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Parastatal Africa | 2015 | March - April Issue | 1kicc - kenya

The Kenyatta International Convention Centre

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There should be no compromise on securityThe state of our nation’s security continues to be wanting, with the various attacks happening every now and then. Like a blood-thirsty vampire, the Al Shabaab pounces on an opportune moment to inflict pain and agony to the Kenyan people. After a period of calmness and just when the country is gaining confidence in its sense of security, like a cheetah hunting for its prey, they strike.

The continued attacks leave more questions than answers. One pertinent question however persists, ‘how effective is Kenya’s intelligence and why is it that this cannot be used to avert these attacks?’ The state of insecurity has had a major impact on our economy, particularly the tourism sector. Insecurity has seen the issuance of travel advisories from the West, Kenya’s key tourist markets. This has led to a drop in the number of Charter flights, the close down of several hotels which translate to the laying off of workers, especially in the Coastal City of Mombasa which in result has slowed down Kenya’s economic growth to 5.5%.

However, we must appreciate the efforts of the Ministry of East African Affairs, Commerce and Tourism and the Ministry of Foreign Affairs and International Cooperation in marketing Kenya and portraying a positive image of our country abroad, especially the recent partnership with a foreign agency to market Kenya globally. This coupled with #TembeaKenya initiative is expected to be a boost to the Tourism sector. As a nation, however we must put our house in order and alleviate the fear that people are currently living in. It is sad that the explosion caused by faulty underground electrical cables which was mistaken for terrorism attack caused a lot of damage and the loss of life. This portrays the grave image at hand; that people are living in fear in a nation that they call home. It also goes to show how much as a country we are prepared or otherwise of disasters like these. It is high time students and the public in general are enlightened on disaster preparedness and management which to say the least is wanting!

One of the security measures that Kenya plans to take is to build a wall along its border with Somalia as a preventative measure to curb the attacks. The ‘separation border’ is not going to be the first on the globe. There has been the Great Wall of China, there’s another in Saudi Arabia on her border with Yemeni, and in the US there are several barriers on the Mexican border. However the most famous is Israel’s separation barrier – nearly 500 miles long, it alternates between rows of barbed wire and electronic fencing and eight-meter high concrete walls. Israel describes it as ‘the only thing that can minimise the infiltration of these male and female suicide bombers,’ others call it the apartheid wall, an architectural expression of Israel’s subjugation of Palestine. So, have the walls worked? Yes and No. A lot more needs to happen if Kenya is to return to its point of glory and reclaim her position as the tourism destination of choice to her key markets.

Terrorism is a global challenge; the international community therefore ought to be more supportive. May be it is time the global community, the Government of Kenya and the various stakeholders did a re-evaluation on the refugee situation in the country.

Enjoy!

Catherine Njau

[email protected]

©Parastatal Africa 2014

PUBLISHERS DETAILSPUBLISHER:Musline Communications Ltd.

EDITOR:Catherine Njau

WRITERS:Esther Kaboyo

CONTRIBUTORS:Wambui Muiruri

PHOTOGRAPHER:Kanyari Edward

DESIGN & LAYOUTKichimbi Brand SolutionE-mail:[email protected]

IT SUPPORTJohn Maina

ADMINISTRATION & FINANCELilian Mwai

DISTRIBUTIONBonface Shikami

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BUSINESS EXECUTIVES:Mary MakenaRodney LubogaLilian KariukiRuth ChagemaMercy WeruRose Pauline KigothoElizabeth Githae

EDITOR’S NOTE

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REGULARS

2. EDITOR’S NOTE

5. NEWS 11. MINISTRIES CORNER

FEATURES

28. WRMA

46. NWCPC

39. PICTORIAL

18. CORPORATE NEWS

52. COUNTY NEWS

55. REGIONAL NEWS

60. PROJECTS

63. SPORTS

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Readers View

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The digital era is here with us and it is here to stay. The universe has shifted to the digital platform and insisting on being analogue is lagging the world behind. In fact, five years or so from now, even the current digital landscape we are resisting for electronic media broadcasting will have shifted so much that nobody will be clamouring for set-off boxes to receive television signals. I think that hand-held devices and ipads will be the dominant termination point of TV signals. I doubt that the living room is going to be the assembly shrine anymore. Change is inevitable and the only way to stay relevant is to accept change as it comes.

Charles Mwendwa, Nairobi via email

Despite the fact that her position is so challenging, Sarah Serem still stands tall and follows the Kenyan Constitution to see to it that the mandate of the Salaries and Remuneration Commission is adhered to. She is among the few women in the public domain who are still strong and stand firm without fear or favour of anyone. She is a good role model to most women here in Kenya; keep going strong Serem! We love her high spirit and strong demeanour.

Maria Abdi, Mombasa via email

Despite market reforms, several business surveys reveal that business corruption is still widespread and that companies frequently encounter demands for bribes and informal payments to ‘get things done’ in Kenya. The public procurement sector in Kenya suffers widespread corruption. The use of agents to facilitate business operations and transactions in Kenya is widespread and poses a risk for companies, particularly at the market entry and business start-up stage. It is a great and positive step that the government of Kenya has taken towards fighting corruption and I hope this will help end corruption completely in the country.

Moses Kipkorir, Trans Nzoia via mail

According to the research done by Hass Consults, Kenya’s property market is expected to remain strong in coming years. Kenya’s property market has potential for higher rates of return compared to other jurisdictions. It is also relatively easy for foreign investors to enter Kenya’s real estate sector. Foreigners can freely buy ‘commercial class’ land in Kenya. This type of land is for income or revenue-making purposes.

Judith Kamau, Kiambu via email


NEWSReaders View

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In line with the spirit of regional integration we committed to support each other in key infrastructure projects and we shall lend support

to the Ugandan one. We shall take up a minimal 2.5 per cent stake in the refinery project,” Mr. Njoroge said. The facility is slated to process 60,000 barrels of oil per day and much of Uganda’s projected crude output is expected to be exported via a pipeline through Kenya, which is yet to be built. Either a consortium headed by South Korea’s SK Energy Co. or another led by Russia’s RT-Global Resources which are both currently locked in bidding for the refinery will take up a 60 per cent stake in the project as well as develop and operate it.The Ugandan government had invited both Kenya and Rwanda to buy shares in the remaining 40 per cent stake.

Kenya will contribute capital equivalent to its 2.5 per cent stake, which is Sh5.6 billion based on the $2.5 billion set as the initial construction cost of the refinery.Construction charges could however be revised by the final bidder of the project that will see Uganda add value to its crude output to maximize earnings from its hydrocarbon reserves, which were discovered in the country along its border

with the Democratic Republic of Congo in 2006. Uganda’s reserves are estimated at 6.5 billion barrels. The first phase of the refinery is expected to be ready in 2018.

Kenya’s commitment came as the deadline for the two consortia to submit final bids for the oil refinery lapsed, paving way for the selection of a lead investor for the project by next month.

The Ugandan government said it held preliminary negotiations with the two consortia between August and September 2014 and issued it with a Request for Final Offer (RFFO) with a submission deadline. “Following the negotiations and issuance of the RFFO, the bidders will prepare and submit their refined technical, financial and commercial and legal offers,” said Kabagambe-Kaliisa, the Permanent Secretary in the Ministry of Energy and Mineral Development. “They are expected to document their technical concept design for the refinery, project implementation and operating plans, national content policy and project management teams, among others,” he said.The final offers will be evaluated by a team from the Ugandan government and project transaction advisor, Taylor-Dejongh and the winner picked.

Kenya Acquires Sh.5.6bn Stake in Uganda Refinery

Kenya has agreed to acquire a 2.5 per cent stake in the planned Uganda Oil Refinery for an estimated ksh.5.6 billion. Energy and Petroleum PS Joseph Njoroge said Kenya would take up the stake as part of a commitment among East African Community (EAC) member states to close ranks on projects that benefit the bloc.

Kenya acquires Sh5.6bn stake in Uganda refinery. Energy and Petroleum principal secretary Joseph Njoroge.


NEWS

Tullow Oil will concentrate its exploring activities to East Africa as falling global prices of crude forces the London-listed company to significantly scale down this year’s budget.The company, which is searching for oil in Northern Kenya will now spend $200 million (Sh18.2 billion) for all its operations across the world down from $1 billion (Sh99 billion). “The reduced exploration programme will predominately focus on a number of high-impact, low-cost exploration opportunities in East Africa,” Tullow Chief Executive, Aidan Heavey said in a statement. Crude prices currently stand at $50 a barrel, a six year low, having fallen sharply following oversupply. The company said results for the Epir-1 well are expected later this month.The Engomo-1 well, testing the Turkana West Basin, has commenced drilling. The Lekep-1

Tullow Oil Focuses on East Africa in Oil Search Bidwell, testing the Kerio Valley Basin, is expected to be drilled in the second half of 2015 along with multiple appraisal wells in South Lokichar as work progresses on the East Africa development plan.

On oil production, the firm will shift focus to West Africa where it expects to deliver around 100,000 barrels of oil per day by the end of next year to generate long term cash for the business. Tullow and its partner Africa Oil Corporation of Canada are known to be behind the oil discoveries in Kenya.The amount of resource discovered to date since March 2012 is estimated to be above 600 million barrels which industry analysts say meets the minimum threshold for commercial exploitation.

Talks on development and production of the Kenyan oil are ongoing between the government and players in the upstream sector. Analysts have, however, cautioned that the country can only produce oil at a profit if the price of crude is at a minimum of $70 per barrel.

Tullow Oil Focuses on East Africa in Oil Search Bid

Kenya signed a Ksh.25 billion loan deal with Japan to help expand capacity at Mombasa port, a busy facility that is the main trade gateway to East Africa. The port handles fuel, consumer goods and other imports for Uganda, Burundi, Rwanda, South Sudan, Democratic Republic of Congo and Somalia, as well as regional tea and coffee exports.

Container traffic through the port reached about one million twenty foot equivalent units (TEUs) in 2014, up 11.9 percent on a year earlier. The port management said it expected a 30 percent increase

Kenya, Japan Sign Ksh.25bn Deal for Mombasa Port Expansion

to 1.3 million TEUs in 2015.

Officials said the loan would support the purchase of cargo handling equipment, help finance a brand new container terminal and aid construction of another terminal already being built. Japanese Ambassador Tatsushi Terada was at the signing. Neighbouring states and regional firms have been putting pressure on the Kenyan authorities to improve handling and efficiency in the port as trade to and from the region grows. Kenya has long had plans for a second container port further north on its coast, in the Lamu area, but the project has faced repeated delays.

Kenya’s neighbour to the south, Tanzania, is also working on making its Dar es Salaam port more efficient and plans another container terminal, adding competition in the region.

Cargo at the Mombasa port. Container traffic through the port reached about one million twenty foot equivalent units (TEUs) in 2014


NEWS

Water levels in Lake Turkana have dropped by about 30 percent thus causing a rise in the lake salinity level which is a main cause of fluoride poisoning. National Environmental Management Authority (NEMA) Chief Researcher, Isaac Elmi says that the dropped level of the lake might have been caused by the construction of the Gibe Dam in Ethiopia in River Omo which is the lakes main source of water. He says that this has led to a decline of the water which is flowing into the lake thus having the massive evaporation seeing the rise of salinity of the lake NEMA also predicts that the lake could dry up affecting thousands of people living and depending on the lake in Turkana.The decline has also seen a reduction in the fishing activities in the lake, this is because the fish has been unable to cope the salinity levels of the water as well as the shallowness of the lake.

The Government has applied to renew its membership at the International organization of major sisal producers and exporters, the Inter Governmental Group on Hard Fibres after more than a decade. The Agriculture, Fisheries and Food Authority Sisal Inspectorate move seeks to reverse its predecessor, the Kenya Sisal Board’s decision to quit the global body. According to the Fibre Crops Directorate’s Interim Head Anthony Mureithi, the country early this month formally requested to rejoin the Inter Governmental Group on Hard Fibres which comprises countries such as Brazil, Tanzania, China and Madagascar, among other producers.

Mureithi said the move seeks to consolidate the country’s position as a major global player, also ranked the third largest producer of sisal fibre in the world after Brazil and Tanzania. “When you are in the International arena, you get to access top players in the industry that will then identify the gaps in the local market and find opportunities to invest,” he said. “We shall then be able to access information and to synergize with other producers and learn from what they are doing and we hope to attract funding and capacity building,” added Mureithi.

Speaking after a tour of the Coast region, Mureithi said locally produced sisal fibre is one of the best in the world, but added that the industry needs to adhere to the best international practices, benchmarks, quality assurances and benefit from technology sharing. More than 85 per cent of the sisal fibre produced locally is exported to Saudi Arabia, China, Morocco, Nigeria, Spain and the Philippines. By end of 2013, exports from Kenya had reached more than 25,000 tonnes, valued at Ksh.2.8 billion while earnings from export sales of sisal products such as kiondos, mats, twines, ropes, dart boards and other handcrafts mainly to the US, Germany and Japan reached about Ksh.60 million in the same period.

Kenya is the only producer of dart boards in the world. With more than 85 per cent of the country falling under Arid and Semi-Arid Lands, the potential to expand the sisal crop, which is easily managed and drought resistant, is immense. With emerging uses of sisal products in construction, motor industry, paper manufacturing, décor and medical applications, the market potential is huge. Mureithi indicated the move is a step towards realizing the dream. “While our focus is on supporting small-scale farmers on capacity building and diversification of products, we require the right technologies to make that a success,” he pointed. The Sisal Inspectorate now seeks to commence research by introducing high-yielding varieties. The current varieties have degenerated over time.

“Genetic degeneration has been detected where varieties which had a production cycle of 15 years have now reduced to five years or less,” said Mureithi.

NEMA warns of Dwindling Water Levels in L.Turkana

Kenya Seeks to Join Global Sisal Board

The Agriculture, Fisheries and Food Authority Sisal Inspectorate move seeks to reverse its predecessor, the Kenya Sisal Board’s decision to quit the global body.


NEWS

Financial institutions have been put on notice to surrender unclaimed assets or face penalties for the delays. The Unclaimed Financial Assets Authority is seeking custody of idle assets estimated at about 200 billion shillings as mandated by the law. The Unclaimed Financial Assets Authority is now ready to crack the whip on errant financial institutions holding on to abandoned assets. So far it has received 1.5 billion shillings and an estimated 200 billion shillings. Unclaimed assets include cash accounts that have been dormant for over five years, bankers cheques not cashed in for two years and contents in safe deposit boxes that have been unclaimed for more than two years. Others are matured life insurance policies unclaimed for more than two years and shares whose dividends have not been redeemed for more than three years. Estimates indicate that commercial banks could be holding

8 billion shillings in dormant accounts, listed companies could be holding around 2 billion of unclaimed dividends, and the NSSF is approximately holding 300 million in unclaimed contributions and insurance companies about kSh.500 million in unclaimed life policies.

The authority says that the owners of such assets can claim them before they are surrendered, but adds that most may never know whether the assets exist or if the next of kin owned them. This is because most of the unclaimed assets are as a result erroneous data capture, systematic inefficiency and, confidentiality requirements that hinder access to such information.

The authority was set up in 2012 under the unclaimed financial assets act (2011) to collect and remit the financial assets to owners, or keep custody until the government decides the best way to invest them.

Unclaimed Financial Assets Authority Warns Financial Institutions

New Terminal at JKIA to Handle 7.5m Passengers

In efforts to boost passenger capacity at the Jomo Kenyatta International airport the Kenya Airports Authority has put up a prefabricated terminal with a capacity of 2.5 million passengers for both domestic and international passengers. The building was put up at a cost of 1.7 billion shillings funded by the African Development bank. The new terminal will increase the airport's capacity to 7.5 million passengers annually from the current 6.5 million. The terminal is equipped with two baggage security screening lines capable of processing 1200 passengers in one hour, making it easy for thorough checks across all the 25 passenger inlets. The structures here are set up in a manner that in case of an emergency at another airport in the country, the terminal can be dismantled and re constructed on site in less than 8 months. The intensive JKIA upgrades programme is aimed at up grading the facility to world class standards and making it an African hub.

JKIA Ranked 5th Best in AfricaJomo Kenyatta International Airport was recently named the 5th best in Africa in the prestigious 2014 Airports Council

International (ACI) Airport Service Quality (ASQ) Awards.The recognition is a boost to the airport, which suffered downturn in 2013 after fire, broke out and gutted the arrivals terminal. ACI (ASQ) is considered as the aviation world class industry’s most comprehensive passenger service programme that aims at allowing airports plan improvements and customer benchmarking services against other airports. The recognition is testament to the airport’s on-going commitment to service excellence.“The stature of JKIA has grown significantly in recent years with the increased passengers and cargo traffic into and out of the facility. We expect even further growth going forward as more capacity is unlocked by on-going works, which will improve level of service, security and controlled access to meet international standards, thus taking advantage of its strategic location of JKIA to position it as the premier aviation hub of Africa,” Kenya Airports Authority Managing Director Lucy Mbugua said..The ACI ASQ survey captures passengers’ experience at all airport contact points at more than 300 facilities worldwide.


NEWS

Kenya has re-launched its efforts to brand its coffee exports across the world with a mark of origin in a bid to reap the maximum value. According to Alfred Busolo, the Interim Director General of the Agriculture, Fisheries and Food Authority, the move is intended to tell the world where the world best coffee originates from.

Kenya Brands its Coffee to Reap Maximum Benefits

This comes at a time when coffee prices on the world market are on the increase, and Kenya hopes to boost returns from its coffee through brand identity by consumers.

The government had launched the coffee Kenya mark of origin 4 years ago, however its visibility and even its use, for those processing and packaging has been minimal. The Coffee Directorate has licensed four firms to use the mark of origin to brand their products. The four are Dormans, Kenya Nut Company, Dedan kimanthi and Gibsons.

The government has also noted that despite a decrease in the acreage of coffee in the country, there was a significant increase in coffee revenue for the year 2013/2014 and therefore the need to elevate the name Kenyan Coffee touted as the best in the world. Kenya mainly grows Arabica coffee; the coffee has been used for blending purposes and therefore its visibility is blurred internationally.

A new motorized spray pump is set to revolutionize medium-scale farming in the country. The pump offers farmers a more efficient, cost-saving option for spraying their crops. Coffee, tea and horticulture farmers with medium and large- scale farms are set to benefit from the new sprays by saving on labour costs and covers a bigger area when spraying.

“This spray pump is faster than the hand-operated one. One person can cover five hectares a day,” said Samuel Ngetha, a sales manager at Hygrotech East Africa Ltd, the company which is supplying the sprays. Unlike the hand-held gadgets which require a lot of effort to operate, the motorized spray pump is easy to operate since it only requires to be strapped on to one’s back, switched on and the nozzle directed at the crops. The pressure and quantity

Motorized Spray Pump Eases Costs for Farmers of spray can be altered, depending on the crop and chemical that is being used. According to Mr. Ngetha, the pump’s boom and mist sprays can cover crops more effectively, reaching even the top of fruit trees. While the hand-held pump weighs between six to 10 kilogrammes with its content, the motorized one is much heavier at between 25 kilogrammes to 30 kilogrammes, including the chemical.

And at Ksh. 22, 000 it is more expensive compared to the hand-held pump which is sold at Ksh. 3, 500. It also has a three-litre petrol tank. Hygrotech plans to introduce the pumps to farmers through co-operative societies to make buying easier. “We are using societies to purchase the pumps for farmers and then they will deduct it from their payment,” said Mr. Ngetha. “Farmers are responding very well and they are requesting for the pumps. We have orders to supply societies in Meru, Kirinyaga and Nyeri,” he said. The pumps have been used extensively in China and South Africa and are only now being introduced to Kenya.

Mr. Samuel Ngetha of Hygrotech Ltd demonstrates how a motorized pump works at the Central Coffee Mill in Nyeri


MINISTRIES CORNER

A diplomatic impasse between Kenya and Tanzania over tourism could have been resolved at a meeting between the two presidents during the East African Community (EAC) Heads of State Summit in Nairobi. A senior official at the EAC Affairs, Commerce and Tourism Ministry said that the row might not wait longer as a meeting that was scheduled 12 days prior in Arusha was indefinitely called off by Tanzanian authorities.“This issue is highly likely to be discussed between the two heads of State of Kenya and Tanzania even as we wait to review a comprehensive list of grievances between us and our neighbour,” said the official who declined to be quoted as he is not allowed to speak to the media. Currently, the two countries are locked in a tourism row after Kenya

Kenya and Tanzania to Meet over Ranging Tourism Dispute

By Kaboyo Esther ([email protected])

in January banned Tanzania-registered tour vehicles from accessing the Jomo Kenyatta International Airport. The ban was temporarily lifted to allow for negotiations only to be reintroduced after the Tanzania government postponed a ministerial meeting that was scheduled to be held in Arusha last week to allow for more internal consultations.

After launching the ministry’s ISO 9001:2008 certification standards at the Kenyatta International Convention Centre, the ministry’s Cabinet Secretary Phyllis Kandie expressed optimism an amicable solution will be reached to allow for a smooth resumption of tour operations between the two countries.

She came close to accusing her Tanzanian counterpart of playing hardball after he called off a meeting that was slated for February 5 in Arusha. “I hope we will sit down and iron out key issues that have played out in the past several weeks,” said Kandie. She told journalists that in the past the two parties have set dates to meet and review a number of grievances arising from the 1985 bilateral agreement that sought to improve trade relations between the two countries.“In that meeting, we all agreed to level our respective grounds for fair play so that we don’t jeopardize the ongoing regional integration process. We also agreed to work towards promoting the region as a preferred destination,” she added.

East African Affairs, Commerce and Tourism Cabinet secretary Phyllis Kandie with Principal secretary John Konchellah during the launch of the ISO 9001:2008 Certification of the State Department of East African Affairs at KICC

The first ever Meetings, Incentives travel, Conferences and Exhibitions (MICE) forum in East and Central Africa this year was launched by the East African Affairs, Commerce and Tourism Cabinet Secretary Phyllis Kandie. Speaking during the launch of the initiative at the Kenyatta International Conference Centre (KICC), Kandie said the vision in the tourism sector was to make MICE an annual event that will develop to become the biggest event in East Africa adding that diversifying the tourism sector product to include MICE was one of their priorities. “There is a strategic plan for the tourism sector with clear objectives that identifies priorities and guides timeliness for achieving our goals for the tourism sector. Diversifying our tourism product to include MICE is one of our priorities.”In addition, Kandie said the progress towards the implementation for growing MICE in the country was shown in the recent rankings by the International Congress and Convention Association (ICCA). The rankings placed Kenya as being the second most

Kenya 2nd Most Preferred Destination for Conference Tourism

East African Affairs, Commerce and Tourism Cabinet Secretary Phyllis Kandie.


MINISTRIES CORNER

preferred destination for conference tourism in Africa after South Africa for the third year consecutively. The results were based on the number of International Association Conferences, a destination hosts per year that saw Kenya, through the KICC host 38 International Association Conferences. The CS said MICE tourism industry was expected to grow and will establish its place as a key contributor to achieving the rebound and growth in the tourism sector. The 10th WTO (World Trade Organization) ministerial conference had attracted over 7000 delegates to Kenya. “This underscores the potential benefits that MICE events can bring to Kenya and adds urgency to our efforts to make Kenya more attractive for MICE tourism, injecting vital investment and income into the country’s economy,” noted Kandie. She also added that her ministry will increase the country’s capacity for MICE through the development of additional convention centers including a new project at Bomas of Kenya alongside other infrastructure development. This, she says will package Kenya as a competitive destination for business conferencing and exhibitions. It was also revealed during the conference that this year, for the first time, Kenya will host the 10th WTO (World Trade Organization) ministerial Conference in December 2015.

Furthermore, Kandie said the country had also won the bid to host the World Conference on Public Relations forum in November 2015 and other MICE events including the SKAL

World Congress for the International Association of Travel & Tourism Professionals to be held in Mombasa this October and the World Youth Championship in 2017 among other bids.

Speaking at the same function, Ministry of East African Affairs, Commerce and Tourism Taskforce Chairperson Ms. Lucy Karume said the initiative was good for the country noting that it would invite more investors, help to grow tourism industry and increase employment opportunities in the country.Each of these conferences is expected to inject approximately Sh. 26 Billion into Kenya’s economy since each delegate is expected to spend at least Sh. 374,000 per conference.The initiative will see the country take a big and bold step towards positioning Kenya globally as a preferred Meetings, Incentives travel, Conferences and Exhibitions (MICE) destination.The event was aimed at getting the key buyers, planners and decision makers being involved in organizing or facilitating mind blowing: Conferences, Exhibitions, Trade Shows, Networking events, Meetings, Incentives, Parties, concerts, rallies, sports (Rugby & Football) and Seminars etc.The theme of the forum ‘Where meeting means business’ MICE EXHIBITION AFRICA is the only show in Kenya focusing solely on networking between the buyers and sellers for the MICE industry.

The Ministry of Mining has adopted an automated system to manage licensing for mineral prospecting and collection of royalties. The move is meant to increase revenue collection from the sector.

According to a gazette notice published by Cabinet Secretary for Mining Najib Balala, the online system will process fresh applications for mining rights. Data on existing mineral rights holders and pending applications will also be transferred to the database. “The mining registry is transformed into an online transactional mining cadastre for the management of all mineral rights and mineral dealers operations in the country including communication, reporting and payments,” the notice read. It comes just months after Mr. Balala announced plans to restructure the Ministry in a bid to boost revenue collection. The changes will see setting up of a revenue collection department within the Ministry and two officers redeployed to the port of Mombasa on full-time basis to monitor verification of minerals in a bid to stem illegal exports.Kenya is home to several minerals including gold and rare earth metals whose value is estimated to run into billions of shillings. However, according to government records, illegal trading has denied the country a chance to earn corresponding income. The situation has also been worsened by the fact that the country relies on the Mining Act that dates back to 1940, which according to industry analysts, fails to take into consideration recent developments.

Ministry of Mining Automates its Systems

Cabinet Secretary for Mining Najib Balala

The Ministry of Transport and Infrastructure is developing a policy framework for air transport infrastructure. The plan is to bring together the private sector, National and County governments to improve airfields and their facilities. However according to the Chairman of the Council of Governors Isaac Ruto, only 18 airports and airstrips have paved runways out of the 181 runways in the

Ministry Develops Framework to Revamp Air Infrastructure country and he says this is a clear indication of neglect. Deputy President, William Ruto says that better airports will boost economic and social development of the counties. The government hopes to make Kenya a global player by providing adequate modern high quality infrastructure to support the growth of the industry.


In his first assignment as Chief of Staff, Julius Debrah has led a government delegation to Kenya to share experiences around Kenya’s National Youth Service and Youth Empowerment Model. The former Local Government and Rural Development Minister replaced Prosper Bani as Chief of Staff in latest changes at the seat of government, the Flagstaff House. The aim of the visit is for Ghana to learn about how Kenya has restructured its youth development policies; the National Youth Service and the Youth Empowerment model. The interaction when sustained, might lead to the creation of about 300,000 jobs per annum.Kenya’s Youth Empowerment Model

New Chief of Staff leads Government Delegation to Kenyahas two main components: private sector internships & training and capacity building & policy development.

The objective of the project is to support the Government of Kenya to improve youth employability.Parliament recently passed the Youth Empowerment Agency bill which when signed into law, will ensure proper oversight and efficiency in the management of the Agency. The Bill covers aspects such as sources of funding for the agency and its application, tenure of office of members as well as the development of programmes. The Ghanaian delegation’s visit followed a state visit by President John Dramani Mahama to Kenya in December 2014.

Julius Debrah noted in a press briefing after a meeting Monday, with Kenya’s Minister of Devolution, CS Anne Waiguru, that his visit is in the spirit of South Technical Cooperation that is aimed at sharing best practices. He was accompanied by Deputy Minister for Education, Samuel Okudzeto Ablakwa, Acting C.E.O. of the National Youth Authority Ras Mubarak, and Dr. Michael Kpessah Whytte, who is the Acting Executive Director of the National Service Scheme. The rest of the members of the delegation are Kobina Acheampong, Acting Executive Director of YEA, formally GYEEDA and Helga Boadi, National Coordinator of the Youth Enterprise Support. The high level government delegation was in Kenya for four days.

Telecommunications giant Safaricom has been contracted to design an electronic subsidy management system for the Ministry of Agriculture's fertilizer distribution chain. The Ministry of Agriculture will have an administration portal server where the data will be stored and farmers will pay for fertilizer upfront to a bank or pay bill number to trigger the inputs supply. The program is also aimed at cushioning farmers from price fluctuations. Safaricom's fertilizer deal comes soon after the firm clinched another of the government's large contracts for the Ksh.14 billion shilling security surveillance system. The fertilizer management system expected to be ready by the end of March, and tested between the months of April and May in Bungoma, Uasin Gishu and Trans Nzoia counties, will aid the government to delink itself from direct dealings with farmer. When it finally starts

working, procurement of fertilizers will be left to the private sector as opposed to the present system in which the government is involved in procurement and distribution. To eliminate corruption in fertilizer distribution, the new digital e-system will be both mobile phone and web-based and will feature a farmer and agro dealers registration module which will require farmers to send their basic registration information to the system. The farmers will then be vetted at local level and once approved, will be given unique identifiers to access fertilizers and other inputs suppliers. It will also have a stock management module with a database of inputs suppliers in all areas and will relay information on stocks available for ease of access and redemption by farmers. Reports on beneficiaries and quantities of fertilizer distributed will be generated as and when required.

Ministry of Agriculture to Digitize Fertilizer Distribution

The sports, culture and arts Cabinet Secretary, Hassan Wario wants film making in Kenya zero rated to facilitate revival of the sector. Speaking during the Pan African Federation of film makers’ inaugural meeting in Nairobi, Wario said he had already submitted his request to the treasury. Kenya’s film industry is currently performing poorly compared to other African countries and the government says it is time to change.When the film "Out of Africa" was shot in Kenya back in 1985,

tourists’ inflows doubled, now South Africa dominates the lion share of the African market for international film makers with 25 percent. Plans are underway to have a new law in place to streamline the sector and also give more powers to the Kenya Film Classification Board to deal with piracy.

Zero Rate Film Making, Says Wario

MINISTRIES CORNER


NEWS

Economic growth in Kenya, Uganda and Tanzania is set to be considerably higher than most developing countries in Africa in 2015 and next year, a new report says. The World Bank notes that development in the three countries stood at 5.4 per cent, 7.0 per cent and 6.8 per cent last year and will increase to six per cent in Kenya this year, and 6.6 per cent in 2016 respectively.

World Bank Sees Brighter Africa in 2015Tanzania’s growth will also rise slightly to 7.2 per cent this year but will fall to 6.8 per cent in 2016. Uganda’s growth will remain steady at 6.6 per cent in 2015 and 6.9 per cent the following year. The rates are higher than those in sub-Saharan Africa as a whole which stood at 4.5 per cent last year rising to 4.6 per cent this year. This, the report says reflects a slowdown in several of the region’s large economies, notably South Africa. Across the region, growth will surpass five per cent in 2017 supported by infrastructure investment, increased agriculture production, and buoyant services.

The global lender said the outlook ‘is subject to significant downside risks arising from a renewed spread of the Ebola epidemic, violent insurgencies, lower commodity prices, and volatile global financial conditions.’ In the Global Economic Prospects report, the bank said policy priorities include a need for budget restraint for some countries in the region in which Kenya is singled out and ‘a shift of spending to increasingly productive ends, as infrastructure constraints are acute.’World-wide, after growing by an estimated 2.6 per cent in 2014, the global economy is projected to expand by 3 per cent this year, 3.3 per cent in 2016 and 3.2 per cent in 2017.

NSE trading floor during the opening of the Exchange Building in Westlands

Construction of Lamu Port Begins

By Wambui Muiruri

Construction of the Lamu port is set to begin this month, this is according to President Uhuru Kenyatta who said the port, which is a core part of the LAPSSET corridor will boost the plans for improved exploitation of the country’s maritime resources. The president was speaking at the opening of a two day national maritime conference in Nairobi. The Kenya Maritime Authority has identified intensive skills training as the immediate need for the sector, it emerged Ethiopia, a landlocked country generated over 40 million us dollars from a fleet of 15 ships in 2011 while Kenya only managed a paltry 4 million as its sea and inland marine resources remain largely juakali. It has also emerged that the country has totally neglected a sector that has immense potential to contribute to the country's GDP as the Permanent Secretary, Ministry of Transport and Infrastructure highlighted some of the measures that the country needs to take to unlock the expected potential.

Upon the expiry of a 4 year tenure of Prof. Njuguna Ndungu as the CBK Governor, the Public Service Commission has been on a mission to find the next man or woman for the top position at Central Bank of Kenya. Prof. Njuguna Ndung’u’s term expired on 4th March, 2015.The Public Service Commission hopes to fill the slot by May. The highly contested position has seen veterans with long experience in public finance management dominate the race. A shortlist by the PSC showed that current CBK deputy governor, Dr. Haron Sirima; the Economic Affairs Director at Treasury, Dr. Geoffrey Ngugi Mwau; and former Planning Permanent Secretary and one time CBK deputy governor Dr. Edward Sambili are among five preferred candidates to replace Prof Ndung’u.

Dr. Patrick Ngugi Njoroge and Dr. Peninah Wanjira Kariuki have also made it to the shortlist and will battle it out with the three veterans.The race for the position of CBK governor attracted 22 candidates including Dr. Rose Wanjiru Ngugi, a consultant with links to the IMF where she works as an advisor on policy and engagement with member countries, Dr. John Hongo Randa, a senior economist at the World Bank’s Nairobi office and Dr. Chris Kiptoo, the Kenya country director of TradeMark East Africa (TMEA).

The names of the three top candidates will then be forwarded by the PSC to President Uhuru Kenyatta who will recommend one of them for approval by Parliament and appointment as the next CBK governor.

Search for CBK Governor Continues


Ensuring Increased Productivity, Commercialization & Competitiveness

of the Agricultural Sector

Agriculture is the mainstay of the Kenyan economy directly contributing 26 percent of the gross domestic product (GDP) annually and a further 27 percent through linkages with agro-based and associated industries, indirectly. The national blue print Vision 2030 recognizes agriculture as

one of the six priority sectors that make up the larger part of Kenya’s GDP (57%) and provide nearly half of the country’s total formal employment.

The sector is therefore a major source of livelihoods for the majority of the Kenyans and is also expected to deliver other regional and global commitments such as the achievement of the fi rst Millennium Development Goal (MDG 1) on poverty and hunger. Vision 2030 further recognizes the role of research in technology generation and creation of new knowledge, which are vital in national development. The Vision

also acknowledges the importance of value addition in agriculture and livestock as a means of raising rural household incomes as captured by the sector’s driving strategy, the Agricultural Sector Development Strategy 2010–2020.

In implementing the second medium term plan, the Kenya Government reformed the National Agricultural Research Systems through creation of the Kenya Agricultural and Livestock Research Organization (KALRO), through the Kenya Agricultural and Livestock Research (KALR) Act No. 17 of 2013. This act was formulated after consolidating and repealing several pieces of legislation to enhance effi ciency in agricultural research in Kenya. On 1st July 2014, four state corporations within the Ministry of Agriculture, Livestock and Fisheries Development namely Kenya Agricultural Research Institute (KARI), Coff ee Research Foundation (CRF), Kenya Sugar Research Foundation

The Minister for Agriculture, Livestock and Fisheries Mr Felix Koskei tours Kenya Agriculture and Livestock Research Organization Stand, accompanied by the Director-General Dr Eliud Kireger (left).


Tissue Banana and Pawpaw Orchards

Institute Institutes Centres1. Food Crops Research Kitale Kitale, Alupe, Embu, Kabete, Kisii, Muguga and Njoro

2. Veterinary Research Muguga Muguga and Alupe

3. Biotechnology Research Muguga Muguga and Kabete

4. Genetic Resource Research Muguga Muguga

5. Beef Research Garissa Garissa, Lanet, Mariakani and Transmara

6. Arid & Range Lands Research Kiboko Kiboko, Katumani & Turkana

7. Non-Ruminant Research Kakamega and Naivasha Kakamega and Naivasha

8. Sugar Research Kibos Kibos, Opapo, Mumias, Mtwapa, Nyando and Kikoneni

9. Horticultural Research Thika Thika, Tigoni, Kibos and Matuga

10. Apiculture Research Perkerra Perkerra, Lenena Training Centre

11. Sheep & Goats Research Marsabit Marsabit, Buchuma, Macalder and Marimanti

12. Coff ee Research Ruiru Ruiru, Mariene, Namwela, Kisii, Kitale, Koru and Azania

13. Tea Research Kericho Kericho and Kangaita

14. Dairy Research Naivasha Naivasha, Msabaha and Ol Joro Orok

15. Industrial Crops Research Mtwapa Mtwapa, Kandara, Mwea and Molo

(KESREF) and Tea Research Foundation (TRF) were merged to form KALRO. The merger is aimed at restructuring agricultural and livestock research into a dynamic, innovative, responsive and well-coordinated system driven by a common vision and goal.

KALRO is therefore mandated to establish suitable legal and institutional framework for coordination of agricultural research in Kenya with the following goals:

1. Promote, streamline, co-ordinate and regulate research in crops, livestock, marine and fi sheries, genetic resources and biotechnology in Kenya;

2. Promote, streamline, co-ordinate and regulate research in crops and animal diseases; and

3. Expedite equitable access to research information, resources and technology and promote the application of research fi ndings and technology in the fi eld of agriculture.

Under KALRO, 15 semi-autonomous research institutes have been created to undertake focused and specialized value chain based agricultural and livestock research. The research institutes are;


Tissue Banana and Pawpaw Orchards

Institute Institutes Centres1. Food Crops Research Kitale Kitale, Alupe, Embu, Kabete, Kisii, Muguga and Njoro

2. Veterinary Research Muguga Muguga and Alupe

3. Biotechnology Research Muguga Muguga and Kabete

4. Genetic Resource Research Muguga Muguga

5. Beef Research Garissa Garissa, Lanet, Mariakani and Transmara

6. Arid & Range Lands Research Kiboko Kiboko, Katumani & Turkana

7. Non-Ruminant Research Kakamega and Naivasha Kakamega and Naivasha

8. Sugar Research Kibos Kibos, Opapo, Mumias, Mtwapa, Nyando and Kikoneni

9. Horticultural Research Thika Thika, Tigoni, Kibos and Matuga

10. Apiculture Research Perkerra Perkerra, Lenena Training Centre

11. Sheep & Goats Research Marsabit Marsabit, Buchuma, Macalder and Marimanti

12. Coff ee Research Ruiru Ruiru, Mariene, Namwela, Kisii, Kitale, Koru and Azania

13. Tea Research Kericho Kericho and Kangaita

14. Dairy Research Naivasha Naivasha, Msabaha and Ol Joro Orok

15. Industrial Crops Research Mtwapa Mtwapa, Kandara, Mwea and Molo

(KESREF) and Tea Research Foundation (TRF) were merged to form KALRO. The merger is aimed at restructuring agricultural and livestock research into a dynamic, innovative, responsive and well-coordinated system driven by a common vision and goal.

KALRO is therefore mandated to establish suitable legal and institutional framework for coordination of agricultural research in Kenya with the following goals:

1. Promote, streamline, co-ordinate and regulate research in crops, livestock, marine and fi sheries, genetic resources and biotechnology in Kenya;

2. Promote, streamline, co-ordinate and regulate research in crops and animal diseases; and

3. Expedite equitable access to research information, resources and technology and promote the application of research fi ndings and technology in the fi eld of agriculture.

Under KALRO, 15 semi-autonomous research institutes have been created to undertake focused and specialized value chain based agricultural and livestock research. The research institutes are;

Afl otoxin Research Scientists in a Laboratory in KARLO Katumani

Institute Institutes CentresSince KALRO is charged with spearheading agricultural research in the country, and it is strategically positioned to ensure increased productivity, commercialization and competitiveness of the agricultural sector. This will be achieved through generation and promotion of knowledge, information and technologies that are responsive to the needs and demands of the farmers.

KALRO boasts a highly trained and motivated staff that is an essential ingredient for ensuring sustainable agricultural development through the application of science and technology. Although staff losses through natural attrition (retirements, resignations, deaths among others) are anticipated, the organization has put in place an elaborate mechanism to hire and replace the departing staff to ensure work continues smoothly. Other than the human resource, the organization is also endowed with huge land tracts which are critical for

commercialization and generation of resources needed to undertake research.

KALRO has over the years partnered with a number of research organizations within the NARS, regionally, continentally and even globally to develop resilient agricultural technologies to address food and nutrition security in the country. In the process, KALRO has been instrumental in mentoring young scientists through internship and attachment opportunities accorded to the many young men and women pursuing their undergraduate and graduate degree courses in the local universities and even those from other universities in the Eastern African region and indeed other parts of the world. The organization has institutionalized an elaborate mentorship program whereby young scientists are formally mentored by the older and more experienced colleagues.

HEADQUARTERS:The Acting Director General,Kenya Agricultural and Livestock Research Organisation,Location: Kaptagat Rd, Loresho Nairobi KenyaPost Offi ce: P.O.Box 57811,City Square, NAIROBI, 00200, KenyaEmail: [email protected] Fax: +254-020-4183344Tel No(s): +254-020-4183720, 4183301-20, 418 3307

Safaricom:0722-206-9860722-206-988Airtel:0733-333-2230733-333-2240733-333-2940733-333-2990736-333-294


CORPORATE NEWS

The Kenyan real estate sector has witnessed significant growth over the years, which is largely attributed to a stable macroeconomic environment and improved infrastructure. The recent increase in economic activities

and the rising income levels have stimulated the property market and developers in all the major urban centres that are investing in residential and mixed use projects. To better guide investors on the trends, the banking industry’s umbrella body Kenya Bankers Association (KBA) launched the first KBA Housing Price Index (HPI) to provide market players and policy makers with an improved analytical tool that is useful for tracking the housing sector based on location and quantitative characteristics that influence pricing.

Speaking during the launch, KBA CEO, Mr. Habil Olaka, noted that the significant growth witnessed within the real estate sector had inspired KBA to develop a tool that was not only credible, reliable and robust, but one that would truly reflect a sense of independence and credibility. “The House Price Index will serve two critical roles: One, it will be a useful risk management tool for the financial market players and banks in particular who not only finance home development and ownership but also take such property as collateral for other credit; and two, it will be an invaluable tool to the non-financial sector players both businesses and households- seeking to invest in the housing industry,” said Mr. Olaka. HPI is a statistical device that measures changes in prices of houses both residential and commercial. It looks at the movement in the house prices from one period to another with the aim of tracking the percentage change in house prices overtime. In addition, HPI can also track prices changes in houses across regions and types of houses. In broader economic outlook the HPI would serve as an indicator of how the real estate sector is performing. HPI is based on the hedonic function as elaborated in the framework developed by the Kenya Bankers Association Centre for Research on Financial Markets and policy.The hedonic model estimates the value of the house by looking at the

main features including the total area covered by the house, number of bedrooms, number of bathrooms, number of floors, location of the house, age of the house and type of the house; presence or absence of a garage, shopping mall, parking, domestic staff quarters, swimming pool, balcony, gymnasium room, master ensuite, borehole, fire place, garden/backyard, and separate dining room.Speaking at the same function, KBA Governing Council Member and Managing Director of Housing Finance, Mr. Frank Ireri noted that the KBA HPI fills a gap in the market adding that the alternative Index would act as an indicator of economic performance and also serve as a risk analytical tool. “The KBA HPI is an important tool which will provide institutional investors and individual homebuyers with information about house price inflation allowing these investors to make better comparisons and assessments,” said Mr. Ireri. In addition, Ireri noted that the index would be an important indicator in informing how to deal with supply constraints that lead to escalated prices in the housing sector. The HPI is one of the major performance indicators for the real estate sector and therefore essence of informing the outlook of the overall economy. Speaking at the same function, KBA Director for Research and Policy Mr. Jared Osoro stated that the HPI tool would be published on a quarterly basis.

“We realized that any period shorter than the three months would yield biases given that such periods may not provide a sample with adequate data points that fully represents the market,” said Osoro while presenting the index. The tool will cover houses that have been put on sale in the market all over the country with a bulk of the data being from Nairobi and its environs this being an indication of the housing market being concentrated in Nairobi and its environs. HPI is one of the key asset prices measure and it will be of great value in the Kenyan market. It will provide a credible and scientific way of tracking movement in house prices in the country. This will be of great importance to the real estate developers and potential house buyers as it will enable them make informed investment decisions.

Banker’s Index to Monitor Residential House Prices


HPI is computed using the hedonic pricing model, which estimates the price of a house from the imputed prices of the house characteristics.


CORPORATE NEWS

Thika town is set to get a Ksh. 500 million shopping mall developed by a consortium of investors who include a director of Capwell Industries Ltd, the makers of Soko Ugali maize flour.Mr. Chetan Shah has teamed up with other investors to set up Ananas Mall on a six-acre plot along Garissa Road in Thika’s populous Makongeni Estate. The shopping complex, set to be completed in April, has about 90,000 square feet of retail space.

Tuskys Supermarket has booked space as the anchor tenant for the mall, which also has a food court, departmental stores and kids’ play area. “We are a group of Thika investors who have resided in Thika for over 40 years. The investors identified the growing needs of the Thika community and rightfully decided on this investment,” said Mr. Shah. “There is a growing middle class here in Thika and bringing them the mall experience means shoppers do not need to travel to Nairobi and all their needs are catered for at very close proximity,” said Mr. Shah, who is also a director of the upcoming shopping complex.Capwell is a family-run food manufacturing business whose products include maize flour (Soko Ugali and Pendana), Best Cook baking flour and rice (Pearl, Ranee and Mwea Pishori).

Ananas Mall is billed Thika’s biggest shopping arcade and is set to rival Chania shopping complex and the Nakumatt Thika branch.Innscor Africa opened three food stores Pizza Inn, Creamy Inn and Galitos at the Ananas Mall on Christmas Day last year, marking

Thika Gets Ksh.500m Shopping Complexthe entry of the Harare-based fast-food chain in Thika. Other retailers who have booked space at Ananas Mall include Bata, City Walk, Mimosa Pharmacy, Safaricom, Telecom Orange and kids’ clothing shop Trendy Totoz. Tuskys said it aims to open its store at the mall in the first week of February and is currently undertaking fit out works at the shopping complex. “We’ve ordered the shelfing from abroad which has been delivered and the fittings will take two weeks and another two weeks to stock the store,” said Peter Leparachao, Tuskys Chief Operating Officer.

“We see a lot of opportunities in the new store given the huge growth of Thika town,” he added. The Tuskys shop at Ananas Mall will be its third in Thika town as it already has an outlet at Chania and a convenient store named Chap Chap on Uhuru Street. The investment by Tuskys put it in a fierce retail battle for the control of Thika with Nakumatt, which opened its store in the industrial town in February 2013. The other tier-two retailers in Thika are Mathai, Maguna Andu, Leens, Kassmart and Thika Tex Supermarket.Thika hosts several industries including Bidco Oil Refineries, juice maker Del Monte, Kenya Vehicle Manufacturers, Broadway Bakery, Kenblest Bakery, Kifaru Industries, Thika Coffee Mills and Crown Beverages.The town has several institutions of higher learning such as Mount Kenya University, Gretsa University, Umma University, Thika Medical Training College, Thika School of Medical & Health Sciences and the Kenya Christian Industrial Training Institute.

Shelter Afrique has secured a Ksh.4.5 billion loan from KfW, the German Development bank, for onward lending to firms planning to put up houses for the low end market.The Pan-African mortgage lender said the loan will be available to both private and State-owned companies that either construct houses or lend to borrowers in the underserved low end of the market.“The loan with a tenure of 10 years will be used to finance construction for private and State-owned

Shelter Afrique gets Ksh.4.5bn for Cheap Units companies and for on-lending to commercial banks and micro-finance institutions,” said Shelter Afrique in a statement.

The loan, the first from KfW, is expected to make it easier for Shelter Afrique to pay dollar-denominated obligations that have brought pressure following the strengthening of the dollar.

“The loan signing comes at a time of a resurgent dollar and will go a long way to complimenting Shelter Afrique’s dollar liquidity ratio as well as providing competitively priced project finance products and lines of credit.”

Housing Finance has also tapped the foreign debt market recently signing a Ksh.1.8 billion loan with the Ghana International Bank for onward lending to the low- and mid-income market.

Shelter Afrique Managing Director Alassane Ba


CORPORATE NEWS

Uchumi Supermarkets will open 13 more branches across East Africa this year as the retail chain embarks on an aggressive growth plan in the region. Uchumi hopes to finance its expansion through proceeds of the Ksh. 896 million rights issue, which concluded last year.Uchumi Chief Executive, Jonathan Ciano said the funds will help the company to grow its branch network

Uchumi’s Growth Plan across East Africa in 2015in Kenya, Tanzania, Uganda and Rwanda, aid in operations and in refurbishing existing outlets.

“The decline in cost of living expected with the reduction in the price of fuel and electricity is likely to increase consumer spending,” said Mr. Ciano.“We should see a growth in the size of the shopping basket as households get more disposable income with the ease in the cost of living.

By December, we expect to have 50 branches from the current 37. Most of these are in highly lucrative areas.”Amongst the new branches, three will be located in Rwanda with two already operational in Tanzania.Uchumi opened eight branches across the region last year.

Uchumi Supermarkets will open 13 more branches across East Africa in 2015 as the retail chain

Property owners to be compensated for parcels taken up by infrastructure projects will be spared capital gains tax, new rules put out show. Guidelines formulated by the Kenya Revenue Authority (KRA) indicate that compensation relating to the Standard Gauge Railway (SGR), the Lamu Port South Sudan Ethiopia Transport (Lapsset) corridor, oil pipelines, dams and roads will not be taxed.“Certain transactions are exempted … (including) compensation by Government for property acquired for infrastructure development,” said KRA in the guidelines. In the case of the SGR, at least Ksh. 10 billion is being paid out for the 11,000 acres being acquired between Nairobi and Mombasa. Any land over 100 acres in rural area is subject to the tax. Moses Kiambuthi, the Chief Executive of the Institute of Surveyors of Kenya (ISK), said the logic for the exemption was that the land is acquired by the State compulsorily, without the owners having a choice to refuse. “It is a compulsory acquisition. You don’t have a choice in that you are not the one choosing to sell. That is the reason for the exemption,” said Mr. Kiambuthi. Also to be exempted are mergers and acquisitions of companies done in public interest as certified by the Cabinet Secretary Ministry of Finance. This however excludes mergers that are done for commercial interests. The exemption is also not directed at the petroleum industry,

Lapsset Land Sellers Escape Capital Gains Tax which is charged a higher CGT of 30 per cent for local and 37.5 per cent for foreigner transactions. Where the proceeds of a land transaction is less than Ksh. 30, 000 (hardly anywhere near towns) no CGT is to be paid.

Recently, the KRA said it was considering proposals that land less than 100 acres outside major towns, now exempt, would be subjected to CGT. Most of the land transacted in the outskirts is in plots measuring less than 100 acres. The proposal to impose the levy was based on the fact that land in the outskirts of major towns has risen in value in the past decade or so and such transactions could increase tax collections. Disposal of property as part of administering the estate of a deceased person will escape the taxman’s net. KRA guidelines issued warned it would use market prices where related parties attempt to calculate the tax in a manner that minimizes tax obligations. Where related parties transact, the KRA Commissioner-General will require a report from a registered valuer. “Where there is concern that a related party transaction may have led to reduction in the transfer value with a view to minimizing the capital gains tax, the Commissioner will make necessary adjustments and/or revaluation to determine the market price,” it said. The guidelines clarified that when an investor makes a loss in a transaction, it can be carried forward to be offset against a gain of a similar nature at a future date. “The loss may be carried forward to be offset/deducted against a gain of a similar nature (capital gain only) at a future date,” said the statement.

Kenya Railways and World Bank officials inspect houses under construction in Makadara, Nairobi. The units will house people relocated from a railway line buffer zone.


CORPORATE NEWS

Davis and Shirtliff, a Pan-African multinational, operating through a network of Kenyan branches and Kenya's leading water and energy solutions provider, has commissioned two 250kVA Dayliff Yanan synchronized standby generators

for Safari Business Arcade, a Ksh. 20m project that will allow tenants of the premises receive the exact energy needed, eliminating power wastage and hence lowering energy costs during power black outs.

Inefficiencies in the system design accounts for up to 20 per cent of energy waste, resulting in organizations incurring unnecessarily high energy costs, according to recent findings by the Kenya Association of Manufacturers. This exacerbates losses incurred by businesses due to the frequent power outages that Kenyan towns are now prone to as demand for electricity soars. Most standard backup generators currently available in the market supply a fixed amount of electricity regardless of the variation in user needs, resulting in wastage of energy. However, the Dayliff Yanan synchronized standby generators installed at Safari Business Arcade, currently being pioneered in the Kenyan market, are designed to supply only the amount of electricity that is required for the users' activities. At full capacity, for example, the Dayliff Yanan synchronized standby generators deliver 500kVA power shared evenly between the two generators. As the load requirements of the building decline the system responds by delivering less power.

This is in contrast to standard backup generators, which supply the same amount of power even when usage declines, hence are more wasteful and thus costly. "When there is a power failure, both generators will start up and monitor the power needs of the building. When the demand is low, one generator will shut down automatically as the other one runs to supply power for the premises until demand

Dayliff Yanan Synchronized Generators to Lower Cost of Standby Power Supply


rises," said Simon Shikuku, Davis and Shirtliff's engineer in charge of the project. Also, in the event of a fault in one of the synchronized standby generators installed at the Safari Business Arcade, the other generator will kick in automatically and ensure power supply for the tenants, a number of whose operations are electricity-critical. "A number of the occupants interested in the premises had expressed the need for constant electricity supply due to the nature of their businesses. We therefore needed to source for equipment tailored to our clients' specific power needs," said Albert Waweru, Chairman of Ruaraka Housing Estate Limited, developers of Safari Business Arcade. According to Mr. Waweru, the Aga Khan Hospital, three banks and a number of retail outlets are expected to take up some of the space at the business arcade. Each set of the synchronized generators has a daily service tank connected to a common auxiliary tank and the total fuel storage capacity is 140 hours of continuous operation. Fuel transfer from the auxiliary to the service tanks is by automatic means.

Davis and Shirtliff will undertake the service and maintenance of the installation for a period of two years so as to ensure their efficiency. This will also include training Safari Business Arcade's engineers on handling and general repair of the generators. The generators are similar to those used by electricity generating companies and are vital in managing power supply when demand fluctuates. The Dayliff Yanan synchronized system can be customized to manage many generators at a go and can be expanded to achieve increased power output with increased power demand levels. Davis and Shirtliff Limited also has regional subsidiaries in Uganda, Tanzania, Zambia, Rwanda, Ethiopia, South Sudan, Somalia, Burundi and DRC and was founded in Kenya in 1946.

Right to left: Martin Gwada (Power Product Manager, Davis and Shirtliff's ), Albert Waweru, (Chairman of Ruaraka Housing Estate Limited) Margaret Kuchio (General Manager Sales, Davis and Shirtliff), Julius Riungu (Engineer, MAK Consulting Ltd) and Simon Shikuku (Lead Project Engineer, Davis and Shirtliff) during the commissioning of the two 250kVA Dayliff Yanan synchronized standby generators for Safari Business Arcade


CORPORATE NEWS

Britam has completed the Ksh.2.78 billion acquisition of Equity Bank’s shares in Housing Finance. The transaction, according to a notice published by Britam, was completed on December 31, saving Equity Bank from having to pay millions of shillings in capital gains tax which became effective on January 1. Equity Bank however billed Britam Ksh.48.5 million for not meeting the initial transaction deadline of September 30, 2014. “The Board of Britam is pleased to announce that all of the conditions under the agreement have been fulfilled or waived (where applicable) and the completion of the proposed acquisition took place on December 31, 2014,” Britam’s Company Secretary Nancy Kariuki said in the notice. The transaction would have been subject to a five per cent withholding tax on any gains made by Equity Bank as per the new capital gains tax laws. Equity Bank on June 30 last year entered an agreement to sell its 24.7 per cent stake in HF (57.7 million shares) to Britam, which is set to raise its shareholding in the mortgage firm to 46.08 per cent.The agreed price was Ksh. 47.70 per ordinary share. The HF share sale was to see Equity comply with Central Bank of Kenya guidelines discouraging banks from having strong control on other financial institutions which are not subsidiaries.

Equity’s disposal of its shareholding in the mortgage firm was also seen as driven by new stringent corporate governance regulations that effectively curtailed its ambitious plans for the mortgage firm. The transacting parties anticipated that the deal would have been completed within three months but delays in receiving all regulatory approvals delayed the date by a further three months.The matter took on a sense of urgency as January 1 the date the new capital gains tax was to take effect drew near with the transaction still unfinished. Capital gains tax on property or share transfers became applicable on January 1, meaning Equity was potentially staring at a huge tax bill given the deal’s absolute valuation.The tax has been set at five per cent of the difference between the transfer price, less expenses associated with the transaction, and the adjusted cost of acquisition. “The initially agreed completion date was September 30, 2014 and a further amount of Ksh.48.54 million (Equivalent to Ksh.0.848 per share) was claimed by the seller (Equity) as a delayed completion payment,” said Ms Kariuki in the statement.Britam’s 46.08 per cent Housing Finance stake sees the firm gain strategic control of the mortgage business at a time when it is undertaking multi-billion shilling real estate projects in the country.

Britam Finalizes Buying Sh.2.7bn Equity Shares in HF

Britam offices

Breakfast cereals maker Proctor & Allan East Africa has appointed David Kamau as the new Chief Executive Officer.Mr. Kamau is a former Haco Tiger Brands Marketing Director in charge of brands marketing and innovation strategies across East Africa.He holds a Bachelor of Science degree from Moi University and an MBA in Strategic Management from the University of Nairobi. His appointment comes at a time when Proctor & Allan East Africa Limited is constructing a manufacturing plant in Limuru to increase its production. The company says the expansion is driven by increased demand of its products in the market. Mr. Kamau has over 15 years’ experience in both pharmaceutical and the fast moving consumer goods industries with extensive regional sales and marketing experience.

Proctor & Allan names New CEO


CORPORATE NEWS

Kenya Airways’ pilots and cabin crew are set to take a pay cut after the airline negotiated for a reduction in the allowances that they are paid for working outside the country.

Kenya Airways Staff to take Pay Cut in New DealIn a new agreement that the airline signed with the Kenya Aviation Workers Union (KAWU), which took effect from January 1, the workers will now draw allowances only for days spent overseas.This ends the previous practice where they were guaranteed overlay allowances averaging Ksh.90, 000 per month, and which assumed they each spent about nine days in foreign destinations every month.Besides reduction of the overlay allowances, all KQ workers will not get a pay rise until the airline returns to profitability.“It was hard to justify the guaranteed overlay allowances and we agreed with the company’s view of paying allowances on the exact number of days spent abroad,” said KUWA’s Secretary-General, Moss Ndiema. The new agreement runs from July last year until June 2016. KQ agreed to raise other unspecified allowances using part of the savings on the overlay payouts.

KQ workers will not get a pay rise until the airline returns to profitability.

French Smartphone maker, Wiko Mobile has introduced a fourth generation (4G) phone in the local market. The manufacturer says the new high-speed Internet enabled handsets will be

Wiko Unveils its 4G Phone in Kenya targeted at youthful phone users. Wiko Mobile entered the Kenyan market last September. It has several brands under its stable that include Wiko Highway, Wiko Highway Fine and Wiko Rainbow. “We will be considering our target market that includes the youth and the middle-aged,” said Wiko Country Manager John Mutwiri.“We are operating in a very competitive market but this will be a slimmer phone with enhanced screen resolution,” he added. Wiko has been marketing and selling its brands through its 200 distributors across the country unlike other players who operate through partnership with mobile phone operators’ outlets like Safaricom or Airtel to increase market visibility and credibility.

Mr. Mutwiri said its brand expansion in the market was buoyed by increased uptake of smartphones in the country. Wiko is majority-owned by Chinese technology group Tinno Mobile and manufactures its phones in China. Its main competitors in the local market include Chinese manufacturers such as Huawei and ZTE.

Wiko mobile officially made its entrance into the Kenyan market


CORPORATE NEWS

National Housing Corporation (NHC) is going to float a Ksh. 5.0 billion corporate bond in the second half of the year to help finance plans to develop residential houses in Kenya. This comes at a time when Kenya is grappling with cases of lack of ability of the stakeholders in the market to keep up with the ever rising demand for housing as well as shallow mortgage markets. The move will see the corporation double the number of houses in the country as well as use the bonds money to expand the company’s polystyrene panels (EPS) factory in Mavoko, Machakos County. Statics show that Kenya needs around 210,000 housing units annually and the corporation says that it will do the best in its capacity to ensure that it gives Kenyans low cost housing with the bond which shall be tax exempt, just like infrastructure bonds.

NHC to Float a Ksh. 5bn Corporate Bond

Sankara Hotel in Nairobi has been awarded with an international accreditation for safety and crises management. This is after the hotel proved beyond reasonable doubt that it can be able to have effective precautionary measures when faced with security issues. The hotel which started operations in Kenya back in November

Sankara Hotel Receives Accreditation for Safety & Crises Management

2010, received the accreditation from SafeHotels Alliance AB which is a Swedish company.

Part of the evaluation criteria include checking the hotels security equipment ,staff awareness on matters relating to security and their training on the same ,fire security and providing of first aid.Speaking during the award ceremony, Hans Kanold, CEO of SafeHotels said, “The hotel is the first ever to attain the 200 point audit and be awarded with the SafeHotels certificate and trust symbol.”Receiving the award, the General Manager of Sankara Nairobi, Mr. Moshi Perera noted that this was a huge milestone for the hotel, as “we are committed to exceeding customers’ expectation in every respect.” In December, global hotel chain Carlson Rezidor signed an agreement with Safehotels to get certification for 23 of its hotels in Europe, Middle East and Africa. Carlson Rezidor is set to open two hotels in Nairobi this year, Radisson Blu and Park Inn by Radisson.

PureCircle, a Malaysian company farming stevia in Kericho County, is set to kick off a local expansion programme using its newly raised cash.The agribusiness firm producing stevia, a natural sweetener used in beverages, said it would increase the number of counties where the crop is grown in addition to expanding in Paraguay where it also grows the crop. The filing at the London Stock Exchange (LSE), where it is listed, said the expansion whose details were not disclosed comes after completing its cash call that raised Sh.3.87 billion in November last year. “In the first half of 2015 (June to December 2014) we completed a share placement to support expansion of our supply chain and continued diversification of leaf supply ahead of anticipated sales growth. Supply chain capacity expansion is planned to commence in the second half of 2015,” said PureCircle Chief Executive, Magomet Malsagov.

The firm initially began growing the crop in Kericho County in 2012 but has already expanded to Meru, Bungoma and Uasin Gishu counties.PureCircle Kenya General Manager, Priyanko Chatterjee had earlier noted that the company was expanding gradually and had contracted some 4,000 farmers to supply it with 20,000 tonnes of stevia monthly

for export. There were also plans to expand to Kiambu County pending approval from the National Environment Management Authority. “Though we have not started in Kiambu County we are giving technical assistance to the county government which is very interested in the project,” Mr. Chatterjee noted at the time. The filings at the LSE indicate PureCircle expects sales for the first half-year ended 31 December 2014 to stand at $40 million (Sh3.6 billion) from $34.8 million (Sh3.12 billion) earned in previous corresponding period, representing a 24 per cent increase. The company says growth in sales is due to demand from large beverage companies including Coca-Cola, Pepsi and Dr Pepper. The firms are increasing use of stevia over sugar as the market resists refined sweeteners. “These developments coupled with our strategy of introducing new and innovative ingredients and solutions to meet identified market needs and our global customer service infrastructure and smart partnerships are continuing to win business for PureCircle,” said Mr. Malsagov. The filing also showed profit is expected to increase in tandem with an increase in sales with half-year results expected to be announced in mid-March.

Stevia Firm Eyes More Counties in Ksh.3.9bn Production Expansion


CORPORATE NEWS

Co-operative bank has kicked off paperless banking as it pushes to cut operational costs.Customers depositing cash and cheques at the bank are going straight to the point of service without filling any forms. Family Bank is the other lender with a similar system. “The bank has cut costs of stationery, previously a large expense on account of the huge customer base of the bank that is served at the banking halls. In addition, the measure has reduced on paper clutter in the banking halls,” said Co-operative Bank.The bank’s stationery and printing costs stood at Ksh.527 million in 2013 up from Ksh.495 million the previous year. Co-op has 142 branches hosting 4.9 million account holders.

Depositors will tell the bank clerks their account details for the amount to be posted on confirmation of the cash. Completion of the transaction is evidenced by a system-generated receipt. Previously, Co-operative Bank tellers used to feed paper to the printer for printing of the transaction details. System-generated receipts are expected to cut the service period. Bank staff noted some academic institutions were yet to embrace the new system and were insisting on students supplying them with the old deposit slips. The bank has initiated a cost cutting drive which recently saw it lay off 160 staff. Its cost-to-income ratio is currently at 58 per cent compared to an industry average of 51 per cent. It expects to improve the cost-income ratio to below 55 per cent. Several other lenders

Co-operative Bank Rolls Out Paperless System to Cut Costsincluding Barclays, KCB and National Bank have conducted staff layoffs to cut operational costs. More banks are reported to be eyeing the shift from a process in some cases entailing duplicate deposit and withdrawal slips besides printing cost.

“Banks save money and customers save time. The need to enhance customer turnaround time by the bank tellers was a key factor,” said Family Bank Managing Director Peter Munyiri.Other banks that are installing the paperless system include Barclays, Chase, Diamond Trust and KCB. Beside cash deposits other processes being pushed to the paperless system are electronic funds transfer and real-time gross settlement transactions. Sources indicate that Barclays customers will have touch screens on their side of the counter where they will sign for authentication that they are the account holders. Banks are relying more on technological innovations to cut costs and improve security.

Most lenders do not break down costs incurred on stationery though. Among those who have disclosed are KCB, Ksh.228 million, and CFC Stanbic Ksh.76 million.Banks have also been improving their stationery by consolidating several service requests on a single form. Analysts had noted banks would rely heavily on cost cutting this year as interest margins come under pressure with the implementation of the Kenya Banks’ Reference Rate.

Co-operative Bank chief executive Gideon Muriuki.

M-KOPA Solar has won the 2015 Zayed Future Energy Prize at the opening ceremony of the annual Abu Dhabi Sustainability Week. This is the world’s leading renewable energy and sustainability award and M-KOPA is the first company headquartered in Sub-Saharan Africa to win in the enterprise and SME categories. M-KOPA Solar is the market leader in ‘pay-as-you-go’ energy services for off-grid customers - combining mobile payments with GSM sensor technology to enable the leasing of solar power systems. Since its launch in October 2012, M-KOPA has connected more than 150,000 homes in East Africa to solar power and is adding over 500 new homes each day. M-KOPA Solar customers buy a solar home system with an initial deposit of $35, followed by 365 daily payments of 43 cents – which is cheaper than their daily spend on kerosene. After completing the payment package, customers own the system outright.Jesse Moore, Managing Director and Co-Founder of M-KOPA Solar said, “We are honoured to win the Zayed Future Energy Prize. The

prize brings global attention to M-KOPA Solar's business model, which has brought clean, affordable solar power to 150,000 homes in East Africa in less than three years. We believe that the 'wireless energy' revolution is just the beginning and that M-KOPA Solar will soon power millions living off the grid." The Zayed Future Energy Prize brings with it a US$1.5 million (KES133 million) prize. M-KOPA Solar will use these funds to launch a training and development program called M-KOPA University, which will provide world class technical and business skills development to employees, sales agents and partners. Jesse Moore added that, “We've proven that our technology can scale and - thanks to great work by our team - we've already reached a pace of 500 plus sales per day in East Africa. And yet there is demand for our solution in tens of millions of homes. With the recognition and backing of the Zayed Future Energy Prize, we will continue to develop our exceptional team in order to reach millions of customers as soon as we can."

M-KOPA University will be hosted in the company’s Nairobi headquarters to provide an onsite and remote curriculum. By 2018 M-KOPA University will provide training to over 1,000 staff

M-KOPA Solar Wins Zayed Future Energy Prize

By Wambui Muiruri


CORPORATE NEWS

and 3,000 sales agents across East Africa, as well as to M-KOPA's licensing and distribution partners in other parts of Africa and Asia.The US$4 million Zayed Future Energy Prize, established by the United Arab Emirates government in 2008, recognizes organizations, schools and individuals across the world that have made significant contributions to the future of renewable energy and sustainability.

In seven years, the Zayed Future Energy Prize winners and finalists have positively impacted the lives of more than 150 million people around the world – delivering access to clean energy and water, championing the deployment of renewable energy and creating hundreds of jobs.

Boost for KQ as Jambojet gets Regional Licence

Kenya Airways’ budget airline Jambojet has got a licence for international flights, handing a New Year’s gift to the loss-making national carrier. The Kenya Civil Aviation Authority (KCAA) has given Jambojet a one-year licence to ply International flights to nine major East African destinations. Jambojet has been flying to Eldoret, Kisumu and Mombasa from its base in Nairobi since its launch in April last year. The new licence will see Jambojet add Juba, Entebbe, Dar es Salaam, Mwanza, Bujumbura, Kigali, Zanzibar, Kilimanjaro and Addis Ababa to its domestic routes. The carrier will serve the routes using its fleet of Boeing 737 aircraft based at Nairobi’s Jomo Kenyatta International Airport.

Jambojet’s debut on the international stage raises competition for rival regional carriers including Fly540, RwandAir, PrecisionAir, and Ethiopian Airlines. London-based Fastjet Plc has also announced plans to start operations in Kenya as part of its bid to become a major budget carrier on the continent.

KQ is betting on Jambojet to boost its earnings on short-haul routes which are becoming increasingly competitive due to the entry of new players and expansion by established carriers. Jambojet is riding on relatively cheaper fares to boost passenger volumes by encouraging more people to fly as opposed to travelling by bus.The cost of its air tickets can be as low as half those charged by the parent company and other commercial (non-budget) airlines. Jambojet is currently charging as low as Sh4, 000 ($45) for a one-

way flight from Nairobi to Mombasa. The low-cost carriers’ tickets cost as low as two-thirds of fares charged by formal bus operators on some of the popular domestic routes. Jambojet, which has a fleet of three planes, is able to charge the relatively lower fares by offering fewer frills. Passengers pay for all extras like food, baggage and seat choices. KQ hopes this business model will help tap rising passenger numbers within the region and also ward off competition from budget carriers like Fly540. The model will now be expanded to the East African market where increased economic integration and rising growth rates have boosted demand for air travel.

KQ spent Kshh.118 million on Jambojet’s initial startup cost. The national carrier posted this amount as a net loss in its latest annual report where it also revealed that Jambojet is shouldering liabilities of Ksh.881 million originating from its predecessor Flamingo Airlines which folded in April 2004. Jambojet’s launch marked an about-turn by KQ, which merged its former low-priced passenger and cargo unit Flamingo Airlines with its group operations. Flamingo Airlines had been making losses over the four years of its existence. Liabilities of Ksh.881 million and deferred tax of Ksh.221 million from the defunct airline were transferred to its successor Jambojet.

In the half-year to September 2014, Kenya Airways reported a record net loss of Ksh.10 billion. Jambojet, which is currently spending big on marketing and special offers, stands to be of even greater importance to KQ in the short term following the cancellation of flights to West Africa over the Ebola outbreak.


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ABC Bank and New York-based international money transfer service Trans-Fast have signed an agency agreement to enable Diaspora customers to send money to friends and family in Kenya.The tie-up with Trans-Fast makes ABC Bank the first bank in East Africa to partner with the money transfer service, which has presence in 108 countries in America, Europe, Asia, Africa and Australia. The two institutions have received approval from the Central Bank of Kenya to launch the service.

ABC is banking on this new deal to solidify its position in the Diaspora remittances ecosystem at a time when Kenya’s Diaspora remittances have reached an all-time high of Sh. 129.99 billion in 2014, according to a recent report by Central Bank of Kenya.ABC Bank offers a wide array of money transfer services, serving Kenyans living and working in America, Europe, and Middle East, enabling them to support their families in Kenya as well as invest."This collaboration brings added value to both ABC Bank and Trans-Fast, but more importantly, to all our customers. Together we bring fast and reliable money transfer services to more Kenyans," said ABC Bank Group Business General Manager, Peter Kinyanjui, adding that the introduction of Trans-Fast is part of ABC Bank’s strategy for Diaspora customer acquisition and also appropriately caters for local businesses dealing with international clients.

“Kenya is an important market for inward remittances as well as growing potential for outward remittances. Kenyans working force is spread world across and Trans-Fast is well placed to cater to them across the globe”, said Samir Vidhate, Trans-Fast Director, Asia & Africa.Trans-Fast, which has over 25 years in international money transfer service, enables customers to send money via its E-Commerce platform, TRANSFAST.com, Mobile App and in person at agent locations. Money can be deposited directly into recipients’ bank accounts, or they can pick up cash in person. Vidhate added that this is the beginning of a very important business relationship between two organizations that aim to serve Kenyan Diaspora across the globe. He went on to note that ABC is a highly reputed, technology oriented bank in Kenya and Trans-Fast is one of the very few remittance

companies offering wide range of remittance products complimented by multiple channel of origination, in addition to ‘cash 2 cash’ and ‘cash 2 bank’ account. Trans-Fast also offers, online origination via its e-commerce platform, and with this agreement, it is also offering its payout network in many countries, which includes Cash and Bank product. ABC Bank also recently signed a similar agreement with international money transfer service, MoneyGram. Customers can access the service in all ABC Bank branches country wide.

ABC Bank & East Africa Exchange Sign Warehouse Receipting AgreementAccess to loans and grants has now been made easier to grain farmers and traders. An agreement between the East Africa Exchange (EAX) and ABC Bank allows farmers to borrow against their projected harvest. This will also enable farmers protect their produce against storage-related damage and negotiate for better prices.With warehouse receipt finance, a farmer or trader will deliver his produce to a warehouse that has been approved by the bank. The bank will then issue a receipt vouching for the quantity and quality of produce being stored and take the receipt as collateral against which they provide financing to the farmer or trader.Through the deal, ABC Bank will provide finance for electronic warehouse receipts to grain farmers and traders supported by EAX; provide clearing and settlement services integrated with the national payment systems and mobile banking solutions.“ABC Bank is committed to providing customized financial solutions to small and medium enterprises, including agribusinesses,” said ABC Bank Group Managing Director, Shamaz Savani, noting that agriculture is a key economic pillar that ought to be supported through financial partnerships to ensure the country attains food security to support the growing population. Speaking at the event, East Africa Exchange Managing Partner Dr. Jendayi Frazer reaffirmed the Exchange’s commitment to the East African Market, “We are currently trading grains like maize and beans but going forward we will get into cash crops and soon minerals.”

EAX is a commodity exchange that aims to increase regional market efficiency and give the growing population, particularly smallholder farmers, better access to commercial markets, and link them to agricultural and financial markets so that they can get competitive pricing for crops and access to finance. “Grain markets in Africa generally suffer from a range of constraints. Smallholder farmers are particularly affected owing to their vulnerability to price fluctuations and their weak bargaining position; with warehouse financing solutions like this, they will now be at a vantage point to bargain for better prices for their produce, thereby enhancing their capacity to produce more, create employment and contribute more to economic development,” added Savani.“The key advantage of a warehouse receipt is it resolves a whole series of problems, including protecting the traders from losing their produce in their own storage before reaching the market, and it is also a great way of freeing up financing for the farmer,” said Constantine Kandie, Kenya Director for EAX.

ABC Bank Stakes Claim on Diaspora Remittances with TRANS-FAST Deal

ABC Bank Group Managing Director, Shamaz Savani with EAX Board Chair Dr. Jendayi Frazer, during the signing of the partnership


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Eng. John Olum Moving WRMA From Strength to Strength

As Donald McGannon said, “Leadership is an action, not a position.” These are some of the words that can describe Eng. John Philip Olum’s leadership style at the helm of Kenya’s Water Resource Management body.

Eng. Olum believes that leadership is about building confidence with the people that you work with, encouraging openness and free

dialogue in order for teamwork to thrive. His words echo those of Jim Rohn, “The challenge of leadership is to be strong but not rude; be kind, but not weak; be bold, but not a bully; be humble, but not timid; be proud, but not arrogant; have humor, but without folly.”A civil engineer graduate of the University of Nairobi class of 1978, and having furthered his studies in Britain in 1981, Olum fits just perfectly into the seat of CEO at WRMA. Eng. John P. Olum is the Chief Executive Officer at WRMA, now serving his second tenure at the Authority having turned around the State Corporation to have notable achievements.

The Water Resources Management Authority is a key State Corporation under the Ministry of Environment, Water and Natural Resources.WRMA was established as an institution through a gazette notice No. 8140 of 14thNovember 2003 pursuant to the Water Act (2002) and was operationalized in July 2005. The Authority is the lead agency in the management of water resources in the country and its overall development objective is to ensure rational, effective management of the water resources and equitable access for the various competing needs.

WRMA operates in an environment where a number of stakeholders from other government institutions, the general public and private partners are directly or indirectly involved in activities which affect water resources. As the lead agency for water

resources management, WRMA has to ensure that actions by all parties are well coordinated and contribute positively towards sustainable management of water resources. Water is an essential component of every country’s economy and quality of life. As the Country continues to grow, so does its demand; but supplies of water are limited, accordingly WRMA is mandated through delegated authority on behalf of the National Government to safeguard the right to clean water by overseeing the proper water resources management and regulation in order to ensure enough water for everyone–now and in the future.

The economic and social developments anticipated by Vision 2030 will put more demand on water resources in terms of quantity and quality. WRMA’s role, as the Lead Agency in Water Resources Management, is therefore crucial in enabling the delivery of the Vision 2030 development agenda.

Water resources management has continued to attract more attention nationally and internationally not only because it is essential for basic human needs but also because of its use in production. Globally, best practices in managing Water Resources are based on river basin drainage system. It is for this reason that WRMA has embraced the Integrated Water Resources Management (IWRM) principles managing its water resources along major river drainage systems as opposed to County boundaries which are administrative based. It is for this reason that WRMA has delineated the country into six catchment areas with its operations decentralized into 6 major catchments. Using this approach the Authority has moved closer to the people

through its 6 regional offices and a further 26 sub-regional offices. The public is therefore encouraged to visit their nearest WRMA office whenever they have issues related to management of water resources. As a fundamental requirement, WRMA through its 6 regions has managed to establish the preliminary water balance to enable it to manage and account for water resources effectively. The water balance ideally compares the available water against the demand and establishes areas with deficit or surplus, which is vital for realistic equitable allocation. WRMA received its ISO Certificate in 2008 and was awarded ISO 9001:2008. The vision of the Water Resources Management Authority is to be a global player in Water Resources Regulation and Management.

WRMA’s MandateThe Water Act, 2002 created the Water Resources Management Authority (WRMA) as a semi-autonomous government institution mandated to manage water resources with specific functions and responsibilities. The Authority’s is the Lead Agency in the management of water resources in the country.

The Water Act, 2002 confers the following powers and functions to the Authority:

a) To develop principles, guidelines and procedures for the allocation of water resources; b) To monitor, and from time to time re-assess, the national water resources management strategy; c) To receive and determine applications for permits for water use; d) To monitor and enforce conditions attached to permits for water use;

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e) To regulate and protect water resources quality from adverse impacts; f) To manage and protect water catchments; g) In accordance with guidelines in the national water resources management strategy, to determine charges to be imposed for the use of water from any water resource; h) To gather and maintain information on water resources and from time to time publish forecasts, projections and information on water resources; i) To liaise with other bodies for the better regulation and management of water resources; j) To advise the Cabinet Secretary with respect to water resources regulation and management

In accordance with guidelines in the National Water Resources Management Strategy, (2010-2016), the above functions entail:

1. Planning, management, protection and conservation of water resources 2. Planning, allocation, apportionment, assessment and monitoring of water resources 3. Issuance of water permits 4. Water rights and enforcement of permit conditions 5. Regulation of conservation and abstraction structures 6. Catchment and water quality management 7. Regulation and control of water use 8. Coordination of Integrated Water Resource Management (IWRM) Plan

The Water Resources and Management Authority’s Strategic Objectives are as follows:

• Strengthen monitoring networks to enhance data collection and improve information management systems• Improve the use of water resources management tools for effective water resources planning and allocation• Strengthen stakeholder collaboration to enhance water storage and adaptation to climate change impacts• Strengthen use of water resources management tools and collaboration for effective catchment protection and conservation• Build Staff capacity and improve working environment• Enhance Resource mobilization and effective use of finances

Overlapping mandates of the National Government and the County Governments is an issue that WRMA is tackling. WRMA is therefore developing a comprehensive Capacity Building program for the County representatives that will tackle the Mandate issues, amongst other training needs. WRMA has made key strides since its inception and since Eng. Olum took over the leadership at the organization. Some of these include enhancing the management structure and streamlining the overall operations of the organization which as a result has brought an improvement in the organization’s systems.WRMA is currently reviewing its 2012-2017 Strategic Plan with the aim of addressing some of the challenges facing the State Corporation.

As Eng. Olum notes, “Water Resource Management cannot be a one man affair; you have to work with people on the ground. WRMA works with both local and international partners. Some of the international partners include the World Bank, GIZ, Government of Sweden, JICA, the British High Commission, and Embassy of the Netherlands, among others. Locally WRMA partners majorly with

state corporations within the water sector. These include the Water Board, Kenya Forest Service, National Environment Management Authority (NEMA), Athi Water Services Board, Coastal Water Services Board, just to mention but a few. Eng. Olum notes that WRMA is working towards becoming a global player, “We have a Constitutional mandate and a strategic plan which is under review and we do hope that using both we will put in place all the necessary ingredients to become a global player in Water Resource Management. We want to develop human capacity, reinstall our engines and measuring equipment.”In his parting shot to Kenyans, the CEO urges all and sundry to support and embrace water resource management. “We are all responsible and we should all participate. Be responsible enough not to pollute the environment,” urges Eng. Olum.

A leader is a dealer in hope and as Nelson Mandela once said, “A leader is like a shepherd. He stays behind the flock, letting the most nimble go out ahead, whereupon the others follow, not realizing that all along they are being directed from behind.” Eng. John Philip Olum is a man whose mark at

governments and other stakeholders in the management of water resources in their respective catchment areas. The Program will allow for continued interaction with the County Government through the water resources association framework which is river basin based and County domicile

WRMA’S TOP 3:WRMA’s top 3 in Management are therefore the Chief Executive Officer: Eng Joseph Olum, The Finance and Administrative Manager: Mr James Ambuso, and the Technical Co-ordination Manager, Eng. Joseph Kinyua.

The Finance and Administrative Manager

Mr James Ambuso

The initial stages , Wrma was an institution which lacked presence within the water sector It merely had a headquarters office, operating at a National office from Nairobi and was non-existent within some regions and sub regions. Over the years WRMA has strengthened institutionally by decentralizing its functions and has since established in addition to the national office, 6 regional offices through which it executes its functions. These are Lake Victoria South (Kisumu), Lake Victoria North (Kakamega), the Rift Valley (Nakuru), Ewaso Ng’iro North (Nanyuki), Tana (Embu) and Athi Catchment areas (Machakos).

Each catchment area transects county boundaries. WRMA has therefore further decentralized the sub-regional level to establish 26 sub-regional offices nationally to enhance access to services to the local communities.

WRMA uses a participatory approach in managing the water resources. Other legal institutions supporting management of water resources are 6 Catchment Area Advisory Committees (CAACs) uniquely appointed for the regional offices. At the sub-regional level, Water Resources Users Associations (WRUAs) have been formed in the sub-catchments for management of water resources at the

the Water Resource Management Authority is undoubtly one that cannot be ignored. He has moved the Parastatal from strength to strength and it is no wonder that he has such an enthusiastic team. Beth Revis noted that, “A leader is someone willing to give his strength to others so that they may have the strength to stand on their own.”

THE AUTHORITY’S LEADERSHIP STRUCTUREIn term of operations WRMA has two major components namely Technical, and Finance and Administration departments which oversee the implementation of the functions through the Regional and Sub-Regional Offices. The institution is headed by a Governing Board of Directors comprised of a Chairman who is appointed by the President. The Board of directors’ composition comprises ten members who are appointed by the Minister in charge of Water Affairs.The Chief Executive Officer is the Principal Officer of the Authority, who subject to the directions of the Governing Board is responsible for the management of the affairs of the institution.

The Board of directors at WRMA also recognizes the cross-cutting nature of water resources and has provided through the WRMA’s Strategic Plan, opportunities for stakeholder participation both at regional and national levels. In this context, the Board is ensuring that WRMA has the good will and environment conducive for management of water resources. The participation anticipated from the public by the Board is not only with regard to water use but also protection of the resources as well as complying with regulations to ensure sustainability in water resources management. WRMA’s Board of Directors takes into cognizance that the Constitution of Kenya 2010 is operational and the Devolved systems of governance also have a role to play in Water Resources Management.

It is WRMA’s role as a lead agent of the National Government to undertake capacity building and technical assistance to the counties across the country. WRMA as a State Organ shall ensure reasonable access to its services in all parts of the Republic through continued capacity development and involvement of Water Resources Users’ Associations (WRUAs). The Regional and Sub Regional offices will play a critical role in this.

WRMA’s is designing a comprehensive Capacity building program, that will guide County

grass roots level and resolving water- related conflicts.

Other legal institutions supporting management of water resources are 6 Catchment Area Advisory Committees (CAACs) uniquely appointed for the regional offices. At the sub-regional level, Water Resources Users Associations (WRUAs) have been formed in the sub-catchments for management of water resources at the grass roots level and resolving water- related conflicts.

WRMA Regional and Sub Regional Offices

Some of WRMA’s Recent Achievements can be seen here below:

• WRMA has facilitated the formation of 545 Water Resource Users Associations (WRUAs) country wide. (These are our stakeholders at the grass roots level )• The Authoritys is Currently reviewing 6 Catchment Management Strategies to guide management and development of water resources in the regions; the CMSs are being implemented through Sub Catchment Management Plans and Water Allocation Plans by the WRUA’s • We have Rationalized and automated Water Resources Monitoring networks to ensure efficient and reliable data . • The Institution has developed a Permit Database Management system and decentralized to sub-regional level• We have put in place Effluent Discharge Control mechanism to ensure compliance• WRMA has Developed a framework for engagement with the County Governments. We are in the process of Organising a comprehenive Capacity Building exercise for the County officials.• Rehabilitation of 600 hydro-


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Headquarters of Water Resources Management Authority- NHIF Building 9th Floor Wing B

P. O. Box 45250 - 00100, Nairobi, KenyaEmail: [email protected]: +254-20-2729946 / 2729048 / 9Fax: +254-20-2729950

meteorological stations-where a total of 640 stations have been rehabilitated to date is also an achievement worth mentioning.• Ground Water hydro-geological mapping in Turkana and Marsabit Counties, is an achievement for the Authority especially since the Groundwater hydro-geological mapping in Turkana has been completed using WATEX system technology with support from UNESCO.

• Formulation and implementation of its Strategic plan (2012-2017) is an exercise that has allowed for Strategic planning. Within this plan the organisation is committed to realise major milestones that will contribute significantly to the realisation of Kenya’s Vision 2030 in the water as well as other sectors.• The Authority has constructed 17 new offices at both regional and sub-regional level to improve the work environment of staff.

OUR APPROACH TO WATER RESOURCES MANAGEMENTThe water sector has undergone tremendous reforms since the adoption of the National policy on Water Resources Development and Management of 1999. These reforms were geared towards improved water and sanitation services provision, sustainable use, control and management of water resources. As part of the reform process, Kenya had to look outward for the best practices globally and domesticate them. The overall responsibility of managing water resources and regulating water resource-use is therefore vested in WRMA through the Water Act, 2002.Kenya is a signatory to the Dublin principles that sets out the best practices in Managing Water Resources. These are:

1. Water is a finite, vulnerable and an essential resource which should be managed in an integrated manner. In implementing this principle, WRMA has adopted the River Basin approach to managing water resources;

2. Water resources development and management should be based on a participatory approach, involving all relevant stakeholders.In this regard, the Authority works harmoniously with the Water Resource Users’ Association (WRUAs), Catchment Areas Advisory Committees (CAACs) and the people of Kenya through Public Consultations.

3. Women play a central role in the provision, management and safeguarding of water.This has been mainstreamed constitutionally through requirement for all State organs to address the needs of vulnerable groups within society, including women and for the State to enact and implement legislation to fulfill its international obligations in respect of human rights and fundamental freedoms.

4. Water has an economic value and should be recognized as an economic good, taking into account affordability and equity criteria.

Under its mandate to determine fees for water use, WRMA has set tariffs payable for abstraction permits and is also pursuing the Polluter pays principle in collaboration with other authorities.

River drainage Basins:- This argument is based on the Trans County nature of water catchment areas, aquifers and the resource flow patterns

Ownership of Water ResourcesThe Constitution of Kenya 2010 has in Article 260 defined land to include (b) any body of water on or under the surface, (c) Marine water in the territorial sea and the exclusive economic zone. Article 62 (1) defines the water bodies as described above as public land. Article 62 (3) provides that the public land shall vest in and be held by the National Government in trust for the people of Kenya. Water resources, therefore, belong to the people of Kenya irrespective of where they are.

Since the promulgation of the Constitution, some County Governments have been asserting that they will not allow their water resources to be used by other County Governments free of charge. This flies in the face of the Constitutional provision. Water resources belong to the people of Kenya and not the Government The Constitution states that “every person has the right to clean and safe water in adequate quantities”. This does not just apply to water in the pipe. Those people, who for now are not served by an organized water supply scheme, cannot be excluded from enjoying this right. Water resources in the rivers and aquifers should be available to these unserved populations. To ensure orderly delivery of this right, the Constitution has distributed water resources functions to the National Government

Where does Water Resources come from?The hydrologic cycle teaches us that water resources exist in three forms. These three forms are liquid (rainfall, surface water and ground water), solid (in form of ice, snow, clouds) and gases (in form of water vapour). The cyclic transformation of water resources into these forms continues through the year. What we generally call seasons are therefore defined by the presence of these different forms of water at different times of the year and at different locations.

The diagram below explains this.

The Hydrologic CycleWater resources therefore, do not emanate from anywhere (plains, mountains, County or Country). They only pass through particular areas at different times of the year and in different forms, in liquid form, we identify it as rainfall or as surface water running along a water course. This is the form which elicits a lot of emotions when it comes to use, sharing and ‘ownership’. It is the one that has been subject to legislation to ensure sustainable use. The river may originate from a river source but the water does not come from there. It is present in the hydrologic cycle.

Given that the availability of water resources varies in time and space, and that we are also faced with growing water demands to meet our development targets as contained in the Vision 2030, effective regulation has never been more urgent. Sustainable water use therefore becomes central to sustainable development. Adherence to the rule of law is therefore a must. Due process of attaining water use rights must therefore apply to all


FEATURES


WRMA Key Activities in 2015

Some of the functions have been: The Conference on Opportunities for Growth and Partnerships in Water Resources

(Mombasa), The Launch of the Athi River Restoration Programme and fourteen falls clean up (Thika, Fourteen Falls site) The Catchment Rehabilitation Day (Lamu).

The Conference on Opportunities for Growth and Partnerships in Water Resources held in February 2015, Mombasa. Based on the need to advance WRMA’s capacity in delivering the mandates for which it was created under the Water Act, 2002, WRMA held the conference in Mombasa with an aim to position water resources as a key driver in socio economic development and showcase opportunities for sustainable growth in water resources management. As the Lead Agency in managing water resources nationally, WRMA purposed to bring together stakeholders in the water sector with a view of exploring available options for collaboration and partnerships. The theme of the Conference was, ‘Positioning Water Resources as a key driver in Socio-economic Development.’The conference on opportunities for growth and partnerships in water resources highlighted the following WRMA priority areas with focus on investment opportunities;

• Establishment of water resource monitoring networks.

• Development of water allocation plans• Construction of water storage

structures and adaptation to climate change impacts.

• Catchment protection and conservation• Human resource capacity and

Institutional development• Enforcement of Water Resources

Management Rules, 2007. • Compliance to permit conditions

e.g water use fee payments• Development of sub-catchment

management plans.

The CEO’S Message at the ConferenceThe CEO also highlighted the legislative background under which the Authority was created; noting that WRMA was established under the Water Act, 2002 but was launched and operationalized in July 2005 with the vision to be a global player in water resources regulation and management. The CEO broadly discussed the powers and functions of the Authority including:

• To ensure protection of water quality from adverse effects;

• Manage protects and conserves national water catchments;

• liaise with stakeholders for better management and allocation of water resources

He further went on to emphasis that WRMA aims to achieve its mandates by forging effective “partnerships”, which is the key theme of the conference.The CEO was of the view that our country does not always have sufficient water to drive its economic development. There is, therefore, need to explore all available options in order to increase the amount of water available for all the different uses”

PS Message / CS MessageThe PS observed that Water Conservation is key to WRMA’s mandate, and that Water conflicts between pastoralists downstream and farmers upstream should be mitigated by WRMA through effective management of

water resources. The consequence of having limited water resources has resulted in not only the loss of life for man and livestock, but also negative environmental impacts as well as displacement of populations in various areas. Therefore, the importance of having regulated and properly managed usage of water resources cannot be over emphasized. We should not be the generation that destroyed what has been preserved.

Message from the Cabinet Secretary:The Cabinet Secretary for the Ministry of Environment Water and Natural Resources, Prof. Judi Wakhungu, message at the conference, read by the Principal Secretary to the State Department of Water was a commendation to WRMA’s initiative on ensuring that stakeholders are informed and briefed on performance and resource gaps that exist to allow WRMA to fulfill its made in water resources management;The CS’s expressed that the promulgation of the Constitution of Kenya 2010 saw with it the introduction of the devolved Government system. Water is both a social right and economic right. This Bill of Rights under the Constitution of Kenya guarantees to every citizen, the right to Clean and safe water in adequate quantities.

• How do we deliver and sustain the right to Clean and safe water in adequate quantities?

WRMA started the year 2015 on a high note. The State Corporation has been running major activities that have already impacted the water resources sector. The first quarter of the year has been busy for WRMA. The Authority has held key events and launched programs some of which have been graced by the Cabinet Secretary, Ministry of Environment, Water and Natural Resources, Prof. Judi Wakhungu.

WRMA Board Director: Mr Munayi, WRMA CEO : Eng. Olum and Governor Laikipia County: Hon. Joshua Irungu at the WRMA Conference

The PS State Department of Water, MEWNR : Mr. James Teko Lopoyetum and the WRMA Board Chairman : Hon. Peter Kiilu at the Conference on Opportunities and Partnerships


• Will the right to clean and safe water in adequate quantities be a sustainable deliverable to future generations?

The effective regulation and management of water resources is therefore the only tool towards the delivery not only of clean and safe water but also of making water available in adequate quantities not only today but also for future generations.The government is calling upon all stakeholders and water users to support activities of the Water Resources Management Authority in order to realize sustainable and effective use of water resources.The constitution clearly spells out the functions with regards to Water resources that are allocated to National and to County levels. WRMA’s functions as allocated to the National Government are;

1. Use of International Waters and water resources.

2. National Public Works. 3. Protection of the environment and

natural resources with a view to establishing a durable and sustainable system of development including in particular, water protection, securing sufficient residual water, hydraulic engineering and the safety of dams.

4. Disaster management.5. Capacity building and technical

assistance to the Counties.

It is therefore my appeal ladies and gentlemen, that the two levels of government ensure harmonious implementation of their respective roles in order to drive the country’s development agenda forward. I also call upon all development partners, funding agencies, donor groups, non-governmental organizations, financial institutions, state and non-state actors to support WRMA in the implementation of water resources management activities and thereby contribute to the economic growth of our nation as a whole .“

WRMA Launches its Performance Report 4: Water Resources Management Authority reports to the public, the delivery of its mandate through the publication of its Performance Report. The Latest contains, WRMA’s performance for the two year period: (FY 2012-2013 and 2013- 2014) was objectively assessed and reported to stakeholders at the conference . The Authority has consistently performed since its operationalization in 2005, and the Performance report is

available to the public. Four major areas of Water Resource Management that showed improvement included:

• Regulation of water resources• Conservation and protection

of water resources • Water related risk reduction • Adaptation to climate change

Athi River Restoration Program Launched on March 9th 2015WRMA on 9th March 2015 launched a multi-million Athi River Rehabilitation Program dubbed “Athi River Restoration Program” under the theme “A clean Athi River: My Life, My Responsibility” In Kiswahili: “Usafi wa Mto Athi: Uhai wangu, Jukumu Langu” at the Thika’s Fourteen Falls site to rid the river off pollution.The Programme’s effort is to restore the once beautiful and serene water falls that have now become an eyesore, thanks to various forms of pollution. This is as a result of unmanaged solid wastes, improper farming practices, inadequately treated industrial and county effluents, among others, that have largely contributed to the degradation of water quality in Athi River and more specifically at the Fourteen Falls.

Athi River Restoration Program In order to reverse the worrisome declining trend in the quality of the waters of Athi River, WRMA with its stakeholders will run the 5 year program. The Goal of the Program is to protect water resources from adverse impacts in collaboration with stakeholders for sustainable development.The key objectives of the ARRP are to:

• Ensure adequate water quality and quantity for basic human needs and ecological functions.

• Protect the water resources against pollution

• Collaborate with stakeholders on sanitation and solid waste management

• Enhance water protection capacity• In order to fully realize the above

goals, the Athi River Restoration Programme will be implemented by all the stakeholders. Public and Private sector institutions need to play a critical role in exhibiting social responsibility and good corporate citizenship

Message from, the WRMA Board Chairman, Hon. Peter Kiilu, EBS “The need for attitude change”Towards protection of the waters of the Athi River WRMA, has mobilized

communities of water users and riparian land owners for co-operative management, undertaken water quality and quantity monitoring, pollution surveys and compliance inspections as well as a river cleanup and awareness campaignThe major challenges in achieving effective water resources protection in the Athi Catch-ment Area has been: inadequate sense of responsibility from some key water users and service providers; and an attitude by the public that “the Government should do it all”. WRMA and its stakeholders have realized the complexity of issues affecting effective water resources protection. There is, therefore, need to heighten creation of awareness for attitude change and rally all to action for the common good, in order to achieve sustainable development for people and nature in accordance with the Constitu-tion of Kenya 2010.

Message from the Cabinet Secretary MEWNR: Prof Judi WakhunguPollution of the Athi River is on the rise. The CS has in recent times received numer-ous complaints from the public on the poor water quality which impacts negatively on humans and ecosystem health. The com-munities including the youth around the Fourteen Falls have lost their source of live-lihood as tourists no longer visit the site; fresh water fish have disappeared leaving only the burrowing mudfish while livestock no longer drink the smelly water. In the ear-lier days Fourteen Falls was a picturesque site where both local and international tourists including school parties visited to enjoy the scenery and ambient environment and picnic at the site. Sadly this is no longer possible.

The Fourteen Falls located in Kiambu County is on the Athi River downstream of the confluence of all tributaries draining Kiambu, Nairobi and Thika. The area is densely populated and has a lot of commercial, industrial, agricultural and informal sector activities. This has caused degradation of water resources and environment.

The Fourteen Falls site has been a marvel scenic site whose selling point was the serenity and majestic view that left visitors fascinated. Fast- forward to today, and the situation is a sharp contrast to what people have come to expect.But to get to the bottom of the problem, It is important to start the Restoration Program at the source of the river that creates the Falls.

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It is for this reason that the CS launched the Athi River Restoration Program through the Water Resources Management Authority (WRMA) to reverse the alarming situation regarding the Athi River.

WRMA Athi River Restoration Program (ARRP) Goals and Key Result AreasThe Athi River Restoration Program (ARRP) is an initiative of WRMA aimed at restoring the polluted water resources of the Athi Catchment Area. The goal of the program is to enhance the mandate of the Authority as provided under the Water Act 2002 in protecting water resources from adverse impacts, in collaboration with stakeholders for sustainable development.

Athi River is the second longest river in Kenya after the Tana, and traverses across the two major cities of Nairobi and Mombasa. Athi River contributes heavily to the existence of the Fourteen Falls. Due to its close proximity to the capital City of Nairobi, it used to receive numerous visitors mostly on weekends all-eager to sample the natural beauty of the Kenyan landscape. The number of visitors has reduced due to water quality degradation; hence the launch of the Program was done at the Fourteen Falls.

WRMA ARR Program has sub-programs with five (5) key result areas, namely:

1.Adequate water quality and quantity for basic human needs and ecological functions2.Protection of Water Resources Against Pollution3.Collaboration with stakeholders on sanitation and solid waste management4.Enhanced Water Protection Capacity5.Project Management

1.4 Program budgetThe program will be implemented in phases with the first five-year phase estimated to cost KES 2.5 billion.

Expected OutcomeA well conserved catchment with clean river water for people and nature.

Pollution of the Athi RiverPollution of the Athi River emanates from both point and non-point sources. The main point sources are partially treated or raw effluent from municipal sewage and industrial treatment facilities. Some of the major effluent dischargers are;

• Export Processing Zone Authority’s sewage treatment plant discharging its effluent into Athi River;• Nairobi City Water and Sewerage Company’s sewage treatment facilities at Ruai and Kariobangi discharging into Nairobi River;• Kiambu Water and Sewerage Company’s sewage treatment facility at Kiambu town discharge into Riara River.• Nairobi City Water and Sewerage Company’s sewage treatment facility at Kahawa West discharging into Kiu River.• Thika Water and Sewerage Company’s sewage treatment facility at Thika town discharging into Komu River.• Limuru Water and Sewerage Company’s sewage treatment facility at Limuru town discharging into Ithanji Stream.

ACTION TAKEN BY WRMA TO PROTECT WATER QUALITYDevelopment of Sub Catchment Management Plans (SCMPs) with WRUA’s WRMA has mobilized communities of water users and riparian land owners for

co-operative management of water re-sources.

A WRUA is a voluntary association that enters into an MOU with WRMA for implementation of specific integrated water resource management activities in their sub-catchment. The Athi Catchment Area has 122 WRUAs out of a potential of 310. WRMA continues to urge all water users to join WRUAs in order to enhance water resources protection.

Water quality and quantity monitoringWRMA through its sub-regional offices at Kiambu, Nairobi, Kibwezi, Loitokitok and Mombasa executes a water quality and quantity monitoring network involving routine flow measurement and sampling at designated points. The data collected is used for water allocation planning, enforcement and regulation.

Pollution surveys and compliance inspectionsPollution surveys are undertaken in response to any reports/complaints from the public. So far extensive surveys have been carried out on the Kiu River, Ruiru River and Nairobi River. The findings of the surveys inform decisions on compliance enforcement. WRMA will intensify surveillance and expedite legal action against institutions which do not take remedial action to control pollution.

National River Cleanup and Awareness CampaignWRMA with the support of the Cabinet Secretary, Ministry of Environment, Water and Natural Resources and other stakeholders initiated a nationwide river cleanup and awareness campaign. In the Athi River Catchment Area one cleanup was held at Githurai on Kiu River in 2014. More are planned for in the coming years.WRMA has continued to monitor the quality of water in Athi river within its respective Athi Catchment Area offices namely, Upper Athi , Nairobi, Middle Kibwezi and Coastal sub regional offices. Monitoring for compliance of effluent discharge was carried out on 25th March 2015, at Nairobi City and Sewerage company, Dandora estate treatment works and Kariobangi waste water treatment plant. The samples of the final effluent collected were taken for laboratory analysis to ascertain the quality of the final effluent.

Cleanup of Fourteen FallsThe program launch begun with meetings with stakeholders to jointly plan for awareness campaign and cleanup of Athi River at Fourteen Falls.

The CS MEWNR Prof. Judi Wakhungu, and the CEO, during a press conference at the Athi River Restoration Programme Launch of 9th March 2015, that was held at the Fourteen Falls site

The CS MEWNR Prof. Judi Wakhungu, the PS for Water MEWNR: Teko Lopoyetum, WRMA Board Chairman and WRMA Finance & Administration Manager at the Launch of the Program

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WRMA also emabarked on a Media Publicity campaign in launching the Program, with some Publicity aspects including the following

1. A 1 week Media campaign with various FM Radio stations2. Shooting a documentary to highlight the wanton pollution of Athi River3. Double page Newspaper supplement on the Standard Newspaper of 9th March 20154. Public Announcements were done prior to the event date and fliers were distributed 5. Exhibition stand display on the event date to sensitize the public on the consequence of pollution and show case WRMA’s Mandate6. A Cleanup of the river was undertaken and the Program Launched 7. Activities were publicized within press circles and Media invited to cover the Launch day.

Waste disposal The solid waste removed from the river is collected for disposal by the Kiambu County Government. WRMA has designed masonry waste bins to be erected at the site to ensure visitors to the site do not litter. The immediate outcome of the cleanup activ-ity has been a cleaner riparian at the falls site devoid of unsightly solid waste and garbage.

THE CATCHMENT REHABILITATION DAY 2015 HELD AT LAMU ISLAND ON APRIL 7TH 2015WRMA commemorates the catchment rehabilitation day, annually and this year, the WRMA governing Board identified in collaboration with the Lamu County Govern-ment and other state agencies including NMK, KFS to commemorate the Catchment Rehabilitation Day on 7th April, 2015 in Lamu focusing on the Shella-Kipunguani water catchment area Sand dunes plight.

The Shella- Kipungani water catchment area is located in Amu Island, Lamu County. It consists of a continuous ridge of sand dunes that act like a sponge capable of storing rain water. This storage provides the main source of fresh water for the Island. The water retained in the sand dunes is the only fresh water source for the Island and the neighbouring Manda Island. The water is drawn from about 30 wells managed by Lamu Water and Sewerage Company (LAWASCO) situated in the Shella well field about 2 km south west of Lamu town.

The fresh water availability together with rich cultural and historical background made Lamu town to be listed as a World Heritage Site in 2004 and this has made it an international tourist destination.

Factors affecting the fresh Water Sup-ply and reserves in LamuThe fresh water reserves in Lamu are under threat. Since the declaration of Lamu town as a heritage site, it has attracted a lot of interest from foreigners who are much aware of the developmental potential of the island than the locals. This has led to:

• Foreigners buying property and developing palatial mansions and prestigious hotels subsequently interfering with the sand dunes. • Over abstraction of water such as in the case of rampant drilling of shallow wells above the safe yield for additional water supply, has greatly affected fresh water replenishment and significantly reduced the water catchment size.• Vegetation cover has been cleared to pave way for construction of beach hotels and this has led to soil erosion into the ocean, adversely affecting the dune formation process. • Overgrazing, farming activities and harvesting of palm trees for local brews has left the sand bare making it easier to lose rain water through evaporation as sand becomes very hot.• Salt Water intrusion which has led to depletion of fresh ground water resources.• Contamination of water sources by developers and the local communities.• Due to the rampant population growth and development of infrastructure within the water catchment area, the natural process of sand dune formation has been affected. This has significantly reduced the size of the fresh water catchment. In addition to that, over abstraction of water such as in the case of rampant drilling of shallow wells for additional water supply, has greatly affected fresh water replenishment. • In Lamu, the vegetated sand dunes act as filters and storage for water. However, dune formations are fragile ecosystems meaning that small changes induced by human activities or natural causes can have a great effect on the coastal environment.

The sand dunes usually replenish fresh ground water by forming a membrane

over the underlying ocean water resources. If the sand dunes reduce in size, intrusion of salt water into the fresh water reserves occurs causing the mixing of saline water and fresh water. This eventually reduces fresh water availability within the affected sand dune. It can be noted that the once fresh water wells around the Lamu town, Shella village and Manda Island are now facing salt water intrusion caused by over abstraction. The locals around Shella village no longer depend on the once fresh water wells. Therefore the importance of sand dunes cannot be over emphasized as they act as a buffer of fresh water from saline intrusion, in addition to providing the fresh water source on the island. It is clear that the nature of the sand dunes is quite vulnerable to disturbances, and thus needs protection.

Activities undertaken by WRMA towards Wa-ter Conservation efforts in LamuThe encroachment of the water catchment area and the threatened sand dunes in Amu led to a public outcry against encroachment from environmental groups and other stakeholders in Lamu such as the Council of Elders, Lamu Kaa Chonjo group and others.

This caught the attention of WRMA and the National Museums of Kenya, in recognition of the mandate of the two institutions as stipulated in the Water Act 2002 and National Museums and Heritage Act 2006, who have forged an alliance to conserve and protect the Sand dunes by signing of an MOU to collaborate in the Gazettement and thus the conservation and protection of the Lamu Water catchment Area.

The Governor-Lamu County, unveiling the Plaque as the NLC Chairman, and the WRMA Board of directors look on, during the Launch of the Protection and Conservation of the Coastal Sand Dunes on

April 7th 2015 at Lamu Island, Shella Beach



Due to the imminent threat to the survival of the fresh water source of Lamu, it is imperative that the entire Lamu Catchment Area comprised of the sand dune area of 19.2 km2 be declared and Gazetted as a ‘groundwater conservation area.’ It is clear that the nature of the sand dunes are quite vulnerable to disturbances including over abstraction of the groundwater, encroachment by settling on the dunes or farming and removal of vegetation cover.

The Water Resources Management Authority (WRMA) in pursuant of chapter 17 of the Water Act 2002 intends to pursue the Gazettement and consequent declaration of Lamu catchment area as a protected area. Gazetting the Lamu Catchment Area will allow the Authority to regulate and prohibit encroachment activities within the protected catchment area and its water resources. In 2008, a stop order was issued by WRMA-CEO against any activity within the water catchment area as proscribed in the Water Resource Management rules 2007. This step was received with a lot of resistance especially by private developers who lay claim to land that formed part of the protected catchment area.

In the same year, WRMA undertook a land survey within the Shella-Kipungani water catchment area and it was discovered that 117 plots of land by private developers were found to be wholly within this water catchment area of the sand dunes while 35 plots were partially found to be within the Catchment area. Having such developments within a water catchment area heavily affects fresh water recharge which eventually leads to reduction of fresh water availability.

From 2nd Right, Dr. Mohammed Swazuri, Chairman NLC, Hon. Peter Kiilu,WRMA Chairman, and Hon. Issa Timamy, Governor, Lamu County at the Shella Sand

dunes during the tree planting and sand dune tour

Build up activities undertaken by WRMA lead-ing to the Catchment Rehabilitation Day

1.Series of consultative meetings with county and National government have been held. different institutions

in Lamu County have been held comprising of: Governor, CEC-Lands, Physical Planning, Infrastructure, Urban Development, Water and Natural Resources, County Commissioner, National Museums of Kenya-Lamu, Lamu Council of Elders, NEMA, Amu WRUA, 2.Demarcation of the boundaries of the 16.5 Km2 water catchment area by pegging/beaconing. WRMA, Lamu County, NMK, WRUA and other stakeholders undertook marking and pegging in February and March 2015. The following have been achieved:•106 out of the targeted 200 pegs have been successfully done 3.Public Baraza’s: (Shella, Makafuni, Rangoni, Matodoni, Kipungani and Kizingoni) to mobilize & sensitize on water catchment conservation & rehabilitation day. 4.Media campaign and dissemination of Publicity materials, and branded clothing5.Clean up exercise in the Lamu town6.Tree planting campaign in Shella water catchment area7.Public address by Amu WRUA, WRMA, Lamu Governor & selected stakeholders8.Public mobilization and awareness creation on the Gazettement of the Shella-Kipungani water catchment.9.Launch of the conservation and protection of the Coastal sand dunes event on 7th April 2015

Guest Profile:His Excellency the Governor of Lamu, Hon. Issa Abdalla Timamy was the host while the Cabinet Secretary for Environment, Water and Natural Resources, Prof. Judy Wakhungu was the Guest of Honour. In attendance were the NLC Chairman Dr. Swazuri and Mr. Jakaiti representing the CS MEWNR. Other Key invited guests were: The Cabinet Secretary: Ministry of Lands, Housing and Urban Development, The Cabinet Secretary: Ministry of Sports, Culture and the Arts, The PS State Department of Water, MEWNR, the PS State Department of Environment, MEWNR .amongst other top officials.

The Catchment Rehabilitation Day aimed at creating awareness and promoting the protection and conservation of the country’s water catchment areas. It is for that reason that the 2015 catchment rehabilitation day theme was Water Resource Partnerships in the Protection of Coastal Sand dunes for Water Conservation” “Ushirikiano wa rasili maji katika ulinzi wa

milima ya mchanga katika uhifadhi wa maji.”

The exercise was a demonstration of a national effort to restore all the threatened water catchment areas in the republic of Kenya. Lamu Sand dunes like all other water catchment areas are under immense pressure due to encroachment within the water catchment area which has adversely affected the dune formation process. WRMA has begun the processes of sensitization of stakeholders and is working closely with the county government and other state agencies to secure the threatened water catchment areas.

From Right, WRMA Chairman Hon. Peter Kiilu, Lamu Governor, Hon. Issa Timamy and Mr. David Jakaiti (Director of Administration (MEWNR)

Representative of the CS MEWNR at the Celebrations.

Message from Prof. Judi Wakhungu, Cabinet Secretary, Ministry of Environment, Water and Natural ResourcesProf Judi Wakhungu the CS MEWNR noted that Kenyan water catchments have been increasingly degraded due to increased encroachment into forested, marginal and fragile areas, such as wetlands and sand dunes. She also noted that The Constitution of Kenya 2010 recognized water as a human right, that is, the right to water with regards to its availability, quality and accessibility is guaranteed. She emphasized on the fact that the Ministry of

From Right The WRMA Board Chairman, Hon. Peter Kiilu, The CS MEWNR Representative Mr Jakaiti, The Governor, Lamu County: Hon Issa Timamy, NLC Chairman : Dr Swazuri, and WRMA’s invited guests cleaning up the Lamu Town, during the Catchment Rehabilitation Day 2015 Celebrations held at Lamu Island


Environment, Water and Natural Resources, through WRMA has an obligation to provide, protect and fulfill that right.

In conclusion she commended WRMA for dedicating a day annually for catchment rehabilitation, a day aimed at promoting the protection of the country’s water catchments and reminding the public of the intrinsic linkage between catchments and their water sources.

Message from Hon. Issa Timamy, Governor, Lamu CountyHon. Issa Timamy noted that the County Government of Lamu was honored to host the 2015, WRMA Catchment Rehabilitation Day in Lamu. He went on to note that the Lamu County government and WRMA in conjunction with other stakeholders, have been at the fore front of creating awareness to the public on the plight of water catchment areas in addition to promoting the protection and conservation of the sand dunes.Hon. Timamy noted that the Lamu sand dunes in particular the Shella-Kipungani sand dunes are under immense pressure due to encroachment and over extraction.

According to Hon. Timamy, there have been several studies that have been conducted in the sand dune area, all of which were aimed at assessing the quality and quantity of the water aquifers located within the sand dune regime.Hon. Timamy stressed on the point that, in order to safeguard the habitation of the Lamu Island, the following recommendations need to be implemented,

1.An extended gazettement needs to be done to include the entre catchment zone covering an area of about 19.7 km2.2.Sensitization of the local community and the nation at large on the significance of the catchment area3.All stakeholders need to forge concerted efforts to conserve the entire water catchment area from encroachment.

In conclusion the Governor noted that the Lamu County Government will take the lead in championing the efforts to restore, protect and conserve all water catchment areas within the County of Lamu.

Message from Hon. Peter Kiilu, Chairman WRMA Governing BoardHon. Peter Kiilu noted that WRMA and its stakeholders are making a commitment

towards the protection and conservation of the Coastal sand dunes especially at the Lamu Area. According to Hon. Kiilu, in September 2008, a stop order was instituted by the WRMA CEO against any activity within the water catchment area as prescribed in Water Resource Management Rules of 2007.

Hon, Kiilu noted that the Ministry of Lands, Housing and Urban Development and the National Lands Commissions are committed to addressing the issue of the 117 plots of land that have been found within the protected area. He went on to note that WRMA has adopted a key principle of incorporating Water Resources Users Associations at the grass root level, which has seen the formation of Amu, Lake Kenyatta, Shakababo, Witu and Belebele Chomo WRUAS in the Lamu County.In conclusion Hon. Kiilu noted that WRMA has begun a sensitization process in conjunction with the Lamu County Government and other key Water Sector Stakeholders. The sensitization process, according to Hon Kiilu, will assist in the development of the draft Water Bill for the Lamu County which in turn will aid the process of gazetting the water catchment area for the protection of the sand dunes.

WAY FORWARDWRMA’S Continued efforts towards protection and conservation of the water catchment areaWRMA appeals for collaboration from stakeholders in rehabilitating the coastal water catchments by:

1.Planting the right species of vegetative cover along catchments areas.2.Prohibiting land activities on catchments areas which are likely to impact negatively on water resources e.g. constructing buildings along sand dunes, overgrazing, deforestation, planting non water friendly trees along the water course. 3.Exercising caution when purchasing and developing land along catchment areas; the foundation of such buildings is usually to be unstable and vulnerable to seeping water from the catchment.4.Constructing good quality septic tanks and exhausting them regularly to prevent ground water pollution.5.Joining and/or supporting Water Resources Users Association (WRUA) activities.

Stakeholder’s efforts towards protection and conservation of the water catchment area

Kenya Forest ServiceDuring the Catchment Rehabilitation Day celebrations, a ceremonial tree planting exercise took place at the Shella Beach Front. The trees and equipment were provided by Kenya Forest Service (KFS). The KFS institution will ensure that the trees that have been planted remain well kept so as to achieve maturity over the coming years. This will add to the vegetation cover at the beach front along the sand dunes and in turn will aid against sand erosion.

Gazettement of the Water Catchment Area by WRMA in conjunction with Ministry of Environment, Water and Natural Resources, County Government and National Museum of Kenya

The National Museums of Kenya (NMK) and WRMA in recognition of the mandate of the two institutions as stipulated in the Water Act 2002 and National Museums and Heritage Act 2006, have forged an alliance to conserve and protect the Sand Dunes by signing of an MOU to collaborate in the gazettement, conservation and protection of the Lamu Water catchment Area together with WRM activities in Lamu County.The NMK in conjunction with WRMA commissioned a ground water mapping study in October 2008 to map the water catchment and WRMA was invited to participate in it. The size established for conservation was 19,712,200m2 i.e. ≈1971 Ha. This has a stretch of 11 kilometres from Kizingoni to Shella along the southern Border. The exact area for demarcation will be verified and marked for conservation.Based on the findings of the mapping study;

1.The County government of Lamu suggests that gazettment of the sand dunes should be done to include in totality the catchment zone covering an area of 19.7km2.2.WRMA calls for revocation of all title deeds of the private developer’s plots in the soon to be gazetted Lamu Water Catchment Area.3.The Ministry of Environment, Water and Natural resources will fully support the gazettement process of the protected water catchment area in Lamu.

National Lands CommissionBased on the study findings that were done by WRMA in May 2010, it was noted that, the actual water Catchment area that needs to be protected was calculated to be approximately 16.5 square kilometers. 117 plots were found


to be wholly within this water catchment area of the sand dunes while 35 plots were partially found to be within the Catchment area. The exact area for demarcation will be verified and marked for conservation.

Dr. Mohammed Swazuri, the Chairman of The National Lands Commission noted that the title deeds to the private developers’ plots that were found to be within the Lamu Water Catchment Area will revoked as per The Constitution of Kenya. The National Lands Commission pledged its support to WRMA and the County Government of Lamu in the revocation of title deeds process.In a nutshell several outcomes will be

expected to pave the way forward:

•WRMA makes a commitment to the following:

• Opening offices in Lamu as affirmed by WRMA senior management

• Completion of pending works on pegging in conjunction with stakeholders

• Reviewing of SCMP of Amu WRUA, to incorporate the emerging issues and the new chapters in the WDC.

• Continued Stakeholder engagement , specifically with the County government and Shella leadership

• Continue to roll out the Catchment Management Plan for shella-kipungani

Sand dunes, which will give way to the gazettement process

• WRMA will forward all documents related to Gazettement to the National Land Commission and work with the necessary stakeholder in promoting the Gazettement of the area identified for groundwater protection and conservation.

• The NLC will facilitate the gazettement and revoking of existing titles• Kenya Forestry Services will continue to monitor the planted trees to ensure their survival, and other forestry activities to conserve the vegetation cover in the area.

Dr. Regina Kitiabi Kiti, DirectorA scholar of no mean repute. She brings experience from Academia to the board.

Hon. Peter L. N Kiilu, EBSBoard Chairman Water Resources Management Authority. Career Administrator and Civil Servant with an experience of many years.

Mr. Peter Karing’u, DirectorAn advocate of the high court with experience in various boards.

Mr. Stephen Simiyu Mutoro, DirectorA governance and rights crusader, brings private sector experience to the Board.

Mr. Lucas Obondo DirectorAn accomplished Economist with a clean record from Public Sector.

Hon. Grace M. Mwewa, OGW DirectorCareer Educationalist with roles of Special envoy in African and American Institutions

Hon. Jackson Mwalulu, DirectorA Communications expert with wide experience in governance issues

Mr. David Gichuhi, DirectorRepresentative, Inspector General of State Corporations. Career administrator specifically bringing oversight roles of Inspector General.

Eng. Philip J. Olum, HSCCEO WRMA and Secretary to the Board.A registered engineer holding and postgraduate qualifications with over 30 years’ experience in the Water Sector

Mr. Jeremiah Munai DirectorP.S. Representative, State Department of Enviroment and Natural Resources. Ministry of Environment, Water and Natural Resources

Mr. Chrispine Juma, DirectorP.S Representative State Department of Water. A career researcher and experienced public servant in Water Sector.

Mr. Moses Kanagi, DirectorP.S Representative, National Treasury. An Economist with over 20 years’ experience in Public Sector.


Ghana Delegation Learning How Kenya has Restructured its Youth Development Policies

PICTORIAL


Syvia Mochorwa, Head of PR KICC taking guests through during the expo

CS Ministry of East African Affairs, Commerce & Tourism, Phyllis Kandie Fred Simiyu, CEO KICC addressing the crowd during Kenya’s 1st Expo

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Teaching and Referral Hospital. Staffs were taken on training for renal dialysis services and the County procured dialysis machines in October 2014. This has considerably cut down the cost of cancer treatment for the people of Meru and beyond.

Another first feather on the cap of Meru County government is adoption of Fionet-a computer based solution that provides quality monitoring and evaluation, remote oversight and support supervision, remote training and quality control while simultaneously improving how health workers diagnose and treat diseases on the spot.

The county deployed a pilot test of Fionet to evaluate its feasibility to strengthen rapid test-based case management, referral systems and the capture, transmission and management data in HIV and malaria services with marked success. A decision was then taken to scale up the use of Fionet across the health facilities in the County.To further harness the potential of this luminary model in healthcare, we developed an Electronic Medical Record (EMR) system at our health facilities that feeds to the national database, which would integrate with reliable data captured by Fionet during

guided delivery of primary health services, thereby enabling seamless streaming of County health data into the national system.

This will provide a comprehensive, harmonized and state of the art health services to the people of Meru County by re-engineering health based workflows, data capture and management to become fully digitized, a move towards a paperless, efficient health services delivery system. It will also eradicate the menace of missing, incomplete, delayed or inaccurate information needed to inform healthcare management and spending. On the whole it will also offer a solution to the challenge of non-standardized, unsupervised healthcare services delivered by frontline healthcare workers.

Access to clean water both for domestic and farm use is crucial to our people. The County government is dedicated to ensuring water infrastructural connectivity across the county. We have partnered with the African Water Bank, a body that specializes in building 225,000 liters-capacity tanks using a very cost effective technology to ensure that dry areas are taken into account.Agriculture is a key driver in Meru County; we are therefore dedicated to creating a

Our Vision being ‘a united, prosperous, green, model County,’ we have embarked on a journey of inclusive

transformation of our County.

Infrastructure development is one of the key projects that we are undertaking. Meru was the first County to introduce the probase technology from Malaysia- on a pilot basis that is cost effective and last as long as normal bitumen road besides ensuring that County roads in every ward are graded and built.

Co-operatives are an important aspect in the growth and development of our counties. To streamline and enhance efficiency in our cooperative societies, Meru County became the pioneer county to enact the co-operatives Act 2014. The umbrella Meru County Coffee Millers Cooperative Union was thus formed and farmers enjoyed the fruits after proceeds rose to Ksh. 530 million.

The County government has taken upon itself to conduct spatial planning of all major towns in the county since land is a key factor. We have therefore facilitated the adjudication process leading to closure of a number of adjudication sections and successful issuance of over 10,000 title deeds. We have also combined efforts with the ICT Authority to ensure fiber connectivity in all major towns in the County. In realization of the fact that health drives wealth, we set out to improve services offered at Meru County

Message From The Governor Meru County

THE SUCCESSSTORY OF MERU COUNTY

The Kenya 2010 Constitution introduced the devolved governments which has seen transformation in our county and the lives of its people. Meru County has made tremendous achievements in infrastructure development and remarkable improvements of the foundation of economic and social well-being of the residents of Meru County.

Meru County government is adoption of Fionet-a computer based solution that provides quality monitoring and evaluation, remote oversight and support supervision, remote training and quality control while simultaneously improving how health workers diagnose and treat diseases on the spot.


Meru County introduces Meru Rugby Sevens

conducive and enabling environment for its advancement. This takes into account infrastructural development in the County. We have constructed modern horticulture and livestock markets in all the sub counties. We are also intervening in employing veterinary officers to extend free advisory to our livestock farmers, besides providing quality and affordable semen across the county. We are also encouraging farmers to diversify into other farming activities. Fish farming, for example is gradually gaining popularity in the County.

To address food security in the County, we procured 18,000 improved storage bags (PICS bags) for demonstrations on post-harvest management of pests without use of chemicals, for grain store. This translates to 400 PIC bags per ward. This has been coupled by procurement of 45 grain moisture meters. The moisture meter will be of great importance in training the farmers on

management of Aflatoxin in stored grain.

Every child has a right to Education; we have therefore embarked on a reconstruction of our pre-school classrooms to make them habitable and appealing to children so that they love the school experience from an early age. All wards now have at least 2 new modern ECDE classrooms and teachers employed by the County Government.

Meru County is now a sporting destination. With the newly reconstructed Kinoru stadium, Tusker FC adopted it as their official home. The stadium also hosted the famous Meru Sevens, further opening the ground to international limelight. The Talent Academy and the Meru Golf Club have also given a facelift to Meru as a new frontier of sports. All this sporting interventions bring not only glory, fame but also monetary boost to the economy of this great County. Meru County boasts in having the most competent work force.

A study conducted by the Public Service Commission in 2014 showed that Meru County has employed the most learned officers with 92 percent of the newly recruited officers being Masters Graduates.

The county has achieved gender partiality standing at 62 percent and 38 percent for female and male gender respectively.The County has taken a step further and cascaded performance contracting to the ward level; the same is happening in other departments as well as at the Sub- County level. This is in an effort to ensure effective and efficient service delivery to the people.Devolution as witnessed so far, will spur economic growth and development which will lead to better and productive lives for all Kenyans.


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The county has a population of 1,356,301 million people.The County’s Mission is ‘to facilitate sustainable development and

wealth creation in the County through commerce, technological innovations and industrialization that leverages on our skilled human resources, agriculture, wildlife, bio-diversity and cultural heritage.’The Core Values which are the County’s guiding principles are:

• Integrity: Honesty and sincerity are an integral part of our operations. We shall uphold these through strict adherence to the moral principles underlying all our policies.

• Transparency and Accountability: We shall always endeavour to be transparent,

answerable and liable at all times.

• Team work: We treat one another with respect and communicate openly. We create a workplace that fosters community, respects the uniqueness of each person, promotes employee participation to ensure their full contribution and appreciate the value of multiple perspectives and diverse expertise.

• Inclusiveness: In all our undertakings, we shall ensure inclusiveness; the county shall have people from diverse backgrounds or communities involved in the development. The county is learning-centred that value the perspectives and contributions of all people, and it incorporates the needs,

assets, and perspectives of communities into the design and implementation of county programs. All groups and members of the county shall be treated equally and without exception

• Innovativeness: We thrive on creativity and ingenuity. We seek the innovations and ideas that can bring a positive change to the basin. We value creativity that is focused, data-driven, and continuously-improving based on results.

• Hardworking: We shall be patriotic to the cause of the county and be guided by hardworking ethics in all our undertakings.

Infrastructure & AccessThe county infrastructure comprises of road network, airstrips, electricity, telecommunication, financial institutions, education facilities, health facilities, markets and housing.

Road Network, Airports and AirstripsThe county is well served with road network with most areas being accessible during the dry season. The county has 1,259.9 km of road network of which 225.7 km is bitumen, 266.7 km gravel and 767.5 km of earth surface. However during the rainy seasons, some sections of gravel and earth surface roads are impassable. The major tarmac roads in the county include: Embu-Meru -Maua; Meru - Nanyuki; Meru - Mikinduri; Meru- Githogo; and Meru-Ruiri -Isiolo roads. The county is served by one airstrip; Gaitu airstrip in Meru Central which has been improved to serve more flights.

Posts and Telecommunications: Post Offices, Mobile telephony,and Fixed Lines There are six post offices and four sub-post offices with numerous registered stamp vendors in the county. The six post offices are in Meru, Maua, Nkubu,

A Closer Look at Meru County

Meru County is located on the Eastern side of the Mt Kenya covering 6,936 square kilometers. It is strategically placed bordering Isiolo County to the North, Tharaka County to the South West, Nyeri County to the South West and Laikipia County to the West.

The president touring the probase road accompanied by Meru County Governor and Senator


Program (SMEP), Kenya Women Finance Trust (KWFT), Faulu Kenya among others. The Central Bank of Kenya has a currency centre in Meru town which acts as a banker to the commercial banks operating in the county.

Major insurance firms operating in the county includes APA Insurance, UAP Insurance, and CIC Insurance among others. There are several SACCOs whose membership range from farmers to salaried employees such as YETU Sacco, Meru farmers Sacco, Meru Teachers Sacco among other which offer credit services to the members.

Education Institutions: Primary/Secondary Schools, Polytechnics, Colleges, UniversitiesThere are 792 Early Childhood Development Centres (ECD), 647 primary schools and 192 secondary schools. The county has 15 education divisions and zones. The introduction of Constituency Development Fund has enabled the construction of various mixed day secondary schools. The University of Nairobi, Jomo Kenyatta University of Science and Technology, and Chuka University are the public universities with campuses within the county. Kenya Methodist University is the only fully pledged private university in the county. Other private universities such as Mount Kenya University and Nazarene University have campuses in the County. In addition there are two teacher training colleges namely Meru and Igoji Teachers Training Colleges. There are five technical institutes and various private

colleges most of them offering training in ICT.

Energy Access The main source of energy for cooking by household is wood fuel and charcoal which accounts for 86.1 per cent and 6.6 per cent respectively. The number of household connected to electricity is 13.6 per cent; those using paraffin are 4.5 per cent, gas 2.4 per cent, biogas 0.1 per cent and solar 6.6 per cent. Major public and private institutions are connected to the national grid but the major challenge for the county is how to connect the over 85 per cent households with electricity.

Markets and Urban CentresThere are five main urban centres and forty nine trading centres in the county. Meru Town, Nkubu, Laare, Timau and Maua are the major urban centres. Meru town is the largest in the county. All the trading centres are agricultural markets with all centres having two market days per week.

MERU, THE PILOT COUNTY IN PROBASE TECHNOLOGYUpon visiting Malaysia in 2013, just a few months after his election as Meru County Governor, Peter Munya signed a Ksh. 880 million loan with the Exim Bank of Malaysia to finance the upgrading of 50 km of road within the county. The loan, which will attract an annual interest rate of 3%, has a repayment period of 10 years.Kenya is the first Country to use the technology in East and Central Africa,

Timau, Muthara and Laare towns which offer mail services and parcel delivery among other services. Most private and public organisations have embraced ICT in the day to day operations. Private entrepreneurs have continued to set up cyber cafes in major towns and trading centres due to high demand for internet services among others. Most of the areas in the county are covered by mobile phone network with the coverage being 95 per cent. Areas without mobile network coverage are mainly areas of Tigania bordering Isiolo. Most of the community members rely on radio, Television and Newspapers as the major sources of information.

Financial Institutions: Banks, SACCOs and Micro Finance InstitutionsThe county has high agricultural potential which has attracted various commercial banks and other financial institutions. There are sixteen commercial banks, eight microfinance institutions, four village banks and a number of SACCOs. The strong presence of the various financial institutions indicates that the county has high potential for commercial services. The major commercial banks include Kenya Commercial Bank, National Bank of Kenya, Barclays Bank, Equity Bank, Cooperative Bank and Standard Chartered Bank. The various micro-finance institutions provide credit facilities to the small-scale enterprises. These include Small and Medium Enterprises

The Meru Coffee farmers have a reason to smile after the County Government announced a rise in coffee prices.


with Meru being the first county to venture into Probase Technology.

Probase Technology which is affordable, dust free and more durable compared to older methods was initiated in Malaysia and has been in existence for the last 13 years and Kenya is the 14th country to use this technology.

This modern technology is able to cut costs by more than 50% compared to other road construction methods. While the older technologies may cost between Ksh. 30 million to Ksh. 80 million per kilometer of road construction, Probase ranges between Ksh. 15 million to Ksh. 22 million depending on the area being tarmacked and with adequate maintenance the roads can last for up to 20 years.Meru County will use Probase technology to upgrade 5km of road in each of the nine constituencies within the county. The Malaysian Company spearheading the upgrade will maintain the pilot project in Meru County for five years without extra costs. The roads, according to the director of the contracting company Seow Cheng are made in five easy steps which include soil loosening, laying SH-85, soil hardener, spraying TX-85 water mixing, cambering and the final stage is compacting. Alongside the loan, the Governor also signed a Memorandum of Understanding that will help finance and tarmac the remaining 250km. Besides this, the county has also partnered with the World Bank to build the Eastern and Western bypass that will ease traffic jams occasioned by the increasing number of vehicles in Meru. The county seeks to finance construction of the Mikinduri –Kianjai road via Miathene at a cost of Ksh. 250 million. County Executive in charge of Roads, Transport and Infrastructure Newton Itobi, noted that road construction will open up more opportunities for the growth of the county and enhance mobility as well as economic growth.

Roads in Meru County which is largely an agricultural zone have been in need of repairs and better carpeting to ease the burden of getting agricultural commodities to the market. Repairs of these roads have been expensive but with the use of the Probase Technology, maintenance of the roads is now simpler with minimal activities which include patching any potholes or

depressions by mixing soil with TX-85 followed by sealing a layer of PB-65 soil sealant on the affected area. Minimal manpower of at least 3 workers and one truck for a maintenance team is needed.

The launch of this road project was attended by Baringo County Governor Cheboi Benjamin, Bomet Governor Isaac Ruto and Kakamega Governor Wycliffe Oparanya who supported the initiative. The Governors noted that the project is a requisite and clear example of what the County governments are capable of with many Governors watching closely the progress so that they can introduce the same technology to their respective counties.During his visit in Meru County the president H.E Hon Uhuru Kenyatta was impressed by the new and cheaper technology from Malaysia. Uhuru commended the Meru Governor for spearheading the construction of the road whose cost dropped from Ksh. 80million per km to Ksh.30 million.This project has attracted many including Kiambu County Governor William Kabogo, who visited Meru County to assess the modern technology in road construction. Kabogo noted that his government intended to use Probase technology to tarmac the access roads in Kiambu County.

How Probase Technology Works Probase Road System was launched in 1998 with the maiden installation at Nam Heng Estate in Malaysia and has been persistently transforming the living experience in estates and rural areas in the country since then.Today Probase is an authority in Soil Sealing Technology and has been constantly invited to participate and address road building seminars and conferences worldwide and

works in collaboration with Universiti Tun Hussein Onn a learning institution majoring with roads engineering technology.

The common methods of stabilizing soil include stabilization by compaction, mechanical stabilization or by the use of stabilizing additives like cement, lime, bitumen and many other stabilizers available in the market.

WATERPROOFINGSoil sealed with Proseal can effectively prevent water penetration compared to unsealed roads.

MAINTAINING THE STRENGTHThe non-water soluble layer of protection keeps the road dry. Test results show that the strength of the road is maintained even on heavy downpour.

EROSION FREERainwater and traffic can cause erosion of ± 75 mm per year without sealing. Proseal on the other hand prevents erosion; saving cost on resurfacing while protecting the environment.

Kenyan RoadsKenya has a road network of 146,000 km but on 14,000 km is tarmacked making most part of the country inaccessible during rainy season. The cost involved in road construction in Kenya is prohibitive ranging between Ksh 70 million (US$ 814,000.00 a kilometre) while Probase technology will cost around Kshs 23 million (US$ 267,441.00). The use of probase technology in Meru in particular and Kenya in general is expected to revolutionize road construction sector in the county.



Hon. Dr. Julius Kones Ensuring Water Sustainability at NWCPC

The National Water Conservation and Pipeline Corporation (NWCPC) is a State Corporation established under the State Corporations Act vide Legal Notice No. 270 of 24 June, 1988 Cap 446 of the Laws of Kenya.

Following the implementation of the Water Act 2002, NWCPC, who were previously retailing water in several water supplies across

the country, is today the implementation arm of the State Department of Water, Ministry of Environment, Water & Natural Resources. The corporation is governed

by a Board of Directors who provide policy guidance and direction. The Managing Director is the head of the organization and a member of the board. The Corporation has five departments- Planning & Design; Construction &Electro-mechanical; Corporate &Legal Services; Finance and; Human Resource & Administration.

Parastatal Africa caught up with Hon. Dr. Julius Kones the Chairman at the National Water Conservation and Pipeline Corporation and this is what he had to say.

What projects are underway towards the fulfillment of the Corporation’s mandate?We have quite a number of projects under

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the Vision 2030. Our mandate being to store water, we are charged with the construction of large dams in the country. We are working on several large dams in the country which include Badasa Dam in Marsabit which had stalled; Uma Dam in Kitui which is 60% complete. It however experienced some challenges and we are working to ensure that it is completed.

The Corporation recently issued a contract for the construction of a 10 billion dam in West Pokot to serve the entire Pokot County.There are also several dams which are under design; these include Koru Dam which is at the border of Kericho and Kisumu Counties. The dam is expected to serve the people of Kisumu as well as help in the irrigation along River Nyando. The Corporation is also undertaking other medium size projects in Nyandarau, Laikipia among other counties.The priority area of focus is the Arid and Semi-Arid areas (ASALS); however this is not to mean that other areas are left out.

For instance the Corporation is constructing a dam in Bomet County in order to harvest and store water to meet water demands for both Bomet and part of Kericho county residents.Our other mandate is flood control in the flood prone areas. The Corporation has constructed dykes in River Nyando, in Budalangi in Budalangi we are constructing check-dams and continue to construct dykes along the Nzoia river. In Garissa, Homabay, Migori and Turkana which are the flood prone areas, dykes construction is underway. This year we started construction of dams in Narok County and parts of Baringo County in Mogotio; which are areas that are also prone to flood.

What mitigation Strategies has NWPC put in place to reduce the effects of floods and drought?We are involved in Water Conservation by constructing dams which conserve water which is then treated for domestic use. The same water can also be used for irrigation purposes depending on the project being undertaken

Who are your partners and what are some of the State Corporations, government agencies and Ministries that you work with? We partner with most of the Water related bodies. Our work is mainly to construct after which we handover the completed project, mainly to the water boards. We also work closely with water suppliers

such as the Nairobi Water Company.

We also work closely with the Water Regulatory Authority as well as NEMA whose standards we conform to.What are some of the major achievements you have made in your 2010-2015 Strategic Plan?One of the major achievements in the Strategic plan is the completion of three key dams; Marubadam in Machakos, Kiserian dam and Chemususu Dam in Baringo County.

What are some of the Challenges that you are up against?Finance is always a challenge. We have a number of projects that we would want to implement, however we are fully financed by the taxpayer which at times becomes a challenge. Another challenge is that a majority of staffs at the Corporation are aging and will soon retire” We therefore

need to recruit staff; they will not be as experienced as the ones we have right now, considering that most of the staff we have right now came from the Ministry upon the establishment of the Corporation.

Most of the equipment we are using right now is outdated, which is a challenge to the organization. There are private organizations involved in the drilling of dams and they use modern equipment. This is therefore a challenge to the organization.

Your Vision is “To be a world class institution in water infrastructure development and management, what are you doing to achieve this?We are adopting the use of modern technology in dam construction; dams can be weapons of mass destruction.The Corporation is also installing modern equipment to monitor the safety of the dams.


This is usually done by checking whether the dam- axis has shifted which with the modern technology we can check from our offices.

What are some of the future plans of the Corporation?We are re-engineering ourselves to fit into the new Constitution, considering that some of the roles of the National Water Conservation and Pipeline Corporation have been devolved to the county governments. The state corporation is therefore working to ensure that its national role remains in order to stay relevant.

Most of the counties do not have the capacity to drill their on dams, the National Water Conservation and Pipeline Corporation is therefore working closely with the counties. Demand for the Corporation’s services is quite high and at the moment we cannot satisfy this, thus the need to invest in modern equipment and technology. The corporation has also appointed an officer who is in liaison with the counties. We are restructuring the place so that we are able to generate income to supplement our budget. We are therefore starting a semi-autonomous department; Business Development Unit in the State Corporation to convert water and infrastructure into a commercial business to supplement our budget.We will also be reviewing our Strategic Plan once we have the Board in place. The term of the other directors expired last month.

Do you agree with the government’s directive to have State Corporations remit excess money to the Central Bank of Kenya?I think the idea is noble but I am not sure if it will work. There is no need for a government body to hold money waiting for a project to start when another arm of government needs money to initiate a particular project. However, implementation can be tricky. I think people should stop making money out of government money, which is usually the case.

Kenya is a country that continues to grapple with water availability and accessibility challenges; do you feel that enough is being done to address this?There is still need to allocate more resources to the water sector. Water is still scarce in the country yet Kenya is not a country that should suffer from water deficiency. The budget allocated to water is minimal; Government, both at the national and county level need to re-access their budgets and allocate at least a bigger portion to water. This will in return address some of the health issues related to water such as waterborne diseases.

What has been your experience as the Chairman at National Water Conservation and Pipeline Corporation (NWPC)?This is an interesting position. As a non-executive member of the corporation I am not here on a daily basis. We come here, make decisions and leave them for the management to implement. It is a devotion to public service.

Kindly share with us your career background?I am a Mathematician and Statician by training; I went for my undergraduate and Masters in Mathematics at Moi University. I later went to Netherlands for my PhD. I then worked with the government for three years in the Ministry of Planning and I later joined the University of Nairobi as a lecturer for seven years after which I joined politics. I have been a member of parliament for five years and was hoping to clinch the Governor’s seat in the previous election, which did not happen. However, I am still hopeful.

Where do you draw your inspiration from? I like serving the people; whatever assignment I have I give it my best.

When you are not working, what activities do you like to engage in?I like socializing and meeting with people.

The World Water Day is due in March. What do you have to say in this regards? Our motto is Water life. The world water day will give us an opportunity to showcase what we have done particularly in the provision of water to the most rural parts of this country. In our budget we had a small allocation for what we call ‘Strategic Water Dams and Boreholes;’ we have gone deep into Mandera and Turkana and constructed boreholes. Turkana is rich in water and the water level is quite accessible.


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Africa Must Embrace ‘Wet Markets’ Even as the Continent Pushes for Food Security

This is the key finding of a new book released by the International Livestock Research Institute (ILRI) and partners’ dubbed Food safety

and informal markets: Animal products in sub-Saharan Africa that probes the complicated world of traditional or ‘informal’ markets in livestock products. These are often called ‘wet’ markets because they use so much water in cleaning due to the perishable and often contaminated nature

of the foods they sell. These venues sell most of the livestock and fish products consumed in Africa and they are growing rapidly as rising populations and incomes drive greater demand for meat and milk.

While the food sold in informal markets is often safe, in Africa and elsewhere in the developing world, they are suspected of spreading dangerous pathogens ranging from Salmonella and E. coli to SARS, avian influenza and tuberculosis. ILRI researchers

warn that the push for greater food safety standards in these markets must be informed by an understanding of their vital role as a provider of food and income to several hundred million people who rank among the world’s poorest. “Our work across eight countries found that we are right to be concerned about food safety in informal markets from milk in Mali, to fish in Ghana, to chicken in Mozambique, to beef in Kenya particularly for spreading

Misguided efforts to control the alarming burden of food-related illnesses in low income countries risk intensifying malnutrition and poverty while doing little to improve food safety. Blunt crack-downs on informal milk and meat sellers that are a critical source of food and income for millions of people are not the solution.


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gastrointestinal diseases that are a leading cause of sickness and death in developing countries,” said Delia Grace the program leader for food safety and zoonoses at ILRI.

“But it also shows that we are wrong to think that we can just adopt solutions developed in wealthy countries that favour large commercial operations over small producers. That will just exacerbate hunger and further limit money earning options for the poor,” she added. Research by ILRI and partners shows that in most developing countries, more than 80 per cent of livestock product purchases occur through informal markets and in places where there is no ‘formal’ alternative, like a western-style supermarket, close at hand. The studies find that this situation is unlikely to change for decades to come. In situations where supermarkets are

an option, studies in East and Southern Africa have found that, due to a poorly patrolled chain of custody between producer and seller, milk and meat sold in supermarkets may pose a greater health threat than what is sold in traditional markets. Moreover, small producers have many attractions for poor consumers. They are typically within walking distance for people who lack cars and they offer the opportunity to purchase fresh food in small amounts part of what is known in East Africa as the ‘kadogo’ economy. (Kadogo is street slang for ‘small’). In addition, many sellers in traditional markets will extend credit and typically offer the traditional foods their customers prefer.

The researchers note that the poor consumers in developing countries who suffer the most from food-borne illness are often the same

people who survive by selling meat and milk at the local wet market or street stall, or who depend on informal markets to supply affordable, nutritious food for their families.

“We need to understand how much disease is caused by unsafe milk and meat in low-income countries and also how much they contribute in terms of nutrition and income,” said Kristina Roesel, Co-Coordinator of the Safe Food, and Fair Food Project at ILRI. “We need to understand the complete picture so we can work to improve food safety without harming food and economic security,” she added. For example, in sub-Saharan Africa, one out of ten, and possibly more, cases of gastrointestinal or diarrhea diseases are caused by food-borne threatsand these


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Hazards Are Not Always RisksA key finding that emerges from the book is that in low-income countries, it’s important to separate potential hazards bacteria, viruses, parasites, chemicals and toxins from the real-world risks they are likely to present to consumers. Data from sites across East Africa, for example, has found that the raw, unpasteurized milk commonly available from street vendors and traditional markets may contain many health hazards. Yet the actual risks to consumers may be negligible due to the common practice in this region of boiling milk before consuming it.

In other situations, hazards are strongly associated with serious health risks. For example, the book includes a study of Fulani herding communities in Mali adamantly opposed to boiling milk because they believe boiling destroys milk’s life-giving properties. In Mali, researchers found efforts to encourage milk boiling can actually disrupt the social order of herding communities. Similarly, in Ethiopia, young men often view the consumption of meat particularly meat from the loins, diaphragm, hump or thighs of a ruminant animal as something that impacts strength and courage and thus, by definition, is ‘safe’ for consumption, even when eaten raw and with obvious health risks. ‘A man without a tapeworm is not a man’, said one of the study respondents. “Food safety policy should be guided by rigorous research to understand the way food is produced and consumed in different societies so we can devise strategies that are most likely to reduce the risks, particularly to poor consumers,” said Roesel.

Successful efforts to reduce food safety risks in informal dairy markets in Kenya, offer evidence that analyzing the flow of food products from producer to consumer, can identify opportunities for effective interventions. In this instance, training informal milk vendors and offering them incentives to improve milk handling practices that can transmit diseases such as brucellosis, tuberculosis and diarrhoea generated lasting benefits worth US$28 million per year.

Similarly, analyzing how food moves from farm to fork along Nigerian beef chains led to effective and efficient interventions by identifying where contamination was most likely to occur. In Nigeria, butchers were found to be the hotspot for contamination. However, providing training and simple technologies led to an 18 per cent decrease

in unsafe meat. This in turn generated savings of US$780 for each butcher trained, by reducing costs of illness associated with eating contaminated meat, while the cost of training was just US$9.

The study also found that most consumers using informal markets themselves care a lot about food safety. This is evidenced in their purchasing behaviour. For example, up to 40 per cent of consumers in Vietnam switch to alternative meats in the wake of animal disease epidemics. Researchers have found that poor consumers are willing to pay a 5 to 15 per cent premium for safety-assured products, and that demand for food safety increases with economic development, rising income, urbanization, increased media coverage and education level.

Informal Markets: The Past and Future of Food Sales Many policymakers mistakenly believe that food-borne illness in developing regions will rapidly decline as the modernization or ‘supermarketization’ of food sales steadily supplants informal markets. ILRI studies however show that Africa’s supermarket food is not necessarily safer than food in informal markets and also that informal markets are unlikely to disappear and could even become stronger in the coming decades. Indeed, the research shows that consumers prefer informal to formal markets, and not just for their lower prices, but also because traditional markets tend to sell fresher food. They also sell local products and breeds, which many consumers continue to prefer and those preferences seem to intensify as incomes rise. For example, in Africa and South East Asia, consumers often prefer local chicken breeds over cheaper imported breeds. “Informal markets are growing, not shrinking, across the developing world and in many ways mirror the “locavore” trend occurring in wealthy countries,” said Grace. “If we are going to improve food safety in these markets, we need policies that are guided by an understanding of producer and consumer behaviour, local diets and customs, and interventions that can reduce illness without imperiling food security or increasing poverty”, she added.

afflictions rank among the top three killers in the region and are a leading cause of death for children under the age of five. Milk, meat, fish and fresh vegetables are common carriers of disease-causing pathogens. But at the same time, these foods are essential for maintaining health and proper childhood development. Moreover, around the world, around one billion smallholder farmers rely on livestock for their livelihoods, with sales of milk and meat through informal markets providing much needed income.

The main lesson from research on food safety issues in Africa, the authors say is that in the developing world, “policymakers need to look at the facts, not just the fears, before moving to curtail meat sales at the local wet market or purchases of unpasteurized milk from traditional street vendors.”


COUNTY NEWS

Swala Energy, an Australian oil and gas company with prospecting rights in Kisumu, estimates that the first well in Block 12B within the Nyanza Rift basin could have as much as 22 million barrels of crude deposits.The firm holds equal exploration interest in the block with UK’s Tullow Oil, which together with its partner, Africa Oil Corporation of Canada, has been responsible for most discoveries in Kenya. Swala and Tullow have set the second half of the year as the target date for drilling Ahero-A well, which will mark beginning of the oil search in Kisumu. Nyanza Rift basin, where Block 12B is located, lies within the East African rift system, which is also home to Lokichar Basin where more than 600 million barrels of crude oil have been discovered since March 2012. “The seismic survey over 12B that was completed in the second quarter of 2014 revealed a number of leads and prospects of which Ahero-A was provisionally identified as a potential drilling target for 2015. The prospect is estimated to have the potential to contain up to 22 million barrels,” Swala said in its quarterly

report for the period ended December 2014.

The announcement comes as the global prices of crude oil remain low, currently trading at below $50 a barrel.Analysts have also cautioned that prevailing prices are too low for profitable oil production, but explorers reckon that the current prices are just momentary and that things will normalize. The industry it is said can be viable at prices above $70 a barrel. Saudi Arabia says it can only survive the current prices for a maximum of 4 years beyond which it will to take desperate measures.

Most international oil and gas companies, including those operating locally, have announced plans to scale down operations to deal with the impact of the weak prices.

Kisumu Block Estimated to Hold 22m Barrels of Oil

Oil exploration in East Africa. Swala Energy is targeting to drill 22 million barrels of oil from its Nyanza block.

Gelian Hotel is the new ‘sky- scrapper’ in Machakos County. The eight-storey hotel is located next to the Machakos County Assembly and is so far the tallest building in the town. Gelian Hotel has changed the skyline of Machakos town after opening its doors to the public on 21st February 2015.

The hotel is the official sponsor of the fourth edition of Masaku Sevens which is expected to take place between June 30 and July 5.Alfonce Musyoki the Hotel Manager noted that rooms were already booked ahead of the Masaku International Rugby Derby (Masaku Sevens). “Already we have some bookings. We may be full by the time the tournament starts,” he said. Mr. Musyoki said they were offering ‘reduced rates.’The hotel has a capacity of 100 rooms.It also has a gym, swimming pool and a club, which can host 250 people at a go.Mr. Musyoki said the hotel was also suitable for family weekend getaways, especially from Nairobi and its surroundings.

Machakos Opens new 8-storey Hotel


COUNTY NEWS

Simba Energy, a Canadian oil and gas explorer, has managed to raise Ksh.32.5 million to carry out further exploration on its Mandera block. The listed Canadian explorer said it raised the funds through a private placement and will use the cash to meet work commitments as per the production sharing contracts (PSC) signed with the government. “Net proceeds from the private placement will be used towards funding and exploration commitments associated with the company’s production sharing contracts, payment of certain trade payables, and for general working capital purposes,” said Simba Chief Executive Robert Dinning in a statement. Simba has a 100 per cent interest in Block 2A located in Mandera Basin. An investor presentation by the explorer indicates the next phase is to buy seismic data to be used to determine the best drilling points. Oil and gas companies have continued with exploration work despite the falling price of oil which has created a difficult market for raising funds.

The exploration momentum is being carried forward to this year after the government showed its seriousness at revoking licenses belonging to firms that were not doing work as per the PSC.Energy Cabinet Secretary Davis Chirchir revoked Vanoil’s exploration licenses in February 2014 for blocks 3A and 3B located in Garissa after the firm failed to carry out any work since 2007

when it signed the PSC.Tullow Oil, ERHC and Taipan Resources are the other explorers that have confirmed that they will continue with exploration despite an unfavorable capital raising market which has resulted in some firms facing financial trouble.

Afren, a UK explorer that is listed on the London Securities Exchange and has local interests, asked bondholders for more time to pay interest on its debt facilities.“The company is continuing discussions with the advisers to the ad hoc committee of its largest bond holders regarding the immediate liquidity and funding needs of the business. The company is also having discussions with its existing stakeholders and new third party investors regarding recapitalizing the company,” said Afren in a statement.

Afren is exploring on offshore Blocks L17 and L18 located in the Lamu coastal Basin and Block 1 in Mandera.The firm has sought extension on interest payment for a bond and a loan it had taken, by at least a month.

Canadian Explorer Raises Funds for Mandera Oil Block

An oil rig. Simba Energy has Sh32.5 million to carry out further exploration

The Government is set to establish a medical training college at Voi County Hospital. Kenya Medical Training College (KMTC) , Philip Kaloki said the existing buildings at the hospital were being refurbished and the training facility would start operations in September. Prof Kaloki said the institution, which will be the first medical training college in the county, had also been allocated five acres to expand its training facilities. “Another training facility is also being built in Taveta sub-county. At the moment we need four classrooms, a library and computer room and two dormitories to accommodate 300 students,” he said. Kaloki also said the health facility would be elevated to referral hospital status once the college was operational. He said the campus would offer diploma and certificates courses in nursing, adding that the local community would be given priority in admissions. “The institution will also offer training in community health, midwifery and health management systems,” said the official. Speaking in Mtito Andei Township, Kaloki said KMTC was committed to ensuring quick implementation of the project. “We will ensure that 40 per cent of the training vacancies are allocated to the local community. The training facility is expected to help bridge the staffing gap that is common in rural areas,” he said. The former Kibwezi MP said about 6,500 health workers graduate from

Medical Training College to be Set Up at Voi Hospital

training institutions every year, but the number is not enough to meet the high demand for health services. Governor John Mruttu and Voi MP Jones Mlolwa said they fully supported the project as it would improve the socio-economic status of the local community. “The Constituency Development Fund committee will allocate a substantial amount of money to support the project,” assured Mr. Mlolwa.

Group of medical students in white lab coats stands around hospital bed


COUNTY NEWS

Nairobi County has advertised multi-billion shilling tenders for expansion of Pumwani Maternity Hospital and reconstruction of the Mbagathi Level Four Hospital.

A contract for the Pumwani School of Midwifery expected to cost Ksh.1.2 billion will see the developer put up six theatres, a 200-bed capacity block, intensive care unit, laboratory, diagnostic centre and student living quarters on a six-storey building.The expansion is expected to increase student enrollment while boosting the institution’s capacity to meet requirements of the Nursing Council of Kenya.

The hospital will also be in a position to provide a range of services in addition to the current obstetric and neo-natal services.The county has advertised for an expression of interest from contractors seeking pre-qualification, after which they will submit their quotations and financial proposals.

Cash-strapped City Hall is banking on financing by the developers in the setting up of infrastructure and equipping the facilities.Nairobi will pay an initial deposit of the contract sum to

Pumwani Maternity Hospital Set for Expansion

the contractor, with the balance to be paid in installments over a period of five years after construction.

The contractor will be responsible for any sub-contractors or sub-vendors who will be required to complete different portions. The design of the hospitals has been done and the contractor will be expected to adopt it.

This comes as the county struggles to finance capital projects in the face of an overwhelming wage bill. According to the last report on revenue performance, Nairobi could not raise enough money to meet expenditure in the first three months of this financial year. City Hall collected Ksh.1.7 billion from internal revenues for the first quarter ending September and received Ksh.1.4 billion from the national government for the same period.

The county spent Ksh.4.3 billion on recurrent expenditure and Ksh.276 million on development projects, incurring a deficit of ksh.1.4 billion.Efforts by the county to access a Ksh.4 billion loan for paying salaries and funding development projects was thwarted after MCAs from the Jubilee coalition obtained a court injunction after the County Assembly approved the process.

The Pumwani maternity Hospital


AU Members during the African Union’s Summit in Ethiopia

REGIONAL NEWS

African leaders have agreed in principle to impose a flurry of taxes in a bid to finance their pan-African bloc, set up to push the continent’s diplomatic agenda but dependent on foreign handouts.After a two-day summit held in the African Union’s Chinese-built headquarters in the Ethiopian capital Addis Ababa, heads of state proposed new taxes on airline tickets, hotel stays and text messages.The AU was once heavily bankrolled by toppled Libyan strongman Moamer Kadhafi, who championed the institution as a means to challenge Western hegemony. Now, however, 72 percent of the AU’s operational budget comes from International donors led by the United States and European Union.

“Over 70 percent of our budget is foreign funded. This is not sustainable,” said Zimbabwean President Robert Mugabe, who during the summit was appointed to the AU’s rotating chair — certain to raise eyebrows among key donors who have sanctioned him for political violence and intimidation.

Kenyan President Uhuru Kenyatta, who has also been embroiled in a stand-off with the West after being charged by the International Criminal Court for crimes against humanity, also said the dependence on foreign financing was a “profound handicap and an impediment to the continent’s momentum.”“Depending on external funding for the union’s budget is simply unacceptable,” he said as he called upon Africa to assert “its independence and sovereignty more robustly.” At present, the 54-member bloc sources only 28 percent of its half-billion dollar operational budget from its own members. In addition, it has to source an additional $750 million for peacekeeping

operations — with the funding gap filled mostly by the European Union, United States, World Bank, China and Turkey.

Donor Conditions The bloc is now proposing a $10 tax on flight tickets to and from African destinations, plus a $2 dollar tax on each night spent in a hotel. It is estimated that the levies will pull in $730 million dollars a year.An additional half-a-cent tax on SMS exchanges would bring in $1.6 billion, according to AU officials, who are hoping to see the bloc able to fund its operations and projects to the tune of 65 percent by 2016.The anticipated windfall is likely to shake off institutional aid dependency and ease pressure on key donors Libya and Egypt, which cannot afford to contribute at the same levels as before.“We should be able to take our decisions freely,” said Francine Muyumba, head of the Pan-African Youth Union (PYU).

“In case of emergencies like Ebola, we need to have the means to intervene quickly and without having to wait for foreign money. Money from donors always comes with strings attached.”Whether the plan takes off, however, remains to be seen even as AU members will additionally have to respect a new, higher threshold for contributions calculated on the basis of their GDPs.

While African heads of state agreed in principle to the proposals, the application of the taxes will be initially on a voluntary basis, leaving each member state with the choice of slapping the new taxes on their citizens and visitors. The proposals, drawn up by former Nigerian president Olusegun Obasanjo in May 2013, have been criticised by many member states as punishing for their tourism sectors and unduly sparing of the oil and mineral sectors.

AU to Impose Taxes


REGIONAL NEWS

Construction of Key By-Pass Fast Tracked

terminal is operational and this would have worsened and already bad situation in terms of traffic gridlock,” Dr. Kiptoo said.

The by-pass will be constructed under the Mombasa Port Area Road Development Project (MPARD) that aims at curbing traffic congestion around the port, which is currently undergoing massive expansion. The Japanese government awarded Kenya Ksh.29 billion for use in the MPARD mega-project in 2012. Dr. Kiptoo said TMEA will spend a total of Ksh.1.8 billion ($20 million) in the construction of the key road link. The funding is by the UK government.

“The government of Kenya will chip in by clearing structures along the project path and help relocate populations on the route,” he said.The route will pass south of the Moi International Airport and west of the Port Reitz harbour before turning south. The road will link Miritini on the mainland to Ng’ombeni in the south and include four bridges. It will also connect the Likoni-Diani highway.The first phase of the project is set to kick off later this year focusing on the highway from Miritini, west of the Moi International Airport to Vumirirani, according to the master plan.

Two large bridges will be constructed including a 495m span over water at Mkupe and a 1,360m span at Dongo Kundu.In the second phase, the government will focus on improving roads on the mainland, including a key six kilometre link from the new container terminal to the southern by-pass.

Construction of a key by-pass linking the Mombasa port with the main highway to Nairobi has been put on an accelerated programme to avert a congestion crisis when a new container terminal becomes operational next year.

The 18-kilometre road meant to ease pressure on the busy Changamwe area was initially scheduled for completion in 2017 under a Japanese government- funded programme.“We decided to take up the construction of this particular road link because the timelines under the Japanese government-funded Mombasa roads expansion project did not factor in the completion dates of the second container terminal,” said Chris Kiptoo, Trade Mark East Africa (TMEA) Country Director for Kenya.

Kenya is currently building a second container terminal valued at Ksh. 28 billion in Mombasa to handle increased trade within the region driven by a boom in the construction industry, vast infrastructure development and an emerging middle class.By 2016 the new terminal is projected to have a capacity of 450,000 twenty-foot equivalent units (TEU) and this is expected to rise to 1.2 million by 2019.

The government through the Kenya Ports Authority (KPA) has already called for bids for a concessionaire to run the first phase of the new container terminal. “As per the initial plans the road link would have been completed long after the second container

Road to the Mombasa port


REGIONAL NEWS

Rwanda Revenue Authority (RRA) has started registering taxpayers at the district level as part of the arrangement to collect all revenues from the grassroots before remitting percentages back to local authorities.Launching the registration in Kigali, the Commissioner-General of RRA, Richard Tusabe, noted that many people have not been paying taxes on time and hoped their efforts would enhance revenue collection.The tax collection task, started in March last year, is geared at enhancing efficiency in tax collections and reducing the cost of collecting revenue at district level, according to the Ministry of Finance. “We took initiatives to work with local leaders to reach taxpayers door-to-door and assess if they fulfilled their tax obligations at least in the past three years. We have realised that some paid like for a year and we urged them to clear the outstanding balances before we take punitive measures,” Tusabe said.

Local governments were often hiring tax collectors to collect taxes on behalf of RRA due to capacity constraints.Tusabe said RRA has built its capacity in terms of expertise, skills and knowledge to efficiently collect taxes from local government since it’s something their staffers understand.“It will help districts become stronger with more revenue on their accounts,” he said. The RRA chief added that the registration will be

RRA Starts Registration of Taxpayers at the Grassroots

done along with assessment of taxpayers as well as tax awareness campaigns to help people understand the types of taxes to be paid.

Trade licences, rental tax, Value Added Tax (VAT) and property tax are among those now being collected by RRA. We are refining services from one step to another with ways of collection, assessment, enforcement where we will soon introduce mobile taxes collection system using phones, officials said.The Mayor of the City of Kigali, Fidele Ndayisaba, said the City has many taxpayers whose compliance rate needed to be reviewed.“There is need for vigilance in tax collection to avoid affecting implementation of development projects We are first mobilising residents against tax evasion in order to make our country self-reliant,” he said.

RRA says it’s on course to collect Rwf986 billion needed to finance 56 per cent of current National Budget of Rwf1.75 trillion, despite some challenges that are undermining domestic taxes revenue.The tax body said earlier this month that it had collected Rwf411.5 billion during the first semester (July-December 2014) of the current financial year, slightly lower than the Rwf432.7 billion target, indicating a 95.1 percent success rate.

Richard Tusabe, RRA Commissioner General


REGIONAL NEWS

There will be no more direct flights by South African Airways (SAA) to China starting in May. The struggling airline can no longer afford to do the long route, Finance Minister Nhlanhla Nene said.

According to the minister, the move is part of a strategy to turn around the finances of SAA and part of the cost-saving measures that include cancelling loss making routes, with China being one of them.The South African Airways is operating on loss before interest, taxes, depreciation and amortization narrowed to $37.4 million for the year from $42.5 million reported 12 months earlier. “Indeed, we have approved the cancellation of the China route as government because we have a certain obligation. Part of the implementation of the strategy was the closure of loss making routes,” Nene said.

SAA installs new system South African Airways (SAA), which is based in Pretoria is the first airline globally to install the SatAuth (Satellite Authorisation System) which will allow for secure credit card transactions anywhere in the skies.The system, first installed on the airline’s cabin trainer for testing in May last year, will not only allow secure credit card transactions anywhere in the skies but also provide pin-point accurate aircraft tracking services for operational purposes. South African

Airways Technical (SAAT) developed the testing and engineering procedures for airline maintenance facilities around the world.

SAA installed the device on one of its Airbus A340-300 aircraft at the SAAT maintenance facility in Kempton Park, Johannesburg. SAAT engineers worked closely with the developers of the solution,” said SAAT CEO Musa Zwane.The system will allow for secure credit card transactions at any point and real-time positioning of any flight, anywhere, impacting fuel saving interventions in-flight as well as providing full visibility of actual flight paths versus planned routing at any time. SatAuth is the first product of its kind, developed in South Africa.

SAAT will manufacture all major aircraft components required for installation of SatAuth in accordance with the international Aviation Certification standards required for installation.“This provides SAAT with substantial commercial impetus with a new revenue stream. The installation is the first of its kind in the world and marks a new milestone in South African avionics engineering; it’s another affirmation of the quality, skill and expertise that SAAT offers in terms of its aircraft maintenance and overhaul facilities,” said Zwane. SAA plans to install SatAuth across its entire long-haul fleet over time.

South African Airways Stops Flights to China

South African Airways


REGIONAL NEWS

In an effort to enhance and elevate the structured bilateral cooperation between them, South Africa and Sudan have taken a decision to raise the Joint Bilateral Commission for Cooperation to a ministerial level.The main objective of the commission will be to promote political, economic and social relations between the two sides.

In this regard, the ministers of International Relations and Cooperation and Ministry of Foreign Affairs have been tasked to work with speed to conclude an enabling agreement. This emerged after talks between President Jacob Zuma and his Sudanese counterpart Omar al-Bashir during Zuma’s working trip in Khartoum, Sudan. The two leaders reaffirmed commitment to reinforcing economic relations by encouraging both countries' private and public enterprises to further involve themselves in establishing partnerships to become a model for South-South cooperation.

“We also agreed to encourage more public and private sector companies to make joint ventures for the mutual benefit of the two countries and people. In this regard, Mr. President, we direct our relevant ministers to work tirelessly to enhance our bilateral cooperation,” said President Zuma after the talks.

Already the two countries have sixteen bilateral agreements in a number of fields including trade, agriculture, defence, policing, arts and culture, social development, scientific cooperation.“We talked about many issues, including the fact that, as African countries, we must be totally independent and take our decisions about our destiny," said President Zuma. The two presidents also exchanged views on matters of peace and security in the continent, paying particular focus on the on-going conflict in South Sudan.

They called on all the parties involved in the conflict in South Sudan to show leadership and responsibility to bring an end to the conflict.“To this end, we have committed ourselves to playing our part to help resolve the crisis. The people of South Sudan need peace, security, stability and development,” said President Zuma. The two leaders also reaffirmed their support to the UN and the African Union as important institutions of consolidation for peace maintenance of regional and international security, according to the communiqué. Al-Bashir described President Zuma's visit to Sudan as ‘fruitful,’ saying that "we have agreed to promote cooperation, implement all previous agreements and upgrade the joint ministerial committee."

Sudan & SA Vow Closer Economic Relations

President Jacob Zuma is received by President Omar al Bashir at the Airport


PROJECTS

Low Emission Low Carbon Transfer (LCET) Programme that enhances and promotes Ultra-Low Head Micro Hydro Power (ULH-MHP) technologies for productive uses in Ethiopia was launched at Adama Town.Officially launching the pilot programme that will be implemented at Fentale Wereda, Oromia State, Alemayehu Tegenu Water, Irrigation and Energy (MoWIE) Minister said that the emphasis on developing the nation's renewable source of energy is one of the major targets of the country. According to him, the overriding development agenda of the country is to sustain rapid and broad based economic progress. In this regard, significant results are being registered. During

Clean Energy Technology Programme Launched in Ethiopiathe GTP II emphasis will be given to the utilization of improved technologies that speed up environmental friendly technological transformation, he said. Alemayehu further noted that, using progressive and sustainable environmentally friendly technologies, the country aspires to register remarkable economic growth thus marching to make poverty history.

According to him, access to social services has increased and the level of poverty is diminishing from time to time. Besides expanding rural electrification, technologies like Ultra-Low Head Micro Hydro Power are significant to increase agricultural productivity, job creation and create value chain among different economic sectors.Alemayehu also said in an effort to achieve economic progress the United Nations Industrial Development Organization, UNIDO, is contributing a lot to the industrial development of Ethiopia. Speaking on his part, Kazuhiro Suzuki, Ambassador of Japan to Ethiopia stated that, Japan is working hard to improve the energy situation in Ethiopia through various schemes.

According to Suzuki, as part of its scheme Japan is providing support to Ethiopia in the field of climate change through formulation of plans related to water supply and resources, as well as through projects aimed to improve water supply, hygiene, and livelihoods in rural areas.He also said that "Japan is working hard to improve the energy situation in Ethiopia. This will be accomplished in the future by joint efforts of both private and public sectors, including Small and Medium Enterprises (SMEs), so that Japan as a whole, can tackle various challenges associated with developing and implementing a new technology hand in hand with Ethiopia, for the sake of global environmental conservation." Suzuki said Ethiopia is the first among African countries that signed a bilateral document with Japan on the Joint Crediting Mechanisms (JCM), which enhances the reduction of carbon emission.

The UNIDO Project in Fentale has been implemented to formulate specific projects under JCM, he said. Acknowledging Ethiopian economic progress, Jean Bagambanya Bakole, UNIDO Representative and Director of Regional Office in Ethiopia said that UNIDO is glad to be associated with the process of Ethiopia's transformation which is indeed an African home grown development success story. Oromia Water Mineral and Energy Bureau Head Motuma Mekasa said at the event that, in addition to increasing agricultural produces, when the project is implemented, it will open another window of hope to access modern and clean energy. "This will definitely improve the life of the population. When scaled up, it will improve the life of millions who live far from the Grid," Motuma said. Enhancing local capacity and promoting ultra-low head micro hydro power technologies for productive uses in Ethiopia Project is a programme funded through the technical cooperation of UNIDO.

Turkish clothing giant, LC Waikiki, is in negotiations with The Junction, Two Rivers and Garden City malls for retail space to sell its apparel.A Fortune 500 company, LC Waikiki is present in 23 countries and has more than 500 retail outlets.

“The company is exploring the emerging retail market opportunities that the growing middle class present in Africa and Kenya is one of our focus countries,” said Chief Executive, Smail Sac in a statement.Speaking when he met Mr. Sac, Industrialization Cabinet Secretary Adan Mohamed said Kenya offers a competitive investment destination in the apparel and textile sector.

“We have duty free access to a huge market through the African Growth and Opportunity Act and European Union that is still punching below its weight despite Kenya being the leader in Sub-Saharan Africa,” he said.

Turkish Clothing Giant Eyes Space in Nairobi Malls

One of Nairobi malls

Alemayehu Tegenu Minister for Water, Irrigation and Energy, Ethiopia


PROJECTS

Housing Finance (HF) through its fully-owned subsidiary, the Kenya Building Society (KBS) is putting up 424 units at its Komarock site from mid this year in the second phase of a multi-billion shilling project. The units will be put up on 32 acres it owns in the Komarock area while another 848 units will be constructed from October 2016. The mortgage lender Housing Finance Chief Executive Frank Ireri said part of the Ksh.3.5 billion the bank is raising through the ongoing cash call will go into the Komarock housing project.

Already 162 houses and a commercial centre are being built on the Komarock land and the management is looking at the possibility of packaging some of the properties into a Real Estate Investment Trusts (Reits). Mr. Ireri said one of the potential properties that can be packaged as an investment (I) Reit where shares sold benefit from rental income and sold to investors such as the pension funds and insurance firms is the commercial property.

By selling the commercial property as an I-Reit the housing firm will be free from the day-to-day running of the mall, allowing it to concentrate on lending and development through KBS.“We’re not in the business of running the mall until we set up a property management firm

HF to Construct 424 Houses in Komarock under KBS,” Mr. Ireri said. The information memorandum on the on-going rights issue says the Reits are also meant to give the company additional sources of funds in addition to its own funds and debt. REITs are expected to provide access to the capital markets thus reducing funding risk due to reliance on debt and enhance liquidity. Housing Finance, through its subsidiary Kenya Building Society has lined up various projects that will be implemented through REIT structures. Proceeds from the rights issue are also expected to go towards growing the lender’s loan book. Analysts expect an uptake of mortgages as interest rates begin to go down.

“With the government’s concerted push for a lower interest regime whereby KBRR (Kenya Bankers Reference Rate) has shed off 59 basis points since introduction, higher disposable income in the middle class bracket should spur greater mortgage financing uptake,” said a note on HF by Genghis Capital.The KBBR stands at 8.54 per cent from 9.13 per cent as at December with room for a further drop should the government reduce its borrowing. Britam, the largest shareholder in HF with a 46.08 per cent stake, has committed to participate in the rights issue which will see the firm invest Sh1.6 billion.

General Electric has committed $3.5m for capacity building in the Oil and Gas industry in Ghana. To this end, GE is working with GNPC and Ashesi to build capacity for the country's nascent oil and gas sector. The three organizations have signed a Memorandum of Understanding (MoU) on research and training of professionals in the oil and gas sector. The historic signing was witnessed by GE global chairman and chief executive Mr. Jeff Immelt. Through its Oil and Gas University initiative GE is working with Ashesi to develop a curriculum applicable to the Ghanaian Oil Industry. A scholarship fund will then be made to support students of Ghanaian Universities and Vocational Institutions who are studying Engineering or Oil & Gas related fields.The CEO of GE Oil & Gas for Africa, Mr. Marco Caccavale disclosed that the collaboration will promote knowledge transfer through GE funded academic scholarships for universities, professional seminars and courses on leadership and technical issues on Oil and Gas.

The Managing Director and Chief Executive of the GNPC, Mr. Alex Mould said he was delighted to work with GE on a comprehensive plan on capacity building and technology transfer. He disclosed that GNPC will provide technical input for O&G training as well as a number

General Electric Commits $3.5m in Ghana’s Oil and Gas Industryof candidates for training at the O&G University. The first beneficiary of the program, Mr. Richard Asmah, an engineer at GNPC will begin a five-month training programme at the GE O&G University in Florence.

During the course, candidates will learn managerial and technical information, to consolidate their personal background in the oil and gas sector. Under the agreement GE and GNPC will also invest in the development, training and financing of small and medium sized Ghanaian suppliers and service providers to support their potential long term entry in to the O&G/ GE supply chain. The founder and president of Ashesi University College, Patrick Awuah, indicated that Ashesi will provide assistance and advice as to how best to achieve the aims of the Collaboration, and where necessary make its facilities available to the parties. He said Ashesi was glad to be at the forefront of this comprehensive initiative that will ultimately help Ghanaians acquire the technical expertise required to manage the growing Oil & Gas industry.GE is the world's leading technology and financial services company, with over $140 billion in annual revenue. In Ghana GE operates in the Power & Water, Oil &Gas and Healthcare businesses and has grown its operations by more than five-fold since 2010.

Housing Finance MD Frank Ireri


By Catherine Njau

In our book review this month we focus on the second part of ‘Top Positioning’ by Stephen Kigwa.

In part one we focused on ‘Intellects’ where we learnt how to learn how to fine tune our thinking to optimize our life experiences. Part two of the book focuses on ‘Emotions’ and here we learn ‘how your emotions can create leverage for you.’

Here are the details as contained in Part two of ‘Top Positioning’:Your Channel is your Change FactorChange or lack of it is a real enabler that determines the success or failure of every relationship. A little adjustment or lack of it in the way people treat each other is the real cause of strain in their interactions.

How close are you with your Partner?Closeness is developed by sharing states. This means that you grow through challenges together and experience joyous moments together. This however does not happen by default; it takes creative effort for the parties involved.How intact is your Love Relationship?Attracting a partner and keeping him hooked can’t just be about physical beauty, or how intelligent or nice they are; this is not always the case. There is a ‘secret’ that makes people stick together.

The Power Play behind RelationshipsAny relationship between a man and a woman revolves around mechanical and emotional intimacy. These two determine the fluidity towards either harmony or disharmony in any relationship.

What is the Glue that holds Relationships Together?The marriage institution is more prone to breakages in these modern times than it was in the past. Both a man and a woman have an existing conceived concept of what a wife/husband is and what marriage is all about. When they agree to settle together in marriage and the individual concepts about this settlement are deviant from each other, then the marriage is bound to have conflicts and is likely to end up in a divorce court.

Are you romancing your Past?In this earthly adventure, some people think that they know you because they know about your past. They have analyzed, categorized and locked you up in a certain folder. The good news is that those who think they know you don’t know you yet. Learn something new every day, and consistently become a better person every moment of the way. When you do this, the least that these people can do is to embrace and study the change with wonder.

How well do you know him/her?A healthy relationship is prone to serious constraints when wrong perceptions are revered as the truth. Most relationships fail because the couple did not take time to take enough time to study each other beyond superficial beauty. Love is a powerful force and once smitten it is very easy to overlook the power of reason even when it is ‘glaring and plain as the nose of someone’s face.’ Before you say ‘I do,’ check on the upbringing of the prospect and the history of previous relationships.

Beware of Emotionally Retarded IndividualsThere is a more common and more subtle emotional problem affecting most people. This might be tricky to point out from a glance. These people could be the attention seekers who try so hard to assert their opinions, they bully everyone they can, want to take all the credit and will hoard information from others to discredit them. Be wary of such individuals. They are insensitive about the feelings of others and if you hang out with them long enough, they will drain you emotionally.Well, I am sure we can all learn something from this. In our next edition we shall look at Part Three and the final Chapter in the book where our focus will be on ‘Spirituality.’

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SPORTS

AFC0NS 2015

The tournament was initially scheduled to be hosted by Morocco who later demanded postponement of the event because of the Ebola

virus epidemic in West Africa; subsequently Morocco was ruled out as a host country and replaced by Equatorial Guinea. The Ivory Coast won the tournament for their second Africa Cup of Nations title, defeating Ghana 9–8 in a penalty shoot-out after the final finished goalless following extra time. The DR Congo came third and the hosts Equatorial Guinea fourth, while defending champions Nigeria did not qualify.

Hosting BidsThe following countries expressed an interest in hosting the tournament: Botswana,


Cameroon, DR Congo, Guinea, Morocco, South Africa, Zambia and Zimbabwe.

CAF received 3 bids before 30 September 2010, the deadline, to host either the 2015 or 2017 Africa Cup of Nations from DR Congo, Morocco and South Africa. All three bids were originally put on a shortlist. CAF then began an inspection procedure, on November and December 2010, intending to visit each bidding country to view stadiums, infrastructure, and football interest. They inspected the DR Congo first. Shortly after the inspection, DR Congo informed CAF that they would be withdrawing their bids for both the 2015 and 2017 Africa Cup of Nations tournaments. Morocco was the next country to be inspected. South

Africa was inspected last. On 29 January, during the 2011 CAF Super Cup, the CAF Board decided that Morocco would host the 2015 African Cup of Nations, while the 2017 edition would be held in South Africa. The four Morocco host cities which were scheduled to host the tournament were Rabat, Marrakesh, Agadir and Tangier, as announced by the CAF Executive Committee on 23 September 2013. Casablanca would serve as an alternative venue.

Moroccan WithdrawalIn October 2014, the government of Morocco requested a postponement of the tournament due to the Ebola virus epidemic in West Africa. After the matter was discussed at the Executive Committee

The 2015 Africa Cup of Nations, known as the Orange Africa Cup of Nations Equatorial Guinea 2015 for sponsorship reasons, was the 30th edition of the Africa Cup of Nations, the international football championship of Africa. It was organized by the Confederation of African Football (CAF) and was held from 17 January to 8 February 2015.

Ivory Coast’s midfielder Yaya Toure raises the trophy at the end of the 2015 African Cup of Nations final football match between Ivory Coast and Ghana in Bata on February 8, 2015. Ivory Coast won 9 to 8 on penaltie


SPORTS

meeting on 2nd November 2014, CAF decided to keep the date of the tournament, while also asking for a clarification from the Royal Moroccan Football Federation of whether they still wished to host the tournament. On 8th November, Morocco failed to meet this deadline to confirm it would host the tournament.

Three days later CAF confirmed that Morocco would not host the tournament and a new host would be chosen from a list of countries which had expressed interest. Morocco, who had previously qualified as hosts, were disqualified from participation at the tournament. CAF confirmed legal action against Morocco due to a contract signed in April 2014. Moroccan Sports Minister Mohamed Ouzzine said that CAF had falsely accused his country of "refusing" to host the tournament when it wanted it postponed, and justified the decision by citing that the World Health Organization gives every country the right to protect its citizens. On 6 February 2015, CAF announced that Morocco had been banned from the next two AFCON tournaments, fined 1 million US dollars, and CAF was demanding 9 million US dollars in compensation. Egypt, Ghana, South Africa and Sudan all declined to take over as hosts. Angola, the hosts of the 2010 edition, were spoken of as a potential replacement due to existing stadia and infrastructure in the country. However, a member of the Angolan Football Federation stated that it could not be possible as the new government budget did not include any tournaments. On 14 November 2014, CAF announced that Equatorial Guinea would host the tournament.

Qualification Qualification for the tournament was made up of four stages, three preliminary rounds and a final group stage. The 21 best-ranked teams were given a bye to the group stage, while the next 26 teams began play in the second preliminary round, and four lowest ranked teams started at the first round. The three preliminary rounds were a series of playoffs, with the winners advancing.51 nations entered the tournament (excluding initial hosts

Tournament rankings

As per statistical convention in football, matches decided in extra time are counted as wins and losses, while matches decided by penalty shoot-‐outs are counted as draws.

Pos Team Pld W D L GF GA GD Pts Final Result

1 Ivory Coast 6 3 3 0 9 4 +5 12 Champions

2 Ghana 6 4 1 1 10 3 +7 13 Runner-‐up

3 DR Congo 6 1 4 1 7 7 0 7 Third Place

4 Equatorial Guinea (H) 6 2 3 1 5 5 0 9 Fourth Place

5 Congo 4 2 1 1 6 6 0 7

Eliminated in quarter-‐finals

6 Algeria 4 2 0 2 6 5 +1 6

7 Tunisia 4 1 2 1 5 5 0 5

8 Guinea 4 0 3 1 3 6 −3 3

9 Senegal 3 1 1 1 3 4 −1 4

Eliminated in group stage

10 Mali 3 0 3 0 3 3 0 3

11 Cape Verde 3 0 3 0 1 1 0 3

12 Gabon 3 1 0 2 2 3 −1 3

13(T) Cameroon 3 0 2 1 2 3 −1 2

13(T) Zambia 3 0 2 1 2 3 −1 2

15 South Africa 3 0 1 2 3 6 −3 1

16 Burkina Faso 3 0 1 2 1 4 −3 1

Morocco). It was the competitive debut of South Sudan. Djibouti and Somalia declined to enter. Morocco would have automatically qualified as hosts; however, after their refusal to host, they were expelled from the tournament by the CAF. Equatorial Guinea was chosen as the new host, and despite having played in the qualifiers and been disqualified due to fielding an ineligible player, they qualified for the tournament automatically. The defending champions Nigeria failed to qualify for the tournament.

Tournament rankingsAs per statistical convention in football, matches decided in extra time are counted as wins and losses, while matches decided by penalty shoot-outs are counted as draws.

Ivory Coast's fans celebrate after winning their semi-final match of the 2015 African Cup of Nations against Democratic Republic of Congo in Bata

eng.john philip olum · parastatal africa2 | | 2015 | march - april issue the success story of meru...

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