15% reduction in cost of power
10 January 2022
Good Morning. We made it through the first week of 2022 and it’s official, we no longer have to say “Happy new year”.
15% reduction in power tariffs
Via a press release on 7th January, the Energy Ministry effected a 15% reduction in power tariffs in line with the President's promise to reduce the cost of electricity by 30%.
The reduction will be effective till December 2022.
“The reduction will boost livelihoods and economic growth by reducing the cost of living, putting more money in Kenyans’ pockets and reducing the cost of doing business.” - Ministry of Energy
Looking forward:
The Ministry promised to effect the next 15% tranche before the end of this years’ first quarter.
Should KFC onboard local suppliers
Background
At the start of 2022, KFC Kenya (Kentucky Fried Chicken) announced that it suffered a shortage of potatoes at its outlets in Kenya following delays in delivery from its overseas suppliers. KFC then offered customers alternative food items in place of French fries.
why can’t KFC use locally grown potatoes?
According to the company's East Africa chief executive, local suppliers had not gone through KFC's quality assurance process that makes sure the food is safe for consumption by KFC customers.
Kenyans were outraged by the fact that after 11 years of being in the country, KFC has not found a supplier that meets its standards.
Looking forward
KFC stated that it cannot share the quality standards that Kenyans wishing to supply it with potatoes must meet due to proprietary restrictions.
“We do not disclose proprietary information around sourcing and pricing” - KFC
LEGISLATION
The Proceeds of Crime & Anti-Money Laundering (Amendment) Act,2021 has been assented to by the President
significant provisions
The act expands the definition of "reporting persons" to include Advocates.
Reporting persons will now include: Advocates, notaries and other independent legal professionals who are sole practitioners, partners or employees within professional firms.
These persons will be obligated to monitor complex, unusual, suspicious, large or other transactions and report to the Financial Reporting Centre any transactions that constitute or may be related to money laundering.
The obligations shall apply to the above-mentioned parties who act for their clients in the following circumstances:
Buying and selling of real estate;
Managing of client money, securities or other assets;
Organisation of contributions for the creation, operation or management of companies; and
Creation, operation or management of buying and selling of business entities.
The Financial Reporting Centre has the authority to interrupt a transaction for not more than five working days where there is evidence of suspicious activity taking place.
COVID-19
Why Dubai Indefinitely Banned Flights from Kenya
It was revealed by the Kenya Civil Aviation authority that fake Covid tests were the reason behind Dubai's ban of passenger flights from Nairobi.
According to the authority, data revealed that travellers from Nairobi were testing positive for Covid-19 after arrival in the Middle East nation, despite carrying negative test results.
The authority further stated that the scheme involved some corrupt officials from Ministry of Health who colluded with travellers to issue fake Covid-19 PCR results used to travel to Dubai.
COURT
High court declines to suspend the planned increase of premiums for motor vehicle insurance
Background
Late last year, insurance providers revised their insurance premiums for 2022 and raised them by as much as 50%.
Consequently, the Kenya Human Rights Commission filed a claim in court arguing that the planned increase of insurance premiums is illegal because there was no public participation.
The commission is seeking a declaration that the increase of premiums without public participation is illegal, null and void.
The commission also blames the Insurance Regulatory Authority (IRA) for failing to protect the public and policy holders from such increase.
High court declaration: The High Court declined to suspend the planned increase of premiums for motor vehicle insurance but instead certified the case filed by the Kenya Human Rights Commission (KHRC) as urgent and directed parties to appear for directions this week.
HEALTH
Kenyans Facing starvation
The National Drought Management Authority stated that the number of Kenyans facing starvation has grown by 33 percent in the last five months.
The number of people in need of relief rose from 2.1 million in August to 2.8 million at the end of last year.
This has been attributed to the below-average October to December short rains.
The situation is expected to worsen over the coming months and interventions will be required, particularly in key sectors of agriculture/livestock, water, health and nutrition, and food assistance - The National Drought Management Authority.
MUST KNOW CONVERSATIONSTARTERS
List of countries that have banned or placed restrictions on holders of Kenyan passports - Taiwan, Israel, Sweden, Vatican City, South Korea, Singapore, Poland, Cambodia, Bangladesh, Chile, Czech Republic, Cyprus and Cameroon - Henley Passport Index
The United States Embassy to lease 90 unit gated estate for its staff - The United States Embassy will lease a 90-unit gated estate for its staff in upmarket Rosslyn in Nairobi in an eight-year deal costing up to Sh4.27 billion.
The housing estate is being developed by Gateway Real Estate Africa Ltd (GREA) and is set to be completed by the third quarter of this year.
The development will consist of a combination of apartments and townhouses.
The lease period will be 8 years.
The Traffic (Amendment) Bill - the Bill gives the National Transport Safety Authority (NTSA) power to determine the intervals within which cars exceeding four years from the date of manufacture will be inspected.
“Every vehicle that has been operated for a period exceeding four years from the recorded date of manufacture shall be subjected to inspection at intervals to be determined by the authority (NTSA)” the Bill states.
Equity Bank to introduce annual debit card fee - Equity Bank announced that it would introduce an annual debit card fee of Ksh 240.
The fee is applied 12 months after the card is issued and continues until the card expires. The introduction of debit card fees means Equity is set to generate billions of shillings in income.
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