KBC Channel 1

Author: Ronald Owili

  • Treasury to lock out Kenya Power from electricity transmission

    Treasury to lock out Kenya Power from electricity transmission

    Kenya Power will no longer be responsible for construction of electricity lines if proposals by National Treasury and Economic Planning Prof. Njuguna Ndung’u sail through.

    During a budget speech for the financial year 2023/2024 made Thursday, Prof. Ndung’u announced four points action plan that target to turnaround electricity distributor currently choking in debt.

    Prof. Ndung’u said government is keen on ensuring KPLC is financially sustainable by restructuring its balance sheet mainly focusing on the huge loan balances, payables and receivables in order to reduce liquidity gaps facing the company.

    If the proposals are adopted by the National Assembly, Kenya Power will be forced to transfer all its transmission and power lines assets to the Kenya Electricity Transmission Company (KETRACO).

    “The government will settle outstanding Rural Electrification Scheme (RES) operations and maintenance costs which has a deficit of Ksh 19.4 billion as of June 2022 and ensure that KPLC and Rural Electrification and Renewable Energy Corporation (REREC) enter into a commercial contract for future rural electrification scheme maintenance cost,” said Prof. Ndung’u.

    The government also plans to implement a turnaround strategy that will ensure the power distributor reduces system losses from 22.4pc to 14.4pc by end of June 2025.

    Treasury also proposes to shake up Kenya Power’s governance by giving private sector players fair representations to reflect its shareholding structure.

    According to the CS, the measures which commenced in the FY2022/23 are aimed at turning around Kenya Power and Kenya Airways with the aim of improving their efficiency, reducing costs and increasing revenues.

    “The government policy stance is to turnaround the airline and position it as a pan-African carrier that will ensure it is run with profitability and sustainability objectives eventually reducing the airline’s dependency on budgetary support,” he added regarding KQ.

    Prof. Ndung’u has further urged the National Assembly to accelerate the passing of the Privatization Bill 2023 submitted last month which seeks to repeal the current Privatization Act of 2005 and restructure State Owned Enterprises (SOEs).

    Treasury backs enactment of the bill to enable selected SOE to achieve their full potential by entrenching commercial principles and reduce their reliance on the exchequer funding.

  • Rid industry of quacks, President Ruto urges engineers

    Rid industry of quacks, President Ruto urges engineers

    President William Ruto has called on the engineering professional bodies to be strict in shielding the industry from unqualified actors blamed for poor workmanship that has previously resulted to loss of lives and property.

    Speaking during the 4th Engineering Partnerships Convention in Nakuru County organized by the Engineers Board of Kenya (EBK), President Ruto challenged the industry to deploy tougher measures that will allow only qualified engineers to practice in the country.

    “Through the Board, we are facilitating total compliance with the highest standards of engineering by building contractors and developers. It should no longer be possible for projects to employ unqualified people or to proceed without employing an engineer altogether,” said President Ruto.

    Cases of buildings collapsing and claiming lives and loss of property are not new to Kenya with latest incident being in Mombasa County where a four-storey building turned into rubble just days after being declared unsafe.

    While no casualty was reported due to early warnings other than loss of property for tenants who had little time to vacate the condemned premise, the aftermath put the focus once again on the engineering profession.

    “Qualified engineers must supervise building works from the commencement to completion. A zero tolerance policy for non-compliant structures must be employed in order to take action against people responsible for collapsing buildings,” he added.

    This comes as the government commits to announces it will admit 500 engineer trainees to the Graduate Engineers Internship Programme in order to build capacity in the profession and support government Bottom-up Economic Transformation Agenda in sectors such as agro-industrial processing, manufacturing, affordable housing, road and infrastructure development and energy.

    “We see alternatives to the internal combustion engine emerging locally and several other technology trends. I believe the local engineering profession holds the keys to unlock and unleash the potential of these emerging technologies so that they become a reality for the benefit of Kenyans,” said Kipchumba Murkomen, Roads and Transport Cabinet Secretary.

    The programme by EBK is expected to accelerate time it takes for one to become an engineer from 7-12 years to three years and cut over 7000 estimated shortage for professional engineers that Kenya is facing.

    “Kenya has a 3, 000 professional engineers and over 23,000 of Graduate engineers. Our strategic intent is to have 10,000 professional by 2027,” said Margaret Ogai, EBK Chief Executive Officer.

    According to UNESCO estimates, middle-income countries are required to have a ration of professional engineers to country’s population as 1:5,000 persons.

  • Shelter Afrique says partnerships key to Africa affordable housing

    Shelter Afrique says partnerships key to Africa affordable housing

    Shelter Afrique has called on African governments to explore more partnerships that will help realize development of affordable housing to citizens.

    Shelter Afrique Managing Director Thierno-Habib Hann, says housing occupies a central position within the framework of the Sustainable Development Goals (SDGs), hence the setting up of sustainable partnerships will ensure affordable housing provision is accelerated.

    “Adequate housing is one of the key components of Sustainable Development Goals and achieving housing goals will require collaborative efforts and forging fruitful partnerships among key players inthe housing sector,” said Hann.

    According a research by the pan-African housing financier’s Centre of Excellence (CoE), overall housing shortage in Africa is estimated at more than 56 million units, out of which, more than 90pc are in the affordable housing bracket.

    “The solution to resolving this shortage lies in a well-coordinated and collaborative effort among all stakeholders, including governments, multilateral institutions, non-profit organizations, and the private sector. Collectively, we maintain our commitment to inventive strategies in tackling housing needs,” he added.

    Hann was speaking on the sideline of the United Nations Habitat Assembly held last week in Nairobi.

  • Japan’s NEXI joins ATI shareholding with Ksh 2B equity investment

    Japan’s NEXI joins ATI shareholding with Ksh 2B equity investment

    Nippon Export and Investment Insurance (NEXI) has announced equity investment totaling Ksh 2.07 billion ($14.8m) to the African Trade Insurance Agency (ATI) to become the agency’s newest shareholder.

    ATI Chief Executive Officer Manuel Moses says the capital injection from NEXI which is Japan’s export credit agency will help promote Japanese trade and Foreign Direct Investment (FDI) into Africa under the Tokyo International Conference on African Development (TICAD).

    “We are confident that as Japan expands its FDIs and footprint into Africa, its membership in ATI will not only improve our institution’s capacity to support trade and investment across the continent, but will also attract more Japanese investors seeking for business opportunities in Africa’s population of over 1.2 billion people in the single market, under the African Continental Free Trade Area (AfCFTA),” said Moses.

    NEXI investments stems from TICAD7 Summit held in Japan in 2019 where the two agencies announced the establishment of a “Japan desk” in ATI’s Nairobi office to support African developmental and commercial projects so that Japanese companies can obtain easy access to reliable risk mitigation solutions provided by ATI.

    According to the Nairobi-based ATI, the “Japan desk” has promoted support to both Japanese and African business with an active gross exposure valued at $1.1billion in the information and communication, financial and Insurance activities, and construction sectors in Côte d’Ivoire, Egypt, Ethiopia and Nigeria.

    “I am truly honored to be able to announce that NEXI is now officially a member of ATI. We are extremely grateful of all the guidance and support from ATI during the entire process. As a member of ATI from this point on, NEXI will continue to work closely with ATI to encourage more Japanese companies to make international trade and investments in Africa,” added Atsuo Kuroda, NEXI Chief Executive Officer.

    The Japan desk is also responsible for the 10-year Foreign Direct Investment Risk Insurance cover provided by ATI to Japan’s Sumitomo Corporation on its investment in Safaricom Ethiopia Plc where NEXI provided reinsurance support to ATI.

    Safaricom Ethiopia Plc which is a joint venture between Kenya’s Safaricom Plc, Sumitomo Corporation, CDC, Vodacom and UK Sovereign Investment Fund is one of the single largest Japanese Foreign Direct Investment (FDI) in the Africa and Ethiopia.

    On the other hand, ATI has provided insurance policies to protect some of Japan’s private sector against the risk of non-payment on transactions valued at Ksh 686 billion ($4.9b).

    Some of this financing has helped African countries to reprofile short-term and unaffordable foreign and local debts, into longer tenures and more affordable debt servicing for African Governments.

    With the completion of membership, ATI expects to support many more Japanese manufacturers, traders, exporters and financial institutions seeking for business opportunities and market access across Africa in the coming years.

  • Engineers’ board says skilled manpower key to economic growth

    Engineers’ board says skilled manpower key to economic growth

    Engineers Board of Kenya (EBK) has said successful implementation of key economic plans by the government will be pegged on availability of professional engineering services in the country.

    According to the board, the country is experiencing massive boom in construction and infrastructure while at the same time facing a shortage of engineering skills.

    During the upcoming 4th Engineering Partnerships Convention which kick-off Wednesday, the board will seek to explore mechanisms that will help will build not only the numbers of engineers in the various sectors but also the capacity and skills of the engineers.

    “Successful implementation of Kenya Kwanza Manifesto, Kenya Vision 2030, AU Agenda 2063, and Sustainable Development Goals will call for a considerable shift in the manner in which Kenya deploys and employs her resources to acquire the necessary capacity,” said EBK.

    EBK says engineering capability is critical to driving national, regional, continental, and global development agendas hence the need to ensure per capital number of engineering professional in Africa, which is among the lowest in the world, is enhanced.

    “There is, therefore, a need to develop the Kenyan engineering value chain to build Kenya’s engineering capability as a catalyst for social-economic transformation thereby creating a high quality of life for our citizens,” added the board.

    During the three-day convention, discussions will cover four pillars including engineering and economic development which tackle digital transformation and opportunities for engineering services, innovative financing for infrastructure projects, agricultural transformation and inclusive growth and accessible and adequate housing.

    The second pillar of discussion will look at developing the engineering capabilities through supply and demand of engineers, role of universities in acceding to the Washington Accord and engineering research and academia.

    The fourth pillar will tackle liberalization of professional engineering services in the East African Community (EAC) and the African Continental Free Trade Area (AFCTA) through continental performance of the implementation of Agenda 2063, building local, regional and global competitiveness in liberalized markets and enhancing the mobility of engineers under the EAC Mutual Recognition Agreement.

    Under the fourth pillar, EBK intends to hold discussion on how to addressing the legal, regulatory, and operational gaps for safe, efficient, and effective infrastructure.

    Delegates will explore ways of building engineering technical capacity in national and county governments, implementation of Scale of Fees for Professional Engineering Services (SCOF 2022) and how to strengthening the regulatory and institutional frameworks.

    The three day event which will be held from 14th to 16th June in Nakuru County will be graced by President William Ruto, Roads and Transport Cabinet Secretary Kipchumba Murkomen among other high ranking government officials.

  • Vumistream to localize monetization for African live-stream creators

    Vumistream to localize monetization for African live-stream creators

    Africa’s first live-streaming social media site, Vumistream, plans to begin paying content creators who publish their works on the platform using local monetization tools such as mobile money.

    Vumistream.com which was launched its services in the continent this month provides tools for content creators to earn from their livestreams through tips, subscriptions, pay-per-view (premium livestreams), live e-commerce, and webinars.

    Vumistream Chief Executive Officer Wilfred Kinyanjui says the platform enables content creators across to make money from the digital creations and allow users to follow their favorite creators, engage with their streams, tip them, subscribe to their channels, and buy products promoted during livestreams.

    “We provide a platform for people to express themselves, build communities, and earn an income in an enjoyable, engaging way. Our goal is to empower African content creators by providing the means and chances to earn a living from their enthusiasm for making and distributing content online,” said Kinyanjui.

    The launch of the platform comes amid growth in African live-stream content which according to Statista is projected to be worth over Ksh 17.4 billion ($124.5 million) by 2023.

    “We anticipate seeing novel kinds of content, interactions, and business models arising from Vumistream as we keep developing features that satisfy the requirements of our rapidly expanding community of creators and viewers throughout Africa,” he added.

    The platform features a range of content including lifestyle vlogs, comedy skits, music, gaming, news commentary.

    Vumistream allows creators to go live using their mobile phones or from a desktop using readily available encorders.

    Additionally, the platform offers content creators tools to enhance their streams, including real-time viewer stats, virtual gifts, and video effects.

    Viewers will also discover new creators through Vumistream’s recommendations engine and also browsing trending streams.

    “Having been one of the beta testers I am super excited at the opportunity to turn my passion for creating videos into a source of income,” says Alex Mwangi, a video gamer from Kenya.

    “I can now plan to support myself financially by doing what I love. The Vumistream team has really worked hard to make it easy for me to go live with a simple user interface. I’m really excited about the potential to grow my channel and business on the platform.”

    Plans are underway to incorporate features such as live-stream collaborations, exclusive fan clubs, profile verifications, live-stream translations, webinars, and pay per view for premium livestreams.

    Vumistream is currently self-funded but actively raising funding to further develop its live streaming and e-commerce technology as well as expand into new markets.

    Other features to be included in the future include Vumi TV where users will be able to stream movies and shoes, Vumilisten for music and podcasts and Vuminews for news and entertainment.

    Vumistream which has its headquarters in the United Kingdom is currently available in 10 African countries with plans to expand into more countries and continents by 2024.

  • Jumia Kenya agents hit 25,000 countrywide as rural orders rise

    Jumia Kenya agents hit 25,000 countrywide as rural orders rise

    Increased online orders from rural consumers has seen Jumia Kenya expand the number of its sales agents countrywide to 25,000 according to Chief Executive Officer Charles Ballard.

    Ballard said the e-commerce firm is committed to expand operations in peri-urban and rural areas in Kenya in order to drive economic growth through the internet.

    “We are proud to bring a modern and convenient shopping experience to customers located in small Kenyan towns and to give them access to millions of products that are not available locally,” said Ballard.

    The agents dubbed JForce are independent sales people who form part of the firms distribution network earning commissions based on sales.

    The high internet penetration in the country has seen online order rise in recent years a factor Jumia Kenya Head of Logistics, Chris Nyaga said has also contributed to drop in delivery costs.

    “E-commerce enables all consumers to buy products at the same price whether they live in Nairobi, Meru, or Lodwar. Delivery costs have also decreased over the years, the average delivery cost to rural areas is now around Ksh 300 depending on the item’s size. Pick-Up station has helped reduce prices and minimize environmental impact,” said Chris Nyaga, Head of Logistics, Jumia Kenya.

    The firms has identified Eldoret, Nakuru, Kakamega, Kitale, and Kisumu as areas showing the most promising consumer demand.

    Additionally, Jumia says it has added more than 350 rural pick-up points and collaborated with more than 45 local logistics partners for last mile delivery of orders to rural consumers.

  • RBA clears Minet Kenya to manage tier two pension contributions

    RBA clears Minet Kenya to manage tier two pension contributions

    Minet Kenya expects a growth in its assets under management going forward after getting regulatory approval to receive and mange National Social Security Fund (NSSF) tier two pension contributions.

    According to  Chief Executive Officer Sammy Muthui, Minet Kenya currently manages more than 200 employer pension funds with assets under administration of Ksh 180 billion and Ksh 3.5 billion in pension funds.

    “Minet is pleased to receive this approval from the regulator and looks forward to supporting employers who would like to channel Tier II contributions to the Minet Kenya Umbrella Retirement Fund and Minet Individual Pension Plan,” said Muthui.

    Under the NSSF Act 2013 revised rates which took effect in February this year, pension contributions for those earning Ksh 18,000 with capped deduction of Ksh 1,440 and which fall under tier two are to be handled by private asset managers contracted by the employer who have opted out of the NSSF contributions.

    The approval will see Minet provide pension administration services to employers who would like to opt out of Tier II NSSF contributions and channel their members’ remittances into a scheme.

    “As Kenya’s oldest Pension Scheme administrator, Minet is ready to offer its many years of expertise in pension administration to secure the future of Kenya’s working population with solutions that guarantee them a comfortable retirement,” he added.

    In the last three years, the risk advisor has seen the number of employer pension plans under its watch expand by fifteen.

  • George Soros hands reins of $25bn empire to son Alex

    George Soros hands reins of $25bn empire to son Alex

    US billionaire philanthropist George Soros has handed over the running of his $25bn (£19.9bn) financial and charitable empire to his son Alex.

    The Hungarian-born financier said his son had “earned it”, in an interview with the Wall Street Journal.

    Since the 1990s the family’s wealth has been directed to support democracy-building in dozens of countries.

    But in recent years the 92-year-old former hedge fund manager has become the focus of anti-Semitic conspiracies.

    A Soros spokesperson confirmed to the BBC the details of the interview published on Sunday.

    George Soros is also one of the largest donors to the US Democratic Party. Alex, a 37-year-old history graduate, is the second-youngest of his five children.

    Alex is the only family member sitting on the investment committee for Soros Fund Management, the vehicle which the Wall Street Journal says is managing the $25bn for the family and the charitable foundation.

    Alex took over at the Open Society Foundations (OSF) as chairman in December and is also in charge of his father’s “super PAC” a US mechanism to direct funds to political parties.

    While they broadly share the same political views, he told the Wall Street Journal that he is “more political” than his father and that he would campaign against Donald Trump’s attempt to run for a second term as US president.

    “As much as I would love to get money out of politics, as long as the other side is doing it, we will have to do it, too,” Alex Soros said.

    He said the Open Society Foundations would pursue the same aims it had under his father including free speech, criminal justice reform, minority and refugee rights and backing liberal politicians. But he also wants to include voting rights, abortion and gender equity initiatives while pursuing a more domestic US-focused agenda.

    His father, George Soros, was born in Hungary, where as a child he lived through the horror of the Nazi occupation in 1944-45. His family concealed their Jewish identity to survive.

    After the war he left Hungary for London, later moving to New York where he went on to make billions through his hedge fund activities.

    He gained notoriety in the UK after making $1bn correctly betting the pound would fall in 1992.

    When the Berlin wall came down, paving the way for the establishment of democratic governments in the former Soviet bloc, he established the Open Society Foundations (OSF) to support the process. The OSF now spends about $1.5bn a year backing liberal causes, educational organisations and human rights in more than 120 countries.

    Some of its causes have rankled the right wing, including tackling racial bias in the US justice system.

    The OSF shifted its international operations office from Budapest to Berlin in 2018 after the Hungarian government led by Viktor Orban campaigned explicitly against Mr Soros personally and against the foundation’s work.

    Alex Soros is a fan of hip-hop and New York Jets American football team, who is known for having a “high-flying” social life, attending celebrity parties in Cannes and the Hamptons. He has also travelled to remote parts of the Amazon and joined the board of the human rights campaign group, Global Witness.

    “Our side has to be better about being more patriotic and inclusive,” he told the paper. “Just because someone votes Trump doesn’t mean they’re lost or racist.”

    Story by BBC.

  • Sir Ivan Menezes: Boss of Guinness maker Diageo dies at 63

    Sir Ivan Menezes: Boss of Guinness maker Diageo dies at 63

    Sir Ivan Menezes, chief executive of the world’s biggest spirits company Diageo, has died aged 63.

    On Wednesday, the Guinness and Johnnie Walker maker said he “passed away following a brief illness, with his family at his side.”

    The British-American national was born in the Indian city of Pune. He was set to retire at the end of the month.

    Earlier this week, the firm said Menezes was in hospital for conditions including a stomach ulcer.

    “This is an incredibly sad day. Ivan was undoubtedly one of the finest leaders of his generation,” Diageo chairman Javier Ferrán said.

    “Ivan was there at the creation of Diageo and over 25 years, shaped Diageo to become one of the best performing, most trusted and respected consumer companies,” Mr Ferrán added.

    Prior to Diageo, he held marketing and strategy positions at major companies including food and beverage giant Nestlé.

    Menezes joined Diageo in 1997 when the firm was formed through the merger of brewery giant Guinness and London-based conglomerate Grand Metropolitan.

    Over the course of his career, he held several senior roles at the company and was appointed chief executive in July 2013.

    ‘Profoundly genuine’

    Major business leaders have been sharing tributes to Menezes.

    Starbucks chief executive Laxman Narasimhan said in a post on LinkedIn that he had interned at a company in London where Menezes was “a leader on the move”.

    “Over the years, our paths have crossed in the US, India and finally in London – as two CEOs of Indian origin, leading companies through a very difficult Covid period,” he said.

    “He was classy, bold, kind, thoughtful and so downright modest – a true ‘gentle, giant’ of a leader,” Mr Narasimhan added.

    Alexandre Ricard, chairman and chief executive of French drinks company Pernod Ricard, said Menezes was one of the first people to congratulate him on his appointment in 2015.

    “In a competitive business world Ivan remained a profoundly genuine and authentic person,” Mr Ricard said on LinkedIn. “May he rest in peace.”

    Over the course of his career, Menezes also held several senior roles at Diageo.

    As the firm’s global marketing director, he was behind the iconic Johnnie Walker “Keep Walking” campaign, which was launched in 1999.

    The Scotch whisky brand has continued to run the campaign saying it “embodies our desire for progress, the fuel to tackle adversity, and the joy of unfiltered optimism.”

    In 2012, Menezes was named as an executive director of Diageo and appointed to the company’s board. He was promoted to chief executive a year later.

    Under his leadership, the company’s sales grew as it bought several brands, including Philippine rum brand Don Papa.

    Diageo currently has more than 200 brands, which it markets in over 180 countries.

    Earlier this year, the company announced that Menezes planned to retire on 30 June, after a decade as its chief executive.

    He was set to be succeeded by chief operating officer Debra Crew.

    On Monday, Ms Crew was appointed as Diageo’s interim chief executive as Menezes was undergoing medical treatment.

    He was awarded a knighthood in King Charles’ first New Year Honours for services to business and equality.

    Menezes is survived by his wife, Shibani and their two children, Nikhil and Rohini.

    Story by BBC.