This quarter we have a feature on the Property Market which is a very relevant topic to all of us and have also highlighted the features of the NIC Bank Mortgage Proposition. We are happy to partner with you to make your dreams of owning property come true.

This year we travel to Thailand and China for the second NIC Bank SME Business Trip. Don't miss out on the opportunity to explore business in this trip with NIC Bank. More information on the 11 day trip is also covered in this newsletteras well as to a range of lifestyle offers and benefits also available to you!

Happy Reading!.

Sincerely,Robert Kibaara.

Dear Valued Platinum Customer,

Welcome to the second edition of the NIC Bank Platinum Newsletter.

Our Platinum Banking service is focused on building strong, trusted relationships with you our customers. We continue to strive to provide you with the highest level of customer service and help you attain your financial goals.

In line with our focus, this quarterly newsletter addresses key topics that will assist you to manage your wealth more efficiently.

At NIC Bank, we understand the importance of efficiency and providing a professional yet personal service which underpins the way we approach our service offering to you our clients. To this end, we have introduced exclusive Platinum lounges at our Karen Branch & ABC Branch. In addition to this, we have Platinum services offered at our Riverside Branch and a Platinum corner at our Junction Branch. We encourage you to visit our lounges and enjoy the exclusive service that you deserve.

WELCOME NOTE

Robert Kibaara - Retail Director, NIC Bank Ltd

FEATURED

A. WELCOME NOTE FROM RETAIL DIRECTORB. PLATINUM PRIVILEGES

C. EXCLUSIVE EVENTSD. OFFERS AND LIFESTYLE BENEFITS

E. FEATURED PRODUCTS • NIC SECURITIES • CUSTODIAL SERVICES

PLATINUMBANKING

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V A L U E D • I N S P I R E D • P E R S O N A L I S E D

PLATINUM NEWS

Dedicated Relationship Team

• A skilled and dedicated Relationship Manager assigned to manage and oversee your total relationship with the bank

• A qualified team of Product Advisors/Specialists to assist you with a wide range of financial requirements such as Insurance, Securities and Investments

• A dedicated Platinum Service Line at the Contact Centre• Dedicated Platinum Banking Officers to provide you with day to day service at our

exclusive Platinum Lounges

CALL THE DEDICATED PLATINUM SERVICE LINE

0711 041 041

Faster, simpler and differentiated banking experience

• Access to members only Platinum Lounges at select branches across the network

• Additional convenience of Online & Mobile Banking• Extended banking hours at select branches• Preferential rates on deposits & forex• Preferential terms on loan facilities• Priority processing of transactions and instructions• Platinum Debit Card

Visit our dedicated lounges at the Karen Branch, Riverside Branch & Junction Branch.Look out for more Platinum lounges coming soon!

NIC Platinum Banking is an exclusive members only Banking Proposition for affluent individuals which offers you a highly personalized approach to banking, with a host of products and exclusive benefits designed to meet your needs.

• Platinum Credit Card• Invitation to exclusive Platinum events• Access to lifestyle privileges & discounts • Household recognition of Platinum Account

holder’s spouse & children • Quarterly newsletters

V A L U E D • I N S P I R E D • P E R S O N A L I S E DOUR PLATINUM LOUNGES

PLATINUM OFFERS THIS SEASON

V A L U E D • I N S P I R E D • P E R S O N A L I S E DLIFESTYLE OFFERS

Our packages seamlessly combine concierge services and travel assistance which are expertly tailored to suit your personal requirements. Our Relationship Managers are available to provide you with more information.

PLATINUMPACKAGES

PLATINUM BANKING

V A L U E D • I N S P I R E D • P E R S O N A L I S E DSME BUSINESS TRIP

Dear Esteemed Customer,

Don’t miss out on the opportunity to explore Thailand and China with NIC Bank. Take advantage of our 11 day business trip to Bangkok and Guangzhou from the 17th- 27th of May 2017 for only USD 2,850 per person sharing and USD 3,400 on single board. This great package will include: Return flights from Nairobi to China• Internal flights – Bangkok and Guangzhou• Return airport transfers and ground transport as per the itinerary• Chinese visa• All applicable taxes• Accommodation on half board• Market and farm visits• Professional tour guiding• Dinner cruise and NIC Bank Gala events• Chimelong Show

Please make your booking by depositing USD 1,000 by 31st March 2017 at your nearest NIC Bank Branch into the account below:

Account Name: NIC Bank Thailand China TripAccount Number: 1004430267

For more information on how you can sign up for this exciting and informative trip please call your Relationship Manager or our Customer Contact Centre on 0202888217, 0711041111, 0732141111 or email customercare@nic-bank.com

V A L U E D • I N S P I R E D • P E R S O N A L I S E D

NIC BANK MORTGAGE PROPOSITION

The NIC Bank Mortgage Proposition offers you the following options;

• Purchase Mortgage: Financing to purchase a readymade unit• Equity Release: Financing against your property for further

investment• Balance Transfer/Refinance: Allows you to transfer your

existing facility from another financier• Construction Finance: Financing to build your own home• Plot Purchase: Financing to buy a vacant piece of land

FEATURED PRODUCTS

Enjoy the following benefits with our Mortgage product:

• Mortgage Protection Insurance (MPI) takes care of retrenchment, death and permanent disability

• Flexible repayment periods• No penalty for early repayment• Access to financing for Kenyans in the diaspora• We arrange for valuation and legal processes by bank-appointed service providers Additional feature: Access to prepaid fundsAn effective money management facility where any prepaid amount into your mortgage account, over and above the instalment amount, goes towards reducing the principal balance and you save on interest. At the same time the prepaid funds remain fully accessible to you and can be withdrawn at your discretion. Your current, savings and mortgage accounts will be linked so that when you want to transfer the prepaid funds out of the mortgage account, you can do so automatically.

2016 is behind us but the turmoil and uncertainty that it unleashed in the London property market has yet to settle.

While Land Registry’s house price index through November 2016 showed that average London house price rose by 8.1% year to year to £481,648, transaction volume has dropped dramatically in the year (some data shows as much as 40%). The borough with the biggest increase in asking prices was Hackney at 15.5% and Bromley reflected annual increase of 11.6%. However 9 boroughs, almost a third of London saw declines with Camden lead this group down 16.4%. Forecasts for prime central London prices are that 2016 will end with a 6 – 9% decline.

While none of us know how exactly the property market will perform in 2017, here’s a summary of what has transpired and additional changes that buyers and sellers in the market will need to consider.

Stamp Duty Changes. Stamp duty changes implemented in December 2014 increased the tax owed at purchase for high valued UK properties. While over 90% of UK homeowners would be paying a lesser rate, for those properties worth more than £937K, the stamp duty owed would be more. Given London’s average price of approximately £500K, this has had a disproportionate adverse effect on London.

Additional Stamp Duty Changes. An additional 3% stamp duty tax took effect in April 2016 for additional properties, whether they be second homes or investments. Most effected by this change would be landlords and foreign investors.

V A L U E D • I N S P I R E D • P E R S O N A L I S E DLONDON PROPERTY MARKETTax on Enveloped Dwellings (“ATED”)*. An annual tax for properties owned in corporate structures was initiated in April 2013 to discourage ownership of properties in corporate structures. Originally the tax was applicable to properties over £2M but was reduced in 1st April 2016 to properties over £500K.

Brexit Result. The June 2016 decision for the UK to leave the European Union has created significant uncertainty for many international buyers. The sterling devaluation still hovers around 17% from its value prior to the Brexit vote, having recovered from the initial declines of 30%.

2017 Changes

Reduction of Interest Expense Relief. Historically mortgage interest expense was a deductible expense therefore owners in high tax bands would have relief at their respective tax rate. Starting from 6th April 2017, this will be phased out and replaced with a 20% tax credit.

Annual new rules, due to come into effect on 6th April 2017, will remove the UK inheritance tax protection (“IHT”) available to non-UK domiciled (“non-doms”) owning UK property through non-UK company structures (“off shore entities”). IHT will now be due upon the death of the owner or a lifetime gift of the shares of the entity.

Increased affordability checks for landlords with multiple properties.

While this may all signal doom and gloom, we believe it represents a window of significant opportunity for buyers who are able to effectively analyse the current market dynamics and factor that into an asking price. Many developers have cut prices dramatically on the most expensive developments and some developers are even reconfiguring units to smaller floorplans in order to price them less.

The UK post Brexit may not be sorted out for some time but recent Google and Apple announcements of basing their European headquarters in London is a strong signal to the market of continued multinational corporations confidence in London.

Ultimately the decision to buy or sell is often based on many factors. While the London property market may have turbulent times ahead, we believe that the current market dynamics present good buying and opportunities. For sellers who need to sell, careful understanding and appreciation of current market elements need to be factored into pricing that will position their property to stand out relative to other properties on the market.

If you are considering buying or selling in London and need help analyzing the market, get in touch at info@onyxpropertyconsultants.com

*For those foreign owners of London property who are concerned about the tax implications of the changes, please get in touch as we are happy to refer you to tax advisors specializing in these matters.

2017, Boom or Bust for the London Property Market

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V A L U E D • I N S P I R E D • P E R S O N A L I S E DFEATURED PROPERTIES

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2 Bedroom

3 Bedroom ( Simplex )

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Law Society of Kenya

Vanga Court

Makini Secondary School

irst Assurance

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Gitanga Rd.

Hendred Rd.

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