Good morning,
In this week’s ConversationStarter,
Kenyan Passport now faces restrictions in 54 Countries
The Henley Passport index which regularly monitors the world's most travel-friendly passports since 2006, released its latest rankings and analysis for this year.
Overall summary
Among the best passports to hold in 2021 are Japan (the best), Singapore, Germany, France, The US, Denmark, Austria.
Among the worst are Nepal, Yemen, Somalia, Afghanistan (the worst), an and Syria.
Details of the report on Kenya
Currently, if you hold a Kenyan passport, you face restrictions in 54 countries worldwide. The restrictions are as a result of the increase in Covid-19 (delta variant) cases in the country. The restrictions range from quarantine requirements to a total ban in other countries.
Among the countries with restrictions for the Kenyan Passport holder are: Hong Kong, Czech Republic, Australia, Argentina, Belgium, Portugal, Denmark, Singapore, Cameroon.
The number of countries that Kenyans can visit without a Visa dropped from 79 to 59.
The Kenyan passport has lost strength in Africa, dropping from the 9th position to 11th tying with Tanzania and Ghana.
TRAVEL
Kenya Airways launches "Book Now, Pay Later" service
Good news!!
Kenya Airways has launched a “Time to think service” which gives you abit more time before making payments for your bookings with the airline.
The benefits for this service are:
You can now book your flight and place the booking “on hold” for up to 21 days before you make payments.
The service can be booked at any Kenya Airways Sales Office or preferred Travel Agent.
The product offers you protection from ticket price increase and penalties incase of adjustments you make to travel plans.
CAPITAL MARKETS
Markets’ update
Safaricom and Equity stocks have added investors Sh54.09 billion and Sh14.34 billion respectively between May 18th and July 15th, accounting for 67.4% of the NSE gain during this period. 🤯🤯🤯
Coffee prices at this weeks’ auction jumped 6.9% . This is promising farmers better earnings for the year. The current price may increase dollar inflows which is positive for the shilling.
New Capital Markets Authority rule : Investors who lose funds through online investment portals or crowdfunding will not be entitled to claim damages from the Capital Markets Investor compensation fund.
Investors will be required to sign a risk disclaimer which would absolve the Capital markets Authority incase investors lose funds.
LABOUR LAW
Safaricom Fined for failling to hire blind man
Facts of the case :
Petitioner, Wilson Macharia, sued Safaricom for discrimination and violation of his rights after Safaricom failed to hire him as a customer care executive because Safaricom lacked special software to help him work.
Safaricom’s reason does seem valid but Mr Wilson was aggrieved because Safaricom only informed him of the lack of software after they had already interviewed him and invited him to sign an employment contract.
Decision of the High court:
Justice Makau ruled that Safaricom’s defence (that they did not have special software) was an afterthought that was introduced late to the detriment of the Petitioner. Moreover, Safaricom must have known that Mr. Macharia would need special software when they interviewed him and invited him to sign a contract.
Safaricom PLC has been ordered to pay Ksh6 million as compensation.
ECONOMY
High Household Debt in Kenya
Last week, The Central Bank of Kenya CEO warned legislators in Parliament of the rising household debt in Kenya. He revealed that the high household debt was fuelled by unregulated digital lending platforms.
His recommendation was that parliament passes the April 2021 version of the Central Bank of Kenya (Amendment) Bill, 2020. The bill gives the CBK power to regulate digital lending firms.
Facts as per CBK (Central Bank of Kenya) on Household debt
There are more than 100 unregulated digital lenders in Kenya and about 8.3% of the household population use these credit channels.
42 per cent of households missed meals as of March 2021 as a result of Covid-19 lockdown measures.
1/3 medium-sized entrepreneurs reported turning to mobile banking, with digital overdraft services such as Safaricom’s Fuliza recording significant upsurge in usage.
NCBA managing director John Gachora - “the bank is loaning about Sh10 billion a month on M- Shwari and more than Sh10 billion on Fuliza
UNIVERSITIES
University of Nairobi : why fees for new students have been doubled
The university announced an increase in fees for postgraduate courses and parallel degrees last week. The new fee structure was set apply to new students (joining as from this month) but the ministry of education announced on Friday that any fee increment will be shelved until 2022.
Some details of the increase
A two-year MBA course will now cost Sh602,000 from Sh280,000, excluding project fees
For Medical Students : KSh3.8 million for the five-year course, up from Sh2.35 million.
Law: Sh1, 020, 000 from Sh715, 500
Engineering courses: An average Sh2.1 million from about Sh1 million.
Why the increase in fees ?
The university recorded a 35% decline in admission numbers (about 35,752 students) in 2020 compared to admission levels in 2016.
A report by the Kenya Revenue authority revealed that The university owes the taxman about Ksh 7 billion.
The university sank into a Sh1.4 billion loss in the year to June 2018 after overshooting its budge.
Kenyan Environmentalist shot dead outside her home
Joannah Stutchbury, 67 years old, was shot dead outside her home on Thursday night. She was known for her campaigns to save Kiambu forest, near the Windsor hotel, from invasion by powerful real estate developers.
Earlier this year, it was reported that she had received threats by a developer who was planning to develop real estate in Kiambu forest, a gazetted forest belonging to the Kenya Forest Service.
Other ConversationStarters
The unrest in South Africa, sparked by the Imprisonement of Former president Jacob Zuma, claimed upto 72 lives as of Friday and over billion of rands incurred in damages after widespread looting and burning of malls.
Economists, predict a doubling of this cost as businesses and industries have shut down.
Water bills in Kenya are expected to rise soon. This is because one of World Bank’s terms for the Sh 80 billion loan to Kenya is that the government must implement new water conservation levies and water abstraction charges for water firms. The levies will force water firms like Nairobi City Water and Sewerage Company to pass the costs to households and businesses.
There is a proposal to introduce an Unemployment Insurance Fund to cushion salaried employees who become jobless.
According to the proposal, salaried employees who become jobless or unable to work because of illness will receive a fraction of their salary for 6 months. The proposal is that contributions to the fund will be 1% of employees monthly salary and employers will match employee contributions.
Education cabinet secretary announced that the proposed administrative changes to the management of University of Nairobi (announced two weeks ago) will be put to a halt until the Ministry of Education gives approval.