The fuel subsidy plan
9 October 2022
Good Morning. Members of the International Association of Science Parks and Areas of Innovation (IASP) have voted for Kenya’s Konza Technopolis to host their annual high-level conference in 2024.
Konza is one of the key flagship projects of Kenya’s Vision 2030 economic blueprint.
Oil producers deal to hurt Ruto's subsidy plan
On Wednesday, a group of 23 oil-exporting countries commonly known as Opec+, reached a deal to slash production by two million barrels per day. The deal is targeted at pushing prices per barrel back to $100 per barrel.
The decision by Opec+ countries has dimmed expectations of lower fuel prices in coming months, a projection that partly informed Kenya’s decision to remove subsidy on petrol last month.
President William Ruto’s plan to fully scrap fuel subsidies will face major headwinds following the decision by Opec + countries.
Kenya Revoked its ban on GMO Crops
Kenya lifted the ban on openly cultivating genetically modified crops (GMO ) and animal feeds.
In a meeting Chaired by President William Ruto in State House Nairobi, the cabinet explained that the decision was among the medium-term measures put in place to address the current food shortage caused by the drought in the country.
The Cabinet further expounded that there was a need to redefine the country’s agriculture. Among the recommendations made by local and international experts was the adoption of disease- and pest-resistant crops.
Earlier this year, the United States, via its trade representative’s office criticized Kenya over its ban of GMO ENERGY
Dry oil wells
Kenya has failed to strike oil and gas deposits in the coastal strip that has been at the centre of an international border dispute with Somalia for years.
Seismic surveys at Mlima-1 well, which is known as Block L11B in the Lamu Basin, revealed that the wells were dry, ending a 10-year search for oil in the coastline that had emerged as one of the world’s hottest exploration prospects.
According to Business Daily, the Energy and Petroleum Regulatory Authority (EPRA) said that ENI Kenya Business Venture (BV) folded the project before mid this year after it failed to trace deposits of oil and gas in the area.
The failed Lamu Basin project leaves the country with three exploration basins in Anza, Mandera and Tertiary Rift Basin.
COMPANIES
Telkom Kenya is now a fully-owned Government Parastatal
The British Investment firm, Helios Investment Partners, offloaded a 60% stake in Telkom Kenya, making the company a wholly-owned state parastatal. The Kenyan government, which previously owned a 40% stake in Telkom, now wholly owns the company.
The collapse of the proposed merger between Telkom and Airtel Kenya following disapproval of the transaction may have accelerated the exit.
In 2015, Helios exited Equity Bank Group with the sale of its final stake to the National Social Security Fund (NSSF) Uganda
Helios also exited its investment in Vivo Energy to Vitol Group following a partial exit through a public listing on the London Stock Exchange.
DATA PTOTECTION
Digital Credit Providers under investigation for misuse of personal data
The Office of the Data Protection Commission (ODPC) launched investigations into 40 Digital Credit Providers for misuse of personal data. The ODPC stated that it launched investigations following complaints from members of the public on the safety of their data.
As of 30 September this year, ODPC had received 1,030 complaints. The office admitted that 299 of the 555 cases were on Digital Lenders.
This represents 54% of all cases admitted
The Digital Credit providers under investigation
Branch, Tala, APESA, ASAPKASH, Cash Sea, Collectplus, Coopesa, Credit Kes, Credit Moja, Deltech Capital Limited, DIRECT CASH, Fairkash.Others are Flashpesa, Flexi Cash, Hela Credit, Hikash, IKASH Connect, INSTARCASH, IPESA, KASH LOAN, KASHBEAN, KASHPLUS, KASHWAY, KESLOAN, LEMON KASH, Lioncash, M-CREDIT, METALOAN, Mokash, PAPCASH, POCKET CASH, PREMIER CREDIT LTD, ROCKET PESA, Senti, Skypesa, Wakanda Credit, Zash loan, Zenka Digital Limited and Zuri Cash.BANKING
Panic at First Community Bank
First Community Bank faced a bank run triggered by what it said was a system hitch that affected its operations.
Its Chief executive officer, Mr Hussein Hassan, said in a statement that malicious speculation had led to panic by depositors who then rushed to withdraw their savings, thus putting a strain on its operations.
To remedy the situation, the bank placed limits on cheque clearance and withdrawal. The Bank’s Chief executive officer stated that the restrictive measures were necessary to maintain stability of the bank in the short and long term.
A look into First Community Bank First Community Bank is a tier- three Bank with assets worth up to Sh26.2 billion
Ksh18.6 billion or 70% of the assets are locked in loans
The Bank has a 0.38 per cent market share and it ranks 27 among Kenya’s 39 banks
As at June this year, the bank has Ksh 22.2 billion in deposits.
WHAT YOU MIGHT HAVE MISSED
Kenya Airports Authority to conduct test flight on the newly refurbished Terminal 1B at the Jomo Kenyatta International Airport (JKIA)
The Kenya Airports Authority (KAA) announced plans to conduct its first test flight on the newly refurbished Terminal 1B at the Jomo Kenyatta International Airport (JKIA) on 15th October 2022.
In January 2021, KAA embarked on a facelift project at the JKIA to improve Terminal 1B and 1C customer experience at a tune of KES 963 million, which were notorious for congestions and unfriendlier flight experiences.
Ethiopian Government granted Safaricom a mobile money license
Safaricom became the first foreign telecoms company to be granted a mobile money licence to operate in Ethiopia, which has a population of more than 115 Million.
The announcement was made by Ethiopia’s Minister of Finance Ahmed Shide during the official switch of Safaricom Ethiopia’s mobile telecommunications network and services in Addis Ababa, the country’s capital city.
Consumers in Europe cut spending on Kenyan flowers
Consumers in Europe have cut spending on Kenyan flowers due to a spike in the cost of living which forced households to cut down on less essential purchases like flowers.
The decline in exports is a blow to Kenya because horticulture is a major source of foreign exchange for Kenya.