HakiPensheni: September 2015

Wednesday, September 30, 2015

Kenyan market ripe for digital wallet innovations

A new global Mastercard study has revealed a growing demand for digital payment innovations.

Mastercard Division President Daniel Monehin (left), Diamond Trust Bank CEO Nasim Devji (second left), KCB Group CEO Joshua Oigara (second right) and Nakumatt Holdings Managing Director Atul Shah (right) in a past function. A new global Mastercard study has revealed a growing demand for digital payment innovations. PHOTO | DIANA NGILA | NATION MEDIA GROUP

In Summary

The MasterCard study analysed over 10,000 online conversations in seven countries including in Kenya, Nigeria, the United Arab Emirates, China, India, Malaysia, and Indonesia between May 1 and July 30, 2015 to learn what payment innovations these markets were adopting.
Expansions in mobile telecommunications and easy availability of mobile phones in the market have facilitated digital payment innovations

By WINFRED KURIA
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Digital payments in Kenya have grown exponentially over the last two years with digital cards serving more than 10 million users, a new MasterCard study reveals.

COMESA Business Council wants South Sudan to remove restrictions on movements of goods and people to boost trade along the Northern Corridor.

Comesa Business Council stakeholders during a workshop at Nairobi Safari Club on September 17, 2015. The business council wants South Sudan to remove restrictions on movements of goods and people to boost trade along the Northern Corridor.

In Summary

The Common Market of East and Central Africa (Comesa) Business Council says the troubled nation has trade-restrictive regulation and restrictions on the movement of persons.
The Northern Corridor links the landlocked countries of Uganda, Rwanda and Burundi with Kenya’s port of Mombasa.
South Sudan is a key player in the Northern Corridor but is not a member of the East Africa Community or Comesa.

By OTIATO GUGUYU
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Regional business lobby wants South Sudan to remove restrictions on movements of goods and people to boost trade along the Northern Corridor.

Property briefs

Kenya Revenue Authority's headquarters at Times Tower in Nairobi. Kenya Revenue Authority (KRA) has started hiring agents to collect data on buildings and their owners to establish if they are tax-compliant. PHOTO | FILE | NATION MEDIA GROUP NATION MEDIA GROUP

In Summary

Phatisa will fund the project through its Pan African Housing Fund. Nakuru’s growing population has created a housing shortage in the town, pushing up land, rent and buying prices for houses and in turn attracting real estate developers eyeing the demand.

By KIARIE NJOROGE
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NAKURU MEADOWS PROJECT: Private equity firm Phatisa is set to fund the construction of 140 residential houses in Nakuru in a deal with real estate developer Tamarind Properties. The

Treasury Cabinet Secretary Henry Rotich (right) with PS Kamau Thugge (left). PHOTO | DIANA NGILA | NATION MEDIA GROUP

In Summary

KENASVIT argues that the delay in establishment of the MSE fund is a violation of the law and an impediment to the growth of the sector.
The fund is aimed at financing the promotion and development of MSEs, provide affordable and accessible credit to them and financing research, development, innovation and transfer of technology.
The informal sector and MSEs constituted 82.7 per cent of total employment in 2014.

By OTIATO GUGUYU
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Small scale traders want Treasury to set aside money for lending micro and small enterprises as stated in law.

Kenya National Alliance for Street Vendors and Informal Traders (KENASVIT) will Thursday hold a forum on a report by the Institute of Economic Affairs (IEA) over delays in implementing the Micro and Small Enterprise (MSE) Act 2012.

Safaricom Sacco has issued new shares seeking Sh1 billion to fund strategic expansion.

Safaricom CEO Bob Collymore during the release of the company's full year financial results on May 7, 2015. Safaricom Sacco has issued new shares seeking Sh1 billion to fund strategic expansion. PHOTO | SALATON NJAU | NATION MEDIA GROUP NATION MEDIA GROUP

In Summary

The Sacco founded in 2001 has 8000 members and an asset base of Sh2.8 billion, and is implementing a strategic plan targeting to grow its business fourfold by 2018.
Only members are eligible to buy the Safaricom Sacco shares.

By BRIAN NGUGI
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Safaricom Sacco has issued new shares seeking Sh1 billion to fund strategic expansion.

It also plans to construct a 15-storey office complex opposite the Safaricom headquarters.

Erdemann Property will Friday break ground for a Sh6 billion residential housing project in Athi River.

Erdemann Property managing director Zeyun Yang (left) with suspended Cabinet Secretary for Land, Housing and Urban Development Ms Charity Ngilu at the ground breaking for the Great Wall phase two in Nairobi in 2014. Erdemann Property will Friday break ground for a Sh6 billion residential housing project in Athi River.

In Summary

“Our two- and three-bedroom apartments will be going at Sh5 million and Sh6 million respectively, we intend to complete the first phase of 600 units by end of next year,” said Erdemann Property head of planning John Rajwayi.

By MOSES OMUSOLO
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Property developer Erdemann Property will Friday break ground for a Sh6 billion residential housing project in Athi River.

The investment will be the company’s third phase of Great Wall Gardens, which would see the setup of 2,000 units comprising two-bedroom and three-bedroom apartments.

Carlson Rezidor is set to open a second high-end Radisson Blu hotel in Nairobi in 2016 on a property adjacent to State House.

New York-based hotel group Carlson Rezidor is set to open a second high-end Radisson Blu hotel in Nairobi in 2016 on a property adjacent to State House. PHOTO | COURTESY

In Summary

Earlier this year, the chain opened its first Nairobi hotel, with 271 rooms at Upper Hill.
Carlson Rezidor has 65 hotels in 27 African countries with 30 in operation and 35 still under development.
Carlson Rezidor group opened eight hotels in Africa in 2015, three of them on the same day.

By OTIATO GUGUYU
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New York-based hotel group Carlson Rezidor is set to open a second high-end Radisson Blu hotel in Nairobi in 2016 on a property adjacent to State House.

Barclays Bank CEO Jeremy Awori during an investor briefing on the bank's half-year performance on August 13, 2015. Barclays Bank denying that it transferred land in Karen, Nairobi, to businessman Horatius Da Gama Rose. PHOTO | DIANA NGILA | NATION MEDIA GROUP

In Summary

The bank’s head of legal affairs Waweru Mathenge told the court on Wednesday that their records show that the land was transferred in January 1983 but not to Mr Rose.
The protracted land case was instigated by Mr Rose claiming that some unknown companies had grabbed it and were in the process of subdividing it.
Deputy Chief Lands Registrar Geoffrey Birundi said the lands office does not have any records showing the land is registered under Muchanga Investment Ltd.

By PAUL OGEMBA
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Barclays Bank denying that it transferred land in Karen, Nairobi, to businessman Horatius Da Gama Rose.

The bank’s head of legal affairs Waweru Mathenge told the court on Wednesday that their records show that the land was transferred in January 1983 but not to Mr Rose.

From left, Machakos Senator Johnson Muthama, Wiper Democratic Movement Leader Kalonzo Musyoka and Kakamega Senator Boni Khalwale dance during a rally at Uhuru Park in Nairobi on September 23, 2014. PHOTO | GERALD ANDERSON | NATION MEDIA GROUP

In Summary

According to the investigators, Mr Muthama should be arrested and held in custody over the words he uttered at an opposition rally at Uhuru Park, Nairobi, on Wednesday last week.
The others are Tana River Senator Ali Bulle and his Uasin Gishu counterpart, Mr Isaac Melly. Mr Bulle, according to police, threatened members of one ethnic group, while Mr Melly led a student demonstration in Eldoret.
The commission later said it did not take any statement from Mr Muthama because he had recorded one with the Directorate of Criminal Investigations last Saturday.

By SAMWEL BORN MAINA
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By STELLA CHERONO
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Police have said they have enough evidence to charge Machakos Senator Johnson Muthama with making defamatory remarks against President Uhuru Kenyatta.

Nigerian president Muhammadu Buhari gives an interview to Agence France-presse at his hotel during the 25th African Summit on June 14, 2015 in Johannesburg. AFP PHOTO | MUJAHID SAFODIEN

In Summary

Oil accounts for some 90 per cent of Nigeria's foreign exchange earnings.
Buhari's caution in appointing ministers has seen him nicknamed "Baba Go Slow" in Nigeria.

By AFP
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LAGOS

Nigeria's President Muhammadu Buhari is to take personal charge of the country's crucial oil portfolio, his spokesman said on Tuesday, as a deadline loomed for him to finally nominate his cabinet.

President Uhuru Kenyatta (left) and Interior Cabinet Secretary Joseph Nkaissery at the opening session of the Leaders' Summit on Countering ISIL and Violent Extremism hosted by US President Barack Obama on the sidelines of the 70th session of the United Nations General Assembly in New York on September 30,2015. PHOTO | PSCU

In Summary

He said the number of troops deployed by Amisom should be increased.
He said Kenyans had demonstrated remarkable support for the fight against terrorism.

By PSCU
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NEW YORK

Unity will defeat terrorism across the world, President Uhuru Kenyatta has said.

The President said the global community and individual nations must remain united to confront terrorism and violent extremism.

Ambassador Macharia Kamau addresses a press conference in New York on August 2, 2015. PHOTO | MARK GARTE | COURTESY

In Summary

The SDGs are 17 goals that, among many other things, aim to reduce poverty and disease and protect the environment.
Kenya had been unanimously voted by United Nations member states to co-chair the working group, alongside a Hungary.
For the nature of the task ahead, the special global complexities that existed when the work was given to him, Mr Kamau has been lauded by many a people for the role he played.
At the end, so commendable was the job he did that in July this year, Mr Kamau and his Hungarian counterpart were awarded a prestigious environmental award.

By VERAH OKEYO
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Elated that he had met a Kenyan at the media centre at the United Nations headquarters in New York, Mexican Jose Miguel Pedrosa asked a Kenyan in broken English: “Do you run?”

“Not even if my life depended on it”, answered the journalist.

Teenage Nobel laureate Malala Yousafzai speaks at a press conference during the UN General Assembly on September 25, 2015 in New York. She urged leaders to zero in on promoting education even as world leaders pledged to end extreme poverty within 15 years, adopting an ambitious set of UN goals to be backed up by trillions of dollars in development spending. AFP PHOTO

In Summary

They will replace the Millennium Development Goals (MDGs) that expire this year and will apply to both developing and developed countries.
Teenage Nobel laureate Malala Yousafzai urged leaders to zero in on promoting education, which she described as "the real investment the world needs and what world leaders must do."
The global goals call for improved transparency in oil-producing countries to clamp down on corruption and ensure that revenues from natural resources are used to improve the lives of citizens.
Nigerian President Muhammadu Buhari vowed to "plug all loopholes" allowing corrupt capital flight and to "prevent oil theft" that is undermining Africa's largest economy.

By AFP
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UNITED NATIONS

World leaders on Friday pledged to end extreme poverty within 15 years, adopting an ambitious set of UN goals to be backed up by trillions of dollars in development spending.

International Criminal Court (ICC) Chief Prosecutor Fatou Bensouda. Kenya will use the UN Security Council to rally support in its bid to have the case against Deputy President William Ruto at the ICC dropped. AFP PHOTO | STRINGER

In Summary

Multiple sources within the country’s diplomatic mission at the United Nations said that deferring the case had been ruled out by the UN Security Council.
Kenya’s permanent representative to the UN, Mr Macharia Kamau, confirmed that the African Union had submitted to the Security Council its position regarding the case.
He argued that Kenya had focused its eyes on the ASP meeting, where decisions affecting the operations and the conduct of the court are taken by the oversight body.

By BERNARD NAMUNANE
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Kenya will use the UN Security Council to rally support in its bid to have the case against Deputy President William Ruto at the International Criminal Court dropped.

Teachers Service Commission (TSC) chairman Lydia Nzomo (left) with Chief Executive Officer Nancy Macharia at a press conference at the TSC head office in Nairobi on September 5, 2015. The TSC has advertised positions for 70,000 relief tutors. PHOTO | ANTHONY OMUYA | NATION MEDIA GROUP

In Summary

According to the TSC, the 70,000 teachers will supplement around 45,000 others who are already on duty.
Currently, there are 288,000 teachers employed by the TSC.
The applicants must also be registered as teachers as required by Section 23 of the Teachers Service Commission Act

By MARYANNE GICOBI
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The fate of the striking teachers now hangs in the balance after their employer advertised positions for 70,000 relief tutors.

A tired worker. Death from overworking is believed to result from a repetitive triggering of the body’s stress response mechanism. PHOTO | FILE | FOTOSEARCH

By SARAH OOKO

In Summary

Working trends in Kenya have changed over the years with a majority of employees working for more than eight hours a day. Some work through the weekends.
To curb the adverse effects of stress, the WHO urges organisations to ensure that job demands and pressure matches employees’ knowledge and abilities.
Doctors are also advising employees to set realistic targets for themselves, develop proper time management skills and build self discipline to allow them have work-life balance.

Working for 55 hours or more weekly increases chances of getting heart diseases and stroke, a new study published in the Lancet journal has revealed.

Embrace the seven pillars of corporate governance

Opinion and Analysis

Central Bank of Kenya Governor Patrick Njoroge during his inaugural Press conference at the bank’s headquarters in Nairobi on September 29, 2015. PHOTO | SALATON NJAU

By RICHARD GITONGA

Why have so many countries in Africa been eluded by prosperity? There are obviously a myriad of reasons.

Uproar over hefty cost of parastatals’ Mombasa meeting

Corporate News

A ship docks in Mombasa. Kenya is eyeing more Ethiopian goods to pass through its ports. PHOTO | FILE

By DAVID HERBLING, hdavid@ke.nationmedia.com

An ongoing meeting bringing together all executives of State corporations has caused an uproar after a consumer lobby raised queries over the seminar’s fat budget estimated to cost taxpayers hundreds of millions of shillings.

Kenyan road contractor sues Indian firm over Sh165m deal

Corporate News

Bridgeways Contractors have filed an application in the High Court claiming Vil Limited is liquidating its assets in Kenya to evade paying a Sh165 million debt. PHOTO | FILE

By BRIAN WASUNA, bwasuna@ke.nationmedia.com

A Kenyan road contractor has asked the High Court to place a caveat on Indian firm Vil Limited’s assets over a Sh165 million debt it claims arose from a road construction deal.

Regulator links tourism decline to hotel quality

Corporate News

Tourism CS Phyllis Kandie with businessman Chris Kirubi (centre) and tour operators chairman Adam Jillo when she launched the ‘Make It Kenya’ campaign this month. PHOTO | FILE

By MATHIAS RINGA

The Tourism Regulatory Authority (TRA) expects to have finished classifying Kenya’s hotels by June next year.

MultiChoice says it pumped Sh15bn into economy last year

Corporate News

From left: MultiChoice East Africa regional director Stephen Isaboke, CA director-general Francis Wangusi and KBC managing director and MultiChoice Kenya chairman Waithaka Waihenya during the release of the study on Sep 29, 2015. PHOTO | FILE

By OKUTTAH MARK, mokuttah@ke.nationmedia.com

In Summary

MultiChoice says it pumped Sh15bn into the Kenyan economy through taxes, jobs and procurement of goods and services locally.

MultiChoice — the owners of pay television company DStv, has claimed that it contributed an estimated Sh15.1 billion to Kenya’s GDP last year through direct and indirect payment of taxes, employment and procurement of goods and services locally.

Mumias reports Sh4.6bn after-tax loss as sales halve

Corporate News

A tractor offloads sugarcane at Mumias Sugar factory in Kakamega County after the firm re-opened earlier in the year under new management. PHOTO | ISAAC WALE

By JOHN GACHIRI, jgachiri@ke.nationmedia.com

In Summary

The NSE-listed sugar company has been in financial difficulty due to mismanagement, shortage of sugarcane and cash flow constraints.
Analysts say that even if Mumias gets its act right it is still financially susceptible to imported sugar, which is cheaper.

Mumias Sugar Company nearly doubled its loss to Sh4.6 billion in the financial year ended June 2015, while its sales more than halved in the same period.

GDP growth drops to 5.5pc on cooling construction

Money Markets

A road under construction. PHOTO | FILE

By BD REPORTER

In Summary

Agriculture is estimated to have expanded by 5.4 per cent during the second quarter of 2015 compared to a 2.1 per cent growth for a similar quarter in 2014.

Kenya’s economic growth slowed down to 5.5 per cent in the second quarter of 2015 from 6 per cent in the same period last year, the statistics bureau announced Wednesday.

Mr Cameron addresses the UN General Assembly in New York on Sunday. PHOTO | AFP

By NEVILLE OTUKI

UK Prime Minister David Cameron is lobbying for British troops to continue training in Kenya beyond the October deadline as London seeks to strengthen ties with Nairobi.

The military pact, which has run for 40 years, expired in April but was extended by six months to October for further talks after the two countries failed to reach a deal on a number of issues.

Treasury eyes Sh5bn from first mobile phone-based bond to be issued in Oct

Money Markets

Treasury secretary Henry Rotich. He said the interest rate from the debt will be higher than that payable on deposits to commercial banks. PHOTO | FILE

By GEORGE NGIGI, gngigi@ke.nationmedia.com

In Summary

Members of the public will be able to invest as little as Sh3,000 in the M-Pesa- linked M-Akiba bond.
The government declined to disclose the rate of return for the bond.
However, it could mirror the most recently issued five-year paper that is at an interest rate of 13.2 per cent, payable every six months.

The first exclusively mobile phone-based Treasury bond amounting to Sh5 billion is to be sold to the public from mid next month.

Interbank rate now hits 27pc on tea bonus circulation

Money Markets

People walk past CBK head office. The regulator’s report shows that the interbank rate rose from 17.9pc. PHOTO | FILE

By GEOFFREY IRUNGU, girungu@ke.nationmedia.com

Posted Tuesday, September 29 2015 at 18:43

In Summary

The interbank average lending rate stood at 13.44 per cent on September 10, but scarcity of liquidity has been pushing up the short-term price of money among banks.

The rate at which commercial banks lend to each other overnight has doubled in three weeks reaching an average of 26.75 per cent as at 2.45pm Tuesday, thanks to the concentration of tea bonus cash in a few banks.

Military, parastatals Sh153bn wage bill biggest, says Treasury

Money Markets

University workers during a past demonstration over wages. PHOTO | FILE

By ALLAN ODHIAMBO

In Summary

Remuneration to the two workers’ groups amounted to Sh152.8 billion in the 2014/15 financial year—the single highest amount paid out.
The huge payout to parastatals is likely to reinforce plans to reform the sector amid concern over high recurrent costs.

Salaries of parastatal workers and the military take up the largest chunk of the national wage bill, data released by the Treasury showed, even as pressure piled on the government to tame its recurrent expenditure.

Skilled engineers and technicians critical for rapid economic takeoff

Opinion and Analysis

Engineering students at Egerton University during a recent demonstration to protest what they termed the institution’s failure to register them with the Engineers Board of Kenya. PHOTO | SULEIMAN MBATIAH

By GEORGE WACHIRA

In Summary

Kenya must sufficiently develop these professionals to fuel the engine of growth

In the past few months when most of Europe was facing insurmountable challenges with the huge influx of Middle East refugees, the Germans saw an opportunity in the crisis.

Njoroge says banks partly to blame for shilling’s woes

Money Markets

Central Bank of Kenya Governor Patrick Njoroge during his inaugural Press conference at the bank’s headquarters in Nairobi on September 29, 2015. PHOTO | SALATON NJAU

By GEORGE NGIGI, gngigi@ke.nationmedia.com

In Summary

CBK governor Patrick Njoroge on Tuesday said he had tightened oversight over currency dealers to stamp out indiscipline after noting that movement of the shilling was being driven by release of inaccurate information into the market.

Dr Njoroge said he had tightened oversight over currency dealers to stamp out indiscipline after noting that movement of the shilling was not purely a factor of demand and supply of the dollar but was also being driven by release of inaccurate information into the market.

September inflation ticks up to 5.97pc

Money Markets

A fruit and vegetables market in Nyeri. Proposed laws aim to restrict sale of food items to markets. PHOTO | FILE

By BD REPORTER

Posted Wednesday, September 30 2015 at 14:29

In Summary

The period also saw a slight drop in the cost of electricity helped by lower diesel costs and a stable exchange rate.

Inflation for the month of September rose slightly to stand at 5.97 per cent from 5.84 per cent in August on a marginal rise in food prices.

Nigerian president to become oil minister in new Cabinet

Politics and policy

Nigeria's President Muhammadu Buhari gives an interview to Agence France-presse at his hotel during the 25th African Summit on June 14, 2015 in Johannesburg. AFP

By Reuters

In Summary

A collapse of global oil prices has whacked Nigeria's public finances and weakened its naira currency, delaying public salaries and fuelling inflation.
Not only is oil money stolen through accounting gymnastics and oversight gaps, but oil itself goes missing at unmetered oilfield wellheads, pipeline taps and export terminals.
A minister of state will oversee the day-to-day issues of the petroleum sector, he said.

President Muhammadu Buhari will hold Nigeria's oil portfolio in his new Cabinet, rather than trust anyone else with the source of most of Nigeria's revenue, he told Reuters on Tuesday.

Pay-as-you-go solar lighting systems slash household budgets

Corporate News

Leah Tallam charges her phone using the M-Kopa III home system in Eldama Ravine. Each battery-powered 8W system has three lights, a phone-charging facility and a chargeable radio. Georgina Goodwin/M-KOPA Solar

By DAVID HERBLING, hdavid@ke.nationmedia.com

Leah Tallam is excited that one of her household expenses will be switched off at the end of this month: lighting costs.

The 42-year-old milk vendor said she is just about to finish paying for her M-Kopa solar kit, and is looking forward to enjoying free lighting, phone charging and power for her radio.

Centum boss James Mworia appointed to NSE board

Money Markets

Centum Investment CEO James Mworia. The company more than doubled its bonus payouts to staff to Sh1 billion in the year ended March. PHOTO | FILE

By MUTEGI MUGAMB

In Summary

“Mr Mworia has been appointed as a director of NSE with effect from September 16,” said the bourse in a statement. “Mr Mworia has received several awards…in recognition of his efforts and outstanding achievements as the group CEO of Centum.”

Centum Investments chief executive officer James Mworia has formally been appointed to the board of the Nairobi Securities Exchange (NSE) having been elected in June to replace Uchumi CEO Jonathan Ciano.