Kenya Insights

Author: Nicholas Olambo

  • UK inherits Sh2bn SportPesa company’s assets

    UK inherits Sh2bn SportPesa company’s assets

    The government of the United Kingdom is set to inherit Sh2 billion worth of assets held by SPS Sportsoft Limited, a gambling software and support services company which owns SportPesa.

    SPS Sportsoft’s top client is Kenya-based Pevans East Africa Limited which shut down it’s operations in 2019 after the Kenyan government declined to renew its operating licence over tax evasion scandals.

    “The Registrar of Companies gives notice that, unless cause is shown to the contrary, the company will be struck off the register and dissolved not less than two months from the date shown above…  Upon the company’s dissolution, all property and rights vested in, or held in trust for, the company are deemed to be bona vacantia, and will belong to the Crown.” SPS stated.

    Bona vacantia translates to vacant goods or ownerless assets. In the UK such assets  including those of dissolved firms and estates of people who die without a will or blood relatives are inherited by the government.

    SPS has note disclosed the reasons why it is being liquidated but it has suffered losses Kenya where shareholders are embroiled in wrangles. Pevans was the biggest client generating upto £20.6 million (Sh3.1 billion) in 2018 and accounting for 96% of the total revenue of £21.6 million (Sh3.2 billion).

    Other clients operating SPS include SPGHL’s subsidiaries which also trades under the Sportpesa brand in Tanzania and South Africa. The firm’s dissolution means that assets worth £13.2 million (Sh2 billion) that will be surrendered to the UK government.

    SPS’s creditors also risk losing upto £8.5 million (Sh1.2 billion) that they were owed in the review period. It was required to publish its 2019 accounts by December last year but did not meet the deadline pushing the authorities to have it liquidated without the release of its updated financial statements.

    The fall of SPS is a mojor blow to Kenyan businessmen Asnath Maina and Paul Ndung’u and Asenath Maina who fell out with their Bulgarian counterparts over control and ownership of SportPesa.

    Pevans’ operating licence was revoked in July 2019 over unpaid taxes and penalties that now stand at Sh95 billion according to the Kenya Revenue Authority (KRA). It was the second largest company by revenue with close to Sh150 billion in 2018, only coming second to Safaricom.

    But the Bulgarian investors later teamed with Ronald Karauri, Pevans’ chief executive office to form Milestone Games Limited where they transferred the SportPesa trade name. Sportpesa brand was moved from Pevans to SPGHL for £100,000 (Sh15.1 million) and then to Milestone in transactions that began on June 2, 2020.

    One Kalina Karadzhova acted for SPGHL Mr Karauri signed the deed of assignment on behalf of Pevans but it later emerged that Karauri controls close 55% stake in Milestone.

     

  • Inside JichoPevu’s war with former allies

    Inside JichoPevu’s war with former allies

    The vocal Nyali MP Mohamed Ali aka Jichopevu is embroiled in a bitter war with the men who managed his 2017 campaigns.

    His former chief campaigners are now ganging up with his political rivals like the family of Mombasa governor Hassan Joho and other Deep State toadies like the ODM party whose candidate he beat in 2017.

    JichoPevu is former ODM ally who was rigged out in shambolic party primaries where Joho’s cousin (Said Abdalla) was favored but Ali still went on to clinch Nyali seat as an independent candidate. Infact he won against the hype and influence Joho, Raila Odinga and ODM had in Mombasa at the time.

    Ali then became a full time ODM critic in post 2017 politics where he is associated with UDA Party and the deputy president, Dr.  William Ruto, who will face off with Raila Odinga for presidency in 2022.

    He is one of the vocal and visible politicians championing UDA politics and DP’s ‘Hustler narrative’ in Mombasa where ODM still has a considerable support.

    Said Abdalla [p/courtesy]
    Ali also brags that he has performed better than former ODM MPs who did nothing for the constituency.

    The MP has been sharing photos of rehabilitated schools online earning him support from a good section of the electorate who are praising him for properly implementing projects through the NGCDF.

    Ali was however criticized by a section of Kenyans last year when he announced through tweeter that a soon-to-be-opened girls high school in Nyali was named after him.

    “The First Girls Sec School in Nyali constituency since independence opening its doors on 13th Jan 2020. #MjingaNimimi,”Ali wrote in a tweet accompanied by pictures of the school.

    Netizens who were not impressed with the move argued that the school deserved a neutral name since it was built using public funds.

    But his former chief campaigners argue that he as underperformed and only sharing the same old photo to hoodwink the people. They also accuse Jichopevu of refusing to assist bereaved families in Nyali Constituency, a role the MP says is not part of his job.

    And that bitterness is expected to extend to the ballot where they have vowed to teach Ali a lesson. They will gang up behind ODM’s Said Abdalla, the Mr. Money bag who is also implementing community projects targeting the youth.

    Jichopevu will also face Millicent Adhiambo, Mark Osewe and Joshua Andere who will divide the ODM vote in Nyali and hand him an easy win.

     

     

     

     

  • KAA assets facing auction over Sh37bn debt

    KAA assets facing auction over Sh37bn debt

    The Kenya Airports Authority (KAA) is at the brink of having its assets seized and auctioned by contractors who are pursuing a piling Sh37 billion debt against the State agency.

    KAA owes both local and foreign contractors the billions of shillings in claims following cancellation of contracts, variation of contracts, interests on delayed payments and accrued fines. The claims are at different stages of arbitration tribunals at Court of Appeal and the High Court.

    Data shared with the National Assembly’s Public Investments Committee (PIC) shows that KAA had a contingent liability of more than Sh36.9 billion by the end of 2016/2017 financial year.

    Most of KAA’s debts is owed to Chinese firms that it hired when rehabilitating the country’s major Airports. The biggest liability being the Sh17.61 billion that Anui Construction Engineering Group and China Aero-Technology International Corporation (Catic) jointly slapped on KAA after it cancelled a Sh64 billion greenfield terminal project at Jomo Kenyatta International Airport (JKIA).

    The agency cancelled the greenfield project on grounds that it lacked adequate funds to oil the project after making an advance payment of Sh4.2 billion to the Chinese firm which moved to court to demand an additional Sh17.6 billion for the project that never took off.

    World Duty Free also instituted a case in 2013 where it is demanding Sh4.93 billion from KAA for breaching of a March 1989 agreement that granted them exclusive rights over duty-free shops at the country’s major airports.

    KAA managing director, Alex Gitari told the parliamentary committee chaired by Mvita MP Abdulswamad Nassir that they appealed against the 2012 award that directed it to pay Sh4.94 billion ($49,096557) in 2018. Sinohydro Corporation is demanding Sh1.5 billion from KAA for the construction of a Sh6.2 billion runway and refurbishing of aircraft pavement at the JKIA.

    Gitari argued that the projects were done in phases subject to availability of funds but the contractor in 2019 presented a claim of Sh1.53 billion for outstanding certificates, interests accrued on delayed payment, tax refunds, retention money, and idle resources after KAA suspended the works.

    He was categorical that no legal proceedings have been instituted against the authority but the parties are considering negotiations to break the impasse. KAA is also under immense pressure from the Kenya Revenue Authority (KRA) who is demanding a Sh4.2 billion tax claim.

    Others who have either issued demand notice or slapped KAA with hefty bills include Doch Company Ltd (Sh955 million), Mitu-Bell Welfare Society,Patrick T Kanyuira (Sh1 billion) Mission Logistics (Sh719.7 million) and Machiri Limited Sh388 million.

    Chinese firm Catic is demanding payments through three different claims of Sh939 million, Sh882 million and Sh486 million, Baseline Architects and three others Sh404 million, Queens Quay Architects International Inc. Sh335 million, China Overseas Engineering Group Sh388 million and  Moniks Agencies which is demanding Sh319 million.

  • UDA politicians want Mutyambai out over Laikipia attacks

    UDA politicians want Mutyambai out over Laikipia attacks

    Thirteen politicians allied to the United Democratic Alliance (UDA) are calling on the Inspector-General of Police Hillary Mutyambai to resign for failing to end the deadly violence and killings in Laikipia.

    The lawmakers led by the vocal Kandara MP Alice Wahome accused Mutyambai of laxity in the violent conflict in Laikipia where a dusk to dawn curfew has been imposed as police fights to flash out armed herders who have attacked the region. Wahome said the manner in which the IG is handling the crisis is exposing his incompetence.

    Another UDA ally, Mathira MP Rigathi Gachagua also called on Mutyambai to take full responsibility of the skirmishes and resign as Laikipia Senator John Kinyua challenged the State to deploy the military to contain the situation.

    “The work of any government is to protect its people, if it cannot protect its people then what else can it do?” Kinyua posed.

    Hillary Mutyambai, Inpector-General of police in Kenya [p/courtesy]
    The politicians who spoke at Parliament buildings want the government to resettle all the victims of banditry attacks in Laikipia county even as it jails rogue politicians who are inciting residents to violence.

    This comes barely a week after the same bunch of politicians criticized the State and the police boss for downgrading the security details attached to the Deputy President William Ruto. The debate that followed the incident pushed DP’s Chief of Staff Ken Osinde to write to the IG as he sought explanations for the withdrawal of GSU officers from Ruto’s official residence.

    But Ruto downplayed the saga during a campaign meeting at Karen where he ‘advised’ Mutyambai to deploy the officers in areas that need serious security enforcement like Baringo and Laikipia which are under banditry attacks.

    UDA allies are making their demands as Interior CS Fred Matiang’i maintains that the government is dealing with the situation and hunting down the  criminals who are terrorizing residents of the Olmoran area in Laikipia. He also claimed that security officers on the ground have taken full control of the situation.

  • Marriott: Bandits not using British Army weapons in Laikipia

    Marriott: Bandits not using British Army weapons in Laikipia

    The British High Commissioner to Kenya British High commissioner Jane Marriott has refuted claims that BATUK weapons are circulating in Kenya and being used by bandits behind the deadly skirmishes which are being witnessed in Laikipia County.

    Britain has been training upto 10,000 troops at it’s Nyati Barracks – British Army Training Unit Kenya (Batuk) in Nanyuki which is located in Laikipia, Kenya.

    Ms Marriott claimed that they do a 100% daily quantity check as she stressed that their units exercising with Batuk do not use M16 rifles. Her defense comes barely 48 hours after Rift Valley Regional Commissioner George Natembeya suggested that the bandits terrorizing Laikipia are armed with M16 rifles which are commonly used by foreign forces training in the area.

    Natembeya was puzzled of how such lethal weapons got into their hands of the herders as he called for thorough investigations to unearth criminals behind the attacks which have claimed the lives of three police officers and seven locals.

    “The guns that these bandits are using are mighty. They are called M16. Most of them are only used by foreign troops who come to train in Kenya,” Natembeya said.

    But he recanted his statements on Wednesday to avoid rubbing British Army the wrong way when he claimed that such lethal weapons might have been smuggled into Kenya from war torn places like South Sudan and Northern Uganda.

    M16 rifles can shoot over a range of 3.5 kilometres and can release 60 rounds of ammunition within a minute, which translates to one bullet per second.

    Laikipia was declared a disturbed security operation area after the National Security Council met on Monday and two days later another meeting was held by the National Security Advisory Committee after which Interior CS Fred Matiang’i declared a dusk to dawn curfew in the area.

    Efforts to restore peace has seen the arrest of two local politicians including former Laikipia North MP Mathew Lempurkel and Tiaty MP William Kamket who have been charged with incitements.

     

     

  • Tiaty MP’s links to Laikipia skirmishes

    Tiaty MP’s links to Laikipia skirmishes

    Detectives from the Directorate of Criminal Investigations (DCI) have arrested Tiaty MP William Kamket and driven him to Nakuru where he will be interrogated over his role in plotting the deadly skirmishes currently being witnessed in Laikipia and Baringo counties.

    Baringo County Police Commander Robinson Ndiwa confirmed the arrest of the controversial law maker who will answer to charges of incitement regarding the chaos being witnessed in Laikipia which has been invaded by dangerously armed herders who come from his constituency.

    “Today, we have arrested Tiaty MP where the herders come from. Those herders are the people who have been employed to look after the animals for prominent people, the MP being included ……So we arrested the MP to come and answer the charges of incitement and clashes in regard to what has been going on in Laikipia and Baringo.” Ndiwa said.

    Ndiwa also said that the police has launched an operation but they are facing heavy resistance from the armed herders who are leading the banditry attacks which have claimed ten eights lives.

    According to Rift Valley Regional Commissioner George Natembeya the bandits killed five civilians and three police officers who deployed to enforce security in Laikipia. Natembeya who spoke on Wednesday claimed that the deaths occurred before the security operation began on Tuesday as public raised complaints that police only came after one of their own was killed.

    The state is making efforts to neutralize the armed herders who have invaded the region. National Security Council also sat and declared Laikipia a disturbed and a security operation area, just two days after the National Security Advisory Committee held a meeting.

    The gang which is on a killing spree invaded private ranches in Laikipia last weekend and torched more than 40 homes in the area. Interior Cabinet Secretary Fred Matiang’i who weighed in on the matter said an operation will also be conducted at the Laikipia Nature Conservancy as he declared a dusk to dawn curfew in the area.

    Locals with animals grazing in the ranches were given two days to remove them as officials accused politicians like Kamket, a judge, senior military officer, and police officers of illegally moving livestock into Laikipia conservancy.

  • Inside Nyaribo’s mass demotion of county employees

    Inside Nyaribo’s mass demotion of county employees

    Business at the Nyamira County headquarters came to a stand still after Governor Amos Nyaribo released the names of staff members who were promoted through dubious means. The governor who was flanked by members of his kitchen cabinet exposed over 1,000 employees, mostly women, who were promoted after paying bribes or engaging in sexual relationships with top officials who worked with the late governor John Nyangarama.

    Nyaribo demoted all the staffers who benefited from the illegal and irregular promotions as his administration resorts to recovering all the money they earned through the illegal promotions. The recovery is set to start from the August salaries which will affect employees from all the 10 departments in Nyamira County.

    An audit report presented to the CECMs by the governor shows that all the illegal promotions were hurriedly done through computers and that there was no evidence of the relevant departments awarding the job grades to the affected workers.

    The report also revealed that most of the staff members earned higher grades without going through the requisite procedures as stipulated by the Kenya Human Resources Policies and Procedures Manual for the Public Service 2016.

    Nyaribo pointed out a case where nearly 150 employees earned more than two promotions in less than three years including a case where a female officer was promoted every year between 2016 to 2019 from job group K in March 2016 to job group L in 2017, job group N in October 2018 and to job group P in March 2019.

    The report further revealed a case where an officer who was serving in job group K in March 2016 jumped to Group L in October 2017, to Group N in January 2018 and to job group P in November 2018. Another member of staff serving in job group J in 2016 was also illegally promoted to job group L in January 2021 and hurriedly to job group N in February 2021.

    Governor Nyaribo told the  demoted employees to move to court if they were not satisfied with the verdict as he vowed not reverse the decision even if it means being voted out in August 2022 general election.

    Affected employees have, however, dismissed the demotions and plans to recover the money as they vow to challenge the decision by the governor in court after the county public service board also disowned the promotions it effected. Nyaribo was supported by a section of the MCAs led by Bomwagamo MCA Charles Barongo who gave the move a thumps up.

     

     

  • Cost of Justice rises in Kenya as Judiciary hikes court fees

    Cost of Justice rises in Kenya as Judiciary hikes court fees

    Kenyans will now pay more than double for court services after the Judiciary revised its fees and hiked the cost of litigation as seen in the new fees schedule published by Chief Justice Martha Koome who also introduced extra costs including charges for lodging of documents.

    All applications filed at the High Court except criminal matters have doubled from Sh750 to Sh1500 while registration of arbitration awards related to disputes at the Environment and Lands Court is now charged at Sh10,100, up from Sh2,250.

    The hiked fee announcements are made as the Judiciary struggles with a marginal cut on it’s 2021/22 budget from Sh18.1 billion to Sh17.9 as a section of Law Society of Kenya council raises concerns.

    “The move is working against what we in the justice system have been fighting for all along — access to justice and expeditious disposal of cases,” said Bernhard Ng’etich, an LSK council member.

    The revised charges have also affected court library membership and annual subscriptions which have doubled from Sh500 to Sh1,000 and a Sh500 charge has also been introduced for notaries public annual renewal while affidavit application fees at the magistrate’s court has been retained at Sh1,000.

    Chief Justice Koome has also introduced a fee of Sh450 at the Anti-corruption and Economic Crimes division for filing a notice of appeal to the Court of Appeal. She has also introduced a fee of Sh1,500 for court collection fees on deposits and security for costs.

    But for commercial and tax cases filed at the High Court, Koome has introduced a fees of Sh1,550 for any appeal or review from lower courts and tribunals as filings of response for income tax appeals are now charged at Sh100.

    Kenyans seeking justice at the High Court will pay a minimum fee of Sh2,000 for an unliquidated claim, originating summons, or counterclaim and additional court fees will be paid based on the amount awarded after the case is heard and determined.

    Koome further introduced a fee of Sh300 for filing of a response to the bill of costs as the fees for instituting a private prosecution at the High Court remains at Sh5,000 while at the lower courts it has been set at Sh1,485.

    The new charges are introduced amid complaints that service delivery at the judiciary has been affected due lack of sufficient funding but with the new charges, plans are also underway to hire more staff to automate its services.

    The CJ announced last month that the Judicial Service Commission (JSC) will hire 50 magistrates to boost its service delivery and case clear backlogs. She added that JSC will also increase the number of judges to replace the six judges who were recently elevated to the Court of Appeal.

    “We also need a multi-door approach like the use of Alternative Dispute Resolution and Court Annexed Mediation to offload cases from the courts,” Justice Koome said.

    Data shows that the Commercial and Tax Division, which had 7,497 cases as of June 30, 2020,  has cleared 3,744 while 2,315 new ones were filed, leaving a caseload of 6,038 as of June 30 2021.

    Anti-Corruption and Economic Crimes Division had 190 cases pending as of June 30, 2020, with 75 resolved while 62 new ones were filed over the same period but in the Family Division, 1,556 cases were resolved out of 4,519 and additional 2,621 new cases filed.

     

  • The mole Ruto planted in Mudavadi’s camp

    The mole Ruto planted in Mudavadi’s camp

    The outspoken Kakamega Senator Bwana Cleophas Malala is a confirmed DP William Ruto’s operative planted in Amani National Congress party’s inner circles to fetch secrets and pass to Ruto who bought him off when he was struggling to build his Kakamega home.

    Malala was introduced to the Deputy President by the former Sports Secretary, Rashid Echesa in 2016. He was lacking funds to build his house when when Ruto gave him Sh3 million shillings and several hand outs afterwards. But having his houses funded by other men is his thing, even his Kitengela home is said to have been funded by the flashy Mombasa governor Hassan Joho.

    He has financial relationships with the bosses of rival parties but still in Mudavadi’s ANC summit where he is not building but leak the former VP’s classifieds and strategies to political rivals. The first term senator and former Mahiakalo ward MCA now has eyes set on the county’s top seat which will fall vacant when governor Oparanya’s term expires next year.

    Malala plans to run on ANC party ticket where he pretends to be a die hard supporter of Wycliffe Musalia Mudavadi but he dines and wines with DP Ruto at night. He has been spotted leaving the DP’s Karen at the dead of the nights on several occasions.

    Senator Malala, DP William Ruto [p/courtesy]
    But this mole has been controversial like that even when he played the same role for ODM till August 2020 when their relationship ended in tears. Before his return from ODM, Malala was so defiant to Mudavadi that he even dared ANC party to occasion a senatorial in November 2019. He was hyped because the same ODM that unceremoniously kicked him out last year was ready to hand him a direct ticket then.

    He survived a possible expulsion from the party courtesy of ODM ties but later played the orange party when he signed a new snitching contract with the DP Ruto who wants to be Kenya’s next president.

    Malala went back to ANC last year and has been one of the most vocal leaders elected on ANC ticket who are pushing Mudavadi to go for presidency. But he is a Mudavadi man during the day and Ruto’s hench-boy at night. ODM leader Raila Odinga also accused him of pocketing handouts from competing camps in August last year when young senator complaint that gunmen were trailing him.

    He is now deep into UDA’s affairs in Western region and Kakamega where the DP appears to favor him over former Kakamega senator Boni Khalwale who is doing funeral politics with UDA leaders in Ukambani. Khalwale is also eyeing Kakamega gubernatorial seat through UDA ticket but Malala’s close friendship with Ruto might jeopardize his ambitions.

     

  • Court freezes accounts of corrupt Homa-Bay officials

    Court freezes accounts of corrupt Homa-Bay officials

    Corrupt workers of Homa-Bay county government have been frightened by the High Court’s decision to freeze bank accounts belonging to phony companies they used to siphon millions from county coffers through irregular contracts.  Hartland Enterprises Limited accounts  which is registered under James Mumali Oyuka and Mary Pauline Oduor had its accounts frozen for six months to allow the Ethics and Anti-Corruption Commission (EACC) detectives to carry out thorough investigations.

    The account held at the Cooperative Bank of Kenya which has some Sh13.5 million was frozen as the Assets Recovery Authority also moves to court to repossess all properties associated with Oyuka and Oduor including the ones that they registered under the names of their proxies.

    EACC said they have to preserve the money in the listed account for six months to avoid it  from being withdrawn, transferred, dissipated or disposed, a move that renders any application and any intended recovery suit invalid.

    The detectives uncovered how Hartland Enterprises has been fraudulently procuring contracts from Homa Bay County government as they cited a case in July 2019 when the firm entered into a contract with the county assembly for the construction of MCAs offices for Sh348 million. But drama ensued after it was found that land belonged to the national government and Hartland was still paid Sh26.9 million by the devolved unit even after contract was stopped.

    They further revealed that Oyuka and Oduor are employed at the county government of Homa-Bay where they work as Public Health Technician and Community Nurse respectively. Trail by the EACC shows that the duo received the money then withdrew some in cash, transferred some to personal accounts and handed some to senior officials like secretary Isaiah Ogwe and finance, economic planning boss Nicholas Koriko who head the dreaded cartel behind the theft.

    The detectives also revealed that they traced the huge amounts of money that went into Oyuka’s accounts from the county government which amounts to conflict of interest and abuse of office charges against Oyuka and Oduor.

     

  • UDA politicians want list of properties owned by all VVIPs

    UDA politicians want list of properties owned by all VVIPs

    Politicians allied to the Deputy President Dr. William Ruto now want Interio CS Fred Matiang’i to provide a list of properties owned by other VVIPs after he exposed details of properties owned by Ruto and the number of security details attached to them.

    He further exposed the details of Ruto’s security detail which he said is divided in three layers with the inner the layer consisting of 74 officers drawn from the presidential escort team, 5 highly trained GSU officers and six DCI who provide personal protection to the president’s principal assistant.

    Matiang’i said the second layer has 121 officers drawn from the Administration Police and Prisons Service who are guarding Ruto’s many homes while the outer layer provides security to DP’s businesses, economic life and places he spends most of his time.

    The CS who was in a politically charged session went ahead to reveal that 6 officers are guarding Ruto’s Kitengela Gas, ADC Laikipia Ranch 6, Dolphin hotel 6, Matter farm Eldoret 6, Weston hotel 6, Murumbi land 6,  Elgon View private residence 4, poultry Farm Eldoret 4, private Residence Eldoret 4 and Wilson Airport private hanger 4.

    Interior CS Fred Okengo Matiang’i [p/courtesy]
    Ruto had earlier stated that summoning Matiang’i over the downgrading of security detail guarding his official Karen was a waste of time as he called on parliament to address pressing issues like delicate security in northern Kenya where bandits are having a field day.

    “Parliamentary time should not be wasted on non-issues. The AP is a professional security service and those who think it’s a downgrade are wrong. Parliament should instead focus on deployment to serious security situations in areas where bandits are causing mayhem and destruction,” DP said in a tweet.

    But the DP ‘s office has dismissed Matiang’i list of some of the properties listed as false and reckless. Nandi Senator Samson Cherargei challenged the CS to provide a list of properties owned by all the VVIP’s and the number of police officers attached to them including the dead.

    Matiang’i was expected to explain to Kenyans why the State withdrew Ruto’s security but Matiang’i dodged the questions and Ruto’s for what looks like a political expediency move.

     

    The Law Society of Kenya President Nelson Havi also described Matiang’i and Interior CS Karanja Kibicho as grandmasters of alternative facts and lies. He also accused Matiang’i of hoodwinking the parliament after the CS evaded the fact that GSU officers at the offices and residences of Ruto were replaced with AP officers.

     

     

  • Kalausi man denounces links with UDA

    Kalausi man denounces links with UDA

    Former cabinet minister Dalmas Otieno has distanced himself from any links with the United Democratic Alliance party which belongs to the Deputy President William Ruto indicating that it is wrong to go against President Uhuru Kenya and ODM leader Raila Odinga to win a political seat in Luo Nyanza.

    Otieno emphasized that he has no ties with UDA only that his political rivals are using the fake UDA link to dim his chances of succeeding Migori Governor Okoth Obado in 2022. The former Rongo MP has expressed his quest to clinch the seat that has also attracted Senator Ochillo Ayacko who lost to Obado in 2017.
    The former KANU point man in Nyanza region also stated that he has never shown interest or been approached by any UDA operative to undermine the much hyped political handshake between the ODM leader and President Kenyatta.

    Otieno who sounds desperate to rely on Odinga’s wave to clinch Migori seat said he is backing progressive leaders who are preaching peace and unity for the sake of development and not UDA whose hustler narrative is unrealistic. He challenged his opponents to grow up and exercise maturity.

    The ex-minister was part of the short lived ‘Kalausi Movement’ which was out to challenge the support that Raila Odinga enjoys in the Southern Nyanza after the 2013 polls but he is now keen to run on an ODM ticket.

    Migori top seat has attracted political big wigs with some crafting alliance to succeed Obado whose term will expire in AUgust 2022. Apart from Otieno and Ayacko, former Suna East MP John Pesa and businessman Philip Mwabe will also participate in the male dominated race which has attracted only one female aspirant, Migori county woman rep Pamela Odhiambo.

    The battle to succeed Obado is expected to be between Ayacko and Otieno who are enjoying wavering support across the County but some candidates will also rely on Obado influence in their attempts to win the seat.

     

  • Cartels change looting tact in Siaya

    Cartels change looting tact in Siaya

    The deeply rooted cartel that has been looting from the coffers of Siaya County since 2013 have diversified their tact from breaching procurement regulations, quoting hiked prices and use of proxy companies to stealing staff pension funds, National Social Security Fund and National Hospital Insurance Fund statutory deductions.

    The new theft was first exposed by Asembo West MCA Ambrose Akuno when LapFund demanded notes made public by as NHIF struggled to trace Sh1 billion that was deducted from the staff payments but not been remitted for a year now.

    MCA Akuno who spoke through a local FM station also revealed that the cartel is run by rogue chief executive committee members who have bought off corrupt MCAs to let them loot. Many MCAs including Akuno were paid some 150k bribe to conceal the Sh 600 million theft.

    The revelations which came barely three weeks since the Directorate of Criminal Investigations ordered the finance department to avail them the records of key accountants from the department who are suspended for stealing county funds has also exposed the rotten theft in Governor Cornell Rasanga’s administration.

    The looting is presided over by finance chief officer Dennis Nyonje who swindled Sh600 million through fake allowances to rogue staff members in their looting ring. The hefty allowances are deducted but never remitted just like a portion of the Sh600 million loot which was paid out as bogus allowances to corrupt staffers who were used to pass the money to the accountants for kickbacks.

    Most of the accountants them invested their kickbacks in tippers, bulldozers and excavators with the plan to out to road contractors who beg for tenders at the county offices. The investments that don’t much their small salaries has raised eyebrows over the source of the overnight wealth.

    Ugunja MP Opiyo Wandayi who is waiting for the endorsement by ODM leader Raila Odinga to go for the Siaya gubernatorial seat also added that corruption is rampant at the finance office. Opiyo who chairs public accounts committee at the national assembly also complained that one of the biggest beneficiaries of Covid-19 stolen billions wants to oust him in Ugunja.

    But Nyony’e scheme was exposed by a contractor whom he used and dumped not knowing he was playing a well connected dirty fellow who is working for Rasanga who throws him lucrative tenders for huge kickbacks. The man is part of the powerful cartel that is estimated to have looted close to Sh8 billion since the onset of devolved units in 2013.

     

  • Auctioneers find no buyer for ex-Nakumatt CEO’s home

    Auctioneers find no buyer for ex-Nakumatt CEO’s home

    Auctioneers have failed to find a suitable buyer for the home repossessed from former chief executive officer of Nakumatt Supermarket, Atul Shah over a Sh2 billion debt owed to Kenya Commercial Bank Group.

    The high-end home located in Nairobi’s Lavington was put up for sale in July, nearly three months after the High Court threw out a petition that sought to overturn the forced sale by the lender to recover their money. The auctioneers attributed the failure to general slowdown of economy in real estate.

    Mr. Atul offered his Lavington home – a four-bedroom villa with a domestic servant quarters and a semi-permanent generator room as security in  2011 to account for Sh25 million in the multibillion-shilling loans the fallen retailer acquired from KCB.

    The property known as LR No. 5/134 (IR No. 49802) but commonly identified as House number 3 is located at Elite Gardens Estate in Muthangari while it’s title is held on a leasehold interest for a term of 45 years with effect from September 1, 1989.

    Phillips International Auctioneers demanded a refundable fee of Sh1 million from interested parties to obtain a bidding number and catalogue before the auction date. The auctioneers also demanded buyers to deposit 25% of the asking price by bankers’ cheque by the close of business of the auction date.

    “The balance will thereafter be payable within 90 days to the charges, failure to which auction deposit will be forfeit,” auctioneers said.

    The mega regional retailer which grew from a small mattress shop was at its peak in 2014, Nakumatt when it was valued at a whooping Ksh. 35B and had announced plans of cross listing in all regional stock markets in a plan that was set to materialize in 3-4 years.

    But in 2017 just before celebrating its 3oth anniversary, the retailer began shutting down branches across the country orchestrating its slow and unceremonious fall from regional glory to January 7, 2020 when it was liquidated.

     

  • Gikomba traders sue Nairobi county over perennial fires

    Gikomba traders sue Nairobi county over perennial fires

    More than 900 traders at Gikomba market have sued Nairobi County government demanding Sh20 billion in compensation over frequent fires that have razed the market and their property including stock.

    In a case at the High Court, the traders are demanding payments for direct financial loss and compensation for loss of business opportunity and re-establishment costs as they list 15 fire incidences since 2015 where the county government has failed to take adequate precautions for their safety and that of the public while doing their business at the ultimate second hand clothe market.

    Gikomba traders also cited a fire incident that occurred on June 28, 2018 which claimed 15 lives while hundreds escaped with severe injuries. Through their lawyer Adrian Kamotho, they claimed that all their attempts to rebuild their businesses have been devastated by recurrent fires.

    They are further accusing the county government of negligence and failing to put in place a suitable continuity plan to sustain the business environment at the market which has had adverse effects on the economy.

    But fire accidents have remained rampant at Gikomba despite the traders remitting levies, rates and license fees among other charges collected by the reluctant county government.

    “The Plaintiffs are at a loss as to why the Defendant would act so negligently, in breach of contractual and legal duty,” Kamotho said.

    The traders are also pushing the court to compel the county government to establish a fully equipped fire station in the market within 60 days to help in combating future fire accidents.

    In June, fire razed down a section of the country’s largest open air market, leading to losses amounting to millions of shillings after past promises by the government to curb the menace proved futile.

    President Uhuru Kenyatta once promised stern action against anyone found culpable but even investigations he ordered in 2017 have not provided answers to the numerous fire outbreaks which have caused destruction at the market. Traders suspect that the fires have been fueled by tussles between tenants in county houses and land grabbers.

  • UASU calls off lecturers’ strike to pursue dialogue

    UASU calls off lecturers’ strike to pursue dialogue

    The Universities Academic Staff Union (UASU) has called off the national strike that was scheduled to kick off today (Monday), which would have paralysed operations in all the 35 public universities. A statement by the Union’s Secretary-General Constantine Wasonga said they decided to suspend the industrial action to give room for more negotiations with government representatives.

    UASU’s top leadership held a crisis meeting on Sunday in Nairobi with the Principal Secretary for University Education and Research Simon Nabukwesi where they reviewed the developments on the conciliation process initiated by the Ministry of Labour with an aim of ending the impasse.

    The parties that attended the meeting also agreed to review the outcome of the talks between the union and Inter-Public Universities Council Consultative Forum (IPUCCF) under the auspices of the National Implementation Committee (NIC) over the implementation of the 2017-2021 collective bargaining agreement (CBA) which has stalled.

    “Uasu national executive committee has directed that the union suspends its strike notice to give a final chance to dialogue,” Dr Wasonga said.

    But while calling off the strike Dr Wasonga noted that the NIC has agreed that all public universities must immediately submit to it returns for purposes of audit and enforcement of the compliance with the 2017-2021 CBA as he appreciated the members’ zeal to fight for the “dignity of the dons”.

    Wasonga also called for a review of the orders of the Employment and Labour Relations Court issued on August 26 after the suspension of the strike became a sigh of relief to the 35 public universities where learning would have been paralysed. The strike was also going to affect First Year students who set to join universities in September.

     

  • KRA set to auction personal effects at JKIA

    KRA set to auction personal effects at JKIA

    The Kenya Revenue Authority (KRA) has stepped up its efforts to wrestle tax evasion by confiscating undeclared personal effects from Kenyans returning into the country through the Jomo Kenyatta International Airport (JKIA).

    Such personal effects include wigs, human hair extension, footwear, handbags, paintings and earrings which the taxman is set to auction at the JKIA’s warehouse next month if the owners fail to clear the tax due on them.

    “Passengers should familiarize themselves to the allowable concession of $500 (Sh54,900), the specific exemptions, types of goods prohibited and those that are restricted,” KRA Commissioner for Customs and Border Control Lilian Nyawanda said.

    KRA had in 2016 set maximum duty collected on such items at Sh50,000 to fasten the clearance of passengers at international airports as it subjected the listed them to customs taxes upon arrival and departure at the terminals.

    The regulations dictate that all the taxable items attract taxes at the rate determined by the value of the money paid at a foreign country but does not rely on factors as weight, size or quality. They were introduced following complaints raised by passengers returning from Dubai and China who claimed they were being extorted through hiked rates compared to those re-entering the country from Europe or America.

    Passengers travelling out of the country are now required to fill in a Temporary Importation Form-P45 to declare items being shipped abroad for repair including the accompanying tools and show the receipt during return as a declaration. Items bought bought in Kenya and being carried for commercial purposes must also be declared during departure for purposes of taxes on return.

    And gadgets like video recorders, phones and projectors bought while on a trip to Kenya and currency exceeding Sh1 million ($10,000) must also be declared at the customs before departure while those arriving in the country must fill a passenger declaration form stating the amount paid for each item and the taxes.

    Items meant for sale or business use, including those being brought back to Kenya after commercial use must also be declared as travelers remain under strict instructions to declare newly acquired items whether they were bought, inherited or gifted and all items bought exceeding the limits of duty-free shops.

    Even donations are not exempt from taxes except in situations where a Pro 1B document which accompanies diplomatic goods or special letter from the Treasury is produced otherwise flouting of these regulations will lead to the outright seizure of the listed items by KRA.

    But Kenyans who have been living in foreign countries are allowed by law to import personal items and household goods duty-free on returning home so long as they can provide proof of living abroad for at least two years.

    The law also provides that those bringing in used personal effects or household items must have owned and used them for a period not exceeding one year to qualify for tax exemption.

  • Wrangles threaten to break UDA’s Mombasa base

    Wrangles threaten to break UDA’s Mombasa base

    United Democratic Alliance party which is associated with the Deputy President William Ruto risks witnessing a massive defection if he fails to neutralize the feud between former Mombasa Senator Hassan Omar and other party aspirants.

    A  section of budding politicians eyeing elective positions in upcoming 2022 elections through the party are accusing Omar of importing his sycophants from Wiper Democratic Movement where he previously served as the secretary general to shortchange UDA loyalists.

    Omar who is eyeing Mombasa’s gubernatorial seat has hijacked UDA party in Mombasa and sidelined politicians who have stood with DP Ruto even before he [Omar] was poached from Kalonzo Musyoka’s Wiper party. One Ali Mwatsahu who is eyeing the Mvita parliamentary seat is accusing the DP’s point-man of handpicking and planting aspirants for various elective position in Mombasa County without consulting party leadership.

    Mwatsahu emphasized that UDA is for hustlers and not elites like Omar who are just masquerading and doing less to popularize DP Ruto’s candidature down to the grassroots.

    The wrangles are intensifying just a week after a sections of UDA luminaries opposed to Omar met Baringo senator Gideon Moi at a Mombasa hotel and vowed to shift their allegiance to KANU if Ruto does not move with speed to tame despotic Omar.

    But Omar who is still remains unperturbed with negative developments has maintained meeting his preferred aspirants as the country moves closure to 2022 general elections. He wants Nicholas Mutuku to fly the UDA flag in Changamwe constituency, Karisa Nzai in Jomvu, Twaha for Tudor and Domoko in Likoni despite Masoud Mwahima, the son of the former area MP commanding an unwavering support.

    He also prefers Peterson Mittau for Mombasa senatorial seat and Esther Chepng’etich for woman rep seat but his opponents in UDA claim that his list is not electable in Mombasa. UDA supporters are also accusing Omar of planting goons as security men at the Hustlers Centre in Nyali to intimidate his opponents.

  • Parties Registrar condemn politicians for deserting PLWDs

    Parties Registrar condemn politicians for deserting PLWDs

    The Political Parties Registrar Anne Nderitu has condemned political parties for delaying the affirmative action in respect of persons living with disabilities. Ms Nderitu who spoke on Thursday said that PLWDs have not been to be given a conducive space push their ambitions through political parties.

    She was addressing PLWDs who are officials in some of the 75 registered political parties in Kenya when she challenged political parties to shift from archaic approach and rope in the special interest group. Nderitu also challenged the political parties to deal with the divisions that exists among the PLWDs themselves.

    “Affirmative action on PLWDs is slower compared with those involving women, youth, and marginalized groups …..As we think of the political space, segregation still exists, hence the place for political parties to champion the rights of these groups  …..Let us deal with segregation among disabled persons. Let’s not divide further amongst yourselves,” Nderibu said.

  • Banks pushing CBK to return mobile money transfer charges

    Banks pushing CBK to return mobile money transfer charges

    Banks are pushing the Central Bank of Kenya (CBK) to reinstate mobile cash transfer charges whenever customers move money from their bank accounts to mobile money wallets, after making losses due to fall in fees and commissions from such transactions.

    KCB chief executive Joshua Oigara said that the bank is persuading the regulator to ensure that charges are reinstated before the end of the year, whether full or discounted .

    “Customers are getting more transactions digitized. We are working with CBK to get fees and commissions on these transactions. This is a good opportunity to look at the charges. I don’t see the charges going back to the levels they were before the pandemic. We see a discounted level of charges on the mobile transactions.” Oigara said.

    Reinstating the charges will be good news to lenders which are are missing out in a market that is increasingly embracing digital transactions. They raised complaints with regulator arguing that they are losing millions per month due to the free transfers between them and M-Pesa, T-Cash and Airtel Money among others.

    Banks used to charge transaction fees between Sh30 to Sh197 before the waivers were introduced after the Covid-19 broke out when the government urged citizens to embrace cashless transactions.

    But Oigara pointed out that KCB mobile banking transactions have gone up by 70% in the six-month period to June, which is good enough to compensate for discounted rates.

    CBK had only announced resumption of charges of bank to mobile wallets that are linked to the Sacco sector in A pril, a move that motivated banks such as Co-operative Bank to roll out discounted rates. It also saw the value of KCB mobile transactions increase by 104% when it hit Sh1.12 trillion at the end of June from, which is down from Sh550 billion which was the case in the previous year.