KBC Channel 1

Author: Ronald Owili

  • KTB plans to increase arrivals from Middle East

    KTB plans to increase arrivals from Middle East

    The Kenya Tourism Board (KTB) aims to increase its marketing activities in the growing middle eastern market by partnering with Kenya Airways, travel agents and the shareholders in the private sector.

    In light of the recent launching of Mombasa to Dubai flights, there has been a rise in potential of the Middle East market, which KTB is smartly utilizing and tapping into, to additionally shore up inbound tourism into the country.

    “The Middle-East market holds significant potential for the tourism sector. It is a high-spending market, and Kenya’s proximity to the Middle East, with short-haul flight duration of just five hours, makes it an easily accessible destination.

    Moreover, Kenya Airways operates direct flights connecting Dubai and Mombasa four times a week, ensuring convenience and seamless travel experiences,“ said Victor Shitakha, KTB Director.

    Travelers are said to enjoy a number of activities including leisure-city breaks, adventure, wildlife and safari, business, and visiting friends and relatives.

    “KTB values its partnerships with travel agencies and is committed to exploring further avenues for growth and development in the Middle-East market.

    Together with industry stakeholders, the aim is to position Kenya as the ultimate destination of choice for travelers from the Middle East and beyond, showcasing the country’s unparalleled hospitality and diverse tourism products,” he added.

    With the growing need for leisure travels from the Middle East and the attractive packages offered, the direct flights will help boost travel into Mombasa hence better fast hand experience.

    The partnership is said to raise awareness of the Magical Kenya Brand and increase sales during Prime Time Travels.

  • KCB Group shareholders to pocket Ksh 6.4B in dividends

    KCB Group shareholders to pocket Ksh 6.4B in dividends

    The KCB Group shareholders have approved a final dividend payout amounting to Ksh 3.2 billion for the 2022 financial year.

    The approval now brings total dividend payout to Ksh 6.4 billion following a Ksh 3.2 billion in interim dividend declared at the end of last year.

    The dividend pay stems from the bank’s 20pc increase in full year net profit last year to Ksh 40.8 billion, which in turn raised the KCB Group’s return on equity by 60 basis points to 23pc.

    “In the face of a challenging and volatile business landscape, the Group remained resilient, continuously delivering value to stakeholders, and solidifying the foundation of the enterprise. We have in place a robust strategy that enables us to prudently deploy our capital and resources across the region to ensure superior returns from our investments,” said Andrew Kairu, KCB Group Chairman.

    The lender says BPR Bank, KCB Bank Tanzania, and KCB Bank Uganda contribution to the group’s gross profits from group businesses also grew 17pc.

    “We have maintained a steady growth in all our core indicators which has culminated to an impressive performance both in balance sheet and in profitability. This was made possible by strong revenue momentum across the corporate and retail businesses.

    Our focus was on delivering value and support to our customers to help them navigate the tough economic environment, while driving revenue growth for the Bank through both funded and non-funded income lines,” added Paul Russo, KCB Group Chief Executive Officer.

    The bank expects investments in the regional business to continue paying off with its latest acquisition Trust Merchant Bank (TMB) helping to deliver 35pc increase in gross profits.

  • Kenya, Saudi Arabia seek to expand health cooperation

    Kenya, Saudi Arabia seek to expand health cooperation

    Saudi Arabia has expressed its commitment to enhance cooperation with Kenya in the health sector.

    Saudi Arabia Ambassador to Kenya Khalid bin Abdullah Al- Salman said his country will continue to expand further bilateral relationship engagement in the health sector for the benefit of the two nations.

    He was speaking at Kenyatta National Hospital during an impromptu tour of the cardiology clinic where specialist doctors from Saudi Arabia and KNH successfully operated on 25 patients with heart complications.

    Since Monday, Kenyatta National Hospital’s Cardiology Clinic Department was a beehive of activities.

    Cardiologist from Saudi Arabia in conjunction with their Kenyan counterparts were attending to free surgery on patients with congenital heart disease at the facility.

    Ambassador Khalid bin Abdullah Al- Salman visited the facility to have a firsthand on the philanthropic gesture.

    The doctors had managed to attend to 25 out of 35 patients with congenital heart disease at the facility.

    The free surgery was courtesy of the Saudi Development Bank (SDB) and the King Salman Humanitarian Aid and Relief Centre.

  • MPs propose additional Ksh 7.4B to agriculture sector

    MPs propose additional Ksh 7.4B to agriculture sector

    The National Assembly Committee on Agriculture and Livestock wants budgetary allocation for agriculture for the next financial year increased by Ksh 7.4 billion to Ksh 71.8 billion.

    The additional allocation is expected to finance the fertilizer subsidy programme, pay millers for last year’s maize flour subsidy as well as pay farmers who participated in the livestock off-take programme.

    The National Assembly Committee on Agriculture and Livestock notes that out of the nine value chains that will transform the Bottom-up Economic Transformation Agenda, six are under the Ministry of Agriculture and Livestock.

    MPs proposed that Ksh 4 billion be added to the proposed Ksh 4.5 billion earmarked for the fertilizer subsidy programme in the next financial year.

    The legislators argued that the Fertilizer Subsidy Programme requires Ksh 13.5 billion to adequately to provide subsidized fertilizer across the country.

    The committee has also proposed an additional Ksh 1 billion for offsetting amounts owed to farmers who participated in the livestock off take programme.

    They want another Ksh 0.5 billion earmarked for settling the amount owed to millers who participated in the subsidy programme last year.

    The legislators want another Ksh 400 million allocated for fighting fall armyworms noting that already there is an outbreak of the destructive pests in some parts of the country.

    Despite the Malabo Declaration recommending that African governments allocate at least 10 percent of their budgets to agriculture, Kenya is yet to meet the threshold.

    In the current financial year, agriculture’s share was 3.1pc and in the next financial year, it is expected to increase to 3.81pc.

    The National Assembly Committee on Agriculture and Livestock notes that out of the nine value chains that will transform the Bottom-up Economic Transformation Agenda, six are under the Ministry of Agriculture and Livestock.

  • Court briefly stops govt. from importing genetically modified maize

    Court briefly stops govt. from importing genetically modified maize

    The Court of Appeal has dismissed an application by the government seeking to allow importation, cultivation and consumption of Genetically Modified Organism (GMOs) in Kenya.

    The decision was made due to pending hearing and determination of another case against adoption of bio-technology in food production lodged at the High Court.

    The dismissal now means traders and millers will now have to pay top dollar to import white non genetically modified maize from the international markets.

    In their ruling, Justices Mohammed Warsame, Abida Ali-Aroni and John Mativo argued that the application by the government lacked merit and did not meet public interest test.

    This means an order barring the importation or distribution of GMO crops in Kenya stands until a case filed at the High Court by the Kenyan Peasants League, a social movement, is heard and determined.

    In its application, the government had argued that the adoption of bio technology will address the challenges facing the country in terms of food security and lower the cost of food and animal feeds.

    The government had hoped the court would allow importation of GMO maize to reduce the cost of maize flour.

    The argument was however dismissed by the three-judge bench on grounds that there was no public participation. The ruling read in part, “..the responses by the applicants failed to address why the decision arrived at was not subjected to public participation; why the report which preceded the making of such a declaration was not made public to allow stakeholder engagement; the responses did not address why the Minister for Trade, Industry and Investment acknowledged the dangers of GMO on the 18th of November, 2022 yet he saw nothing wrong with the importation.”

  • AfDB names Kenyan African Banker of the Year 2023

    AfDB names Kenyan African Banker of the Year 2023

    The African Development Bank (AfDB) has named Ester Kariuki as African Banker of the Year for creating efficient credit process among small-holder farmers.

    During AfDB’s 58th Annual Meeting currently underway in Sharm El Sheikh in Egypt, Kariuki who the Head of Agriculture Business at the Co-operative Bank of Kenya was feted for making small-holder farmers bankable by creating an end-to-end credit administration process that has ensured a near 100pc loan repayment performance.

    This in turn, has enabled small scale farmers involved in primary production sustainably run their enterprises and improve their income.

    AfDB award committee also lauded for the roll-out of Co-op Bank Soko, an online marketplace that connects various agriculture value chains and provides farmers with direct market access for their produce besides accessing farm inputs and Co-op Bank financial services.

    The platform already has 750,000 registered farmers trading in coffee, potatoes, rice and cotton.

    Kariuki was instrumental in crafting the direct export of coffee by Kipkelion Coffee Co-operative Union, which draws it membership from farmers in Kericho and Bomet counties, to coffee roasters in South Korea, the first ever direct sale of coffee between an international buyer and small-scale farmers without any broker/agent.

    The transaction enabled farmers to earn a premium rate of $1.30 per kilo of coffee cherry, the highest ever paid by Kipkelion Coffee Union.

    The Banker of the Year Award was created by AfDB to recognise individuals who have demonstrated an outstanding ability to ensure thier bank is playing an active role in enhancing socio-economic empowerment and development within the community they operate in.

  • NCBA Group net profit up 49pc to Ksh 5.1B

    NCBA Group net profit up 49pc to Ksh 5.1B

    NCBA Group profit after tax has risen to Ksh 5.1 billion in the first three months of the year from Ksh 3.4 billion recorded over the same period last year.

    “Growth in profitability was attributed to increase in operating income and a decline in loan impairment charges by 23pc. Despite the tough macro-economic conditions, the Group’s prudent management of credit risk has resulted in an improved non-performing loan ratio and a reduced cost of risk,” the bank said in a statement.

    The bank saw operating income rise 18pc to Ksh15.5 billion, 18 per cent up year on year as net interest income surge from Ksh 7.1 billion to Ksh 8.4 billion shillings.

    During the period, net loans and advances increased to Ksh 287.2 billion from Ksh 243.9 billion.

    NCBA said provision for credit losses reduced 23pc to Ksh 2 billion.

    On the other hand, customer deposits rose 7pc to Ksh 499.7 billion from Ksh 465.5 billion reported over the same period last year pushing total assets to Ksh 628.8 billion.

    “We have a stable and growing deposit base which is an indication of our ability to invest and attract more retail and corporate customers by offering greater superior experience and convenience through a bigger network. Our systematic branch expansion has allowed us to cover 26 counties in Kenya, and we expect 36 in 2023 with target to add another 10 in 2023 which will enhance job opportunities across the regions we operate in,” said John Gachora, NCBA Group Managing Director.

    The group says it currently lends to more than 60 million customers through mobile in the countries operates in, a move that has the lender issue Ksh 223 billion in digital loans, a 37pc increase year-on-year.

  • South Sudan secures $70M grant for women empowerment

    South Sudan secures $70M grant for women empowerment

    The World Bank on Wednesday granted $70 million to South Sudan to boost women’s social and economic empowerment (SSWSEEP), an official said.

    World Bank Country Manager for South Sudan Firas Raad said the grant is aimed at supporting female entrepreneurs in formalizing and scaling up their business activities and helping survivors of gender-based violence (GBV) access vital services that will enable them to recover and rebuild their lives.

    Raad said the project focuses on women and youth to help reduce fragility, facilitate peacebuilding, and promote inclusive development. He said the project takes a holistic approach aiming to strengthen the public sector’s capacity to engage more actively in the area of women’s empowerment to ensure long-term benefits for future generations of South Sudanese women and girls.

    “Survivors of gender-based violence require substantial support to recover from the physical and psychological trauma that they have endured. This project will help expand their access to vital health services and psychosocial support, and will work on strengthening the prevention of GBV,” Raad told journalists in Juba, South Sudan`s capital.

    He noted that the project will also help women to grow their businesses and improve their livelihoods by providing grants, training, and technical assistance.

    The SSWSEEP comprises four components that aim at holistically addressing the specific challenges affecting the growth and development of women in South Sudan including community-based socioeconomic empowerment of women, establishing a women’s entrepreneurial opportunity facility, providing services for survivors of GBV, and supporting institutional strengthening and project management.

    Aya Benjamin Warile, minister for Gender, Child and Social Welfare, said women have supported their families and communities for generations by engaging in entrepreneurial activities, however, their progress has often been constrained by a mixture of prevailing social norms, institutional impediments, and insufficient access to education, training, business services, and financing.

    “Empowering women to participate fully in civic and economic life will make South Sudan more prosperous and peaceful. With improved financial security, other areas of women’s lives will also improve, as they can more easily afford health services, send their children to school, and are more likely to serve in leadership roles in their communities and become agents of change,” Benjamin said.

    Story by CGTN

  • Feed the Future commit Ksh 205M to improve horticulture value chain

    Feed the Future commit Ksh 205M to improve horticulture value chain

    Feed the Future Innovation Lab for Horticulture (ILH) has committed Ksh 205.5 million in order to improve fruit and vegetable value chains in East Africa.

    The funding will be utilised by the International Centre for Evaluation and Development (ICED) to support three researches on vegetables and fruits in the region with the aim improving horticulture value chain to increase earnings among small holder farmers and boost exports.

    Despite horticulture sector being a major source of income and nutrition for many households in the East Africa region, the sector continues to face challenges along the value chain such as phytosanitary, a factor that has effectively locked Kenya from accessing international markets.

    “The research we are giving in East Africa. We have now commissioned about three researches to the tune of $1.5M (Ksh 205.5) for the next three years. That is what the ILH is putting in East Africa and we have about three researches that have approved in Kenya, Uganda and one that cuts across the two countries,” said David Ameyaw, ICED Chief Executive Officer.

    The new horticulture project in East Africa which is funded by United States Agency for International Development (USAID) and implemented by ICED and ILH also seeks to improve the livelihoods of smallholder farmers across East Africa.

    “In horticulture crops we really believe that it is an incredible entry point for small scale farmers to increase their livelihoods and nutrition. It is also an excellent entry point for specifically for women, youth and other marginalized population and we know vegetable are critical for health both from an adult perspective and also diversifying diet for the children,” said Erin McGuire, Associate Director Lab for Horticulture.

    In March this year an avocado consignment destined for the Denmark market was flagged due to high residue levels.

    The interception came after a cut flower consignment was also intercepted in the European Union due to pest concerns this year, threatening a sector that netted the country Ksh 156 billion in exports last year.

    “There is a pest called false codling moth in roses that is of phytosanitary concern to the EU market and therefore the market is raising concern on this particular pest. We are working with the private sector to ensure that phytosanitary pests are minimized by introducing treatment for flowers so that we better manage the insects and of course the capacity building required at the farm level to ensure the interceptions are minimized,” said Josephine Simiyu, Agriculture and Food Authority Head of Regulations and Compliance at the Horticulture Crops Directorate.

    The project’s activities will involve local research institutions, county governments, private sectors, traders, and women’s groups.

    The goal of this collaborative project is to increase productivity, profitability, and consumption of horticultural produce in the rural areas.

  • Jubilee Insurance banks on intermediaries to increase uptake

    Jubilee Insurance banks on intermediaries to increase uptake

    Jubilee Insurance Group’s plan to bring on board additional one million policyholders is on course according to chief executive Dr Julius Ngetich.

    Through its recently launched Jijenge na Jubilee Incentive Programme, the firm aims to revolutionize healthcare access and affordability in Kenya by working with intermediaries to promote and distribute affordable health insurance products.

    “We are committed to improving the accessibility of health insurance in Kenya. Our intermediaries are our brand ambassadors, and we will continue to invest in their growth which ultimately contributes to our collective success,” said Dr Julius Kipng’etich, Jubilee Insurance Group CEO.

    The insurer is eying the incentive to help boost insurance uptake whose penetration rate is just under 3pc as many consumers are forced to dig deep into their pockets for health care expenses.

    The programme also seeks to ensure more households across the country are beneficiaries of comprehensive health insurance coverage.

    “We are excited to launch the Jijenge na Jubilee Incentive Programme to appreciate our intermediaries and support them in their efforts to expand access to health insurance solutions,” said Njeri Jomo, Jubilee Health CEO.

    Jomo says Jubilee Health Insurance is actively driving awareness about the importance of insurance uptake through personalized and affordable insurance solutions.

    The programme has shown its support to intermediaries by awarding round one winners with cash and apartments since launch last month.