UK protests Kenya's ban on second-hand buses and trucks
29 August 2022
Good Morning.
On Friday, data from the Central Bank of Kenya (CBK) revealed that the Kenya shilling exchanged at an average of 119.9059.
The UK protests Kenya's ban on second-hand buses and trucks
The United Kingdom protested Kenya’s impending ban on second-hand imports of buses and trucks, fearing the embargo would cut the flow of used commercial vehicles from the country.
Kenya and Britain signed a new trade deal in December 2020 allowing duty-free access to Kenyan goods to the UK market avoiding a post-Brexit disruption.
The impending ban would therefore negatively affect the flow of goods between the two nations.
The protest will be handled by the Kenya-United Kingdom Economic Partnership Agreement (EPA) Council
Background:
In April, The Kenya Bureau of Standards (Kebs) issued a notice freezing importation of used vehicles more than seven meters in length from July 2022.
Trucks with load capacities of 3.5 tonnes and above were also banned. Imports of tractor heads and prime movers not older than three years were allowed access until June 2023 after which only new units would be allowed.
However, this notice was suspended by Justice Oscar Angote of the Environment and Land Court in early July, pending the determination of a petition to quash the decision by KEBS.
STUDENT LOANS
Helb interest, penalties, or fines that exceed the principal amount were declared unconstitutional
Last week, Justice Alfred Mabeya ruled in favour of three Helb beneficiaries who argued that the interest rates and penalties on non-performing loans were exorbitant and contravened the Constitution.
The three had borrowed loans from the Helb to facilitate their undergraduate studies, but the exorbitant interests and penalties made it impossible for them to service the loans
What is the repayment period?
HELB Beneficiaries are expected to start servicing their loans a year after completing their studies and clear the balance within four years.
The short repayment period has been linked to the growing list of defaulters.
DEBT
Kenya will not get debt relief from China
China locked Kenya out of a new list of African nations that will receive debt relief this year due to the elevation of Kenya to the middle-income status.
The debt relief plan by China is to help 17 poor states in the continent burdened with its huge loans.
China made the announcement during the Forum on China-Africa Cooperation that seeks to boost ties between China and its African allies. Chinese Foreign minister Wang Yi said at the forum that the debt relief plan “demonstrates China’s commitment to fostering stronger economic ties with the African continent”
In 2014, Kenya joined the league of the world’s lower middle-income nations having crossed the United Nations’ $1,045 gross domestic product (GDP) per capita threshold.
ELECTIONS
The 37 outgoing governors to cost Kenyans Ksh 1.3 billion in sendoff packages
Each exiting governor is entitled to a gratuity equivalent to 31% of their annual basic pay for every year served. Governors earned a basic monthly salary of Ksh 924,000 while their deputies pocketed Ksh 621,250 a month in the last year of service. - This data is according to the Salaries and Remuneration Commission (SRC) circular.
Breakdown of the send off package
31% of salary for each year served.
16 one-term governors to get Sh275 million
21 retiring governors to get Sh722 million
Total: Sh977 million
Deputy governors under the 16 to get Sh77 million
Deputies governors under the 21 to get Sh202 million
Total: 279 million
EAST AFRICA
The East Africa Community Implemented a 35% duty on the importation of some products into EAC
Kenyan importers will pay more to bring in cereals and textiles from outside the East African Community (EAC) following the implementation of the 35 percent duty on some products.
The maximum 35 percent duty as Common External Tariff, which took effect on July 1 this year, covers 499 tariff lines (or products), including:
meat, dairy produce, live trees, furniture, edible vegetables, edible fruits, tea, coffee and mate and animal and vegetable fats (oils).
cocoa and cocoa preparations, preparations of cereals, meat and fish, cement, paints, cosmetics, plastic water tanks, wigs and ceramic products, textiles, iron and steel, pen, beverages, spirits and vinegar.
WHAT YOU MIGHT HAVE MISSED
Roam, previously Opibus, has launched a new electric mass transit bus
Swedish-Kenyan mobility startup Roam, previously Opibus, has launched a new electric mass transit bus, the Roam Rapid, which is specifically designed to address the unique challenges of public transport in Nairobi.
The bus has a capacity of 90 passengers, is equipped with a 384-kWh battery pack that allows for a range of 360 kilometers, and also has the ability to fully charge in less than two hours through DC charging ports.
Total bank loan defaults in Kenya crossed the 500 billion shillings mark
The latest Central Bank of Kenya (CBK) data shows that defaulted loans rose by Ksh 30.6 billion in June to Ksh 514.4 billion -the sharpest monthly increase in recent history-
The mounting defaults are a reflection of the struggle of businesses in an economy that is yet to fully recover from a coronavirus-induced slump.
New Members of Parliament set to challenge the gazette notice that scrapped sitting allowances in plenary sessions
Newly elected MPs have plans to initiate the process of disbanding the Salaries and Remuneration Commission (SRC) following its decision to scrap sitting allowances in plenary sessions.
The MPs accused the SRC of overstepping its mandate and asked their employer, the Parliamentary Service Commission (PSC), to challenge the decision by moving to court.
Background: The SRC in a gazette notice issued last month scrapped sitting allowances in what it said will save taxpayers over one billion shillings yearly.
NCBA group reported a half-year profit of Ksh 7.8 Billion
The growth was attributed to rising income, with total operating income up by more than 20 percent at Ksh 29 billion.
The lender’s total assets grew by 11.8 percent to Ksh 604.3billion and;
the Net interest income increased to Ksh 14.8 billion.
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