Good morning,
Last week, petrol and diesel prices went down by Ksh 5 while Kerosene prices reduced by Ksh 7.28. The reduction in prices was not cheap though, Treasury will have to seek about ksh 37.6 billion to cover the budget deficit which resulted from the reduction in fuel prices.
ICJ Ruling on the Kenya - Somalia border row dispute
Even though the court’s ruling seemed more like “Lets divide the disputed area into equal halves for both parties”, the ruling largely favoured Somalia’s arguments and rejected Kenya’s argument that the border line should follow the latitudinal line.
- The case was filed by Somalia in 2014. (click below for detils of the conflict
Implications of this ruling
Kenya will lose a section (1 out of 7) of offshore oil blocks.
280 Kilometres of Ocean owned by Kenya are to be transferred to Somalia.
Kenya’s Exclusive economic zone at sea will be reduced to 121,000 square kilometres.
Kenya’s claim to the continental shelf will be reduced to 41,000 square kilometres.
The ruling limits Kenya’s access to the Indian Ocean and leaves out a large area where Kenya cannot conduct security surveillance to prevent piracy and organised crime in the region.
Looking forward:
Kenya had already declined to participate in the court’s oral hearings and had officially withdrawn their recognition of the ICJ ruling.
The ICJ still made the ruling stating that Kenya cannot retroactively withdraw consent.
Despite the ruling, Somalia has little enforcement ability because it does not have a functioning navy or military. It will likely depend on the UN Security council to enforce its ruling.
President Uhuru Kenyatta issued a statement rejecting in totality the ICJ ruling.
TRADE
Kenya and Barbados sign bi-lateral trade agreement
Kenya and Barbados have signed three key bilateral agreements:
a) An air service agreement for co-operation in aviation.
b) A Memorandum of Understanding on the development of the national botanical garden of Barbados - This agreement is for Environmental conservation-
c) An agreement on the establishment of a Joint Committee on Trade and Investment in Bridgetown.
Expected results of the agreement
Kenya & Barbados will have direct air and sea links to enable free movement of people and goods between the two nations.
TRAVEL
How many countries can you travel to with a Kenyan Passport?
According to the Henley Passport Index report, Kenyan passport holders face restrictions in 43 countries. The number has dropped from 54 countries in July and it can be attributed to the easing travel restrictions around the world plus the Covid-19 vaccination drive in Kenya.
Countries that still have restrictions to the Kenyan passport:
Taiwan, Sweden, Vatican City, South Korea, Singapore, Poland, Hong Kong, Bangladesh, Chile, Czech Republic, Cyprus, Cameroon, Portugal, Australia, Argentina, Cambodia, Canada and Denmark.
Other statistics from the report:
The Kenyan passport has lost its strength in Africa, dropping from the 11th position to 12th in the review. (Kenya now falls behind Tanzania)
A Kenyan can visit 29 countries without a visa and obtain the entry document on arrival in 31 countries.
CREDIT RATING
Kenya gets a B+ creditworthiness rating
Agusto & Co. Limited, a Pan-African Credit Rating Agency and a leading provider of industry research and knowledge in sub- saharan Africa has rated Kenya’s creditworthiness at B+.
The B+ simply means that the debt situation is ‘moderately high risk’.
why the B+ rating?
The lower rating is attributed to: a) Kenya’s high debt levels, b) The COVID-19 pandemic & its effects on the Economy, c) The deterioration of the Kenyan Shilling against major currencies, d) Rising inflation, e) High rate of unemployment
However, B+ is not too bad. It reflects that Kenya has a well-diversified economy and has maintained its position as the leading business hub in the East African Region.
TRANSPORT
Korea loans Kenya for BRT (Buses Rapid Transit) Infrastructure
Korea has loaned Kenya Sh6.3 billion for BRT buses and corridors to improve public transport in Nairobi.
The BRT corridors are expected to ease traffic and Congestion in the city plus reduce time spent on major roads.
More Detail on the loan
The loan will attract an interest rate of KSh0.1% per anNum and a service charge of KSh0.1% per annum.
The loan will be serviced by taxpayers until 29th January 2061.
The government plans to launch 6 BRT corridors in Nairobi.
HEALTH
Funeral cover - willing to take a funeral insurance cover?
UAP Old Mutual and the Kenyan Urban People Association (Kupa) have made an agreement to introduce a funeral cover aimed at cushioning Kenyans from unexpected & expensive funeral costs.
details of the funeral cover
Bereaved families will get between Sh50,000-500,000 in cash benefits and the cover will also provide: a coffin, transport, mortuary bill, lowering gear, tents, plastic chairs, and a public address system.
The cover will have monthly premiums from as low as Ksh 500.
Children will be covered up to the age of 18 or 24 (if they are still under their parents’ care or in school)
The entry requirements : the minimum age for children is 3 months, the upper age limit for entry is 75 years with a maximum exit age at 85 (subject to cover renewal).
Other ConversationStarters
Drone delivery services in Kenya - The Postal Corporation of Kenya (PCK) has partnered with Swift Lab Limited to roll out drone-based last-mile delivery services countrywide. The drone services will be used for medical supplies, e-commerce purchases and essential cargo.
According to the 3 year agreement, Swift Lab Limited will manufacture and operate the drones (which can travel up to 70km).
Update on Safaricom’s FULIZA - As from November 14, M-Pesa users who default on their Fuliza loans will have their M-Shwari and KCB M-Pesa accounts blocked or used to settle their outstanding balances.
Should the Cabinet Secretary for Education have power to control fees charged in Public universities? - The Education Cabinet secretary fiercely backs the Universities Amendment Bill 2021 which gives him power to regulate the fees charged in Public universities.
He stated that the amendment is necessary because currently, the decisions of fees are made without the consultation of the Education ministry.
More Kenyans use M-shwari - Deposits in Safaricom’s M-Shwari has increased to Sh571.1 billion from Ksh 320 billion last year. This shows that more Kenyans are using M-shwari for savings and borrowing.
Illegally generated electricity tokens - An estimated number of 2,500 Kenya Power customers bought illegally generated tokens worth roughly Ksh 35 million.
Huduma Number - The High Court declared the roll out of Huduma Numbers illegal, on grounds that it was in conflict with section 31 of the Data Protection Act which required the government to carry out data protection impact assessments before rolling out the cards.
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