Looming Joblessness Crisis ?
31 October 2022
Good Morning.
Looming Joblessness crisis in Kenya ?
Data from the Kenya National Bureau of Statistics (KNBS) indicate that the country will add 11.7 million to the job market over a period of 15 years from 2020 despite households getting fewer children.
Kenya’s total workforce will increase 40.6 percent to 40.4 million by 2035 This points to mounting unemployment in an economy that is not generating adequate jobs for school leavers and college graduates.
Data from KNBS
About 36% or 10.1 million of the country’s 28 million population in the workforce are out of jobs amid poverty, pointing to a growing dependency burden.
Formal jobs created last year stood at about 173,000, signalling a resumption in hiring after economic growth rebounded from Covid-19 shocks.However, the additional salaried jobs in the formal sector fell short of the 192,400 jobs, which were shed in 2020.
More than 562,000 students are enrolled in university, worsening the plight of school leavers.
Way forward
Kenya will have to spur economic growth and diversify its economy in a bid to tackle its acute youth unemployment problem. Many kenyans between 18 and 35 have no job at all despite having university degrees or other suitable qualifications.
Drought hits hard in Kenya
Pastoralists in Kajiado have been losing hundreds of their livestock to the ongoing drought daily; in addition, prices of livestock in the county have plummeted as farmers rush to dispose of weak and starving animals.
Farmers in Bisil market are selling sheep and goats for as low as Ksh 100 while a cow is selling for a throw-away price of Ksh.500, down from between Ksh.20,000 and Ksh.50,000 before the drought's peak.The ravaging drought in the county has forced residents who depend on these animals for their livelihood to dispose of them to buy food and other necessities.
According to the government and humanitarian agencies, 4.35 million Kenyans in 29 counties are in need of food assistance.
CAPITAL MARKETS
1. CBK to raise 60bn new infrastructure bond
The Central Bank of Kenya (CBK) is selling a 14-year infrastructure bond, seeking to raise Sh60 billion from the paper on which investors will not pay taxes on interest received.
The bond, part of which will be redeemed early, is on sale until November 8.
The interest rate on the security will be determined by the market.
Bond investors have been pressing for higher interest rates on new sales of government debt securities.The bidding for higher interest rates comes amid rising inflation and the weakening of the Kenya shilling – two factors that erode the value of portfolios of fixed-income investors.
2. Capital Markets Authority published regulations on Crowd funding
The Capital Markets Authority (CMA) publised new crowdfunding regulations in Kenya aimed at taming risks such as fraud, doubtful returns, and vulnerability to hacker attacks.
Crowdfunding is the collection of funds from the population (crowd) through a technological platform and comprises three parties; the issuer (fundraiser, a legal entity) and the investor (donor of funds).All existing investment-based crowdfunding platforms will be required to comply with the regulations, within one year of the commencement date.
The regulator announced the gazettement of the Capital Markets (Investment-Based Crowdfunding) Regulations, 2022 on Tuesday.
5G
Safaricom rolls out 5G Newtwork
Safaricom became the first telecommunication provider in Kenya to roll out the 5G network. The company began the roll-out by switching on the network in 5G-ready areas enabling customers to enjoy fast and reliable internet connectivity for their homes and businesses.
The telco announced 5G trials in March last yearSafaricom has 35 active 5G network sites spread across Nairobi, Kisumu, Kisii, Kakamega and Mombasa
It plans to expand to 200 sites across the country by March 2023.
How to access 5G
Customers in 5G-ready zones can access 5G Wi-Fi by purchasing a 5G router at KES 25,000 plus a setup fee of KES 5,000 and selecting from three packages on offer.
Customers will also have the option of signing up for a 36-month contract that will enable them to receive the router for free.
JUDICIAL DECISION
High Court ruled that the Small Claims Court does not have jurisdiction over disputes related to rent or rental arrears.
get access to the case here:
Justice David Majanja ruled that the small claims court did not have jurisdiction to deal with rent dispute cases.
Judge Majanja said that the small claims court is a subordinate court of limited jurisdiction and according to Section 12(1) of the small claims court deals with five areas which include:
a contract for the sale and supply of goods or services
a contract to money held and received
liability in tort in respect of loss or damage caused to any property or for the delivery or recovery of moveable property
compensation for personal injuries
set-off and counterclaim under any contract.
“It is clear that a claim for rent does not fall within the sphere of “money held and received’’ as the landlord in a claim for rent arrears does not hold any money that is due to a tenant nor does a claim for rent give rise to tortious liability or a claim for compensation for injuries,” the court ruled.
WHAT YOU MUST HAVE MISSED
NHIF published regulations to increase monthly contributions
The National Hospital Insurance Fund republished regulations that were rejected by Parliament before the August 8 General Election, which proposes that workers earning more than Ksh 100,000 should contribute 1.7& of their gross salary to the fund.
With the backing of President William Ruto, the fund is seeking community input on the new regulations ahead of parliamentary approval for the new rates.
DRC Congo expelled the Rwanda ambassador as M23 rebels captured strategic town
The Democratic Republic of Congo expelled Rwandan ambassador Vincent Karenga, in retaliation for Kigali's alleged support to a rebel group active in the east of the country. The DRC government’s spokesperson Patrick Muyaya said on Saturday. The ambassador was given 48 hours to leave the country.
The decision by the DRC's high defense council to expel the ambassador came following a government meeting to assess the security situation in country. This move is likely to further heighten tensions between the DRC and Rwanda.
DRC authorities accuse Kigali of backing M23 rebels who are fighting in the nation's eastern provinces. Rwanda has repeatedly denied the allegation.
Electricity prices rose for the second month in a row
The Energy and Petroleum Regulatory Authority (EPRA) increased the fuel and foreign exchange components of the power bill.Electricity prices have risen for the second month in a row, attributed to high oil prices and a weak shilling.
The Fuel Cost Charge (FCC) will increase to KES 7.09 per unit of electricity consumed this month from KES 6.79 last month while the Foreign Exchange Fluctuation Adjustment will increase to KES 1.48 per unit from KES 1.37 in September.