The East African
Tuesday January 19 2021
An ATM booth. Most customers in Kenya opted to use mobile money over debit or credit cards in the wake of the pandemic. PHOTO | FILE | NMG
Summary
Customers stopped using debit, credit and prepaid charge cards in favour of mobile money payment platforms such as M-Pesa, whose transactions of up to $9.17 were free.
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Top banks in Kenya have raised a red flag over an expected significant drop in net earnings for the year 2020.
They cite deteriorating economic conditions and the Covid-19 containment measures, which have seen the entire banking industry lose over Ksh1.2 billion ($11 million) worth of revenues from card payments to telcos mobile payment platforms in nine months.
BUSINESS NEWS
Co-operative Bank of Kenya City Hall Branch, Nairobi. [Wilberforce Okwiri, Standard]
Co-operative Bank of Kenya projects its profit to drop significantly this year due to the coronavirus pandemic but expects the reduction to be lower than the rest of the industry.
In a statement yesterday, the listed bank said it had made positive strides in a dark period that was characterised by a drop in incomes for households and businesses owing to the adverse effects of the pandemic.
Profits for last year are expected to decline compared to 2019 due to increased provisioning of loans for borrowers adversely affected by the Covid-19 pandemic.