s Woes: KCB has also been stopped from liquidating Pattin’s assets following a court injunction. (To be updated)
Other info on KCB
KCB Rights 221 million new shares started trading on the NSE on Monday this week at Ksh.28 per share but latter on dropped to 26 and its now edging up slowly. The rights issue was oversubscribed by 47% after it received Ksh.8.1 billion in applications against a target of Ksh.5.5 billion needed. The bank is on an aggressive expansion plan and was recently approved to set their branch in Rwanda. The bank future prospects look good in the medium to long term and I still hold a strong buy on its shares.