Confidence has brought Kenya where it is today

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Kenya took a significant step towards freeing itself from donor dependency and erratic rain-fed agriculture.
She shifted her energies to reviving stalled irrigation programmes and declaring total war on depletion of water catchment areas as — all around the nation — the ugly and devastating effect of current food, water and energy crises bit harder.
Today President Kibaki, who on Monday launched the Sh2 billion National Economic Stimulus Programme on food in Hola, will lead Kenya’s cry to the world for Sh24 billion emergency food aid to avert human and animal deaths.
If it pulls through and should the new programmes hold unlike the glamorous ones before, Kenya would have unleashed its own agrarian revolution — as well a modest green revolution going beyond Mau Forest pending evictions.
President Kibaki, Prime Minister Raila Odinga, VP Kalonzo Musyoka and other leaders admire the fish catch during a tour of Hola Irrigation scheme in Tana River District, on Monday. Photo: Maarufu Mohamed/Standard]
President Kibaki directed the Ministries of Agriculture, Forestry, Environment, Finance and Internal Security to immediately take action to stop the destruction of the country’s forest cover to end Kenya’s decline into hunger and food insecurity.
Most importantly, these will include revival of key irrigation schemes, securing the country’s forests and wetlands and reforestation to make the country food secure.
Speaking during the launch of the stimulus programme the President said human invasion and wanton destruction of forests had worsened the food crisis in the country.
He also said planting of eucalyptus trees, and interference with river basins had led to the drying up of many of the rivers that watered livestock and kept irrigation projects alive, thus worsening the situation.
Long-term vision
The ambitious plan is to increase the land area under irrigation from the current 120,000 hectares to 400,000 hectares — using available water resources, but with a long-term vision to achieve the full potential of 1.3 million hectares.
The plan will call for increased investment in water storage, and will also require the State to secure Kenya’s key water towers in Mau Forest Complex and the Aberdares, a thorny political matter.
The directive also implies Kibaki and Prime Minister Raila Odinga have closed ranks on removing squatters from Mau and other water towers.
Indeed, Kibaki declared the coalition had agreed to work together.
"As Kenyans can see, the programme we are launching today is part of an overall strategy of ensuring food security for Kenya within five years through irrigated agriculture," said Kibaki.
"We are determined to ensure Kenya becomes a food surplus nation. With the experience the country has gone through in the last three years, it is time for Kenyans to end their state of denial and accept that climate change is here with us," he said.
The stimulus programme seeks to inspire ‘scientific’ and ‘modern’ agriculture, and increase employment opportunities in production, processing and marketing of maize and rice produce. This will reduce dependence on huge food imports that squander valuable foreign exchange.
An additional 40,000 hectares would be irrigated to produce 370,000 bags of maize and 600,000 bags of rice by February next year.
While launching the Hola Irrigation Scheme at Hola Stadium, Kibaki promised other similar schemes, among them Tana Delta, Perkerra, Mwea, Ahero, West Kano, and Bunyala would also be put under maize and rice crops by October.
Since their initiation — before a number of them collapsed or shrunk in production capacity — Mwea had been famous for its paddy rice.
Tana Delta River irrigation schemes were known for the production of seed cotton, Perkerra for onions and chillies, and Ahero (within the Nyando River watershed) for production of rice and sugarcane.
Bunyala scheme, within Nzoia River watershed was known for paddy rice while West and South West Kano (Lake Victoria watershed) was renown for paddy rice and sugar cane.
Raila said the solution to consistent food shortage lay in irrigation and announced that the Government would buy livestock, which are succumbing to drought to minimise losses to farmers at uniform prices.
Livestock production
Vice-President Kalonzo Musyoka said the Government would build more dams along River Tana to expand irrigation.
"We need to expand irrigation to cover the whole country instead of depending on rain-fed agriculture," said Kalonzo.
Finance Minister Uhuru Kenyatta said the Government would soon distribute Sh20 billion within one year as an economic stimulant factored in the last budget.
The funds would cover construction of markets, Jua kali shades, schools and health centres in constituencies. "I want to assure Kenyans that it is possible to make this funds available within a year," Uhuru said.
The Hola project is to be undertaken by 900 farmers and the National Youth Service. The Sh500 million project would put 2,800 acres under crop production.
Agriculture Minister William Ruto said the total area under irrigation would be expanded over 400,000 hectares in the next five years.
The President said an additional 40,000 hectares would be put under irrigation to produce 370,000 bags of maize and 600,000 bags of rice by February next year.

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Parks in far-flung areas that have over the years registered dismal tourist arrivals due to accommodation deficiency are among those earmarked for the construction of such facilities.
They include Mwea National Park, Mt Elgon National Park, Saiwa Swamp National Park and Hell’s Gate National Park. Despite owning unique attractions, these parks are some of the least visited parks in the country mainly because they lack reasonable accommodation facilities. Construction of eco-lodges is expected to attract a considerable number of visitor traffic to these areas. Giraffes are among the wildlife at Hell’s Gate.

Before any construction is certified, all the necessary environmental impact assessments must be done in line with the tenets of eco-tourism. This is very important to ensure delicate ecological balance is maintained. Some of the targeted parks like Hell’s Gate and Saiwa Swamp are very small and if care is not taken, the ecological balance in their fragile ecosystems will be upset. If this happens, then the initial noble aim of the project will be lost.
Given the grandiose landscapes and awesome views in some of these parks, it is important that the location of these eco-lodges blend well with the landscapes to avoid them sticking out conspicuously like sore thumbs. For instance, it will be unsightly for a gigantic structure to be set on top of the beautiful cliffs of Hell’s Gate National Park as it will interrupt the magnificent view. Thus, any lodge developed in these parks should not be allowed to deface the beautiful sceneries.
Scarce accommodation
In addition, the size of the parks must be taken into consideration. Hell’s Gate, for instance, may not necessarily need such an eco-facility. To begin with, it is very small and, already, a sizeable chunk of it has been swallowed by the Olkaria Geothermal project. Putting up an eco-lodge will only congest the park more. Hell’s Gate is an exceptional flora and fauna site. It is suitable for quiet retreats and tranquil nights enjoyed under canvas.
This atmosphere is extremely attractive to nature lovers. It would be a lot better if those wishing to spend a night in the park use the three campsites available. In any case, there are a variety of accommodation options on the nearby shores of Lake Naivasha, ranging from the low-budget camps to the most luxurious lodges and hotels.
Saiwa Swamp National Park, too, is also very small. In fact, it is the smallest national park in Kenya. Situated on a wetland, it is home to the rare and endangered marsh antelope called Sitatunga. This is where it is protected. The construction of an eco-lodge would only make sense if its immediate goal is to attract more tourists to the western parts of Kenya.Tassia Lodge is one the eco-lodges. Eco-friendly facilities try as much as possible to retain the natural habitat
Eco facilities
Apart from a campsite at the main gate and the nearby Sirikwa Tented Lodge, there is no notable accommodation facility around Saiwa Park. Anyone seeking alternative facility must drive back to Kitale town over 20 kilometres away.
Mwea National Park is also on a wetland. Its main visitors include researchers studying and following the migratory avian species. Few tourists visit this park, which lacks meaningful accommodation. Visitors are thus forced to source for private camping facilities outside the camp.
Fortunately, the Kenya Wildlife Service has allocated two locations inside this park for construction of eco-facilities. Local investors are encouraged go full throttle and invest in this venture.
As for Mt Elgon National Park, which is home to the second highest peak in Kenya, its importance as a water tower for Lake Victoria and River Nile, including its varied habitats, cannot be under-estimated. In 2003, Unesco declared this park a Biosphere Reserve. Kenya Wildlife Service branded it recently and it is hoped influx by tourists will increase soon.
The KWS-run Kapkuro Bandas and the Mt Elgon Lodge are the only available accommodation facilities in the park. They, however, do not have the capacity to cater for the requirements of increasing numbers of tourists expected. The construction of eco-facilities is, therefore, a welcome venture. A campsite at Hell’s Gate National Park. Photos: Courtesy]

In conjunction with the Ministry of Tourism, the Government is investing in alternative tourist circuits with the aim of reducing pressure on the conventional ones. The project hopes to also open up the rest of the country to discerning tourists. With this kind of exposure, the resultant influx of both local and foreign tourists will mean a corresponding increase in bed capacity in the national parks in the respective circuits to cater for the accommodation needs of the tourists.
Host community
In line with the principles of eco-tourism, it will be in order for Kenyans to be granted first priority in developing these sites. It would be unfair if foreigners are awarded tenders for the construction of these facilities at the expense of deserving and able Kenyans. Already, various eco-facilities that exist in the country, especially in the Laikipia region, are owned or managed by foreigners. Giving Kenyans the opportunity to construct and run eco-lodges will create a sense of ownership for the parks since they automatically become partners in the collective task of environmental conservation.
Further, the issue of pricing should be approached with caution. The current prices in the few existing eco-lodges are prohibitive, especially to local tourists, and this can be attributed to the fact that when they were put up, their main target was foreign tourists.
Managing an eco-lodge is expensive because, besides the normal operational costs, a certain percentage of the revenue must be channelled to the host community. Nonetheless, this is not a good enough reason to lock out citizens by charging high prices. At the same time, costs can be reduced if staff members are employed directly from the host community.Platforms for viewing wildlile at Saiwa Swamp National Park.

Finally, the issue of security, especially for tourists is paramount. The Government, KWS and all other stakeholders in the tourism industry must pool together resources to ensure that these destinations are safe for everyone to visit.

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The Nairobi Stock Exchange has launched a complaints handling unit aimed at speedy resolution of investor concerns, queries and easy access to information. Photo/FILE
By NATION ReporterPosted Tuesday, August 18 2009 at 15:14

The Nairobi Stock Exchange (NSE) has, in collaboration with other market players, launched a complaints handling unit aimed at speedy resolution of investor concerns, queries and easy access to information.

The unit will be based at the bourse’s offices at Nation Centre, Nairobi. It becomes the first concerted move to centralise handling of complains in the stock market.

The Capital Markets Authority, Central Depository and Settlement Corporation (CDSC) and Kenya Association of Stock Brokers and Investment Banks (KASIB) support the initiative.

The complaints handling unit will operate as a one-stop point of reference for investors to lodge the concerns, track their progress and receive the required information.

“I am confident that the complaints handling unit will be an effective way of resolving investors’ problems and a good way of nurturing good relations between ourselves and the general public,” said NSE chairman Edward Njoroge during the launch.

Other than making a physical visits to the unit, investors can also file complaints via the internet and mobile phones.

The information collated by the outfit will be made public as a way of enhancing transparency while acting as a deterrent to market players with bad intentions. “The initiative is one among many meant to restore investor confidence,” said Mr Njoroge.

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[Kenguy]

Originally Posted by desert burner

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Alfred Mutua should take his rocks back.employ youths by planting trees not throwing rocks and calling it ''beauty''. Im smelling a fishy contract to supply those stones which he is trying to justify as a beautification project. Its so ugly it hurts the eye.

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Originally Posted by Kenguy

Alfred Mutua should take his rocks back.employ youths by planting trees not throwing rocks and calling it ''beauty''. Im smelling a fishy contract to supply those stones which he is trying to justify as a beautification project. Its so ugly it hurts the eye.

also wondering, green trees, flowers, and stones which one is good to the eyes?

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The road project joining Isiolo town and Ethiopia is being funded by AfDB. /Reuters
By Githua Kihara (email the author)
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Posted Thursday, August 20 2009 at 00:00


Construction of the second transport corridor connecting the planned Lamu port to Southern Sudan and Ethiopia will provide an opportunity to open up the remote and dry Northern parts of Kenya, experts say.

The rail and road link from Lamu to Addis Ababa in Ethiopia and another to Juba in Southern Sudan will pass through the northern parts of the country, which is resource rich but unexploited, according to the inter ministerial committee on the second transport corridor lead advisor, Dr Mutule Kilonzo.

From Lamu, the corridor will pass through Hola, Bura to Garissa. Hola and Bura are agriculturally rich with potential for rice and cotton production.

The government has already launched a Sh2 billion irrigation project to boost food production in Hola.

There are plenty of deposits of cement around Wajir and titanium in the west of Lamu.

Another route from Garissa will head to Mwingi and Matuu where there are rich deposits of coal and iron ore.

“This channel will provide an easy access to the mines for shipment through Lamu port,” said Dr Mutule.

The third branch from Garissa will proceed to Isiolo, which will also be made a resort city and a free economic zone. Isiolo will be an intersection point for three corridor routes. The first route will proceed to Moyale at the Kenya- Ethiopian border.

Ethiopia is already developing the route having completed a feasibility study on the railway line connecting Addis Ababa to Moyale.

The second route from Isiolo will proceed to Nairobi where the new corridor will be linked to the existing Northern Corridor and a final route will proceed to Lokichoggio at the Kenya- Southern Sudan border.

Lamu and Mombasa will be connected by a railway line and the two ports will compliment each other.

Mombasa port is currently serving Uganda, Rwanda, Burundi and the DRC only.
The government of Southern Sudan will construct its part of the corridor link to the Kenya border near Lokichoggio. The feasibility study for the entire project is expected to be ready by February next year and the detailed designs for the project two months later.

There is already an existing port at a naval base in Lamu, which is currently used by Kenya Navy vessels.

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BPO company nominated for top Europe prize

Kencall has been nominated for a prestigious award, providing a welcome boost to the local BPO sector. /Liz Muthoni




Business Process Outsourcing (BPO) company, Kencall, has been nominated for the non-European Call Centre of the Year Award giving a boost to the country’s global image in this nascent sector.

The firm clinched the award last year, beating participants from India and South Africa. Having local providers recognised and awarded offers the country an opportunity to them as flagship BPO centres when marketing the country.

Nascent industry
Although still at a nascent stage in Kenya, the sector promises job creation opportunities and the nomination comes at a time when the local BPO industry has been undergoing significant challenges ranging from limited access to high Internet bandwidth for use in their operations to weak marketing of their product and service offerings across the globe.

The CCF European Call Centre Awards recognise industry best practice in 20 different categories ranging from Best Use of Technology and Best Multimedia Strategy to the European Call Centre of the Year and CCF Industry Champion awards. Last year’s winners included organisations such as beCogent, British Gas, Capita, Homeserve and Lloyds TSB.

“Winning the award has completely boosted our self confidence, given us that extra bounce in our step and raised the roof on just how high we believe we can soar. It’s simply great. We are ready to go” said Kencall CEO Nick Nesbitt.

Other than boosting the country’s image and profile, the awards ceremony provides ample opportunity for networking as it brings business leaders from all over the world.

It is a forum that enables global business leaders meet the players in different fields and locations to gain an understanding of the nature and quality their operations. This year’s awards ceremony will be held on September 22, 2009 at the Hilton Birmingham Metropole in the UK.

The nominations are made by a CCF European Call Centre Awards judges’ panel.

KenCall has a prestigious and rapidly growing client base within East Africa and a proven track record of success which it is now leveraging as a platform to compete globally and further penetrate the UK outsourcing market.

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A surge in foreign telecoms companies investment is expected after the government relaxed the rule on local ownership. The move is anticipated to inspire investor confidence.

The cap on 80 per cent local ownership is being altered to allow foreign firms to set up operations without a Kenyan partner but be provided with a three year grace period to seek for one.

Telecommunication rules require that a cell phone firm operating here should have at least a 5th of its shares held by a Kenyan.

This comes almost three days after it was reported that businessman Naushad Merali had sold 15 per cent of the 20 per cent stake he held in Zain Kenya, leaving Kuwaiti-based Zain Group with 95 per cent shareholding.

Get license

The Communications Commission of Kenya is said to have relaxed the rule that will enable operators with 100 per cent foreign shareholding to be licensed.

The local ownership requirement is said to be one of the major challenges to new investments. It, for instance, took longer than necessary to license Essar Telkom, then Econet Wireless as local partners were unable to raise the required equity.

The government’s bid to get a second national operator was also characterised by controversy after foreign investors failed to secure local partners with necessary funding.

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K-Rep Bank has unveiled a multi-million shilling water supply financing initiative aimed at developing a market-based alternative for funding in the sector.

The programme, known as Maji ni Maisha, blends a market-based credit model with subsidies.

K-Rep managing director Kimanthi Mutua said the bank has committed Sh110 million for 21 schemes in Kiambu, Thika, Kajiado, Makueni and Machakos in the pilot phase.

Out of this commitment Sh71 million has been disbursed to 11 water schemes, where the communities are now enjoying access to clean, piped and metered water.

“Given the success of the pilot phase, K-Rep Bank is now expanding the credit to other areas in Kenya with an allocation of additional funding of Sh250 million,” said Mr Mutua.

The initiative is aimed at having far-reaching benefits to Kenyans through a model that provides finance to community groups who are both in need of water and are eligible for the funding.

The programme comes at a time when the country is facing a major water crisis.

The project was initially piloted in collaboration with Athi Water Services Board and the World Bank’s Water and Sanitation Programme under Global Partnership on Output Based Aid which has been providing co-finance since 2007.

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Tea farmers should expect a higher second payment for their crop, an agency has promised.

Kenya Tea Development Agency said that although production for the 2008-2009 crop year that ended in June was depressed, earnings will be higher compared to last year’s.

“The crop production was down by 24 per cent but the surplus earnings will be higher than last year’s,” the agency’s head of factory operations Alfred Njagi told the Nation on Wednesday.

Mr Njagi who declined to provide the specific amount of the second payment popularly known as bonus since he is not allowed to do so, said the tea board will be meeting on September 1 to determine the payment rate for each factory.

This is good news for the small-scale tea sub-sector which has been undergoing a turbulent period that saw some growers in Central Province uproot their bushes replacing them with more profitable crops.

The main drawbacks have been drought, frost, leaf hawking in some factories west of Rift Valley and high energy costs, labour and inputs like fertiliser.

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Co-op Bank profit up 16 per cent

Co-operative Bank of Kenya managing director Gideon Muriuki during an investor briefing on Wednesday when presenting its financial results for the first six months of this year. Photo/LIZ MUTHONI
By JUSTUS ONDARIPosted Wednesday, August 19 2009 at 22:30
In Summary

• Earnings top Sh1.96bn owing to its fairly diversified loan portfolio

Co-operative Bank of Kenya has bucked industry trend to record a 16 per cent growth in pre-tax profit for the first six months of this year.




The bank’s earnings increased from Sh1.67 billion for the period ending June 30 to Sh1.95 billion recorded over the same time in 2008.

With loans and advances to customers growing to Sh56.7 billion up from Sh43.4 billion given out last year, the bank recorded a 25 per cent increase in interest income to Sh3.1 billion this year.

“The environment we are operating in is challenging but I expect us to do even better in the second half. I project that we will record at least Sh4.5 billion in our full year pre-tax profit,” the bank’s chief executive officer, Mr Gideon Muriuki, told an investor briefing at a Nairobi hotel on Wednesday.

Co-op Bank recorded a Sh3.4 billion pre-tax profit in 2008.

Although non-interest income declined by Sh200 million to Sh2 billion this year, Mr Muriuki said they are banking on increased transaction earnings in the second half of the year.

To boost the earnings, they intend to open an additional 20 branches before the end of the year to bring their network to a total of 83 branches while exploring ways of boosting their core banking system to enhance efficiency.

The bank has enlisted the services of a consultant who will advise on whether to upgrade its 10-year old system or install a new one.

A fairly diversified loan portfolio and stringent cost management strategy were key to this year’s performance as it is shielding the bank from the ravages of both the post-election violence and ensuing economic slowdown that have hit the financial sector.

The cost-management restricted operating expenses to a growth of 6 per cent to Sh3.21 billion. Diversification ensured that Co-op Bank was not overly exposed to problems that hit agriculture and small businesses after the violence and the economic downturn.

This is because, despite being largely owned by the co-operative movement, the bank’s loan portfolio consists of Sacco banking (mainly check off based) at 21 per cent, agribusiness, 2 per cent, and small and medium enterprises at 9 per cent.

It is strong in corporate banking at 24 per cent and personal banking, which is mainly check-off based, at 44 per cent.

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Standard Chartered Bank has lowered the cost of borrowing personal loans by 3.75 per cent.

The move comes in the wake of Central Bank of Kenya governor Njuguna Ndung’u’s contention that commercial banks are fuelling loan defaults by charging borrowers high interest rates.

Prof Ndung’u has been calling on banks to reduce their rates to stimulate the economy after CBK cut the Central Bank Rate (CBR) and Cash Reserve Ratio (CRR) expecting commercial banks to transfer the same benefits to consumers.

Retail products

Mr Bhartesh Shah, StanChart’s head of retail products, said the bank hopes its move will open access to credit to people who wish to borrow but are otherwise restricted by the cost of credit.

He added that the new rate represents the lowest interest rate for personal loans offered by any major bank in Kenya.

“Our customers can use this lower rate to consolidate their various loans at the lowest repayment rates in the market. We remain open for business and will continue to weigh the opportunities depending on the response from our customers to chart a longer-term pricing strategy,” said Mr Shah.

While most banks remain skeptical about the potential opportunity to attract more business and minimise the risk of defaults, Standard Chartered customers can now borrow up to a maximum of Sh3 million at 16 per cent per annum.

Fastest loan

They will be able to enjoy free loan transfers from other banks, fastest loan processing and pay up to 60 months at Standard Chartered Bank.

As the industry reels from loan defaults largely attributed to the lending spree many banks undertook last year and the cost of credit, StanChart has kept its non-performing loans portfolio low.

In the first half of this year, the bank’s total non-performing loans stood at 3.6 per cent compared to 4.4 per cent for the same period in 2008.

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Sugarcane farmers have a reason to smile after the Kenya Sugar Board increased funds meant to be lent to them through Agricultural Financial Co-operation, to Sh1 billion.

The sugar development fund chairman at sugar board, Mr Billy Wanjala, disclosed that the sugar regulatory agency had approved Sh500 million to add onto a similar amount that had earlier been released.

“Our gesture is meant to encourage farmers to become self-reliant in sugarcane production because they can access loans from the institution without being subjected to difficult borrowing conditions,” said Mr Wanjala.

However, he added that most farmers are reluctant to borrow loans, despite KSB efforts to ensure many growers profit from the programme. “We are surprised that most farmers are not going for the funds that would enable them acquire farming machines and make sugarcane farming cost effective,” he said.

Earlier, some farmers who spoke to the Nation in Mumias, complained that the Agricultural Financial Co-operation Kakamega branch had denied them the funds claiming “we had not met the requirements.”

But Mr Wanjala said the terms of borrowing and repayment of the loans had been simplified for the growers “because we are simply ploughing back what we get from them.”

Meanwhile, sugar board has starated sensitising and educating farmers in all sugarcane growing areas on ways of cutting down on the rising farming expenses.

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More than 7,000 farmers in Teso and Busia districts have been recruited to start growing chilli for export to Europe. An agreement has been signed with Mace Foods Ltd, a company based in Germany and whose local regional office is in Eldoret.

The project director, Alphonce Emodo, said the farmers had been contracted in 70 blocs of 100 people each.

Mr Emodo said they had already set up buying centres in all the 70 blocs with farmers to be paid in cash as soon as they deliver their produce at Sh100 per kilogramme and a further bonus of Sh6.

He said they had also entered into an agreement of financing all farmers through KCB, which will advance financing to the farmers, with the chilly planted acting as collateral .

The director added that more incentives for bloc farmers will be rolled out within a month to acquire tractors to facilitate better production per acreage and to address issues of production of other crops.

Mr Emodo said the company will also supply seeds in sachets to farmers, adding that one acre of chilly will require four sachets with a yield of Sh200,000 if proper methods were used.