Happy New month!
What are your thoughts on Facebook switching its name to Meta ?
According to Mark Zuckerberg, the name reflects the company’s commitment to build a “ Surround yourself technology” which basically means ‘internet brought to life’
Zuckerberg announced that Meta (short for Metaverse) will enable you go inside a virtual world instead of just looking at a screen. You can then shop, hold meetings, hang out with friends using augmented reality glasses and virtual reality headsets.
Note: Although the company is changing its name to Meta, the existing individual platforms like Facebook, WhatsApp, Messenger & Instagram will not change.
Motorcycles compelled to have passenger insurance
The Insurance Regulatory Authority has proposed changes to the Motor-vehicle Insurance Rules that will require boda boda & tuk tuk operators to have third party insurance.
Currently, there is no clear legal requirement for Boda Bodas and Tuk Tuks to have insurance. The law only mandates insurance cover for motorcycles and motorised three wheelers used for social, domestic and leisure purposes.
The proposal for 3rd party insurance stems from the increase in bodaboda accidents & deaths in recent years.
some facts & data
The number of registered motorcycles in Kenya have doubled in 5 years.
439 passengers died from motorcycle related accidents in 2020.
There is an increase in demand for motorcycles in Kenya as they are a solution to the inefficient mass transportation system in the country.
CAPITAL MARKETS
1. Roll out of Day trading
The Capital markets authority has approved the initiation of day trading by the Nairobi Stock Exchange (NSE).
What is day trading? - It is the selling & purchase of a security within a relatively short time (in a single trading session, one day or multiple times in a day.)
Some advantages of day trading are that a) You can start day trading with a small account, b) You have no overnight risks of fluctuations in a company’s stock price c) You can trade anywhere in the world.
The NSE definitely wants more investors to participate in day trading. It has provided the incentive that a day trader’s second leg of a transaction will be levied at 0.114% (the normal levy rate is 0.12%)
The Day trading will go live on 22 November 2021.
2. Kenya to float another infrastructure bond this month
The government is set to float a Ksh 150 billion infrastructure bond this month in order to finance the completion of ongoing road projects and pay debt owed to contractors.
current details on the bond
There is still no loan period set for it.
The Bond will have a tax-free status.
Looking forward: - The government is banking on the current improved liquidity in Kenya to boost the performance of the bond. The government is confident following September’s infrastructure bond that raised ksh 151.3 billion, way above the targeted Ksh 75 billion and had an interest of 12.73%.
EDUCATION
Nairobi University barred from implementing new fees for medical students
The High Court barred University of Nairobi from implementing new fees for doctors pursuing masters degrees stating that the threshold for ‘public participation” was not attained in the decision making process.
Background
The University of Nairobi management had announced a revision of fees earlier this year.
Students pursuing medicine were to pay Ksh 3.8 million for the 5 year course, up from Ksh 2.3 million.
As a result, The Kenya Medical Practitioners, Pharmacists and Dentists Union filed a case in court to oppose the fees increment stating among other things that a) the fees was astronomical and beyond the reach of many Kenyans and b) most of their members who study medicine would be affected by the increase in fees and not complete studies.
Details of Justice Mrima’s ruling
There was insufficient public participation in arriving at the decision to revise fees. This is because only a few stakeholders were consulted.
The lack of public participation is contrary to Article 10(2)(a) and 201 of the constitution hence the decision to increase fees is invalid.
Justice Mrima rejected the argument that the fees were beyond the reach of many Kenyans and stated that the need to increase fees by the university was inevitable.
COMPETITION LAW
Does Kenya Airways have an unfair competitive advantage over other local airlines ?
The Competition Authority of Kenya (it has been busy the last few months ) stated that Kenya Airways having more morning slots for domestic flights than its rivals gives it an unfair advantage.
The unfair advantage is that morning flights are most popular among travellers and Kenya Airways priced their morning tickets higher by hundreds of shillings compared to other competitors.
This is not Kenya Airways’ only worry - a study by competition authorities representing a 24 African countries revealed that Kenya Airways was the most expensive airline (charged higher average passenger price per kilometre (APPK) for all its domestic, regional and international routes).
AFRICA
African Union suspends Sudan after the latest coup
Backstory : After the end of Omar al-Bashir’s rule in 2019, Sudan has since been in a power sharing agreement between the military and the civilian group. Under the agreement, the 2 groups constitute a transitional government that would ensure stability in Sudan until 2023 when democratic elections are to be held.
What happened last week: Contrary to the agreement, the military forcibly took power and dissolved the transitional government. Sudan’s military leader ordered the arrest of top officials in the transitional government (including Prime minister Abdel Hamdok), imposed a State of Emergency and shut down the internet.
The African Union grace and security council later announced the suspension of Sudan from the African Union following the coup. This means that Sudan will no longer be allowed into AU sessions or vote on matters until the transitional government is restored.
International Pressure: The United States announced that it had halted aid worth $700 million to the Government of Sudan and demanded the release of individuals and government officials. The world bank has since also suspended its aid to Sudan.
MUST KNOW CONVERSATIONSTARTERS
Kenya receives another World Bank Loan - Kenya has received a $150 million loan from World Bank to support local communities hard hit by climate change and drought.
Nyayo and Kasarani Stadiums not up to FIFA standards - In what is embarrassing than it is disappointing, the Confederation of African Football (CAF) banned Nyayo and Kasarani stadiums from staging international competitions after the two failed to meet the required standards for hosting International games.
This means that Kenya will have to host its qualifying matches of the Fifa World Cup 2022 abroad.
East Africa Breweries Medium term note - East African Breweries announced that it received Ksh 37.9 billion worth of applications for their medium term note against a target of Ksh 11 billion. This represents an overall subscription of 345% - by Mwango Capital
Tala raises 16.1 billion in series E funding - Digital Lender, Tala has raised KSh16.1 billion in its series E funding round and its total funding is now more than KSh38.8 billion. The funding is expected to help accelerate its expansion across Kenya, the Philippines, Mexico, India and the United States.
It will also fund the launch of a new financial account experience in their consumer application & probably the roll out of crypto offerings.
Moi University Shut down - Moi University was closed indefinitely and students ordered to vacate the school by Thursday last week. The reason is that Moi University staff and Lecturers had gone on Strike to protest delays in payment of their salaries.
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