KCB Group CEO, Paul Russo /FILE
Industry captains have described last year as the most turbulent in recent times.
The Star’s Victor Amadala spoke to CEOs of leading private and government institutions about how their firms survived 2024 and their prospects for this year.
Paul Russo, Group CEO and MD KCB Group, describes 2024 as the year of resilience and adaptation.
He says the year was full of turbulent political developments, deep-cutting policy changes, relatively high interest rates, a rise in non-performing loans, and runaway inflation that tested the country’s resilience.
“As the leading regional bank, we closely monitored these events and quickly adapted to support our customers and the broader economy in bouncing back, all while maintaining a focus on delivering sustainable value to our shareholders and driving economic growth across all our markets,’’ says Russo.
He explains that the financial sector’s key focus was navigating a challenging operating landscape occasioned by rising non-performing loan rates and pressures to drive private sector credit growth.
“This created a situation where banks had to navigate the complexities of maintaining profitability while managing heightened risks.”
Looking ahead, Russo says there is cautious optimism for recovery as inflationary pressures ease and credit conditions improve with customers set to start enjoying the impact of lowered Central Bank Rates (CBR).
“Generally, we remain optimistic about the regional economic prospects. We anticipate that East Africa’s economies will defy expectations in 2025.
In Kenya, the expectation is that inflation remains controlled even as the government implements robust measures to enhance money circulation within the economy, fostering growth and stability.”
His Kenya Depositors Insurance Corporation (KDIC) counterpart, Helen Chepkwony says that they have put in place policies and strategies that are geared towards enhancing the corporation’s mandate and strengthening the financial sector in the new year.
“It is envisioned that implementation of these strategies contained in the corporation’s strategic plan 2023- 2028 will enable KDIC to achieve its vision of becoming a reliable, effective deposit insurer and resolution authority,’’ Chepkwony said.
This year, she said that KDIC has lined up more dividend payouts to depositors of 19 institutions in liquidation and a possible review of the coverage limit.
“Towards this end, any depositor who was affected by the collapse of 19 financial institutions in liquidation is encouraged to reach out for updates on pending payouts. So far, we have paid out Sh90 billion to affected customers and remain committed to promptly settling all outstanding supported claims.”
Annepeace Alwala, Vice-President, Global Service Delivery, Sama AI on her part said that 2024 was a year of remarkable resilience for Kenya, showcasing the country’s collective ability to navigate challenges and move forward with determination.
“I remain highly optimistic about the opportunities that lie ahead, particularly in the realm of digital transformation, Alwala says.
Globally, she said they are witnessing an unprecedented acceleration in technology adoption—from advancements in AI and machine learning to the growing proliferation of the Internet of Things (IoT).
“These trends are reshaping how businesses operate, how societies connect, and how we address global challenges. It’s time to fully embrace the digital era and unlock opportunities that create lasting impact for communities and economies alike.”
She sees immense potential for Kenya to not only harness these transformative technologies but also position itself as a global leader in driving sustainable and inclusive innovation.
According to her, Kenya as one of the leading GBS destinations attracts more than $500 million (Sh65 billion) in annual revenues.
“While significant progress has been made despite stiff competition, complacency is not an option. To maintain its competitive edge, Kenya must safeguard its market position and foster an enabling environment to deepen opportunities in the GBS sector.”
Erick Massawe, Kenya Country Manager at Watu reflects on a year of bold strides and transformative impact at his company.
He explains that since its inception, the firm has unlocked $1 billion close to (Sh130 billion) in credit, enabling clients to thrive and contribute to economic growth.
In Kenya alone, this has translated into $400 million (Sh51.8 billion) in annual income for entrepreneurs, showcasing the transformative power of financial inclusion.
“As we approach Watu’s 10th anniversary in 2025, we reflect on a decade of innovation, resilience, and impact. With a focus on bridging the digital divide and expanding opportunities, we remain steadfast in our mission to build a future where progress and possibilities are limitless.”
According to him, the firm’s focus will be twofold: enhancing access to affordable smartphones to drive digital transformation and strengthening the local ecosystem to support the growth of electric vehicles (EVs).
He says that Africa’s EV market presents a significant growth opportunity with projections to grow at a 15 per cent compound annual growth rate (CAGR) between 2022-2027.
“By championing electric mobility and advancing digital inclusion, we aim not only to reduce our carbon footprint and bridge the digital divide but, more importantly, to drive socio-economic development across the continent.”
