NDEGWA FAMILY BUYS AFRICAN LAKES TECHNOLOGIES FROM TROUBLED GROUP

Mergers, Acquisitions and Financial Results

The troubled African Lakes group is selling African Lakes Technologies to the Kenyan Ndegwa family. The company has been based in Kenya for two years, having moved its main operation there from Zimbabwe. The family has bought both businesses.

African Lakes Technologies will relaunch itself into the local market as Paynet Kenya Ltd following a management buyout spearheaded by the Phillip Ndegwa family. The prominent business family has investments in the insurance, banking and real estate industries among others.

The Group Managing Director, Bernard Matthewman, said the buyout, led by the Ndegwa family, was occasioned by African Lakes Corporation Plc’s search for additional investment to grow its other businesses.

Matthewman said that the group’s e-finance solutions, spearheaded by the Paynet service, would continue in the same manner as before and remain the primary offering of the two businesses.

Following the changes, the group’s management and operational reporting lines will continue with Matthewman as group managing director while the technical side will be handled by Ron Webb. Matthewman also announced the appointment of Mike Ralston, the former Chief Executive for African Online Holdings, as the new general manager for the Paynet group.

He said Paynet would focus on providing electronic banking services, and was active in ongoing support and roll out on behalf of partner banks. He said to date, 14 financial institutions in Kenya and Zimbabwe offer the Paynet service. Matthewman said Paynet was currently developing an Internet banking product that is due for release in July this year.