KBC Channel 1

Author: Ronald Owili

  • Kenya’s internet capacity up 20pc on heavy data use

    Kenya’s internet capacity up 20pc on heavy data use

    Kenya’s total data consumption rose 20.4pc in three months to March this year in what the Communications Authority attributes to increased internet use among consumers.

    This comes as the government targets to increase internet connectivity in the country with additional 100,000km of fibre optic cable through the digital superhighway master plan.

    Latest data by the authority indicates that between January and March this year, the total international internet bandwidth available in the country grew from 11,970.53Gbps to 14,413.053Gbps supported by capacity upgrade of the TEAM fibre optic cable.

    “There has been a tremendous shift from voice to data, new projects have been initiated including rural tower expansion, 4G, 5G and fibre infrastructure rollout. As seen during the referenced period, TEAMS upgraded their cable of the available bandwidth to meet the consumers’ needs as the demand for data/Internet services steadily increases,” said CA in its Third Quarter Sector Statistics Report.

    CA says total utilized undersea bandwidth capacity during the three months period increased by 25.5pc, with 5,161.918Gbps being used in the country and 2,953.820Gbps sold outside the country.

    Majority of consumers however continue to access the internet using 62.96 million available mobile devices in the country out of which 33.5 million are feature phones and 29.5 are smartphones.

    “The total mobile data/Internet subscriptions stood at 47.96 million out of which 67.1 percent were on mobile broadband. The uptake of mobile broadband has continued to increase as the consumers desire faster Internet speeds,” said the authority.

    Kenya now has 15.8 million 2G subscriptions, 10.6 million 3G subscriptions, 21.2 million for 4G and 373.573 for 5G.

    Safaricom leads mobile network operators in the number of broadband subscriptions having 64.3pc of subscribers, followed by Airtel with 29.6pc. Telkom Kenya, Jamii Telkom and Equitel have 3.9pc, 1.1pc and 1pc respectively.

    Safaricom also leads in the number of fixed data subscriptions with 399,333 subscribers representing 35.9pc of the market share. Jamii Telecom is second with 23.2pc market share followed by Zuku owner, Wananchi Group with 22.7pc of the market share.

    On the other hand, total number of users for .KE domains stood at 104,725 with .CO.KE sub-domain recording the highest market share of users at 89.9pc.

    The number of cyber threats detected in the quarter under review declined 24.9pc to 187.7 million from 249.9 million recorded during the second quarter.

    According to the report, total number of mobile SIM card subscriptions increased 0.5pc to 66.1 million from 65.7 million.

  • Mozilla Africa grants Kenyan innovators Ksh 13M

    Mozilla Africa grants Kenyan innovators Ksh 13M

    Six innovations by Kenya developers have secured a Ksh 13 million grant from Mozilla Africa to help them accelerate and scale to bigger ventures.

    Through the Mozilla Africa Mradi Innovation Challenge organized by the internet tech giant in collaboration with Nairobi City County Government (NCCG), three tech start-ups, Getpayd, Deaf Elimu and Hali Halisi and three student innovators, Classify Me, Audred and Mama Pesa were selected during the pitching process.

    “From 2015 Mozilla has distributed over $20 million through fellowships and awards to support individual and collective actions that nurture unique innovations that benefit communities,” said Mitchell Baker, Mozilla Corporation Chief Executive Officer.

    The programme seeks to identify African tech entrepreneurs, startups and tech students who can benefit from an acceleration programme that provides technical support, access to grants and market access for their products.

    The initiative is designed to promote innovation led by and grounded in the unique needs of users on the African continent.

    “Nairobi City County Government is working with Mozilla Africa Mradi to ensure that tech start-ups and innovators get access to grants and are enabled to access venture capital investments locally and globally,” added Johnson Sakaja, Nairobi County Governor.

    To further support innovation, the county has established an incubation hub at the Eastlands Library in Maringo Hamza Ward in Makadara that supports at least 20 startups on investor readiness and coding for kids aged 7-13 years.

    “Advancing Africa’s Digital Economy is at the heart of ATU’s mandate. We work to create harmonized digital economies through standardized policy and regulatory frameworks for the African Region,” said John Omo, African Telecommunication Union (ATU) Secretary-General.

    The Mozilla Africa Mradi Innovation Challenge was launched in Nairobi in May 2023 with a call to tech innovators in Africa to develop creative solutions for unique African needs.

  • UFAA taps huduma centres to speed transfer of unclaimed assets

    UFAA taps huduma centres to speed transfer of unclaimed assets

    The Unclaimed Financial Assets Authority (UFAA) is targeting to reunite unclaimed assets worth at least Ksh 20 billion to rightful owners using Huduma Centre outlets across the country.

    The first phase of the reunification drive in partnership with Huduma Kenya targets three counties of Nakuru, Nyeri and Kiambu.

    UFAA Chief Executive Officer John Mwangi said the “Claim your ‘Lost and Found’ Cash Karibu Nawe” campaign which is underway in Nakuru County seeks to encourage members of the public to check the status of any unclaimed financial assets registered in UFAA database using the short code *361# or official website.

    “We are leveraging on Huduma Kenya infrastructure to reach wananchi at mashinani. This is a great opportunity to fasten the reunification process as Huduma centre will act as the Authority’s points of contact for people enquiring about their ‘lost and found’ assets,” said Mwangi.

    UFAA currently holds unclaimed financial assets comprising Ksh 27.28 billion in cash and 1.2 billion units of unclaimed shares.

    The authority has also reunited about Ksh. 2 billion and 39.7 million units of shares with rightful beneficiaries.

    “We are hoping that by the end of this drive, at least three quatres of these monies will have been reunited with rightful owners. It is imperative that these monies are plowed back into the economy,” he added.

    The drive is further aimed at encouraging holding institutions in possession of a financial asset on behalf of an owner such as banks, insurance companies, saccos to submit and surrender unclaimed financial assets in their possession.

    “Huduma Kenya’s vision is to see Government services accessible to all citizens. This partnership brings UFAA services closer to mwananchi through one of our channels, the Huduma Mashinani Outreach,” said Benjamin Kai, Huduma Kenya CEO.

    Similarly, the authority has deployed the Unclaimed Financial Assets Management System (UFAMS) to facilitate online filing and tracking of claims, and automated backend processing to enhance reunification.

  • CBK unperturbed by VAT hike on fuel, predicts growth above 5pc

    CBK unperturbed by VAT hike on fuel, predicts growth above 5pc

    The Central Bank of Kenya (CBK) new governor Dr Kamau Thugge projects inflation rate to subside to within medium term target by end of the third quarter.

    This is despite increases in Value Added Tax (VAT) on petroleum products from 8pc to 16pc by the government.

    During a post Monetary Policy Committee (MPC) on Tuesday, Dr Thugge was optimistic that inflation will ease to between 2.5pc-7.5pc by September 2023, supported by reductions in key levies charged on imports of the products.

    “There are offsetting factors as you are aware that the Import Declaration Fee has been reduced from 3.5pc to 2.5pc and similarly the Railway Development Levy has also been reduced from 2pc to 1.5pc. These will mitigate any impact that may arise from VAT on fuel but we do expect some increase in July,” said Dr Thugge.

    Non-food-non-fuel inflation continues to impact the overall rate of inflation, rising to 4.3pc in May from 4.1pc in May which according to the governor, indicates “persistent underlying inflationary pressures in the economy”, a move that has forced the committee to tighten its monetary stance.

    The Finance Act which comes into force on July 1, 2023 will now see the Energy and Petroleum Regulatory Authority apply the new rate in its next review, setting consumers for possible higher transport costs.

    The governor is also projecting Kenya’s real Gross Domestic Product (GDP) to register a growth of above 5pc this year from 4.8pc last year with budgetary allocations targeting key value chains.

    Additionally, the Ksh 140 billion ($1b) Development Policy Operation (DPO) Kenya tapped from the World Bank last month to provide low-cost budget financing is projected to improve private sector cash flow and support growth with settling of pending bills to suppliers and in turn reduce non-performing loans.

    “National Treasury will actually now spend and also transfer the resources that are required to the national and county governments. With national government and county governments paying (suppliers) we would expect the level of non-performing loans to decline,” Dr Thugge added.

    During Monday’s sitting, the MPC hiked benchmark rate by 100 basis points-an 84 months high- from 9.5pc to 10.5pc. The next MPC meeting is scheduled for July.

  • Central bank hikes interest rates to 10.5pc

    Central bank hikes interest rates to 10.5pc

    The Central Bank of Kenya has increased the base lending rate by 100 basis points as inflation stayed above medium term target in May.

    The central bank Monetary Policy Committee in its sitting stated that the move to tighten its monetary policy comes on the backdrop of sustained inflationary pressures as inflation rate rose to 8pc last month from 7.9pc in April on account of increases in non-fuel non-food index.

    “The MPC this concluded that there was scope for a further tightening of the monetary policy to anchor inflation expectations. The Committee, therefore, decided to raise the central bank rate (CBR) from 9.50pc to 10.50pc,” Dr Kamau Thugge, CBK Governor and Chair of MPC.

    MPC further expects inflation rate to remain high in the near term on account of increased electricity prices following the upward review of electricity tariffs in April by the Energy and Petroleum Regulatory Authority and the removal of the fuel subsidy.

    Fuel prices are further expected to rise from next month with the increase of Value Added Tax (VAT) on petroleum products from 8pc to 16pc.

    For borrowers, the move by the regulator now means higher cost of loans a move likely to reduce private sector demand in subsequent months.

    Private sector credit stagnated at 13.2pc in April and May.

    However despite risks emerging from the war in Ukraine and tightening on monetary policy in advanced economies, the central bank expects strong economic growth in the first half of the year propped by services sector and recovery in the agriculture sector.

    The committee also noted a strong growth in the export receipts which has grown 5.5pc in a year to May 2023 supported by higher exports of tea and manufactured goods.

    CBK says foreign exchange reserves of which currently stands at $7.4 billion which equals to 4.07 months of import cover provides enough buffers for short term shocks in the forex market.

    This comes as the local currency continues with its free fall against the dollar, closing at a mean rate of 140.44 during Monday trade.

  • Treasury directs state agencies to prioritize pending bills payment

    Treasury directs state agencies to prioritize pending bills payment

    The National Treasury has directed accounting officers of state corporations, funds and semi-autonomous agencies to prioritize payment of pending bills before the closure of the current financial year ending June 30, 2023.

    Data from treasury indicates that out of the Ksh 537.2 billion worth of pending bills accrued by the National Government as at March 31, 2023, State Corporations and Semi-Autonomous Government Agencies (SAGAs) account for Ksh 450.2 billion of unpaid bills to suppliers and contractors.

    In a circular to all chief executive officers of state corporations and SAGAs), funds, vice chancellors of public universities and principals for Technical Vocational Education Trainings (TVETS) and Teachers Training Colleges (TTCs), National Treasury and Economic Planning Cabinet Secretary Prof. Njuguna Ndung’u directed the accounting officers to ensure ongoing commitments which do not involve awarding of contracts are honored.

    “Accounting Officers are, therefore, required to service the continuing contractual obligations as per the contract agreement to avoid accumulation of expenditure arrears (pending bills),” said Prof. Ndung’u.

    In the Supplementary Appropriation Act, the government has set aside Ksh 60 billion to clear pending bills.

    The payment of the bills is expected to stimulate economic activity especially among small businesses whose financial positions have been negatively impacted by the delayed payments.

    Treasury plans to establish a Pending Bills Verification Committee from the next financial year in what Prof. Ndung’u said in his maiden budget speech will help carry analysis of the stock of all pending bills and advise on how the bills will be settled.

    “Once the outstanding pending bills are cleared by the verification Committee, the National Treasury will direct all Entities to ensure strict adherence to Public Finance Management Act, 2012 and clear pending bills as a first charge on the budget of the concerned Entity in the subsequent financial year,” he earlier stated.

    The chief executives are also urged to ensure bank reconciliations are completed and submitted by 10th next month as well as surrender all imprests by close of the current financial year.

    “All sanding and temporary imprest should be surrendered on or before 30th of June 2023. In line with Regulations 92(7) of the Public Finance Management Act, 2015, an Accounting Officer must ensure full recovery of un-surrendered imprest,” said Prof. Ndung’u.

    The accounting officers are further required to submit details of the current bank accounts and their status, annual financial statements, form team to prepare the financial statements, implement audit recommendations from previous years, status of donor funded projects and disclose their climate finance expenditures and disaster related expenditures.

  • Angela Ndambuki assumes role as KAMP chair

    Angela Ndambuki assumes role as KAMP chair

    The Kenya Association of Music Producers (KAMP) has reinstated Angela Ndambuki as it chairperson with immediate effect.

    The seasoned industry professional was appointed for a second stint at the helm of the music producers lobby group during a special meeting held on June 22, 2023.

    “This decision reflects the Board’s recognition of Ndambuki’s outstanding leadership qualities, dedication, and remarkable achievements in the music industry,” said KAMP management.

    KAMP credits Ndambuki for playing a pivotal role in advancing the interests of music producers and artists in Kenya.

    During her previous tenure, KAMP says she oversaw the renewal of it’s license by industry regulator the Kenya Copyright Board (KECOBO) after a two-year hiatus, increased collection of royalties by the association,  and leading the first music representatives benchmarking trip to South Africa which culminated in the signing of a memorandum between KAMP and South African Music Performance Rights Association (SAMPRA).

    Ndambuki is currently the Regional Director for the International Federation of the Phonographic Industry (IFPI) in Sub-Saharan Africa.

  • Murang’a County reaps big from off-grid hydrosolar power

    Murang’a County reaps big from off-grid hydrosolar power

    Amid the rising cost of grid power, residents of Gikoe village in Murang’a County are benefiting from affordable alternative electricity whose realization started with dreams of a curious inventor, John Magiro. 

    Developed at a cost of Ksh 105.7 million (€700,000) with technical and funding support from National Environment Trust Fund (NETFUND),World Wildlife Fund for Nature (WWF), the Energy and Petroleum Regulatory Authority (EPRA) Hydrobox, a Belgian equity investor,  and Belgium’s Belgium’s FINEXPO, Magiro Hydro Electricity power plant provides 0.5 megawatt of electricity to more than 2000 households in Gikoe village which has in turn helped accelerate the government’s rural electrification programme.

    The power plant which will be scaled to reach 3000 households is currently powering primary and secondary schools in the area, a data center and a tea factory in the area at 20pc lower tariff that what consumers connected to the grid pay.

    Data from the Kenya National Bureau of Statics (KNBS) indicates that year-on-year price of a 50kwh of electricity to May this year has risen 66.5pc.

    Through containerized hybrid hydro-solar power technology, developer Hydrobox is targeting to scale the innovation to reach more than 1 million people by harnessing mini and micro hydro power generation across small rivers in the country.

  • CFAO Motors, Stanbic Bank enter asset finance agreement

    CFAO Motors, Stanbic Bank enter asset finance agreement

    Consumers seeking to purchase new motor vehicles from CFAO Motors Kenya will have a chance to access full financing from Stanbic Bank Kenya.

    This follows an asset finance agreement signed between the two firms which will also offer customers a repayment plan of up to six years.

    “This partnership between CFAO Motors and Stanbic Bank will therefore go a long way in easing the financial load on the customer who wish to enjoy the benefits of buying brand new vehicles,” said Joshua Anya, CFAO Motors Kenya Deputy Managing Director.

    Under the agreement, customers will access the vehicle asset financing at zero facility fees and receive a 60 and 90-day repayment holiday for passenger vehicles and school buses respectively.

    In addition, customers will receive competitive insurance terms facilitated by Stanbic Insurance Agency.

    “Stanbic Bank is committed to continue leading the market with customer centric innovations that deliver our customers’ expectations by strengthening our Asset Financing offering,” added Nelly Waithaka, Stanbic Bank Kenya Head of Products.

    According to CFAO Motors, buyers will have a wide range of automotive models to chose from countrywide following its partnership with DT Dobie.

    The brands under CFAO Motors Kenya and DT Dobie include Toyota, Suzuki, Volkswagen, Mercedes Benz passenger vehicles, Yamaha motorbikes, and the Hino, Hyundai, Sinotruk and Mercedes Benz Actros trucks and buses.

    Customers taking up the offer will be required to first visit the CFAO Motors showroom to choose the vehicle they wish to purchase, before receiving an invoice from CFAO Motors that they will present to Stanbic Bank for processing.

  • Ticketsasa unveils flexible payment plans for domestic tourists

    Ticketsasa unveils flexible payment plans for domestic tourists

    Ticketsasa has announced expansion of its booking services with the introduction of a flexible payment plan local holidaymakers.

    Ticketsasa Brand Manager Janette Ronoh has said the JazaJaza payment plan enables travellers to book their dream local destinations by paying for their preferred holiday package in six installments.

    “We are always looking for innovative ways to make travel accessible to more people. Through JajaJaza, we offer our customers the flexibility to book and pay for their holidays across the year,” said Ronoh.

    The events ticketing firm has similarly partnered with hotels, lodges, tour operators, and transport companies in what Ronoh says will allow travellers access curative travel packages and exclusive offers.

    “We believe that travelling should be an experience to enjoy and for discovery, and we want to make it possible for everyone to do so without necessarily having to break the bank,” she added.

    The launch of the plan comes as local and international travel register upward growth following the COVID-19 pandemic.

    International tourist arrivals increased 70.5pc to reach 1,483,752 last year from 870,465 recorded in 2021 as earnings topped Ksh 268.09 billion, a 83pc increase year-on-year.

    JazaJaza packages will enable consumers with varying spending budgets access holiday destinations among others, Maasai Mara, Diani Beach, Mount Kenya, and the Rift Valley.

    Other available travel arrangements include flights, hotels, safaris, and day trip activities.