Motorists to pay toll fees on major roads in the country
21 March 2022
Good Morning.
With such high temperatures in Nairobi, a weather forecast section isn’t such a bad idea!
This week we begin with an update on the regulation of Boda Boda’s in Kenya.
Nairobi Governor, Ann Kananu, announced that Boda Boda riders in Nairobi will be required to have biometric number plates.
The biometric number plates are to have unique colour codes for easy identification and when scanned, the number plates will reveal the name, ID number, and phone number of each rider.
Each of the 17 sub-Counties in Nairobi will have a different colour code.
FOREIGN EXCHANGE RATE
Motorists may soon start paying toll fees on major roads in the country
Last week, The National Assembly’s Committee on Delegated Legislation requested Members of parliament to pass the Public Finance Management (National Road Toll Fund) Regulations 2021.
The regulations seek to impose toll fees on major national roads. Additionally, it empowers the Transport Cabinet Secretary to declare any road (including a bridge or tunnel) on a public road, as a toll road.
If passed by parliament, the new toll fees will be implemented starting 1 July 2022.
Below is a list of highways where motorists may be required to pay toll fees
Nairobi-Nakuru highway
Nairobi-Mombasa highway
Nairobi-Thika highway
Nairobi’s Southern Bypass
roads like Jogoo road, Lang’ata and Ngong road could also be targeted
If implemented, The new charges will mean additional taxation since motorists will pay toll charges on top of the fuel levy (which is collected for road maintenance.)
CAPITAL MARKETS
Kenya ranks lowest in Africa for the number of stock listings since 2017
The 2021 Africa Capital Markets Watch report by PwC stated that Kenya recorded the worst performance among African countries in terms of initial public offerings (IPO).
For the sixth year now, There have been zero initial public offerings (IPO) in Kenya. Kenya's last IPO was in 2015 when property investment fund ILAM Fahari I-Reit was listed on the Nairobi Securities Exchange (NSE).
other markets that had zero IPOs in the five years to 2021 included Zimbabwe, the Central African Republic, and Cameroon.
Number of African IPOs since 2017
South Africa has had 16 IPOs, raising $4.14 billion (Ksh472 billion)
Egypt has 15 IPOs, raising $1.22 billion (Ksh139.7 billion)
Namibia, four IPOs, raising $232 million (Ksh 26.4 billion)
Nigeria, 2 IPOs, raising $690 million (Ksh 78.7 billion)
Uganda, 2 IPOs which raised $195 million (Ksh 22.2 billion)
Tanzania, 1 IPO -Vodacom Tanzania - which raised $212 million (Ksh 24.2 billion) in 2017
Rwanda had one IPO that raised $11 million (Ksh 1.2 billion) in 2017.
WORLD BANK
Kenya Receives a $ 750 Million loan from the World bank
Kenya received a $750 Million loan for its Economic Recovery from the World bank. The development policy operation loan, or DPO, is aimed at helping Kenya strengthen its fiscal sustainability.
This is the fourth time in three years that Kenya has accessed the DPO facility, bringing the cumulative borrowing to US$3.25 billion.
The total annual interest cost of the loan is approximately 3.0% - according to the world bank.
MOTOR VEHICLES
Toyota Kenya is venturing into trade-in business in order to increase sales
Toyota Kenya is set to venture into the car trade-in business as a strategy to grow sales of its new vehicles.
A motorist will be able to surrender his or her car and pay an additional amount to acquire a new model.
The Introduction of the trade-in will make it easier for the company’s customers to upgrade their cars which will help fast-track sales.
The company will run the trade-in business through an affiliate, Automark, which deals in certified pre-owned vehicles.
ENERGY
1. An increase in fuel prices
The State partially withdrew the fuel subsidy imposed from October last year, pushing diesel and petrol prices to an all-time high.
Without the subsidy, a Litre of super would have increased to Ksh 155.11 while diesel would have retailed at Ksh143.16 per Litre of diesel.
2. Regulations for Petroleum Road Transportation to be reviewed by EPRA
The Energy Petroleum and Regulatory Authority (EPRA) announced that it was in the process of reviewing requirements for petroleum road transportation Licenses, Tanker Permits, and Driver Certificates.
EPRA also announced plans to incorporate additional safety requirements for petroleum road transportation including:
Defensive Driving Certification for petroleum road tanker drivers
Period conformity assessment of petroleum road tankers.
WHAT YOU MIGHT HAVE MISSED THIS WEEK
Mobile phone lenders will be required to disclose the total charges for their loans
As of September, Mobile phone lenders will be required to disclose the total charges for their loans, including interest rates, late payment, and rollover fees, before disbursing credit to customers.
This is part of the conditions put in place by the Central Bank of Kenya (CBK) for licensing of digital mobile lenders. The CBK Act, 2021 requires Digital lenders to seek approval of the central bank for the pricing of their loans and products, subjecting them to the same rules as commercial banks.
Three out of seven cancer screening and treatment machines at Kenyatta National and Referral Hospital (KNH) are out of service
The Health Cabinet Secretary told Parliament that the hospital’s cancer treatment machines have broken down due to age and overuse. He explained that this forced some patients to wait for up to two years after booking to get treatment.
This means that the national hospital has had to outsource treatment to private hospitals, making it more costly for patients. State implements measures to control the skyrocketing prices of LPG gas
Currently, the 13kg cylinder gas is retailing at Ksh 3,440, up from Ksh 3,113. The 6kg cooking gas cylinder is being refilled at Ksh 1,560 up from Ksh 1,441.
Last week, The government unveiled a plan to import 30 percent of cooking gas through the National Oil Corporation of Kenya in order to control the price of the commodity.
The National Oil gas imports will be stored at the new Kipevu Oil Terminal, (nearing completion) and will strengthen the government’s hand in influencing gas prices by controlling the wholesale prices.
Kenya Revenue Authority Steps up its tax collection capabilities
KRA announced its plan to install mass custody flow meters, radar, and CCTV cameras in over 40 alcoholic manufacturers to track production in real-time.
This move comes after its recent scandal with Keroche Breweries where KRA alleged that the company failed to pay Ksh 22.78 billion in taxes for over 16 years.
Tough time for the construction industry as Bamburi Cement increases product prices by 2-10%.
Bamburi Cement Plc raised the price of its Nguvu, Tembo and Fundi brands by between 2% and 10%, with effect from March 10th, 2022.
The price hikes affect the products from its plants in Nairobi, Mombasa, Limuru and Sagana depots. Consumers have been advised to contact territorial retail sales managers or check the Navendor application for actual product price changes.