The CEO of WHI, Dr Fred Msemwa, said the target was to collect Sh7.5 billion from the sale of units, which started in November and continued through December last year. Due to great response, the value of a unit has increased to Sh100.54 from the initial Sh100, and is expected to rise further.
According to Dr Msemwa, in a period of two months, a total of 3,800 investors have registered with the fund, out of which 800 have made investments as applications continue to flow. He also mentioned that the use of the Government Electronic Payment Gateway (GePG) has also contributed to the fund exceeding its target.
The fund manager stated in addition to the money invested, the fund has invested in government bonds in an effort to expand and boost revenues. He has reassured investors that their money is safe and that the fund is managed by experienced professionals with a proven track record.
Dr Msemwa added that the investors came from four groups: individuals, groups, children under 18 years and various institutions, including bodabodas, farmers, food vendors, fishermen, and public servants. He emphasized that the fund is open to all, regardless of their background or financial situation.
Prime Minister Kassim Majaliwa is expected to officially launch the Faida Fund on Saturday. He added that the fund will be very profitable as charges are low, and it aims to help small investors who are unable to invest in the capital markets due to a lack of capital.
The head of Capital Markets and Financial Services at CRDB, Mr Masumai Hemed, said that the bank is happy to be the custodian of the fund because it has had a great response. He added that the bank has 15 years of experience managing investors’ deposits, so the funds are safe because there are good systems that ensure the records and calculations are safe all the time.
“This fund has many advantages, as investors can use it as a guarantee to apply for bank loans,” said Mr Hemed.
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Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
