Muathi Kilonzo- NCBA Investment Bank MD
NCBA Group is ready to change the financial landscape of East Africa in the 2025/26 fiscal year, using a combination of stabilising markets and state-of-the-art technology to attract capital and raise the bank’s presence in the region through mergers, acquisitions, and sustainable finance.
During the CNBC Africa Power Lunch interview on Wednesday, NCBA Bank Investment Managing Director Muathi Kilonzo sketched the bank’s ambitious plan by highlighting the role of technology and good market conditions in making new opportunities accessible for investors all over the region.
Kenyan financial markets are seeing an upswing in confidence that is being driven by a normalised shilling and lower interest rates. Kilonzo pointed out that the 91-day Treasury bill, which was previously in the high teens, has decreased to below 8 per cent, thus creating a very active investment flow at the Nairobi Securities Exchange (NSE).
Compared to the past when foreign investors were the most influential players, domestic investors are now the ones who have a greater effect on the stock market.
However, the bond market is also receiving positive feedback as retail investors are actively participating more due to the availability of technology-driven platforms that have been introduced by the Central Bank.
“This is the revolution in retail bond investments,” said Kilonzo, explaining how digital methods are opening up financial markets to everyone.
“People are using mobile banking mainly because it is convenient and fits perfectly into their busy lifestyles. The trend shows that mobile banking is becoming the leading means for the clients to interact with their banks” said Kilonzo
In particular, technology is the centrepiece of NCBA’s plan for wealth management and advisory services. To provide clients with faster and more accurate investment decisions that match their risk and return profiles, the bank is implementing artificial intelligence (AI) into the brokerage and wealth management segments of its operations.
“AI will act as a major factor,” said Kilonzo, explaining how AI was involved in bringing about the bank’s transformation. NCBA’s app-based platforms are also part of the revolution in access; they have advantages over conventional brick-and-mortar models as they are able to deliver user-friendly financial products straight to the consumers, who number in the millions, without going through physical stores.
The trend is consistent with the rise in demand for easily accessible banking solutions, which are suited to contemporary hectic and speedy lifestyles.
The unit trust market is going through an explosive growth phase, which is mainly the result of NCBA’s online channels that give investors the opportunity to put their money in various instruments, even those funds which are completely foreign. These products allow investors to take on more risks and also have access to other currencies, which is exactly what happens when the demand for more diverse investment options rises.
Furthermore, as Kilonzo stated, the convenience of mobile banking is turning it into the preferred customer-bank interaction method, which is exactly what NCBA is doing to broaden its customer base.
Locally, NCBA is a major player in capital raising deals, while Kenya is the biggest stock exchange in East Africa.
According to Kilonzo, one of the primary reasons that the listing of Kenya Pipeline Company on the NSE this September is a very exciting event, and it could be the next big thing after Safaricom’s historic listing, as it will attract liquidity and stir up market activity.
“Moreover, since we have a great increase in cross-border mergers and acquisitions in fintech, agribusiness, and energy, and at the same time, Kenyan companies are entering the Ethiopian and Congolese markets, NCBA is strategically positioned to benefit from these trends.” Kilonzo added
NCBA is not only participating in but also magnetic to the East African financial revolution by working with market realities and utilising technology, therefore, making markets more accessible, durable, and ready for growth in 2025/26