^^thank you Matthieu, my efforts have finally paid dividends, my second task to contact moderators to move all business threads under the business sections. :cheers:

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Sh22bn released for key projects

http://www.nation.co.ke/image/view/-/676360/highRes/109319/-/maxw/600/-/1gg76iz/-/PIX2.jpg Finance Minister Uhuru Kenyatta (left) flanked with the Trade Minister Amos Kimunya address participants during the Common Market for Eastern and Southern Africa meeting held at the Hilton Hotel. PHOTO/ Fredrick Onyango






The Sh22 billion intended for various public projects across the country has been released, according to a parliamentary committee.




During a meeting with the Committee on the Constituency Development Fund (CDF) on Thursday, Finance minister Uhuru Kenyatta said the economic stimulus package cash had been released to the ministries undertaking the projects.

And on Friday, while responding to questions from journalists in Nairobi, Mr Kenyatta said 50 per cent of the budgetary allocation had been released and some ministries had started spending the money.

Allayed fears

He allayed fears that several public projects were running behind because of delayed release of billions of shillings set aside in the Budget.

There were fears that schemes, including the free primary education programme, Kazi Kwa Vijana initiative and projects under the CDF kitty could be affected by the delays.

“We have released all the money to the extent that is required,” he said. “Some ministries like that of Fisheries, Agriculture and Regional Development are already carrying on with their projects.”

Earlier, three Cabinet ministers and one permanent secretary who accompanied Mr Kenyatta to the Thursday meeting confirmed that they had already received their share of the money.

The ministers are Mr Chris Obure (Public Works), Mr Paul Otuoma (Fishing) and Mr Sam Ongeri (Education) and the PS is Mr John Lonyangapuo, who represented Industrialisation minister Henry Kosgey.

Speaking on Friday, the committee chairman, Turkana Central MP Ekwee Ethuro confirmed that the Finance minister had assured members that the projects would finally kick off, four months behind schedule.

“Given that the projects will be implemented using the CDF framework, we invited the minister to update us on the status of the funds and he explained himself very well, we are satisfied that everything is now on course,” Mr Ethuro told the Nation on Friday.

Both Mr Ethuro and Planning minister Wycliffe Oparanya had recently expressed concern that the projects, which were to be implemented between last June and December, were running behind.

The government, in a policy document released recently, terms the package a “high impact intensive programme” to stimulate economic activity at the local level by creating employment opportunities.

It is also expected to spur entrepreneurial activities and support the building blocks to ensure a healthy and educated populace, according to the document.

If all had gone according to plan, all the projects under the package were to be implemented by December 31, only two months away.


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Central Bank profit up to Sh23bn

http://www.nation.co.ke/image/view/-/677976/highRes/109953/-/maxw/600/-/6ap8hu/-/OERREGENCY2906.jpg The sale of Grand Regency Hotel, now Laico Regency earned the Central Bank Sh3.1 billion and helped push up its profit. Photo/FILE
By WACHIRA KANG’ARUPosted Tuesday, October 27 2009 at 15:39

Proceeds from the controversial sale of Grand Regency Hotel and gains from revaluation of foreign currencies have pushed up Central Bank of Kenya’s profit by almost three times.

Financial results contained in this year’s annual report shows that the government bank recorded Sh23.2 billion in profit for the year ending June 30, 2009 against a profit of Sh8.9 billion recorded in similar period last year.

CBK does not pay taxes but will be paying Treasury, its sole shareholder, Sh7.2 billion in dividend almost doubling the Sh4 billion it paid for last financial year.

“This substantial higher performance over the previous year is due to foreign currency translation gains that amounted to Sh13.5 billion in the year under review…, and proceeds from sale of Grand Regency Hotel amounting to Sh3.1 billion,” reads a management statement contained in the report.

The bank, however, recorded a 20 per cent drop in its revenue with net interest income falling from Sh10.3 billion to about Sh8.4 billion in the current report year, indicating reduced business.

It also made a Sh3.3 billion loss in forex trading (32 per cent) lower than in 2008 “owing to the ongoing global economic turmoil.”

Foreign currency translation gains occur due to change in the valuation of the Kenya shilling against the dollar - making it a book profit -, if the shilling strengthens against the dollar, a book loss would be reflected in the accounts.

In fulfilling its statutory mandate - section 26 of the Central Bank of Kenya Act requires it to maintain reserves of external assets of at least the value of four months of imports as recorded and averaged for the last three preceding years.

CBK closed the year with a net balance of Sh23.2 billion in shilling terms but held in foreign currency.

The revelation that the sale of Grand Regency Hotel, now Laico Regency, earned the government Sh3.1 billion and not the Sh1.8 billion - as claimed by Lands Minister James Orengo forcing the then Finance minister Amos Kimunya to resign - is bound to re-ignite the debate on the motive behind the claims.

Prior to the sale, CBK was holding the hotel as security against monies Uhuru Highway Development Company owned by Mr Kamlesh Pattni, was to pay the bank.

Central Bank was then accused of faulting the Public Procurement Rules by not advertising the sale of the hotel and Mr Kimunya of lying to Parliament on whether the hotel had been sold.


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Capital market players will soon operate under a new stringent regime, as the regulator moves to bring order to a sector that has seen rogue brokers literally smile all the way to the banks with client’s money.
Early this year, Treasury appointed International Securities Consultants of Hong Kong (ISC) and the law firm of Kaplan and Stratton Advocates (consultants) to undertake a review of the legal and regulatory framework of the Capital Markets Authority under the Financial and Legal Sector Technical Assistance grant.

In preparation for the new regulation, CMA has invited industry players and the general public to provide input into the draft regulation that it hopes will restore investor confidence.

In December, the regulator will hold a workshop that is expected to bring together players from a wide representation to be able to get as diverse views as possible.

Visible sign

The move by CMA will be the most visible sign of a transition to a new regulatory regime in the local capital markets.

The review intends to address any gaps in the capital market that may have been identified over time.

As one of the raft of measures, the regulator, as part of its role in risk management, will classify stockbrokers and investment banks according to the strength of their financial position, mental astute of the management team and market exposure in terms of products and client base.

Stockbrokers and investment banks will be required to increase capital to Sh50 million up from the current Sh5 million and to Sh250 million from Sh300 million respectively.

Following this, it means that commercial banks and stockbrokers as well as investment banks will be required to file more reports, change key management positions, open and close branches and take over new entities in the course of their functions.

Also on the cards is a requirement that stockbrokers and investment banks restructure their boardrooms and increase their paid up capital.

Not be allowed

Individuals with more than or 25 per cent of a brokerage or investment company will not be allowed to hold any management position.

The draft regulations are part of CMA’s move to instill transparency in the market.

Over the past two years, three stockbrokers have gone under due to poor management and fraud perpetuated by lack of controls in such organisations taking with them about Sh3 billion of investors’ money.

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The government is working on a legal framework that will enable commercial banks to transact business through third party agents.

Speaking during the opening of three day conference organised by the microfinance network, Finance minister Uhuru Kenyatta said the introduction of branchless banking was intended to increase penetration of banking services in the country.

“To enhance financial services, Central Bank and other stakeholders are working on legal framework that will enable branchless banking through use of third party agents like Saccos, micro-finance institutions, retail outlets and petro stations.” he said.

Mr Kenyatta said the government would also improve the regulatory environment for the development of the micro-finance institutions.

He said the micro-finance Act 2006 was now operational, and a separate division at Central Bank to supervise the sector had been established.

He said the technical capacity would be continually improved.

Micro-finance Network is a global membership of institutions in the microfinance institutions.

Increasing access to financial services to households and small and micro enterprises, Mr Kenyatta said, were priority in the financial sector reforms.

According to study by FinAccess, only 27 per cent of active population have access to formal finance, and 35 per cent to informal finance services.

However, 38 per cent are still excluded from accessing any form of financial services.

He said it was urgent that more people be availed with financial services, adding that the government and the private sector had partnered to increase the population in formal finance to 62 per cent by 2030, as stipulated in the development blueprint that aims to turn Kenya into a medium income economy in 20 years.

Equity Bank managing director, James Mwangi said the MFIs had survived the global financial crisis due to the low integration with international financial systems, and it would not be prudent to introduce stiffer regulations which could stifle the growth of the sector.

“Traditionally, any crisis is followed by tightened regulation. We are saying that instead of reacting, can we respond to the challenges.” he said.

He said Africa was not affected much by the global crisis because of the conservative regulatory framework.

Instead, he said, the country should learn about issues that cushioned it from severe effects of the crisis, and build on them rather than introduce more regulations that could also kill innovation

An increase in consumer power bills has pushed Kenya Power and Lighting Company’s pre-tax profit for the year ending June 30, 2009 by 75 per cent.

The increase in power tariffs in July 2008 pushed up the cost of electricity by an average of 24 per cent, while improving the power transmitter’s profits from Sh2.7 billion to Sh4.8 billion this year.

Investors at the Nairobi Stock Exchange on Thursday reacted positively to the news, pushing the company’s share price up 11 per cent from Sh125 to Sh139 by close of trading.

During the period under review, the company’s revenue increased by Sh12.5 billion to Sh36.4 billion.

Double-digit

High power bills have been cited as among key contributors to the escalating cost of living, with inflation rates oscillating at double-digit levels.

“This (revenue growth) was mainly due to the tariff increase effected from July 2008, gains from reduction in system losses and enhanced operating efficiency,” KPLC chief executive officer, Joseph Njoroge, said during a press briefing in Nairobi.

Effects of the prolonged drought in the country and rising international oil prices during the year on consumers are also clear from KPLC’s financial results for the year, as fuel costs recovered from them in form of fuel charge rose from Sh16.4 billion in June 2008 to Sh28.3 billion.

However, Mr Njoroge said KPLC transfers to thermal power generators and suppliers more than three quarters of the fuel revenue, which increased due to intensified thermal power generation and changes in the international oil market.

New power purchase agreements signed with KenGen and other generators during the year resulted in an increase of about Sh12 billion on non-fuel power purchase costs to Sh18.7 billion.

Mr Njoroge down-played the fear of unsustainability of the company’s performance, given that it is as result of the tariff hike, saying it has put in place measures to boost its revenues going forward.

Noting that only 20 per cent of Kenyans have access to electricity, he singled out connection of new customers as one of the measures.

“We expect to get good results this year and sustain our profitability because we have many opportunities for growth. For instance, we expect to connect about 200,000 new customers, especially through rural electrification,” he said.

Mr Njoroge revealed that the collapsed Pan Paper Mills in Webuye, owes the company Sh200 million in unsettled power bills, but said it is negotiating with the government in a bid to recover it.

The directors recommended payment of a final dividend of Sh4 per share to bring the total dividend paid for the year to Sh8 per share.

Finland will spend Sh3 billion to fund poverty eradication programmes in Western Province. Another Sh1.7 billion from Netherlands will fund water projects in rural areas.

The first initiative will be implemented under the Western Rural Development Programme coordinated by the Ministry of Planning.

The poverty eradication projects will be implemented in Busia and Teso districts. Director of Rural Development at the Embassy of Finland Klaus Talvela and Western PC Samuel Kilele said the projects are to be implemented over five years.

Projects will focus on land agriculture, livestock and bee keeping.

"Poverty levels in Busia are wanting. These are some of the steps towards improving living standards," said Mr Kilele.

The officials said communities would receive funds to initiate water conservation and fish farming projects. They spoke at the Kakamega Golf Hotel during a stakeholders’ meeting. Provincial Co-operatives Officer Nathan Mukhweso said communities would be allowed to initiate projects of their choice.

Mr Mukhweso also said the cooperative movement would be revived to boost savings. Planning Officer Eliud Salano said the projects would roll out starting next February.

"We will be carrying out feasibility studies to ascertain the most viable projects so that residents can be guided accordingly," said Mr Salano.

He said dykes along River Nzoia would be repaired and dams constructed to avoid destruction from floods. Salano said flooding had contributed to poverty.

Local economy

He said fish farming would be given priority in a bid to improve the local economy. Fisheries Minister Paul Otuoma has indicated the Government plans to spend Sh1.7 billion to support fish related projects under the Economic Stimulus programme.

The programme will roll out at constituency level.

On Sunday, Mukhweso said fish farmers’ co-operatives would be used to market products.

Meanwhile, the Government has commenced the disbursement of a Sh1.7 billion grant from the Dutch government towards water projects in rural areas.

The Water Services Trust Fund (WTF) chief executive Jacqueline Musyoki said the projects would take three years.

"They include digging of wells and boreholes in rural areas. This will encompass learning institutions," said Mrs Musyoki, adding the funds would be given to water service boards.

She said 1.6 million people would benefit from the projects through the grant extended to the Government last year. Musyoki spoke at Lake Victoria South Water Services Board offices in Kisumu.

Trade within East Africa Community (EAC) grew by 47 per cent last year despite earlier fears that a regional free trade area would negatively affect economies of some partner states.

An evaluation of the impact of the Customs Union has revealed that intra-EAC trade moved from $1.85 billion (Sh139 billion) in 2005 to $2.72 billion (Sh204 billion) last year.

Exports to the rest of the world also grew by 26.2 per cent last year compared to the previous year.

Tanzania’s Prime Minister Mizengo Pinda called for acceleration of the integration process saying trade performances are a clear indication of the positive trends by the EAC Partner States.

"Contrary to earlier perceptions that the Customs Union would negatively affect the economies of some Partner States in revenue erosion and competitiveness, major benefits have accrued in terms of increased trade and revenue," he said.

A vegetables market. From next year, goods will be traded free of duty within the five partner states of the East Africa Community. Photo: File

Pinda was speaking at the East African Community Regional High Level Forum on Customs Reforms and Implementation of a fully-fledged Customs Union in Arusha at the weekend. Implementation of the Customs Union has been progressive since 2005 through a gradual removal of tariffs on intra-EAC trade.

Improving performance

It was against this background that a gradual phase down of duties on selected lists of goods from Kenya to Tanzania and to Uganda was adopted.

From next year — as per the progression — goods will be traded free of duty within the five partner states of the East Africa Community, that is, Kenya, Uganda, Tanzania, Rwanda and Burundi. The EAC Customs Union will be fully-fledged next year. This is expected to coincide with commencement of the Common Market, which is slated to begin in July next year.

Pinda said with this in mind, improving the performance of the Customs Union should be key to development of the region.

"This is because the EAC would witness not only the free movement of goods enabled by the Customs Union, but also the free movement of persons, labour, services and capital," he added.

Rift Valley Railways has re-launched its train service to Kisumu starting this month.

The train was launched yesterday amid song and dance as it docked at the Kisumu Railway Station with more than 50 tourists from Nairobi.

Starting this week, the train will depart from Nairobi on Fridays and arrive back on Sunday. East Africa Karibu Safaris Paradise, Managing Director Anastacia Wakesho said the aim was to popularise rail travel to Western Kenya.

The move comes when the number of tourists visiting Western has increased since US President Barack Obama was elected to office. There has been an upsurge of local and foreign tourists to his ancestral home.

Different classes

Addressing the Press in the train, Ms Wakesho said trains were comfortable and safer.

RVR Commercial Director James Ng’ang’a said the train had different classes to cater for low and high-income earners. The train accommodates more than 100 passengers and has five double compartments and two single ones.

"If we receive positive feedback from the public and see a need for the train to travel twice a week, we will do so," Wakesho added.

The train will depart every Friday at 6.30pm and return to Nairobi on Monday, at 8.15am.

Kenya's tourism industry is set for major recovery next month, following impressive foreign tourist bookings, according to hoteliers. The industry, which had been dented by the post-election violence early last year, compounded by a global financial crisis that robbed it of holidaymakers, now seems to be looking up.



According to Mr Charles Muya, Serena Beach Hotel general manager, 50 per cent of guests in his establishment are foreign, with the number expected to shoot to more than 80 per cent in December. Speaking during a phone interview on Monday, he said the hotel had a 90 per cent bed occupancy currently, including local tourists, but by mid-month it will be bursting at the seams with guests till next year.

He attributed the increase of foreign holidaymakers’ bookings to aggressive marketing campaigns by the Kenya Tourist Board in major source markets of Europe and other continents. Recently, Tourism minister Najib Balala, announced that the industry has improved remarkably with the number of foreign tourists expected to go above the one million mark, compared to last year’s 725,000.

The setting in of the winter season coupled with Christmas and New Year festivities, he said, would play a part in boosting the number of foreign tourists. “We are glad that bookings from our tourist source markets are on an upward trend compared to last year’s worst performance, which was occasioned by the post-election violence,” the hotelier said.

“From mid-month, we shall have a big number of foreign holidaymakers and in December the industry will have recovered from last year’s downturn,” he said. The school holidays next month are also expected to put the icing on the cake in the sector. Mr Bimal Thaker, Baobab Beach Resort and Spa director, said the hotel currently had more than 70 per cent of foreign guests and that bookings from European source markets were on the increase.

He expects the hotel to record a 100 per cent occupancy in early December, with majority of visitors being foreign holidaymakers. “In our hotel, we have a large number of foreign guests and as we gear towards December, we would have recovered from the drought of foreign tourists,” he said.

“Local tourists too, are expected to flock our establishments, especially during Christmas and New Year. In December up to March next year, business will be better compared to last year,” he added.

During winter

Mr Isaac Rodrot, Temple Point general manager, said hotels in Malindi and Watamu were expected to record higher numbers of foreign tourists in mid-December. He added that bookings are set to shoot up to more than 50 per cent, compared to between 10 and 30 per cent currently.

“Foreign tourist numbers are expected to pick up from mid-December as Italian tourists will be coming on holiday during the winter, as well as Christmas and New Year.”

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The government is banking on small and medium enterprises (SMEs) to spur industrial growth.

And to achieve this, training for 630 entrepreneurs under the Jitihada business plan competition kicked-off on Tuesday.

The initiative is meant to provide participants with innovative ideas, expert coaching and individual mentorship to help them develop and refine their business plans.

The five-day event going on simultaneously in the eight provinces will provide a detailed overview of a business plan and cover topics such as entrepreneurship and communication, strategic and business planning, marketing, operations, human resources and finance among others.

“Entrepreneurs will be equipped with knowledge and skills to develop competitive strategies, source suitable markets, manage finances better and generate viable solutions for their businesses,” said Minister for Industrialisation Henry Kosgey in a speech read on his behalf by Mr John Mosonik secretary in the ministry in Nairobi.

At the end of training, top three trainees from each province will receive special recognition and cash awards of Sh100,000, Sh75,000 and Sh50,000 respectively before proceeding to the national level at which the top entrepreneur will receive Sh1 million.

Aftercare business development services and guidance in financial and market linkages will be provided to all applicants in the Jitihada business plan competition when the whole exercise is done.

Statistics indicate that small and medium sized businesses contribute over 75 per cent of the country’s wealth and create about 80 per cent of jobs opportunities in Kenya.

Jitihada is a programme under the Micro, Small and Medium Enterprises competitive project in the Ministry of Industrialisation.

Implemented by the Kenya Institute of Management, Jomo Kenyatta University of Agriculture and Technology and TechnoServe, the plan seeks to identify growth oriented and innovative business ideas that can be nurtured into vibrant and sustainable business enterprises.

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Foreign investors from the United Kingdom (UK) are seeking to build partnerships and increase investment in Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144027768&cid=14&#).
A delegation led by Birmingham Chamber of Commercehttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144027768&cid=14&#) and Industry (BCCI), one of Britain’s leading support organisations, is in the country to explore new investment opportunities.
The group include companies wanting to invest in key development sectors like water, roads and renewable energy and offering goods and services tailored to the Kenyan business and consumers.
The trade mission is also expected to travel to Uganda and Tanzania to look for other regional investment opportunities.
Mr Jonathan Webber, head of the delegation and director of the International Trade at BCCI, is also expected to push for the strengthening of local chambers of commerce in Kenya, Uganda, Ethiopia, Burundi and Mauritius.
Amongst the companies representatives include solar experts (Daima Energy Solutions) and Octagon Europe Ltd.
clean energy
Daima’s plans to manufacturer solar energy products locally is expected to have real impact in Kenya by providing affordable clean energy, creating job opportunities particularly targeted at the youth and raising environmental awareness amongst consumers.
Octagon Europe, which offers sustainable and affordable housing solutions, hopes to work with agencies, Government and local business to ensure that slum dwellers, refugees and internally displaced people have access to decent and durable housing.
The British High Commission’s UK Trade and Investment team (UKTI), which facilitated the visit, have created targeted programme for each of the delegates in the mission, focusing on meetings with local businesses.
The move is part of UKTI’s efforts to encourage investments in Kenya and build on the strong commercial links that exists between the two countries.
The British High Commission said the current BCCI mission underlined the interest from UK companies in doing business in Kenya, and the East African region.

Keep it up DB. Sometimes I dont really have time to go through business news in the daily papers. I find this a good way to catch up on the news.:)

Keep it up DB. Sometimes I dont really have time to go through business news in the daily papers. I find this a good way to catch up on the news.:)

^^damn, this left me in stitches,:lol::lol: wewe ni mkali kweli:lol:

Pastoralists and livestock farmers who lost entire herds during the recent drought will benefit from Government restocking exercise, Director of Livestock Julius Kiptarus has said.

The director said Sh130 million had been set aside to buy heifers and goats, which would be distributed in most affected districts.

He said 81 districts were worst hit by the famine.

"We are working with district steering committees to evaluate the number of people affected before we start restocking," Mr Kiptarus said.

At the same time, Kiptarus announced the ministry had used Sh200 million to buy vaccines and a similar amount to buy animal feeds and supplements for weak animals.

He was speaking at Dairy Training Institute in Naivasha at the end of a one-week course on poultry production and value addition sponsored by the Israeli government.

Restored hope

He said the drought cost the livestock sector Sh20 billion in terms of dead animals and lost products.

The director announced 300,000 cattle and more than 200,000 goats and sheep were lost to drought.

Meanwhile, residents of Naivasha have reason to smile as water levels in Lake Naivasha have risen as rains continue to pound the area.

The rains restored hope to thousands of lake water users including fishermen after the water level started to rise.

River Malewa, which drains its water into the lake, started flowing again thus increasing the water level that had drastically reduced by a third. According to Mr David Kilo of the lake’s anti-poaching unit, water levels had risen by close to a metre in the last one-week.

Effects of rain

"We have noticed considerable changes and if rains continue for a month, the levels will rise even higher," said Kilo. He was, however, quick to note watercolour had changed, a situation he attributed to siltation.

On his part, District Fisheries Officer Vincent Kinyua said effects of the rain were yet to be fully felt in the lake, but expressed hope situation would soon change.

Elsewhere, a senior State official has urged people living in the Lake Victoria basin to use Nile waters.

Industrialisation PS John Lonyangapuo said the Nile Treaty, which allowed only Egypt and Sudan exclusive use of the water should be ignored.

The PS said the treaty was to blame for massive poverty among people living in the basin.

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The government is expected to reintroduce the much-touted comprehensive National Social Health Insurance Fund early next year, Medical Services minister Prof Anyang’ Nyong’o said on Tuesday.

Prof Nyong’o said the Kenyan healthcare system has become too costly due to a high rate of defaulting on payments, and hence the reason he wanted the proposed scheme to be reintroduced.

“All the previous contentious issues in the scheme have been solved and we are only waiting for the cabinet approval,” Prof Nyong’o said.

Under the proposed scheme, the government would be required to set a certain amount of money from the exchequer to cater for the health services of the poor.

The scheme is a modification of the one passed by Parliament in 2005 but which President Mwai Kibaki declined to assent to.

He said the bone of contention in 2005 was how to pay for those who didn’t contribute to the fund particularly the poor.

The scheme was compulsory, but the minister says the current arrangement is optional but poor Kenyans will be catered for by the government.

Prof Nyong’o spoke at the launch of a new health insurance product dubbed Blue by CfC Life in partnership with Liberty Health, a wholly owned subsidiary of the Standard Bank Group of South Africa.

The product, in two options, Blue Gold and Blue Diamond, will have full cover on treatment of chronic conditions such as asthma, diabetes, hypertension and HIV and AIDS.

CfC Life managing director, Mr Abel Munda said Blue will provide a dedicated client liaison officer and a 24-hour advice and support across Africa which will also include specialised care for chronic disease management.

Many Kenyans lack access to health care, with general medical inflation standing at 35 per cent.

In addition, only two per cent of the Kenyan population is covered by private insurance companies for healthcare, while another 10 per cent can afford medical cover but do not have it, which means most Kenyans are exposed.

The health situation is further compounded by the fact that the number of chronic diseases is reported to be on the increase with cases of cancer doubling every year.

As a signatory to the World Health Organisation Abuja Declaration, Kenya is required to spend at least 15 per cent of its national income (Gross Domestic Product) on health, up from the current ten per cent.

The European Union has said it will spend Sh10 billion in Kenya over the next five years on various development projects.

Head of delegation to Kenya Eric Van der Linden on Tuesday said the grants were part of Kenya-EU developmental support programme aimed at poverty alleviation and economic development.

In a statement, Mr Linden cautioned local authorities against misuse of donor funds and called on non-governmental organisations and Kenyans to monitor such projects to ensure transparency and accountability.

He said that the EU support to Kenya targets projects that have direct socio-economic impact on the poor and vulnerable groups while at the same time addressing accountability among leaders.

The EU’s rural poverty reduction and local government support programme has donated Sh4.8 million for the rehabilitation of the Mwandoro-Takaungu and Rojo-Konjora roads within Kilifi Town and a water pipe line at Bamba in the newly created Ganze District.

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It is now mandatory for all employers to contribute retirement savings for their workers to the National Social Security Fund (NSSF).

The new law — that took effect two weeks ago — requires all employers with one or more employees to remit pension to NSSF from November 1, thanks to a gazette notice by Labour Minister John Munyes on October 30.

Alex Kazongo, NSSF Managing Trustee at a media briefing. Photo:Mbugua Kibera /Standard

This means employers, including small enterprises and those who employ domestic and farm workers, must contribute to the State pension fund.

"All employers are now required by law to remit pension to NSSF," said Alex Kazongo, the managing trustee of NSSF.

Criminal offence

"Those that will not comply will be treated as criminal offences and will face the full force of the law under the NSSF Act."

Previously, only employers who had five workers or more were required to contribute retirement savings to NSSF.

The new law also applies to casual workers who have been in employment for more than three months.

By enacting the new law, NSSF has extended the net of employers contributing to the retirement kitty by two million in the formal sector and six million in the

Informal sector.

With the new rules, no employer will be exempted from the provisions of the NSSF Act on the strength of having an in-house occupational pension scheme.

Such an exemption is now subject to the Minister of Labour approval upon recommendation by the board of trustees of NSSF, on account that such an employer operates a universal national scheme that is comparable to NSSF.

Minimum contribution

Currently, NSSF is the only scheme catering for all.

Under the new arrangement, each employer will be required to remit Sh400 — which is the minimum contribution a month — out of which the employer contributes half the amount and recovers the other half from the employee’s salary.

There is also the option of workers topping up their contributions, by paying more than the minimum amount set by the law.

In an advertisement in local dailies yesterday, NSSF said all employers with one or more employees that haven’t registered with NSSF are required to do so within three weeks.

According to NSSF, the new laws are meant to level the playing for all employers and ensure that employees save for their sunset years.

"Millions of Kenyans are living in destitution in retirement even after working for years," said Mr Kazongo.

Momul Tea factory in Kericho West District is the first factory to receive the Rainforest Alliance Certification.

The certification will enable the factory, which is affiliated to the Kenya Tea Development Agency (KTDA), to sell its processed tea at a premium in the international market, and channel the increased earnings to the small-scale farmers who supply it with tea.

Milestone

While receiving the certification yesterday at the factory, KTDA National Vice-Chairman, Philip Ng’etich, said the move marked a milestone for the tea industry, adding that the agency was committed to ensuring that all its factories were operating in line with acceptable international standards.

Rainforest Alliance will expect the factory to produce tea sustainably, and take an active role in environmental conservation.

"This is a clear demonstration that our factories have achieved world class standards. We must not rest because we will undergo annual audits and we will also need to reapply every three years," he added.

While presenting the certificate, Rainforest Alliance manager for East Africa and South Asia, Marc Monsarrat, said small-scale farmers would benefit from empowerment that will result in better crop husbandry.

Ng’etich noted that all KTDA factories have achieved international certifications, including the ISO 90001-2000 and the ethical Tea Partnership certification, while another 10 factories have attained Fairtrade certification.

Momul serves the small-scale holder tea sub-sector, and has a capacity to process 10 million kilogrammes of tea annually.

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by Presidential Press Service
Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/news/InsidePage.php?id=1144028586&cid=159&#) and Ethiopia will jointly implement infrastructure projects essential to the development of both countries.
Speaking during a bilateral meeting in Addis Ababa ahead of the African Summit of the Group of Ten on Climate Changehttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/news/InsidePage.php?id=1144028586&cid=159&#) on Tuesday, President Kibaki and Ethiopian Prime Minister Meles Zenawi expressed the need to implement joint projects to improve the lives of Kenyans and Ethiopians.
President Kibaki said plans were under way to put up a port in Lamu to be used by neighbouring countries as an outlet to the rest of the world.
The project is part of a second transport corridor scheme that includes construction of a railway line and tarmac road to Moyale.
Maintain peace
The Ethiopian Prime Minister said his government would construct a railway line from Addis Ababa to Moyale to boost trade between the two countries.
The two leaders discussed the need to maintain peace along the common border by containing cattle rustling and curb influx of firearms and other weapons.
The two leaders reaffirmed their commitment to strengthening Igad and use it in promoting security and economic development in the region.
They supported the Transitional Federal Government of Somalia in its endeavour to address challenges in restoring peace in the Horn of Africa country.
The Kenya delegation at the bilateral talks included ministers Moses Wetang’ula, John Michuki, Yussuf Haji and Noah Wekesa and Assistant Minister Orwa Ojode.
At a separate function, President Kibaki held talks with a leading Saudi investor, Sheikh Mohammed Hussein Al-Amoudi, who paid him a courtesy call.
During the meeting, the President reiterated Kenya’s determination to create a conducive environment that would attract foreign investment to spur economic growth and create jobs for the youth.
Hurdles to investment
President Kibaki said the Government was working towards removing hurdles to investment.
On his part, Sheikh Al-Amoudi indicated his interest in investing in Kenya’s infrastructure development, livestock sector, conference and tourism.
Present during the meeting were Deputy Prime Minister Uhuru Kenyatta, ministers Moses Wetang’ula, Mohammed Elmi and Yussuf Haji, among others.

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An Indian vehicle manufacturer has launched its brands in the Kenyan market in a move that is bound to intensify competition.

Ashok Leyland joins the list of trucks angling for the growing construction industry that has been boosted by government’s spend on road infrastructure.

Mr Rajinder Malhan, executive director of the firm’s international operations, said Kenya will play the hub to the regional market. “Our setting up a hub in Kenya is to enable us to penetrate the regional market of East Africa where the construction industry is also booming,” he said at the launch on Thursday.

The sale of trucks in Kenya has been increasing over the years as a result of the construction and cargo transport industry witnessing growth.

The firm said that it has set sights on supplying security forces with some of the trucks it says are specifically modelled for them. Distribution and after sales services of the trucks will be done by Truckmart East Africa based along Mombasa Road.

“Our staff has been well trained and we are confident of providing an edge to the customers across the East African bloc,” said Mr Hector Dinz, chairman of the distributorship.

The Cabinet has approved the building of a second bulk grain import facility at the proposed port of Lamu, Prime Minister Raila Odinga has disclosed.

Raila accused a parliamentary committee of rushing to investigate the Grain Bulk Handling Limited (GBHL) facility, the sole bulk grain handling facility at the port of Mombasa, without seeking information from his office first.

He said the Inspectorate of State Corporations under his office had conducted an assessment of GBHL and the matter of grain imports and published a report, which the Agriculture Committee ignored.

The Premier accused parliamentary committees of being "sensational" for launching "investigations with ulterior motives" to intimidate public officials.

He also claimed yesterday House committees often launch investigations outside their mandates, sometimes after being persuaded to do so by traders with vested interests.

He said Agriculture Committee had ignored a Cabinet decision on GBHL and proposal to open the second handling facility in Lamu.

Raila also accused parliamentary committees of witch-hunting ministers and public officials.

And the PM got support from several Cabinet ministers.

John Michuki (Environment) and Amos Kimunya (Trade) questioned the authenticity of the committees’ reports, equating the teams to randy bulls and bloodhounds.

Deputy Prime Minister Musalia Mudavadi accused committees of resorting to "investigative activism" instead of advising the Government on policy and legislation.

Mr Mudavadi said the noble intentions of committees, Parliament, and Standing Orders have been soiled by negative attitude.

Parliament accused

"Votes taken should not be geared towards narrow perspectives of ‘defeating’ the Executive, but on whether a majority of members either support or reject any discussed proposals," he said.

Nairobi Metropolitan Development Minister Robinson Njeru Githae accused Parliament of usurping the power to hire the entire interim electoral and reform authorities following signing of the Peace Accord, in February, last year.

Immigration Minister Otieno Kajwang’ said Standing Orders have increased democracy and fostered accountability, but also exposed ministers to undue pressure.

Kajwang’ said committees should work for the general good. He also said Parliament’s role on recruitment of the interim authorities is justified following post-election crisis. He said the office of the PM has a role in implementing House resolutions.

Addressing a seminar called to harmonise operations between Parliament and the Executive in Nairobi yesterday, the PM and the ministers said House committees are losing public confidence for exhibiting bias, ignorance, and criminal attitude.

But several MPs defended the backbench, saying committees are working under extreme conditions against an opaque Executive. Some said the Clerk of the National Assembly and an Executive that is reluctant to implement House resolutions are to blame for the contested committee summons.

"What is happening, if not checked, will completely paralyse the functions of Government," said Raila.

The PM said ministers are living in fear of summons and disclosed committees have caused the Government to stop procurement and stem tender processes for up to six months.

He said the Public Accounts Committee’s recent summon of Finance Minister Uhuru Kenyatta over the procurement of 130 VW Passat vehicles was outside Standing Orders.

The PM said many MPs are ignorant of Standing Orders and lack expertise for scientific investigation and denied reports the State is plotting to sell the Kenya Ports Authority.

Raila sparked protests when he alleged MPs have been hired to ask questions in Parliament.

"People go to committees to pursue vendetta of failed contractors," he said.

The Western Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144029248&cid=14&#) Tourism Circuit is set for a revolution. This follows ongoing rehabilitation and subsequent elevation of Kisumu Airport into an international gateway.
The once sleepy region is also set to benefit from growing international media attention occasioned by the election of Barack Obamahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144029248&cid=14&#) — whose father hails from the region — as the US President.
A growing hotel industry, recreational facilities and the Government move to build a heritage site in western Kenya have also served to enliven the region and stir its tourism potential.
The chairman of Western Kenya Tourism Circuit James Nyaundi says the region has got high potential, which should be developed.
"The improved road network has led to an upsurge in the number of tourists coming into the region," Nyaundi says.
He noted that there was growing hotel occupancy in western – a fact he says heralds the region as a notable tourist destination from both domestic and international visitors.
Nyaundi says several investors are putting up hotels to increase the bed occupancy in Kisumu, Kakamega, Kisii and Kericho in anticipation of surging tourist numbers as the region attracts more people.
"Central Organisation of Trade Unions (Cotu) is putting up a five-star hotel in Kisumu, with a bed capacity of 100 and conference facilities. This will transform the hotel industry," he says.
"There has also been remarkable improvement in the provision of water in Kisumu and a host of other towns, which has boosted the image of the region."
Nyaundi, who is also the manager of Kisumu Sunset Hotel, says the region has adequate hotel facilities — both high cost and low budget — to cater for domestic and international demand.
Home stays — a concept that allows tourists to stay with community members they visit -— is also fast gaining prominence.
"This helps to involve communities in the tourism business and ease a strain on housing," he says.
The chairperson of Domestic Tourism Association Anastasia Wakesho says Western has great potential as a tourism circuit.
"Many tourists are heading to Western because the region has rich cultures," she says.
Wakesho, who is the Managing Director of Karibu Paradise Safaris, says the completion of Obamahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144029248&cid=14&#) Cultural Centre in Kogelo, Siaya District, would open up the circuit.
She says there is an upsurge in the number of domestic and international tourists visiting Kogelo, adding that creating new routes in the region are likely to boost the circuit, thus earning the country more revenue. She urged the Kenya Tourism Board (KTB) to earmark funds to market the circuit.
Bull fighting, Kit Mikayi, Ramogi View point, Kakamega forest, crying stones and Lambwe Park are among the region’s attractions that should be marketed.

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http://www.theeastafrican.co.ke/image/view/-/814316/medRes/116110/-/maxw/600/-/g29rb7z/-/muringa.jpg Muringa Holdings managing director Gursharn Brar (second left) and TBEA’s international business co-ordinator Wei Hua sign a memorandum of understanding at Muringa’s Nairobi offices on November 27, assisted by Muringa director Elijah Kinyanjui (standing, left) and TBEA representative Zhang Zhan Gang. Picture: Phoebe Okall


A Chinese energy firm has chosen Kenya as its entry point into East Africa, where it expects to invest millions of dollars in the next three years.

Gnangdong-based TBEA has entered into a partnership with a local energy firm, Muringa Holdings, through which it will initially spend Ksh600 million ($80 million) on power generation and transmission in the region.

Wei Hua, TBEA’s international business co-ordinator, said the company wanted to tap into Kenya’s unexploited potential in power production.

Once it is established in the country, TBEA will venture further into the region, beginning with Uganda, where its Kenyan partner, Muringa Holdings, is already working with the Uganda Energy Regulatory Authority.

The managing director of Muringa, Gursharn Brar, told The EastAfrican that the two firms have forwarded a funding proposal to the Chinese government.

TBEA, a manufacturer of electric power transformation and transmission equipment, will use Chinese technology not only to generate but also use power since the current usage leads to a lot of wastage, Mr Wei said.

Muringa will undertake power projects in Eastern, Central, Rift Valley, Western and Coast provinces.

The projects involve construction of 132kV lines and several sub-stations.

Mr Brar says the partnership will enable the firm, which was voted the leading small and micro enterprise in the energy sector at the recent Top 100 survey, to fast-track power generation and strengthen its resource base as it prepares to float its shares in the next three years to raise capital for expansion.

A public enterprise owned 50-50 by the China government and the public, TBEA is among the largest power companies in China, controlling 12 per cent of the country’s huge energy sector.

Giant partner

TBEA reported a turnover of Ksh150 billion ($2 billion) last year while Muringa registered Ksh250 million ($3 million) and has a workforce of about 150 people.

Muringa’s push for overseas investors is driven by the huge capital outlay required in the energy sector.

The transmission power line components supplier has operations in Kinale, Naivasha, Kericho, Marakwet, Nandi Hills and Mt Kenya region.

The Government has launched fish farming projects in the country at a cost of more than Sh1 billion.

The move is expected to create about 120,000 new jobs.

The Ministry of Fisheries Development last week launched the Sh1.12 billion project which see the construction of 200 fish ponds in 140 constituencies.

Funded by the State-sponsored Economic Stimulus Programme, each of the constituencies will receive Sh8 million for ponds.

Fisheries Minister Paul Otuoma, launched the first of 20 pilot fish ponds in Gatundu South on Thursday.

He said the projects is one the strategies the government has adopted to reduce poverty.

Traditional fish sources, he said, are no longer dependable to meet the rising demand of fish in the country. Official statistics show that in 1999, the country had a population of 1.2 million tonnes of Nile Perch, which has now dwindled to a mere

300 tonnes.

"This shows that there is less fish in local waters," he said.

Dr Otuoma encouraged farmers around the country to engage in fish farming, which takes little space on their farms but has high financial returns, while providing nutrition to Kenyans.

The fish farming project is part of the Government’s Sh22 billion economic stimulus package that will soon be injected in various sectors in the country in an effort to revive the economy.

Alternative growth sector

Last June, Finance Minister Uhuru presented a budget in Parliament against a backdrop of global and national economic challenges, which have resulted in a slowing down of the economy to 1.7 per cent this year compared to the 7.1 per cent at the end of 2007.

Substantial decline of agricultural production and slow down of economic activity in the key growth sectors of tourism and construction have demanded deliberate action by the Government to salvage the situation and hence the stimulus.

The Fisheries ministry has taken the lead in the implementation of the project while participants, associated households and cluster groups will be co-implementers.

District fisheries officers will roll out the project implementation at the grassroot level and are charged with the training of participants.

Labour for pond construction will be sourced from local youth. The Ministry will contract private fish hatcheries to supply quality fingerlings.

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Mary Muthoni is a creaking 71-year-old living in Nairobi’s Majengo slums, but she still has to struggle to feed her two grandchildren, who lost their mother to Aids in 2005.

Every morning, she goes round searching for a job that will bring food on the table. But few people are willing to hire her due to her feebleness. In most cases she is forced to beg for her daily bread.

"I hope I won’t die before my two grandchildren are strong enough to fend themselves," she says.

It is such citizens that a new Government programme seeks to fund to lighten their financial burden, starting mid this month. About 33,000 senior citizens living in abject poverty would be getting Sh1,500 every month, to meet their basic needs.

Fulfilling life

"We want to ensure that growing old is not a path to poverty, but a celebration of a long, fulfilling life," Minister for Gender Esther Murugi said early this week.

Kenya has about 1.5 million people above age 60. The figure is likely to climb in the next decade as a million more cross the retirement age. But Murugi said senior citizens on formal employment or who are relatively well off will not be entitled to the handouts.

The Commissioner of Gender Riga Mwakio told The Standard on Sunday the programme would be scaled up to cover most aged people, once the ministry convinces donors and the Treasury to commit more cash.

He said the age bracket for beneficiaries would also be reduced to 60, the official retirement age.

"We invite donors to partner with us to cover the most vulnerable of our senior citizens who are left of the social safety net. We want to succeed in this first phase to win their confidence," he said.

After a successful pilot project involving 300 senior citizens in Nyando, Busia and Thika districts, the programme will be rolled out countrywide.

Finance Minister set aside Sh540 million in the 2009/10 Budget for the programme.

Riga said the beneficiaries were selected from the 40 poorest districts after a comprehensive poverty index.

These are the areas where the programme will initially be unveiled. Committees were formed in every district to identify the most vulnerable.

"We are ready and Minister Murungi will officially launch the programme on December 15," he said.

The senior citizens with access to cell phones would receive the cash through mobile money transfer services like Zap or M-Pesa to cut transaction costs.

Discrimination

There are also fears corrupt senior Government officials would fleece the programme.

The programme enters the national stage as senior citizens battle to fit in a society that is increasingly indifferent.

A new report – Growing Old in Kenya, Making it a Positive Experience – released by The Kenya National Commission of Human Rights this week says majority of old people are living in poverty.

In some parts, old people are running the risk of being killed on suspicion of being witches. Several have been lynched this year in Kisii.

Millions of disabled Kenyans will now access the Sh200 million-fund set up in June.

Minister of Gender Esther Murugi officiated the swearing in of the Board of Trustees that would oversee the disbursement of the Disabled Fund this week, setting off a process that many citizens with disabilities have waited with bated breaths.

"The fund is another milestone in the struggle for recognition and protection of the rights and equal opportunities for disabled people," said the minister.

And Phoebe Nyagudi, a board member, said the launch of the fund was a big day for the disabled, who have endured years of discrimination and neglect.

The 11-member board is now tasked with the responsibility of disbursing the money before the next Budget or else the cash would be returned to Treasury. But Ms Murugi was quick to warn against rushed disbursements.

"We don’t want to see money being dished out for the sake of beating the deadline. There should be a systematic process," she said.

Finance Minister Uhuru Kenyatta announced the fund in June but the Ministry of Gender delayed the appointment of the board. And the problem is not yet fully solved. The board has no offices and a secretariat.

Kick up controversy

The Disabled Fund should have been formed six years ago when the President assented to a landmark Persons With Disabilities Act in 2003. The delay has been a frequent subject of complaints by beneficiaries.

In the next few weeks, the board is expected to plan allocations, which is guaranteed to kick up controversy.

Statistics show Kenya has about 4.5 million people with various forms of disabilities, but the figure could be higher since many parents hide their ‘abnormal’ children to avoid social stigma.

Murugi also cautioned the fund managers to be careful not to disburse money to people who are already benefiting from other funds ran by the National Council for People with Disabilities.

Mumias Sugar Company Ltd registered an impressive Sh1.6 billion net profit for the 2009 financial year. This represents an increase of 33 per cent over the previous year’s profit, up from Sh 1.2 billion.

The Managing Director, Evans Kidero announced the improved results during the company’s 38th Annual General Meeting (AGM, which was held at Tom Mboya Labour College (Cotu) Kisumu. Dr Kidero further revealed that the company contributed a staggering Sh3.2 billion to the exchequer for the year under review, compared to Sh3.4 billion previous year.

sugar output

Hower, the company processed 2,161,031 tonnes of sugar cane compared to 2,408,141 tonnes ilast year. Sugar produced stood at 231,014 tonnes, a 13 per cent drop from last year's production level of 265,263 tonnes. Kidero attributed the fall in sugar production and processing to challenges of cane supply.

"The period under review was challenging in terms of crop performance and general farming environment. Cane yields dropped to 65 tonnes/ha on the nucleus estate and 68 tonnes/ha on the outgrowers fields," he explained.

Kidero further disclosed that the company commissioned the 38MW Co-generation project in May. This, the MD noted, has led to an increase in export of power to the national grid from 3MW to 26 MW.

"Through this project, Mumias has diversified its product range and expanded its revenue streams," Kidero told the AGM.

He said the company was working on expanding its operations outside Kenya and it’s looking at possibilities of venturing into Uganda and Tanzania markets.

He reckons the issue of Tarda was being resolved and discussions with the partners were on going to ensure the project takes off.

The company Chairman, John V. Bosse, informed the shareholders that the board is looking at various projects to well position the company in the face of the current market challenges.

"I’m optimistic and confident that the implementation of the said projects will give the Mumias a competitive advantage and a better investment refunds," said Bosse. He, however, admitted that the operational environment has become more challenging than before.

"Whereas the first-half witnessed the Perennial adverse weather challenges, the second half of the year met disruption in cane supply, occasioned by political agitation for higher cane prices," explained the chairman.

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Nairobi, Tuesday

Kenya will issue a sovereign bond next year in a move that may help the ratings of the economy, despite strong domestic demand for government debt, the Central Bank Governor has said.

Some analysts have warned that more government borrowing may crowd out the private sector, but Central Bank chief Njuguna Ndung’u says the proceeds will go on infrastructure needed to make business easier and more profitable.

"The sovereign bond, that will also be indexed, allows the country to enter the international capital market and improve international ratings," said Ndung’u.

"The benefits are enormous for the economy and also the business community, with the funds coming in at competitive rates, invested in areas that will reduce the cost of doing business." In a sign of strong domestic demand, the Government last week raised Sh18.42 billion ($245 million) in an infrastructure bond that was oversubscribed by 138 per cent, even though the issue came shortly after two corporate notes.

Long-term development

Investors’ bids were worth Sh44.1 billion, more than the Sh33.6 billion the Government had hoped to rake in through a eurobond issue slated for last year. That issue has been pushed back to next year because of the global economic crisis, but will now go ahead, with the money to be spent on projects earmarked under a government long-term development plan dubbed Vision 2030.

"The domestic bond market is vibrant as well for both government bonds and corporate bonds. There is no perfect substitutability but (they) are more of complimentary in nature as sources of financing public investments," he said.

—Reuters

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The Korean Government will partner with Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144030106&cid=14&#) to improve agricultural technology and boost crop production.
The Korean Ambassador to Kenya Han-Gon Lee yesterday said his Government was keen on helping rice farmers adopt modern farming technology.
Speaking in Mwea Irrigation Scheme in Kirinyaga at a farmers’ field day, Mr Lee said Korea would help Kenya attain food security.
"We are willing to partner with agricultural organisations such as the Kenya Agricultural Research Institute (Kari) to help farmers embrace better techniques that can boost yields," said Lee.
The Ambassador led the Korean team in presenting to farmers simple threshing machines prepared under the partnership of the Korea Project on International Agriculture (KOPIA)-Kenya Centre and Kari.
The bicycles pedal-driven machines, named Kopia Talgoki thresher, will assist farmers who thresh their produce manually. Lee said such machines have been in use in Korea since 1920’s and their efficiency is more than 10 times better than the manual threshing in Kenya.
Reduce cost
http://www.standardmedia.co.ke/images/friday/bus111209_01.jpgKorean Ambassador to Kenya Mr Han-Gon Lee (left) demonstrates how a Kopia Talgoki thresher works to farmers in Kirinyaga.
The envoy urged farmers to embrace the labour saving technologies to reduce the cost of rice production.
"We do not want to impose on you what we consider part of the Korean dream, but we are expressing our determination to share the technology for your country’s good," said Lee. He said it was sad that at independence, Kenya’s economy was growing at the same rate with Korea’s, but the latter’s is now 40 times bigger.
"It is these simple technological decisions that have propelled us. What I would request is you develop a "we can do it" spirit. I am certain with the good agricultural soil, you will improve Kenya’s economy," he said.
Kari Director Dr Ephraim Mukisira welcomed the technology, saying it would bridge the deficit of national rice production.
"The national rice consumption is 300,000 metric tonnes compared to an annual production range of between 45,000 and 80,000 tonnes, which forces the country to import more at a cost of about Sh7 billion, annually," said Mukisira.
The Koreans also held a demonstration to farmers on better crop transplanting and taught farmers how to make more use of rice husks and straws, which they throw away.

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CPF expands reach to Africa

Bangkokpost Published: 28/12/2009 at 12:00 AM


Charoen Pokphand Foods Plc, the SET-listed flagship of the Charoen Pokphand Group, has added African countries to its investment plan next year as part of its aggressive expansion abroad.

It will start with feed and chicken farm operations in Kenya and Tanzania, where each operation is expected to cost US$3 million initially, said Adirek Sripratak, president and chief executive officer of CPF.

CPF teams including Mr Adirek have visited the two countries several times over the past few years and found strong business potential in supplying meat for their combined population of 82 million.

He said that CPF had been well received by local people in the two countries, encouraging the company to consider further operations in Africa. Nigeria would be next in line.

The fresh investment is part of the 5 billion baht CPF earmarked locally and abroad in 2010, with 50% going to the Thai market.

While farm expansion overseas is being accelerated, CPF plans to trim investment in farm businesses in Thailand but put more money into cooked and ready-to-eat meals, which have contributed healthy profits to the company, estimated at more than 10 billion baht this year.

"From now on, investment in farms such as in chicken, swine and marine products would be very little. We've tried to lower our role in commodity trade," he said.

Mr Adirek said that the healthy profit from value-added products has proven that the company had chosen the right direction to become a food provider rather than a commodity trader.

The attempt also reflects a desire to create an equal balance in the company's revenue structure from farms (currently 45%), feed (35%) and food (20%) under a five-year plan. CPF's sale revenue is estimated at 160 billion baht this year.

Reducing its role in the primary farm sector would not only reduce business risks either from epidemics or price fluctuations but would help the company promote sustainable profits.

Mr Adirek said the rising contribution from food products had lifted net profits in the first nine months to 8.07 billion baht, up from 2.82 billion in the same period last year.

CPF's sales in 2010 are forecast to rise by 10% to 170 billion baht on strong domestic sales and exports. For the domestic market, it plans to increase the number of retail distribution outlets, CP Freshmart to 2,000 stores, and 5-Star Chicken kiosks to 3,000 units over the next few years.

Significant revenues from offshore investments, notably in Russia and Turkey, are also expected next year, he said.

CPF aims to export about 100,000 tonnes of chicken meat and 50,000 tonnes of shrimp products in 2010, up from about 95,000 and 35,000 tonnes this year. "All products are sold under the CP brand and this would lift sales from food to nearly 25% next year," Mr Adirek said.

"When the figure reaches 35%, it could allow us to strengthen and promote the brand in international markets more widely, and featuring it in the English Premier League is in the plan," he added.

^^
For better or worse, agriculture is and will remain the driver of our economy and we need as much investment here as we can get.

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The Energy Regulatory Commission has published proposed regulations on electricity licensing expected to open up the industry.

The new rules are cited as the Energy (Electricity Licensing) Regulations, 2010. They are to apply to persons intending to carry out generation, transmission, distribution and supply of electricity energy in Kenya.

Currently Kenyan electricity supply industry structure is based on the single buyer model.

All electricity producers sell power in bulk to Kenya Power and Lighting Company, which, in turn, undertakes the dispatch, transmission, distribution and supply functions.

In a Kenya Gazette notice published on Friday, the commission also said they will be receiving written comments from the public within the next 40 days.

Hand delivered

“Comments may be hand delivered, posted and facsimiled or e-mailed to the Energy Regulatory Commission,” read the notice.

The new regulations are coming at a time when the government is diversifying its generation, transmission and distribution of electricity energy.

Already two state firms have been set up to handle the growing need of electricity, while another is to be in charge of geothermal power.

As part of the regulations, applicants will be required to publish a notice for two successive weeks on the Kenya Gazette before making an application to the commission.

This is expected to be in not less than fifteen days before they formally apply for the licenses. The same notice is also expected to appear in at least in one and the same newspaper circulating in the area of the proposed under taking within the two weeks.

Apart from the financial information and environmental approvals applicants will be required to state who their customers would be for the next five years.

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Safaricom and Zain transferred a whopping Sh318.4 billion through their mobile money transfer services in 12 months up to June last year, according to the Central Bank of Kenya.
The bank says Safaricom and Zain transferred the money, which translates to about Sh1 billion per day, between June 30, 2008 and June 30, 2009 through their M-Pesa and Zap services respectively.

This represents a 421 per cent growth over the Sh61.1 billion transferred in the year to June 30, 2008, the speed and size of the transferred funds clearly indicating the power of the mobile telephone industry in opening up the economy.

This is critical especially to the millions of rural and unbanked Kenyans who live in abject poverty, most on less than a dollar (Sh75) a day, and have to rely financially on relatives and friends in the cities.

“Similarly, the number of transactions increased from 21.8 million to 125.1 million over the same period,” CBK governor, Prof Njuguna Ndung’u, says in the bank’s annual report to be presented to Finance Minister Uhuru Kenyatta.

Registered mobile phone money transfer customers increased from three million to 7.4 million last year.

Given that Zain launched Zap in March 2009, Safaricom’s M-Pesa accounted for the lion’s share of the transactions, overall transfer and customers. Zain had another service, Sokotele, operating before then but was phased out in late 2008.

Yet, significant changes have not only taken place, but are also likely to continue unfolding with the incumbents digging in and new players joining.

For instance, M-Pesa has almost 8 million registered users and the value of cumulative person-to-person transfers since inception had hit Sh230 billion by August 2009.

Zain Kenya managing director, Rene Menza, said they are engaged in partnership discussions with various companies for third party payments.

“Cumulatively, we have moved more than Sh750 million in person-to-person transfers. We have over 400,000 customers on the Zap platform but this year, we project to have more than 1.5 million customers using the service,” said Mr Menza.

The service has been launched in Kenya, Tanzania, Uganda, Niger, Sierra Leone and Malawi.

As Telkom Kenya’s Orange, the country’s third mobile phone operator, is said to be planning to venture into the sector, Essar Group—the fourth operator, yu, brand owners—partnered with Obopay, a mobile phone money transfer service company, to launch its yuCash service in December 2009.

Contacted on Friday, yu chief commercial officer Kunal Ramteke said they are rolling out a countrywide network of agents and target over 3,000 agents.

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The State will carry out a restocking exercise as soon as the current heavy rains subside, Kenneth Lusaka, PS Ministry of Livestock Development has said.

The programme is aimed at revealing how farmers used more than Sh500 million spent by the Government to buy their animals following the effects of last year’s drought.

"The Government will next month find out whether farmers used the money to buy livestock or they used the money for other purposes," Mr Lusaka, said during a leather stakeholders forum held yesterday in Nairobi.

Restocking

"Funds will be set aside to restock and increase livestock numbers disseminated by the effects of the drought," he said. Livestock farmers, whose cattle were bought by the Government were expected to use the funds to restock early this year, however, the current heavy rains have disrupted the programme.

While receiving a leather industry report, during the forum, Lusaka decried the poor performance of the sub-sector, which he attributed to harsh climate changes, un-coordinated operations and poor budgetary support.

"Even though the leather sub-sector has enormous potential, a quick review of the East African leather industry indicates that the loss of potential value addition stands at 4.5 bovines with almost 14.5 million goat and sheep per annum experienced," Lusaka said.

He said as a result thousands of jobs and millions of shillings have been lost in missed opportunities.

He said the Government will work with stakeholders to ensure value addition is undertaken this year to revamp the sector.

Kenya’s attempt at branding its coffee will receive a boost next week when a new logo to be affixed on the commodity will be launched.

Coffee Board of Kenya managing director Loise Njeru said this would enhance the visibility of the commodity on the international market.

The logo, to be unveiled on January 22, is meant to position the commodity in the international market, which enable the consumers to easily identify the product on the shelves. This will be a major boost to building brand loyalty.

Coffee from the country is usually used to blend others for taste, aroma and colour, but this is not often acknowledged. An attempt at a logo in the past was shelved after the features of the logo conflicted with another existing one.

“Branding is a process and we hope the stakeholders will adopt the brand logo to increase the visibility of Kenyan coffee in the international market,” she said.

Ms Njeru was speaking at Intercontinental hotel during a meeting of the Eastern Africa Fine Coffees Association (Eafca) in preparation for the 7th Africa Coffee Conference and Exhibition to be held between February 11 and 13.

Eafca Executive Director Philip Gitao said the sector in the region was losing $100 million (Sh7.5 billion) due to poor infrastructure. “Every time there are delays on the road, the quality of coffee deteriorates which affects the price,” he said.

The other Eafca member countries are Burundi, Ethiopia, Malawi, Rwanda, Tanzania, South Africa, Uganda and Zambia. The conference is expected to attract coffee producers, processors and marketers from across the world.

Kenya’s import bill for fossil fuel is set to come down drastically after the government made blending of petrol with ethanol produced by local sugar firms mandatory.

Regulations for the blending to produce gasohol were gazetted on November 27 last year and will take effect on March 1, 2010, said agriculture minister William Ruto.

“All motor gasoline loaded from the petroleum storage and loading depots for sale in Kenya shall be blended with power alcohol to make gasohol,” reads the gazette notice 12900 of November 24, 2009 signed by Mr Kaburu Mwirichia, the director general of the Energy Regulatory Commission.

Mr Ruto on Wednesday explained that the move would reduce the country’s dependence on petroleum products and cover motorists against unpredictable prices of fuel.

More importantly, the minister said, it would provide a ready market for the ethanol that will be produced by sugar factories and take the country closer to attaining the goal of preserving the environment through the use of green energy.

The move will also enhance competitiveness of the sugar sector. “Suggestions have been made to make it mandatory that fuel in the country must be blended with ethanol produced by our sugar factories,” said Mr Ruto. Kenya needs about 40 million litres of bio-ethanol annually to blend with petrol at the recommended ratio of (petrol to ethanol) 1:9, otherwise known as the E-10 mandate.

The draft Bio-Ethanol Strategy paper argues that bio-ethanol presents one of the best options for the country in view of dwindling global oil reserves and unpredictable fuel prices.

It notes that the total import bill of petrol products increased by 7.1 per cent from Sh113.7 billion in 2006 to Sh121.8 billion in 2007, while global oil prices passed the $100 a barrel mark. Pump prices have risen by 20 per cent since August 2009 with industry observers predicting a worsening situation.

The long-awaited divestiture by the government from the debt-ridden sugar millers entered a crucial phase on Wednesday with the release of a privatisation report that gives farmers more say in the management of the industry.

The state-run Privatisation Commission’s report whose highlights were released to the press, guarantees farmers a 30 per cent shareholding in each factory. Of the stake available to them, farmers will be given up to three years to fully take up the shares if they are unable to raise the necessary capital at the time of privatisation.

A strategic investor identified through competitive sourcing will hold 51 per cent while the government will retain 19 per cent, but this will be sold later through an Initial Public Offering (IPO). The anticipated IPO will also avail an opportunity for farmers to increase their stakes in the sugar factories, Agriculture minister William Ruto said on Wednesday. The government listed five mills for privatisation by June this year. These include Nzoia, Chemilil, Muhoroni, Miwani and Sony Sugar.

A cabinet memo on the proposals and a Sessional Paper for restructuring the industry have been submitted for approval by the Cabinet, said Mr Ruto, who was flanked by his assistants Kareke Mbiuki and Gideon Ndambuki, and PS Dr Romano Kiome. Furthermore, the minister said, proposed amendments to the Sugar Act 2001 will also be discussed at the next Cabinet meeting.

The Cabinet is also expected to take a position on the status of Miwani Sugar Company, whose ownership has been locked in controversy and unending court cases. With lessons from Mumias in which farmers were duped into selling shares to outsiders still fresh in the minds of many, the government on Wednesday directed that farmers who buy the shares in the firms will only be allowed to trade amongst themselves.

“Farmers have an overriding interest in the sugar mills and we have been careful to handle these interests because we do not want a repeat of the Mumias case,” Mr Ruto explained. “Shares will be traded among the farmers so that at any given time, the interest of the farmer is not diluted.”

The Privatisation Commission recommended competitive sourcing of a strategic investor who will turn around the sugar companies, whose fortunes have been dwindling over the years. The companies owe the government and the Kenya Sugar Board a total of Sh42 billion. Consequently, the commission recommended the government to write off Sh33 billion and convert Sh9 billion to equity.

According to the privatisation programme, bidding for pre-qualification will be done next month. The completion of the sale and signing of transaction agreements with successful strategic investors is then expected to be concluded by June 2010. The strategic investor, the minister said, would be expected to bring in new technology, including modern equipment and broaden product base.

Besides sugar, the reforms are expected to stimulate diversification into ethanol and power generation, among other products. “The strategic investor must be one with a proven track record who will bring private sector expertise and capital to turn around the industry,” the minister said.

According to the minister, the government picked the option of a strategic investor ahead of going to an IPO because of the skills and capital such a move can generate. He said of the pick: “The proposal to go the strategic investor way was not the government’s. The advisors picked on it after subjecting all scenarios to thorough evaluation.”

The government hired Ernst and Young as the transaction advisor in the sale of the sugar firms. Mr Ruto disclosed that the government was ready to waive duty on equipment that will be brought in by the investors to replace the current near-obsolete machinery at the mills.

Reforms in the sugar sector are a matter of necessity for the government with the preferential trade agreements Kenya has been enjoying from its partners in the Common Market for East and Southern Africa (Comesa) expected to end in February 2012.

Comesa gave Kenya until 2012 to restructure its industry and return the millers to profitability, a move that was aimed at making the local industry competitive in the face of Comesa imports. On Wednesday, Mr Ruto exuded confidence that Kenya would meet the deadline.

A government project that will see selected Kenyans exchange their ordinary bulbs for energy conserving ones at no cost is scheduled to start later this month.

The project will be launched in two weeks’ time, after which the bulbs will start being distributed, said the communication department of the Kenya Power and Lighting Company (KPLC) on Wednesday in response to our inquiries. However, it is still unclear who will benefit and how many bulbs each one is entitled to under a project involving 1.25 million bulbs.

“The criterion is being worked out and will be communicated during the launch. But the beneficiaries are drawn from all over the country and have been already selected based on their consumption habits,” KPLC said of the project, which was initially scheduled for October 2009.

Orders for bulbs

The firm attributed the delay to procurement processes. In Wednesday’s response, KPLC said two contracted companies had placed orders for the bulbs, being manufactured and shipped in batches from Germany.

The first batch landed on January 10, 2010, and the shipment is being cleared at the port, said the firm. The government is funding their procurement at a cost of Sh263 for each bulb, translating to about Sh329 million for the consignment.

The special bulbs are said to last more than a year and save up to 80 per cent of power consumed by ordinary bulbs. They will cut power demand by up to 49MW and ease pressure on the national grid.

Importation of powder milk must be stopped to save the dairy industry, Co-operatives Minister Joseph Nyagah has said.
Mr Nyagah said consultations are ongoing within the industry to petition the Government to ban the importation of powder milk, which is killing the local sector.
"It is unacceptable for the Government to continue issuing licenses to businessmen importing highly subsidised powder milk, when the country is experiencing an unprecedented increase in milk production due to heavy rainfall," he said.
Importation of cheap powder milk from New Zealand, Australia, Ireland and South Africa is said to be worsening a crisis in the country because local processors are holding large stocks that they cannot sell.
Leading milk processor New Kenya Co-operative Creameries (New KCC) for instance is experiencing a glut after milk delivery rose significantly from an average of 400,000 litres a day in October to 650,000 litres.
In effect, the company has accumulated more than two million litres of milk, forcing it to reduce the amount paid to farmers from Sh24 to Sh23. New KCC, which is facing capacity constraints, is now considering converting the milk to powder, but the increase in imports could mean lack of market.
Nyagah said the importation was too much and was choking the local industry.
Credit facility
He was speaking after presiding the signing of a memorandum of understanding for a new credit facility for dairy farmers dubbed Maziwa Plus Loan Programme.
The product, a partnership between Co-operative Bank of Kenya New KCC and Co-operative Insurance Company (CIC), is aimed at assisting dairy farmers meet financial needs like purchasing input, equipment and high breed cows to enable them increase milk production.
Co-operative Bank has already committed Sh300 million that would be available for lending at a 15 per cent interest rate.
Under the programme, individual farmers or groups can apply for loans to a maximum of Sh10 million repayable within 48 months.
"We want the dairy industry to grow. This is why we want to ensure farmers get the support they need," said Nyagah.
To qualify for the loan, farmers would have to deliver milk to New KCC, which will facilitate the repayment of the loan by channelling the farmers milk proceeds through Co-operative Bank. On its part, CIC will insure the cows at a four per cent premium value.
He was accompanied by New KCC acting Managing Director Milcah Mugo, CIC Managing Director Nelson Kuria and Co-opeartive Bank Director in charge of Banking Division Zacharia Chiande.


:cheers:

Coca-Cola has launched a plan to consolidate fruits supply in its East Africa operation by incorporating farmers to its supply chain.
The Sh900 million project will help selected mango and passion fruit farmers increase productivity, and ensure beverage manufacturer has sustainable supply of the raw materials.
The project, which is being implemented in partnership with the Bill & Melinda Gates Foundation and TechnoServe, will see some 50,000 small-scale farmers in Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/InsidePage.php?id=2000001537&cid=14&j=&m=&d=#) and Uganda participate in Coca-Cola’s supply chain for the first time.
The firm anticipates 100,000 metric tons of mango and passion fruits will be produced annually during the four years of implementation.
It is understood that TechnoServe will do the work on the ground, training farmers to improve the quality of their fruit and helping them organise into groups and access credit. This will help farmers double their incomes, as well as help Coca-Cola grow its juice market in the region.
"We view this partnership as an innovative approach to business and sustainability; One that will grow both our business, and drive economic empowerment in Kenya and the region," said Coca-Cola’s General Manager for Still Beverages in East & Central Africa, Lionel Marumahoko.
Statistics from Coca-Cola indicate the total market value of fresh fruit and fruit products in Sub-Saharan Africa is worth $11.5 billion, and the consumption of processed fruit is expected to increase at an average of six per cent annually.
Biggest buyer
Coca-Cola, which is the world’s biggest buyer of fruits for juice manufacturing, has more than 1,100 juice products across the globe.
Marumahoko said the Government’s decision to reduce excise tax on soft drinks — from 10 to seven per cent — and water — from 10 to five per cent — gave the company the impetus to broaden its investments.

:cheers:

Kenya now brands its coffee

http://www.nation.co.ke/image/view/-/847594/highRes/128460/-/maxw/600/-/13s4fguz/-/PIX.jpg Coffee Board of Kenya managing director, Ms Louise Njeru, launched the Kenyan Coffee brand logo at the KICC, Nairobi, on Friday. This is the first time Kenya has attempted to brand its coffee in the market. Photo/FREDRICK ONYANGO
By MWANIKI WAHOMEPosted Friday, January 22 2010 at 22:30


A local coffee brand was unveiled on Friday to help position the commodity in the international market.

This is the first serious attempt at branding exported coffee, which is mainly used to blend other coffees to improve their aroma, colour and taste, leaving Kenyan coffee without a distinctive identity in the international market.

Ethiopia and Latin America are among countries that have successfully branded their coffee.

Players in the industry have said branding of local coffee will lead to higher prices internationally, and add that the commodity, which contributes about 3.5 per cent of national wealth, has the potential to contribute up to 10 per cent.

Expensive

“We have been told in the past that Kenyan coffee should not be promoted on its own because it would be very expensive, but we now know that there are customers prepared to pay a high price for a cup of Kenyan coffee,” said Agriculture permanent secretary, Dr Romano Kiome.

The PS added that there are several Kenyans abroad who have expressed interest in opening coffee shops to sell pure Kenyan coffee.

However, he noted the sector faced several challenges, including shrinking acreage due to development of real estate and failure by farmers to adopt modern production technologies and practices.

Mr Kiome said the government had initiated many reforms in the sector since the enactment of the Coffee Act 2001, but the efforts had not yielded fruits as fast as expected.

CBK boss, Ms Loise Njeru, said the sector needed to improve efficiency to match the standards of Colombia and Costa Rica, countries that Kenya is usually compared to in terms of production. Kenya contributes 0.7 per cent of coffee in the international market.

The initiative, partly funded by European Union, was done in consultation with the regulator, Coffee Board of Kenya (CBK), Coffee Research Foundation, Kenya Bureau of Standards and Kenya Industrial Property Institute.

Mr Peter Sturesson, the EU representative, said the union had contributed Sh500 million in the improvement of the coffee sector, out of which the branding initiative was funded.

“The initiative is, however, a start. It is a promise of producing high quality coffee and the logo is a reliable sign,” Mr Sturesson said.

The Ministry of Agriculture has released four new varieties of rice for planting by farmers in Western Province.
The varieties include Nerica 1, Nerica 4 and Nerica 10 and 11, which are capable of producing one tonne of rice an acre, the Western Provincial Director of Agriculture John Cheruiyot said.
Mr Cheruiyot said the varieties had been developed by the Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/agriculture/InsidePage.php?id=2000001462&cid=465&story=Ministry%20unveils%20new%20rice%20variety%20to%20boost%20farming#) Agricultural Research Institute (Kari) at Alupe in Busia with the help of experts from the Lake Basing Development Authority (LBDA).
He said LBDA would distribute more than 400kg of the seedling to farmers Samia, Bumula and Bunyala districts.
"The varieties were tested in Keiyo and Marakweti districts. They proved workable in Western Province after several trials were conducted in Alupe," said Cheruiyot.
Speaking in Teso District, Cheruiyot said yesterday the new varieties did not need irrigation water. He said the varieties could be planted along side other crops such as beans and bananas.
Cheruiyot said the ministry would soon train farmers on how to plant the new rice variety and that extension officials are already out in the field.
"We are set to plant more than 100,000 seedlings of the crop," said Cheruiyot.

Researchers have launched an insurance scheme for Kenyan herders using satellite images to provide broader and fairer compensation for livestock losses.

Launched in northern Kenya’s pastoralist Marsabit region, the Index-Based Livestock Insurance (IBLI) uses vegetation images to estimate cattle mortality as a function of forage loss. Project leader Andrew Mude explained that the system would be an improvement on a compensation system based on costly damage assessment.

“The transaction cost for normal insurance where they have to verify the claims and the truth of the claims would be too expensive,” he told AFP. “Rather than verify losses, all you have to do is to look at the state of that index because it will give you a very good sense of what the condition is on the ground,” he added.

“A very good indicator of drought and of livestock mortality due to drought is the availability of pasture.” Livestock is the key source of livelihood for millions of residents in the arid northern region, which has witnessed 28 major droughts in the past 100 years.

Four of those droughts occurred in the past decade. A prolonged dry spell last year decimated thousands of livestock in the region, leaving families to depend on aid.

Under the scheme, developed jointly by the International Livestock Research Institute and a team of American university researchers, the insurance will cover losses in excess of 15 per cent of the herd’s value. Herders will be compensated for their cows, camels, sheep and goats whose value is calculated in units known as Tropical Livestock Unit (TLU).

A cow is worth one TLU, a camel, 0.7 and 10 sheep or goats are equivalent to one TLU, which in turn is worth Sh12,000 (160 US dollars), the average local price for a cow. The pilot scheme targets between 500 and 1,000 households, said Mr Mude, adding that it could help stabilise the income of some of the country’s poorer communities.

Elsewhere, about 3,000 farmers who grew a new sorghum variety introduced last year are set to earn more than Sh40 million from their harvest in the next two weeks. The money will be realised from 20,000 tonnes that are to be harvested in a fortnight- thanks to the recent rains that pounded the Ukambani region.

This was announced on Friday during a farmer’s field day in Kisau Division, Mbooni East District, organised by the Kenya Agriculture research Institute (Kari) and the Ministry of Agriculture through the Kenya Arid and Semi Arid Lands Research Programme. The exercise was part of an elaborate move to promote the new variety — sorghum gadam — for food security and income generation.

National Oil Corporation has rolled out a retail network expansion to help stabilise the cost of petroleum products. The State corporation targets to capture a large market by having 150 outlets in three years from the current 60, which grew from only six in January 2007.

NOCK Managing Director Mwendia Nyaga says the number of petrol stations would grow to 70 “in the near future” as negations are ongoing for acquisition of 10 retail outlets.

“Market and price stabilisation effect is being felt in areas where NOCK has presence,” he said. “Retail network expansion is being undertaken while focusing on profitable sales volumes.”

The firm anticipates turnover to reach Sh20.4 billion on sales of 284,742 cubic metres of oil products this year, up from 221,731 cubic metres of fuel and a turnover of Sh14.9 billion in 2009.

Data from the Petroleum Institute of East Africa shows NOCK has 8.4 per cent market share. Total leads with 23.6 per cent, KenolKobil (21.9 per cent), Shell (17.2 per cent), Oilibya (9.9 per cent) and Gapco (5.6 per cent).

NOCK was incorporated in 1981 and in 1988 mandated to supply 30 per cent of the country’s crude oil requirements that would in turn be sold to other marketers for refining and onward sale to consumers. However, after de-regulation of the oil industry in October 1994 the company lost that status and had to formulate new survival strategies that saw it’s entry into downstream operations.

Acquisition of stations from individuals and other firms – such as 13 from BP and 33 from Somken – has lifted growth both in terms of market presence and revenue. The company has also ventured in cooking gas and fuel oil market.

Lack of its own storage space in Mombasa is a major challenge for NOCK, the MD said, complicated further after it recently lost to Vitol of Switzerland in the race to buy a bulk diesel storage facility at Shimanzi owned by collapsed Triton Petroleum.

The storage terminal was put up for sale by KCB, Fortis Bank of Netherlands and PTA Bank, which are seeking to recover some Sh7.6 billion they had lent to the company.

Mr Nyaga said the corporation was still interest in acquiring a distribution terminal in Mombasa to boost fuel distribution. But he added NOCK diesel storage in Nairobi has risen with the completion of two tanks each with a capacity of 13,000 cubic metres, which cost Sh100 million.

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Nicholas Kipsang walks along the edge of his two-acre piece of land as a tractor roars, making straight furrows.
In the next hour his family will follow in the wake of the tractor, dropping maize seeds and fertiliser into the furrows, as the machine makes another round to cover the seed, which should germinate in a week.
Kipsang stood on the same spot last year, anguish written on his face, watching the work of his family’s sweat get destroyed by a severe drought. He only harvested two bags from the farm that for years had produced an average of 30 bags.
http://www.standardmedia.co.ke/images/tuesday/bus090310_02.jpgFarmers under the agricultural insurance project in Eldoret West District get instructions from the policy administrator.
http://www.standardmedia.co.ke/images/tuesday/bus090310_03.jpgOne of the mini weather stations monitoring conditions in areas under the project. [PHOTOS: PETER ORENGO/STANDARD]
This time he is not taking any chances. He is among over 5,000 small-scale farmers in the country who have taken insurance against drought and other adverse weatherhttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000005152&cid=14&story=Crop%20insurance%20to%20ensure%20farmers%20hunger%20no%20more#) conditions for their crops.
Known as Kilimo Salama, the insurance policy is the first one in the country to insure farmers against the vagaries of weather.
Syngenta Foundation, UAP Insurance and Safaricom have joined hands to create the Agricultural Insurance Initiative that uses mobile phone technology and weather monitoring stations to give farmers updated information on expected weather conditions before they take the policy.
"Last year I used over Sh15,000 on farm inputs land preparation when the Government announced that El Nino rains were coming. Rains took long and I lost all the money," said Kipsang, who is among over 5,000 farmers who have already insured their crops with UAP Insurance.
Rains fail
"Now I know I will get back my money if the rains fail or if too much of it destroys my maize crop," Kipsang said.
The project, launched in Eldoret, is offering insurance policies to farmers who till as little as one acre.
Farmers learn about the insurance and about expected weather conditions through group meetings organised by NGO’s, the Ministry of Agriculture, co-operative societies and other community organisations working in their area under the auspices of Syngenta Foundation for Sustainable Agriculture.
The Swiss foundation, a non-profit organisation, collects weather data from unmanned weather stations mounted in all farming areas where the insurance policy is being introduced.
Syngenta staff analyse the data, make weather prediction and relay it over mobile phones to subscriber farmers and UAP Insurance.
Based on the information, the insurer makes a decision on whether to insure crops in certain area and for how much. Farmers are also advised on when and what to plant.
Premiums for the insurance are payable through the Safaricom M-Pesa service.
The insurance is pegged on prices of fertilisers, seeds and Agro-chemicals where a farmer pays an extra five per cent on top of the usual prices from participating local agro-dealers. That translates to about Sh9, to insure a one kilogramme bag improved, higher yielding maize seed and Sh25 to insure a 10kg bag of fertiliser.
Cost of input
In case of crop failure, a farmer receives 80 per cent of the cost of input.
Agricultural dealers registered and trained by Kilimo Salama have been equipped with a camera phone that scans a special bar code at the time of purchase of inputs, which immediately registers the policy with UAP Insurance over the Safaricom’s mobile data network.
This mobile phone application then sends a text (SMS) confirming the insurance policy to the farmer’s mobile phone.
Some 30 mini weather stations in targeted regions have been erected with automated, solar-powered systems capable of broadcasting regular updates on weather conditions and rainfall qualities.
"The weather stations relay information that shows the amount of rainfall and detects either excess rainfall or none at all then signal the need for the insurance company to compensate the registered farmer," says James Wambugu, UAP Insurance Managing Director.
When data, transmitted over Safaricom’s 3G network, from a particular station confirms drought or weather extremes, to all farmers registered with that station automatically receive payouts directly through Safaricom’s MPesa mobile money transfer services, once a physical verification is done.
Insurance contracts
"This is the first project to use mobile phones to set up insurance contracts and issue payouts to small-scale farmers in Africa, deploying both our vast data infrastructure and MPesa," said John Barorot, Safaricom Chief Technical Officer, during the launch of the initiative in Moiben Division, Eldoret West District.
Elsewhere, the new initiative just completed its pilot project in the drought-prone area of Laikipia, where 200 farmers who had purchased insurance received payment after their crops were destroyed in last years’ severe drought.
The project is expected to extend cover to farmers in Bungoma, Busia, Eldoret, Embu, Nanyuki, Oyugis and Homa Bay districts.


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Good years in Kenya are mainly remembered for adequate rainfall while bad years are defined by drought or other adverse weather conditions.

Traditionally, farmers minimised investment in farm inputs in order to reduce their exposure to vagaries of weather. As a consequence, they remained in the vicious cycle of low productivity and poverty.

Crop insurance is considered essential to agriculture in developed countries but has been largely unavailable to farmers in third world countries, in part because of the costs of administering micro policies.

According to Fritz Bugger, the Syngenta Agricultural Insurance Development Expert, that is pioneering agricultural insurance, conventional crop insurance requires field inspections at the time the policy is issued and follow-up visits to confirm damage.

"Such procedures can be cost-effective for large farms, but are far too expensive to be practical in places like rural Kenya, where most farming is done on small plots outside in villages," says Bugger.

He adds that while micro-finance has taken off in many poor countries, insurance on agriculture has not succeeded because it offered no immediate benefit to farmers.

Also, farmers’ lack of trust in proposed insurance schemes has posed a significant barrier, according to UAP Insurance Managing Director James Wambugu.

"Previous experiments in insurance for smallholder farmers have relied on subsidies or funding from international aid institutions, leading to questions about their ability to be scaled up and be sustainable over time," Wambugu says.

Payouts are triggered by relatively inexpensive index system tied to local weather conditions.

The Northern corridor infrastructure project is set to be completed in 2012, a World Bank official has said.

The Bank says it has released Sh20 billion for the construction of the Mau Summit-Kericho, Kericho-Kisumu and Kisumu road, which is part of the northern corridor.

Construction of the road will start next month, a senior advisor at World Bank, Mr Anil Bhandari, said.




“In fact, the contractor has already started preliminary works on that section of the road,” said Mr Bhandari.

He said that the tendering process delayed because of some technicalities from the Ministry of Roads and the Kenya National Highways Authority.

Several feeder roads within Kisumu municipality will also be constructed along with the main road.

Other roads within the Northern corridor earmarked for the 2012 completion include the Maji ya Chumvi to Miritini road in Mombasa; Machakos turn-off to Jomo Kenyatta International Airport , Lanet near Nakuru to Njoro turn-off which is almost finished and the Njoro turn-off to Mau Summit to Timboroa.

Also under the project is the expansion of JKIA and the improvement of safety and security at Wilson, Moi and other airports, said Mr Bhandari.

He said that the cost of these projects is approximately Sh77 billion, but the World Bank was funding only half of the total cost while the government of Kenya, French Development Agency, European Investment Bank, Kenya Airport Authority, Nordic Development Fund, will raise the balance.

“French Development Agency and the European Investment Bank are financing the expansion of JKIA which will have a new terminal (terminal 4). They are also funding the renovation of terminal 1, 2 and 3 at JKIA,” said Mr Bhandari.

http://www.businessdailyafrica.com/Company%20Industry/More%20homes%20set%20to%20access%20power%20as%20KPLC%20steps%20up%20grid%20/-/539550/876754/-/bbxhhe/-/index.html

http://www.businessdailyafrica.com/Consumer%20demand%20lifts%20hope%20in%20economy%20to%20three%20year%20high/-/539552/889816/-/item/0/-/ws3l3h/-/index.html

http://www.businessdailyafrica.com/Company%20Industry/Indian%20firm%20to%20set%20up%20cement%20plant%20in%20Pokot/-/539550/890484/-/la5meo/-/index.html

:cheers::cheers:

http://www.nation.co.ke/image/view/-/893002/highRes/149482/-/maxw/600/-/jjmmni/-/tourists-mombasa.jpg Kenyans took advantage of the reduced package rates provided for the domestic market over Easter. Photo/FILE
By MATHIAS RINGA
Posted Sunday, April 4 2010 at 20:14

The tourism industry received a major boost from the domestic market when thousands of people from Nairobi and upcountry spent Easter holidays at the coast.

Hotels in Mombasa, Malindi, Watamu and the South Coast made booming business as guests arrived in large numbers. Many leading hotels were forced to refer visitors to other establishments due to overbooking.

Mr Charles Muya, Serena Beach Hotel’s general manager, said the hotel was packed with both local and foreign tourists who had visited to celebrate Easter. “Business is very good and we have had to refer some of our guests who made late bookings to other establishments,” he added.

“Most of our guests frequently come here and made their bookings from as early as January,” he said. Mr Freddie Kiuru, Travellers Beach hotel general manager, said his hotel was fully booked, particularly because of the reduced package rates provided for the domestic market.

He added that hotels did not feel the pinch of the low tourist season at Easter since locals had somewhat replaced foreigners. “We have not felt the impact of the drop in internationals arrivals, as many Kenyans occupied every available room,” he said.

In Watamu and Malindi, hotels which had lacked guests owing to the low tourist season got a lease of life thanks to the Easter holiday.

Mark Easter

Temple Point Club managing director, Mr Isaac Rodrot, said most of the guests at the hotel were holidaymakers from Nairobi. “Majority of our guests are from Nairobi. Some came by air while others came by road. We are glad that Kenyans now plan for holidays,” he said.

At the South Coast, despite ferry woes, some hotels were fully booked. Baobab Beach Resort director, Mr Bimal Thaker, said a good number of foreign tourists and locals had thronged the hotel too.

The Kenya Association of Hotelkeepers and Caterers (KAHC) Coast branch chairman, Mr Titus Kangangi, said hotels in the entire province were packed with guests. He added that domestic tourism had indeed boosted business in the hotel industry.

But he noted that most charter flights were unused, following the low tourist season expected to end by June 30.

http://www.nation.co.ke/business/news/Kenyans%20add%20life%20to%20coastal%20towns/-/1006/892996/-/111w2cc/-/index.html

^^i forgot to put the heading :lol: this the way to go :cheers:http://www.nation.co.ke/business/news/Kenyans%20add%20life%20to%20coastal%20towns/-/1006/892996/-/111w2cc/-/index.html

Retail outlet Uchumi Supermarket Limited has opened a branch in Kericho town.
Uchumi Chief Executive Officer Jonathan Ciano said the chain will open two more branches in Nakuru and Embu by July.
The CEO reiterated the firm’s resolve to float shares at Nairobi Stock Exchangehttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000007442&cid=14&story=Uchumi%20embarks%20on%20expanding%20branches%20countrywide#) (NSE) soon.
He said they have applied to the Capital Market Authority to be allowed back and trade its shares at the NSE.
"On Tuesday the board of Uchumi met and we resolved to apply by next week to be given a chance to trade shares at NSE," he said.
Mr Ciano said the firm is going regional and will open a hyper branch in Tanzania by mid this year.
"The contractor of the building we have leased in Dar-es-Salaam is about to finalise its work," he said.
He spoke while opening Uchumi’s 16th branch in the country on Saturday. The move comes barely a month after coming out of the woods.
PLAN to float shares
Ciano said the firm’s shareholders have waited for too long for a come back to the NSE.
He is optimistic that the retail chain will bounce back to its former position in the market before it went under receivership status due to its over-zealous expansion plans in 2000 saw it run up huge debts that precipitated the technical insolvency.
On Saturday, Ciano said the company has repaid the bulk of the loan it owed its creditors and suppliers.
Uchumi has an outstanding loan of Sh50 million to clear out which KCB is demanding Sh25 million. "The Government converted its loan of Sh350 million into shares and this has helped us ease our burden," he added.


http://www.standardmedia.co.ke/business/InsidePage.php?id=2000007442&cid=14&story=Uchumi%20embarks%20on%20expanding%20branches%20countrywide

Treasury has released over Sh1.5 billion towards a comprehensive healthcare reform plan in the country under the Economic Stimulus Programme.

Director of Public Health, Dr Shahnaz Shariff, said that a total of Sh1,552,187,743 had been set aside for the construction of model health centres in 193 constituencies. This is 50 per cent of the total construction costs, he said in an advertisement.

The health programme is designed to construct and equip a model health facility in every constituency as a first step in the three-year plan with a total cost of Sh4 billion. Each constituency will receive Sh20 million.

The programme will involve the hiring 4,200 nurses 20 of whom will be stationed in every constituency.

In addition, Dr Shariff said that medical kits and vaccine worth Sh1 billion will be procured by Kenya Medical Supplies Agency to be distributed countrywide.

He said they will cost Sh700 million while the balance will go towards buying vaccine.

The hiring of nurses will be carried out at the local level and is tailored to meet the government’s policy of preventive healthcare. The nurses are required be residents of constituencies where the recruitment was carried out.

Healthcare reform is part of two other projects Treasury has earmarked on to carry out in stages that involve construction of Jua Kali sheds as well as wholesale and fresh produce markets.

Deputy Prime Minister and Minister for Finance Uhuru Kenyatta launched these projects in Kangundo Constituency last week and is scheduled perform ground ceremony for centres of excellence in Narok on Monday.

This is part of the Sh22 billion government Economic Stimulus Programme announced by Mr Kenyatta in his June budget last year.

In the proposal, he said the stimulus package is a short to medium term, high intensity, high impact programme aimed at jump-starting the economy towards long term growth and development.

It also sets out to secure the livelihoods of Kenyans and address challenges of regional and inter-generational inequity.
http://www.nation.co.ke/business/news/-/1006/897462/-/hasjeaz/-/index.html

Kenya’s banking sector could be the next chief driver of the country’s economic growth after it recorded a massive 29.6 per cent growth in profits from Ksh7.1 billion ($94.7 million) registered in February 2009 to Ksh9.2 billion ($122.7 million) recorded in the same period this year.

As a result of their growing profits, commercial banks’ return on assets improved from 2.8 per cent in February 2009 to 3.1 per cent in February 2010 profits.

Total income increased by 19.2 per cent from Ksh25.5 billion ($340 million) to Ksh30.4 billion ($405.3 million) in February 2010 while total expenses increased by 15.2 per cent from Ksh18.4 billion ($245.3 million) to Ksh21.2 billion ($282.7 million).

According to the latest economic review by the Central Bank, interest on loans and advances driven by growth in loans, fees and commissions and government securities were the main sources of income accounting for over 52 per cent, 25 per cent and 16 per cent of total income respectively.

But even as commercial banks recorded the significant expansion in their balance sheets, analysts say they would have recorded an even better performance were it not for the staff costs and interest on deposits which were the major components of overheads accounting for 33 per cent and 26 per cent in that order.

The irony, however, is that the interest rates on deposits remain relatively low at 4.89 per cent compared with last year’s five per cent resulting in a spread of 10.08 per cent.

The drop, however, did not deter customers from saving their money in banks as it grew by 20 per cent from Ksh918.8 billion ($12.25 billion) last year to Ksh1,103 billion ($14.7 billion) in February.

According to Central Bank governor Njuguna Ndung’u, the growth was due to branch expansion and aggressive marketing strategies for fresh deposits by some institutions, receipts from exports and remittances from abroad.

“The Kenyan banking sector registered growth in asset base largely supported by growth in deposits, injection of capital and retention of profits. The sector registered higher capital adequacy and liquidity ratios,” Prof Ndung’u said.

The sector’s balance sheet grew by 19.1 per cent from Ksh1,194.2 billion ($15.9 billion) to Ksh1,422.3 billion ($18.9 billion) in February this year with net loans and advances, government securities and placements forming the key components of the balance sheet.

Gross loans and advances increased from Ksh695.9 billion ($9.3 billion) in February 2009 to Ksh783.9 billion ($10.5 billion) this year representing a 12.6 per cent growth.

Non-performing loans

As the number of customers taking loans and advances increased, so did the stock of non-performing ones which increased by 2.8 per cent from Ksh61.5 billion ($820 million) last year to Ksh63.2 billion ($842.7 million) during the period under review.

As a result, the coverage ratio, which is measured as a percentage of specific provisions to total non-performing loans, declined by six percentage points from last year’s 52.6 per cent.

However, gross non-performing loans as a ratio of gross loans declined from 8.8 per cent in February 2009 to 8.1 per cent in February 2010.
http://www.theeastafrican.co.ke/business/-/2560/906224/-/3xb32jz/-/index.html

KENYA PM CALLS FOR INVESTMENT IN INFRASTRUCTURE
NAIROBI, May 1 (NNN-KBC):Prime Minister Raila Odinga Friday appealed to East African Community governments to invest heavily in infrastructure development to facilitate trade and growth.

At the same time, he painted a positive picture for the region, saying all the states are taking positive steps to address issues that have hindered economic progress.

Odinga was speaking when he addressed the Third East African Community Investment Conference in Kampala, Uganda.

He said strengthening infrastructure remains a top priority and Kenya has been allocating nearly one quarter of total budgetary expenditures for this purpose.

He said Kenya is equally investing in energy and has secured commitments s to raise its capacity from 1000 MW last year to 3000 MW by 2013.

He called on regional states to collectively exploit the rich energy sources in the region.

He said Eastern Africa has a geothermal potential equivalent to 25,000 MW, enormous hydro power potentials exist in Uganda, DRC, and Ethiopia, Tanzania has large gas reserves while Uganda will soon be joining the league of oil producers.

"All this shows us that if we pool our efforts and resources, we can be richer and more economically stable as a region," Odinga said.

"We should therefore adopt a regional approach in meeting power needs. We should invest in regional inter-connectivity. This will allow us to secure an appropriate energy mix and to assure energy security," he added.

Odinga said there is significant investment in infrastructure development which should pay dividends to the region once completed.

He said much of the rehabilitation and extension of Northern Corridor has been completed, and the construction for the remainder is beginning.

The construction to bitumen standards of the Great North Corridor, is also ongoing, the PM said, adding that there is also good progress in the construction of the Central and Southern Corridor that links the Port of Dar-es-Salaam to Zambia in the south-west via the TAZARA railway line.

He decried the prevalence of Non -Tariff Barriers saying crossing the Kenya - Uganda border at Malaba can often take 4 to 6 days, with numerous police road blocks offering avenues for corruption.

He said this may explain why despite the formation of East Africa Economic Community, the share of intra-EAC trade in total trade of the Summit is being attended by presidents Jakaya Kikwete, Yoweri Museveni, Bernard Makuza, Prime Minister of the Republic of Rwanda and Dr. Yves Sahinguvu, First Vice President of the Republic of Burundi, among others.http://www.namnewsnetwork.org/v2/read.php?id=118751

Kenya's sugar output rose by 5 per cent to 548,207 tonnes in 2009 and imports were down 16 per cent to 184,530 tonnes, the industry regulator said on Tuesday.

"This is the highest production ever achieved in the sugar industry," the Kenya Sugar Board said in an annual statistics report. Mumias Sugar produced 45.3 per cent of the total sugar.

Although the east African nation has a deal with the Common Market for Eastern and Southern Africa (COMESA) trade bloc to restrict imports from the bloc to 200,000 tonnes per year to protect its industry, members supplied only 40 per cent.

The main supplier of sugar was Saudi Arabia with 47,479 tonnes, followed by South Africa with 46,584 tonnes.

The sugar board said global consumption was outpacing production.

Kenya's sugar consumption is estimated at some 750,000 tonnes in 2009.

The tourism sector expects over a million visitors this year with a projected earning of about Sh80 billion.

“For 2010, our target remains more than a million visitors flying in; more than a billion US dollars revenue attributable to tourism,” the Kenya Tourist Board (KTB) chairman Jake Grieves-Cook said on Monday.

If it meets the target, the sector would have matched its 2007 performance, which is its best year when over a million tourists came calling thus earning Sh65 billion for the economy.

This takes into account the exchange rate because in 2007, the US dollar was trading at about Sh65 compared to the current rate of about Sh80.

Tourism, the third largest foreign exchange earner after horticulture and tea, earned Sh62.46 billion in 2009 from 950,000 visitors.

The 2009 performance was an improvement from Sh52.71 billion and about 729,000 visitors in 2008, when the post-election violence and the global economic slowdown hit the hard the sector.

Slightly below

Mr Grieves-Cook’s projection came as KTB - the statutory body charged with marketing the country as a tourist destination - announced that tourists visiting Kenya in the first four months of this year rose to 336,179 from 289,518 last year.

It is, however, slightly bellow the 340,902 visitors who came into the country in the first quarter of 2007.

This year’s first quarter arrivals were largely driven by markets that fully recovered and surpassed their 2007 levels, including the US, India, South Africa, Uganda, Tanzania, Netherlands, China, Australia, UAE, Poland, Sweden, Finland, Russia, and Mexico.

“We could have had more had the Iceland volcano not disrupted the airline industry,” KTB research manager Michael Riungu told a press briefing at Hotel Intercontinental, Nairobi.

The board’s managing director Muriithi Ndegwa said they are diversifying their markets to China, Australia, South Africa, the Gulf region, Russia and domestically through advertising to boost the performance.

“We are targeting the BRIC (Brazil, Russia, India and China) countries because they are projected to start contributing significantly to outward tourism travel,” said Mr Ndegwa adding that they will still be marketing the country in its traditional markets - US, UK, Italy and Germany.

During the briefing, Acting Tourism ministry permanent secretary Eunice Miima admitted that August 4 constitutional referendum is critical to the industry’s wellbeing depending on how it is handled.

“It is true there are concerns as to whether it will be a replica of 2007. But it depends on how the nation handles the process. If it handles it peacefully and constructively, it will be no problem. I am hopping it will be peaceful,” said Ms Miima.

Legal framework

The PS said they forwarded the Tourism Bill, which will provide the legal framework for the regulation of the industry, to the Attorney General’s office.

“We expect to enact it before the end of this year,” she said.

Ms Miima said the commissioner of policy has agreed to their request to have the tourism police unit housed in the ministry to help improve security.

^^i think its time we diversify both our tourism target markets and the provision of products we offer in order to get a good money for the service we provide :)

http://www.nation.co.ke/business/news/World%20Bank%20lends%20Kenya%20Sh26bn%20for%20power%20projects/-/1006/929260/-/3fwit7/-/index.html

:cheers::cheers:

http://www.businessdailyafrica.com/Company%20Industry/WB%20plans%20model%20farming%20centres%20for%20East%20Africa/-/539550/931574/-/5vhf4i/-/index.html

The Tourism ministry plans to introduce different products from the traditional beach activities and game watching.

Coast regional tourism officer Lillian Ayimba said Coastal cultures and attractive sites outside the parks and beaches would now be part of the package.

“Some tourists have been here more than once and are tired of seeing the same parks and beaches. We need to introduce them to new sights,” she said.

Rich culture

Coast had a rich culture which has not been fully exploited, especially that of the Taita and Taveta communities.

Ms Ayimba said the famous Shomoto and Kino caves in Wundanyi would be included in the tourism circuit.

Kino cave is famous for being used by prominent East African freedom fighters as a hideout in the liberation struggle.

Mzee Jomo Kenyatta, Dr Julius Nyerere, Mr Oginga Odinga, Mr Ronald Ngala, Mr Paul Ngei and Mr Fred Kubai were among those who used the cave as a hideout.

Ms Ayimba said out of the 62 sites and products the ministry had identified in Coast, more than 30 were in Taita.

She said land had been acquired at Bamburi in Mombasa on which to build Bomas of Kenya Coast to take advantage of the region’s rich culture for touristic exploits.

“The Bomas of Kenya Coast will be allowing different communities to showcase their cultures unlike in Nairobi where one group does everything,” she said.

This was one way of changing the perception among tourists that the Maasai culture is the only one that is still alive.

Ms Ayumba was speaking in Wundanyi at this year’s Worldwide Responsible Tourism Day on Wednesday.

Speaking at the same occasion, Taita district commissioner Njenga Miiri urged the community to shun irresponsible drinking and take advantage of the planned expansion in the tourism sector.

A vessel that belongs to the world’s fourth largest container fleet shipping company, Evergreen Line has docked at the port of Mombasa for the first time.
The company through its agents Gulf Badr Group (Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000010767&cid=464&story=World%E2%80%99s%20fourth%20largest%20shipping%20firm%20sets%20foot%20in%20Kenya#)) Limited and top management of Kenya Ports Authority (KPA) on Monday welcomed the company.
KPA acting Managing Director Gichiri Ndua lauded the move by the firm to start the service into Mombasa.
Mr Ndua, who was flanked by the Port terminal Manager, James Rarieya said the port of Mombasa has been recording impressive business growth in recent times.
"It is a major achievement as it underscores confidence in the region and creates room for potential growth," he said.
Additional storage
Ndua further said that KPA was aware of the need for additional storage and handling capacities and was transforming berth 19 and berths 11-14 into container handling terminals. "We are also on course to developing a new container terminal on land west of the Kipevu Oil jetty," he said.
Dr Banaa Badr, chairman of Gulf Badr Group (Kenya) Limited said they were happy to start operations in Kenya.
"Our services shall be offered every Sunday with a vessel arriving from Colombo in the Far East before proceeding to Dar Es Salaam, Tanzania and back on a round trip to Colombo," Dr Banaa said.
He added that Africa is gaining popularity as a destination for business hence a rush for its market share. Banaa said that Evergreen Line operates around the globe with dedicated services from its 160 vessels sailing the waters of all the oceans of the world.
He said he was optimistic that the planned dredging work at the port of Mombasa would be completed in good time to enable larger ocean going vessels to dock.
Volume of cargo
"We hope that Mombasa port will be able to double the volume of cargo handled by having bigger vessels calling in. This is not possible at the moment as the draught is small," he said.
During a brief ceremony at the port’s berth number 17, the skipper of the container ship, MV Santa Rosa, Captain Sergiy Dyndar was presented with a certificate of first call at the port by Ndua.

KENYAN FINANCE MINISTER PRESENTS 12.35 BILLION USD BUDGET FOR 2010-2011
NAIROBI, June 11 (NNN-KBC) -- Kenyan Finance Minister Uhuru Kenyatta has a 2010-2011 financial year Budget totalling 998.8 billion shillings (about 23.36 billion USD) which is geared toward boosting economic recovery.

Reading the Budget for the first time in the absence of President Mwai Kibaki who has left for South Africa for the World Cup opening ceremonies Thursday, Uhuru spelt out a raft of measures aimed at spurring economic growth.

The finance minister also moved to remove economic growth constraints to ensure the projected economic growth for the financial year 2010-2011 was realised. He said the government expected a deficit of 188 billion shillings, or 6.8 per cent of gross domestic product (GDP), which would be financed through domestic borrowing of 105.3 billion shillings and external financing of 82.7 billion shillings (one USD = about 80.87 shillings).

"Growth in this period will be driven mainly by increased investments in key sectors including agriculture, services, infrastructure, health and education and targeted strategic development interventions," Kenyatta said. "The government will contain the growth in public debt to a sustainable level to ensure the private sector is not crowded out."

He said development expenditure totalled Sh321 billion, out of which Sh96 billion would be financed by appropriations aid.

In taxation, an area that bears much meaning to the common Kenyan, the Finance Minister has lowered import duty on wheat from 35 to 10 per cent. Duty on imported rice has also been lowered from 75 to 35 per cent and import duty on poultry feed has been abolished.

Kenyans living in the diaspora have been given a one year tax amnesty. Pensioners also have something to smile about as they will be paid in 30 as opposed to the earlier 60-day period.http://namnewsnetwork.org/v2/read.php?id=123293

An ambitious agricultural reform package for Kenya is to be launched this Tuesday, signalling a new private-sector driven approach to the development of the Ksh727 billion ($9.32 billion) sector.
The new agricultural strategy is designed to drive Vision 2030 — the policy blueprint unveiled by the coalition government to ramp up economic growth to 10 per cent and turn Kenya into a middle-industrialised economy in 20 years.

The goal of the new Agri-cultural Sector Development Strategy 2010-2020 is to slash poverty by half in 10 years, grow agriculture by seven per cent and boost revenues in the sector by 25 per cent every year.Its authors say it will rescue two million people from an annual cycle of starvation.

The strategy was authored by the 10 ministries involved in overseeing the agricultural sector through the Agricultural Sector Co-ordination Unit.

The ministries are Agriculture, Land, Livestock Development, Fisheries Development, Environment and Mineral Resources, Water Resources and Irrigation, Regional Development Authorities, Co-operative Development, Forestry and Wildlife, and Development of Northern Kenya and Other Arid Areas.

Adverse laws, such as the Co-operative Societies’ Act (2004), will be reviewed to remove hurdles to the strategy.

Parastatals involved in production, processing and marketing will be placed in private hands.

There will be huge investments in irrigation, value addition, increased production, human resources, affordable inputs and appropriate loans, besides fertiliser projects and marketing.
Other drivers of the new strategy will include a land-use master plan to protect critical water sources such as the Mau, the Cheranganis, Mt Elgon, the Aberdares and Mt Kenya; a computerised land management information system (called GIS) will be put in place to speed up land transactions and enhance security of tenure.

Technocrats are touting this as the most ambitious policy initiative by the Kenya government since Independence.

“The strategy is a deeper expression of Vision 2030. It is a meaningful and appropriate target,” said Dr Romano Kiome, Permanent Secretary in the Ministry of Agriculture.

His counterpart in Fisheries Development, Prof Micheni Japhet Ntiba, said the new policy is overdue.

“That’s how things should have been from the beginning. The new strategy will grow the sector in a co-ordinated, efficient and effective manner.”

He added that the agricultural sector will be able to feed an extra two million Kenyans every year and remove a similar number from poverty.

http://www.theeastafrican.co.ke/news/Kenya%20unveils%20$10bn%20modern%20farming%20blueprint/-/2558/955792/-/item/0/-/5y6touz/-/index.html
There is a short ending on the 2nd page.

:cheers::banana:

wat if this had been done twenty years ago?by now kenya would have been an agricultural superpower.......

Changing shopping trends and a growing middle class has led to a scramble for shopping space in Nairobi.

Developers are increasing their investment in shopping malls with a new wing of the Junction shopping mall expected to be opened before the end of the year in addition to others on Kiambu and Langata roads.

These new shopping centres are seen to be driven by increased purchasing power among Kenya’s middle class which has disposable income.
In addition, the move towards formal shopping in one place is seen as a major driver for these developments.

“The middle class in the country is growing and they have disposable income,” said Mr Trevor Kanja, a property developer of the new Galleria mall on Langata Road, adding that people are moving towards formal shopping as opposed to the traditional kiosks.


Property managers say the appetite for space in shopping malls has been whetted thus the increased investment in these properties especially in the city’s suburb areas.
Knight Frank, one of the leading property managers in the country, has unveiled a new phase of Junction Shopping Centre on Ngong Road.

“Due to increased demand for space, the Junction has embarked on construction work to add more space to the existing facility,” said the property manager in a statement, adding that this is expected to cost Sh1 billion.
The Junction mall has become one of the leading shopping centres serving Kilimani, Lavington, Kileleshwa and Ngong Road suburbs.

Its traffic average is said to be 9,000 on weekdays, a number that increases during the weekends.
Knight Frank also manages The Junction, Crossroads and T-Mall.

Nairobi boasts about 10 major shopping malls with others under construction in various parts of the city including Langata and Kiambu road as well as Eastlands.

As part of modernising Nairobi’s Eastlands area the City Council of Nairobi is looking at new developments in the area mainly new residential apartments to replace the current ones and shopping malls.

Other investors like Virgin Estates Limited also have their eye in this area with plans under way to put up shopping centres.

The right tenant mix is seen as a key factor towards drawing traffic from the widest areas possible with anchor shops being the major traffic pullers for shopping malls, globally.
In Kenya supermarkets have proved to be the key traffic puller with Nakumatt being the lead anchor shop in most of the newer shopping centres.

As part of its modernisation plans the supermarket has been opening up stores across the country and has moved to lease space in these upcoming malls.

Sarit Centre and Capital Centre on Mombasa Road have Uchumi supermarket in their premises, T-Mall boast Tuskys while Yaya is home to Chandarana Supermarket. Junction, Presitge, Village Market, Westgate and Crossroads has Nakumatt.

The supermarket is also expected to be the anchor shop at Galleria a new shopping mall expected to open in November, 2010.

The multi-million development is expected to boast over 50 tenants including Bata, Java, Text Book Centre, Deacon’s group as well as service providers like banks.
http://www.businessdailyafrica.com/Company%20Industry/Growing%20middle%20class%20fuels%20demand%20for%20shopping%20space/-/539550/960856/-/item/0/-/rtk2voz/-/index.html
:banana::banana:

wat if this had been done twenty years ago?by now kenya would have been an agricultural superpower.......

In relative terms i think they've done good a bit considering past droughts and far smaller arable land.However,they could do some improvement.

http://www.nation.co.ke/business/news/Balala%20upbeat%20about%2012m%20tourists%20target/-/1006/961176/-/qc5wh8z/-/index.html

^^ 1.2 million this year and 2 million by 2012, those numbers could be a lot higher if and when the one tourist visa for the EAC is established.

kenya needs to get in atleast 5 million visitors every year if kenya is to become a middle size economy by 2030......kenya is setting its targets too low.........

http://www.nation.co.ke/business/news/Sh14%20billion%20cash%20boost%20to%20help%20seal%20yawning%20rice%20output%20gap/-/1006/965014/-/rqq3i5z/-/index.html

About 11,000 jobless Kenyan youths will from next month be hired on a short-term basis in a government plan to team up with the private sector to boost job skills and experience.

Several companies have agreed to take in the youths on a six-months attachment programme tailored at giving them experience, according to Ms Carol Kariuki, the chief executive of the Kenya Private Sector Alliance (Kepsa)—an umbrella organisation of local businesses.

“What is remaining is to identify which youths are sent to what particular companies. But we have now identified all the industries that will absorb the youths. We have also met with the sectors’ leaders and briefed them of the scheme,” she said.

The programme similar to one created in Canada in 1997 includes short-term attachment in agriculture, ICT, manufacturing, tourism, energy and financial sectors.
Those participating in the scheme will each be paid a Sh6,000 stipend through mobile phone money transfer services every month.

They will also receive an additional payment after completion of the internship to assist with the monitoring and evaluation process.
The programme funded by World bank is aimed at equipping the youth with skills to start their own businesses or join formal employment.
The first phase of the project will utilise Sh1.2 billion—part of the Sh4.6 billion World Bank loan awarded to Kenya in May to support various initiatives to put young people under employment.

Unemployment rate

Government data indicates that there are about 14 million young people aged between 15-30 years with indications that the population of this group will grow to 17 million people by 2012 and 24 million by 2017.
The government has rolled out the Kazi Kwa Vijana initiative under the Ministry of Youth Affairs and plans to engage the youth in gainful work.
The Kazi Kwa Vijana project involves labour intensive work like repairing roads, building dams and public works and has since created 200,000 new jobs since its inception in 2009.
According to Ms Kariuki, Kepsa is in the process of setting up a management unit for the project.

“Already we have recruited four people and we expect to have an additional three people to assist with the implementation of the project. They will set up systems to facilitate the scheme. We must start by September,” said Ms Kariuki.
The internship programme will entail the actual placement of jobless youths under mentors in work environments either in factories, offices or large agricultural farms.

It will be flexible, with practical assignments to provide the school drop outs with opportunities to boost skills in preparation for employment or self-employment at the end of the internship.

The project targets youths aged between 15 and 29 years and they should at least have eight years of formal education and have been out of school for a year.
Educating is all it takes at times to get a young entrepreneur inspired. This is good. :cheers:
http://www.businessdailyafrica.com/Company%20Industry/Private%20sector%20to%20hire%2011000%20youths/-/539550/974056/-/item/0/-/paoq3v/-/index.html

KENYA COMMITTED TO CURBING ILLICIT TRADE
NAIROBI, Oct 7 (NNN-KBC):President Mwai Kibaki has challenged participants in the regional Anti-Illicit Trade Conference to identify loopholes existing in national and regional legislations that lead to flourishing of illicit trade.

Kibaki also urged the participants to formulate an action plan that would enable East African Community member States to implement a more focused and coherent regional program on illicit trade with particular focus on counterfeits, smuggling and piracy.

He made the remarks on Wednesday when he officially opened the Regional Anti-Illicit Trade Conference in Nairobi.

He noted that all stakeholders know and understand the challenges posed by the menace of illicit trade and thus should come up with long lasting solutions to the menace.

Kibaki called on law makers of the five member states of the East African Community to come up with a uniform law which will help in tackling the menace of illicit trade.

He urged the delegates to come up with tangible solutions to the problem of illicit trade which he noted is not only a regional issue but an international problem.

"Illicit trade is a big problem in all the five member states of East African Community, therefore we cannot pretend that we are not aware of this problem, it is now upon us to find a solution to it."

He reaffirmed Kenya's commitment to comprehensively reform national laws and institutions so as to conform to internationally accepted standards having established the Anti-Counterfeit Agency with a wide ranging mandate and whose functions were also complemented by other public institutions such as Kenya Revenue Authority.

"I urge businesses to make use of these laws and institutions in fighting illicit trade. Let us all remain vigilant in monitoring and reporting illicit trade practices so that we can improve the competitiveness of our businesses and promote genuine enterprises," he said.

Kibaki affirmed that unethical business practices have no place in modern society and called for concerted efforts to fight the vice that has been a leading cause of hefty loss of revenue and profits to governments and companies.

Kibaki urged all stakeholders to remain vigilant against the vice so as to entrench fair competition and flourishing of genuine enterprises noting that illicit trade not only poses unfair competition but also poses a threat to both human heath and environment.

"It is, therefore, important that we all join hands to tackle this challenge, which has become one of the leading causes of revenue loss not just for Governments but also for the private sector. Illicit trade is a growing problem that needs to be addressed through concerted efforts by both the public and private sectors," he said.

He praised regional initiatives instituted to tackle the menace particularly penalties such as seizure of illicit goods, assets as well as vessels used in transporting such goods.

He also expressed confidence that two bills currently being formulated by the East African Community would enhance the region's capacity to combat the problem of illicit trade and counterfeits.

He reminded citizens of the member states to view themselves as East Africans and not as nationals of the individual countries particularly after the coming into effect of the EAC Common Market.

"With the establishment of the EAC Common Market, we must now think and act as East Africans so that we can be able to deepen the integration of our region and exploit the benefits of a large domestic market."

Speaking during the function the Minister for Industrialization Henry Kosgey noted that the perpetrators of the illicit trade do not respect international boundaries because they work in networks and therefore it requires concerted efforts to deal with the menace.

He added that the illicit trade if not curbed urgently would make the East Africa region an undesirable destination for trade and investment.

Kosgey said many Kenyans have suffered due to this trade citing the collapse of several buildings because of the substandard building materials while faker seeds have caused crop failure. http://www.namnewsnetwork.org/v2/read.php?id=135498

Investors seek to cash in on planned bypass (http://www.nation.co.ke/business/news/Investors%20seek%20to%20cash%20in%20on%20planned%20bypass/-/1006/1034564/-/gd0ciaz/-/index.html)
http://www.nation.co.ke/image/view/-/1034578/medRes/204954/-/maxw/600/-/cbx0bmz/-/bypass+pic.jpg
An artist's impression a bypass. Transport minister Amos Kimunya said the construction of the Dongo Kundu bypass would start before the end of the year. Photo/FILE
The planned construction of a bypass linking Mombasa island and the South Coast is attracting investors seeking to cash in on the benefits of enhanced infrastructure.

South Coast, whose main town is Diani, had been given a wide berth by investors due to ferry delays at the Likoni channel.

Transport minister Amos Kimunya said the construction of the Dongo Kundu bypass would start before the end of the year.

Mr Kimunya said that construction of the road, which will start at Miritini through Dongo Kundu and end at Lunga Lunga in South Coast, would commence after tendering is finalised.

“The South Coast has great potential which needs to be exploited to the fullest. This will be made possible by this road,” the minister said.

Ministry of Roads PS, Engineer Michael Kamau, said bids for the construction of the multi-million bypass would be issued as soon as the minister endorses the plan.

He said the much-awaited project had been hit by a misunderstanding among different government agencies over the routing, a matter he added had been resolved for the 18km road that would also create special economic zones in Changamwe and the South Coast.

“The increased economic growth and the population demands that the flow of traffic and goods is uninterrupted and this can only be realised through a bypass in Dongo Kundu,” he said.

The South Coast has in the last few months witnessed massive construction and setting up of amenities such as banks, supermarkets, private schools and hospitals.

“All the major banks have branches in Diani and we are now witnessing the explosion of high-rise buildings to capitalise on available land,” said Mr David Ndirangu, proprietor of Masai Cottages and Masai Bureau nightclub.

Palm Beach Hospital proprietor, Dr Lalit Kotak, said economic development in the area would increase if the bypass is constructed.

Mombasa and Coast Tourist Association executive officer Millicent Odhiambo said the bypass would benefit not only the tourism but every sector of the economy.

Contractors laud plan to offer local companies loans (http://www.businessdailyafrica.com/Contractors%20laud%20plan%20to%20offer%20local%20companies%20loans/-/539552/1037702/-/item/0/-/o0b1xkz/-/index.html)


The government is considering advancing loans to local contractors to enable them build their capacity to a level where they can compete with multinational construction firms, as a way of speeding up infrastructure development in the country.

Minister for Public Works, Chris Obure, said on Thursday that most local contractors lack finances required to take on bigger projects in the country and regionally, giving foreign firms the space to compete exclusively for the mega construction deals.

Details of the intended financing scheme are yet be completed, but Mr Obure said the National Construction Authority, a body that will be created by Parliament before year-end, will be in charge of the disbursements.

“We want to enhance the capacity of our contractors to enable them take bigger projects in Kenya and to neighbouring countries where foreign firms are dominant,” said Mr Obure.

Lack of funding has been the main limitation for most of the 6,500 indigenous contractors, who claim that most commercial banks are not willing to extend credit to them.

Mr Nzalu Wambua, a Mombasa-based contractor said that the new move will open up opportunities for smaller players.

“I hope this opens up an avenue where we can access credit because the commercial banks hardly lend to us, while informal lenders charge exorbitant interest rates,” said Mr Wambua.

He said he has fallen short of capital to take on projects many times, and has severally been forced to turn to informal lenders to supplement his finances.

Increased national infrastructure spending in recent years means more mega projects are going to the cash- rich multinationals.

Major projects, especially in road construction have been awarded to Chinese firms.

Local cement and paint manufacturers have also raised complaints that the materials used are imported from China, while they are available locally.

Mr Obure said that the local firms have the capacity to earn the country foreign exchange by growing into big regional contractors.

Official estimates indicate that the construction sector contributes more than a quarter of Kenya’s gross domestic product, and enhancing their capacity through the proposed National Construction Authority would ensure a higher contribution.

Prof Joseph Keiyah, a director at KIPPRA, the government’s policy think-tank , said the move to support the local contractors comes at an ideal time especially after the multinationals have raised the standards of workmanship.

“It is the ideal time for the ministry to support the small contractors because the amount of funding involved in government projects is substantial and needs to be earned by the locals,” said Prof Keiyah.

--Match skills--
He noted that the contractors need to have the skills level that the multinationals have had to give the Kenyan people value for their money, concurring with Public Works Permanent Secretary Prof John Lonyangapuo.

“We need continuous training for local contractors to ensure they match their skills with those of international contractors,” said the PS.

In a new development, the ministry has also said that it would not award any tenders before the full financing has been found for any project, in a move to cut on delayed payments for completed work.

Payments arrears have led contractors to inflate the cost of government projects to cover for the uncertainty relating to payments, and has at times discouraged some contractors from taking up state-funded projects.

Guess this is kinda old. Anyway...

Tuskys buys Ugandan stores


By NATION REPORTER
Thursday, September 23 2010.

Tuskys Supermarket has entered the Ugandan market with the acquisition of two stores, heightening competition for the other two Kenyan retailers in Kampala.

Tuskys, the third Kenyan supermarket chain to open shop in Uganda after Nakumatt and Uchumi, has quietly acquired Half Price and Good Price supermarkets, which have outlets in Kitintale, Ntinda, Nakulabye and Shauri Yako in Kampala.

“We are looking forward to branding, which we will do in the next two months and after that, we learn about the market and begin to think about expansion,” Tuskys’ country manager Hassan Ali told The Observer.

This comes a year after Kenya’s leading supermarket Nakumatt opened a $3 million (Sh240 million) hypermarket in Kampala and three months since the coming into effect of the East African Common Market Protocol.

Uchumi is currently in fourth place in Kenya, but is one of the leading retailers in Uganda.

Half Price and Good Price supermarkets were subsidiaries of GKO Medicines pharmaceutical company.

They were created as a trading arm for GKO for essential domestic commodities and goods.

“We are looking to expand into the regional market and offer services and goods at a better price,” Mr Ali revealed.

With the cutthroat competition in Kenya, local supermarkets have been looking beyond borders.

Prior to opening in Kampala, Nakumatt Holdings had invested $20 million (Sh1.6 billion) in its East Africa expansion plan to open three branches in Uganda, two in Rwanda and four in Tanzania.

Equity Bank targets Tanzania, Rwanda.

By David Dolan | October 4, 2010 2:16 PM EDT

Kenya's Equity Bank is looking to enter Tanzania or Rwanda by early next year and may consider an acquisition if it finds an appropriate target, a senior executive said on Monday.

Kenya's biggest lender by market value is also looking to double the number of its accounts in the next 15 months as it targets remote areas where many residents are still without bank accounts, Samuel Makome, Equity Bank's general manager of risk management told Reuters in an interview.

Kenya, Uganda, Tanzania, Rwanda and Burundi, are members of the East African Community, which launched a common market among its members this year to promote economic integration.

Equity Bank already has a presence in Uganda, with 43 branches, but has yet to make a play in Tanzania or Rwanda.

"The bank is looking towards further expansion. We are eyeing Tanzania. We are eyeing Rwanda," Makome said on the sidelines of an investor conference in Johannesburg.

The Kenyan bank could enter at least one of those markets as early as the first quarter of 2011, he said, adding it could potentially make an acquisition of a local player.

"We would not fail to do an acquisition if we found a target in somebody we could talk to. But we are not saying we would have to do an acquisition."

Equity Bank, founded 25 years ago as a building society, has expanded by targeting customers without bank accounts.

The bank, which is about 25 percent owned by Africa-focused investment fund Helios Investment Partners, has a tie-up with Kenyan mobile-phone operator Safaricom, offering a phone-based banking service.

The M-Kesho service allows customers in rural areas, who may not have ready access to a branch, to access Equity's banking products.

"Our aim is to try to mop up all the people ... who do not have a bank account," Makome said.

"We do expect to take banking to the final mile in Kenya."

The bank aims to double the number of its accounts in the next 15 months from the current 5.5 million, Makome said.

Of the new accounts, Makome said he expects two M-Kesho accounts for every new traditional one.

The bank currently has 800,000 M-Kesho accounts, he said.

Equity Bank reported a 46 percent jump in first-half profit in July, to 3.88 billion Kenyan shillings.

Shares of the bank have surged about 88 percent so far this year, compared with a 43 percent rise in Nairobi's benchmark index.

Now only Burundi is left. :)

Now only Burundi is left. :)

Read this week's(oct 28th) edition of "The Economist".It has an interesting article that touches on that and much more.

Read this week's(oct 28th) edition of "The Economist".It has an interesting article that touches on that and much more.

I couldn't locate the article on the economist online. Can you post the link please?

http://www.speedyshare.com/files/24935714/17373983.htm

Here it is.

http://www.economist.com/node/17373983

http://www.economist.com/node/17373983

Thanx Amboseli. I had seen that article earlier in the Oasis section.

Sometimes I think the 2007-08 violence may have been the turning point for Kenya's change for the better. Without it, we might have dragged our feet in changing our constitution which could have resulted in far greater consequences in future. Only time will tell.

Thanx Amboseli. I had seen that article earlier in the Oasis section.

Sometimes I think the 2007-08 violence may have been the turning point for Kenya's change for the better. Without it, we might have dragged our feet in changing our constitution which could have resulted in far greater consequences in future. Only time will tell.

the 'economist' article is also quoted in today's 'saturday nation'. quite interesting for that anti-africa magazine (economist) to say something positive about us.

http://www.businessdailyafrica.com/Corporate%20News/Foreign%20firms%20intensify%20the%20chase%20for%20Kenyas%20gold/-/539550/1044826/-/item/1/-/xs84tmz/-/index.html

The Ministry of Tourism has implemented two multi-million-shilling projects in Siaya County.
The projects, which were initiated through the Tourist Trust Fund in Got Ramogi and the ancestral home of US President Barack Obama in Nyangoma K’ogelo, cost Sh10 million and Sh9.5 million.
Tourist Trust fund CEO Sammy Kibet said the project would boost the western tourism circuit, which has been unexploited for the past years.
Kibet said the trust has built an ultra modern hotelhttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000030651&cid=14&story=Sh20%20million%20projects%20to%20boost%20tourism#) at Got Ramogi in Bondo, which will be handed over to the community organisation for management. The hotel, which has been built on a hill, is well equipped with modern conference facilities.
Kibet said: " We have done our best to set up this hotel that is up to standard. We believe that we will tap the potential that has always been assumed (to exist) here."
He said the trust would hand over the facility to the locals once they get an investor.

Greetings from Russia! Friends, may you help me?
I need information about big turn-key general contractors of Kenya and the region of East Africa, primarily having experince in hotel development (but it is not a must), able to build from ground and concrete works up to complete furnishing.

So far, I have found Epco Builders Ltd and Vincenzo Hotel Contractors Ltd.

Thank you very much in advance.

P.S. My close friend in Russia was born in Nairobi when his parents worked in Kenya back to the late 70s.

Greetings from Russia! Friends, may you help me?
I need information about big turn-key general contractors of Kenya and the region of East Africa, primarily having experince in hotel development (but it is not a must), able to build from ground and concrete works up to complete furnishing.

So far, I have found Epco Builders Ltd and Vincenzo Hotel Contractors Ltd.

Thank you very much in advance.

P.S. My close friend in Russia was born in Nairobi when his parents worked in Kenya back to the late 70s.

привет....

Привет. But I think Russian would not be preferrable here.

Exporters of raw nuts are planning to set up a processing unit in Mombasa following successful ban on export of in-shell nuts, which has robbed them of a significant market.

Three firms, according to Kenya Cashew nut Processors and Exporters Association chairman Mr Samuel Varghese have partnered in the venture and intend to put up the unit towards the end of the year.

The plant - initially projected to process 16 tonnes of nuts per day - is estimated to cost Sh300 million.

Easily be converted

“We have existing structures and warehousing that will easily be converted into a processing unit before the next season starts in November this year,” said Mr Varghese.

He said part of the machinery will be bought from Vietnam, India and Sri Lanka before the end of this month.

Exporters are already bunching the nuts, which they buy at Sh65 per kilogramme, he said.

International prices of nuts have improved this season due to a global decline in production.

Kenyan processors are buying nuts at Sh46 but according to Mr Varghese, the processor can profitably offer Sh70 farm gate prices to farmers.

Uchumi Supermarket has extended its reach to Nakuru town following the opening of a branch.

The retailer is making a comeback to the town five years after it closed shop due to liquidity problems.

The chain reopened its branch near Nakuru Wholesale Market at the weekend, attracting thousands of shoppers.

Branch supervisor Peter Mwangangi said 4,000 shoppers trooped into the shop while 2,600 registered for the supermarket loyalty card, popularly known as U Card.

The re-entry of Uchumi is set to intensify the scramble for the lucrative market dominated by other supermarkets such as Gilanis, Tuskys, Ukwala, Stage Mattresses and Wool Mart.

Nakumatt is constructing a mega store in the town and is expected to start doing business by the end of the year.

The supermarket incidentally started operations in Nakuru town before shifting to Nairobi.

“Shopping will never be the same again and shoppers in Nakuru town should now count on Uchumi to offer them good services and items of high quality at affordable prices,” said Mr Mwangangi.

Many shoppers who signed up for the loyalty cards said they were happy that the chain had returned to Nakuru after a long absence.

Uchumi Supermarket has extended its reach to Nakuru town following the opening of a branch.

The retailer is making a comeback to the town five years after it closed shop due to liquidity problems.

The chain reopened its branch near Nakuru Wholesale Market at the weekend, attracting thousands of shoppers.

Branch supervisor Peter Mwangangi said 4,000 shoppers trooped into the shop while 2,600 registered for the supermarket loyalty card, popularly known as U Card.

The re-entry of Uchumi is set to intensify the scramble for the lucrative market dominated by other supermarkets such as Gilanis, Tuskys, Ukwala, Stage Mattresses and Wool Mart.

Nakumatt is constructing a mega store in the town and is expected to start doing business by the end of the year.

The supermarket incidentally started operations in Nakuru town before shifting to Nairobi.

“Shopping will never be the same again and shoppers in Nakuru town should now count on Uchumi to offer them good services and items of high quality at affordable prices,” said Mr Mwangangi.

Many shoppers who signed up for the loyalty cards said they were happy that the chain had returned to Nakuru after a long absence.

^^
Nakuru, looks like everyone is rushing there. :)

AllAfrica (http://allafrica.com/stories/201104100236.html): Analysts Project Slower Growth for the Economy

Nairobi — Fears over the country's economic prospects this year continued on Tuesday with a group of analysts projecting that it could grow at less than 5 per cent.

Analysts from PineBridge Investments, however, down-played the impact of the ongoing Ocampo Six International Criminal Court process on the economy in respect to long-term investors.

No longer political news

"It is no longer political news. Since we have been dealing with it for the last four months, it has been priced in (by the investors)," said Mr Edward Gitahi, a senior investment manager at the firm formerly known as AIG Investments (EA) Ltd.

If anything, they singled out drought as the greatest risk to the economy because it could cripple the agricultural sector, which contributes about 24 per cent of the economy.

"Lower agricultural output and rising cost of production are expected to slow down growth momentum in 2011 to 4.5 per cent to 5 per cent," Mr David Achungo, the firm's investment manager, said.

Their projection is slower than the 5.7 per cent growth rate the International Monetary Fund projected in February this year on the strength of high public spending on infrastructure coupled with improved private sector growth.

It means that the economy could grow at a lower rate than the 5.5-6 per cent it is estimated to have achieved last year.

Mr Achungo said three "sizeable" challenges -- rising inflation, a weakening shilling and the charged political environment -- have dampened the economic optimism fuelled by last year's passage of the new Constitution.

The analysts warned that inflation, which rose to 9.19 per cent last month, could reach 15 per cent up from the current conditions -- high food and oil prices and a weak shilling.

This could be triple the Central Bank of Kenya's target of 5 per cent and could hit hard the poor who spend up to a third of their income on food.

Mr Achungo called on policymakers to bring inflation under control as quickly as possible, but warned that such policy measures should not be too tough as to risk economic growth.

This is understandable given that the weakening of the local currency forced CBK through the Monetary Policy Committee, its top decision-making organ, to raise its benchmark Central Bank Rate (CBR) from 5.75 per cent to 6 per cent last month signalling to the market that, among others, the interest rates should move up.

"There are now concerns that the previous temporary shocks to the economy (oil prices) to domestic prices have become more persistent and may have long-term effects," CBK governor and MPC chairman Prof Njuguna Ndung'u said after their meeting on March 22.

The shilling traded on Tuesday at 83.65/83.83 to the dollar, having strengthened from a record low of 86.70/80 it hit on March 15.

Mr Gitahi expressed concern about the government's ability to fund its budget in light of 2.2 per cent or Sh106 billion shortfall in tax revenue and increasing cost of implementing the new laws.

"In the absence of tighter taxation measures, the government may be hard pressed to fund an expected budget of Sh1.1 billion for 2011/12," he said of a budget that is assuming a 16.8 per cent increase in tax revenue.

The government, he said, will have an additional challenge of reducing the public debt/GDP ratio to 45 per cent from the current 48 per cent

at the beginning of the year I was confident that the economy would grow by at least 6% this year after great performance in Q3 & Q4 2010. Hopefully this prediction doesn't come true.

Daily Nation (http://www.nation.co.ke/News/45+per+cent+of+Kenyans+middle+class+says+study+/-/1056/1157750/-/vqm46r/-/index.html): 45 per cent of Kenyans middle class, says study

Close to half of Kenyans are categorised as middle class in a study published on Friday by the African Development Bank.

Kenya’s portion of middle-class citizens, 44.9 per cent, places the country well above the average for the whole of Africa in 2008, which the bank pegs at 33 per cent.

Kenya also far surpasses the other members of the East African Community in the portion of its population that has attained middle-class status under the bank’s definition.

The figure for Tanzania is said to be 12.1 per cent; for Uganda 18.7 per cent; Rwanda, 7.7 per cent and Burundi 5.3 per cent.

Kenya is also ranked ahead of South Africa, where 43.2 per cent of the population is categorised as middle class.

Oil-rich Gabon is listed as having the highest proportion of middle-class citizens, 75.4 per cent, in black Africa.

The proportion of “middle-class” Kenyans, however, drops dramatically to 16.8 per cent when those barely above the poverty line are excluded from the calculations.

The bank defines the middle class as including those Africans who spend between $2 (Sh166) and $20 (Sh1,660) a day, which the bank’s chief economist, Mthuli Ncube, says is an appropriate standard in terms of Africa’s cost of living.

The study assigns those with per capita consumption in the $2 (Sh166) to $4 (Sh332) range to a “floating class” whose members “remain largely vulnerable to slipping back into poverty”.

World Bank to cut Kenya’s growth forecast for this year

The World Bank is expected to downgrade its growth forecasts for Kenya in the next three weeks as rapid growth in food and fuel prices heap pressure on the cost of living.

The Bretton Woods institution had earlier indicated that Kenya’s economy would grow six per cent, largely due to the promulgation of the new Constitution, revolution in the country’s telecommunication sector, strong macroeconomic management, and investment in public infrastructure.

But on Wednesday, Wold Bank Country Director, Mr Johannes Zutt, said it would be very difficult for the country to meet its growth targets for this year owing to the explosion of new shocks in the form of high fuel and food prices.

Mr Zutt said the Bank would weaken the 2011 growth projections for Kenya in its economic update report to be released in three weeks time.

"It is true global fuel and food prices have been transmitted into Kenya’s economy. It is going to make it very difficult for Kenya to meet its growth targets going forward," Zutt told reporters in Nairobi on Wednesday.

He was speaking after attending an official launch of the Government’s 2nd Annual Progress Report (APR) for the First Medium Term Plan (MTP 2008-2012).

Zutt warned that the Kenyan economy could decelerate further if the imminent 2012 elections were not handled cautiously.

Kenyan economy plunged to 1.7 per cent in 2008 from a high of 7.1 per cent in 2007 after a disputed presidential poll hurled the country into brutal post-election violence, which killed 1,350 people and displaced thousands in the process."It is important for Kenya to manage well the next coming election cycles because this has led to the economic slowdown in the past," said Zutt.

Vision 2030

Last year, the Government raised its growth forecast for 2010 to five per cent, from 4.5 per cent, and said the economy should expand by six per cent in 2011 — albeit still below growth rates needed to deliver the ambitious Vision 2030.

Zutt, however, said the Government could protect the Kenyan economy and help it take off by creating a conducive environment, which encourages growth of private businesses.

He cited the rehabilitation of the dilapidated rail system, and an improvement in the efficiency of the port of Mombasa as critical to attracting private investments in the country.

Meanwhile Minister for Planning, National Development and Vision 2030, Wycliffe Oparanya, said the realisation of the vision 2030 growth objectives would also depend largely on how Kenya manages the next General Election.

"We are on track to vision 2030, but as a developing country we have challenges. We must be careful with our politics," he said.

Oparanya said implementation of the new Constitution, which is currently being politicised, is crucial if the country does not want to revise the economic gains already achieved.

He said the country has made positive strides in the area of national healing and reconciliation, giving impetus to economic growth recovery.

The 2009/2010 APR provides information on the progress achieved by the Government in the delivery of key development targets. The report indicates that positive progress has been registered against the backdrop of challenging international financial crisis and global recession.

The country registered a growth rate of 2.6 per cent in 2009/2010, buoyed by resurgence of activities in the tourism sector, and resilience in the building and construction industry. The growth was however, below the target of 8.3 per cent as envisioned in vision 2030.

Standard Media (http://www.standardmedia.co.ke/InsidePage.php?id=2000034945&cid=14&j=&m=&d=)

Boy, a lot is riding on next year's elections. Hopefully they go by with ease. Any violence could potentially end with slower economic growth than this year, and shun investors and this time around it'd be a lot harder to get them back.

Kenyan banking sector in fresh cost cutting venture
Kenya’s banks are used to defining the country’s economic weather. The fate of the banking sector has traditionally been linked to consumer confidence.

Its profitability — which arises from more lending — is usually a signal of the state of the economy as it only tells whether manufacturers and households took in more money in credit or not which effectively has an impact on production and level of demand for goods and services.

So when banks raid the executive suites and let go of hundreds of senior, middle-level managers and staff in a space of three months, that sends signals that their executive suites could be piling weight on their operation costs and effectively threatening profitability in a turbulent environment.

Last week, Co-operative Bank, Kenya’s third largest lender by assets, said it would part ways with 34 of its managers in a bid to cut its top-heavy structure. MD Gideon Muriuki said this was meant to achieve a leaner and flatter structure particularly in the management cadre, a feat that should help the bank hit its $119 million profit before tax target for 2011.

KCB, Kenya’s largest bank by assets is currently executing one of the biggest corporate reorganisations in the recent history of the banking sector following recommendations by international consultancy firm McKinsey and Company, to help slash the bank’s operational expenses. The restructuring, announced on May 17 has so far seen 10 senior executives exit the bank as the lender cut its executive committee to seven members from 22 and scrapped the positions of deputy CEO’s, director public affairs and communications, and the divisional director - special projects.
continue reading... (http://www.theeastafrican.co.ke/business/-/2560/1179018/-/bs0h4tz/-/index.html)

Retailers increase beer prices to reflect tax rise in Budget

Retailers have increased beer prices by between Sh10 and Sh15 a bottle to reflect the new uniform tax for all brands.

A casual survey in some bars within the CBD revealed East African Breweries Ltd’s (EABL) non-malt Allsops and Citizen consumed by low-income groups have increased by around Sh10 to retail at about Sh90 and Sh80 respectively. Pilsner, the only non-malt upmarket brand has gone up by Sh15 to an average of Sh170.

Last week Finance minister Uhuru Kenyatta imposed a fixed excise tax of Sh70 or 40 per cent a litre, raising malted beer tax by Sh5 (or Sh2.50 a bottle) from previous Sh65 and that for non-malt beer by Sh15 from Sh55.

Kenya’s top beer maker EABL immediately warned of an inevitable “dramatic” increase in the prices of beer.
continue reading (http://www.businessdailyafrica.com/Retailers+increase+beer+prices+to+reflect+tax+rise+in+Budget/-/539552/1180948/-/f68b7bz/-/index.html)..

Uhuru’s Budget gets business leaders backing

Finance minister Uhuru Kenyatta’s 2011/12 Budget got critical business leaders’ backing for its potential to stimulate growth, cut transactional costs and reduce operational risks.

Kenya’s executives gave their verdict even as they warned that poor governance remains the biggest obstacle to improvement of the business environment.

The executives expressed their views in an electronic survey conducted during a workshop held by Deloitte Consulting East Africa a Nairobi hotel, yesterday. The seminar was attended by more than 220 representatives of different organisations in East Africa.
continue reading.. (http://www.businessdailyafrica.com/Corporate+News/Uhuru+Budget+gets+business+leaders+backing/-/539550/1180920/-/50tlh3z/-/index.html)

CBA’s interest rate raise signals climb in cost of loans
The Commercial Bank of Africa (CBA) has raised its interest charge on loans by 1.5 per cent, signalling a possible surge in the cost of debt as other lenders adjust their base rates to safeguard their profit margins.

The bank has raised the minimum lending rate on shilling denominated loans to 14.5 per cent from 13 per cent effective from July 11.

The revision puts CBA’s lending rate above the industry average of 13.92 per cent according to the Central Bank of Kenya (CBK’s) data.
continue.. (http://www.businessdailyafrica.com/CBA+interest+rate+raise+signals+climb+in+cost+of+loans/-/539552/1181532/-/nfhuws/-/index.html)

Cut mortgage rates, Kibaki urges banks
President Kibaki has asked mortgage lenders to reduce the cost of borrowing to enable more Kenyans to own homes.

“Many of our people still consider the option of mortgage financing as expensive, risky and a preserve of the rich,” said the President.

“We must as a continent develop mechanisms that will make property financing affordable to the majority of our middle and low income population,” he said.
continue... (http://www.nation.co.ke/business/news/-/1006/1181638/-/50cu47z/-/index.html)

Remittances from Kenyans abroad grow by 33 per cent
Remittances from the diaspora has hit an eight-year high of Sh22.7 billion ($266.5 million) over the four months of the year as incomes stabilised and as Kenyans living abroad sent more home to help families in the harsh economy.

According to the Central Bank of Kenya (CBK), diaspora remittances jumped by 33 per cent to Sh5.95 billion ($70.1 million) in April compared to Sh4.5 billion ($52.68 million) in the same month last year. Total remittances over the first four months of 2010 stood at Sh16.7 billion ($196.5 million) compared to Sh16 billion ($196.4 million) in 2009.

“The increase in remittances reflects economic recovery in source markets, and a favourable domestic economic environment,” said Charles Koori, director research department at the CBK.
BusinessDailyAfrica... (http://www.businessdailyafrica.com/Remittances+from+Kenyans+abroad+grow+by+33+per+cent/-/539552/1189282/-/e00cnlz/-/index.html)

Inflation to hit 23 per cent next year

Kenya’s economic outlook remains bleak, with latest projections pointing to more belt-tightening as the cost of living soars and economic growth slows down.

Economists from PineBridge Investments say the inflation rate, the index that measures the increase in commodity prices, would peak at 22.9 early next year, eroding the purchasing power of money and thus pushing more people into poverty.

“We, however, expect the food situation to ease in the fourth quarter with anticipated harvests which could slow down the pace of inflation,” said Mr Peter Wachira, a senior investment manager at PineBridge. “Inflation is likely to remain in double-digit level territory in the second half of 2011 and drop to single digit levels in the second half of 2012.”

High inflation, occasioned by rising food and fuel prices, poses a major challenge to economic growth which, according to PineBridge, could slow down to 4.6 per cent this year, from 5.6 per cent in 2010. This, coupled with a weak shilling, is also expected to hurt profit margins for manufacturing and consumer-goods companies.

“The low income segments of the society are hardest hit by inflation and we do not see this easing any time soon,” added Mr Wachira. In June, the inflation rate rose to 14.95 per cent, driven by high food and fuel prices, data from the Kenya National Bureau of Statistics (KNBS) show.

A number of analysts have projected the inflation rate to peak at 20 per cent this year, although the Central Bank of Kenya has downplayed these fears. “We do not think it will be possible to achieve anything above five per cent (in economic growth).

Compared to last year, the economic fundamentals are facing serious challenges today,” noted Mr Wachira at a media briefing on Thursday.

The weakening Kenya shilling has worsened the situation. This depreciation has led to an increase in the cost of imported goods. Pressure is also mounting on borrowers with the recent move by some commercial banks to raise lending rates.

“Higher commercial lending rates would generally mean a tightening credit cycle for banks as well as a rise in non-performing loans as borrowers are unable to service their debts,” said Ms Dipna Shah, an investment analyst with PineBridge.

BusinessDailyAfrica (http://www.nation.co.ke/business/news/Inflation+to+hit+23+per+cent+next+year+/-/1006/1196678/-/t8gff8/-/index.html)
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why does Kenya seem like it's in the worst shape economically out of all of the EAC countries?:ohno: Late last year things looked good, amazing how much can change in 6 months time.

http://www.businessdailyafrica.com/Corporate+News/KU+launches+Sh50m+business+incubator/-/539550/1196384/-/12nc1d4z/-/index.html

IMF says Kenya's economy will grow at 5.7 per cent
The country's economy is expected to grow 5.7 per cent in fiscal year ending June next year, from 5.4 per cent in the 2010/2011 financial year, while headline inflation will be within the 8-9 per cent range by end of the year, the International Monetary Fund has said.

The projection is in line with Government’s own forecast contained in the finance minister’s Budget speech last year.

“A rebound in regional and global demand supports tourism, and a dynamic private sector has spurred investment and an acceleration of growth across all non-agricultural sectors,” the IMF said late on Thursday.
Standard Media (http://www.standardmedia.co.ke/InsidePage.php?id=2000038587&cid=14&j=&m=&d=)

IMF says Kenya's economy will grow at 5.7 per cent

Standard Media (http://www.standardmedia.co.ke/InsidePage.php?id=2000038587&cid=14&j=&m=&d=)

I hate that this inadequate pace of growth is never the focus of our politicians.Instead you get the never ending electioneering of who's allied to who and who's best positioned to succeed who.
If we positioned our economy with the same zeal for growth as we position ourselves for succession then maybe 8=10% growth would be achievable.

I hate that this inadequate pace of growth is never the focus of our politicians.Instead you get the never ending electioneering of who's allied to who and who's best positioned to succeed who.
If we positioned our economy with the same zeal for growth as we position ourselves for succession then maybe 8=10% growth would be achievable.

It's no use trying to scape goat the politicians this time round (I still hate them with a passion).

Weather conditions are not good this year. Kenya's economic performance is anchored in agriculture. If that doesn't do well, don't expect the economy to expand by double digits. That and a number of various other factors, especially those affecting consumer spending hence limiting purchasing power across the board.

What I blame the politicians for is the lack of drive to enact and implement policies that would drive agriculture production to new heights. The land bill comes to mind.

Kenya attracts another Chinese machinery firm
The construction boom has attracted another Chinese firm in Kenya.
XCMG Construction Machinery Co Ltd yesterday launched its African offices in Nairobi to cash in on the lucrative returns.

“The East African region has been recording growth in infrastructure projects, which are key in supporting its economic boom. We will be a part of this growth in terms of supply of our machinery,” said Mr Qi Hong, general manager of the firm in charge of the African market.
Daily Nation (http://www.nation.co.ke/business/news/Kenya+attracts+another+Chinese+machinery+firm/-/1006/1199844/-/srx9ji/-/index.html)

Hyundai eyes higher sales in car leasing deal with local firm

http://www.businessdailyafrica.com/Corporate+News/Hyundai+eyes+higher+sales+in+car+leasing+deal+with+local+firm/-/539550/1201256/-/kyv40x/-/index.html

South Korean automaker Hyundai Motors has partnered with a Kenyan leasing company—Vehicle and Equipment Leasing Limited (Vaell)— as it seeks to grow sales in East Africa and tap into the sector that is seen as the new revenue stream.

Hyundai Motors East Africa, a five months old subsidiary company, announced the deal as it marked the sale of its 70th unit since starting operations in Kenya.

“Our study of emerging trends in the East Africa auto market found that leasing is the fastest growing new industry. As an aggressive new-car seller, we see it as an enabler and are happy to announce partnership with local pioneer leasing company, Vaell,” said Sam Lee, the regional head of marketing.

Hyundai models were introduced in East Africa by an Indian company in the 1980s, but the company went under in mid 1990s amid complaints of poor technical support from customers. This new company is not linked to the older company.

Paul Njeru, the CEO at Vaell, said the leasing partnership will be strategic for Hyundai, as the model makes a comeback to the East African market, and could potentially help the company’s new car sales rise by up 20 per cent.

According to Kenya Motor Industry, the sector sold 5, 930 news cars in the formal market in six months compared to 5, 501 in the same period last year, a pointer that the sector would take longer to surpass the 13, 135 cars it sold in 2008.

The comeback of Hyundai model is a signal that the new personal car market is growing at a faster pace, attracting new entrants.

Shun loans

“Hyundai models are the best-seller in Europe and second best selling in SUVs and saloons in Africa, we expect good performance by these models,” Mr Njeru said.

Vaell leases and manages cars and machinery to highly credit-worth companies that shun heavy loans in buying movable assets and others that want to keep their credit lines open to allow access of funds for other projects.

Mr Njeru said Vaell which has over 10 years leasing experience presently manages 400 to 500 units annually.

“We expect Hyundai model’s comeback to be boosted by corporate leasing,” he said. Amongst the models Hyundai East Africa is stocking in its showroom in Nairobi include sports utility vehicles (SUVs) like Hyundai Santa Fe, the Hyundai ix35 and the Hyundai Tucson, as well as saloons like the new Elantra and the Accent.

Mr Lee said the company has invested heavily in spare parts to ensure they are easily available to avoid the pitfalls that caused the poor success of Hyundai models before.

“We are investing Sh300 million this year alone in a country wide spare parts distribution and support systems that will go complementary to Vaell’s already established countrywide maintenance centres,” said Mr Lee.

Toyota is the most common car on Kenyan roads owing to availability of spare parts. Toyota Kenya opened the largest marketshare gap between it and rivals in five years, helped by increased demand for personal cars.

Data from KMI shows that Toyota’s marketshare stood at 25 per cent in the six months to June from 24 per cent in December as the stake held by its main competitor General Motors East Africa dropped.

Agencies plan national stamp to promote exports

Kenyan exports will soon start bearing a national mark of identity to make them stand out in an increasingly competitive international market.

The Kenya Bureau of Standards (Kebs), the quality watchdog, and Brand Kenya are leading efforts to put a premium on packaging to ensure local products reach consumers in their original form and quality.

The initiative targets emotional connection with the market and repeat purchases.

Kenyan goods are currently free to leave the country in different formats decided at firm levels, but some foreign bulk buyers repackage them, concealing the Kenyan connection.

“The National Mark of Identity is not a quality benchmark but will only be placed on products that bear at least an S-Mark from Kebs,” said Mrs Grace Onyango, an official at the watchdog body.

End of year

Brand Kenya CEO Mary Kimonye had last May unveiled a sketch of the national mark of identity for review by the private sector and promised to apply it once an agreement with Kebs is signed. The proposed national mark bears the red, green and black colours of the national flag, has the logo “Kenya”, a shield motif and the slogan: “A touch of Kenya”.

Private sector players have called for input from all sectors of the economy before the agencies arrive at the national mark of identity, possibly by the end of the year.

Trade experts see the move to distinguish the country’s products in the international market as one way of promoting Kenyan exports.

The General Manager in charge of Market Development at the Export Promotion Council, Maurice Abuom, said a uniform mark of identity on all Kenyan exports will make his work easier. The move, he said, would help other Kenyan products tap goodwill that top exports such as coffee, tea, horticulture products, cooking fats and dairy produce have built in their niche markets over the years.
[...continued]
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Weak shilling slows down used car market to new low

Kenyans have reduced orders for used cars for the first time in 16 years as rising inflation bites.

Weakening of the shilling has led to further rise in the cost of second hand vehicles thus limiting purchasing power of most buyers.

The Kenya National Bureau of Statistics data show that sale of used cars stood at 17, 577 units in the five months to May compared to 23, 377 sold in the same period a year earlier, reflecting a 24.8 per cent drop.
[...continued]
BusinessDailyAfrica (http://www.businessdailyafrica.com/Corporate+News/Weak+shilling+slows+down+used+car+market+to+new+low/-/539550/1204860/-/7324qbz/-/index.html)

Nairobi, Africa’s new HQ for multinational firms

http://www.theeastafrican.co.ke/news/Nairobi++Africa+new+HQ+for+multinational+firms/-/2558/1206686/-/14hwotk/-/index.html

Nairobi is fast becoming the African home of choice for multinational companies, especially those in the services sector, looking to grow their presence on the continent.

Pfizer, the US-based pharmaceutical company, PricewaterhouseCoopers, and Posterscope, an outdoor advertising firm, have in the past seven days unveiled plans to establish a regional hub, recruit staff and set up shop respectively in Kenya’s capital city last week.

In the past one year, global heavyweights in the service industry such as IBM, Google, PwC, advertising agency WPP, Bharti Airtel, Nokia/Siemens, Huawei, Procter & Gamble, Biersdoff, Barclays and Stanchart have announced plans to either set up regional hubs or transform their local operations to serve sub-Sahara Africa.

Several factors work to the benefit of Kenya and the other East African states too. First, the formation of a Common Market is helping create a strong internal market with a population of 130 million and a middle class estimated at 30 million consumers. With South Sudan, which has a population of 8.4 million, expressing interest in joining the EAC, and Kenya opening up its northern frontier through the Lamu Corridor to serve Ethiopia, which has a population of 84 million, the region now boasts a potentially connected internal market of 240 million people. This is way above the 150 million mark that experts say a country or a bloc needs to be a major world power.

The second factor is the peace dividend that has come with the ending of most of the civil wars in the Great Lakes. This is making the region a safe bet to invest in. The peace dividend has seen homegrown African multinationals such as Ecobank, Stanbic, UBA, MTN, KCB and Equity pursuing a more aggressive expansion strategy in these markets, which are similar to their home markets. Global multinationals too, like Pfizer and IBM, are smelling opportunity in the region.

Pfizer sells mostly antibiotics, cough syrups and anti-fungals. The drugs are finding a ready market as the East African population grows — at an estimated 3.5 per cent in 2011.

“The hub will serve as a legitimate supply system of products, bringing us closer to the market and reducing the total accumulated cost per product,” said country director for Nigeria and the East Africa region Enrico Liggeri when launching Pfizer’s hub last week. Kenya’s healthcare industry has attracted private equity investments that have helped some of the insurance service providers and hospitals expand.

In 2009, IBM opened an office in Nairobi to meet the increased demand from clients in both the private and public sector in East Africa and across the region.

The clincher for IBM, which previously had little interest in sub-Saharan Africa, was winning a multimillion-dollar contract to manage Airtel’s IT infrastructure across 16 African markets. IBM is expected to hire 2,000 workers to serve its continental business. Airtel too wants to have the hub of its African operations in Kenya and is currently planning to put up a headquarters in the city.

Another factor that is acting in the region’s favour is the massive investment that EAC governments have put in to build fibre-optic cables, which has boosted Internet speeds and connection levels.

Unlike in manufacturing – where cheap power, water and raw materials are key – the global services industry thrives on extensive and reliable airline connections, a comfortable but affordable location, fast Internet connections and a deep pool of skilled talent.

Operational centre

This is why international firms are looking to make Nairobi the fulcrum of their continent-wide operations as they race to be part of Africa’s growth story. One of the biggest pluses for Nairobi is its central location on the continent. This hugely favours the national carrier, Kenya Airways.

South African Airways, a key competitor, is disadvantaged by the longer distances it must fly to cover the rest of Africa. Indeed, KQ has a bold, if not overly ambitious, target of flying to every African capital city by 2013. If it hits this target, business executives will find it much easier to reach any part of the continent from Nairobi.

This will mean better revenues for KQ because Africa remains its most lucrative market, where it enjoys healthy margins and little competition. It generated about half of its $953 million revenues in Africa in the financial year ended March 2011.

It also means that the majority of business executives traversing the continent will find their way back to Nairobi, the airline’s main hub. The airline’s expansion has already created a demand for scarce hotel rooms, which according to a report released by Mercer, a human-resource consulting firm, is among the highest in the world. The growing demand for accommodation and conference facilities has encouraged global hotel chains to set up in Nairobi to plug the supply deficit. Rezidor Hotel Group, owners of the Radission brand, are putting up a hotel in Nairobi, joining about 10 other local hotels coming up.

Investigations by The EastAfrican show at least 2,500 new bed capacity will be created in the next year in Nairobi alone.
Kenya is also stepping up its efforts to improve infrastructure, with the ongoing road works, which will make it easier to travel within the capital city. Other infrastructure projects supporting the business environment in Nairobi include the laying of infra-red cables allowing for faster Internet connectivity.

The services industry needs fast Internet connectivity because it allows for Internet banking and easier communication such as web conferencing with the Western world.

Multinational firms like Google are also finding it easier to recruit in Nairobi where many say there is a deep and broad pool of talent from banking to technology.

“It seemed to be the easiest place to get the talent that we needed,” said Joe Mucheru, Google “lead” for sub-Saharan Africa on why the technology company first set up in Kenya before spreading to other Sub-Saharan countries.

Talent is a big concern for the multinationals and the existence of a strong mobile technology applications innovation hub that has produced products like M-Pesa and the various Google map based apps is working in Kenya’s favour.

“We are still way ahead — relative to the rest of sub-Saharan Africa — in terms of graduates being produced every year,” said Gitau Githongo, a Nairobi based economist. “This means that you will find good quality staff if you are setting up here.”

However, not every Kenyan graduate is lucky enough to get a nice job immediately after graduating, and there is evidence that a good number of these potential employees are not well qualified and employers have to spend a lot of money retraining. The level of unemployment for mass unskilled labour remains as high as in other East African nations.

With the power cuts,they might just change their minds.

Deacons secures Dubai baby wear franchise deal

Clothing and household goods retailer Deacons Kenya has secured the franchise to sell children products from Dubai-based Baby Shop stores as it seeks to tap into a swelling middle class with growing disposable incomes.

Deacons will open two shops at Nakumatt Junction and Sarit Centre next month as it seeks to diversify its business further to include baby accessories that have been the domain of informal dealers trading along Nairobi’s Biashara street.

The announcement came as Deacons said that its net earnings grew 73.3 per cent to Sh45.6 million for the six months ended June 2011 on revenues of Sh1 billion from Sh745 million a year earlier.

The entry of the Dubai brand that deals in children clothes, toys and travel products will not only offer parents choice but is set to grow the earnings of Deacons, raising the stakes in the lucrative baby wear market.
BDA (http://www.businessdailyafrica.com/Corporate+News/Deacons+secures+Dubai+baby+wear+franchise+deal/-/539550/1212398/-/rr9b87/-/index.html)

KPA, transporters hit by drop in cargo volumes
BDA (http://www.businessdailyafrica.com/Corporate+News/KPA++transporters+hit+by+drop+in+cargo+volumes/-/539550/1220726/-/item/0/-/11uop43/-/index.html)

Statistics released yesterday by KPA show that the twin effects of expensive fuel and fears of upheaval in the global economy were already taking a toll on the performance of Mombasa port.

Traffic through the port is an indicator of activity in the region’s economies. Apart from Kenya, it handles cargo to and from Uganda, Burundi, Rwanda, South Sudan, eastern Democratic Republic of Congo, and Somalia.

In the period to June, the volume of imports —which account for 85 per cent of the port’s overall activity — declined by 1.5 per cent despite a 15.4 per cent climb in export volumes, reflecting lower demand for import goods. The volume of transit traffic, which accounts for a critical stake in the port’s performance volumes, also declined by 0.5 per cent to 7,545 tonnes over the first half of 2011, further strengthening a trend that could reverse performance gains realised by the port in 2010. “We hope this will improve and enable us at least level performance with what we realised last year,” Mr Ndua said.

Last year, KPA recorded a 12.4 per cent rise in the volume of containers handled at Mombasa port to 695,600 20-foot equivalent container units (TEU) compared to the 618,816 handled the previous year.

The performance brought relief to KPA which had witnessed close to three years of depressed activity because of the global economic crisis and disruptions that followed the 2008 disputed presidential election results.

Good performance

In terms of tonnage, the container terminal handled 18.93 million tonnes in 2010 compared with 19.06 million tonnes the previous year.The good performance in 2010 is however threatened, with KPA urging for more intra-regional trade to help offset the external shocks.

“We should endeavour to boost trade within the region so that we are cushioned from effects of the external markets,” Mr Ndua said.

New motor vehicle sales defy shilling’s fall to rise by 10 pc
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New motor vehicle sales increased by 10.2 per cent in seven months to July, defying market expectations of a fall in demand due to rising prices driven by the weakening Shilling and a production interruption in Japan, a major auto manufacturer.

An estimated 7,169 units were sold in seven months to July, compared to 6,505 units moved in a similar period last year, according to data by the Kenya Motor Industry (KMI).

The increase in sales was lifted by higher uptake of prime movers and heavy truckers, reflecting demand from the vibrant construction sector.

The KMI data shows 321 prime movers were sold in the seven months, just 23 units shy of the total stock sold last year. S ome 363 trucks with capacity of over 20 tonnes have also been sold in the same period.

“We have seen increased sales of our Iveco, MAN and UD trucks,” said Bill Lay, chief executive of CMC Motors.

He said preferential financing terms for new cars by banks was also playing a part.

SMEs get Sh15b shot in the arm
Capital FM (http://www.capitalfm.co.ke/business/2011/08/18/smes-get-sh15b-shot-in-the-arm/)

Players in the Small and Medium Enterprise sector have received a shot in the arm following the launch of a Sh15 billion private equity fund.

The Fusion African Access fund, which is managed by Fusion Capital, will go towards equity financing for SME businesses in the East African region.

Fusion Capital Chief Executive Officer Luke Kinoti said on Thursday that the fund provides a vital link between capital and investment opportunities that exist in the region, in an effort to unlock the full potential of the sector in driving economic growth.

“We are keen on developing the SME sector in Kenya and in the East African region because of its vibrancy and contribution to the economy. We will provide the link they need between capital and places to invest,” Mr Kinoti said.

The SME sector is viewed as a crucial cog in economic growth in Kenya. It contributes about 18 percent of the country’s gross domestic product and employs approximately 75 percent of the workforce.

However, financing challenges have slowed down further growth of businesses in this segment and transition into blue-chip companies.

Mr Kinoti said that as part of the firm’s strategy, they would be providing technical assistance to boost the business growth.

“We realise that even in the best conditions, without dedication and commitment, the true potential of any business will remain unrealised with unmotivated leadership,” he said.

The government has also been making inroads in supporting the small and medium enterprise sector. The Treasury has rolled the first tranche of the Sh3.8 billion SME revolving fund totalling Sh900 million.

The government wanted banks to match every shilling put into the fund with five shillings. SMEs have a high risk profile, which makes it difficult for them to access traditional sources of credit and finance.

Mr Kinoti added that the firm would also be looking to improve corporate governance in SMEs in a bid to make it possible for the business to list on the Nairobi Stock Exchange once the window is formulated.

“Listing at the bourse provides a platform for SMEs to raise capital and an opportunity for us to exit the business,” he said.

Some economists don't think that the gov't shouldn't approve subsidies for runaway commodity prices....

xsAJUEFPN1E

Nakumatt Holdings In Major Expansion Drive

http://www.kenyaradarlive.co.ke/?p=2719

Regional retail outlet Nakumatt Holdings is set to embark on corporate expansion aimed at coverering more African countries.

It is scheduled to open a branch in Tanzania in a few weeks and has confirmed plans to go into other key markets within southern, western and horn of Africa regions as part of its next phase of expansion in the next five years.

In a project code-named Nakumatt 2.0, Nakumatt has engaged in its second growth phase that will focus on continental expansion.

Managing Director Atul Shah, while hosting a dinner for business partners last evening at its headquarters on Nairobi’s Mombasa Road, said this year, Nakumatt has achieved a 15% organic growth and 25% overall growth last year.

Shah projected that the firm will be closing the year with a Ksh408 billion turnover.

“Through a project code-named Nakumatt 2.0, we have now embarked on a feasibility study to facilitate our entry to such countries as Burundi, Zambia, South Sudan, DRC, Nigeria, Botswana and Malawi,” Shah explained.”This year will also be marked by our return to the Nakumatt birth town of Nakuru where we shall be opening our 35th store in November,”Shah

Shah expressed gratitude to their business partners who had supported them, particularly in what he said was recent, eventful years filled with many challenges and opportunities. He particularly thanked leading local banks for worthwhile support.

“The much publicized efforts to bring on board a strategic partner were also shelved and in its place a consortium of four local banks — namely Standard Chartered, Diamond Trust, Bank of Africa and KCB — came on board to support Nakumatt’s growth vision,” he said.”

As esteemed partners and suppliers, we shall most definitely be counting on your support as we also seek to share the Nakumatt cake by listing at the regional stock exchange in due course,” he said.

Nakumatt Holdings, now featuring 33 fast growing retail stores in the East African region, has managed to grow its human resource base to 5,500 people.

Turkish investors have joined the rush for Kenyan infrastructure contracts, setting the stage for a bruising turf war with their Chinese and Japanese rivals.

Turkey’s TAV Group said on Friday it was interested in bidding for airport tenders and had already began talks with several African countries including Kenya.

TAV Holding CEO Sani Sener told Reuters the company was also in talks with Ghana, Tanzania and South Africa officials for infrastructure tenders.

Analysts said the entry of Turkish investors could heighten competition among fast rising Asian economies that are reaching out to tap opportunities in frontier markets to support growth back at home.

Currently, China holds a major stake in the local infrastructure sector with several of its firms undertaking key projects such the expansion of Jomo Kenyatta International Airport (JKIA) and building of the eight-lane Nairobi-Thika superhighway. Chinese firms have won public admiration for their efficiency and speed, which have helped turn around the country’s dilapidated road network.

Chinese firms’ dominance has, however, elicited disquiet among local and foreign contractors as well as some communities living around project sites.

“The Asian firms have substantial concessions granted by their home governments that make them beat us to the jobs,” Moses Muhia of the Kenya Federation of Master Builders said.

“We hope the new National Construction Authority Bill will force partnerships with domestic firms so that we can share the cake.” Only a fortnight ago, Asian rival Japan revealed its intention to challenge China’s growing dominance in Kenya’s infrastructure projects.

Ambassador Toshihisa Nakata said Japanese contractors would step up bids for infrastructure projects.

Higher growth

“The government of Japan and Japanese companies are eager to be part of the infrastructure projects that Kenya is implementing to ensure higher economic growth,” he told a forum attended by President Kibaki .

China’s growing presence in Kenya since 2004 was triggered by President Kibaki’s attempt to look East for investments and aid as traditional partners like western Europe and US become more tight-fisted.

Pressed for resources to support its fast rising economy, Turkey is fast taking after China to grow its influence abroad, especially in Africa.





http://www.businessdailyafrica.com/Turkish+investors+join+rush+for+Kenyan+infrastructure+contracts+/-/539552/1226940/-/135302pz/-/index.html

Canadian oil and gas explorer Africa Oil Corp awarded Weatherford International Ltd a contract for a drilling rig for an exploration well it plans to sink in northern Kenya, with its partners, later in the year.

The exploration firm and its joint venture partners hold exploration licences in Kenya, Ethiopia and Somalia’s semi-autonomous Puntland region.

Weatherford, the world’s fourth-largest oilfield services company, will drill the rig at the Ngamia exploration well within Kenya’s Block 10BB, Africa Oil said.

This will boost the search for oil in Kenya after a number of explorers including China National Offshore Oil Corporation (CNOOC) exited dimming the country’s to strike the luctrative commodity.

Interests

“Spudding of the Ngamia well is slated for the fourth quarter of 2011,” it said in a statement late on Thursday.

The company said it had also completed a gross 750 km of 2D seismic data in the Kaisut sub-basin of its Block 9 exploration licence, also in Kenya.

“Newly acquired data is excellent and a number of interesting leads have been identified,” Africa Oil said.

“(Africa Oil) is in a very strong financial position and is extremely excited to commence drilling operations and plans to drill seven to 10 high potential exploration wells in the next 18 months,” Keith Hill, Africa Oil president and chief executive, said, referring to the firm’s East Africa activities.

Earlier in the year, Africa Oil said it planned to drill up to eight exploratory wells in blocks it holds interests in across east Africa, two of which will be in the semi-autonomous Puntland region in Somalia.

The firm also signed a contract for another drilling rig for two exploration wells, which it planned to sink in Africa’s Puntland with it partners.

Gas discoveries in Tanzania, and significant proven oil reserves along the border between Uganda and Congo have encouraged interest in the once largely overlooked region.

In Tanzania, Irish oil and gas explorer Aminex Plc which started in mid-June drilling a well -- the Nyuni-2 on Nyuni Island off the country’s coast -- said on Friday it had reached a depth of 2,495 metres out of a planned 3,325 metres.

China, India replace Britain as Kenya’s top sources of FDI
BDA (http://www.businessdailyafrica.com/China++India+replace+Britain+as+Kenya+s+top+sources+of+FDI+/-/539552/1232240/-/s7u7l3/-/index.html)

Kenya’s sharp turn to the East for business and development financing under the Kibaki government has toppled European countries from their long-held position as the country’s leading sources of foreign investment. (Read: Ten firms bid for Sh5bn road project )

The latest economic data shows that China, South Africa, India and South Korea have risen to stand among the top five sources of foreign direct investment (FDI) for Kenya, knocking off the UK, Germany and the Netherlands who have occupied the space since independence.

The Kenya Investment Authority said the change in FDI pecking order deepened in the past couple of years as the majority of developed countries – under the shockwaves of debt crises – cut back on foreign investment while emerging economies scaled up their search for new business opportunities in frontier markets.

In the first six months of this year, China, South Africa, India and South Korea invested a total of Sh4.4 billion to make four out of five top sources of FDI for Kenya. Kenya Investment Authority data shows that most of the investment went into manufacturing, energy, tourism and construction sectors.

China has become Kenya’s leading source of FDI after it pumped Sh2.5 billion into the economy, seeking to consolidate its new-found economic clout in the country.

The Chinese broke into Kenya’s list of leading FDI sources last year with a total investment of Sh40.2 billion.

Developed economies, including Israel, Canada, Germany and Italy lost clout after each invested less than Sh500 million in Kenya last year.

Kenya’s former coloniser, the UK, recorded the largest decline in FDI flows to Kenya in recent years.

The country’s FDI in Kenya stood at Sh202 million in the first six months of the year, placing it sixth in the FDI table. That ranking represented a major drop from 2009 when it topped Kenya’s FDI table with investments worth Sh19.6 billion.

UK investors seeking local investments

http://www.nation.co.ke/business/news/UK+investors+seeking+local+investments+/-/1006/1232722/-/17f0e8z/-/

A delegation from London is in the country to explore investment and business opportunities.

Led by Michael Bear, the Lord Mayor in the city of London, the group is seeking to invest in sectors such as energy, rail, tourism, travel, and to partner with Nairobi in its pursuit of becoming the regional financial hub.

It is the first such delegation since 1974, an indication of shift in policy as Nairobi increasingly turns east for financial support and business.

“I want you to see the UK and City of London as your partners of choice,” Mr Bear said. The Lord Mayor is an unpaid-non-partisan position, equivalent of cabinet minister.

He heads a business lobby group that advices government on how to keep the UK-based financial services sector competitive.

During his visit he will also share information on the success of the London Stock Exchange (LSE), as LSE is a global financial centre with a number of successes to share with Kenya, with a view of deepening the country’s capital market.

“London has enjoyed competitive advantage in the financial sector over other markets and we are willing to share the information with Kenya,” he said.

Since the coming into power of President Mwai Kibaki, the government has shifted its development partners to the East, with China becoming a favourite.

The move opened the gate for a number of Chinese companies to operate in the country, especially in the construction industry.

China has also increased financial support to Kenya. However, UK remains one of the country’s leading foreign investors.

Mr Bear urged Kenyan companies to think of turning to London when in need of capital as LSE “offers many different ways for businesses to raise capital at different stages in a business’s growth cycle.”

Treasury permanent secretary, Joseph Kinyua, said growth potential in the country is promising, adding that the government will support investors wishing to invest in Kenya.

Toyota Kenya set to unveil new pickups

http://www.nairobistar.com/business/local/39595-toyota-kenya-to-unveil-new-pickups

Toyota Kenya will be the first country in Africa to introduce the new look Fortuner and Hilux models. The two models will be unveiled during the Total Motor Show set for this weekend at the KICC. The company said the two models contain striking changes to the interior and exterior designs while taking into consideration specifications that match the requests of each region. “Our engineers did extensive research into different regions around the world to get a true sense of how the vehicles are used in the locale , to ascertain what is essential for the local best and to implement their findings in the model development” said Toyota Kenya General Manager Anthony Percival.The models are projected to increase Toyota’s sales by 30%.

UK investors seeking local investments

http://www.nation.co.ke/business/news/UK+investors+seeking+local+investments+/-/1006/1232722/-/17f0e8z/-/

A delegation from London is in the country to explore investment and business opportunities.

Led by Michael Bear, the Lord Mayor in the city of London, the group is seeking to invest in sectors such as energy, rail, tourism, travel, and to partner with Nairobi in its pursuit of becoming the regional financial hub.

It is the first such delegation since 1974, an indication of shift in policy as Nairobi increasingly turns east for financial support and business.

“I want you to see the UK and City of London as your partners of choice,” Mr Bear said. The Lord Mayor is an unpaid-non-partisan position, equivalent of cabinet minister.

He heads a business lobby group that advices government on how to keep the UK-based financial services sector competitive.

During his visit he will also share information on the success of the London Stock Exchange (LSE), as LSE is a global financial centre with a number of successes to share with Kenya, with a view of deepening the country’s capital market.

“London has enjoyed competitive advantage in the financial sector over other markets and we are willing to share the information with Kenya,” he said.

Since the coming into power of President Mwai Kibaki, the government has shifted its development partners to the East, with China becoming a favourite.

The move opened the gate for a number of Chinese companies to operate in the country, especially in the construction industry.

China has also increased financial support to Kenya. However, UK remains one of the country’s leading foreign investors.

Mr Bear urged Kenyan companies to think of turning to London when in need of capital as LSE “offers many different ways for businesses to raise capital at different stages in a business’s growth cycle.”

Treasury permanent secretary, Joseph Kinyua, said growth potential in the country is promising, adding that the government will support investors wishing to invest in Kenya.

^^

Btw, the mayor of London was born in Kenya. I guess he might have some sentimental attachment to the country. :)

Uchumi set to open 17 stores across region
Nation
(http://www.nation.co.ke/business/news/Uchumi+set+to+open+17+stores+across+region/-/1006/1236332/-/12esetv/-/index.html)
Uchumi Supermarkets is back on an expansion drive, as it seeks to reclaim leadership position within the retail chain store category.

This will see it almost double its branch network in Kenya and Uganda, with plans to open at least 17 branches across the region.

Ten branches are already complete and ready for opening. The board has also given approval for another seven branches to be opened within the financial year.

The supermarket chain has 18 branches in Kenya, two in Uganda and one in Tanzania.

According to chief executive officer, Mr Jonathan Ciano, the company is leveraging on these new branches to meet growing demands.

“What we are doing is scouting for ideal areas, identifying the right locations and making our presence to meet the demands of shoppers in those areas,” Mr Ciano told journalists at an investor briefing in Nairobi, Wednesday.

A poorly executed expansion drive saw the chain fall into receivership, unable to pay its debts in May 2006.

It also reported a Sh1.2 billion loss and Sh2 billion debt. However, the current management turned around the company and was recently readmitted at the Nairobi Stock Exchange.

The supermarket chain reported 18 per cent growth in profit before tax in the year ended June 2011, pushed by an increase in customer numbers.

The profits stood at Sh514 million, compared to Sh433 million, which it recorded in a similar period in 2010.

In Kenya, the new branches are planned for Kisii, Kisumu and Rongai.

Del Monte has announced a Sh1.7 billion investment plan to boost its juice plant and protect its market share against competitors. (Read: Fruit farmers gain as firms battle for juice market (http://www.businessdailyafrica.com/Corporate+News/Fruit+farmers+gain+as+firms+battle+for+juice+market/-/539550/1209596/-/d782g6z/-/index.html))

The Thika-based beverage giant says the investment — which would be spread over three years — would boost its fruit plantation, production capacity and marketing in an effort to get a larger foothold of the regional market.

Coca-Cola, a soft drink manufacturer, recently kicked off a multi-billion shilling expansion plan through the upgrade of its Beverage Services Kenya subsidiary hoping to capture the health-conscious juice consumers in East Africa, a market that Del Monte has dominated over the years. (Read: Juice plant adds fizz to Coca-Cola expansion plans (http://www.businessdailyafrica.com/Corporate+News/Juice+plant+adds+fizz+to+Coca+Cola+expansion+plans/-/539550/1144742/-/nxvakcz/-/index.html))

The increased activity in Kenya’s juice market would not only result in a vicious war at retail outlets of the ready-to-drink juice market segment but offer fruit farmers a steady market for their produce.

Fresh Delmonte vice-president Linda Conway said the new investment would help grow and defend the juice maker’s market share in the regions as well as boost its product range.

“Our aim is to continue strengthening Del Monte’s position is sub-Saharan Africa through product innovation,” said Ms Conway, adding that the multinational would use Kenya as its launch pad for Indian Ocean islands as well as west, east and southern Africa markets.

The firm has signed an 18-year land lease for 1,000 hectares in Matungulu District to grow pineapples to boost supply of raw materials. The firm, which has a 13,500-acre plantation in Thika it has operated for the past 60 years, expects to harvest 70,000 tonnes of pineapples in the first cycle (3-4 years) of the expansion plan.




Coca-Cola is employing the same model to attack the eastern Africa market by contracting farmers in the Rift Valley, eastern and central regions to supply its juice processing plant with fruits, especially mangoes and passions. Its deep entry in the juice market, which it currently serves, through the Minute Maid brand, will spark fresh realignment in the juice market.

Market estimates puts Minute Maid’s stake in Kenya’s juice market at about 11 per cent with Del Monte controlling a significant share.
Kenya’s growing middle-class provides a ready market for juice as it increasingly seeks alternative to carbonated soft drinks, in which Coca-Cola enjoys a near monopoly.

But its grip on the soda market is coming under renewed attack with the return of its global rival Pepsi Cola and the global beverage giant is diversifying its regional business with a focus on the juice market.
http://www.businessdailyafrica.com/Corporate+News/Del+Monte+in+Sh1+7bn+plan+to+protect+marketshare/-/539550/1236502/-/b5vwulz/-/index.html

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Sisal farming in Taita Taveta County (http://www.nation.co.ke/Counties/Pioneers+leave+sector+hanging+by+a+thread++/-/1107872/1165108/-/9p5kd8z/-/index.html) is set to get a Sh20 billion boost from investment by a German firm, local consultants of the firm have said.

Mr Githende Gachanja, managing partner at Institution Development and Management (IDM) Services, said the firm has already identified a 100,000 acre piece of land in for purchase and negotiations are ongoing.

“The project is expected to start towards the end of next year after everything is in place,” Mr Gachanja said, adding that the firm will officially announce the plans once the land acquisition deal is sealed.

The investment will see establishment of a sisal plantation and a processing factory, providing jobs to more than 2,000 people, he said.

He said there is a growing interest in sisal farming at the coast with several foreign companies expressing an interest in setting up factories in the region.

“Some of those interested are Chinese companies, while a Saudi Arabia consortium has asked us to look for land in Kilifi and Tana River counties,” he added.
The interest by foreign firms comes at a time when the government has announced plans to inject value addition, new husbandry techniques and clear marketing structures to renew small-scale farmers’ interest in sisal farming.
http://www.nation.co.ke/business/news/Sisal+farming+set+to+get+Sh20+billion+boost+/-/1006/1238432/-/10wue3kz/-/index.html

Kenya Airways (KQ) expects to spend more than Sh270 billion ($3 billion) in the next five years to finance its expansion plans, the company told investment analysts last week.
The national carrier plans to raise the money through a rights issue, retained earnings and debt.The company intends to double its fleet, currently at 31 planes, by 2015 and diversify into cargo business.
Kenya Airways held the investor briefing as part of preparations for the planned rights issue, which is, however yet, to get the Capital Markets Authority approval.

Mr Eric Musau, an analyst with Standard Investment Bank who attended the briefing, said the airline indicated that it will spend up to $5 billion (Sh450 billion) in the next 10 years.
The heavy capital expenditure could see KQ's dividend pay reduce or remain constant.
"They have been quite conservative in their dividend payout and I would expect the same to continue, dependant on revenue growth, so as to meet the expansion plans in a balance that will not over-commit them nor dilute the shareholders value," said Mr Musau. Last year, the company paid out a dividend of Sh693 million equivalent to Sh1.50 for every share, out of net earnings of Sh3.5 billion.
The company intends to use operational revenues to finance half of its plans as it balances between expansion and protecting the shareholders' worth by avoiding share dilution.
KQ has already confirmed that it intends to carry out a rights issue but is yet to disclose details of the offer as it awaits approval from the regulator. A report earlier this year by Kestrel Capital had stated that the company intended to raise Sh22 billion.
The company is expected to build up its balance sheet by retaining more of its earnings, a strategy that would also strengthen its borrowing capacity.
KQ had Sh20 billion held as retained earnings last year.


The carrier has been expanding its routes, with the most recent being to the Middle Eastern city of Jeddah in The Kingdom of Saudi Arabia which starts on October 18. However, airport infrastructure has limited the company's growth plans. The ongoing expansion of Jomo Kenyatta International Airport (JKIA) in Nairobi and building of Isiolo international airport are expected to add impetus to KQ's growth strategy.
The company has ordered 26 jets from Brazilian manufacturer, Embraer, and its first cargo plane is expected in three weeks. It now seeks to diversify from passenger income, with freight services expected to contribute 20 per cent of its revenue in the long-term.
"They have frequently said that demand for their services outweighs their supply and so the expansion strategy is good, especially with the expected completion of JKIA terminal four," said Johnson Nderi, an analyst with Suntra Investment Bank.
http://allafrica.com/stories/201109190014.html

They flock from America's top universities, grad programs and consulting firms to the pulsing heart of a new Africa. From glass towers and Ivied halls to cramped garages, cooperative work hubs, and overflowing makeshift live/workspaces, these young, talented and driven entrepreneurs are riding a new wave of social enterprises, crash landing into a rapidly rising east African capital.

The most populated city in east Africa, and one of the fastest growing, Nairobi, Kenya has become an extremely strategic regional center for business, banking, development, and politics. A destination hosting a diverse mingling of foreign inhabitants, from emissaries, ambassadors and development agencies to mobile innovators, technologists and consultants, Nairobi has just recently to crept into the international market as a city to keep an eye on.

Yet economic potential and business prospects are only part of the reason why Nairobi's become a bustling hub for young social innovators and social entrepreneurs from Brown, Harvard, Stanford, and MIT, who give up jobs at McKinsey, Bain, and Goldman Sachs to be here. So what is it?

It's what I've come to dub as the four P's -- Potential, Poverty, Politics, and Parties -- a unique blend that draws a distinct class of Gen-y ers looking to make money, make a name for themselves, and make a difference.

Let's start with potential. At a dinner recently, I asked a few folks what their favorite part of living in here was. Hands down, they all said, it's the people. Not just their fellow expatriates, who seem to keep coming in droves and reinforcing a self-fulfilling prophecy of the city being a great emerging capital for bright young social entrepreneurs, but the young Kenyans. They feel that Nairobi has a certain buzz, the collective revving of engines by a generation of Kenyans craving something different.

The country's slowly improving education system is churning out a new generation of university graduates who are aggressive, ambitious, and hungry for a better future. They are fiercely proud of Nairobi, and feel they hold the responsibility for its economic future and its emergence in the global spotlight in their hands. They no longer graduate university with hopes of ending up at the once best paying jobs in town -- UN agencies and the scores of other well financed NGOs. Instead they dream of starting their own business, or finding work in an increasingly robust private sector full of entrepreneurial ideas. The same cannot be said in most of Kenya's neighboring countries.

Plenty of the young Kenyan diasporas, after living, studying, and working abroad in places like the UK, Australia, and the U.S., have returned home -- and not just to crash on mom and dad's couch for awhile (although free rent is a certainly a huge plus). They want to be a part of Kenya's movement -- in art, film, technology, finance -- and they spot Nairobi as the place to make it happen. It has a pulse. It has potential. And people want in.

Many claim that MPesa, the mobile money transfer service that launched in Kenya and captured the world's attention, contributed to putting Nairobi on the map, and this is certainly true. But so did budding microfinance institutions, the widespread need for nonprofits due to government failures and regional environmental crises (like the recent drought), and -- I'm going out on a limb on this one -- a half-Kenyan President of the United States of America.

The mobile phone revolution, from services and applications like MPesa, Ushashidi, M-Farm, M-Shop, and MedAfrica, have unquestionably ignited a newfound interest from foreign investors in the tech sector, and international companies are beginning to put Nairobi on their map as an emerging market waiting to be served. As the middle class rises, companies are eyeing tremendous potential and opportunity for Kenya, as well as a base of operations to capture the rest of east Africa when those economies rise.

Lending to all of this is an ease of communication you don't find in other parts of east Africa. Kenya's colonial history left plenty of negatives I won't dive into, but one positive outcome, at least for attracting international business, was a wealth of fluent English speakers, and English and Kiswahili both being official languages integrated into the education system.

Next up? Poverty. The business of poverty is, sadly, still booming in Kenya. Despite decades of nonprofit (and, on occasion, government) interventions working to make life more livable in places like the Kibera slums (one of Africa's largest slums) there's little to show for it all. Even so, nonprofits continue to spring up in hope of "saving the day," and social enterprises are emerging to create more tech-based sustainable, even profitable, solutions to the health, water, sanitation, energy, financial and housing challenges Kenya's vast poor still face.

Yet for a city that hosts an elusive allure of poverty, alongside the "groundbreaking," "innovative," and [insert buzz word here] solutions to it, it's also still filled with all the modern amenities needed to make expatriates feel right at home (fancy shopping malls, sports clubs, fine scotch, bagels). In fact, most young expats here live exceedingly higher quality lives than they would be in the States, as long as they don't mind occasionally choking on clouds of black smoke pouring from the buses or accidentally falling into a flooded man-eating pothole.

As for politics, well, with three extremely high-ranking government officials splitting their time between The Hague and serving their duties in Parliament, plus endless corruption scandals, it couldn't be a more intriguing political environment to work in. A dash -- okay, a fat dollop -- of corruption makes an everyday activities seem like game of chance, and prepares you to always expect the unexpected -- and more often simply the inconvenient -- in pursuing business. It's challenging, yes, but in a way an exciting learning experience for young Americans eager to build businesses in developing economies.

Lastly, of course, is parties. Booming nightclubs stay open till 7 or 8 a.m., where you can dance to deep global beats with an eclectic mix of Kenyans, Americans, Europeans, and whoever else wanders in. Yet come Monday morning, if you're an American under 30, you'll most likely be trudging around the slums of Kibera, testing out a new technology or service that does this-or-that to help empower residents -- those who really are yearning for a leg up in life and a better tomorrow.

Despite the poverty, unemployment, and the immense infrastructural overhauls needed, or perhaps even in spite of all of it, Nairobi offers a little something for everyone. Especially for that class of fresh Gen-y graduates who seek a delicately fine balance of "doing good," "doing well" and building a robust portfolio of challenging experiences and environments, all the while not sacrificing an entertaining social life.

But, let us not forget, there are plenty of young Kenyans who are migrating to, back to, and coming up in, Nairobi, for the same reasons. Though they have a bit more personal, and frankly patriotic motive to be here. It's their country, their capital, and they'll be damned if a bunch of foreigners are the ones who take credit for making things happen.

http://www.huffingtonpost.com/jonathan-kalan/potential-poverty-politic_b_969338.html?ref=fb&src=sp&comm_ref=false

^^^ Interesting!Brain gain is what we need more!:cheers:

Grain handler instals Sh240m unloading equipment at port
Nation
(http://www.nation.co.ke/business/news/Grain+handler+instals+Sh240m+unloading+equipment+at+port/-/1006/1242262/-/6momf0z/-/index.html)
The capacity of Mombasa Port to off-load grain from ships received a major boost with the installation of new equipment by Grain Bulk Handlers Limited.

The Portalino ship unloader purchased and installed at a cost of $3 million (Sh240 million) has a grain discharge rate of 300 metric tonnes per hour.

This raises the terminal’s grain discharge capacity to 1,000 metric tonnes per hour, enabling it to empty vessels carrying grain for local and regional markets at a faster rate.

“The unloader will increase discharge capacity. It will allow simultaneous handling of two vessels at berths 3 and 4 and faster turn-round of vessels,” GBHL management said.

The firm called the investment a major boost to the services at the port by its terminal which receives bulk cereal imports from around the world on behalf of millers, traders, NGOs and relief agencies in East Africa, South Sudan and Somalia.

The terminal discharges some 9,000 metric tonnes per day.

The firm has 140,500 tonnes of silo capacity for transit and long-term storage of bulk cargo and a further 120,000 tonnes of warehousing capacity for long-term storage of bagged grains.

Depending on client requirements, the cargo is delivered either in bulk or in bags.

Although the terminal currently deals only with imports, the entire system was configured to play the reverse role of a grain export platform.

Conceived idea

According to GBHL chairman Mohamed Jaffer who conceived the idea of the facility in the 1970s, this was to ensure it was not rendered redundant should the country scale up its grain production and have enough to export.

“What you see here can be converted into an export terminal. And I believe this will come to pass because this country has the potential to produce grain that can feed our people and leave more for export,” Mr Jaffer said in a previous interview with the Sunday Nation.

Weak shilling dims economic growth forecast
Standard Media (http://www.standardmedia.co.ke/InsidePage.php?id=2000043369&cid=14&j=&m=&d=)

The African Development Bank (AfDB) has cut the expected economic growth rate for Kenya in 2011 to 3.5 – 4.5 per cent from an earlier forecast of 4.5 – 5.0 per cent, citing high inflation and a volatile shilling exchange rate.


AfDB now joins the growing list of development partners and analysts who have downgraded their growth forecast for the economy that has been weighed down by both domestic and external shocks.

The shilling has fallen through several record lows against the dollar this year and the AfDB expects it to continue sliding towards the Sh110 level per dollar, compounding the problem of rampant inflation.

The bank also expects headline inflation to hit 20 per cent in October, or December, from 16.67 per cent in August.

"When you have those fundamentals behaving the way they are, then definitely you get a hit on GDP growth," Walter Odero said.

^^ The Kenyan Shilling is becoming unstable nowadays.I hope they will act on it and apply favourable monetary policies. It's very risky for investors I guess.

http://www.businessdailyafrica.com/Sh1+5bn+fish+plants+raise+hopes+of+high+returns+for+farmers/-/539444/1243472/-/lkq5w3/-/index.html

Weak currency slows down economic growth to 4.1p.c
Nation (http://www.nation.co.ke/business/news/Weak+currency+slows+down+economic+growth+to+41pc+/-/1006/1245200/-/nxioyd/-/index.html)

The effect of a weak shilling on the economy became clear Thursday, with the release of the September inflation and second-quarter economic growth figures.

The results show that the cost of living hit 17.32 per cent in September 2011, against 3.21 per cent recorded in September 2010, a more than fivefold increase.

Economic growth slowed down to 4.1 per cent in the second-quarter of 2011, compared to 4.8 per cent realised in the same quarter in 2010.

The Kenya National Bureau of Statistics (KNBS) says this is due to a combination of a weak shilling, high food and fuel prices.

The rise in the latter two is directly correlated to the weak shilling.

The period under review (second-quarter 2011) was characterised by a turbulent macro-economic environment, mainly driven by rising inflation and exchange rate depreciation, in addition to experiencing less than usual rainfall in most parts of the country,” KNBS says of the slowdown in economic growth.

The country is also coming from an acute shortage of sugar that lasted for most part of the month and resulted in a surge in retail prices, which pushed up the food and non-alcoholic beverages component of the consumer price index (CPI), adding impetus to the overall inflation rate.

“This is a very worrying time for the manufacturing sector, which has seen decreased demand in the last quarter, as Kenyans come face to face with the reality of high prices which have eroded their purchasing power.

Unfortunately, to cushion themselves against increased cost of production, manufacturers have no option but to pass some of the costs to consumers through increased prices,” says Ms Betty Maina, Kenya Association of Manufacturers (KAM) chief executive.

In recent weeks, the Central Bank of Kenya has struggled to stop the shilling’s slide.

On Tuesday, it announced plans to sell Forex directly to major importers, to shore up the depreciating shilling.

break down of growth by sector in Q2

http://www.businessdailyafrica.com/image/view/-/1245298/medRes/298761/-/maxw/600/-/hfid68/-/inflation.jpg

Cost of living to remain high up to next June, say experts
Nation (http://www.nation.co.ke/business/news/Cost+of+living+to+remain+high+up+to+next+June+say+experts/-/1006/1251298/-/6dbans/-/index.html)

It might take up to June next year before consumers can see an improvement in the cost of living, following Wednesday’s move by Central Bank to hike its benchmark rate.

The bank increased its key interest rate by 400 basis points, pushing the Central Bank Rate from 7 per cent to 11 per cent, in the hope of stabilising the shilling and easing the rise in the cost of living.

However, analysts at Pinebridge Investments say inflation will continue going up despite the new interventions, to hit 20.7 per cent in the first-quarter of next year, before cooling off. Inflation is currently at high of 17.32 per cent.

“We expect the current measures to start bearing results in the second-half of next year, when food prices go down after agriculture recovers and other commodity prices are moderated,” says Mr Edward Gitahi, a senior investment manager at Pinebridge.

The tight monetary measures, he added, will stabilise the shilling “but don’t expect it at Sh80 to the dollar any time soon.’’

On Thursday, the shilling showed mixed signals, having strengthened in the morning hours to trade at Sh100.70/101.30 against the dollar, before closing at 102.20/102.50, weaker than Wednesday’s close of Sh101.60/102.00.

Forex traders who are upbeat that the shilling will cross below the 100 mark, however, say importers will have to wait longer for the impact of CBK’s move to trickle into the market.

Increasing demand for the dollar to fund Kenya’s growing import bill, has seen the shilling rank as one of the poorest performing currencies in the world this year, having depreciated by up to 26 per cent in value against the dollar.

Kenya’s traditional source of dollars has been agricultural cash crops such as coffee, tea and horticulture. But these have been affected by the drought and other factors that have reduced production.

The drought has also meant that Kenya has to import more of its staple food, maize, which has put pressure on the currency.

The fund managers also joined economists at the African Development Bank (AfDB) to downgrade Kenya’s economic rate forecasts to 3.5 this year up from the 5.6 per cent recorded in 2010.

New Mortgage Package for Low Income Earners

http://allafrica.com/stories/201110110642.html

The scramble for the Kenyan mortgage market last week went a notch higher after Family Bank announced a new package that could open up the sector to the masses.

Under the new product, referred to as "growing home", the bank says it will focus more on borrowers who already own land and will lend between Sh700,000 and Sh1.5 million to this low-income segment.

"We will be giving loans to people whose incomes range from Sh30,000 to 40,000," says the bank's head of mortgage, Mr George Laboso.

The move, which could shake the mortgage market, is a departure from the norm where lenders target high income earners.

The bank's new approach is pegged on an affordability test, which often allows borrowers to obtain much higher mortgages on lesser income.

The bank will continue to offer other mortgage products, including the big ticket commercial homes projects, at a base rate of 15 per cent -- putting it in direct competition with industry's players like KCB, Housing Finance and CFC Bank.

Statistics show that Kenya has an annual housing need of 210,000 units against a supply of 50,000 houses -- figures which the Permanent Secretary in the Ministry of Housing, Mr Tirop Kosgey, say could change soon.

"We will soon do a survey to determine what is being supplied against what demand," he said.

The PS said the initiative by Family Bank will help make mortgage accessible to many Kenyans. He praised the banking sector for its vibrancy, saying it had helped the government in implementing some key policies.

Currently, the average mortgage is for Sh3.2 million paid over 15 years at a rate of 14 per cent. [The interest rates are expected to go up after CBK raised the rate it lends out money to commercial banks by more than 400 basis points last week.]

While introducing the product, the bank's CEO, Mr Peter Munyiri, said the huge expenses involved in building or accessing mortgage had prevented many people from doing so.

"The mainstream customer buys land, gets money and builds the house in phases, hence the invention of growing home mortgage," he said.

The product has various features referred to as brick by brick, owner occupier, construction loans, diaspora mortgages, company schemes, estate development and equity release.

The bank says it has committed Sh9 billion in the project.

This is good news.

Bill to boost small businesses awaits debate in House
BDA (http://www.businessdailyafrica.com/Corporate+News/Bill+to+boost+small+businesses+awaits+debate+in+House+/-/539550/1257062/-/b9y0asz/-/index.html)

A registrar of micro and small enterprises and an authority to regulate them are among the institutions that will be created if Parliament approves a Bill that seeks to protect small businesses.

Firms with annual turnover of below Sh500,000 and employing less than 10 people will be registered as “micro enterprises” while those with an annual turnover of between Sh500,000 and Sh5 million and employing between 10 and 15 people will be classified as “small businesses”.

Also to be set up is a tribunal to handle disputes involving micro enterprises and small businesses.

These are some of the key highlights of the Micro and Small Enterprises (MSE) Bill 2011 fronted by Tetu MP Francis Nyamo to help create an entrepreneurial culture in the country.

In the manufacturing sector, the proposed law confines “micro enterprises” to investment in plant and machinery or the registered capital that does not exceed Sh10 million or Sh5 million for service and farming ventures.

On the other hand, “small enterprises” in the manufacturing sector will be limited to investment in plant and machinery as well as the registered capital of the enterprise that is between Sh10 million and Sh50 million.

Kenyans outshine foreign companies in new investments
BDA (http://www.businessdailyafrica.com/Corporate+News/Kenyans+outshine+foreign+companies+in+new+investments+/-/539550/1257108/-/ambrd7z/-/index.html)

Local firms tripled their participation in new projects over the three months to September as foreign direct investments (FDI) dropped by nearly half, a new survey has shown.

Data from the Kenya Investment Authority (Keninvest) shows that projects registered by domestic investors grew to Sh5.8 billion compared to Sh1.3 billion in the same period last year, opening a huge gap with FDI that attracted Sh2.2 billion—reflecting a 47.6 per cent drop.

Local investors overtook foreign firms as the major source of project finance in 2010, but the gap has opened further in what is set to challenge the policy slant in favour of the latter.

This shift has seen local investors’ share of new investments grow to 72 per cent in the three months to September up from 40 per cent in the same period last year.

KenolKobil hits expansion trail in DRC

http://af.reuters.com/article/investingNews/idAFJOE79G0AO20111017

Kenyan fuel marketer KenolKobil has acquired an oil terminal in the Democratic Republic of Congo in an initial step towards fully fledged operations at the minerals producer, it said on Monday.

Its chairman and managing director, Jacob Segman, said this month it is expanding along the east African coast in the hope of becoming a takeover target for an Asian or Middle Eastern firm.

"The acquisition of the terminal in Lubumbashi ... will provide a stepping stone for the company to venture into the bigger retail and mining markets of DRC," the firm said in a statement.

"DRC, and Lubumbashi in particular, is an exciting market rich in large-scale mining activities that require huge quantities of petroleum products."

With a capacity of 4,000 metric tonnes and set on a two-acre piece of land, the terminal features a two-storey office block and fully functional loading system, KenolKobil said.

The terminal was purchased from World Oil Congo SPRL, KenolKobil added in the statement, without disclosing the value of the transaction.

KenolKobil operates in Uganda, Tanzania, Ethiopia, Rwanda and other countries in Africa. Its shares traded down 1.52 percent on Monday at 9.70 shillings per share.

http://img560.imageshack.us/img560/2022/chineseinvestment.png

Kenyans abroad sent home Sh8.5 billion in September
Standard Media (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000046446&cid=14&)

Remittances from Kenyans abroad hit new record in September with inflows amounting to $84.9 million (Sh8.5 billion), which was 40 per cent higher than the level during the same period last year.

The figure was the highest monthly remittances received so far this year and since Central Bank of Kenya started keeping a record of transfer of the funds in 2004, when it stood at $33.2 million (Sh3.3 billion) in July.

CBK’s Director Research Department, Charles Koori, said monthly inflows have so far remained strong this year, noting that September remittances were beyond the $79.6 million (Sh8 billion) recorded in August.

In the first half of this year, he said, remittance inflows was $406.5 million (Sh4 billion), and were 35.4 per cent above $300.2 million (Sh3 billion) recorded over a similar period last year.

The average flow in the first half of this year rose to $68 million (Sh0.7 billion) from $50 million (Sh0.5 billion) in a similar period last year.

He said the 12-month cumulative average also shows that remittance flows have kept pace sustaining an upward trend from the second half of last year.

Koori observed that the source markets for remittances have on average maintained the same shares with North America contributing 49 per cent and Europe 28 per cent of total remittances in September, compared with 52 per cent and 26 per cent in August.

CBK conducts a survey on remittance inflows every month from the formal channels that include commercial banks and other permitted international remittances service providers.

Typically, Kenyans living abroad send money home to help their families and for investment in various sectors, including real estate.

Belgian construction firm to set up shop in Kenya
Posted by Hellen Wangechi on October 12, 2011 in Construction News | 0 Comment





Piron Coralie,CEO Thomas & Piron Grands Lacs. Photo/IGIHE Ltd
Thomas & Piron Grands Lacs, the Rwandan unit of Thomas & Piron, a Belgian construction firm, is expanding to Kenya in a bid to tap into the country’s lucrative construction sector, East African Business Week has reported.

The newspaper quoted Piron Coralie, the firm’s chief executive as saying: “We are expanding to Uganda and Kenya; we took the decision last year and all of this year we’ve been working on it and we hope to start activities next year.”

Ms Coralie said Thomas & Piron Grands Lacs seeks to enter the Kenyan market as a developer and a contractor.



“We are planning to develop and construct our own projects in various parts of Kenya,” said Ms Coralie, adding that her company seeks to enter Uganda through public tenders.

The company plans to spend €1 million (Sh135 million) in equity and partner work with Kenyan lenders to finance its projects in the real estate sector.

Kenya, whose population is about 40 million, has an attractive construction sector with an annual demand of about 200,000 housing units against a supply of 35,000 units a year.

AG backs Treasury’s move against sale of land to Airtel
BDA (http://www.businessdailyafrica.com/Corporate+News/AG+backs+Treasurys+move+against+sale+of+land+to+Airtel+/-/539550/1276496/-/1470ylw/-/index.html)

Telecoms service provider Bharti Airtel’s bid to acquire land in Nairobi for its Africa headquarters suffered another setback last Wednesday after the Attorney-General advised against non-competitive sale of the property to the Indian firm.
In a legal opinion offered at the request of Postmaster-General Hussein Ali, Githu Muigai, the Attorney General (AG), supported the anti-graft watchdog, KACC and the procurement authority in insisting that sale of the prime land belonging to the Postal Corporation of Kenya be done through competitive tendering as required by law.

The AG’s advice against direct sale of the land to the firm that has the backing of President Kibaki and Prime Minister Raila Odinga sets a precedent in the executive arm of government and a clear signal to foreign investors seeking to set base in Kenya that there is no longer room for special treatment in such matters.

Prof Muigai’s advice came as it emerged that the Treasury had earlier given its support to the direct sale before changing its view to back open tendering.

“We are, therefore, of the considered view that in the interest of fair competition, promotion of integrity, transparency and accountability, the land in question should be disposed of in accordance with the provisions of the Public Procurement and Disposals Act,” Prof Githu said in the letter to Maj Gen (rtd) Ali copied to Treasury permanent secretary Joseph Kinyua.

30 countries expected to participate in KITE
Capital FM Business (http://www.capitalfm.co.ke/business/2011/11/30-countries-expected-to-participate-in-kite/)

More than 30 countries are expected to participate in the Kenya International Trade Exhibition (KITE) to be held in the country from November 26 – 28 at the Kenyatta International Conference Centre.

With the economic prospects in the market, international participation in the fair is higher by 25 percent this year and will involve manufacturers and exporters and about 5,000 products will be showcased.

Products to be exhibited include food, hotel and Agricultural Supplies, IT, telecom and electronic products, medical and healthcare products, plastic, printing and packaging items as well as consumer products.

Heineken sparks beer wars with Nairobi office
BDA (http://www.businessdailyafrica.com/Corporate+News/Heineken+sparks+beer+wars+with+Nairobi+office/-/539550/1281054/-/p0v9h8z/-/index.html)

Global beverage giant Heineken has opened a regional headquarters in Nairobi to help push its brands in the market, setting the stage for a market share war with East Africa Breweries Limited (EABL) and SABMiller.

The Dutch brewer supplies its Heineken beer in the Kenyan market through local distributor Maxam Ltd, which is associated with businessman Ngugi Kiuna who has held the franchise since 2007.

Heineken, which recently bought breweries in Ethiopia and Rwanda, has now established a regional office in Nairobi that will be headed Koen Morshuis, general manager East Africa — signalling its intention to get a larger share of the East African beer market. This will open a fresh round of beer wars in the region that currently pits South Africa’s SABMiller and Diageo through EABL. “After doing research we saw the results and think it’s time to put people here (Nairobi office) and we shall have a huge marketing push,” Morshuis who moved in Kenya from Vienna where he was Heineken’s marketing manager for central and eastern Europe.

Brewing giant


“This office will look at the East African region which includes Kenya, Tanzania, Uganda, Southern Sudan, Ethiopia, Somalia, Djibouti, Madagascar, Comoros, Seychelles and Eritrea.”

He added that the Dutch brewer unlike its rivals will continue to feed the Kenyan market with beer imported from Europe, adding that the brewing giant will continue to work with Maxam in Kenya.

East African market is increasingly becoming a battle zone between SABMiller and Diageo led EABL as both firm’s proactively race to grow their regional footprint. Already, a vicious battle for market dominance is under way in Uganda between Uganda Breweries, owned 98.2 per cent by EABL, and Nile Breweries, which SABMiller owns 60 per cent. In Tanzania, Diageo through EABL ended a partnership with SABMiller over the running of Tanzania Breweries Limited and bought a majority stake in rival Serengeti Breweries last year.

Fast food chain goes MPESA

http://www.kbc.co.ke/news.asp?nid=73561

Over 65,000 customers of fast food outlets under the Innscor chain can now pay their bills through the globally acclaimed M-pesa service.

This follows the signing of a partnership agreement between the Safaricom owned mobile commerce platform and the fast food chain.

Among the outlets under the Innscor umbrella are Galito's, Pizza Inn, Chicken Inn and Creamy Inn.

The payment system will apply at both the tills at the various outlets and also for home deliveries where customers can order through emails or sms and pay through M-pesa.

Speaking during the signing ceremony at one of Innscor's outlet Thursday, Safaricom General Manager in charge of Financial Services, Betty Mwangi said that M-pesa will continue seeking partnerships to meet the changing needs of its customers.

"We shall continue innovating and entering into strategic partnerships with service providers in our quest to entrench M-pesa as a mobile commerce tool for everyone, "said Ms. Mwangi.

She also said that, Safaricom is committed to making a difference in the lives of Kenyans through M-pesa adding that the partnership was aligned with their strategy of taking M-pesa to the level of more than just a money transfer service.

She revealed that over 700 organizations, both public and private have signed up with the M-pesa, "Pay Bill" functionally that enables their customers to pay their bills using mobile money.

At the same time the MD for Innscorr Kenya Ltd; Morne Deetlefs said that mobile money was a convenient way to pay for food at either their tills or when one wants food delivered to their house.

He also said that Innscor was always in pursuit of ensuring that they make purchasing as convenient as can be adding that they will open new outlets in Ongata Rongai, Kitengela, Donholm and City Mall in Mombasa.

Innscor Kenya Ltd has its outlets spread in more than 11 countries in Africa.

M-Pesa is really shaping things up!By the way, other mobile payment gateways are also accepted, right?I mean Airtel, YU e.t.c

Nakumatt’s Sh250m hyper opens in Nakuru
Nation (http://www.nation.co.ke/business/news/Nakumatts+Sh250m+hyper+opens+in+Nakuru+/-/1006/1291712/-/146hrbb/-/index.html)

Nakumatt Holdings has returned home in Nakuru County with a Christmas gift of Sh250 million modern shopping mall.

The 70,000 square foot shopping floor space has created space for at least 180 new employees mostly from Nakuru town. The firm as employed close to 5,500 employees in the region.

The mall has complete modern facilities and for the first time Nakuru has a building complex with a parking bay that can accommodate 450 vehicles at a go.

“Our investment is geared towards driving our economic prospects of Nakuru as a vibrant urban metropolis.” said Mr Atul.

Hard times for Kenyans as growth slows down to 3.6 pc

http://www.businessdailyafrica.com/image/view/-/1293670/medRes/319193/-/maxw/600/-/rqdklm/-/gdp.jpg
http://www.businessdailyafrica.com/-/539552/1293632/-/5lqd7kz/-/index.html

A sharp increase in food and fuel prices slowed down growth in the third quarter of the year, raising concerns over the weakening economy’s ability to create new jobs and reverse the rapid fall in household incomes.

High oil prices and a record rise in the proportion of diesel-generated electricity power knocked down gross domestic production (GDP) growth to 3.6 per cent between July and September, compared to a 5.7 per cent growth rate in the same period last year.

Experts predicted an even slower growth in the fourth quarter of this year due to the current surge in the cost of borrowing, which has resulted from the move by the Central Bank of Kenya (CBK) to combat inflation.

Hopefully 2012 is better...

Hopefully 2012 is better...

My hopes are on 2013. Growth always slows down in an election year almost without fail.

Aim high for 2013, and by high I mean over 7% growth. By all means it should be possible if the elections run by smoothly.

still, hopefully inflation at least cools next year.

Aim high for 2013, and by high I mean over 7% growth. By all means it should be possible if the elections run by smoothly.

still, hopefully inflation at least cools next year.

During election years, there is usually alot of money floating around. That usually pushes up inflation. Though they are in the process of introducing laws to help solve this problem.

I'm hopeful that if 2012 goes the way I think it will, 2013 will usher in alot of investments that were held back by investors adopting a 'wait and see' attitude.

Two major oil firms (http://www.businessdailyafrica.com/Search+for+oil+gains+impetus+with+the+entry+of+big+drillers/-/539552/1295316/-/1fsgg3z/-/index.html) are set to enter Kenya’s exploration scene, adding excitement to the long search for petroleum which has intensified since the beginning of the year.

Ministry of Energy officials said French oil giant Total and Brazil’s Petrobras will be among the first beneficiaries of the next round of prospecting licence awards early next year.
“We are creating new blocks for big oil firms with the financial muscle and technical capability to prospect,” said Martin Heya, the Commissioner of Petroleum.

Mr Heya said award of a prospecting licence to Total will follow fresh gazettement of seven new blocks early next year. The move marks a significant shift in the potential that global oil prospectors see in Kenya.

“We are working with the Survey of Kenya to speed up the process of re-allocating blocks that have been relinquished by previous prospectors,” he said.

Kenya has no proven oil reserves , but has become an international hotspot for exploration after the recent discoveries of gas in Tanzania and Mozambique and oil in neighbouring Uganda.

Signs that Kenya had appeared in the radar of major oil firms initially emerged in February when the UK listed firm Tullow closed a farm-out deal with Centric Energy for a 50 per cent stake in the latter’s Block 10BA in north-western Kenya.Maybe one day they will actually get something from these explorations, Kenya is not that lucky I must say.;)

Inflation rate drops for first time this year
http://www.nation.co.ke/business/news/Inflation+rate+drops+for+first+time+this+year/-/1006/1296656/-/o9udaqz/-/index.html

The rate of inflation has reduced for the first time this year, raising hopes that the rising cost of living will not spill into next year.

Official data from the Kenya National Bureau of Statistics show that the rate of inflation in December slowed down to 18.93 per cent from 19.72 per cent reported in November, mainly helped by a stronger shilling and reduction in cost of major food items, electricity and fuel.

“The prices of sugar, mangoes, maize flour, maize grain and rice went down by 3.44, 7.11, 1.34, 1.97 and 1.23 per cent, respectively,” read the report in part.

However, the festive season saw the prices of beef with bones, bread, tomatoes, onions and chicken go up by 2.77, 1.82, 2.30, 4.54 and 3.14 per cent, respectively, eating into the gains from other food products.

The economy is doing well!;)

I'm surprised how the central bank governor managed to stabilized the currency fluctuations. It was terrible to see Kshs going up all the way to 106 per $.

Maybe one day they will actually get something from these explorations, Kenya is not that lucky I must say.;)


...there is a challenge in every journey! But challenge (s) shouldn't keep you out of the journey; keep walking. :)

:cheers:

By Patrick Githinji and Ken Kwama

As Kenyans welcome 2012, Financial Journal examines some factors that could shape the economy and consumer spending in the new year.

The stability of the shilling in the past few weeks has given rise to new optimism that the economy, which lost steam in the last quarter of last year could be on the mend.

Inflation is set to ease marginally following a number of positive indicators.

Rains have been good and this has not only raised water levels in dams used for generation of electricity, but has also boosted the country’s food production.

Inter Region Economic Network Director James Shikwati says despite these positive signs, there are signs that the country’s economy is heading for a period of uncertainty.

"There are good signs, but I think 2012 is still rudderless as far as the economy is concerned. A lot will depend on political leadership because this is an election year," says Shikwati.

Early this year, the African Development Bank (AfDB) projected that the economy would grow at 5.3 per cent in the 2011/2012 fiscal year, but the projection has since been downgraded.

The incessant rise in commodity prices and inflation impacted negatively on consumer spending.

The interventions being put in place by the State like stabilising the shilling have started yielding results in the short-term, but as people wait for long-term benefits, ordinary Kenyans will be left to hope politicians don’t mess it up again through bad politics.

Interest rates

In a bid to stabilise the weakening shilling, last year Central Bank of Kenya (CBK) raised its lending rate (Central Bank Rate), a move that resulted in interest rates going up.

An increase in interest rates piled pressure to borrowers, who had borrowed money at a lower rate. It also limited new borrowers from accessing money.

According to Equity Bank Chief Executive Officer, James Mwangi, interest rates will fall by end of June.

"We have analysed the environment and our conclusion is that it is a temporary bump on the road. I’m not surprised that by the end of June, we will see the interest rates back where they were," Mwangi said.

Traders were also betting that CBK is likely to maintain the CBR rate at 18 per cent in the next Monetary Policy Committee meeting on January 11.

Exchange rate

The shilling, whose value is of critical importance to both importers and exporters in the country, has regained more than 20 per cent of its value in the past one month.

The risk of fluctuation in foreign exchange rates and higher prices of imports prompted importers to spend more. This means they passed the higher input costs to consumers through price hikes and in the process, stoked the embers of inflation.

"The country is getting into the new year with very high interest rates. This means that holding the shilling is attractive. This will guarantee stability, but whether the shilling stays stable or not will depend on how the political campaigns are conducted," says Raphael Agung’ Deputy General Manager at Commercial Bank of Africa (CBA).

According to Agung’, the currency market could adversely react to any perceptions of violence or aggravated political risks that come with campaign periods. This means politicians could play a major role in determining the shilling’s direction this year.

Traders forecast the shilling would range between Sh84 and Sh87 to the US dollar this month.

Energy

The strengthening of the shilling means the country will not dig deeper into its pocket as it used to in order to buy fuel. Spending less to import fuel means there is room for downward adjustment of fuel prices.

Although the latest lowering (in December) of fuel prices by the Government have been dismissed as marginal, there is hope of further price reductions in future.

The cost of electricity is also set to fall following the spell of rainfall the country witnessed in the past few weeks. Rising water levels in dams used to generate hydro-electric power means the country will be less reliant on expensive-fuel driven generators for its power needs.

The increase in power costs in the last half of last year propelled the country to the inglorious position of one of the countries with the highest commercial power rates in the region. This is a big disincentive to foreign direct investment.

The steep increase of power and fuel prices witnessed last year has had negative effect on the economy.

Kenya was considered an expensive manufacturing destination because of bad infrastructure, which hindered transportation but just as Government seemed to be sorting out this mess, the problem with energy came up.

Hence, energy is expected to be a major challenge this year.

Labour market

One purported bright spot in last year’s Economic Survey was the employment data where the Planning Minister Wycliffe Oparanya said the economy generated more than 500,000 jobs. Most of the jobs were in the Small and Medium Enterprises (SMEs).

Analysts thought the jobs figure was too high while others opined that it would have been good news if the jobs generated were meaningful ones. No one has yet put a finger on what kinds of jobs they were.

But Shikwati says that the SME sector will again be the mainstay of the country in terms of job creation and overall insulation against political and economic shocks.

Investment

Kenya is the leading economy in east Africa. Its strategic location and its well-developed business infrastructure make it a natural choice for investors and many international firms have made it their regional hub.

Investing in the country now also provides access to the larger regional market of the East African Community which has close to 150 million consumers.

As a member of the Common Market for Eastern and Southern Africa, Kenya also gives investors access to a further 385 million consumers.

But despite all its attractiveness, investors are likely to hold onto any new investments until after the General Election because of uncertainty of the outcome. The fears will only be allayed if the country conducts a peaceful campaign and carries out a smooth transition.

Budget

The 2012/13 budget is expected to be the biggest in the country’s history. It will not only cater for the elections, but is expected to lay proper financial framework for the implementation of a devolved system of government that requires massive resources.

It has been projected that the first phase of implementation will cost at least Sh7 billion and that the Government requires Sh600 billion to develop robust infrastructure in the 47 counties.

The counties are supposed to be granted 15 per cent of annual revenue, which going by estimates for 2010/2011 Sh1 trillion budget, could translate to a massive Sh150 billion for the counties.

^^ Just some perspective on the economy this year.

excellent analysis. Kenya will do well if only we can contain the runaway corruption. easily 40% of the budgetary resources are looted, year in year out. The overburdened taxpayer needs to make sound choices later this year . I appeal to all of us to remember we need to change Kenya, for the better. vote wisely, mates!

Uchumi gets second expansion plan right with 24 per cent rise in profit
http://www.businessdailyafrica.com/Uchumi+gets+second+expansion+plan+right/-/539552/1316950/-/2xe284/-/index.html
Uchumi Supermarket’s renewed branch expansion is paying off with half-year net profits rising to Sh204 million or 24 per cent.

The profit for the period ending December 31, 2011 reflected significant improvement compared to the Sh165 million recorded over a similar period in 2010.

The listed retailer’s revenues grew to Sh7.5 billion from Sh5.85 billion, a 29 per cent increase which analysts say can be attributed to Kenya’s oldest supermarket increasing its presence locally and regionally.

The Kenya Government has cleared Morocco’s national carrier Royal Air Maroc for a direct flight from Casablanca to Nairobi, to boost connectivity of the two countries.



Currently, Qatar airways flies to Nairobi from Casablanca through Doha with a stopover in Tunis, making the flight longer.

Tourism minister, Najib Balala, on Sunday requested the airline and relevant authorities to speed up on logistics to make the deal a reality.

“A delegation of Royal Air Maroc is expected in Nairobi next month to finalise on finer details regarding the route,” said Mr Balala.

The minister was speaking during a meeting with his Morocco counterpart Lahcen Haddad in Casablanca where he is leading a tourism delegation on a mission from the private sector and country’s tourism marketing agency, Kenya Tourist Board (KTB).

Tanzania to build $40m mall in Nairobi

Tanzania already owns 17 such premises out of 32 foreign missions worldwide.

The first investment centres were set up in Washington DC and New York a few years ago.

“It is expensive to run a mission abroad and so we want to set up a number of investment centres in strategic areas to generate revenue to meet the costs of our diplomatic missions around the globe,” said the Minister for Foreign Affairs and International Co-operation Bernard Membe

plans are underway to replicate other construction projects at Tanzania’s embassies in Kigali in Rwanda, Maputo in Mozambique, Abuja in Nigeria and Kinshasa in the DRC.

more info: theeastafrican.co.ke/business/ (http://www.theeastafrican.co.ke/business/Tanzania+to+build++40m+mall+in+Nairobi+/-/2560/1320572/-/y8523qz/-/index.html)

:cheers1:

Tanzania to build $40m mall in Nairobi

Tanzania already owns 17 such premises out of 32 foreign missions worldwide.

The first investment centres were set up in Washington DC and New York a few years ago.

“It is expensive to run a mission abroad and so we want to set up a number of investment centres in strategic areas to generate revenue to meet the costs of our diplomatic missions around the globe,” said the Minister for Foreign Affairs and International Co-operation Bernard Membe

plans are underway to replicate other construction projects at Tanzania’s embassies in Kigali in Rwanda, Maputo in Mozambique, Abuja in Nigeria and Kinshasa in the DRC.

more info: theeastafrican.co.ke/business/ (http://www.theeastafrican.co.ke/business/Tanzania+to+build++40m+mall+in+Nairobi+/-/2560/1320572/-/y8523qz/-/index.html)

:cheers1:

Can we mark this as spam now? You have reposted this everywhere on skyscrapercity.com and I am sure this has been your facebook status since the news broke. Never mind one Kenyan supermarket alone invested over double that amount in the region. I know this is a new thing for you but please do not spam us.

Thanks bro,

The Kenya Polytechnic has signed an agreement with the Kenya Association of Manufacturers (KAM) to enhance its capacity for industrial training as it seeks to enhance the competence of its graduates.

Kenya Association of Manufacturers through its business Unit KAM-Consulting, and through its Centre for Entrepreneurship Innovation and Technology Transfer (CEITT) will target to transfer technical skills to the staff and students of Kenya Polytechnic University College.

The polytechnic on the other hand will assist KAM to offer training of entrepreneurial skills to Small and Medium Enterprises (SMEs).

The principal of Kenya Polytechnic professor Francis Aduol said the institution will leave room to have people from the industries teach the students.

“We are also seeking to have apprenticeship programs for our lecturers and students,” said prof Aduol.

As the industrialists train the polytechnic staff and students, the polytechnic staff will also help train small businesses on business management on behalf of KAM.

The main of focus the project will be; innovation, business start up courses, business plan development, cash flow management and marketing development.
In Vision 2030, SMEs are considered to be the engine of economic growth in Kenya. However their contribution to economic development has not been fully realized due to enterprise survival, growth and expansion challenges.

This partnership will address these challenges which have continued to pose major constraints to businesses.

The joint programme will offer appropriate training and other capacity building initiatives that will enhance the success of SMEs.

“SMEs have been having challenges in product development, diversification and standardisation we shall be asking the polytechnics to train them in exchange for industrial training from KAM,” said Betty Maina, the chief executive of KAM.

The party signed the agreement in a Nairobi Hotel this week.

The memorandum shall be for a year starting from the date of its adoption and open to an extension or a longer term MOC.

The two parties shall put a mechanism in place to monitor and evaluate the performance of the MOC with a view to improving its relevance and effectiveness.

http://www.businessdailyafrica.com/Corporate+News/Manufacturers+body+in+deal+to+train+Kenya+polytechnic+students/-/539550/1323218/-/o31ir4/-/index.html

http://farm8.staticflickr.com/7163/6846215445_5b1a6a5aca_b.jpg (http://www.flickr.com/photos/75710841@N07/6846215445/)
AFRICA'S ECONOMIC GROWTH 2008-2013 (http://www.flickr.com/photos/75710841@N07/6846215445/) by findingnimo (http://www.flickr.com/people/75710841@N07/), on Flickr


http://www.un.org/en/development/desa/policy/wesp/wesp_current/2012wesp_pr_africa_en.pdf

Can we mark this as spam now? You have reposted this everywhere on skyscrapercity.com and I am sure this has been your facebook status since the news broke. Never mind one Kenyan supermarket alone invested over double that amount in the region. I know this is a new thing for you but please do not spam us.

Thanks bro,

only two places, east africa business and economy and kenyan business and economy coz the news has something to do with those threads.

any one can easily follow all my posts from "option". BTW, who is spamming you?? try to be civilized.:cheers1:

The same Tanzania is tight on cash. Is a mall priority yet they know Kenyans love their own?

The same Tanzania is tight on cash. Is a mall priority yet they know Kenyans love their own?

thats actually a splendid idea if they can implement it. Self sustaining embassies are a way to go.