World Bank, IMF caution against power expansion plan

Money Markets

 

Dr Samuel Nyandemo (pictured), a senior economics lecturer at the University of Nairobi said the projects were feasible in the long term. Photo/FILE 

By GEOFFREY IRUNGU

In Summary

• IMF, World Bank want Kenya to put on hold the energy and technology projects scheduled for implementation in the second phase of Vision 2030 which runs to 2018.
• They said bringing onstream 5,000 megawatts of power within five years will see supply outstrip demand.
• Failure to recoup generation costs would lead to higher tariffs.

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Tanzania sales lift ARM’s profit 10pc

Corporate News

President Jakaya Kikwete has said Tanzania will not quit the East African Community. PHOTO|FILE 

By David Herbling

In Summary

• Nairobi bourse-listed cement maker said after tax profit rose to more than Sh1.3 billion in the year to December 2013 compared to Sh1.2 billion a year earlier, aided by growing sales from its Dar es Salaam factory that has marked first full year of operation.
• ARM Cement, which also blends fertiliser, saw group sales grow 24 per cent to hit Sh14.1 billion largely attributed to a sales boom in Tanzania and regional export markets.
• As a result of increased competition brought about by new players such as Savannah, National and Mombasa, cement prices have stayed at between Sh630 and Sh700 per 50-kilogramme bag in Kenya.

High cost of energy in March hurts Kenya households

Money Markets

A cooking gas outlet. Energy costs account for up to 20 per cent of a household’s budget. Photo/FILE 

By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com

In Summary

• The price of cooking gas has risen to Sh3,100 for a 13kg cylinder over the past year, with charcoal retailing at Sh74 for a four kilogramme tin.
• Kerosene is listed at an average price of Sh84.65 per litre in the latest Kenya National Bureau of Statistics data.
• Energy costs account for up to 20 per cent of a household’s budget.

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Reprieve for commuters as High Court suspends new traffic rules

Politics and policy

 

Commuters who used the train service leave the Nairobi Railway Station Tuesday after matatus kept off the roads to avoid being arrested for not complying with the new transport regulations. Photo/Jeff Angote 

By Gerald Andae and Anita Chepkoech

In Summary

• The case will be heard next week on Thursday when all the stakeholders are required to appear in court.
• The new guidelines require all public transport vehicles to operate under a Sacco that has a minimum of 30 vehicles.
• The vehicles must also be fitted with digital speed governors that have ability to track and record the speed.

State keeps power connection subsidy at Sh35,000

Politics and policy

Technicians repair power lines in Thika. The actual cost of single phase connections stands at Sh135,000 while three phase connections require Sh350,000. Photo/FILE 

By GERALD ANDAE, gandae@ke.nationmedia.com

In Summary

• PS Joseph Njoroge says ongoing study is unlikely to affect the fees of connecting homes and businesses to the national grid.

The Energy ministry will maintain subsidies for new power connections beyond June, keeping the fee at Sh35,000 for households.

Nairobi residents seek class action over land rates increase

Politics and policy 

City Hall, the Nairobi County government headquarters. Photo/FILE 

By KIARIE NJOROGE, gkiarie@ke.nationmedia.com

In Summary

• Kenya Alliance of Residents Association (KARA) is seeking to have all property owners in Nairobi County made parties in the case filed last week by Kaputei Residents Association.
• The application is challenging increase in rates from 17 per cent to 34 per cent.
• Kaputei was granted orders to pay the old rates, pending the hearing and determination of the case.

TransCentury sells stake in Rift Valley Railways for Sh5bn

Money Markets

An RVR locomotive at the Kampala station. Uganda’s Bomi Holdings remains the only other investor in the railway operator with a 15 per cent stake after TransCentury sold its stake to Citadel. Photo/FILE 

By John Gachiri, jgachiri@ke.nationmedia.com

In Summary

• The sale to Citadel raises the Egyptian firm’s stake in the railway concession to 85 per cent, leaving Uganda’s Bomi Holdings as the only other investor in the railway operator with a 15 per cent stake.
• TransCentury is said to have nearly doubled its investment in the rail concession in a span of seven years.