Kenya Archives - Page 3 of 5

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.

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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.”

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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.

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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.

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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.

List of Nationals Awarded During Jamhuri Day

More than 500 Kenyans were honored with the presidential awards to mark this year’s Jamhuri Day celebrations that were held at Uhuru Gardens on Thursday. President William Ruto awarded citizens from the different fraternity for their efforts and work towards the nation demonstrating Kenya’s recognition of hard work and commitment.

Highlights of the Honorees

Head of the Order of the Burning Spear (CBS)

Out of the seventy four distinguished awardees this year, one of them was Nairobi Senator Edwin Sifuna.

The Order of the Burning Spear honor comes in three classes: Chief Burning Spear (CBS); Elder Burning Spear (EBS); and Moran Burning Spear (MBS), and is bestowed on public dignitaries, professionals and members of public service who have distinguished themselves.

Other beneficiaries were a Luo Ohangla musician Prince Indah, and actresses Sarah Hassan and Brenda Wairimu.

The Order of the Grand Warrior (OGW) is received for the service and mostly for brave and selfless people.

Moran with the Honorary Membership of the Order of the Golden Heart (MGH)

Praising Douglas Kanja, Inspector General of Police and Other Five Members of the Kenya Defence Forces (KDF), this was the third category of honor, in the Order of the Golden Heart.

Grand Prior of the Sacred Tribunal of the Order of the Golden Heart (GPH)

The second tier dignity was received by Deputy Chief Justice Philomena Mwilu, its recipients usually include Deputy Presidents, Speakers of Parliament and senior public servants.

Order of the Burning Spear: CBS, EBS, MBS.

Order of the Golden Heart: Lastly, Chief (CGH), Elder (EGH), Moran (MGH).

These are: Distinguished Conduct Order (DCO), Distinguished Service Medal (DSM), Silver Star and the President’s Commendations for military and civilian formations.

Purpose of the Awards

These honors are awarded during national events to reward individual’s devotion to the country with the intention to promote such services throughout the country as the government demonstrates its support to recognizing accomplishment in services, arts and security.

The event was a testimony that there exist a lot of talent in the Kenyan society, as well as the fact that Kenyans are the backbone of the country’s development.

President Ruto: A Reflection on Leadership Accomplishments and Issues

Addressing the Nation during the 61st Jamhuri Day Celebrations held at the Uhuru Gardens, President William Ruto admitted that his government has not delivered on the expectations of the people of Kenya since he assumed power in September 2022. These notwithstanding he quantified some degrees of improvement on several fronts, an indication of his fervor towards the Bottom-Up transformative agenda.

The Importance of Recognizing Deficiency and Achievement

President Ruto bluntly admitted that Kenya is yet to fully realize the desired dreams because the administration is yet to properly execute on all foisted obligations.

The president focused on the areas of reform and change that have boosted livelihoods in areas of population feeding, health care, opportunity creation, and safety and freedom.

Key Achievements

Economic Reforms: Measures that seek to flatten the economic curve and bring conditions that are suitable for operation in the economy.

Social Health Insurance Fund (SHIF): Introducing Taifa Care to enhance access to healthcare.

Affordable Housing Projects: More housing units underway with indications that key handover to owners will commence in the following weeks.

Job Creation: Creating opportunities in local and international job markets including placement of 300 youths for overseas employment.

Addressing Critics

The president asked the critics to stop ranting and instead to start speaking facts because even he stated that there has been progress.

“How long will the cynics use Kenyans to mobilize them to ignore facts that are tangible, facts which people can embrace through their bare vitrual.”

He stated confidence that policy anew such as the BBI, affordable housing and job creation will help Kenya solve its age old problems and impart confidence among the citizens.

Vision for the Future

President Ruto reaffirmed his commitment to achieving Kenya’s aspirations through unity and a shared sense of purpose:

“When we all come together for that common thing we call a dream, to build the nation, then we shall build a great nation.”

Outlook

Although President Ruto embraced the fact that there is still a lot that could be done better his government has confidence in touching up the country’s transformation. His leadership vision focuses on endurance, teamwork, and on the development of sustainable person-centered solutions.

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.

Revitalizing Urban Transport

Flying from Nairobi’s South B terminal, BRT targeted to begin by August this year in a project that seeks to improve traffic flow by having well-developed bus lanes and better-designed bus stations in Nairobi’s public transport system. The leader of the day, Governor Sakaja said during Jamhuri Day celebration that development will be manifested early next year.

Key Infrastructure Upgrades

Besides the project of building the BRT, plan of the county government in conjunction with the national government is to rehabilitate the worn out roads within the city.

High impact tarmac roads that include Uhuru Highway, Mombasa Road and Waiyaki Way are targeted for repair and under body makeover as CS – Roads Davis Chirchir disclosed during a tour recently.

All these are endeavors that fall under broader initiatives to increase movement and mobility solutions in Nairobi.

This work is therefore aimed at examining cultural recognition in City Development.

The Governor in making his speech announced ideas of renaming city roads after Kenyan artists. For instance a road in south c will be renamed e-sir Issah Mmari, a Kenya hip hop artist, whose impacts are still essential in the Kenyan music industry.

Impact and Future Outlook

Besides roads, the BRT project is a sign of the authorities’ attempt to develop Nairobi and solve transportation issues that have been around for decades. The cultural acknowledgments also go along with the intentions of the city to incorporate community pride into the process of urbanization.

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.