Zanzibar. President Samia Suluhu Hassan said on Tuesday August 20, 2024 that she was impressed by NMB Bank’s social investments, saying the lender was making substantial contributions to national development efforts.
President Hassan made the remarks when she launched a preparatory school in Makunduchi Zanzibar as part of this year’s Kizimkazi Festival.
NMB Bank has bankrolled the construction of the school to the tune of Sh800 million.
“The benefits of such investments have not only been in Zanzibar but across the whole of Tanzania,” she said.
Known as the ‘Dr Samia Suluhu Hassan Preparatory School’ which is located at Tasani, the facility comprises five modern classrooms for 40 pupils each.
According to President Hassan, the children’s centre was part of the implementation of the government’s Early Child Development Policy, which, apart from imparting children with educational skills, also plays a critical role in their upbringing as responsible citizens.
She stated that the 35 similar centres, which Zanzibar’s Education and Vocational Training Minister Lela Mohamed said will be put up in all districts in the isles, should be built based on the standards and approach used by NMB Bank.
“You can make improvements, but these structures are ideal for preparing our children before they join primary education,” President Hassan said.
NMB CEO Ruth Zaipuna told the gathering that witnessed the launching and handover of the centre that the NMB investment was not only in the school’s buildings but also in the future of the children of Makunduchi and the whole of Kizimkazi.
“For us, this school is a symbol of hope and new dreams for our children. It is a place where they will build a solid education foundation that will help them in their future lives,” she told President Hassan, adding that to better cater for that, the construction cost of the centre had to be increased from the initial Sh600 million to Sh800 million.
The additional cost, Ms Zaipuna pointed out, took care of classroom and office furniture, a canteen and an air-conditioning system in order to better both learning and teaching at the school.
“We strongly believe that by investing in education, we can make a huge difference in society and contribute to the preparation of future leaders who are not only patriotic and knowledgeable but also capable of addressing life challenges with integrity, thus meaningfully contributing to the development of our country,” she added.
Ms Zaipuna said NMB undertakes these social investment initiatives as part of the implementation of its corporate giving agenda, whose major focus is education, health, financial education, and humanitarian support.
The bank’s corporate social responsibility (CSR) policy requires it to invest one percent of its net income annually and this has seen financing the acquisition of hundreds of desks and the purchase of hospital equipment across the country.
“Through this policy, we have continued to support improvement of the learning environment of various schools in both Mainland Tanzania and Zanzibar by contributing office and classroom furniture,” Ms Zaipuna said, noting that in the first half of this year the bank has provided over 6,000 desks that have enabled 19,000 students to study comfortably.
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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.
