Good morning,
We kick off this weeks’ ConversationStarter with some good news for you.
Good news 1 : Kenya will be removed from the UK’s Covid-19 red list effective Wednesday this week. This eases travel restrictions between the 2 countries as they both step up vaccination drives.
Countries still in the red list include: Rwanda, Seychelles, Sierra Leone, Somalia, South Africa, Sudan, Tanzania, Ethiopia, Uganda, Zambia, Zimbabwe.
Good news 2 : We have introduced a new category in the last section of the newsletter - Podcast of the week/Twitter space of the week.
Yet another increase in Fuel prices
In what seems to characterise Kenya’s economic woes of 2021, The Energy and Petroleum Regulatory Authority (EPRA) announced new fuel prices for the next 30 days. Pump prices have now hit a historic high!
details of the increase
Super petrol rises by Ksh.7.58 per litre (now at ksh 134.72 per litre)
Diesel shoots by Ksh.7.94 per litre (now at Ksh 115.60 per litre)
Kerosene rises by Ksh.12.97 per litre (now at Ksh.110.82 per litre).
effects of the rise in fuel price
The ripple effect of this is that the cost of goods, transport and electricity will subsequently rise and the operational costs passed on to you, the consumer.
Unfortunately, Fuel prices are expected to increase yet again on 1st October this year. This is because KRA (Kenya Revenue Authority) had announced plans to increase the excise duty rate for fuel as from next month.
INSURANCE
CIC insurance introduces health cover for the elderly
The lack of health insurance for most elderly persons (above 60 years) in Kenya means that most of them rely on their retirement savings/ social networks to cater for hospital bills.
Recognising this, CIC insurance has launched a cover for the elderly.
Details of the cover
The product targets members aged between 60 and 80 years.
The product will include inpatient and outpatient covers, dental, optical and ambulance and air evacuation services within East Africa.
The insurance will cover only one legal spouse of the insured.
MONEY LAUNDERING
Insights into the proposed amendments to the Proceeds of Crime and Anti-Money Laundering Act
The Proceeds of Crime and Anti-Money Laundering (Amendment) Bill, 2021 has been tabled in parliament and there are 2 noteworthy provisions in the bill:
State agencies will have the power to freeze suspicious transactions without obtaining a court order
- The Financial Reporting Centre (FRC) and other security agencies will have the power to stop suspicious transactions for not more than five working days and allow other State agencies to investigate the transactions.
- The exercise of this power will be independent of a court order.
The state agencies to investigate such transactions include the Kenya Revenue Authority (KRA), the Ethics and Anti-Corruption Commission (EACC), and the Assets Recovery Agency (ARA).
Advocates, notaries and independent legal professionals to be included among persons who have a reporting obligation in cases of Money laundering.
- This means that the above persons will have Anti-money laundering reporting obligations. These obligations will apply in cases of transactions in real estate, management of bank accounts and management of client’s money.
- Click here for a detailed review of the 2nd provision (By Andersen Kenya).
TOURISM
Mahali Mzuri Hotel in Maasai Mara ranked as the number one hotel in the world
Interesting fact : the Hotel’s website states that ‘Mahali Mzuri’ is Swahili for “a beautiful place”
Mahali Mzuri was ranked the number 1 hotel by The Travel & Leisure World’s Best Awards which took place last week.
Details about Mahali Mzuri
It is owned by British tycoon Sir Richard Branson (explains the accuracy of the translation).
It is a 12-tented luxury safari camp and is among the five hotels located in Olare Motorogi Conservancy, a 33,000-acre private conservancy, teeming with wild animals.
It is Ksh 104,000 per person, per night for guests visiting during low tourism seasons.
TRADE
AFRICAN CONTINENTAL FREE TRADE AGREEMENT
Tanzania has ratified the African Continental Free Trade Area agreement
Details about the African Continental Free Trade Area agreement (AFCFTA)
The AfCFTA is the World largest free trade area since the formation of the World Trade Organization.
It drastically relaxes the rules of origin and non-tarriff barriers. This means that traders in member countries (despite their size) can freely explore the 1.3 billion market across Africa.
The agreement will cut Africa’s overreliance on Global trade supply chains.
The deal commits member countries to 90% tariff cuts within a five-year period.
38 out of the 54 countries that signed the AFCFTA have ratified it (Kenya has ratified the agreement)
Other ConversationStarters
Matatus to pay higher parking fees in CBD as from 25th September - From 25th September, 14 seater matatus will pay a monthly fee of Ksh.5000 and Ksh.3650 as parking charges covering the 6th - 24th day of the month & the 25th - 5th day of the next month respectively.
The parking charges have increased because Matatus are now allowed to carry passengers at full capacity.
United Arab Emirates announce a green visa - The UAE announced a new green visa allowing foreigners to work there without sponsorship from employers. Holders of this visa can sponsor their parents and children. The visa targets highly skilled individuals, investors, businesspeople, students and postgraduates.
A petition challenging the Competency Based Curriculum (CBC) has been filed. - The cries of many parents who have raised concerns over the new Competency based curriculum appear to have been heard.
A petition filed by Havi and company advocates challenges the setting up of the curriculum and claims that the Ministry of Education contravened the Basic Educations act and The Constitution of Kenya in setting up the new curriculum.
United States admit to killing civilians in Afghan drone strike - The US military admitted that a drone strike it launched in Afghanistan on 29th August killed 10 civilians, including up to seven children,
The drone strike targeted Zemari Ahmadi, who was an engineer for aid group Nutrition and Education International, and who was carrying large water jugs that were mistaken for explosives.
Own an electric vehicle ? - ChargeNet Kenya is installing Electric Vehicle (EV) charging stations in Nairobi. Currently, the ones set up are at : a) ABC place in Westlands, b) Hass Energy station in Kasarani and c) Be Energy’s Ngong Racecourse station.
The company expects to have 10 charging stations by the end of October.
PODCAST OF THE WEEK
PODCAST - Njeritalks (legal podcast)
- It is hosted by Njeri Wagacha a partner at Kieti Advocates LLP, a firm based in Nairobi,Kenya
- The latest episode features George Owuor, Director of Policy, Sub-Saharan Africa, Mastercard.
- Njeri and George Owuor first talk about their journey through law school and life after law school. They then delve into the main discussion which is on public policy (social media regulation, cybersecurity and trade) in Africa.