KBC Channel 1

Author: Ronald Owili

  • Nakuru’s multi-million shillings industrial park ready for occupancy

    Nakuru’s multi-million shillings industrial park ready for occupancy

    The multi-million shillings Lord Egerton Agro-industrial Park in Nakuru County is expected to commence operations next month following its completion.

    The industrial park which will be launched by President William Ruto will host a variety of small industries in agro processors, ICT hubs, energy-sector companies, engineering and construction firms and chemical industries.

    According to Industry Principal Secretary Juma Mukhwana, the project is part of the National Government plans to construct County Aggregation Industrial Park (CAIP) and Export Processing Zone (EPZ) in each county at a cost of Ksh 4.7 billion.

    Each county is expected to contribute Ksh 250 million and provide a minimum of 100 acres of land for the establishment of the Parks towards the implementation of the project in the next financial year.

    “Once the parks are constructed, Equity Bank has promised to provide Ksh 250 billion to support the purchase of manufacturing equipment for industries willing to invest in the parks. This was after the government struck a deal with the lender,” said Mukhwana.

    Funds contributed by counties will be used to fund the provision of electricity, water, effluent management, internet, security and common transport.

    Additionally, the parks have online portals through which traders will find markets for their products, both locally and abroad.

    The PS said the government will also establishing a Ksh 6 million fund to provide start-up capital to small-scale traders and youth under a programme dubbed “Viwanda Mashinani”.

    Already, Ksh 100 million has been disbursed to Nakuru County for the construction of basic infrastructures. Other counties identified for the first phase of the project include Busia, Murang’a, Kakamega and Kirinyaga.

    Nakuru County Trade County Executive Committee Member Stephen Kuria said Lord Egerton Agro-industrial Park besides expanding the devolved unit’s opportunities as an industrial and economic hub, will create employment opportunities, improve the livelihoods in agriculture-dependent regions, reduce post-harvest losses, contribute to food security and accelerate economic growth in the country.

    The industrial park is expected to help in creation of at least 4,000 jobs mostly in the agroprocessing subsector.

    Additional reporting by KNA

  • Southern Africa in need of $90B for climate resilience yearly

    Southern Africa in need of $90B for climate resilience yearly

    New investments in form of climate finance could spark economic growth for Southern Africa economies with expected slowdown this year.

    According to the African Development Bank (AfDB) the 2023 Southern Africa Economic Outlook, the region is expected to slow down in 2023 to 1.6pc, followed by a slight improvement of 2.7pc next year.

    AfDB says last year, Southern Africa region’s GDP growth barely reached 2.7pc, a level much lower than global and African averages of 3.4pc and 3.8pc.

    The slowdown in South Africa has been mirrored in other countries within the region such as Zimbabwe, Zambia, Malawi, Madagascar, and São Tomé and Príncipe, which have also experienced intense adverse weather events.

    “Weighing down the environment further is the external debt burden which is forecast to remain high across the Southern Africa region. In 2022 it stood at 48pc,” said AfDB.

    However, the region could benefit from new climate action funding given the region needs at least $1 trillion with an annual requirement of $90.3 billion until 2030.

    Average annual climate finance flows to Southern Africa currently stands at $6.2 billion, a mere 6.9pc of what is required. Southern Africa, in addition, received the least financial flows relative to its financial needs, compared to other African regions, AfDB said.

    “We estimate that the continent will need about $235-$250 billion annually between now and 2030 to meet investments needed under the Nationally Determined Contributions. So this leaves Africa, the African private sector and the global private sector with an investment opportunity of up to $213.4 billion annually to address climate change alone,” said Kevin Urama, AfDB Vice President and Chief Economist.

    The bank is currently spearheading regional initiatives that intersect with climate adaptation, energy transition and sustainability across the entire continent.

    They include among others, financial instruments, green bonds, technical expertise, climate insurance schemes, policy interventions.

  • BasiGo to deliver first bus in Rwanda by October

    BasiGo to deliver first bus in Rwanda by October

    Kenya’s electricity bus manufacturer BasiGo plans to deliver its first unit to public transport operators in Rwanda by start of the fourth quarter this year.

    Rwanda now becomes the second market for the e-mobility firm after Kenya.

    BasiGo Rwanda has also announced partnership with the country’s leading provider of automated fare collection systems for public transport, AC
    Mobility.

    BasiGo Chief Executive Officer and Co-founder Jit Bhattacharya said the partnership will see the buses delivered to public transport operators through BasiGo’s innovative Pay-As-You-Drive financing model.

    “Electric buses will bring bus operators freedom from rising fuel prices while also dramatically reducing air pollution and CO2 emissions. Through our Pay-As-You-Drive model, we are excited to bring a complete E-Bus solution to make this technology affordable, accessible and convenient for all bus operators in Rwanda,” said Bhattacharya.

    BasiGo and AC Mobility have signed letters of intent for the pilot with Kigali Bus Service, Royal Express, and Volcano Express, three of Kigali’s leading bus operators.

    “We are excited to partner with BasiGo to drive Rwanda’s public bus electrification. The country has recorded rapid transformation, creating a need for a more robust and cost-effective public transport system. The electric buses will help ease the cost burden of public bus transporters and advance Rwanda’s transition to clean mobility.  We look forward to leveraging BasiGo’s experience and network to build a strong electric bus business in Rwanda,” added Jones Kizihira, Chief Executive Officer, AC Mobility Rwanda.

    The deal comes as Rwanda embarks on a quest to rapidly scale the size of Kigali’s public transport fleet while also aiming to convert 20pc of the public bus fleet to electric by 2030.

    Since inception in 2021, BasiGo has sold 19 Electric Buses to public transport operators in
    Nairobi and has secured reservations for over 100 additional buses.

    The firm says to date, it buses have covered a total distance of more than 460,000km and carried over 580,000 passengers.

    Through the financing model, BasiGo and AC Mobility target to deliver 200 electric buses to bus operators in Rwanda by the end of next year.

  • Wheat prices to stabilize despite grain initiative collapse – Harsama

    Wheat prices to stabilize despite grain initiative collapse – Harsama

    Agriculture ministry expects wheat prices in the country to stabilize despite Russia ending the Black Sea Grain Initiative (BSGI) with Ukraine.

    Crop Development Principal Secretary Kello Harsama has said the Cereal Millers Association will be granted the license to import at least 2 million bags to plug deficit after mopping up local wheat from the market as the harvesting season approaches.

    Warsame said millers will now buy a 90-kilogram bag at Ksh 5200 up from Ksh 3700 agreed in 2021 with the Ministry of Agriculture.

    “Soon a bag of wheat will go for Ksh 5,200 for grade 1. I also want to mention that the prize of maize has reduced since we are going into the harvesting period. Millers are expecting around 44 million bags in their silos. 2 kilograms of maize meal will retail at ksh 175,” said Harsama.

    Additionally, Warsame said the National Cereals and Produce Board (NCPB) has set up driers to combat the issue of aflatoxin and ensure healthy food reaches consumers.

    This comes as the government projects that more than 2 million small holder farmers in the country will experience a surplus in produce through access to affordable inputs, intensive agricultural extension support and links to markets.

    This is through the launch of the African Conference on Agricultural Technologies (ACAT) that aims to help farmers adapt and scale up to appropriate technologies that are needed to enhance food and nutrition security.

    ACAT is meant to address agricultural challenges faced by farmers brought about by climate change, pest infestation and other value chain related challenges.

    It hopes to use technology that varies from mechanization, improved breeding methods and biotechnology to mitigate this.

    African Conference on Agricultural Technologies (AATF) Executive Director Canisius Kanangire said the organization in collaboration with government aims to highlight the concerns of farmers not accessing innovative technologies and other value chain actors due to climate change and other factors including the growing resistance of pest and disease to existing control measures.

    “Countries such as South Africa have had sufficient supply of maize ,and we have been importing from them due to climatic changes like drought ,this has made other importing countries fight for the same supply , we however would like to change this in the near future,” added Kanangire.

    The adaptation of technology will support Africa’s aspirations on food and nutrition security, increase small-scale farmer incomes, increase agricultural output and value addition and boost household food resilience.

    Story by Sally Namuye

  • NCPB offers wheat farmers its silos to cut post-harvest losses

    NCPB offers wheat farmers its silos to cut post-harvest losses

    The National Cereals and Produce Board (NCPB) has invited wheat farmers in Narok County to use its facilities across the country in order to cut post-harvest losses during this harvesting season.

    The board has called on farmers in the county to utilize its facilities to access affordable and professional services in wheat drying, cleaning, grading, silos storage, and weighing.

    The move is expected to help cut post-harvest losses, maintain good wheat quality standards, and enhance food safety.

    “All the services are affordable and are aimed at supporting farmers to alleviate post-harvest challenges like wet grains, lack of storage, use of unsafe drying methods, poor-quality grains that lead to poor market prices, and use of unstandardized weighbridges which do not reflect accurate weights of wheat and defraud farmers of the true value of their grain,” said NCBP in a statement.

    According to the board, it has has both mobile and fixed driers services which are currently available in Narok, Nakuru and Nairobi silos.

    “Whereas farmers require to visit the silo to utilize fixed driers, those who wish to have their wheat dried where it is convenient for them can contact the silo manager Narok so that the mobile drier can be taken to them,” added the board.

    Interested farmers are advised to come together or aggregate their wheat in order for them to be dried collectively.

    Farmers who use NCPB storage facilities will benefit from safe storage as well as have the wheat marketed on their behalf.

    The Board has both conventional stores and Warehouse Receipt System (WRS) intake facilities.

  • Man jailed for vandalizing Kenya Power meter

    Man jailed for vandalizing Kenya Power meter

    A man who vandalized a customer’s electricity meter board in Meru County has been sentenced to 10 years in prison or a fine of Ksh 5 million.

    Brian Wahome who was handed the sentence by Nanyuki Law Court Resident Magistrate Lisper Gakii Nyaga was charged with stealing energy equipment contrary to section 169 (1) (c) of the Energy Act 2019.

    Kenya Power has welcomed the judgment terming it a big boost to the fight against vandalism of its assets.

    “This sentence will go a long way to deter vandalism and other illegal activities on the network. We are relentless in the fight against these crimes as they pose the danger of loss of life through electrocution and undermine the quality of power supply, beyond financial losses to the Company,” said Paul Nyaga Gichovi, Kenya Power Ag. Security Services Manager.

    At the time of his arrest, Wahome was found in possession of two cutouts, a switch, and the meter board.

    “In the fight against illegal activities on the electricity distribution network, we have enlisted the support of various stakeholders including the National Government Administration Officers. I urge members of the public to support this fight by way of reporting any suspicious activities on the network to the nearest police station or Kenya Power office,” added Gichovi.

  • Govt. meets 91pc of FY2022/23 spending plans

    Govt. meets 91pc of FY2022/23 spending plans

    The government managed to raise Ksh 3.24 trillion in total revenue by the close of the 2022/23 fiscal year against the original estimate of Ksh 3.54 trillion according to figures published by the National Treasury.

    Treasury says as at June 30, 2023, revenue from tax receipts amounted to Ksh 1.96 trillion against a target of Ksh 2.07 trillion while non-tax revenue receipts surpassed the projections to reach Ksh 81.99 billion.

    Treasury Cabinet Secretary Prof. Njuguna Ndung’u said funds borrowed domestically to fund the budget totaled Ksh 696.40 billion compared to an earlier projection of Ksh 1.04 trillion.

    Actual receipts from external loans and grants amounted to Ksh 488.31 billion while revenue from other domestic financing sources outpaced the projections to stand at Ksh 16.11 billion while opening balance as at the beginning of the FY2022/23 was Ksh 616.55 million.

    Of the total ordinary raised during the year, the country spent Ksh 1.16 trillion to pay its debt which is equivalent to 59.2pc of total ordinary revenues raised by the Kenya Revenue Authority (KRA).

    The government’s pensions and gratuities exchequer issues by close of the year amounted to Ksh 136.36 billion while salaries and allowances and miscellaneous spending from the Consolidated Fund Services (CFS) was Ksh 15.65 billion. Treasury says total exchequer issues to the CFS were Ksh 1.32 trillion.

    During the year, total recurrent exchequer issues to ministries, departments and agencies amounted to Ksh 1.22 trillion while development exchequer issues amounted to Ksh 308.03 billion.
    By close of the last financial year, the National Government had received total spending to the tune of Ksh 2.84 trillion.

    On the other hand, treasury data indicates that county government received full disbursement amounting to Ksh 399.6 billion which is above Ksh 370 billion Equitable Share allocation as per the County Allocation of Revenue Act (CARA) 2022.

    “The revised Estimates include June 2022 arrears amounting to KSh. 29.6 billion. The County Governments Additional Allocations (No.2) Act, 2022 provides for additional allocations to County Governments in FY2022/2023 amounting to KSh. 22.52 billion to be disbursed through the respective Ministries, Departments and Agencies,” said Prof. Ndung’u.

    Exchequer balance by close of the year was Ksh 2.62 billion.

  • Govt. seeks World Bank support for MSMEs

    Govt. seeks World Bank support for MSMEs

    The government is wooing the World Bank to support bankable Micro, Small and Medium Enterprises (MSME) with good credit score on the Hustler Fund.

    During a meeting with the World Bank officials in the US, Cooperatives and MSME Cabinet Secretary Simon Chelugui said currently there are 1.3 million MSMEs who qualify to access the Hustler Fund through the SME loan product which will be launched within the next three months.

    Already, 800 small businesses have been identified and approved under group loans and another 400 are undergoing scrutiny before being allowed to access the new SME product.

    “You cannot access this fund without paying the previous loan so in a way we are inculcating financial discipline. We will be looking for support from the World Bank to benefit those who have demonstrated capacity, ability and good behavior,” said Chelugui.

    Within eight years since launch, the Hustler Fund has disbursed loans totaling Ksh 33 billion to 22 million borrowers.

    Additionally, loan repayments have reached Ksh 22.7 billion as the mandatory savings also reached Ksh 1.6 billion.

    “As we speak with the projections we are seeing, in the next five years, we will see the Hustler Fund growth in savings to over Ksh 6 billion,” he added.

    Chelugui also said Hustler Fund has ensured financial equality and gender quality in the borrowing market. Currently men make up 53pc of customers on the platform while women borrowers are 4pc.

  • Global supply constraints bite as maize prices rise in June

    Global supply constraints bite as maize prices rise in June

    Kenya’s maize imports fell to 386,864 bags last month compared to a high of 1,169,072 bags reported in March this year according to latest data by the Ministry of Agriculture.

    The drop last month is despite the government granting importers a four month to bring in maize from outside COMESA and EAC duty-free in order to stabilize maize flour prices.

    According to the Food and Nutrition Security Report for June by the ministry, millers attribute the reduction to low supplies in the global market coupled with reduced local demand on account of low consumer purchasing power.

    “It is further noted that although the government gave a duty-free import window for maize outside EAC and COMESA between April to August 2023, very little has been imported by the legible millers and traders as they report inadequate global supplies, higher freight and insurance costs as well as shortage of the dollar. The imported maize arriving at Mombasa is slightly more expensive compared to local supplies,” the ministry stated in the report.

    Agriculture ministry says while there was an increase in maize imports in June from 329,530 bags recorded in May, all the imports originated from the East Africa Community countries led by Tanzania.

    “We have been buying maize from Tanzania but if they get another country wanting to buy their maize, they will use global prices and that will affect us by indirectly,” said Ken Nyaga, United Grain Millers Association (UGMA).

    The duty-free window has had minimal impact on stabilizing maize prices as the average wholesale price of a 90 kg bag increased to Ksh 6,610 from Ksh 6,436 registered in May and Ksh 6,054 in April.

    “By the end of the month of June, the average retail price of 1 Kg packet of unga ranged from Ksh 88-117 compared to Ksh 87.5-101 in May,” the report says.

    Nonetheless, the government projects the maize balance sheet to have a surplus of 13.2 million bags by the end of September 2023 based on carryover stocks of 5.4 million bags and an estimated 0.9 million bags which is to be imported by private sector from the region and outside of COMESA.

    The July/August harvest is projected at 19.6 million bags from the forecasted production as at June.

    However, with Russia pulling out of the Black Sea Grain Initiative, global supply of grain is expected to escalate a move which is likely lead to price increments of wheat among other grains.

    BBC reported that after Russia’s latest move, wheat prices on the European stock exchange soared by 8.2pc on Wednesday from the previous day, to £219.78 (Ksh 39,179) per tonne, while corn prices were up 5.4pc.

    On the other hand, US wheat futures jumped 8.5pc on Wednesday, their highest daily rise since just after Russia’s invasion of Ukraine last year.

    Wheat imports of 90kg bag of wheat in June rose to 1,732,176 from 606,756 bags in May in what is attributed to anticipated harvest in Narok.

    “However, Narok wheat delayed (due to delayed long rains) and harvesting will start towards end of July; though with declined crop area.”

    The wheat balance sheet projected to end of August shows a surplus of 3.7 million bags, assuming private sector imports of six million bags.

    Kenya relies on wheat imports to sustain a consumption of 2,010,858 million bags per month mostly from Russia and Ukraine who are currently engaged in a war.

  • Kenya Pipeline cleared by cabinet to acquire KPRL

    Kenya Pipeline cleared by cabinet to acquire KPRL

    The Cabinet has given the Kenya Pipeline Company (KPC) the go-ahead to acquire Kenya Petroleum Refineries Limited.

    The Cabinet Office, the acquisition of the country’s strategic petroleum refinery will enhance petroleum fuel supply chain which is a major contributor to rising fuel prices.

    “This State intervention is expected to enhance petroleum supply chain infrastructure and thereby result in security of supply and cost-efficiency through reduced demurrage costs and enhanced
    penetration of LPG usage in the country through the development of LPG bulk import handling and storage facilities,” a dispatch from the office stated.

    The acquisition of the facility which has remained underutilized with only the storages working is further backed to foster synergy in the petroleum value chain by optimizing the use of our
    existing downstream petroleum infrastructure.

    After ceasing crude oil processing, KPRL signed a deal with KPC to use its storage facilities which can handle LPG, premium petrol, dual purpose kerosene, automotive gasoil and fuel oil.

    The Tuesday sitting also approved the vacation of the 30pc minimum threshold for local shareholding in foreign ICT firms as contained in the ICT Policy.

    “The policy shift is geared towards facilitating technology and
    knowledge transfer as well as to aid the expansion of the digital economy by positioning the country for increased foreign investments in technology as envisioned in the Administration’s Bottom-Up Economic Transformation Agenda (BETA).”