Annual REPORT

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26 BORROWINGS – Group & Bank (Continued) Facilities: NOTES TO THE FINANCIAL STATEMENTS (Continued) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 EIB loan is a long term, unsecured floating rate and fixed arte facility which is denominated in EURO, USD and KES. The EURO and USD loans are repayable within 5 years while the KES loans are repayable within 7 years. The interest rate charged for a non KES tranche is based on margin of 1.85. For KES Tranche a margin per annum fixed for the life of the relevant tranche, equal to 1.85% plus a currency risk premium determined in accordance with the following table is charged. Tenor of the Tranche ( years) Currency risk premium p.a 4 years 5.5% 5 years 6.0% 6 years 6.5% 7 years 7.0% PTA loan 2 Sh loan is a long term facility, repayable within 5 years. The interest rate charged is 12.5% p.a. The loan was received in November 2015 and matures in 2018. The Kenya ICT Board - Pasha Loan is a credit from the International Development Authority advanced to the Kenya Information and Communication Technology for the purposes of developing the digital villages program. Family Bank is charged with managing the disbursements of the loans. The Oiko loan is credit from Oiko Credit for the purpose of targeting financial intervention in sanitation and hygiene The interest charged is 10.4% on a reducing balance basis it will be repaid in 6 annual instalments of Shs 166,666,667. The Finish Ink Loan is a fund delegated to Family Bank Ltd by Finish Ink for the funding of various sanitation projects in Kenya. Family Bank Limited does not pay any interest on these funds. Expenses incurred in respect to this fund are offset off the fund amount. The EIB loan is a long term facility repayable in 6.5 years .The interest rate charged is 9.78% p.a. The loan repayments are due on the 10 th of July and 10 th of January of every year. The principal amount of the loan is to be paid commencing 10th July 2016. During the year, Family Bank issued a multicurrency medium term note and listed it on the Nairobi Securities Exchange , Fixed Income Segment on 26th October 2015.The par value accepted by the bank from investors was Shs 2 billion while the amount received was 1.895 billion. The fixed rate portion was issued at a discount of 122 million .The term of the bond is 5.5 years. The interest rates for the three categories available to the investors were;- · Fixed rate bond 13.75% · Mixed rate bond 14% · Floating rate bond .Referenced 182 day treasury bill rate subject to a floor of 12.5% and a cap of 17.5% The effective interest rates for the various loans are as follows: 2015 2014 % % EIB 9 9 OIKO Credit 10.4 8 PTA Loan 2(USD) 8 8 Kenya ICT Board – Pasha loan 4 4 Waste Finish ink - - Subordinated Corporate Bond 15 - ==== ===== 92
NOTES TO THE FINANCIAL STATEMENTS (Continued) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 Group Bank 2015 2014 2015 2014 27 OTHER LIABILITIES Sh’000 Sh’000 Sh’000 Sh’000 Provisions and accruals 29,018 15,138 29,018 15,138 Leave pay provision 40,857 30,765 40,857 30,187 Cheques for collection 158,676 150,715 158,676 150,715 Other payables 521,584 461,495 519,111 459,779 _________ _________ ________ _________ 750,135 658,113 747,662 655,819 ======== ======== ======= ======== 2015 2014 28 DIVIDENDS – Group & Bank Sh’000 Sh’000 a) Unclaimed dividends At 1 January 12,587 6,514 Declared 622,594 222,809 Paid during the year (606,592) (216,736) _________ _________ At 31 December 28,589 12,587 ======== ======== Unclaimed dividends relates to dividends declared in past years by the group but not collected by the shareholders or their representatives. b) Proposed dividends The directors recommend a first and final dividend of Sh 0.50 (2014: Sh 0.50) per share for the year amounting to Sh 622,593,598 (2014: Sh 622,593,598) subject to shareholders’ approval at the Annual General Meeting. Proposed dividends are not accounted for until they have been ratified at the Annual General Meeting. Group Bank 29 DEFERRED TAX LIABILITY 2015 2014 2015 2014 Sh’000 Sh’000 Sh’000 Sh’000 The deferred tax asset computed at the enacted rate of 30% is attributed to the following items: Deferred tax assets: General bad debts provision (15,889) (11,077) (15,889) (11,077) Excess depreciation over capital allowances (8,384) (8,135) (8,328) (8,154) Leave pay provision (12,386) (9,230) (12,257) (9,056) Deferred tax liabilities: _________ _________ _________ _________ (36,659) (28,442) (36,474) (28,287) ======== ======== ======== ======== Revaluation surplus 33,892 33,869 33,892 33,869 _________ _________ _________ _________ Net deferred (asset)/tax liability (2,767) 5,427 (2,582) 5,582 ======== ======== ======== ======== 93
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ANNUAL REPORT AND FINANCIAL STATEME
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BOARD OF DIRECTORS ANNUAL REPORT AN
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CHAIRMAN’S STATEMENT REVIEW OF TH
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FAMILY BANK INSURANCE AGENCY LIMITE
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CORPORATE GOVERNANCE STATEMENT ANNU
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Annual REPORT

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