Category: Business

This year’s African Green Revolution Forum (AGRF) Summit will be held in Kenya this coming September.
The Meeting usually brings together players in the agriculture sectors to share lessons that is geared towards moving agriculture in Africa forward.
Speaking during a press conference on the upcoming event in Nairobi, AGRF Chairman Hailemariam Desalegn said Kenya’s private sector will have an opportunity to showcase some of the innovations they have developed and the progress the country has made towards sustainable food systems.
He said that prior to the COVID 19 pandemic almost 690 million people or 8.9 per cent of global population were undernourished and if this trend continues the under nourished will exceed 880 million by 2030.
Two billion people or 25. 9 per cent of global population experienced hunger at the same time, Desalegn said adding that what this means is that there was not sufficient food and therefore shows how agriculture is important to global community.
“We are off -track to achieve the commitment to end hunger by 2030. Statistics on food security are not encouraging and we will need a new approach that results in resource mobilization towards hunger eradication, combining public and private investment otherwise will not achieve to zero hunger,” he added.
The former Ethiopian Prime Minister said in order to be able to attract investment into the Kenyan private sector, the agribusiness deal-room that will be provided during the forum is an opportunity for Kenyan companies.
“Those seeking investors will be able to share their investment needs with over 50 global investors with an interest in African agriculture. Over the past three years more than 300 African companies have shared investment needs in excess of USD 1.4 billion,” he said.
Desalegn said Kenya remains a beacon of success for the agriculture sector, and that the AGRF Summit 2021 is another opportunity for the world to see what progress Kenya has been making.
He urged the private sector to partner with AGRA and AGRF to take advantage of the opportunity to showcase Kenya’s leadership in agriculture and seek investors to invest in Kenyan companies.
“The private sector which leads in innovation in Africa plays a role in investing to support farmers’ access to the right yield enhancing technologies (seed, fertilizer, and crop protection chemicals), finance, markets, post-harvest technologies, irrigation, and mechanization services,” Desalegn said.
Agnes Kalibata the President, Alliance for a Green Revolution in Africa said Africa should move away from being synonymous with hunger since we are not a hungry continent and have best resources in the world, hardworking people and we are working on the best private sector ever.
“Kenya will bring the whole world to Kenya in this upcoming meeting and our aim in the food systems is about recognizing that our environment also needs us to pay attention on what we are doing and that we cannot just produce food and go about business without recognizing that the environment is begging to buckle under the weight we are putting on it.
She added that the forum is designed to energize political will and advance policies, programs and investments required to achieve an inclusive and sustainable agricultural transformation across the continent.
“The forum works explicitly to help African countries and the continent make continuous progress to achieve the visions set in the Malabo Declaration and related Comprehensive Africa Agriculture Development Programme (CAADP), the Sustainable Development Goals (SDGs), and Africa’s Agenda 2063,” Kalibata said.
Jennifer Baarn, Head of partnerships AGRA said they are expecting 500 participants as well as 10,000 people from 150 countries participating virtually between 7 and 10 of September,
“The forums will be looking at value chain development, SME development, looking at business models providing for farmers, and transactions that help the small holder farmers. If we don’t support small holder farmers and SMEs we will fail in agricultural transformation”, she said.
According to the FAO latest report on The State of Food Security and Nutrition in the World 2020 we are off track to achieve the commitment to end hunger, food insecurity and all forms of malnutrition by 2030.
Last year, the COVID-19 pandemic, as well as unprecedented desert locust outbreaks in Eastern Africa, have been obscuring economic prospects in ways no one could have anticipated, and the situation may only get worse if Africa does not take unprecedented action.

Source: Kenya News Agency

Some 50 ministers outlined their plans to reduce emissions and ensure that all people have access to electricity and clean cooking fuels, as the world transitions away from fossil fuels, towards renewable energy.
Laying the groundwork
The ministerial gatherings laid the groundwork for the UN High-level Dialogue on Energy that will be held on 20 September to accelerate action on the Sustainable Development Goals, in particular, on the energy goal, SDG 7.
UN Secretary-General António Guterres told the Forums: “We are running far behind in the race against time to achieve Sustainable Development Goal 7 by 2030, and net-zero emissions by mid-century.
He called on “every country, city, financial institution and company to raise ambition and submit ‘Energy Compacts’” for the High-level Dialogue.
Globally, nearly 760 million people lack access to electricity and 2.6 billion continue to cook with traditional fuels like wood that not only contribute to carbon emissions but also causes 4 million deaths each year from indoor smoke.
Record pledge
The commitment by the IKEA and Rockefeller Foundations is the largest single philanthropic commitment ever on this issue. A consortium of organizations led by Kenya, Malawi and the Netherlands also advanced a call to action for clean cooking.
During the Forums, more than 25 commitments were announced as “Energy Compacts” – voluntary actions pledged to achieve clean, affordable energy for all by 2030.
National Energy Compacts were previewed by ministers from Brazil, Denmark, the Dominican Republic, Germany, India, Nauru and the Netherlands.
A Compact setting a regional target of 70% renewable energy in the power matrix for Latin America, was signed onto by Chile, Colombia, the Dominican Republic and the Inter-American Development Bank, with other countries in the region invited to join.
Big business buy-in
The ambition of governments was met by strong private sector engagement, with tech giant Google reaffirming its commitment to source carbon-free energy for all of its operations in all places, at all times, by 2030.
Joining them were companies from the hard-to-abate cement sector – Ultratech and JK Cement – which made commitments for increased use of renewables and waste heat recovery systems for greater energy efficiency. India’s largest power supplier, NTPC, pledged to achieve 60GW of renewable energy capacity by 2032.
GOGLA, a global association for the off-grid solar energy industry, committed to delivering improved electricity access for 1 billion people by 2030.
And the Association for Rural Electricity said it would work with the private sector to deliver sustainable electricity services to at least 500 million additional people.
A number of region and city networks said they will be putting commitments on the table for the September Dialogue, with the Basque region of Spain and the City of Ithaca, New York, announcing forward-looking Energy Compacts this week.
Youth leadership
At the Forums, young activists showed that they continue to lead from the front on energy and climate issues, with several strong keynote statements from youth calling on governments to take action.

Source: United Nations

ABSA Bank of Kenya, in partnership with the County government of Embu through Kenya National Chamber of Commerce and Industry Inter- county Mentorship forums is set to boost women businesses.
County Executive Member in charge of trade, Dr. Joan Mwende while addressing the media today said many women businesses in the county were adversely affected by the corona pandemic.
Dr. Mwende however said the county government of Embu has laid strategies that will help revive and sustain businesses such as through waiving business licenses.
The CEC observed that with the waiver of licenses they aim to revive many businesses and also cushion others against collapsing.
She further noted they are partnering with ABSA bank to sensitize women to grasp opportunities offered by the government and private financial institutions to boost their businesses.
Dr. Mwende noted that many women are shying away from taking loans to expand their businesses for fear of mode of repayment.
She called upon other investors in Embu to take the initiative of helping the women in the county to boost their businesses.
ABSA Business Banking Director, Elizabeth Wasunna said the ABSA bank is not only facilitating women getting credit facilities but also providing necessary information and education on how to do business.
Wasunna said they are demystifying bank terminologies that scare away women from approaching banks for credit facilities.
The director added that they are also advising the women on how to restart closed businesses as well as how to save better in future.
Sister Josephine Ndege, Director Our Lord of Consolata in Embu, who is one of the beneficiaries of the program said women play a key role in job creation and economic growth hence need to be supported.

Source: Kenya News Agency

Telkom customers will get to enjoy a lifetime value of 1 GB of Mobile Internet Data and 100 minutes of talk time to make Telkom –to-Telkom calls for free monthly.
The offer dubbed ‘Madaraka Life’ will also have the Telkom customer as part of the company’s commitment to ensure easier access to its services, registered to T-Kash, Telkom’s mobile money service.
The customer will receive an instant cashback of Sh50 to their mobile wallet, upon successful registration.
This move follows Telkom’s announcement on the eve of this year’s Madaraka day when the company stated that it would be offering Kenyans important access to their own digital independence, for Madaraka season and beyond.
Telkom’s Chief Executive Officer, Mugo Kibati said making calls and connecting to the internet are now a basic need for all due to the increase of virtual communications.
“Telkom is therefore making this commitment to empowering Kenyans with this digital independence, giving them easier access to essential technology services that continue to simplify lifestyles,” said Kibati
He said Madaraka Life is in line with the spirit of Madaraka, valuing Kenyan freedom and giving them the opportunity to pursue their goals independently.
Kibati noted that despite the capital–intensive nature of Telkom’s network expansion plan, they commit to becoming the technology partner of choice, with wider coverage and provision of high-quality services to the customers.
“All our customers need to do is to keep their Telkom lines in their phones for them to enjoy this amazing lifetime offer and many more to come,” added Kibati.
In May, Telkom announced the integration of T-cash with the government digital services platform, e-Citizen.
This integration will enable Telkom customers to make payments for a number of services including those offered by the National Transport and Safety Authority (NTSA), Directorate of Criminal Investigations, Business Registration Service, Immigration Services, Civil Registration Department, Office of the Attorney General, Higher Education Loans Board (HELB), The Kenya Revenue Authority (KRA), and National Construction Authority.
Telkom is the first network in Kenya to introduce such an offer, making Mobile Internet Data and talk time accessible to more Kenyans.

Source: Kenya News Agency

Kenya Revenue Authority (KRA) is estimated to collect Sh 6.8 trillion over the period 2021/22 to 2023/2024 financial years.
According to KRA, through its 8th Corporate Plan whose theme is Revenue mobilisation through tax simplification, technology driven compliance and tax base expansion, that was launched on Thursday at Times Tower, Nairobi, it is expected that the exchequer will rise from Sh 1.76 trillion in 2021/22 to Sh 2.5 trillion in 2023/24.
Through the target revenue collection, the Authority is expected to sustain an annual average growth of 16.9 per cent over the period in which nominal GDP growth is also projected to grow at 11.2 per cent.
To increase revenue collection and achieve the set target, KRA will expand the tax base by tapping into new taxable income sources. Key focus as highlighted in the Corporate Plan will be on sectors with potential for revenue growth, such as real estate, businesses in the Turnover Tax (ToT) regime, registered companies, agriculture sector, employment sector, High Net- worth Individuals (HNWI) and the digital economy.
The Authority aims at increasing the number of active taxpayers by an additional 2 million. Through its Customs & Border Control Department (C&BC), KRA will also focus on enabling trade across borders through facilitation of legitimate trade by effectively monitoring both land and sea borders and strengthening of the Authority’s Marine Unit. KRA will also improve pre-arrival cargo clearance using its Integrated Customs Management System (iCMS).
Speaking during the launch of the 8th Corporate Plan, KRA Commissioner General Mr Githii Mburu said that the Authority is up to the task amidst various challenges that range from an upcoming general election in 2022, post-Covid-19 recovery measures and a growing informal sector that is hard to tax. However, strategies identified in the 8th Corporate Plan will be geared towards taxing the sector.
He said that the achievement of the 8th Corporate Plan deliverables will be supported by the six (6) thrusts: revenue mobilization, tax base expansion, simplification of the tax regime, application of cutting-edge technology, performance oriented and ethical organization culture and strategic partnerships to bolster compliance.
CS National Treasury Mr Ukur Yatani lauded KRA for its achievements during the 7th Corporate Plan (2018/2019 -2020/2021) period. Key achievements he said include the growth of the active taxpayer base by 55 per cent, from 3.94 million in 2018/19 to 6.1 million.
Revenue collected during the plan period was Sh4.849 trillion, a 21 per cent growth compared to the 6th Corporate Plan period in which total Kshs4.000.8 trillion was collected.
KRA registered an improved performance despite the outbreak of the COVID-19 pandemic that cropped up in early 2020 leading to the emergence of new business models, increased use of the digital platforms for transactions and growth in the hard-to-tax sectors, such as the informal sector.
Other strategies that KRA aims to implement during the 8th Corporate Plan period include; simplification of the tax regime to ease compliance and service delivery, application of cutting-edge technology in revenue mobilization, strategic partnerships to bolster compliance, facilitating and motivating staff for enhanced productivity by emphasising on ethical conduct and professionalism by all staff. Key focus area will be enhancing the staff performance management and value-based culture.
The 8th Corporate Plan will be implemented in the period 2021/2022 – 2023/2024.

Source: Kenya News Agency

The Cooperative movement SACCOs has been challenged to tap into all sectors of the economy to promote entrepreneurship activities among the Small and Medium Enterprises (SMEs)
Speaking during a Cooperative Alliance of Kenya (CAK) national supervisory and audit committee workshop in Tsavo, Director Cooperatives banking division at the cooperative Bank Vincent Marangu said it was critical for the SACCOs to widen their scope now that the country gradually opening up for business after the Covid 19 pandemic push the economy to the precipice.
He urged the SACCOs to take advantage of the relief the government offered in the 2021/22 fiscal budgetary allocations to widen their net sectors that were traditionally not fully exploited especially those in the agricultural and infrastructure sectors.
“Looking at what the government has done in the budget such as increasing allocation in agriculture sector and also housing, cooperatives can tap and benefit from this “, he said.
He singled out the coffee, tea and even dairy sectors which had potentials to reap great benefits saying the stabilization of the dollar will assist the cooperatives to tap into that.
“This meeting comes at a time when the economy is on recovery mode, the global market is opening up and there is optimism that international trade may resume fully”, he said
Marangu further noted the outlook was very promising for the cooperatives societies in housing after the government pumped additional funds to facilitate provision of affordable housing adding that the current budget emphasized on bridging the deficit gap in from previous allocation.
“We are going to see a lot of demand by government on internal borrowing but it will not be good for private financial institutions especially those with surplus idle liquidity who can benefit from other types of investment due to the increase for appetite for funding.
He expressed optimism that cooperatives will remain as resilient just like in 2008/09 global financial crisis where they demonstrated stability against the storm
“Under the Covid-19 pandemic, this cooperatives has withstood and we expect them to offer lending carefully to be able to recover the loans and the future looks very promising for those who play their cards well”, the Director said .
Deputy Director Reports and Data management at the Ethics and Anti-Corruption Commission (EACC) Susan Kinyeki on her part said the commission would partner with CAK to address and thaw out some of the malpractices detected in the sector..
“We have gotten reports on malpractices, some are under investigations while others we have referred them to multi- agencies”, she said.
Kinyeki explained that for the last 5 years the commission has received over 300 reports on malpractices and that currently over 50 of them are under investigations.
“We are advising the cooperatives to identify risk areas in their SACCOs and mitigate them. We are better off doing corruption more than investigations and we ask them to put risk mechanism in place.
Daniel Marube, the Executive Director and CEO of CAK said the supervisory and audit meeting today is to ensure proper financial management in the cooperative societies.
He noted that the audit committee members play a key role as oversite role on behalf of members to see and check on how the management and staff are running the affairs of their cooperatives
“In order to maintain their role and confidence and faith in financial sector, we need to strengthen and equip the supervisory members on how they can execute their mandate in strengthening the good governance so that we do not have ethical and audit issues in our SACCOs”, he said .
Marube noted that during the meeting the main key areas the supervisory and auditors need to look at in order to minimize the risk is in areas of ICT, Cyber security or even how to detect fraud.
“Supervisory members working and providing services to cooperative societies should be able to be equipped with the necessary tools to become good auditors and good financial managers in order to safeguard the resources of our members”, the CEO said
The three day meeting is running under the theme “ the role of the supervisory committee members in the cooperative in bringing transformation and good governance and prudential financial management, in cooperative societies”.

Source: Kenya News Agency

This paper analyzes the potential for fintech to facilitate cheaper and more efficient remittances, and to enhance financial inclusion in Central America. Digital remittances remain nascent in the region, primarily reflecting behavioral inertia, small cost advantages of digital over traditional channels, and inadequate financial literacy. Through expanded alliances between traditional and fintech operators, digital remittances can further reduce transaction costs and reach those remote, low-income households in a timely and secure manner. A meaningful expansion of fintech remittances necessitates an enabling regulatory environment for digital financial services, and KYC and AML/CFT requirements proportionate to the value of transfers.

Source: IMF

Kenya was hit by a third COVID-19 wave in March and April 2021, with renewed containment measures eased in May as the case count moderated. In mid-May, Kenya’s COVID-19 vaccination program faced serious challenges on delays in international vaccine shipments. The authorities are redoubling their efforts to mobilize support and now aim to inoculate 60 percent of the population by mid-2023. General elections are planned for August 2022.

Source: IMF

Machakos County Assembly has unveiled a Sh12.05 billion budget for the 2021/2022 financial year, with the county targeting to collect Sh1.5 billion in revenue.
Speaking while presenting the budget estimates to the Assembly, Machakos Deputy Governor Eng. Francis W. Maliti said this year’s fiscal framework has been revised to take into account the adverse impact of the covid-19 pandemic on revenue performance.
Eng. Maliti who also doubles as County Executive Committee Member-Finance and Economic Planning noted that this year’s county budget estimates were projected at Sh12.05 billion, comprising Sh8.28 billion as recurrent expenditure while development expenditure was estimated at Sh3.77 billion. Last year, the county budget estimates were projected at Sh11.01 billion.
“In this respect, the 2021/2022 budget targets Own Source Revenue collection of Sh1.5 billion as compared to Sh1.7 billion in the financial year 2020/2021. Other revenues include Sh9.16 billion equitable share and Sh1.39 billion conditional grants,” read the Budget statement in part.
The CEC said that the spending priorities for these Budget Estimates have been informed by the efforts being made by the National and County government to stabilize the economy in a concerted effort to alleviate service delivery and contribute immensely towards improving the lives of our citizenry.
“I am happy to inform this honorable house that the County has fully adopted the Big Four Agenda especially in areas of enhancing food and nutrition security, achieving universal healthcare and job creation,” said Eng. Maliti.
The DG noted that the outbreak and rapid spread of COVID -19 pandemic necessitated an urgent need to upscale provision of affordable health services by providing free Covid -19 testing as well as sensitizing the public on the health protocols and guidelines through sensitization forums in schools, markets and places of worship.
“To consolidate these achievements Madam Speaker, I have allocated Sh4.3 billion to the health sector which includes Sh132.2 million for construction and completion of health facilities, Sh34.5 million for equipping of health facilities, Sh8.1 million to cater for emergency services and Sh355.6 million for medical supplies,” he said.
The transport sector will receive Sh1.1 billion, which will comprise of Sh170 million for major roads, Sh362 million for grading of rural access roads, Sh102 million for airstrip and Sh175 million for the completion of government building.
He noted that attainment of food and nutrition security was necessary in developing a holistic human capital base that would in turn increase productivity and enhance economic development adding that Government has been implementing various measures such as provision of subsidized certified seeds and fertilizers, free tractor services, training farmers on post-harvest management and establishing demo-farms.
“To continue supporting these initiatives Madam Speaker, I have set aside Sh400 million for relevant programmes in this budget. Out of this, Sh28 million has been proposed for the Emergency Locusts Response, Sh30.9 million for the Agricultural Sector Development Support Programme II (ASDSP II) and Sh9 million for crop diversification.
“Madam Speaker, in order to increase agricultural productivity and enhance resilience to climate change risks in targeted smallholder farming, I have set aside Sh354 million for Climate Smart Agriculture in the County,” he added.
To improve livestock production and control diseases, the county proposes Sh9.5million for purchase of certified pasture and breeding stock where Sh2.6 million has been set aside for purchase of vaccines for free mass vaccination while the Information, Communication and Technology Sector receives Sh6 million.
“Madam Speaker, in keeping with the Bill of Rights which states that water is a basic right, I have allocated Sh84.8 million for drilling, equipping and completion of boreholes, Sh50.6 million for water storage and supplies while Sh65.4 million is for construction of dams and water pans.
To continue investing in youths, the budget estimates propose an allocation of Sh50 million for the rehabilitation of Vocational Training Centers and Sh48 million for Early Childhood Development Education infrastructure.
The budget estimates propose Sh80 million for bursary fund and establishment of a revolving fund Sh40 million for women and persons living with disability while Sh75 million has been allocated in order to mitigate and adapt to climate change.
In addition, Sh65 million was allocated for the completion of Ikombe, Kinyui, Masii, Mavoko and Kenyatta Stadium stadiums which are at different levels of completion.
“Going forward Madam Speaker, to stimulate recovery of the tourism sector, the County through marketing and partnering with development partners will invest in conference facilities, set up of amusement parks, clubs, casinos, theatres and film development,” he added.
According to the Finance CEC, the County Integrated Development Programme informs the budget for 2018-2022 whose strategies were aligned to National Development Plans.

Source: Kenya News Agency

Over Five million Micro, Small, and Medium Enterprises (MSMEs) are anticipated to benefit from the United Nations (UN), Kenya Government and Equity Group partnership launched today. The partnership will create an opportunity to innovate, co-create and expand
Opportunities for wealth creation for the Kenyan people and the economy.
The partnership involves Equity Group, Equity Group Foundation, the United Nations system in Kenya, and its Sustainable Development Goals (SDGs) Partnership Platform.
The aim of the partnership is to accelerate the achievement of the Sustainable Development Goals (SDGs) in Kenya by 2030.
Speaking during the launch, Equity Group Managing Director and CEO, Dr. James Mwangi, said that Equity is joining the alliance as the implementation partner for various social impact initiatives aligned to the SDGs, with the aim of trickling down to the local communities.
“We will deploy USD 6 billion on the SDGs Partnership Platform and we expect 5 million MSMEs to benefit from this financing within the region whereby these enterprises will create at least 5 jobs each,” said Mwangi.
He noted that the engine of the job creation is enterprises which will also create market for the raw products from the communities and address the issue of unemployment.
Dr. Mwangi, said that the existing partnerships with UN agencies have proven to be mutually beneficial to their common objectives of socio-economic development through the transformation of lives and livelihoods.
“Alongside UN agencies and Government in our Social Protection work we have supported 3.3 million refugee and vulnerable beneficiaries and provided USD 852 million, as well as capacity building, to advance their financial inclusion. “Reiterated Dr. Mwangi.
UN Resident Coordinator for Kenya, Dr. Stephen Jackson, during the launch said, by partnering with Equity, they can now offer tremendous value to the local communities further noting that they have identified sub-sectors and discovered that there are growth opportunities across various market segments.
Equity Group whose purpose is to transform lives, give dignity and expand opportunities for wealth creation, continues to play a leading role in contributing to the achievement of the 2030 Agenda on the SDGs.

Source: Kenya News Agency