US Embassy suspends visa interviews until 2024
1 August
Good Morning.
Just two weeks ago, the government subsidized the price of maize flour by Ksh 100 for a two-kilogram packet so as to cushion Kenyans against the high cost of living.
Unfortunately, the subsidized Unga is now unavailable in shops across Kenya although the government has denied this unavailability.
US Embassy suspends visa interviews until 2024
The US Embassy in Nairobi has suspended appointments for visa interviews until June 2024 owing to high demand and backlogs.
Why the Backlog?
The embassy stated that non-immigrant visa interviews at the Nairobi office ceased for over a year due to Covid-19 safety measures.
“As we work through the backlog of applications and address the high demand for services, we recognize that some applicants may face extended visa interview wait times. This is a global problem that US embassies are diligently striving to address,” - the US embassy.
Expedited Appointments
Despite the announcement,
The embassy committed to expediting appointments for emergencies such as the death of an immediate family member and people traveling for urgent medical care.
Students whose programs start in less than 30 days and are likely to lose their scholarships will also be given priority.
BANKING
1. CBK ordered banks to close Flutterwave and Chipper Cash accounts
The Central Bank of Kenya (CBK) directed banks and microfinance institutions to stop dealing with payments technology firms Flutterwave and Chipper Cash.
In a letter to chief executives, the regulator directed banks to end links with the two companies which could mean closing all accounts and freezing the cash held.
This happened days after the CBK Governor told journalists at the Monetary Policy Committee (MPC) meeting that the two firms are not licensed to provide remittance and payment services in the country.
"It has come to the attention of the Central Bank of Kenya (CBK) that Flutterwave Payments Technology Ltd and Chipper Technologies Ltd have been engaging in the money remittance business without licensing and authorization by CBK," - CBK Governor
Facts to note
Earlier this month, Kenya’s Asset Recovery Agency (ARA) accused Flutterwave of money laundering and fraud. Subsequently, the high court froze $52.5 million in 62 bank accounts belonging to the company.
The ARA also accused Flutterwave of operating in the country without authorization from the CBK.
2. CBK blocks interest-free Faraja ( the Lipa Na M-Pesa loan)
The Central Bank of Kenya (CBK) blocked the launch of a Safaricom-backed zero-interest credit service for the purchase of goods.
The Central Bank of Kenya ordered Safaricom to stop its release, just hours before the planned unveiling.
The Faraja product is owned by EDOMx Ltd, a Kenya-based financial technology firm, with Safaricom and Equity Bank listed as its partners.
How is this different from the Fuliza service?
Unlike overdraft service Fuliza, subscribers of Faraja cannot send money to other users because transfers from the Faraja account can only be used for goods payments through Lipa na M-Pesa.
HOUSING
House prices rise at a fast rate
Data by realtor HassConsult shows that the price of an average house within the city rose 10.5% in the year to June compared to a drop of 1.7% in the same period a year earlier.
“This is the fastest increase since 2011 when the growth stood at 15.7%. This reflects property market recovery from the effects of the Covid-19 pandemic.” - Hass Consult.
The increase in the cost of building materials, including steel, paint, and cement contributed to the increase in home prices.
More Data on this
Standalone homes in Langata, Spring Valley, and Westlands recorded the sharpest price gains in the period.
Ngong and Ongata Rongai have the biggest rise among satellite towns outside the capital.
The average house price rose 12.5% to Ksh35 million in Langata, 9.7% in Spring Valley to Ksh72.3 million, and 7.9% to Sh59.2 million in Westlands.
ELECTIONS
President Kenyatta’s retirement package
It’s now less than nine days to the general election and President Uhuru Kenyatta is headed for retirement. Below is a breakdown of The president’s retirement package.
Retirement package
A Ksh 32 million one-off payment
Sh1.2 million monthly pension
Sh200,000 monthly entertainment allowance
Sh300,000 monthly house allowance
Sh300,000 monthly for electricity & water bills
Sh261,000 fuel allowance
Medical Insurance for local and overseas treatment
Personnel and facilities
Two cooks
Four housekeepers
Four gardeners
Two laundry persons
Four armed guards at urban and Rural homes
( My dream job is now to be Kenya’s former president )
EAST AFRICA
States Differ over who should host the East African Monetary Institute
Members of the East African Community have failed to agree on which country should host the East African Monetary Institute (EAMI). Kenya and Uganda rejected the verdict of the verification exercise which determined that the country best suited to host the institution is Tanzania.
The verification, carried out in March this year, ranked Tanzania as most suitable.
Tanzania had a score of 86.3 %, followed by Uganda (82.42%) and Burundi (78.1%). Kenya was the least qualified with 77.35% .
The other partners did not express interest.
Background to the EAMI
The Protocol for the establishment of the East African Monetary Union (EAMU) was signed by the heads of state in Kampala on November 30, 2013. The goal of the protocol was to set up a 10-year roadmap for attaining an East African currency in 2024.
WHAT YOU MUST HAVE MISSED
Kenya received Ksh 30 billion from USAid to fight drought and boost food security
The financial aid to Kenya was announced on Friday by the head of USAid Samantha Power who is in the country for an official visit. Ms. Power said that she would visit famine-stricken northern Kenya to assess the effects of the drought.
Public Service Cabinet Secretary Margaret Kobia said the funds, which are part of a $1.2 billion aid package from Washington to the Horn of Africa region, would assist the ongoing government interventions.
Inflation in Kenya hits 8.3%
Data from the Kenya National Bureau of Statistics revealed that Inflation climbed to 8.3% in July, up from 7.9% in June.
The Kenya National Bureau of Statistics stated that inflation was largely driven by the average cost of food and non-alcoholic drinks which climbed 15.3% and commodities under furnishings, household equipment, and routine household maintenance which recorded a 9.8% increase.
The inflation rate in July is the highest since June 2017 where it hit 9.21%.
Capital Markets Authority blocked CVC Capital Partners from buying a minority stake in Limuru Tea company.
The Capital Markets Authority (CMA) froze the transfer of Unilever’s majority stake in Limuru Tea and blocked a US-based private equity firm from buying minority investors in the listed company.
Why CMA blocked the transaction: The CMA stated that it would be premature for the Private Equity firm (CVC Capital Partners) to buy the remaining 48% stake in Limuru Tea when the High Court had stopped the transfer of Unilever’s 52% stake in Limuru Tea to the Private Equity firm.
Proposed split of Kenya Power and Lighting Company (KPLC)
A White Paper published by the Ministry of Energy revealed a proposal to split Kenya Power Lighting Company. The split in its business will have KPLC only distribute electricity to large commercial and industrial consumers
A new entity, the Rural Electrification and Renewable Energy Corporation (Rerec) will take over the role of distributing electricity to household consumers.
The paper recommends the secondment of KPLC staff to Rerec to help with the transition and an audit of KPLC distribution assets to smoothen the changeover.
I also want to be the president of Kenya, if that’s the Retirement package I’ll be getting.