Business Archives - Page 3 of 5

Nairobi gets Ksh 43 Billion for the Development of BRT Project

Nairobi County Governor Johnson Sakaja has gained Ksh.43 billion funding from foreign partners to resurrect the Bus Rapid Transit (BRT) project that has stagnated. After completion of consultations with the European Investment Bank, the European Union, and Avec the French Development Agency this funding is going to further the constructions from Dandora to CBD and Ngong.

Solving Japan’s Demographic Disaster

Tokyo to offer Free Daycare as the Government Strives to Promote Birth Rates

Tokyo’s Government says it will offer free early-years childcare from September for all preschool children. This historic project spearhead by the Governor Yuriko Koike, seeks to reduce Japan’s low fertility rate through the reduction in the family’s economic burden.

Even free daycare available before was only available for the 2nd born and other subsequent children, while free daycare for first born children under this new policy will support all families adequately.

Solving Japan’s Demographic Disaster

The population density of Japan has has been on a decline for many years and when compared to many developing countries has one of the lowest birth rates. In her speech, Governor Koike was stressing on the severity of the problem referring to it as a crisis and urging people to act immediately.

Japan has an increasingly aging population ranked second oldest in the world, and limited immigration is a push factor to labor and other economic concerns. Policy makers have however increased efforts to reverse this trend with Tokyo leading by examples such as free daycare.

Broader Policy Shifts

Work-Life Balance

Koike has suggested the transition to the 4-days-a-week work for the officials with government agencies as a part of the national initiatives that would promote parenting by providing better working conditions.

Expanded Access to Daycare

There is already considerable public daycare for working parents but planning is under way to extend to access to all families in the supported society for the Japanese government.

Social Welfare Enhancements

As for the rest of Koike’s social-democrat driven agenda, she has focused on such aspects as social welfare benefits due to high inflation and financial problem of families.

A Regional First

This policy can be regarded as the first in terms of regional policies of its type in Japan, which proves that Tokyo is ready to take the leadership in addressing the demographic problems of the country. The capital has 14 million people, and its measures could become a reference for other areas of the country.

Outlook

Koike’s move is a sign of a new realization that sharp-edged, family-oriented policies are needed to address the impending demographical challenge. If successful, it is conceivable that Tokyo’s measures may give direction on how to control similar problems in the remaining sections of Japan or other countries.

DP Kindiki Outlines Complex Government Jobs Creation Plan

Kenyan Deputy President Prof Kithure Kindiki has outlined a government elaborate plan to address unemployment and increase household income. The areas to focus on are International Labour Mobility, Digital Jobs, Local labour market Employment & Climate works programme.

The Deputy President disclosed these initiatives during a briefing at his residence in Karen through communication with the leadership of the government that includes the Cabinet Secretaries, Principal Secretaries, and agency heads.

Key Interventions

Labour Cross-Border Mobility and Bilateral Treaties

Through bilateral labor relations, the government is working hard to secure proper jobs abroad to qualified Kenyans. It is also creating the national skills database for the purpose of integration of the workforce with the international labour market requirements and enhancing the private employment agencies standards.

Digital Jobs and ICT Hubs

To spur on the Kenyan Digital economy, the government intends to set up 1,450 ICT facilities one for each ward.

Progress: There are already 272 ICT hubs running in the country.

Focus Areas: Writing, transcription services, telecommuting, freelancing.

Kindiki also said that the program was crucial in achieving the delivers set in the administration’s docket before 2027.

Public Sector Placements

In the last two years, the government has hired:

72,000 teachers.

3,300 TVET instructors.

Employees using the blue economy products and services like the seafarers.

Portfolio Assessment Based on Prior Learning (PAPL)

In order to provide a formal qualification that the learner has gathered most of her knowledge from workplace experiences, the government has developed a programme known as the Recognition of Prior Learning (RPL) certification.

2,900 people qualified through RPL.

Additionally 4,000 certifications have been issued through the National Industrial Training Authority (NITA).

Commitment to Job Creation

Even as DP Kindiki noted a number of achievements, he also observed that much more needs to be done and that progress needs to be stepped up. This brings out the aspect of review where progress will always be checked in order to keep on/in track.

“On job creation the government is keen and it is taking the issue as being solved through a holistically approach,” Kindiki said, calling on Kenyans to support these efforts.

Such a strategy mirrors the administration’s vision to steer Kenya to the path of economic revolution in terms of domestic and export markets as well as digitization of innovation and public sector projects.

President Ruto And Former President Kenyatta Holds Gatundu Meeting To discuss National and Regional Issues

Going a long way in the direction of building bridges, William Ruto made a trip to the home of former head of state Uhuru Kenyatta. It covered core national and regional concerns, which was their first confrontation since the pre-2022 General Election controversy.

Key Highlights of the Meeting

National Unity and Economic Dilemma
They debated about the national question and current problems of the Kenyan economy. They acknowledged the global economic disruptions caused by:
COVID-19 which greatly impacted the health systems and the economies.
The conflict in Ukraine that stopped supply chains and raised the cost of commodities.
High currency risks and a generally unfavourable macroeconomic environment.

They welcomed the achievement made in stabilizing food prices, bringing down the inflation rate, and shilling while at the same time call for fast tracking of economic activities under the Bottom-Up Economic Transformation Agenda.

The agenda of the meeting included

Food security programs.

Insurance where the coverage is for everyone in particular region or country.

Constitution of IEBC Panel

At home they agreed that it was time to address the legal issues concerning the IEBC selection panel to usher in new commissioners to enhance public credible electoral practices.

Low cost houses.

Support to micro, small and medium enterprises (MSMEs) promotion.

Progress in infrastructure and Education, changes.

Collaboration and Patriotism

Hear both leaders called for love for the country and unity of effort involving government, civil society and religion for stability for the purpose of development.

Endorsements for Raila Odinga’s Bid to Chair AUC

The leaders canvassed for support for former Prime Minister Raila Odinga in his bid for the AU Commission Chairmanship saying that it was an opportunity for Kenya to lift its status in the continent.

Old Regional Approaches to Peace-building

It may be noted that the leaders appreciated Kenya especially for its contribution in peace making in the East African region. Speaking to the press after the wedding ceremony, President Ruto praised former President Kenyatta for continuing to support facets of peace-making initiatives that have been helpful in the settlement of conflicts within the region.

The Rise Through Partnership and Teamwork

President Ruto thanked his predecessor for the steady foundation which he has put in place hence leading to support of key government working plans.

It is a rare and very meaningful step towards reconciliation in which both leaders agree on development objectives as well as asserting the stability of the region, which will write a new page in political relations between Kenya.

CBK Cuts Interest Rate on Loans to 11.25 percent

The Monetary Policy Committee of the Central Bank of Kenya (CBK) has lowered the benchmark lending rate by 75 basis points to a record-low of 11.25% to sweat the third time in the 2024 financial year. The announcement was made at the last MPC meeting for the year led by CBK governor Dr. Kamau Thugge.

Reasons for the Rate Cut

The CBK cited the following factors influencing the decision:

Lowering inflation to demask a deceleration of prices within an economy or relieve cost burden.
External factors: moderate volatility of the domestic currency, the Kenyan shilling in particular, and respective risks’ containment.
Fiscal performance which factors a slower economic growth rate in the first half of the year and the need for monetary boost.

Call to Action for Banks

Commercial banks have also remained quiet, from the multiple rate cuts and have failed to reflect the same on the borrowers according to Dr. Thugge.

“Of course, the banks have been slow to cut their interest rates… I think they know that they have to begin taking bold measures to reduce interest rates to consumers now”, he said.

As reported recently, CBK has been holding meetings with banking CEOs discussing the problem of a weak transmission of monetary policy.

Enhanced Circumstances for Rate Revisions

The CBK emphasized a reversal in conditions that previously constrained banks from lowering rates:

The yield of 91-day Treasury bill decreased from 16 % to 10.45 % a move that has effectively decrease the cost of funds to banks.

More attractive deposit rate means that the banks ape to reduce their lending rate without reducing their margins.

The regulator called on banks to lower credit to government by extending credit to the private business more and more. Dr. According to Thugge, this shift is important in order to spur growth in economy and create job opportunities.

Economic Outlook

The CBK expects that reduced lending rates will:

Reduce interest cost in business and personal borrowing.
Promote credit expansion on private sector line, a vice that was stagnated.
Promote employment generation by kick starting the stagnant or declining economy.

The Monetary Policy Committee will meet again in February 2025 to review the economic conditions to see next course of action.

President Ruto Resuscitates SGR, Vows to Extend it to Uganda, Rwanda, and DRC

The president of Kenya, William Ruto, has stated his government is plotting to expand the SGR from Naivasha to Uganda, Rwanda and the Democratic Republic of Congo as part of a strategy to deepen integration of the East African region.

When opening the 14th East African Community Inter-Parliamentary Games in Mombasa, Ruto urged that the cross border tourism infrastructure project of the-needed enhancement to regional trade and relations. He lauded the development pointing out that the agreement has been made with other countries within the East Africa region to ensure infrastructure from Mombasa to the DRC was continuous adding that the project is more of regional integration.

Cost Efficiency and Progress

At the same occasion, Ruto encouraged Kenyan MPs to embrace use of SGR while on official duties to Mombasa as it costs about Ksh.6.5 million less than flying. He used this to showcase the effectiveness of the railway transport by being cheap as well.

“I have some better things to tell you more today. Our neighbours Uganda, Rwanda and DRC have agreed with us that the SGR will be extended…So in the next few years they also can use the SGR when they want to come to Mombasa,” Ruto said.

Effectiveness of eliminating subsidy on regional trade and tourism

The SGR extension is expected to unlock significant economic opportunities for the East African region by:

Trade liberalization is the creation of new trading links specifically for the transport of goods and services.

Providing a means of easy access to tourist attractions that used to be a challenge to access.

Shortening of delivery time for the goods as illustrated by Uganda’s vision to shorten delivery time between Kampala and Mombasa from the current 14 days down to 24 hours.

Schedule of Projects and Executions

Currently, Uganda is preparing the groundwork for its segment of the railway as construction of the Malaba to Kampala leg starts in January next year. The 272 km line should last a 48 month construction period.

It is also preparing to commence construction of the Naivasha-Malaba stretch in order to ensure the timelines are well coordinated between the 2 nations. President Yoweri Museveni of Uganda emphasized the collaborative efforts, stating:

”The two countries have agreed on the time table of the projects in order to progress on the transport of trains from Kampala to Mombasa.”

It is expected that this project will revolutionize Eastern African economic structure by creating trade incentives, decreasing the costs of doing business, and foster regional integration amongst the East African community member countries.

Equity CEO Dr. James Mwangi Voted to the World Bank Jobs Advisory Committee

Dr James Mwangi, Group Managing Director and CEO Equity Group Holdings has been named on the World Bank Group’s High-Level Advisory Council on Jobs. The council was launched formally in 2024 World Bank Group IMF Annual Meeting and is responsible for responding to global job creation deficit with special focus on youth and women employment in the developing world.

Expressing his gratitude, Dr. Mwangi said:

It has been a privilege to be invited to sit on the World Bank Global Jobs Council in a bid to help create employment for the youths of Africa. Young people are the future and agents of change for sustainable development for the continent.”

He brought awareness about this role and its correlation with Equity’s Africa Recovery and Resilience Plan through which the company seeks to generate 50 million jobs across Africa within 2030. Dr. Mwangi intends to use this program with recommendations on the same from the council to have the best results.

Roles and Purpose of a Council

The council is co-chaired by Singapore President Tharman Shanmugaratnam and former Chilean President Michelle Bachelet. The program is meant to respond to the escalating levels of unemployment in the Global South as the region is expected to welcome 1.2 billion working-age population by 2030. In this regard, using winning strategies that are easily expandable, the council aims at facing poverty and unemployment issues as well.

The World’s Resources to Enhance Our Region

Dr Mwangi is among newly elected 14 leaders on the council who shall bring their experience in policy making for changes in employment spheres globally. In their invitation, the council’s leadership emphasized the importance of his contributions:

“We would be immensely grateful to receive your insights and experience coming right from the Council membership.”

Dr Mwagi’s involvement further confirms that Africans able to capitalize on demographic dividend and Equities groups believe in empowering youths for sustainable development throughout Africa.

Spotify Wrapped 2024: Bien dominates Kenyan artists streams

Spotify Wrapped 2024 has placed Bien Aime-Baraza, the former lead singer of the band Sauti Solo as the most streamed artist in Kenya, thus a revolution in Kenyan music. Bien’s rise dislodged the year’s previous wunderkinds, the rap trio Wakadinali who now occupy second place with Sauti Sol in third place.

Bien’s Dominance

Bien is still enjoying his solo life performance as he has positioned himself to have four among the most streamed Kenyan songs. In lifestyle and Inauma, he was at his best and shows he’s a man for all seasons. They also received popularity in his features such as Extra Pressure with Bensoul.

Top Streamed Kenyan Tracks

Lil Maina, sosatheprodigyy, – NAKAM SAI

Bien – Lifestyle

Bensoul/Bien – Extra Pressure

From The Hood Music – Anguka Nayo

Bien – Inauma

Bien – Ma Cherie

YBW Smith – Lele

Dyana Cods – Set It

Matata – Oversized T-shirt

Fancy Fingers Featuring Kudade – Kudade (Fancy Fingers Refix)

Global Music Scene

Globally, Taylor Swift remained on top of list of the most streamed artists, while the second most streamed artist is The Weeknd followed by Bad Bunny.

Podcasts and Kenyan Content

Some of the most listened to shows included The 97s Podcast for Kenya, So This Is Love and The Mkurugenzi Podcast. Internationally and finally, The Diary of a CEO by Steven Bartlett was notable as well.

Kenyan Genres Shine Globally

There has been an increase in the release of Kenyan music, and Spotify Wrapped 2024 was such a great reminder. Afro Beat, Gengetone, and Afro Pop festivals made it to the charts.

Bien’s triumph is not only a feather in his cap but also a sign of change that Kenya’s music industry experiences in retaining its influence in attracting the audience locally, and internationally.

Nairobi county has not recorded any development spending as it struggles to clear outstanding bills.

A report from the CoB disclosed embarrassing trends of financial practices within Kenyan counties as it was established that Nairobi County made no provision to spend on development in the first quarter of the financial year ending October. This puts it in the basket of ten counties, such as Kajiado, Baringo, Lamu, and the rest that did not allocate for development projects during the period.

On this note, we examined the Development Expenditure of the selected countries with a view to identifying contrasts.

While Nairobi County made no improvement in development expenditure, other counties showed good investment on development. Narok led by Governor Patrick Ole Ntutu accounted for Ksh.477 million, Kirinyaga governor Anne Waiguru Ksh.378 million and Busia Paul Otuoma Ksh.328 million. These allocations reveal inequality with regard to the priority that different counties accord to governance.

The Burden of Pending Bills

Prevailing unpaid invoices rates stand at Ksh.121 billion while Nairobi County has the highest figure in the country. Other counties also feel the bite of huge debts, with Garissa leading at Ksh.6 billion, Kiambu at Ksh.5.9 billion and Turkana at Ksh.4.8 billion. The Senate has said that before governors pay for other expenses, they should meet all their bills that are in the pipeline.

Call for Accountability

The CoB’s report has also revealed that most county governments require increased supervision and timely fashioning of sound financial management practices. Given that development expenditure is paramount to enhancing infrastructural and service delivery, lack of investment by counties poses a big slope towards stagnation of growth and loss of public confidence.

Governor Johnson Sakaja and other leaders on the receiving end are between the devil and the deep end on how to tackle monumental inefficiencies and guarantee that public resources deliver value to their people.

Tanzania’s Amsons Group buys Bamburi Cement in a $538 million cross-border deal

Tanzania’s Amsons Group has successfully completed the acquisition of the Kenyan Bamburi Cement, a main player of the East African cement market, after the withdraw of its rival Savannah Clinker company from the bidding process.

A Strategic Move for Amsons

The $1bn-plus worldwide family business, Amsons Group Limited, signed the contract through its Kenya-based subsidiary, Amsons Industries Kenya Limited. The group had proposed Ksh.23.9 billion in July to fully manage Bamburi Cement through buying 100% of the firm, largely owned by Holcim, based in Switzerland with 58.6% stake.

This has now been approved by the Kenyan Mining Ministry and the COMESA Competition Commission which makes the deal authentic.

‘This milestone proves the solidity and reliability of our proposition,’ stated the Amsons CEO Edha Nahdi in a statement, who added that the company is focused on bringing value for shareholders of Bamburi Cement.

Bamburi Cement: A Coveted Asset

Founded in the early seventies, Bamburi Cement Company is a stock quoted company that has been at the forefront of construction industry in Kenya. Its sale to Amsons complements Holcim’s global divestment plan and concentrates on fast-growing economies especially in North America. The approval of this deal comes days after Holcim said it planned to sell its 84% stake in its Nigerian subsidiary Lafarge Africa for $1bn.

List of Articles: Savannah Clinker’s Sudden Exit

Initially, Kenya based firm Savannah Clinker, owned by Benson Ndeta, had offered higher bid of Ksh. 25.4 billion for Bamburi. Savannah deposited Ksh. 5 billion and also proposed to give Ksh. 1.8 billion as further incentive for shareholders.

Nevertheless, Ndeta’s implication in a Ksh. 700 million fraud alleged deal made things worse. The businessman was also captured by the police and charged with conspiracy and forgery but he was not guilty to any of the charges. Although he was discharged unconditionally on a High Court order, the issue cast aspersions over the credibility of Savannah’s bid.

Implications for the Industry

The investment by Amsons Group is a unique cross-border investment in Kenya, which demonstrates confidence in the country’s industrialization process despite the current wavering economic performance.

For Bamburi Cement this may mean a new era of growth under its new owners Amsons which has a large conglomerate in Tanzania in manufacturing, petroleum and logistics.

With the opportunities of entering the new market segments, exiting the business-related challenges, as well as expanding a successful into East Africa and consolidating its position there, Amsons is expected to close the deal by December 5.