Touting for passengers now illegal in Nairobi.
30 April 2021
Good morning,
I once asked a matatu tout ( a.k.a“conductor”) why he must tout for passengers so loudly and aggressively. His response was that “Kenyans need to feel wanted, and so touting attracts more passengers”.
Sadly for him, The Nairobi City County Public Nuisance Act (signed last week), classifies touting as public nuisance and states that the offence will attract a fine/a jail term.
Moreover, the act introduces the following rules on public nuisance:
Keeping of trees and hedges in homes/places of work that obstruct streets and footpaths will attract a fine.
Keeping animals or poultry, which are a nuisance in the neighbourhood is also criminalised.
Sleeping in a kitchen/room where food is prepared or stored for sale will attract a fine not exceeding Ksh50,000, a six-month prison term, or both
Blowing your nose without a handkerchief/tissue paper, or spitting on a footpath in Nairobi attracts a fine of kh10,000 or six months prison term.
Perhaps the greater task is the implementation of these rules by the county government.
TRANSPORT
Why modifications on your car could soon mean no insurance cover
When we think of modifications, the first thing in mind is always the picture above. However, modifications also include small details like the use of facelifts, spacers, and spoilers.
As of last week, Several underwriting firms were already turning away modified vehicles from getting insurance. Their claim was that the modifications compromised the safety and performance of the vehicles which increased risk of accidents.
some more details of this
UAP Insurance Company is no longer issuing insurance for vehicles that have been modified from using petrol/diesel to liquefied petroleum gas (LPG).
Motor Accessors state that modifications (use of facelifts, spacers, and spoilers) are interfering with the performance and safety of cars meaning that insurance companies cannot properly assess the risk.
interesting fact on this: Facelifts such as putting high valued radio is said to increase chances of theft.
CAPITAL MARKETS
1. New rules for Alternative investment fund
The capital markets authority published rules for alternative investment funds. The rules include:
Investors in the Fund will need a minimum of Ksh 1million to participate.
Each fund will be required to maintain a minimum capital of Sh10 million.
The fund is limited to just 20 investors at any one time.
Fund manager shall have a continuing interest in the fund of not less than 2.5% of the scheme property or Sh1 million, whichever is lower, (this will be in the form of investment in the AIF)
2. An online platform to help foreign and local investors at the Special Economic Zones (SEZs) to get a range of government services remotely has been launched.
This portal will allow investors to make online applications for licences and for approvals from state agencies.
The online site will have data on Kenya’s socio-economic development and a description of the current investment opportunities.
INTERNATIONAL RELATIONS
Update on Kenya’s free trade agreement with the United States
In July last year, Kenya and the US announced the start of negotiations to conclude a free trade agreement that would complement regional integration efforts within the East Africa. (the agreement has not yet been concluded)
Republican Senators are pushing President Joe Biden's administration to conclude a free trade agreement with Kenya. The senators state that this agreement paves way for business and investment plus it builds on the African Growth and Opportunity Act (AGOA) which expires in 2025.
Mr. Isaac Rutenberg (the Director of CIPIT, Strathmore university) argues that the trade agreement will establish an unfair competitive advantage for US firms because they will have unfettered access to Kenya’s data. Click here to read the article.
WATER
Water bills set to increase sharply
Water bills will increase from 50 cents per cubic metre to Ksh5 per cubic metre for domestic use and livestock farming. This is because the government has raised the regulatory charges on water companies as advised by the World Bank.
Note:
an additional five percent of the charges will be charged as conservation levy.
The Water Resource Authority (WRA) will have power to review the charges annually, tracking after inflation.
CONVEYANCING & LAND
Sectional Properties Act 2020 set to be amended to allow for a phased and mixed development of properties.
Currently, the trend for property developers is to develop property in phases because it reduces cost of property development & the developer can start earning from property already developed.
Law according to Sectional properties Act 2020
Today, If a developer commits the title deed to sectional properties (while still building in phases), then the developer cannot reclaim property because the individual unit owners now own the land. This means he/she can be prevented from utilising empty spaces on the property.
Benefits of the amendment
Land can now be subdivided into phases and now the developer/original owner can give out separate head titles to individual unit owners.
Developers will issue separate ownership documents for units of buildings sitting on one title deed even when the entire land is not fully developed.
MUST KNOW CONVERSATIONSTARTERS
Why trucks from Mombasa are no longer transporting goods to South Sudan - The Kenya Transporters Association has suspended services for the 2nd time this year.
Truckers have stopped hauling cargo to South Sudan from Mombasa port facilities because of security. As of the start of last week, 5 trucks travelling from Kenya to Juba were attacked and 2 Kenyan drivers were killed.
9 dead after a crane malfunction at construction site in hurlingham - seven Kenyans and two Chinese nationals operating a crane at the proposed Qwetu Hostels site died after the crane mulfunctioned.
Update on IMF (International Monetary Fund) and contributions to Kenya - The IMF has allocated US$ 737.6 Million worth of special drawing rights (SDRs) to Kenya. This is part of its intervention to combat the COVID-19 crisis in Kenya.
Mombasa road menace- Commuters in Nairobi who use Mombasa road were caught in bumper-to-bumper traffic on Thursday night. Some were stranded overnight, some slept in their cars while others got home in time to leave for work again.
The road construction has caused the worst gridlock.
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