KBC Channel 1

Author: Martin Mwanje

  • Dr. Patrick Njoroge’s tenure as CBK Governor ends Sunday

    Dr. Patrick Njoroge’s tenure as CBK Governor ends Sunday

    The 8-year term of Central Bank of Kenya (CBK) Governor Dr. Patrick Njoroge comes to an end today, June 18, 2023.

    Dr. Njoroge was appointed by ex-President Uhuru Kenyatta in June, 2015 to serve a for a four-year period with his tenure at the helm of CBK extended once, in June, 2020, as per the law established.

    He will be succeeded by ex-Treasury PS Dr. Kamau Thugge who assumes office Monday.

    Dr. Thugge was last Tuesday appointed by President William Ruto after his nomination was given the greenlight by parliament.

    “In exercise of the powers conferred by section 13 (1) of the Central Bank of Kenya Act, I, William Ruto, President of the Republic of Kenya and Commander-in-Chief of the Defence Forces appoint Dr. Kamau Thugge to be the Central Bank of Kenya, for a period of four years, with effect from the 19th, June, 2023,” President Ruto said in a Gazette Notice dated 13th June, 2023.

    And as his term ends, Dr. Njoroge says he has relished serving Kenyans in that capacity.

    “Tomorrow (today) is my last day as Governor of the Central Bank of Kenya (CBK), closing a chapter that begun eight years ago. Truth be told, it has been the greatest honour to serve as CBK Governor,” Dr. Njoroge says amid his impending exit.

    “We have navigated an incredible number of shocks. From interest rate caps to surges in domestic inflation. Brexit and COVID-19. A collapse and then surge in crude oil prices. Increase in global commodity prices and broken supply chains. Significant volatility and a freeze-out in the global capital markets…In all this, CBK has gained the respect of its peers in the East African Community (EAC), Africa and globally, for its actions and advocacy.”

    He says he is proud of his stellar performance that is exemplified by the banking sector that has strengthened and expanded significantly, with better business models, customer-centric focus, and banks working for and with Kenyans.

    The foreign exchange market, he adds, has also improved markedly and continue to recover from the recent shocks, with other parts of the financial sector having also advanced including Payment Service Providers, Digital Credit Providers and Credit Reference Bureaus.

    However, to the incoming Governor Dr. Thugge, he says a lot more still needs to be done warning him that the role he is about to assume is a marathon.

     

  • World Environment Day: Gov’t keen on planting 15 billion trees by 2032

    World Environment Day: Gov’t keen on planting 15 billion trees by 2032

    Environment CS Soipan Tuya says her ministry is committed to ensuring that the government realizes its goal of planting over 15 billion trees in the next 10 years.

    The initiative aims at ensuring the country reaches 30 percent tree cover.

    The CS spoke reiterated the government’s resolve Saturday during national celebrations to mark the World Environment Day which were held at St. Paul’s Waita Secondary School in Mwingi Central Sub-County in Kitui.

    Earlier, she launched a sand dam at the nearby Mwania River.

    Tuya asserted the commitment of the national government towards environmental conservation as well as fighting hunger.

    The CS lauded Kitui Governor Dr. Julius Malombe for showing his commitment towards climate change  mitigation by gracing the occasion.

    Dr. Malombe on his side pledged to construct over 100 sand dams this financial year, as well as ensure that he constructs over 1,200 by the end of his five-year tenure.

    The Governor said that this move is aimed at raising the water table across the county, hence  make trees grow with ease.

    Tourism CS Penina Malonza who was in attendance promised that her ministry would collaborate with the County Government of Kitui in order to ensure that Kitui, just like other counties, benefits from tourism gained from Tsavo National Park and Kora Game Reserve.

     

  • President Ruto: Value addition, agro-processing key in catalyzing economic growth

    President Ruto: Value addition, agro-processing key in catalyzing economic growth

    Leveraging value addition and agro-processing will spark growth in the country’s agricultural sector, create opportunities for the youth and boost farmer earnings.

    President William Ruto says his administration has removed tax on livestock feeds and is pushing Guaranteed Minimum Returns to enhance dairy production.

    The Head of State made the remarks Saturday during the 8th Annual Dairy Farmers Field Day in Meru, Meru County.

    Earlier, the President opened the Meru Central Dairy Co-operative Union Factory Phase II, which will boost the plant’s processing capacity.

    Deputy President Rigathi Gachagua on his part termed the Dairy sub-sector as critical to the country’s economic growth.

    “That is why we are focused on instituting the necessary reforms to strengthen structures like cooperatives to help our small-holder farmers improve productivity for more money in their pockets,” said the DP.

    The completed Phase 2 of the Union’s Factory, which was opened by the President, marks a milestone in improving the welfare of the farmer.

  • You let Kenyans down, Savula tells MPs who supported Finance Bill 2023

    You let Kenyans down, Savula tells MPs who supported Finance Bill 2023

    Kakamega Deputy Governor Ayub Savula has criticized Members of Parliament who voted in favor of the controversial Finance Bill 2023 in the National Assembly, particularly those from the Azimio coalition saying they were a let down to Kenyans.

    While speaking in Matungu Constituency in Kakamega County, Savula expressed deep concerns over the Kenya Kwanza Coalition MPs’ support for the bill emphasizing the importance of leaders listening to the views of the people.

    In Migori, County Woman Representative Fatuma Mohammed also criticized MPs who passed the bill terming it a clear indication that most MPs only fight for their interests as opposed to those of the electorate.

    Regarding the 2023/2024 Budget Estimates, Mohammed claimed it did not reflect the needs and wishes of Kenyans.

    The lawmaker noted that the budget should have laid emphasis on reducing the cost of living.

  • ODM to reprimand 28 MPs who defied party position

    ODM to reprimand 28 MPs who defied party position

    The ODM party has commenced disciplinary action against 28 Members of Parliament who it says defied the party position during Wednesday’s vote on Finance Bill, 2023.

    The MPs include those who voted for the bill and those who were absent during the voting.

    “The Party is in receipt of many complaints from its general membership regarding the conduct of its members of National Assembly during yesterday’s (Wednesday’s) vote on the Finance Bill, 2023,” reads a statement issued by party Secretary General Edwin Sifuna.

    “In line with the Party’s disciplinary rules, notices to show cause why disciplinary action should not be taken have been issued to the said members. They are expected to respond within the next 48 hours.”

    Among those to face disciplinary action are four party members who voted for the bill including Nairobi Woman Representative Esther Passaris, and MPs Elisha Odhiambo of Gem, Caroli Omondi of Suba South and Aden Mohamed of Wajir South Constituencies.

    Notable vocal party MPs who did not show up during voting include Babu Owino of Embakasi East, Otiende Amollo of Rarieda, Titus Khamala of Lurambi, Phelix Odiwuor alias Jalang’o of Lang’ata and Nominated MP John Mbadi.

    Jalang’o has seemingly fallen out with the ODM party leadership and has been viewed to lean towards the ruling Kenya Kwanza administration.

  • CS Kindiki puts on notice perpetrators of violence in Lamu

    CS Kindiki puts on notice perpetrators of violence in Lamu

    Political, religious or community leaders inciting violence and destruction of property in Lamu County under the pretext of fighting for resolution of historical grievances have been put on notice.

    Interior CS Prof. Kithure Kindiki says those found engaging in the vice will be apprehended and prosecuted in accordance with the law.

    “Any grievances should be resolved peacefully. Any historical grievances, including land disputes, should be resolved in a participatory and consultative manner,” said Prof. Kindiki who is on a three-day working tour of the county.

    The Interior CS who spoke when he addressed a security baraza at Mkunguni Square, Lamu Central Sub-County is now calling on all communities in Lamu County to embrace peaceful co-existence.

    He assured them that with Lamu Port being a national treasure, the Government will ensure they enjoy proceeds from the port, including employment opportunities, education, health, and infrastructure development.

    On the sale, use and abuse of narcotic drugs, illicit alcohol and other psychotropic substances, he warned of an all-out war declared by the government on drug barons and manufacturers of illicit alcoholic drinks.

  • Budget: Why sugar is soon likely to turn more sour

    Budget: Why sugar is soon likely to turn more sour

    Kenyans are likely to pay more for sugar after the government proposed the introduction of excise duty on imported sugar.

    This however excludes the sugar imported or purchased locally by registered pharmaceutical manufacturers for use in the manufacture of pharmaceutical products.

    1kg of sugar is currently retailing at over Ksh. 200 and there are fears the prices are likely to increase in the near future.

    Majority of Kenyans are sugar consumers and many were hoping that the commodity will be among those whose prices will nosedive once the budget estimates for Financial Year 2023/2024 are presented.

    “Consumption of sugar has been associated with various ailments such as diabetes which has become common in many families,” National Treasury CS Prof. Njuguna Ndung’u submitted to Parliament Thursday.

    “To discourage consumption of sugar, I propose to the National Assembly to introduce excise duty on imported sugar at the rate of Ksh 5.0 per kilogram excluding the sugar imported or purchased locally by registered pharmaceutical manufacturers for use in the manufacture of pharmaceutical products.”

    As relates to tea, the CS lamented that the tea purchased for local value addition either from the factories or tea auction centres is vatable thus affecting the cash flows of tea exporters.

    “In order to encourage local value addition of our tea, I propose to the National Assembly to remove VAT on tea purchased from factories or tea auction centres for value addition and subsequent export,” Prof. Ndung’u said.

    According to him, the move will help improve cash flows for tea exporters involved in local value addition.

  • National Gov’t allocates cash strapped counties Ksh. 442.1B

    National Gov’t allocates cash strapped counties Ksh. 442.1B

    The 47 counties will receive Ksh. 385.4 billion from the equitable share of revenue raised nationally.

    Counties will also receive Ksh. 11 billion as additional conditional allocations and another Ksh. 33.2 billion as conditional allocation from development partners.

    Ksh. 12.5 billion has been set aside as unconditional allocation for the devolved units.

    This brings to Ksh. 442.1 billion the total amount allocated to counties in the 2023/2024 Budget Statement presented to Parliament by the National Treasury CS Prof. Njuguna Ndung’u Thursday.

    Part of this include Ksh. 425 million for the Transfer of Library Services being a devolved function and Ksh 2.9 billion as outstanding mineral royalties share to 32 County Governments as stipulated in the Mining Act, 2016.

    As stipulated by Article (204) of the Constitution, Ksh 7.9 billion has been allocated under the Equalization Fund in the Financial Year 2023/24.

    This represents 0.5 percent of the FY 2019/20 revenue which the National CS says is the most recent audited and approved revenue by the National Assembly.

    “In addition to this, we have allocated Ksh. 3 billion to cater for part arrears from the previous years bringing the total allocations under Equalization Fund to Ksh. 10.9 billion,” Prof. Ndung’u said.

    Nairobi County will receive the largest amount of equitable share after being allocated Ksh. 20 billion followed by Nakuru County at Ksh. 13.6 billion, Turkana County Ksh. 13.1 billion, Kakamega Ksh. 12.9, Kilifi Ksh. 12.1 billion, Mandera Ksh. 11.6 billion and Bungoma County Ksh. 11.1 billion.

    Lamu County has been allocated the least amount of equitable share which stands at Ksh. 3.2 billion followed by Elgeyo Marakwet County at Ksh. 4.8 billion, Taita Taveta Ksh. 5 billion while Embu, Nyamira and Vihiga Counties will each receive Ksh. 5.3 billion in equitable share.

  • Ksh. 338B set aside for security sector in 2023/2024 Budget Statement

    Ksh. 338B set aside for security sector in 2023/2024 Budget Statement

    The country’s security sector has been allocated Ksh. 338 billion in the 2033/2014 Budget Statement presented by National Treasury CS Prof. Njuguna Ndung’u in Parliament Thursday afternoon.

    Prof. Ndung’u says the allocation was informed by the critical role the sector plays in creating a safe environment for the country.

    Of the amount, Ksh. 144.9 billion has been earmarked for the Kenya Defence Forces (KDF), Ksh. 98.6 billion for the National Police Service (NPS), Ksh. 44.3 billion for the National Intelligence Service (NIS), and Ksh. 31.3 billion for prisons services.

    Ksh. 8.8 billion has been earmarked for the leasing of police motor vehicles while Ksh. 500 million will be used for the police modernization programme even as the government seeks to better equip NPS.

    “I would later be requesting this August House for enhanced funding approval once the ongoing discussions on a Comprehensive Modernization Programme is concluded,” Prof. Ndung’u said during the presentation of the Budget Statement.

    And in order to step up the war on crime and enhance support to administration of justice the CS said Ksh. 856 million have been set aside to equip the national forensic laboratory.

    He said the budget had also taken into consideration the welfare of the disciplined forces which he said is at the centre of the Kenya Kwanza administration with delivery of staff houses set to be expedited through public-private partnership framework.

  • Budget: PS Kiptoo says their aim is to improve livelihoods

    Budget: PS Kiptoo says their aim is to improve livelihoods

    The Ksh. 3.6 trillion 2023/2024 Budget Statement to be presented in Parliament Thursday afternoon will focus on key priority areas aimed at improving livelihoods.

    National Treasury CS Prof. Njuguna Ndung’u is Thursday afternoon expected to present the Budget Statement whose proposals have elicited mixed reactions from Kenyans.

    PS Dr. Chris Kiptoo says the theme of the budget is a commitment that it will be based on realistic life priorities and to lower the cost of living.

    The theme of this years’ budget is “Bottom-Up Economic Transformation and Climate Mitigation; Adaptation for Improved Livelihoods of Kenyans”.

    “The budget estimates will be progressive despite the multiple economic shocks being experienced locally and globally, compounded by the adverse effects of climate change,” said Dr. Kiptoo when he addressed a press conference at his office Thursday ahead of the budget statement presentation in Parliament.

    This will be the first budget for the Kenya Kwanza administration that has prioritized five pillars under the Bottom up Economic Transformation Agenda.

     The Ksh. 3.6 budget will be seeking to maintain a delicate balancing act between debt servicing and stabilizing the economy.

    In the budget proposals, Ksh. 1.5 trillion has been earmarked for recurrent expenditure, Ksh. 718 billion for development while Ksh. 986 billion will go into servicing public debt.

    Counties, which are already facing a cash crunch, will share out Ksh. 385 billion.

    The education sector will get the lions share of Ksh. 604 billion to operationalize the Junior Secondary School in terms of capitation and hiring of teachers.

    Other areas set to benefit largely are Infrastructure, ICT and energy sector.

    The five priority areas under the Bottom-up Economic Transformation Agenda comprising agriculture, MSMEs, housing and settlement, healthcare as well as the digital superhighway.