KBC Channel 1

Author: Ronald Owili

  • Kenya, Indonesia to forge preferential trade agreements

    Kenya, Indonesia to forge preferential trade agreements

    Kenya and Indonesia are in the process of crafting a preferential trade agreement aimed at deepening trade between the two nations.

    Investment Trade and Industry Cabinet Secretary Moses Kuria says the partnership will help facilitate trade, minimize trade barriers, and promote a more favorable business environment between Nairobi and Jakarta.

    Two-way trade volumes between Kenya and Indonesia topped Ksh 28.2 billion, with the trade heavily in favor of Jakarta according to the Economic Survey 2023.

    Speaking during a meeting with Indonesian investors led by Minister for Maritime and Investment Affairs Luhut Binsar, CS Kuria said the two countries have agreed to ramp up investments that will assist Kenya attain self-sufficiency in edible oils through large-scale farming of palm oil, sunflower oil, and soya beans.

    Kenya and Indonesia have also agreed to form a joint technical committee to spearhead a South-to-South collaboration that will allow both countries to promote value addition within their respective countries.

    On green energy, Nairobi and Jakarta have agreed to work together to accelerate Kenya’s geothermal capacity that will aid in reducing the cost of power.

  • Govt goes after culprits for Ksh 700M Nairobi Expressway damages

    Govt goes after culprits for Ksh 700M Nairobi Expressway damages

    Those who participated in the destruction of parts of the Nairobi Expressway during Wednesday demonstrations will be held liable for the losses, Transport, Roads and Public Works Cabinet Secretary Kipchumba Murkomen has said.

    While touring the Ksh 15 billion infrastructure to assess the damages which include vandalism of toll booths, CCTV cameras, meters and barriers and other road furniture, Murkomen said while the exchequer will bear the cost of repair, the government will comb through the CCTV to arrest and prosecute those involved who will also be required to pay for the damages.

    As of today, at least 50 people directly or indirectly involved in vandalizing the road had been arrested waiting to be arraigned in court.

    “Those of you who organized this protest directly or indirectly, please prepare your accounts, prepare your properties, land and whatever you own. We are going to make sure you pay for all the damage that you caused on this infrastructure,” Murkomen warned.

    Murkomen accused the opposition for the damages saying the vandalism witnessed during Wednesday demonstration were pre-planned going by the extent of damages recorded.

    As section of Nairobi Expressway destroyed during Wednesday protests. PHOTO | Courtesy

    “The damages done on the expressway for that short period of time could be anything up to $5 million and if it reaches that level, then under the agreement with Moja Expressway and the people running this infrastructure, it is the same taxpayers we are being told want to reduce the cost of living, who within 28 days must pay that money as a result of the lawlessness and the impact caused by this mass action,” said Murkomen.

    This comes as the government lifted the ban restricting public service vehicles from using the Nairobi Expressway which was launched in June last year after twenty months of construction under the Public Private Partnership (PPP).

    “We are now opening it for PSV vehicles that want to use this route and we want to make sure that we support this infrastructure because the future of delivery of infrastructure in Kenya is no longer going to be purely on using taxpayers’ money. We can use private investments like Moja Expressway Company to do PPP programmes,” he added.

    Other infrastructure destroyed during the demonstration include the Embakasi railway station. However, while no staff was injured, Moja Expressway said the most affected section was a 700m stretch between Syokimau and Mlolongo.

  • Google’s AI chatbot, Bard now available in Swahili

    Google’s AI chatbot, Bard now available in Swahili

    More than 200 million Swahili speakers in Africa are now able to interact with Bard, the Artificial Intelligence chatbot by Google using the language.

    This follows the expansion of the AI chatbot which is now available in more than 40 languages in 59 new countries and territories.

    “We’re excited that this is Bard’s largest expansion to date – we see its global availability as a great democratizer of knowledge,” said Dorothy Ooko, Google Head of Communications and Public Affairs,  Sub-Saharan Africa.

    Swahili is the first African language to be included in the conversational AI service.

    The expansion includes new features that allow users to better customize their experience, boost their creativity, and get more done, the firm stated.

    “The launch of Bard in Swahili is a major milestone as it allows Bard to reach even more people in Africa, where approximately 150 million people speak Swahili. This makes Bard more accessible to everyone in the region, and we believe that it has the potential to be a powerful tool for creativity and learning. We are excited to see how people in the region use Bard to explore their ideas and discover new things,” said Rachael Ndichu, Language Manager at Google.

    Besides Swahili, other mostly spoken languages in the latest expansion include Chinese, German, Spanish, Arabic, and Hindi.

    Users can now access Bard in their preferred language with text-to-speech also enabled in 8 languages.

    “That’s why we created Bard: to help you explore that curiosity, augment your imagination and ultimately get your ideas off the ground — not just by answering your questions, but by helping you build on them,” added Ooko.

    Google said the inclusion of more languages and territories will also help to make Bard more inclusive and safe, through feedback from a wider range of users.

    New updates on Bard also include, listen to responses which is available in over 40 languages and allows users to listen to Bard’s responses once they select the sound icon.

    The sound icon helps users hear the correct pronunciation of a word or listen to a poem or script.

    Users can also now adjust Bard’s responses by changing the tone and style of its responses to five different options: simple, long, short, professional or casual.

    This feature is live in English and will expand to new languages soon.

    Google has also launched four new features to help users get more done. Users can now pin and rename their conversations with Bard, making it easier to revisit conversations that contain important information or ideas later.

    Bard Users will also be able to share responses with friends using shareable links, making it easier to collaborate on projects or get feedback on ideas. Also launched is the feature allowing users to upload images with prompts to Bard.

    Bard seeks to combine the breadth of the world’s knowledge with the power, intelligence and creativity of Google’s large language models. It draws on information from the web to provide responses.

    Google however warns users that as an experimental technology, Bard may occasionally make inaccurate statements in response to user prompts.

  • Insurers Q1 paid claims up 6pc to Ksh 39B

    Insurers Q1 paid claims up 6pc to Ksh 39B

    Insurance firms in Kenya paid out claims amounting to Ksh 39.1 billion between January and March this year which is a 6pc increase when compared to the same period last year according to new data by the Insurance Regulatory Authority (IRA).

    Of the total claims paid during the quarter, general liability claims amounted to Ksh 4.59 billion while non-liability claims rose to Ksh 16.31 billion.

    “Long-term paid 875,980 claims or Ksh 18.20 billion in Q1 2023 an increase of 753.1pc from 102,678 claims or Ksh 19.36 billion paid in Q4 2022,” said IRA.

    IRA says total actionable claims during the first quarter of the year for general liability were 140,787 claims worth Ksh 35.53 billion.

    This was decline in number of claims but an increase in amount from 141,632 claims worth Ksh 35.13 billion reported from October to December last year.

    Long-term actionable claims were 910,640 worth Ksh 28.19 billion, an increase in number and a slight decline in the amount from 137,954 claims amounting to Ksh 29.69 billion during the December quarter.

    Claims intimated and revived reported during the first three months of this year, were 16,128 worth Ksh 3.43 billion and 1.75 million non-liability claims worth Ksh 14.71 billion.

    Even though the number of long-term claims increased by 765.1pc, the amount paid out decreased by 2.9pc to Ksh 18.45 billion.

    The report indicates that general liability claims during the first three months of this year were worth Ksh 2.28 billion while non-liability claims were Ksh 3.58 billion.

    Long-term claims during the first three months of the year were 2,382 worth Ksh 169.92 million.

    The claims payment ratio for the long-term insurance business increased to 96.2pc in terms of numbers and decreased to 64.5pc in terms of amounts compared to 74.4pc and 65.2pc during the previous quarter.

  • ATIDI shareholders dividend pay down to $8.2M

    ATIDI shareholders dividend pay down to $8.2M

    Shareholders of the African Trade and Investment Development Insurance (ATIDI) will receive $500,000 less dividend pay after the firm reported a 6pc decline in net profit last year.

    Following the 23rd Annual General Meeting held in Kigali Rwanda, shareholders of the pan- African insurer, formerly known as African Trade Insurance Agency (ATI), approved the distribution of dividends amounting to $8.2 million (Ksh 1.15B) from $8.7 million (Ksh 1.22) paid out in 2021.

    “The year 2022 presented a formidable challenge – marked by massive headwinds stemming from health, political, economic and climate shocks across the globe. The combination of the COVID-19 pandemic, its lingering economic impact, the Russia-Ukraine conflict and climate change has had some bearings on our overall performance for 2022,” said Manuel Moses, Chief Executive Officer ATIDI.

    During the period, net profits declined from $34.9 million the previous year to $32.8 million last year as gross written premiums also fell 7pc to $133.2 million from $143.5 million.

    “Our Net Written Premium grew by 5pc and our Gross Premium declined by 7pc, resulting mainly from challenging global conditions, but also due to the full amortization of some longer-term contracts that reached natural termination,” said Dr. Birru Ayalew, ATIDI Chairman.

    Following the entry by Angola which became ATIDI’s new member state and Japan’s Export Credit Agency, NEXI which is the newest institutional shareholder, $14.8 million capital injection in June this year, the insurer reported a 7pc growth in total equity to $553.3 million from $516.3 million.

    On the other hand, total assets grew 15pc to $882.1 million from $767.7 million.

    ATIDI says due to disruptive global headwinds which affected many of 21countries it has operations, its gross exposure surged 22pc to $8.1 billion from $6.6 billion reported in 2021.

    Kenya as a shareholder for instance had a net exposure amounting to $135.13 million last year from 125.73 million reported in a year earlier.

  • Kenya lost 10 million bags of maize within five years

    Kenya lost 10 million bags of maize within five years

    Production of Kenya’s number one staple food, maize, has fallen by a whopping 10.9 million in five years to December 2022 signaling the country’s wounded food security efforts.

    Data by the Kenya National Bureau of Statistics (KNBS) indicate that maize production fell from 44.6 million bags harvested in 2018 to 34.3 million bags last year, the lowest in more than a decade.

    Despite efforts by the government to support farmers with subsidies on seeds and fertilizer, maize production continued to fall for five consecutive years against a consumption of 52 million bags, a factor largely blame on among others, poor rainfall and fall armyworm invasion.

    “Production of maize decreased by 6.5pc from 36.7 million bags in 2021 to 34.3 million bags in 2022, largely occasioned by unfavourable weather conditions in 2022,” KNBS stated.

    The country maize production fell to 44 million bags in 2019, 42.1 million bags in 2020 and 36.7 million bags in 2021 according to KNBS Economic Survey Report 2023.

    Selected crop production 2018-2022. SOURCE | KNBS

    The dip in production during the period saw prices escalated forcing to the government to intervene by allowing relaxing duties on imports to plug deficit and ease prices.

    During the five year period the price of maize flour per kilogram shot up 84.2pc, from an average of Ksh 41.32 per kg in 2018 to Ks 71.10 per kg in 2022.

    However according to Agriculture Cabinet Secretary Mithika Linturi, interventions by the government is expected to see the country maize production rise to 44 million bags this year including imports from Zambia which should arrive in due course to stabilize prices.

    “The commitment is once this harvest is done, the cost of unga will come down to levels that Kenyans have not experienced before and that’s why we are also asking for money from Treasury to help stabilize prices,” said Linturi.

    Bad weather also saw the country lose millions of bags of key crops such as beans, potatoes, sorghum and millet.

    Beans production declined by 3.6 million bags from 9.3 million bags harvested in 2018 to 5.7 million bags in 2022 while potato harvest fell from 1.9 million bags to 1.8 million bags over the same period.

    “Similarly, production of beans decreased by 23pc to 5.7 million bags in 2022, while production of sorghum decreased by 20pc from 1.5 million bags in 2021 to 1.2 million bags in 2022. However, production of millet remained constant at 0.7 million bags in 2022,” said KNBS.

  • Asal counties set for Ksh 19.6B state-backed economic initiative 

    Asal counties set for Ksh 19.6B state-backed economic initiative 

    Twenty one counties categorised as Arid and Semi Arid Lands (ASAL) will be the beneficiaries of a Ksh 19.6 billion ($140m) project that targets to boost their drought resilience and enhance their economic inclusion.

    The De-Risking, Inclusion, and Value Enhancement of pastoral economies (DRIVE) project which is funded jointly by the Kenya government, ZEP-RE, Kenya Development Corporation (KDC), and the World Bank Group (WBG), targets

    DRIVE which will be officially launched by Deputy President Rigathi Gachagua targets 150,000 pastoralists in Asal counties of Turkana, Marsabit, Mandera, Wajir, Garissa, Tana River, Isiolo, Samburu, Meru, Tharaka Nithi, Baringo, West Pokot, Narok, Laikipia, Kajiado, Makueni, Kitui, Lamu, Taita Taveta, Kilifi and Kwale.

    “The project is expected to have positive impact on enhancing the climate resilience of pastoral communities, addressing climate change, strengthening commercialization of livestock production, and ensuring the inclusion of the marginalized and vulnerable groups such as women and youth,” said Jonathan Mueke, Principal Secretary for Livestock Development.

    The DRIVE project aims to de-risk pastoral systems at the primary level through an integrated package of financial services, including drought index insurance, savings, digital accounts and financial education, and at the value chain level through de-risking private sector investments that provide reliable markets to pastoralists.

    Additionally, DRIVE is expected to create markets around the livestock value chain, enhance regional cooperation and peacebuilding, climate mitigation (improvement, fodder conservation, and increased productivity), and close the gender gap in access to financial services in the asal regions.

    “We are excited about this project and confident of its potential to address vulnerability to climate shocks amongst pastoralists. It will empower pastoralists to introduce better livestock management and commercial practices. Subsequently, enabling local farmers to take advantage of Kenya’s vibrant livestock export opportunities,” added Norah Ratemo, KDC Director General.

    The first component the project to the tune of Ksh  10.5 billion ($75m) will involve de-risking pastoral production through a package of financial services.

    The package of financial services, include drought index insurance, savings for resilience, digital accounts and financial education and awareness creation.

    “The project expands access of pastoralists to a package of financial services, so that they may receive insurance payouts in their accounts in case of severe drought and use their savings in case of moderate shocks,” said Hope Murera,  ZEP-Re CEO.

    The second component to the tune of Ksh 9.1 billion ($65m) will help pastoralists get better value for their livestock by upgrading standards and equipment to check the conformity of livestock and livestock products to international standards.

    DRIVE project also targets to build the resilience of pastoral communities in Kenya, Ethiopia, Somalia and Djibouti.

    About 250,000 households are expected to benefit from the project representing 1.6 million pastoralists and their dependents across the four countries over a five-year period.

  • Pesapal opens credit line for its SME merchants

    Pesapal opens credit line for its SME merchants

    Payment gateway provider, Pesapal, has announced its entry into the credit market with the rollout of Pesapal Credit targeting small businesses.

    The loan product in partnership with Sokohela will see Pesapal merchants who are majorly small and medium enterprises (SMEs) access flexible loans with payment period of up to one year.

    “SMEs are the engine of our economy, but they often face difficulty accessing credit due to high-interest rates, stringent collateral requirements, lengthy procedures, and lack of financial records. We understand these challenges and have partnered with Sokohela to address them. We’re all about our merchants being confident with their financial decisions and becoming world-class at what they do – regardless of their size,” said Agosta Liko, Pesapal Founder.

    Accorfing to Sokohela Chief Executive Officer Nickson Onyango, the partnership with Pesapal is a strategic move to leverage  payment gateway’s extensive network of merchants and customers across various sectors, such as hospitality, retail, education, and travel.

    “Our partnership is a testament to the power of collaboration in driving innovation and growth in Africa’s digital economy. We are confident we will unlock new capital streams for SMEs, enabling them to scale efficiently. We are excited to partner with Pesapal, a trusted and reputable payment service provider in Kenya. Together, we aim to reach out to more SMEs and offer them convenient and affordable credit solutions that suit their needs. We believe that by doing this, we are supporting SMEs and our country’s social and economic development,” said Onyango.

    Pesapal says the credit product which does not require borrowers to have collateral will use digital scoring for loan approvals as well disbursement via the Pesapal platform.

    “We design our tools on the Pesapal platform to help entrepreneurs achieve their business goals without overextending. Finance terms are transparent and easy to understand, supporting comfortable repayment management,” added Agosta.

    The merchant credit solution is powered by Pesapal’s proprietary credit scoring algorithm that analyzes the transaction data of SMEs from various sources, such as mobile money, e-commerce platforms and POS systems.

    This allows the firm to offer customized and affordable loans to SMEs based on their cash flow and business performance.

  • Airtel Kenya rolls out 5G network in sixteen counties

    Airtel Kenya rolls out 5G network in sixteen counties

    Airtel Kenya has announced the availability of its high speed 5G network in sixteen counties in Kenya becoming the second mobile network operator to do so.

    The mobile service provider Managing Director Ashish Malhotra says Airtel Kenya has constructed more than 370 active 5G sites in 180 wards across the country.

    “Today marks a significant milestone as we proudly introduce our 5G network, a state-of-the-art infrastructure that provides data speeds up to 10 times faster than 4G, incredibly low latency, and the ability to seamlessly connect billions of devices. Airtel 5G will revolutionize various sectors, such as smart cities, education, healthcare, Agri-tech, transport systems, entertainment, and more, shaping the future of Kenya,” said Malhotra.

    Since the first launch by Safaricom in October last year, Kenya has added 373, 573 5G subscriptions according to the third quarter sector statistics report by the communications authority (CA).

    Speaking during the launch, Information, Communication and Digital Economy Cabinet Secretary Eliud Owalo said the continuous expansion of the fifth generation network in Kenya by mobile network operators is will help spur economic growth through establishment of smart industries, industrial automation and enhance service delivery in among other sectors, health, education, transport and agriculture.

    “The launch of this platform is yet another major milestone, in the growth of Kenya’s mobile telephony and data services,” said Owalo.

    Digital Economy CS Eliud Owalo experiencing gaming.

    The telco says Airtel 5G network will be concentrated in specific zones, including highly populated residential areas, malls, hospitals, city centers, and central business districts.

    The designated 5G zones will be clearly marked for customers’ convenience in identifying and accessing faster internet speeds so long as they have 5G-ready devices.

    “Our 5G launch positions Airtel at the forefront of a technological revolution that exemplifies our dedication to progress, innovation, and empowering our people. The benefits that will transform businesses and industries will create opportunities to further unlock Kenya’s potential,” added Anthony Shiner, Airtel Africa Chief Commercial Officer.

    As at March this year, out of 47.96 million mobile data subscriptions, 15.8 million were on 2G, 3G had 10.6 million while 4G had the highest subscriptions at 21.2 million.

    Airtel Kenya currently has 3,200 sites which provide network coverage of 89pc in all 47 counties. The telco is targeting to roll out 650 additional sites this year of which 50pc have been deployed.

  • Treasury secures Ksh 70B to fund stalled projects

    Treasury secures Ksh 70B to fund stalled projects

    The National Treasury has secured Ksh 70 billion ($500m) through a syndicated loan organized by a consortium of five international lenders.

    This is part of the Ksh 84 billion ($600m) that Kenya was seeking in the international market to finance various projects in the 2022/2023 budget.

    A statement by the five lenders has not disclosed the interest the three and five-year loans will attract.

    Treasury plans to borrow Ksh 200 billion from the international market in the fiscal year 2023/24 to repay maturing debts and fund stalled projects, especially in the transport sector.

    The funds are expected to ease the cash flow crisis and boost the country’s dwindling foreign exchange reserves which have taken a hit from the weakening shilling.

    Treasury coffers are cash-strained amid debt maturity pressure coupled with highly ballooned debt-servicing costs in recent years and is considering a raft of interventions including going for another Eurobond to help deal with the situation.

    In March this year, Kenya approached four international lenders namely, Standard Chartered Bank of the UK, US-based CitiGroup, and South African lenders Standard Bank and Rand Merchant Bank to arrange a Ksh 84 billion facility.

    However, the markets have been unfavorable due to dollar pressure and the ongoing commodity market crisis that has made international financial markets volatile.

    In the current financial year, Kenya is tapping Ksh 405 billion loan at the Africa Export and Import Bank whose cost will vary depending on the purpose of every withdrawn portion during the three years that the facility will be active.

    Expert says the trade financing route is expected to be cheaper than the concessional loan withdrawals since the bank will only factor in the commissions for every project supported.