TRADE
Preferential trade deal with the European Union (EU) and Kenya
Kenya has inched closer to concluding a preferential trade deal with European Union (EU), preserving a long-term tax-free access of exports to the 27 countries in the bloc while gradually opening up her market for duty-free imports and investments from Europe.
The European Parliament on Thursday endorsed the pact, paving the way for heads of State and government to give final approval and complete the ratification process on the EU side. Kenyan lawmakers have also to debate and approve the document for it to become enforceable. “It is the first agreement with a developing country in which the EU's new approach to trade and sustainable development is reflected,” the European Parliament said in a press statement on its website. Some 366 EU lawmakers voted in favour of EU-Kenya Economic Partnership Agreement (EPA) which was rejected by 86 members, while 56 members abstained, the statement said. The pact will ensure Kenya’s largely farm produce exports continue to access the EU markets duty- and quota-free.
ANTI-MONEY LAUNDERING
IMF, World Bank to help Kenya get out of the dirty cash grey list
The Bretton Woods institutions and Western allies have committed to aiding Kenya in rectifying its deficiencies in combating money laundering and terrorism financing.
This support comes in response to Kenya being recently placed on the 'grey list' by the Finance Action Task Force (FATF), a global watchdog against money laundering, due to insufficient safeguards against illicit cash flows.
Njuguna Ndung’u, the Treasury Cabinet Secretary, informed the National Assembly’s Debt and Privatisation committee that bilateral and multilateral donors have pledged assistance to help Kenya address these challenges. Prof Ndung’u emphasized the importance of capacity building for critical institutions established by legal instruments to effectively tackle money laundering, terrorism financing, and the proliferation of weapons of mass destruction.
Notable entities such as the International Monetary Fund (IMF), the World Bank, the European Union (EU), the United Kingdom, and the United States have promised support to strengthen Kenyan institutions, including the Financial Reporting Centre (FRC).
The 'grey list' designation places Kenya among 23 other countries subjected to enhanced monitoring by FATF to ensure compliance with international standards on anti-money laundering (AML), combating the financing of terrorism (CFT), and countering the proliferation of weapons of mass destruction (CPF).
Kenya's inclusion underscores the urgency of bolstering its regulatory framework and institutional capabilities in these areas.
INTELLECTUAL PROPERTY
KIPI Grants utility model patent for specialized keg barrel caps
The Kenya Industrial Property Institute (KIPI) has granted a utility model patent for an innovation aimed at tackling the issue of unauthorized access to contents in Keg barrels. This development holds promise in combatting adulteration and illicit siphoning of alcohol products.
According to KIPI's recent journal publication, the patented solution involves the creation of specialized Keg barrel caps designed to offer tamper-evident features, effectively detecting any irregular attempts to access the barrel contents. By addressing the core problem of unauthorized access, this innovation aims to mitigate financial losses for consignors and consignees, who often discover such incidents when it's too late to identify the perpetrators.
KIPI emphasizes the significance of this utility model in light of the substantial financial ramifications and difficulties in identifying perpetrators associated with unauthorized access to Keg barrels.
The tamper-evident functionality of the proposed Keg barrel caps ensures that any attempts at irregular access are readily identifiable by the concerned parties.
This development is particularly timely given the government's intensified efforts to combat illicit alcohol production, prompted by a tragic incident in Kirinyaga County resulting in the deaths of 17 individuals due to the consumption of substandard liquor.
Successful implementation of this innovation is poised to play a pivotal role in curbing harmful practices such as adulteration, thereby safeguarding consumers from health hazards associated with tainted alcoholic products.
COURT
Bank, clothing firm’s 34-year case returns to the Supreme Court
A 34-year-old battle pitting clothes maker Manchester Outfitters against Standard Chartered Bank has landed at the Supreme Court for the second time. Court of Appeal judges Mohamed Warsame, Kathurima Minoti and John Mativo certified the case to be of public interest.
According to the three-judge bench, the Supreme Court will have to decide whether banks must re-register a security whenever a borrower takes a subsequent loan, even if the security for the previous loan has not been released. The bench, led by Justice Warsame, also addressed the question of whether a borrower is obligated to repay an unsecured loan.
The third issue that they flagged was if an incomplete record of appeal denies a party a right to fair hearing. The dispute over a Sh2 million loan has resulted in a legal battle that has dragged on in court for three decades and the amount at the heart of the dispute is now sh 33 million borrowers
COMPANIES
Mauritian Company buys stake in Kenyan beverage firm
Mauritius-incorporated firm Phoenix Beverages Limited (PBL) has received approval to acquire a 28.15 percent stake in a local firm that manufactures alcoholic and non-alcoholic beverages.
The Competition Authority of Kenya (CAK) on Wednesday announced it had - cleared PBL to acquire the minority stake in Africa Originals Limited, an England and Wales incorporated firm that owns Savannah Brands Company.
The value of the deal has not been made public. “This approval has been granted on the finding that the transaction is unlikely to negatively impact competition in the market for manufacture, processing, distribution and sale of alcoholic ciders, alcoholic spirits and non-alcoholic ready-to-drink beverages,” said the CAK.
Savannah Brands manufactures, processes, distributes and sells alcoholic and non-alcoholic beverages including Kenyan Originals (KO) Alcoholic Fruit Cider, Kenyan Originals Gin and Kenyan Originals Iced Tea and Tonic. PBL is also a manufacturer and seller of alcoholic and non-alcoholic beverages. PBL’s parent company IBL Group owns several businesses in Kenya including Naivas Limited. The completion of the deal will also give PBL minority controlling rights relating to, among others, budgets, annual business plans and appointment of senior executives.
WHAT YOU MUST HAVE MISSED
Two Indian firms fight for trademarks on electronics sold
Two Indian firms have obtained court orders blocking local traders from infringing on its trademarks to market and distribute electrical products.
Using its trademarks, Havells Limited and QRG Enterprises Limited obtained the High Court order blocking Mr Duncan Maina Gathu and Galactic Systems Limited from marketing and distributing circuit breakers. The electrical products are marketed and distributed in an online platform through a company known as Jiji Online Marketplace Kenya Limited. The two Indian firms said they are the proprietors of Havells trademarks worldwide and have registration or applications in more than 110 countries, including Kenya.
Vaccine Institute to open head office in Kenya
The International Vaccine Institute (IVI) is set to open a country and project office in Kenya, which will serve as the headquarters of its Advancing Vaccine End-to-End Capabilities (AVEC) project in Africa.The AVEC Africa initiative aims to accelerate the development and manufacturing of vaccines in the region through end-to-end research and development projects, strengthening the vaccine ecosystem in Africa and advancing vaccine research and development in the region. The office will also collaborate with local partners, including the Kenya BioVax Institute, to manage its vaccine portfolio including vaccines for infectious diseases such as cholera, typhoid, chikungunya, shigella, salmonella, schistosomiasis, hepatitis E, HPV, and Covid-19. The initiative follows approval by the IVI Board of Trustees (BOT) decision to pursue AVEC Africa, marking a significant step in the organization's efforts to advance vaccine research and development in Africa
How Kenya deal with gulf firms inflated prices
Consumers in Kenya and neighboring countries paid billions of shillings in the additional cost of petroleum products under the Government to Government oil deal that inflated the price of fuel compared to the previous supply system in which it was modeled.
The additional burden was introduced by increased premiums charged by the oil importers compared to what was collected under the open tender system. The unexplained premium increased the costs to the consumer which saw Uganda protest the markup and take measures to purchase products from Tanzania. The Auditor General said in a report that her office was blocked from reviewing the details of the agreements that Kenya signed with the United Arab Emirates and the three oil marketers Gulf Energy, Galana Energies and Oryx Energies.