Rwanda overtakes Tanzania, Kenya in cheap broadband internet race

Rwanda overtakes Tanzania, Kenya in cheap broadband internet race

Rwanda now offers the cheapest broadband internet in the East African Community bloc, leapfrogging Kenya and Tanzania, a new report shows.

New data published by British technology research firm Cable shows that netizens in the Paul Kagame-led country are paying a monthly average of $43.22 (Sh5,603) for fixed broadband connection this year down from the $60.96 (Sh7,904) that was charged last year, marking a 29.1 percent year-on-year drop.

Tanzania, which led the pack last year, saw its average cost rise to $43.44 (Sh5,632) up from $42.31 (Sh5,485) pushing it to the second position, while Kenya’s costs dropped marginally from $49.13 to $47.73 (Sh6,188) resulting in the country holding the third position this year.

Burundi has the highest charges in the region at $304.57 (Sh39,490) which is a drop from last year’s $383.79 (Sh49,604) followed by the Democratic Republic of Congo (DRC) whose average pricing has dropped to $170.97 (Sh22,097) from $193.46 (Sh25,004) last year.

Citizens in Somalia and Uganda are this year paying a monthly average of $54.58 (Sh7,054) and $52.59 (Sh6,797) from $52.50 (Sh6,785) and $58.69 (7,585) respectively last year.

The publication did not contain pricing figures for war-torn South Sudan.

Globally, Kenya ranks 125th while it holds the 20th position in sub-Saharan Africa beating continental powerhouses like South Africa, Ghana, and Cameroon.

According to the data, citizens of Sudan pay the lowest monthly rates globally at $2.40 (Sh310), with all sub-Saharan African nations ranking within the top 230 cheapest jurisdictions.

In Kenya, the fixed internet market has remained under the tight grip of Safaricom which enjoys a 37.4 percent market share as per the latest statistics published by the Communications Authority of Kenya (CA).

The giant telco is trailed by Jamii Telecommunications Limited (JTL), Wananchi Group-owned Zuku, and Poa Internet Kenya Limited at 22.6 percent, 18.8 percent, and 13 percent share respectively.

The market has in recent times signaled hope for cheaper pricing with a new wave of intensified competition that’s being chiefly driven by an aggressive influx of commercial satellite internet providers with low-cost offerings.

Analysts have opined that traditional internet vendors will either have to toe the line regarding pricing, or risk being pushed out of business by market forces.

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Britam half-year net profit hits Sh2bn on higher investment income
Tanzania Foreign Investment News
Chief Editor

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.

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