Government to Allow Import of Duty-Free GMO Maize
21 November 2022
Good morning.
Government to Allow Import of Duty-Free GMO Maize
Last week, Trade Cabinet secretary Moses Kuria stated that Kenya would import duty-free GMO maize that would last for the next six months. In this window, the State expects to net 10 million bags.
The shipments are expected to bridge the gap triggered by reduced harvest in the wake of prolonged drought, which pushed the cost of the staple maize flour to rise to an average of Ksh 190 in October for the two-kilogram packet from Ksh 130 at the start of the year.
Backstory
In October, Kenya repealed the country’s 2012-era prohibition on importing and growing genetically modified organism (GMO) crops and animal feeds. The government lifted the ban on Genetically Modified Crops following a Cabinet meeting chaired by President William Ruto at the State House.
The Cabinet also approved the cultivation and importation of White GMO maize.
MOBILE LENDING
Google bans unlicensed loan apps in Kenya
With effect from January 31, 2023, Google will require instant loan apps operating in Kenya to show evidence of a Central Bank license, failure to which they will be removed from the Play Store.
This is in adherence to the Central Bank Amendment Act of 2021.Background
Digital Credit Providers had until, September 17th, 2022, to apply for new licenses from the Central Bank or risk being forced to close their lending businesses.
According to the most recent Central Bank update, only 10 of the 288 loan apps have been permitted.
Requirements to be approved as a mobile digital lender in Kenya
Digital Credit Providers (DCP) should complete the DCP registration process and obtain a license from the Central Bank of Kenya (CBK).
The DCP must provide a copy of license from the CBK to google.
Google will only accept declarations and licenses from entities published under the Directory of Digital Credit Providers on the official website of the CBK.
CAPITAL MARKETS
Capital Markets Authority approves TransCentury Plc Rights Issue
The Capital Markets Authority (CMA) granted approval to TransCentury Plc to undertake a rights issue to raise Ksh 2.063 billion by issuing and listing 1,876,013,830 new ordinary shares at Ksh 1.10 per share.
The rights will be issued based on five new ordinary shares for every existing share held by each shareholder.
The proceeds of the rights issue will be applied towards settling debts owed to creditors, repaying part of the holding company debt owed to lenders, and in return unlocking additional working capital financing for the Group and its subsidiary businesses and defraying statutory obligations.
CONSUMER PROTECTION
Competition Authority of Kenya(CAK) directed Fly 540 to cease advertising flights
The Competition Authority of Kenya(CAK) directed Fly 540 to cease advertising flights on all its platforms following complaints from consumers.
The airline was also directed not to receive any flight bookings from the Public or travel agents until the ongoing investigations are completed.
The competition watchdog noted that it had received over 50 consumer complaints lodged against Fly540 after undertaking a market screening into consumer-related infringements.
Some of the allegations against the airline are:
False and misleading information on its capability to provide air transport services to passengers
The possibility of amending flight itinerary; arbitrary and/or short notice
cancellation of flights
Inordinate delays in refunding consumers.
EMPLOYMENT
Twiga Foods to Slash its Workforce
With effect from 30th November 2022, Twiga Foods will downsize its workforce.
The company, which previously disclosed it had a workforce of 1,000, says it has transitioned all its trade development representatives to agents as it changes its operations into an agency model for its sales team.
The company had in October stopped its engagement with expatriates who were offering different services across various departments.
AVIATION
1. Emirates Increases flights to Nairobi
Emirates announced that it will increase the frequency of its services to offer double-daily flights between Dubai and Nairobi.
Starting from 15 December, the airline will fully restore its services to pre-pandemic levels by bringing back all fourteen flights on the Dubai–Kenya route.
The four additional weekly flights will complement its existing services and grow Emirates’ seats to over 10,000 a week between the airline’s global Dubai hub and the capital city of Nairobi.
2. Kenya Airways to Begin Direct Flights from Mombasa to Dubai
Kenya Airways (KQ) announced that a direct flight from Moi International Airport in Mombasa to Dubai will start on December 15th.
The new route is expected to give tourists from the Middle East, Russia, Northern Europe, and Australia direct access to the tourist attraction sites in the coastal region as well as its hospitality industry.
3. Kenya Airways to delay salaries
Kenya Airways (KQ) will delay staff salaries for November amid a slump in revenue from a strike by its pilots that left thousands of passengers stranded at Jomo Kenyatta International Airport (JKIA) in Nairobi for four days.
The airline’s chief people officer, Tom Shivo, yesterday informed workers through a memo of the pay delay that is likely to affect 3,544 workers that were on its payroll in December.
The pay notice comes days after a labor court on November 8 ordered the pilots to resume work.
Background: Members of the Kenya Airline Pilots Association (KALPA), which represents about 400 pilots at the carrier, went on strike on November 5 after failing to resolve a dispute over pension contributions and settlement of deferred pay.WHAT YOU MUST HAVE MISSED
Kenya Suspends Bulk Avocado Exports for 3 Months
Kenya has suspended bulk avocado exports pending a review in January next year in an effort to protect the market for local produce.
Horticultural Crop Directorate Director Benjamin Tito stated that a survey carried out last month established that there is a shortage of mature fruits to support large orders.
Kenyan Shilling Hit Record Low of KES 122 Against U.S Dollar
Analysts at Sterling Capital expect the shilling’s losses to persist throughout 2023 and expect the mean exchange rate to stand between KES 126 and KES 128 across the year.
So far in 2022, the Kenyan shilling has shed 7.9% of its value against the U.S dollar.
Gates Foundation Commits $7 Billion to Support Health, Agriculture in Africa
Bill Gates announced that the Bill & Melinda Gates Foundation would spend more than $7 billion over the next four years to support African countries and institutions working to develop and implement innovative approaches to confront hunger, disease, gender inequality, and poverty.