Kenya Archives

Main Outcomes of President Ruto’s Statements

Nairobi-Nakuru-Eldoret dual carriageway construction

Timeline: Construction works on the planned dual carriageway to start in the year 2025.

HF Group has successfully raised KSh 6.4 Billion in its just concluded over-subscribed rights issue

Important Stakes about the Rights Issue

Oversubscription:

The Rights Issue was subscribed 138.32 times and thus investor response remained quite positive.

The offer which was at KSh 4.00 per share enabled the shareholders to acquire additional two shares for every share they held.

Funds Raised:

As many as 1.59 billion shares were applied for, which at their average offer price of KSh 4.02 generated a gross amount of KSh 6.38 billion, thereby raising more than the targeted KSh 4.6 billion.

The high demand was absorbed through green shoe up to 30% or 384.614 million shares.

Fund Allocation:

The remaining 85% of the funds will go to business growth investment, where improvement of products and customers’ base will be prioritised.

15% shall be spent on technology and digitisation as this will cause the firm to optimise on its operations and enhance its service delivery to the consumers.

Leadership Comments

Robert Kibaara, CEO, HF Group

They thanked shareholders for their overwhelming support they received.

Highlighted the importance of the capital raised in fueling HF Group’s next growth phase:

“And with that the company is set up nicely on a trajectory to power its next wave of business development.”

Olive Mugenda, Chairperson, HF Group.

Noted the confidence demonstrated by shareholders, including key stakeholders such as Britam and NSSF:

“This is a big boost to our company’s investment้เกิด by our shareholders. We have now lay down the foundation for growth and we are now eager to start unlocking shareholder value in the short run.”

Strategic Impact

Regulatory Compliance:

The capital injection thus prepares HF Group for future compliance with other regulations such as the 500 billion basic capital level of banks by 2028.

Growth Prospects

Increased resource leverage will help HF Group to improve its market positions, introduce new financial products, and enhance its activities.

Enhanced Shareholder Value

It is in this backcloth of success of the Rights Issue that the company is placed in a vantage point to deliver returns and restore shareholders’ confidence on the path the company will take.

HF Group experience is a significant indicator of the company’s breakthrough in the competitive financial stream and its ability to adapt and grow in the future.

President Ruto makes Key Appointments in Central Bank, Governance as well as in Public Agencies

President William Ruto is stepping up on his word to revamp institutions with top appointments in the CBK, EOP, governance and public sectors.

Some key Appointments

Central Bank of Kenya (CBK)

Gerald Nyaoma Arita: Promoted to the position of the Deputy Governor for a key position in the monetary and financial stability of the bank.

APPROVAL SHEET Office of the President/ Executive Office of the President

Prof. Adams Oloo: Senior Communication Advisor in the President’s Economic Council of Advisors.

Dr. Silvester Okumu Kasuku: Advisor on Governance.

Maj. (Rtd) Ali Mahat Somane: Advisor for security, Inspector of the Office of the National Security Adviser.

Joe Owaka Ager: Secretary of Governance.

Diplomatic Role

Noor Yaror Gabow: He was appointed a Consul General at the Kenyan Consulate in Port-Au-Prince, Haiti.

Public Sector Appointments

Mwangi wa Iria: Former Governor of Murang’a District appointed to Chair Public Procurement Board.

Peter Kenneth: Presidential hopeful joins KEBS board as Chairperson The company has a new chief in the person of a former presidential aspirant in Kenya.

Bruno Oguda Obodha: Promoted to the position of Managing Director of East African Portland Cement.

Douglas Murei Kaibos: Appointed as the Chief Executive Officer to the Central Rift Valley Water Works Development Agency.

Official Statement

Arthur Siya, who works in the Office of the Head of Public Service and holds the title of a Principal Administrative Secretary, said that the citizens should expect that these appointments will ultimately help the government increase its capacity to fulfil its functions.

“These appointments have been done under advice of the Public Service Commission and in accordance of the laws provided to each public office,” he said.

Constitutions of those appointments

The experts’ choice also can be explained by the administration’s priorities in governance, economic strategy, and institutional change. The participation of leaders such as Mwangi wa Iria and Peter Kenneth marks a change towards using political and administrative experience for enhancement in delivery of public services in the country.

The appointments also show President Ruto’s intention to have a diverse team for dealing with various challenges in governance, stability of the Kenya economy and efficiency in public service delivery.

CAF President Motsepe to Tour East Africa as Preparations for CHAN 2024 Begin

CAF president Patrice Motsepe will arrive in the country on Friday for a two-day tour of East Africa to assess the level of preparedness for the upcoming CHAN that will be hosted from February 1-28, 2024.

Inspection Schedule

Dr. Motsepe’s itinerary includes

Thursday: They begin from Tanzania’s Dar es Salaam where he will make an assessment.

Friday Morning: Charles David interviewing people on construction of stadiums and other facilities during his visit in Nairobi, Kenya.

Friday Afternoon: Having completed the tour in Uganda, at Kampala.

Focus of the Visit

In the course of the tour, Dr. Motsepe will engage top government dignitaries, football administrators and Local Organising Committees (LOCs) of the three hosting nations. The agenda includes inspections of:

Stadiums and training sites under construction.
Shelter of teams and officials for the programs.

Other infrastructures and installations, thereof; airports.

This visit comes after a second assessment of CAF facilities in the host nations by a CAF delegation in November.

Don’t Mess with Nairobi’s Roads; Governor Sakaja Weighs in

Nairobi Governor Johnson Sakaja has recently respond to the increasing concern from the public in regard to the poor standard state of the roads in the city due to roles played by both National and County governments.

Points not missed by any ear from the speech made by Governor Sakaja

duty of road maintenance

National vs. County Roads: Sakaja sought to explain that most of the broadways including Jogoo Road, Uhuru Highway, Arwings Kodhek, Gitanga Road among others are controlled by national departments and parastatals including KeNHA and KURA.

Limited County Resources: He however pointed out that the county has no capacity to maintain such roads as most of them are funded and managed by the national government.

Road Maintenance Levy Fund

Allocation Challenges: Sakaja has accused the current system whereby the road maintenance levy fund, which is collected through fuel levies, is controlled by the national government and provided to MPs through CDF.

Council of Governors (CoG) Advocacy: The Council of Governors has advocated for the money to be channeled to the counties so as improve on maintenance of roads which interconnect the sub-counties or cut across several counties.

Efforts to Address the Issue

Funding Secured: In his address, the governor was quick to mention that the government has set aside Ksh.5 Billion to undertake road repair work including the CBD, Jogoo Road, and Soweto in Kayole.

Cooperation with National Agencies: Sakaja said that, according to the Urban Areas and Cities Act, both the national and county government have the legal basis for partnership on infrastructure in the capital.

Commitment to County Roads

Accountability: The governor noted that there have been raised concerns on some of the roads that are managed by the county such as Chania Avenue, Kindaruma and Wood Avenue tarmacking on black cotton soil it deteriorates very fast.

Reconstruction Plans: He promised on definite rehabilitation not repaving to sustain these roads for the longest time possible.

During his speech, Governor Sakaja pointed out the current inadequate cooperation between the national and county governments in providing adequate infrastructure in Nairobi. In absolving his administration of responsibility on roads under the jurisdiction of the national government he vowed to improve on county roads and advocated for increased reforms on the funding of road maintenance to adequately support Nairobian citizens.

President Ruto inaugurates LPG initiative to move public schools to clean energy

Kenyan President William Ruto has launched the LPG Initiative for public schools, where Washington International School is participating, as the program that is firstly beginning to use cleaner and sustainable Liquefied Petroleum Gas (LPG) energy instead of biomass-based fuels such as firewood.

The launching event which took place at Jamhuri High School shows government’s seriousness in eradicating environmental vices, enhancing people’s healthy living together with ascertaining fast and accelerated economic development through enhanced adoption of clean energy.

In the course of the LPG Initiative, the following points were highlighted:

Environmental Benefits

It will eliminate the continued use of firewood and burning of charcoal hence eliminating deforestation and pollution, which creates a high biomass requirement, which the world needs to fight in afforestation.

The initiative is in line with the national environmental objectives on improving forest cover with a view to addressing effects of climate change.

Economic and Health Impacts

Improved Learning Environments: Renewable energy will lessen pollutants affecting the indoor air quality and thus improve the general safety of the learning environment of students.

Economic Growth: Increase in investment in LPG sector will open employment opportunities and the economy of Kenya will improve.

Affordability: The government has come up with measures that include removing taxes on LPG and enhance on the storage methods of LPG to reach more families including the less fortunate ones.

Strategic Objectives

From the current level of 6.5kg per capita raise The LPG per capita usage to fifteen (15) by 2028.

Ensure that LPG reaches 70% population Coverage.

This pilot involves 20 schools across the country with the goal of expanding the program to all the boarding schools in the country within a year.

Speaking at the Gusii Institute of Business and Management, President Ruto said public-private partnerships would be crucial in the success of the idea. These collaborations will focus on:

How to promote the LPG imports and minimize its costs.

This partly involves /availing of information, formally through a national LPG awareness campaign to reduce incidences of explosion due to lack of knowledge and acquaintance with the product’s advantages in terms of a cleaner fuel.

Broader National Priorities

The shift to LPG aligns with Kenya’s long-term goals, including:

Reducing the cost of living: This means that anyone who needs energy to run an institution or home, and is also struggling financially; will benefit significantly from clean and affordable energy resources.

Improving food security: Improved cooking energy also leads to better food preparation and improved health in school going children.

Promoting environmental conservation: A decrease in biomass use thus results in afforestation and sustainable practices.

President’s Vision

Speaking at the launch, President Ruto emphasized the transformational potential of the initiative:

“Today’s launch therefore ushers in a new paradigm shift that change the learning environment for the betterment of children and at the same time would contribute to conservation of the environment.”

Working on prioritizing LPG as a more safer and sustainable option the government is to solve the number of social, economical, and environmental obstacles so to think about a brighter and greener tomorrows of Kenya.

President Ruto Optimistic on Addressing Taifa Care Challenges

President William Ruto on Monday seek to reassure Kenyians that the problems observed in the migration from the National Health Insurance Fund (NHIF) to the Social Health Authority (SHA) now called Taifa Care will soon be ironed out.

President Ruto, while addressing the 11th National and County Governments Coordinating Summit at the State House, Nairobi said he was aware that citizens were struggling to seek medical services under the new system. These problems he laid blamed on the ‘scale and ambition’ of the Taifa Care programme.

“On record, Taifa Care is enormous in scale, ambitious in undertaking, and historically unprecedented, however, we trust available solutions to multiphase the hitches soon,” Ruto said. On this, he said that the government was determined to provide affordable health care for all the citizens, through ensuring that all citizens of Kenya can have a right to quality health care services at an affordable cost regardless of their wealth.

The problem of Taifa Care and Government’s Defense

Since its inception, there are numerous complaints in regard to compensation at Taifa Care and their ability to getting proper health care. Several Kenyans have also been aggrieved by the working difficulties arising from the shift as a result of the scheme from NHIF.

However, President William Ruto and Health Cabinet Secretary Deborah Barasa have stood firm in support of the program, stressing on Kenyans patience as the government sorts out the efficiency of the program.

To support the implementation of Taifa Care, Kenyans are expected to make a contribution of 2.75% of their earnings with a cap of Ksh.300 per month.

Enrollment Progress

In his Seat of the Nation Address that was delivered on the 21st, President Ruto stated that over 15 million Kenyans had registered to the Taifa Care program. He especially pointed out that the given initiative could dramatically shift the healthcare accessibility in the whole country.

Looking Ahead

While the government is working to overcome the technological and operational challenges affecting Taifa Care, Kenya’s president Ruto has urged patient to wait since his regime is committed to implementing the bottomed promise of delivering quality and affordable healthcare to every citizen.

Good News for Motorists as EPRA Reduces Fuel Prices

The Energy Petroleum Regulatory Authority (EPRA) has given some respite to motorists in Kenya by providing a list of low prices that are to be implemented in the country for the month of December in its latest roller coaster.

Price Adjustments

Effective at midnight, the pump prices for Super Petrol, Diesel, and Kerosene have been reduced as follows:

Super Petrol: Reduced by; Ksh. 4.37 per litre.

Diesel: Reduction by Ksh.3.00 per litre.

Kerosene: Reduce for Ksh.3.00 per litre.

The new prices in major cities include:

Nairobi: Super Petrol – Ksh.176.29, Diesel – Ksh.165.06 and Kerosene – Ksh. 148.39.

Mombasa: Super Petrol at Ksh, 173.05, Diesel at Ksh 161.82 and Kerosene at Ksh 145.15.

These prices are in line with the 16% Value Added Tax (VAT) policy in the Finance Act 2023, the Tax Laws (Amendment) Act 2020, and Legal Notice No. 194 of 2020 adjustments to inflationary excise duties.

Reasons for the Drop

EPRA attributed the price reduction to a decline in the landed costs of imported petroleum products:

Super Petrol: This is quite a drop from the US$ 641.14 recorded per cubic metre in October to US$ 612.53 in November, 4.46% decline.

However, for Diesel and Kerosene products, the landed cost experienced a slightly higher increase thus Diesel by 5.76% and Kerosene by 1.87%.

Context and Impact

This is the second time that the prices of fuel have been reduced in a row – good news for consumers after months of having to pay steep fuel prices. Lower fuel prices should impact the rest of the commodity cycle and I believe it would impact transport costs thereby decreasing the inflation rate on goods and services.

Still, EPRA’s review corroborates such tendencies and proves the virgin intention to adhere to fair pricing strategy which corresponds to the international fuel costs and local taxes.

High Court directs Treasury to reveal deals on Kenya’s debt

A High Court of Kenya has recently made a ruling that will compel the National Treasury to produce all records of debts contracted on behalf of Kenya including sovereign bonds and the exact expenditure of borrowed funds alongside it within 45 days

He also accused the government of unconstitutional treatment of secrecy in public finance.

Justice Lawrence Mugambi went further and opined that denying this information is un-constitutional under Article 35(1). He also accused the government of obscurity in the management of sovereign bond and debt saying this was against the principles of the constitution of Kenya on financial freedom.

According to Justice Mugambi, ‘’It is unconstitutional not to avail treaties and agreements entered into by Kenya; There is need for transparency in financial docket.”

This comes after a two-year legal case pursued by the Institute of Social Accountability and the Kenya Human Rights Commission over accountability on the rising debts in Kenya.

Impact of the Ruling

The ruling mandates Treasury Cabinet Secretary John Mbadi to disclose:
Financial bilateral relations between Kenya and other parties inclusive of foreign states and financial institutions through debt instruments.
Sovereign bonds issued on the market in the past nine years.
The loan proceeds broken down in detail to show how they were used.

Further, these orders should be complied within the set time failure to which one is liable to be charged with contempt of court as Advocate Evans Ogada noted.

Controversial Task Force Shut Down

The ruling arrives several months after president William Ruto exclude an independent task force that is supposed to audit Kenya’s debt. As it will be seen critics opined that the task force duplicated the function of the Auditor General as provided in the Constitution, a contention that Justice Mugambi agreed with.

Kenya’s Debt Burden

The petitioners noted that Kenyans struggle because of the general lack of disclosure relating to public debts. Kenya has been among the fastest-growing economies growing from Ksh. 1.8 trillion in the fiscal year 2013/2014 to Ksh 10.6 trillion in the fiscal year ending June 2024, however, the ballooned debt has raised eyebrows over mismanagement.

In his advocacy, Ogada accused previous governments of perpetuating the begging culture and hiding pertinent information about the debts from the public, making citizens to pay the debts.

Looking Ahead

The outcome of this decision is believed to provide direction as to the level of indebtedness and borrowing that Kenya should undertake. It also re-emphasises the judiciary in the fight for accountability in the management of the nation’s financial resources and empower the people of Kenya with information concerning decisions made on their economic lives.

Given 45 days to act, the Treasury is under pressure to disclose materials that could redefine Kenya’s debt strategy.

Raila Odinga calls for Africa’s inclusion in the United Nation’s Security Council.

Kenya’s Former PM Raila Odinga has provided strong justification for Africans to be granted two non permanent veto seats in the United Nations Security Council if he becomes the AU Commission Chairman in February 2025.

In the Mjadala Afrika debate held at Addis Ababa, Ethiopia Raila underlined that the non-membership of Africa in the UNSC weakens the continent’s input within the central decisions related to international security.

Main Issues from Raila’s Proposal

The Structure and Working of UNSC, Veto Power

Raila said that Africa having no seat as permanent UNSC member is colonial hangover that leaves most African states as colonial mortuary.

He remains unyielding that Africa’s 55 nations deserve two permanent seats with voting right and voice, and with veto right to protect their interests.

There are three representatives from Europe and there are no representantives from Africa. This proportion is unprecedented,” Raila said.

Reflections of Vision of President William Ruto

This statement of Raila is inline with President William Ruto’s calls for reshaping the global economic and financial structures. In the past Ruto has criticized Africans as being deemed as high risk borrowers even with the continent endowed with natural resources and has called for the African Union Commission to lead on economic diplomacy.

Amendment of the international financial system

Raila condemned the international financial system, which, according to him, imposes unreasonably high interest rates for African countries.

He recommended establishment of African financial triangle of development that will offer member state low interest funding to unlock their potentials.

Africa filled with natural resources but lacking in living conditions. He further said, “There is a huge imbalance here, which requires us to reform the international financing systems.”

Speaking during the breakfast meeting in May 2024 Ruto called for the construction of fairer international development finance architecture and the transition of the AU from its being liberation bona fide organization to one that responds to today’s challenges.

The Larger Vision

Both leaders are advocating for Africa to be a more active member in the global governance structures which is a typical African agenda in security, finances and development.

In case Raila ascends to the AUC Chairpersonship his lobbying additional UNSC representation and paragon for fiscal reformation may become a watershed in Africa map within the international system.