The BREXIT referendum has both an up and downside for Kenya. The impact of the referendum and the UK's decision to leave the EU had an immediate impact on the UK with the pound reaching its lowest in 31 years.

For Kenya, this means that imports will now be cheaper like cars which were increased in tax. The consumers now have a little breathing room. Exports may be more expensive and kenyan exporters are pensive because there could les access to markets and lower income due to the cheaper pound.To add to that  a new EU-Kenya foreign policy will have to be put down. This ofcourse will mean that businesses continue to lose money until the new policies are implemented.

Kenya and Africa in general is still awaiting the UK's critical decisions regarding financial instruments standards and banking. President Kenyatta has expressed his discontent over the raw deal that third world countries get despite trade agreements and has attributedd this to poor trading conditions and bureacratic requirements by the EU

The East African Community isrequired to sign a new Economic Partnership Agreement deal with the EU come October 1st or stand to lose upto Ksh 4billion every month.However, this too may be delayed as the EU and Britain figure out new relation policies. The EPA agreement should enable EAC products to access the EU market duty free. 

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This year, our AGM was held on Thursday June 2016 with a good attendance whereby a successful election was held for the new council.

There was an addition of twi new members, the exit of our former chairman for the year 2014-2015 Dr/George Wakah. His leadership has propelled us further in our objective to become the country's Financial and Investment Analyst regulator. The past year has seen the milestone achievement of the IFA Bill to an ACT as of 8th Decemebr last year and an increase in membership registration.

Taking over is FA Job Kihumba, former Vice Chair of the Institute now newlwy elected Chairperson.

He outlined his goals for the year as:

1) Membership Recruitment

2) Continuos Professional Development exercises

3) Employer recognition of the graduates.

The following are the newly elected members of the Council

Chaiperson:              FA Job Kimani  Kihumba 

Council Members:   FA Dr. Jonah Kipkogei Aiyabei 

                                   FA Catherine Theuri 

                                   FA Michael Odiembo 

                                   FA Leah Nyambura 

                                   FA Dr. Duncan Elly Ochieng

                                   FA Lazarus Akunga Kimang'a

 KASNEB Representative:  FA Pius Nduatih Secretary/ CEO   KASNEB 

CMA Representative: Mr. Edwin Njamura Director of corporate services CMA

NSE Representative: Mr. Geoffrey O. Odundo CEO Nairobi securities Exchange 

National Treasury: Pending nomination 

We wish them success and look forward to continued corporeation and more achievements

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Madaraka day celebrations in Kenya were both vivid and divided, with large crowds some with several thousands who gathered tocelebrate a day in Kenyan history which eventually led to our independence.

Nonetheless, Kenyans shall be united on the 8th of June when the 2016-2017 National Budget will be revealed by the Cabinet Secretary for Treasury Hon. Henry Rotich who will address the nation to elaborate on fund allocation for government projects for the peopleat 3:00pm.

It will be live on local television and thereafter, Kenyans will be able to properly budget for their livelihood both in the capital Nairobi and rural areas, but also for their businesses as some taxes are bound to change or shift in one way or another.

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Dubai Bank, the largest bank in the UAE is set to open up shop in Kenya before the years end.

This news comes at a time when in the past 10 months, three banks in kenya have gone under receivership.

However, the latest to undergo collapse, Chase Bank has successfully been revived under the leadership of CBK Chairman Patrick Njoroge with its current running of affairs undertaken by kenya's own Kenya Commercial Bk.

KCB is Kenya's largest asset owner and have been successfully expanding over the years.

Sincetaking over the bank with over 62 branches country wide, so far business and transactions have been smooth.

Thanks to quick action and good leadership, the jobs of thousands have been saved as well as the moneys of the public.

Since it's re-opening, the CBK asked for a warrant of arrest for the Chase Bank managers who awared themselves unsecured loans of upto Ks. 8 billion!

We hope for a continued good flow of business in the financial sector and the reinstatement of authority in the kenyan banking sector and it's leaders.

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Meru Governor, Peter Munya has deemed the actions being taken as after the Chase Bank collapse as unacceptable.

He relayed his dissatisfaction and the inconvenience of its collapse to some counties which kept their monies with the bank.

The counties have not been named however, he continued to say that they could be unable to pay suppliers and salaries should the government not intervene and the matter of lost cash be resolved quickly.

He emphasized that there needs to be an enforcement of commercial bank stability in Kenya to restore confidence in the banking sector.

Since the collapse of three banks within a period of 9 months, CBK has placed a moratorium on licensing to bring stability to commercial banks.



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This week,the cabinet addressed and reviewed the Jubilee Manifesto and strategic plans for the country on a two day retreat in Naivasha.

In attendance were principal secretaries, Jubilee parliamentary leadership ,the State Law office and Heads of security organs in the country.

The main issues reviewed and further discussed for quicker implementation include security and the country budget. The budget is currently at Ksh. 1.7 trillion with Ksh. 284.7 billion allocated to the counties. The objective was to determine levels of funding for projects already in the pipeline and for other planned projects.

Open talks about the government priorities was the main issue and parliament could be facing a possible deadline of August to enact laws that aid in the implementation of the 2010 constitution.

To add to that, the Deputy Chief of Staff Nzioka Waita of the Presidential Delivery Unit briefed the meeting and present the Delivery Book. A manual that tracks the jubilee administration, with focus on their progress and to ensure they deliver on their promises.

The governments five priority areas include: Infrastructure, Agriculture, Transformation , Environmental Protection and Human Capital Development;with a focus on security, gevornance and public administration.

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Is having multiple bank accounts a good idea?

This depends on several factors.Among them age,occupation and preferrabilty to the banking service.

Before the age of 18 or even until 22 many youth don't have a bank account.The reason being they dont have a staedy source of income.However oncethey do,they open an account which can be mandatory based on salary payment systems. At the same time,most young people don't have a savings account. There is the current account and that's where all the money goes and in return is spent but having a savings account can be beneficial.Even if you don't have huge responsibilities at the end of the year youcan go enjoy yourself comfortably in Lamu with friends. A savings account becomes more pressing with a new baby or housing.Some funds are then set aside for medical emergencies or things you need for the house.

For some they may open multiple accounts to learn which bank mostsuitstheir needs.It could be because of service,the kind of career they are in even religion has become a factor with new banks opening up a department or branch altogether that accomodates muslims.It is also gender based.The market has grown more niche and the banks are providing more specialised offers for thei customers.As time goes, you discover which bank meets your needs best.

Having multiple accounts could be an obvious choice for some who wantaccess to more loans.As risky as it may sound some people do thrive and live well by using debts to work for them through investing.

Some want to open an account with a bank friendly to "chamas" and another friendly to microfinance a small business. Others may favour banks that offer premiums to customers who deposit large amounts and receivequick service for investing in the bank.

Those approaching retirement may have opened a bank to make savings deposits while a couple may open a joint account together to work on goals together. If oyou a starting with an entry level job it may be advisable to bank with only one bank and minimise any other bank transaction fees for your account.

It varies why one may open more than one account.What you need to keep in account is what works for you. 

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I have been reading Second Chance by Robert Kiyosaki repeatedly.

I go back and reread a chapter, or a conversation between him and interview or read the few graphs in the book for illustration again.


I just love what he is saying.

It is an overhaul of what we have learned over the years. Through school at all stages.Perhaps the only time we have been free to carve out opinions and gather knowlegde for ourselves was probably at kindergarten. This is my view; because after that we have been controlled by what we have learned and what our teachers said.What was tested and deemed a success through our grading system.

My point however does not lie in education today.However, I will bring this up again in a different article,the point is we complain about money.The lack there of having sufficient cash. We work longer hours, put in more effort at a stressful 9-5 or essentially you jst stress yourself more.Worry more and do more...but is it really more?

You can advise your children, colleagues and others you interact with to leave belw their means.Buy what they can afford."Stick to your lane"

Why can't you advise them to work smart instead of really really hard at the job they don't love. Why can't you say expand your means. Then DO IT.

Find a job in the area where your talent lies. Now you don't have to pinch every penny.You can afford it.

You're educators will never advise you to get more than one job because naturally,work is stressful for them.The issue is, they are working in a capacity they don't value. They don't enjoy.

Now you have the freedom to choose.Expand your means and grow your pocket through wise investments. Continue doing this and undo what you had been previously taught. The many different schools of thought that applied then, don't necessarily apply now.

I am not saying abandon your beliefs, I am saying re-educate yourself.


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According to the author of Rich Dad Poor Dad, Robert Kiyosaki,all people need to achieve financial feedom and personal wealth is to have financial education.

He strongly believes in that.I think, he has a point.

How can you know how to manage something, if you have never studied it.Either through practice or theory,and practice is always better.

Kenyan Indians already know this, and that is why they have their children at the till even when they have come home afterschool. This is why an indian man will open up a business for him and his sons.He wants to teach them the trade, teach them how to make it flourish, nourish it during fallbacks and make it healthy again to take off in business and build an empire that will sustain them for generations.They know that financial education.Business education has to start while young. That way,the child doesn not grow up with a mind full of financial constraint theories they learn at school or hear from friends. They do not adopt unsiccuessful behaviour.

They learn how to manage money and so when they are given the cash, they will know how to invest or risk and so on. It is that simple. I was reading his book second chance on good debt and bad debt. Good debt is ayed by someone else.Bad debt is paid by you!

An asset puts money in your pocket, A liability takes the cash out.

Here's another thing, Debt is not always bad. Mr.Kiyosaki made a valid point.This world has a foundation in debt, even the greatest country in the world is trilliondollars in debt! So how do i use it? Invest with the loan you've taken to acquire an asset. The asset can pay off the loan for you if you do it just right. And while you have that debt, you can still get another loan and pay off the current one and then invest in another asset to put evenmore money in your pocket! All the while, you are not even working till late to pay of that debt.

You have to be smart.

You have to be brave.

Entrepreneurs make calculated risks and they handle their money on their own. There's something about giving away all your cash to someone else to invest while you learn nothing about it that will keep you in the same place.Ignorance is bliss until you start losing that cash.

Educate yourself and read that book!

Blessed week. 

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Hello readers,

Today I will dive into the issue concerning saving with a bank or a SACCO?

What does SACCO even stand for,one might ask...Savings and Credit Co-operative.Wow!These are popular in Kenya.

Haven't you noticed that every matatu now belongs to a SACCO? Your uncle is also a member of the SACCO in your area or the one formed by his company.Yes,many organizations have adopted the SACCO trend and many people are saving their money in SACCOS.

It makes sense.theses are some reasons as to why they are so popular.


SACCOS typically have lower or reasonable interest rates.The reason being,they areagreed upon by the members and as they are a diverse group they need to be fair and can go as low or lower than 5%.

However,banks in Kenya today charge a minimumof 18% interest on loans taken by their members.A hefty price to pay!


SACCOS often think of the mwananchi on a realistic basis.They have several different accounts to save your money and the amounts vary to ensure you are comfortable with your monthly contribution.Like banks they also have education savings accounts for children and also for investment purposes!Itcan be ksh.500, ksh.5,000 or ksh.50,000. The choice is yours.


Members are usually given first priority on investment ventures by the SACCO.Be it land or housing,the rates for members are favourable and reasonable as compared to non-members.


When you put your money in the bank or in a SACCO this means they naturally have liquid assets available. This could be a lot of money depending on the membership number.

When members take loans these organisations also benefit from the interest. In a way,it is also a business venture for the company.These companies tend to seek other ways to generate even more cash by going into real estate business, or opening of hotels and restaurants which has become a trend in Nairobi.These successful ventures allow more members to take on loans and in return their numbers keep growing.

Want to know moe and start saving today get some basic info  here

With that information,what do you think suits you better,Bank or SACCO?

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Hello everyone,

Once again we discuss debt payment. I know sometimes it can be unavoidable going into debt. You may be at a low paying job with growing needs,perhaps you have urgent issues to settle like a medical bill or school fees, or mortgage. It is understandable at times, however this article is also aimed that those who refuse to stop accumulating debt due to bad habits of overspending,lifestyle luxuries and wanting to look good. Some of us suffer from the "appearances" illness.You need to keep up a certain kind of image to be known or recognized or keep a status or title. Now am not here to criticize you. It is important to keep your pride but it is also important to keep your dignity.This means you should also look at the bigger picture and realise, debt will eventually lead to a downfall so a little minimization can go a long way to spare you some rough consequences.

Here are some few ways you can start paying off your debt this new year!


1.Creat a budget to cut back on spending.

First you nee to calculate your debt. There are several online sites where one can use personal finance tools to calculate debt and also, don't you own a calculator?? Make a list. Jot down names and amounts, then start cutting back.

You don't need to go buy a cup of tea at Java after work when you can do the same at the comfort of your home. Neither do you have to say yes to a nyamachoma binge weekend when all you have is money for house shopping. Mid week you will feel the pinch when you have to park your car and use the bus to work on a rainy day! You can carry your lunch to work instead of ordering something from the cafe. You won't believe how much you'll have saved from your weekly budget! Now you can put that money where it needs to be.

2.Pay off your most expensive debt first.

You know how much you borrowed from whom, and sometimes the most expensive debt is the one that will cause you the most emotional ditress. Pay back that guy who calls every two hours because you didnt pay him when you said you would.Make sure to pay off the debts or loans with the highest interest and prioritize to make the usual payments to your SACCOS or chama,and keep in mind your monthly living expenses. You should start feeling difference after your initial payments are made.

3.Pay off more than the minimum balance if you can.

If you owe 10k you can put in 15k to show goodwill and the next time you make your payment it can be a pleasant surprise to find that you owe less this time!It could be an unusually stressful period so you will thank yourself for putting in more cash.


4.Stop spending your debit or credit card.

This goes both ways.When you don't carry cash you feel you probably won't spend more,but with direct access to the money you have at the bank your VISA card can soon read declined because you just kept swiping and spending at the new mall in town. Carry limited cash.It means you only spend what you need to.

5.Put any bonuses towards paying your debt.

If you work at the king of organization that rewards their employees with a regular bonus,maybe it's time you spend it elsehwere other than logging onto Jovago to book for your stay at Tiwi beach!

6.Sell unwanted gifts and household items.

7. Ask yourself, what can I do without changing my lifestyle so much?

That is the first step to a new hopefuly,lifelong habit.

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Hello Readers,

Happy new year.Officially the work week has began and the roads are once again crowded by our ever growing qualified nairobi working class.However, I do know it is tougher to fuel your cars and indulge this month more than any other time in the year. In that case, I will give you some easy ways to reduce that holiday debt you accumulated buying that celebratory nyamachoma and getaway to mombasa with your family and friends.

Follow these tips and things should start looking up slowly...

1.Do the math by calculating all the accumulated debts and expenses that you have for this month.You need to know how much you owe those pparties that helped finance you over christmas and even this month of January. From school fees to that last minute booking in South coast.

2.Prioritize by paying off the debts with the highest interest and secondly urgent expenses such as schoo fees,the electric bill.With those items out the way,you can breathe and focus on what to do next.

3.Sell the things you don't need.Don't be embarassed it is a logical plan. Putting up an old tv on OLX and the stool your mother gave you when you first moved out need to go.You also need the extra cash to settle the loan with your colleague.Go ahead and sell some unwante or unused items to raise the needed funds.

4.Be disciplined!Leave at home that extra 20k.You dont need it in your purse when you're grocery shopping in Nakumatt. You can also leave your credit card in the wallet you don't use everyday.Cut your spending and you will thank yourself for it later.

5.Minimize your costs.The kids are back to school.Paying for premium DSTV can come down to the compact package. Eating out every saturday and sunday with the family should come down to once a month if at all necessary.Spend that money in a much needed area.Like paying off your M-shwari loan before you are listed as uncreditworthy!


Prosperous new year!


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You need to open a bank account to start saving.Whether young or old,you can't go wrong with saving up cash unless you want to invest it to make more.

2.Salaraies and Wages

With an active bank account it's an easier way to receive money from business transactions and employment.

3.Payment of Bills

These days all you need to do is pay your bills via mobile banking and the payment of bills is credited directly from the bank.Be it water or electricity and even while shopping.In the mall or online.

4. Visa Card

These cards are made available in most banks in Kenya once you open an account and deposit cash.They are versatile and can be used to pay for groceries and clothes shopping,or linked to a Paypal account to pay for an air ticket. The choice is yours!Also,it is safer than walking around with wads of cash.

5.Access to Loans and offers.

When one has an active account with a good inflow and outflow of cash,if the time comes to take a loan it will be easier if you have an account at a local bank.They can check your bank activity and if you are credit worthy to assist you with the money you need.Also,the longer you keep your cash at the bank,the more interest it draws in.

6.Bank Statements

It is easy to keep tracj of your cash,whether electronically or if you decide to print out a statement.Either way,you know where your money is and how much you have.


When using a VisaCard,you are able to know when you have exceeded your limit when the card is declined.This way you don't over spend and those unnecesary items are foregone.Its a win-win situation.

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Entrepreneurs are believed to be people who take risks,well at least they take calculated risks.There is a big difference.Imagine being in charge of the most of risks that your company takes,or doesn't take.

This is the job of a risk manager.However,just imagine you are not just in charge of the risk,you are in charge of all the risk.To add to that you are in charge of the amount of risk a bank takes!A bank.I know you are imagining dollar bills or Kenyan shillings flying in the air.Yes,that is a significant amount of pressure.That is why you need to choose not just someone qualified for the job but someone who also has the right temperament.I can imagine what the job description reads ;10 years experience in the banking sector,someone who thinks quick on their feet and makes marginal mistakes!Definitely a healthy salary to go with that job.A hefty compensation is needed to cover for the stress that comes with the job!

Anyway,instead of guessing why don't we find out exactly what a risk manager does and the kinds of risk he undertakes.

The job of a bank risk manager covers a wide scope,and with the recent ongoing of the Kenyan banking and financial services sector these are the people who need to be in charge and take their role more seriously.Now more than ever.Before this role could have been purely needed as a control mechanism,to prevent the bank from getting into murky waters.However,today it also is needed for the bank to grow.Simply put,the risk manager needs to consider the likelihood of something bad happening and its cost.The kind of risk managed includes credit approval and monitoring of the risky transactions to ensure the bank's stability irrespective of the ongoing deals.Risk adjustments could be taken to ensure credit worthiness or ensure the bank gets paid back in full.

The second is market risk management which is monitoring of the banks buying and selling of stocks in the market.As prices fluctuate often it is important to monitor the prices to prevent losses whenever possible.Investment risk comes in when the company acquires a new business or property and the structures including staff need to be aligned in accordance with the parent company to allow smooth transitions and transactions of business.The final kind of risk undertaken could be the most important because it involves internal risk management which is operational risk.This has to do with the internal structures of the organization which is crucial as we all know something bad starts rotting from the inside before it shows on the outside,therefore the job of the risk manager is to ensure smooth business running free of corruption or other disruptions which include defective products for clients and business in general such as malsoftware and proper health and safety measures.Inded it is a job with big shoes to fill and once there is a lackluster attitude taken things can start falling apart.

Incase you are considering this line of work,this is just the tip of the iceberg,nonetheless take on the challenge and clean up where you can for good business to take place.

Thanks for reading.

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Hello readers,

With the recent ongoing in the banking sector in Kenya and the mismanagement of public funds,one has to wonder...what is going on?Lately,there has been a revelation of corruption in Kenya of public funds in huge amounts like we have never seen before.This corruption has spilled into our banking sector unfortunately,so much that it has caused two banks within months of each other to become insolvent and declare bankruptcy to be managed by the Central Bank of Kenya in a bid to salvage the dire situations.I felt that with the steady rise in financial scandal that we are now facing  as a country and as private individuals we need closure and accountability for much has been lost that will be felt both now and many years to come.The need to explain simply why a bank may go bankrupt and what happens next and what it means to those affiliated with the institution.

First thing,Insolvency is the inability to pay debt.A bank can fail to pay its debts even if its assets are worth more than its liabilities.This is called cash flow insolvency or lack of liquidity.Insolvency can happen when several customers fail to repay their loans.Especially if they were for large amounts or total to very significant amounts.When the banks realize that a customer has defaulted on repayment they call it an under-performing loan and may decide to write it down then absorb the bad loans.Bad loans can be absorbed by using the shareholders equity but when the bad loans wipe out the shareholders equity this will be very consequential for the bank for it means,their assets are now worth less than their assets.

Now a panic is bound to happen when a bank is on the brink of collapsing and many depositors start withdrawing their cash or ask for bank transfers to other banks to save their money.The bank is able to refund their customers savings based on how much they have in liquid cash,but once that runs out they can resort to using the reserves with the central bank to refund depositors.In the event that is depleted,they resort to selling shares and bonds to raise additional cash quickly and pay off the depositors.This is however not an easy fit as individuals,suppliers and a multitudeof companies among other parties are owed and many a times not everyone is payed out or even in the correct amounts.

After the bank has declared insolvency they could decide to sell their assets to raise more money but before this can happen,the assets must first be valued and then sold,but in case they need the money quickly the bank may resort to selling off their properties at a huge discount to attract many buyers and make a quick sale.In some cases,after insolvency,deposit insurance may be available but not in all countries.Deposit insurance is Explicit deposit insurance is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of a financial system safety net that promotes financial stability as described by wikipedia.Link here If the deposit insurance is not available the banks cannot be paid back,in full or partially.

Have you heard of the great depression?Well this took place right after the first world war and it affected Europe greatly.In a deposit insurance the banks assets are seized and sold to pay off the depositors,this is because even a bankrupt bank may have been paying off a loan to another bank or instituiton and is in debt.At this juncture there could be distress selling,which is the selling of assets on a large scale which could lead to debt deflation and a depression in the economy.That is where a depression in the economy comes in.Basically,a bankinsolvency takes place when the bankisndebeted to itsdepositors who vary from the customers to institutions.Any party that entrusted the bank with their money or services is a depositor,even a contractor.Now that you know a little more about bank insolvency,stay tuned as next week I will dive further into this topic and explain extensively in simple terms to keep you in the financial know-how.

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