Good morning,
Yesterday’s Covid-19 response update by the Ministry of Health stated that as from 21 December 2021,
Every person seeking in person government services must be fully vaccinated and show proof of vaccination.
All motorable operators (drivers, conductors) must be fully vaccinated and carry proof of vaccination at all times.
All businesses serving more than 50 customers a day should put a signage requiring proof of vaccination before entry into the business premises and their patrons should be fully vaccinated.
The vaccination of the young population (above 15 years) with Pfizer will be opened on 23rd November 2021.
- There will be a 10 day vaccination drive as from 26 November -
Shilling falls to a record low of 112.03 units against the dollar
Sadly, the Kenya shilling has been steadily depreciating against the dollar for several months now. As of Friday last week, the Kenya Shilling was exchanging at a Mean Rate of 112.07.
30 June 2021, 1 USD = 107.95 KES
31 July 2021, 1 USD = 108.60 KES
31 August 2021, 1 USD = 109.81 KES
30 September 2021, 1 USD = 110.46 KES
31 October 2021, 1 USD = 111.29 KES
The weakening of the shilling means that the cost of imported goods: cars, electronics & petroleum products will rise and the costs passed onto consumers.
However, exporters of tea and coffee will benefit from a weaker shilling because it makes their products competitive in International markets and they earn more when they exchange the payouts at banks or Forex bureaus. (This is because they are paid in dollars and Euros)
CAPITAL MARKETS
1. Shares buy back price capped at 10% above weighted value
The Capital Markets Authority, through the Guidelines on Buybacks for Listed Companies, has capped the price of shares listed firms propose to buy back from the market at 10% above the weighted value for the month preceding the resolution.
This article gives a comprehensive overview of the law governing Share buybacks in Kenya.
2. Kenya to issue a Kshs 105.6 Billion green Eurobond
Kenya is set to issue a 105.6 billion green Euro bond in 2022. This will be Kenya’s 5th Eurobond issue in the last 7 years.
Kenya’s Sovereign green bond framework states that the proceeds of the bond are to finance only green assets & projects. None of the funds are to be put into recurrent expenditure.
Click to read a short second-party opinion on Kenyan’s Sovereign green bond.
SECURITY
Tighter checks at Airport terminals and SGR (Standard Gauge Railway) stations
The Interior Cabinet Secretary announced that additional security measures have been put in place at airport terminals and railway stations to avert any possible terror attacks. This announcement follows the 2 events that happened last week.
What happened last week ?
On Monday, three terror convicts escaped from Kamiti Maximum prison. One of the escapees was involved in the 2015 Garissa University attack that killed nearly 150 people.
Fortunately, all three were arrested 3 days later in Kitui . The escape led to the sacking of Wycliffe Ogallo, the Kenya Prisons Commissioner-General, who was arrested together with two top officers in charge of Kamiti Maximum Security Prison.
On Tuesday, two explosions rocked Kampala (Uganda’s Capital), killing at least four people and injuring many more. The police described the incident as a coordinated attack by extremists who blew themselves up while on motorbikes.
EDUCATION
Loss making Public Universities to face closure or mergers
A key provision of the lending terms by the World Bank is that the Government should close or merge Public Universities that have made losses for three consecutive years.
Merging of universities would mean a review of academic courses and this translates to the possible retrenchment of several university staff and lecturers.
‘The mergers will improve the efficiency of public spending and reduce spending pressure.’ - World Bank
- Government corporations operating at losses will also are undergo restructuring:
The Treasury is already at advanced stages to merge the Industrial and Commercial Development Corporation(ICDC), Industrial Development Bank(IDB) and Tourism Finance Corporation to Kenya Development Corporation in order to meet the financing requirements.
Similar Reforms targeting Kenya Post Office Savings Bank and the Postal Corporation of Kenya are underway.
COMMODITIES
Flower farmers suffer from freight war between Kenya and Ethiopia
As a result of a freight war between Kenya and Ethiopia, Kenyan flower farmers are throwing away a quarter of their produce due to less freight capacity.
(only 3500 tonnes is avaliable against 5000 tonnes that is needed)
details of the freight war
Kenya is against Ethiopian airlines increasing the freight capacity from Jomo Kenyatta International Airport because Ethiopia did not grant Kenya Airways access to fly cargo directly from Bole International airport.
Kenya Airways also successfully lobbied the government to resist a plan to increase the frequency of other airlines on the Nairobi route.
Looking forward: The Transport Cabinet Secretary announced that Kenya Airways has agreed to increase its freight capacity and that other carriers apart from Ethiopian airlines would be approved for the export of flowers.
LAW OF SUCCESSION
President assents to the Succession amendment bill 2019
What changes does the amendment bill introduce?
The bill amends the definition of a “dependant” in section 29(a) of the act to “the spouse and children of the deceased, whether or not maintained by the deceased prior to death.”
The repealed section of the act defined dependant as “wife or wives or former wife or wives and children of deceased whether or not maintained by the deceased prior to death.”
The bill also repeals and replaces section 29 (c) to state that a person not qualifying as a dependant according to the act will have to Prove that he/she was maintained by the deceased for a period of 2 years prior to the deceased death in order to qualify as a dependant.
reasons for the amendment
According to the memorandum of objects and reasons, the objective of the amendment was to “lock out opportunistic schemers (whatever this means) from successfully claiming a stake in the deceased property and disenfranchising the legitimate heirs”
bigger picture: The amendment locks out claims by persons who are not legally recognised as wives/ husbands of the deceased. This is because the term spouse as per the marriage act means “ Husband or wife or wives”
Must Know ConversationStarters
Kenya Revenue Authority (KRA) blacklists 20 clearing and forwarding agents - Kenya Revenue Authority (KRA) has flagged the operations of 20 clearing and forwarding agents based at the Port of Mombasa because of ‘non-compliance issues’.
The clearing and forwarding agents are: Regal Freighters, Delta Express, Subukia Holdings, Greentop Logistics, Zanaa Freights, Riam Logistics and Utmost Freight Matters Limited.
The Nairobi Governor is sworn in - On Tuesday, Nairobi deputy Governor Anne Kananu was sworn in as the new Governor. She has been the acting governor since December 2020 after the impeachment of Governor Mike Sonko.
Kenya Airways increases weekly scheduled flights to Ethiopia - Kenya Airways has increased weekly flights to Ethiopia from 3 to 7 due to the high demand for passengers seeking air travel in the wake of political upheaval in Ethiopia.
Moreover, multiple countries are repatriating their citizens from Addis Ababa.
Jambojet halts plans to restart direct flights to Entebbe, Uganda - This is because of the strict COVID-19 containment measures in the country.
—> Passengers arriving in Entebbe must take a second PCR test upon arrival, regardless of vaccination status except children under six years and the airline crew. The test costs $30 and is conducted at the airport.
—> Passengers will be allowed to continue to their home/hotel and wait for their test results there. Arriving tourists who test positive, but are asymptomatic or with mild symptoms, will be permitted to isolate in their hotel.
How many Kenyans have health insurance? - Health data shows that NHIF covers only 16% of Kenyans, whereas the 32 private health insurers collectively cover a mere 1% of the Kenyan population - TheStarKenya
Land Prices in Kenya - A Land index conducted by Hass Consult for the third quarter of 2021 revealed that Land in the outskirts of Nairobi town increased in value.
Q3 2021 Land prices (in acres) :
Kiserian :⬆️5.3% to Ksh 8.7M
Kiambu:⬆️ 4.8% to Ksh 39.7M
Ruiru:⬆️ 3.9% to Ksh 25.9M
Athi River:⬆️3.8% to Ksh 15.4M
Juja:⬆️ 3.2% to Ksh 15.8M
Kitengela:⬆️ 3.6% to Ksh 13M
Ngong Town: 🔻 0.1% to Ksh 25.3M
Enjoyed this week’s ConversationStarter ?