Kenya Insights

Category: Business

  • Paramount Bank And Merali’s Employee’s Dossier On The Insider Dirty Dealings

    Paramount Bank And Merali’s Employee’s Dossier On The Insider Dirty Dealings

    Hello,
    I am an employee of Paramount Bank and the various real estate companies that operate from the same offices at Sound Plaza.

    PLEASE! PLEASE! HIDE MY IDENTITY.

    I am an internal clerk at Paramount Bank and I have some information to share with you. This is what I have managed to gather from my junior position. I have been here for 1.5 years now. I can tell you this this is a crooked bank that enjoys protection from some Central Bank people. I can also tell you that proceeds of this are used in Real Estate developments by Anwarali Noorali Merali Padany, the Executive Chairman of the Bank and real estate companies. His son Ayaz Merali is the CEO. Every important decision in these companies is done by family only. The Africans are for show only and are only allowed to handle regular Kenyan accounts like staff members of his company’. This is just to cover for the illicit business that goes on there.

    Paramount bank.

    Used for money laundering and the proceeds invested in real est. Akila 1 and 2., Nuriana Apartments, Jannah Villas/Apartment and the Alina Villas in Lower Kabete for later.
    Tormount holdings, one of the shareholders of the bank have been mentioned in illegal activities in the Panama report.

    This is from here https://offshoreleaks.icij.org/nodes/10071671


    Remember Paramount Bank at some point bought another Muhindi Bank, Universal Bank. These banks were all set up during Moi days for siphoning money out of Kenya and for money laundering. Merali was at some point taken to caught by another crroked Bank, Trust Bank for crazy dealing leading to the collapse of Trust bank.

    http://kenyalaw.org/caselaw/cases/view/54571.
    Merali has for long been invoved in dirty deals with Lands officials using the bank as the money conduit. Here is one of the cases that bust and was documented. http://theinformer.co.ke/12363/paramount-bank-entangled-in- sh30million-loan-fraud/

    The African workers in the Bank are kept busy with small accounts of Kenyans but the wahindis are served in a special room. Sometimes the bank is closed in the afternoon when money is brought in, systems reconfigured and money is cleaned. I was told by a guard who had observed the trend.

    The elite Asian bankers who exclusively serve the Asians are paid double what we earn and all they do is act on laundering instructions from Merali.
    We have separate toilets for Asians and Africans. Africans here are for dealing with the Africans, just for show. The same happens in their Real Estate arm. As you will see.

    Real Estate.
    Merali has developed Akila 1 & 2, Nuriana Apartments, Alina Villas and Jannah Villas/Apartments using laundered money. The homeowners of these properties can attest that they were forced to work with only one lawyer and they only had Paramount Bank as a mortgage option. This is how they hide their deals and use the information circle. It is also how Merali manages to show that his bank is a regular normal bank.
    We are now dealing with a case of homeowners in Jannah Villas who are being asked to add over 3M each after 6 years of waiting for their Shares in the development and for their Titles.

    Imagine Merali convinced them to buy the house and hand over management and sub titles by 3 months. 6 years later they have been told to pay more to get what they should have gotten 6 years ago. All these new charges are out of the sales agreement and since Merali never handed over management, he says he has the sole right to decide on all manner of costs and demand for them. He has threatened not to register the sub leases unless he is paid this money. He sold incomplete units without a sewer and a wall and is now demanding that from them. Absolute corruption and intimidation because he is connected at lands. This is how he recovers his bribery money by fleecing poor Africans.

    Some of the owners are threatening to sue for 150m for loss of use of property, the have not been able to show ownership of their property despite paying in full 6 years ago. Some have tried to use the agreement to get loans but have been turned down by banks because they do not have the title or sub-lease. This will be messy becaue there are 80 houses and Merali only managed to sell half and hence has to find a way to recoup his investment by ovcer charging the poor African buyers. The house owners were not aware that Merali had not gotten approval to build the houses and therefore sold them illegal structures.

    The title was only approved for construction in 2017 (4 years later) and at the time of the sale, the Title belonged to Tanad Properties and was not approved for apartments.

    Some of the leases were registered in 2018. 5 years later.

    The houses were built without a sewer and used to drain to NAIROBI river in collusion with NEMA and County planning officials who are on a monthly salary from Merali through Paramount Bank in dummy accounts. They are now being asked to pay charges which they neither knew of or consented to as owners.

    This case will be big and will expose the corrupt networks at Nema, Lands and County who have allowed Merali to continue conning Kenyans. It is the same officials who have allowed the construction of executive villas by Merali (ALINA VILLAS) in Lower Kabete that the late Wangari Maathai fought against https://nairobinews.nation.co.ke/news/multi-million-buildings-built-on- wetland-to-be-demolished.

    During this past demolition exercise, 250m was used to keep bulldozers away. These bribery costs are later passed on to buyers for spurious reasons. Sound Equipment Ltd is another of Merali’s companies and the owners of Sound Plaza Westlands, the HQ of Paramount Bank and Merali’s offices.

    I will get more information and pass it over. This is information I have gathered from documents I have been sent to deliver across offices and I have used my phone to scan. Others are from the net.
    Thank you.

  • World Bank Warns Kenya About Taxing Digital Space

    World Bank Warns Kenya About Taxing Digital Space

    The World Bank has faulted plans by the Kenyan Government’s to collect taxes from small businesses selling and buying products online.

    In a press briefing over The Kenyan Economic update Casey Turgusson, a Senior Digital Development Specialist at the World Bank Group argued that the move would not only be almost impossible  to evaluate the value of economic activities online, but that it might also discourage the nascent digital economy.

    The treasury through the Finance Bill, 2019, wants the Income Tax Act amended to introduce a new provision that lists income accruing through a digital marketplace as taxable income.

    The world bank bank also warns Kenya over economic consequences over public domestic debt. You would need to have come from a different continent or be fairly naive if you don’t know that the country is facing a financial crisis. The taxman is running up and down to expand the tax bracket while also enhancing the burden on the existing tax payers in a race to meet the tax target in a country riddled by debt.

    In perhaps the last move (should have been first), Just last week Treasury CS sent a distress circular introducing severe austerity measures which included huge budget cuts for various government departments. CBK Governor has also admitted that all is not well within the economy.

    The government however needs to stop imposing the tax burden on taxpayers while government officials live life lavish. Closing down businesses and running investors and young entrepreneurs out of the businesses and Jobs is a foolish move.

  • Sony Sugar Management In Course To Revive The Company As They Seek Sh210M Loan

    Sony Sugar Management In Course To Revive The Company As They Seek Sh210M Loan

    Failure to maintain Sony Sugar Company plant machine for the last five years has greatly affected the efficiency and reliability of the company, according to the factory management.

    The Company Acting Managing Director James Oluoch warned  that the plant needs immediate partial or full maintenance so that it can process more tons of cane a day which will translate to more revenue hence stability of the company.

    Speaking at a meeting with members of the Nyanza Regional Development Implementation, Coordination Committee (NRDICC) held at the company, Mr.  Oluoch said the miller can no longer predict its revenue due to unreliable sugarcane crushing capacity.

    The committee led by its chairman Mr. James Kianda who is also the Regional Commissioner was in the area to inspect development projects funded by the National government. In company were also members of the Migori CDICC that is chaired by the local County Commissioner Joseph Rotich.

    According to the MD, when the company machine is fully maintained it processes 100 tons of cane with expected output of more than 10 tons of sugar.

    But currently in every 100 tons of processed cane the company merely gets up to 4 tons of sugar, a scenario which has led to delay in paying cane farmers and the company employees.

    Mr. Oluoch revealed that the company desperately needs close to Sh 346 million to do thorough maintenance of the plant for its smooth continuity.

    He said the company had written to the County Government of Migori requesting Sh. 210 million loan for its partial machine maintenance but they are yet to receive feedback.

    “We are also seeking help from our key stakeholders to carryout maintenance in order to restore waning confidence of the farmers and community,” added Oluoch.

    He said the company failed to carryout annual company machine maintenance in 2017 due to the request of the government not to do it because there was shortage of sugar in the country.

    Further, poaching of the contracted cane has threatened the continuity of Sony, he informed the visiting Regional Presidential Delivery Unit team, adding that the three neighboring sugar millers of Ndhiwa, Sukari and Masai Mara have been poaching Sony cane from its contracted farmers.

    “Efforts to have agreement on ways of regulating cane poaching have failed because each of the three companies pursues unique interests,” the MD said.

    He said contracted cane farmers are easily lured due to the fact that they will be paid fast compared to their delayed payments at Sony.

    Former Awendo Member of Parliament Jared K’Opiyo who is also a board member at Sony said the two levels of governments should intervene and save struggling sugar millers in Western Kenya which are supporting close to 10 million Kenyans.

    However, Mr. Kianda told the management to be firm against those out to take advantage of the current state of the factory to loot its assets.

    At the moment auctioneers have attached 16 vehicles belonging to the company on reasons that are not quite clear to the management.

    Company chairman Charles Owino Likowa regretted that the company was currently facing over 8,000 litigations in court instigated by unscrupulous lawyers working in cahoots a clique of farmers to fleece the company of its revenue.

    “Two lawyers are already facing court cases allegedly after instigating cases in which the company lost millions of shillings fraudulently,” said Likowa.

    Others in the team were Nyanza Senior Regional Director PDU Truphosa Awour, Nyanza Region Police Commander Dr. Vincent Makhokha, Nyanza Region Intelligence Coordinator Simon Koskei and Kenya Revenue Authority and Nyanza/Western Regional Coordinator Mr. John Oriaro among other leaders.

  • World Bank Warns Kenya Of Economic Consequences Over Sh1.2 Trillion Debt.

    World Bank Warns Kenya Of Economic Consequences Over Sh1.2 Trillion Debt.

    Kenyans will now be required to raise sh1.2 trillion in the next 11 months to settle almost half of the public domestic debt, a move World Bank warns will have economic consequences.

    43 pc of the Sh2.87 trillion debt will mature in September next year. The debt is owed to local investors.

    The Kenya Revenue Authority (KRA) which in recent days has been on a race to collect more revenue by nabbing tax cheats and taxing everything collected Sh1.496 trillion in the year ending June. The public debt would be 82.3 pc of that.

    Negotiating with the investors and lenders will also hold high risks, World Bank has warned. “The government could face challenges in rolling over such bonds in an environment of no interest rate caps, low subscription rates and overexposure of commercial banks to these assets,” the institution has cautiouned in its latest update on the Kenyan economy.

    “Debt service obligations will continue to impose significant fiscal strain on the Exchequer. Kenya could face fiscal pressure in meeting it’s near-term debt and repayments obligations.”

    Kenyas public debt crossed the Sh6 trillion mark in July, up from Sh1.89 trillion in June 2013 with Mpigs recently voting to amend the law that restricts public debt at half of the gross domestic product in a move that will see public debt rise to Sh9.1 trillion.

  • CAK Orders Coca-Cola To Retain All Almasi Beverages Ltd Employees

    CAK Orders Coca-Cola To Retain All Almasi Beverages Ltd Employees

    Competition Authority of Kenya and Centum have instructed Coca-Cola Sabco East Africa (CCBA) to retain all 1739 permanent employees that the now merged firm Almasi Beverages limited had.

    While certifying the acquisition of ABL, CAK set conditions to not only protect 99 percent of the ABL workforce but also Small and Medium Enterprises (SMEs).

    “The merged entity shall for a three (3) year period following completion of the proposed transaction retain 1,749 employees of the total 1,760 permanent employees,” CAK declared.

    “The merged entity shall reserve the lower deck, or not less than 20 percent of the total storage space of the coolers lent to SMEs for products of competitors except the brands of the Coca-Cola Company’s three (3) largest global non-alcoholic ready-to-drink competitors.” CAK added.

    In the acquisition deal set to be complete by early next year, Centum will sell its entire 53.9 percent stake in Almasi and 27.6 percent of issued shares in Nairobi Bottlers Limited (NBL) for Sh19.5 billion.

    In June this year, Centum had stated that they will forfeit all its shares in Almasi to raise funds to offset part of Sh7.5 billion defaulted loans.

    CCBA will now operate the current Almasi bottling plants in Nyeri, Eldoret, Nairobi, Molo and Kisumu for at least three years after the acquisition.

    The Almasi deal is part of  Coca- Cola’s feats to increase its customer base in the local non-alcoholic drinks market. Currently, the drink giant has a 70percent marker dominance.

    Recent cases and corporate lawsuits against the drink giants have been threatening its  existence. The recent one being that of Funyula residents against Coca-Cola and their distributor.

     

    A recent invetigation by Vice News and James Roberts also exposed the mess that Coca-Cola has done with its single use plastics. An expose` that saw the giant firm change from single-use plastics to returnable glass bottles in all of its Dasani plants in Tanzania.

     

  • How Cheap Pakistan Rice Imports Have Crippled Mwea Town.

    How Cheap Pakistan Rice Imports Have Crippled Mwea Town.

    So many local farmers in the country right now are opting for alternative farm produce since the country is flooded with cheap exports. Kenya’s main source of rice ngurubani town, Mwea is also feeling the heat, sooner or later, we shall be talking about Mwea farmers uprooting or doing away with rice farming.

    According to the Kenya Economic Survey, 2019, Mwea region produces about 100,000 tonnes of rice, which is 80 per cent of what Kenya produces. Currently, Kenya requires 400,000 tonnes of rice every year, this implies that the country has to import about 300,000 tonnes to back up what is produced locally.

    A recent visit by Mt Kenya star to Mwea town revealed that milling factories are collapsing with most of them operating at half capacity. The biggest hurdle is unscrupulous traders who use devious means to pass off the imported varieties as pure pishori. Low-quality rice smuggled through the Somali-Kenya border and weaker surveillance at the Port of Mombasa is the reason why Mwea’s growth is dangling.

    “Our sales have been on a decline compared to previous years. When I started trading rice here seven years ago, the business was booming, but nowadays has slumped down as customers opt for a cheaper varieties sold elsewhere. Other consumers unknowingly buy cheaper rice blended with pishori out there unknowing believing that is pure pishori. Those of us who deal with genuine pishori area suffering,” said Jane Njagi, a trader at Nice Rice Millers.

    “That tells you the farm inputs, that is fertilizer, chemical sprays and labour here is high and adds up to the cost of production. This makes our produce expense and unable to compete with imported varieties,” Peris Wawira commented on Mwea-pishori prices

    The government doesn’t seem to be interested in making sure that locally produced rice prices go down to what citizens can afford.

    “Mwea has the capacity to multiply rice production several times and feed the nation only if adequate water is provided, inputs subsidized and the government helps us to find more market,” Wawira said.

    Stakeholders say many factors like insufficient water supply and high cost of production are contributing to lower rice production whereas Mwea irrigation scheme has the the produce more.

    Top Graders Rice Millers MD Loise Njoki told the Mt Kenya star that they have a rice milling capacity of 1000 bags per day, but they were doing only 200 bags per day. According to Njoki, the miller that started operating since 2015 with a workforce of almost 100 traders and farmers is almost collapsing due to unfair competition.

    “Truck drivers have been buying our rice in large quantities but they now prefer cheaper rice. We are left with consumers who buy smaller quantities,” Ms Njoki said.

    “Cheaper inputs such as fertilizer and controlling of the destructive quelea birds, which force us to hire even 10 people to fight them can lower production expenses and make our rice competitive,” Ms Njoki added.

    Peninah Kamunde the Head of Operation At Nice Rice Millers told the source that they mill 60 tonnes of rice per day, which is way below its capacity.

    “We go the extra mile to ensure only pure pishori comes from our mills and is traded here. It is now upon the relevant government agencies to shield farmers from other faked rice out there,” said Kamunde.

    In May, the source had an interview with the owner of Tai Rice Millers proprietor Edwin Kagombe who criticized unfair rice importation. According to Kagombe, rice cartels flood Mwea rice stores with Cheap Pakistan grains after every harvesting season. The cartels then mix the imported grains with Mwea pishori rice they sell it to unsuspecting customers at a cheaper price.

    Local farmers are incurring losses and the government rather seems to not bother at all. Coffee farmers uprooting their plants. Cane farmers crippled with debts and sugar cartels incapacitating sugar milling companies, Mumias crippled, SONY bankrupted, Nzoia functionally incapacitated etc. Maize farmers incurring losses from aflatoxin and poor sales due to flooded cheap Brazilian imports. Tea farmers uprooting their crops because KTDA is filled with cartels… Now its rice and who knows what, sooner or later, Kenya will be importing GMO crops if this scheme to kill local factories, millers and farmers is let to float for more few years.

     

  • Speaker Muturi In Serbia To Look For FDIs

    Speaker Muturi In Serbia To Look For FDIs

    The National Assembly Speaker Justin Muturi has urged Serbian investors to take advantage of the government’s current focus on food security, manufacturing and universal Health Care, all areas which Serbia specialises on and go to business with the country.

    Speaking during a meet with the Serbian National Chamber of Commerce, Muturi told the serbian businessmen to take advantage of  Kenya’s good relationship with Serbia and make a direct investment in the country.

    He advised the businessmen to take the leap of faith which the two countries have not been doing in the past leading to huge investment opportunities lost.

    “Trade between Kenya and Serbia has remained minimal despite our traditionally very cordial relations. I am therefore glad that we’re having this meeting, and I wish to extend an invitation to you to consider making a direct investment in our country,” he said.

    ICT representatives who were in attendance expressed their interest in supporting Kenya develop a Data Protection regulatory framework. Serbia boasts of thriving in data management and biometrics.

    Muturi had been tasked with convincing the Serbian businessmen that Kenya is good game given the incentives the country is offering to investors who choose to set up industries in Special Economic Zones and the Export Processing Zones.

    The visit to Belgrade follows the speaker of the National Assembly of Serbia, H.E. Maja Gojkovic’s visit to Nairobi perhaps suggesting flourishing ties between the two countries.

  • Cytonn: Secrets To Real Estate Investing

    Cytonn: Secrets To Real Estate Investing

    As you read the blog, I am pretty sure you have heard of investment before and so, defined in the framework of forgone consumption of money at the current time in favor of placing the funds into investment vehicles (such as stocks, government bonds, bank fixed deposit and real estate etc.). The value of the investment vehicle increase in the future and therefore, grows the value of the invested funds.

    Real estate is investment sector that has continued to grow both locally and internationally. Locally, its contribution to the country’s GDP has continued to grow for the past two decades, from 10.5% in 2000 to 13.8% in 2016, as per KNBS. The sector has also continued to be shaped by various trends such as infrastructural development, improving client preferences and tastes, a growing population as well as an expanding middle class and the continued entrance of multinational firms who act either as clients or competitors, hence shaping the industry standards. As an investment asset class, real estate has toppled other investment asset classes in terms of returns and risk involved, and as a result, more individuals and institutional investors are shifting their focus on investments to real estate.

    This is attributable to factors such as:

    1. High returns, which as per our research, has averaged at 25.0% per annum over the last five years as compared to traditional investment assets such as stocks and bonds which have generated an average of 14.6% per annum over the same period.
    2. Real estate provides investors with investment platform for hedging funds against inflation.
    3. Secure tax incentives such as treatment of interest payment on mortgages as a tax-deductible expense.

    However, real estate investing can be daunting, due to the facts that; a) it is capital intensive b) it exists in a very dynamic market and c) requires a great deal of expertise for successful investment venture. Despite these, it is possible to reap big from real estate. The following are the key measures to focus on before going into real estate:

    1. Market research is paramount. This simply helps you to gauge the uptake, demand and general performance and potential of your intended real estate investment. It also helps the developer to see what competitors are doing, identify market gaps and structured products that can fill the particular gap in the market.
    2. Financial analysis which helps to establish the expected return on the real estate theme of interest which constitutes of return on investments and internal rate of return from the real estate investment theme. This can be achieved by through the services of a real estate expert.
    3. Information symmetry: traditionally, most investors only know of brick and mortar which tends to be capital intensive, time-consuming. However, other ‘sharp’ ways have emerged such as REITs, private equity, and structured products where a private firm customizes each as per the needs of the investors. This offers aspiring real estate investors to tap into the sector without having the intense involvement that the real estate development requires.

    A comprehensive execution of market research and financial analysis provide an investor with the status of the main performance indicators on real estate investments in relation to the achievement of the targeted financial objectives. Notably, one can either subscribe to a periodic real estate performance analysis report, such as Cytonn Reports or choose to carry out the analysis personally. Whichever the case, real estate research and financial performance analysis offer the platform for an investor in the sector to identify the existing investment opportunities in the various real estate themes, allocate funds to the best opportunities and maximize returns from the invested funds.

    By Cytonn Investments.

  • Names Of Witnesses To Testify In The Funyula Residents Against Coca-Cola Case

    Names Of Witnesses To Testify In The Funyula Residents Against Coca-Cola Case

    On 16th June this year, Kenyan Insights reported that Stephen Serulo, Zablon Barasa and Mr Richard Sikudi had sued the Atlanta-based company, its Africa subsidiaries (Coca Cola Central, East and West) and local agent Equator Bottlers Limited in Funyula on behalf of 55 other complainants.

    The three petitioners had taken the soft drinks giant Coca Cola to Court after one of their distributor sold them contaminated drinks. In the petition, on behalf of other complainants, petitioners say they bought soft drinks in separate ceremonies last year.

    More than 10 witnesses have since been summoned to appear in person before the Busia High Court in November to testify in a case where by 58 people had sued Coca-cola company for allegedly selling them contaminated soda drinks.

    In a letter dated October 15, 2019 written and signed by the Busia Deputy High Court registrar, Phoebe Kulecho, the witnesses have been ordered to appear in court in person on November 18, 2019.

    “Whereas your attendance is required to give evidence as per Court Order in the above suit, you are hereby required personally to appear before this court on the 18 November, 2019 in the forenoon to produce laboratory analysis results vide Ref No. MPHS/DC/125 dated 30 July, 2012 and to be present at all times until your presence is dispensed with by the court,” the letter said.

    Among those expected to testify include Mr. Kepha Ombacho Busia county Environmental Health officer, Mr. J.K Kibathi from the Government Chemist and Mr Antony Irungu from Kenya Bureau of Standards (Kebs)

    The other witnesses whom the letter was addressed to include Mr. Martin Nyakiano, Mr. Felix Omondi, M/s Catherine Were, Mr. Seth Ngoso (Kebs), Mr Emmanuel Luvai (former District Public Health Officer) and Mr. Wilson Kosgey.

    Some of the complainants who have since been enjoined in the petition have been having complications for over over 4 years now.

    Dr. Sande Charo, Medical superintendent at Busia County referral Hospital confirmed to the court through a medical report that some of 60 patients were confirmed sick by the hospital and got their treatment there. Dr Charo told this writer that most of them were treated for food poisoning and given strong antibiotics.

    In December 2018, Coca Cola, through Anjarwalla and Khanna Advocates, tried to blackmail the plaintiffs’ lawyers to consider the compensation package.

    The petitioner said Coca cola has been trying an out-of-court settlement with them. The drink giant was offering Sh45,000 through their lawyers as an individual compensation cut.

    They turned down the deal saying its a blackmail by the company’s law firm and totally unrealistic for the massive damage their substandard drink caused.

     

     

  • Incoming Safaricom CEO Peter Ndegwa Has An Impressive CV

    Incoming Safaricom CEO Peter Ndegwa Has An Impressive CV

    The Safaricom PLC Board of Directors has today resolved to appoint Mr. Peter Ndegwa as the company’s Chief Executive Officer effective April 1, 2020. He joins Safaricom from Diageo PLC where he is the Managing Director of Diageo Continental Europe.

    Peter comes with a wealth of experience in General Management, Commercial and Business Strategy, Sales and Finance Operations, having spent over 25 years in various roles within the Financial Services and Fast-Moving Consumer Goods (FMCG) sectors in Africa and Europe.

    In his current role, Peter oversees the operations of Diageo PLC in 50 countries in Western and Eastern Europe, Russia, Middle East and North Africa region. He had previously served for seven years as CEO in Guinness Nigeria PLC and Guinness Ghana Breweries PLC, where he transformed the two operations to deliver a doubledigit growth by investing in people, introducing new brands and reorganising the businesses.

    C1 – Public Prior to that, Peter served for eight years across a range of senior Executive Director roles at EABL (a Diageo subsidiary) based in Nairobi. Serving as the Group Chief Finance Officer (CFO), Group Strategy Director, Sales Director, and as an Executive Director on the EABL Board, he was part of the team that saw the EABL business more than doubled in value – and winning the coveted Most Respected Business Award in East Africa for five years in a row.

    Peter is credited with the development of an affordable-beer strategy for EABL resulting in the production of new brands such as Senator beer. Senator beer became one of the most successful innovations by Diageo that has been featured in the Harvard Business Review. He started his career at PwC, the global consulting firm, where he worked for 11 years. Peter holds an MBA from the London Business School and a Bachelor’s degree in Economics from the University of Nairobi. He is also a Certified Public Accountant and a member of the Institute of Certified Public Accountants of Kenya (ICPAK).

  • Suspended KNCCI CEO Angela Ndambuki Sneaked Back To Office

    Suspended KNCCI CEO Angela Ndambuki Sneaked Back To Office

    Embattled songstress and suspended Kenya Chamber of Commerce and Industry (KNCCI)  CEO Angela Ndambuki has sneaked back to her office.

    According to KNCCI insiders and staff members, embattled Chief Executive Angela Ndambuki has not only been fraudulently sneaked back to work but also her old contract renewed despite previous indictments that led to her suspension.

    In her twisted and old contract, Ms Ndambuki will be paid the bonuses forgone in the 14 months she was suspended from the helm of KNCCI.

    Ms Angela was announced the CEO of KNCCI in September 2017. Her contract stated that she was to hold the position for three years.

    However, her intolerable attitude towards her fellow board members, antagonism and cussing staff members saw her ejected from her CEO post barely eight months from the time of the appointment.

    Ms Ndambuki, a former member of the all-girl music group Tatuu, who holds a Bachelor of Law degree from the University of Nairobi and Masters of Law Degree in Intellectual Property Law from the University of Edinburg in England joined the KNCCI in September 2017.

    The KNCCI board had initially agreed not to entertain Ndambuki’s presence at the lobby after the probation. While confirming the new development, KNCCI Chairman Kiprono Kittony said the Board resolved not to confirm Ndambuki’s appointment after her eight-month probation.

    George Kiondo was appointed by the KNCCI Board to replace in an acting capacity Ms Ndambuki who previously served as the CEO of Performers Rights Society of Kenya (PRISK) before joining the Chamber of Commerce.

    Richard Ngatia, the president of the Kenya National Chamber of Commerce and Industry (KNCCI) confirmed on Friday that Ms Ndambuki resumed work in July is serving under her old contract.

    “She had been suspended but we reviewed the case when I joined the chamber and we agreed that she should take up her job. It is not a new appointment; she is picking up the job she was given by the board of KNCCI in 2017,” Mr Ngatia said.

     

     

     

  • Vehicle Importers Oppose Uhuru’s Plan To Ban Importation Of Second Hand Cars

    Vehicle Importers Oppose Uhuru’s Plan To Ban Importation Of Second Hand Cars

    On Friday last week, President Uhuru Kenyatta announced that his administration is planning to do away with importation of used cars. A directive that has since attracted vast objection from Nairobi and Mombasa-bases used car importers.

    President Kenyatta ascertained his commitment to safeguard local car assemblers against unfair competition and ensure a conducive environment for their businesses.

    He instracted Trade and Cooperatives Cabinet Secretary Peter Munya to speed up the National Automotive Policy and submit it to the Cabinet for approval. The head os State added that a new policy to restrict vehicle imports will take effect early next month.

    “Cars that are used and assembled in Kenya have grown by 36 per cent. We will see more growth as we go on to implement policies that support the car assembly industry.” CS Munya said.

    The President has already directed all ministries, departments and other public entities to give preference to vehicles assembled locally.

    “We want Kenyan taxes to be used to buy goods made in Kenya. Even if they want to go to court to oppose the government’s stand, we are clear on our agenda to ensure all those who invest in the country get value for their money.” President Uhuru said.

    The Preaident was speaking this when he commissioned the Sh1 billion Toyota Hilux pickup truck assembly line at Associated Vehicle Assemblers (AVA) in Miritini, Mombasa.

    Car Importers Association of Kenya (Ciak) has opposed the move, asserting that the car-importing business is an economic backbone for over 2.5 million people.

    “As a country, we should not cheat ourselves when it comes to manufacturing and assembling. The person doing assembling of motor vehicles is not a manufacturer; this is just an assembler, meaning that the parts are made somewhere else and even the painting has been done.” said Ciak chairman Peter Otieno. 

    Peter Otieno accused assemblers of banking on tax-free incentives to make a profit.

    “So they come in parts for fixing to become a vehicle, that is not manufacturing but mere assembling, which hires very few people. The government should instead bring it up clearly that this is competition. If they are going to assemble vehicles at better rates, then people will opt for them, we don’t feel any threat. Let us do our business and let assemblers do theirs, this is good competition and it should be left open. Let people not be coerced to buy locally assembled vehicles; let the willing buyer, willing seller rule take its course,” he said. 

    Mr Otieno challenged assemblers to reveal where they source local content.

    “Who are supplying them with nuts, brake pads, springs, locks, mats and such like things?Everything used in those motor vehicles must support local industries by using local content. Second-hand vehicles create jobs in local garages and incomes which are taxed by the government, we are not doing an illegal business, let us do healthy competition.” He stated

    According CIAK Data, Kenya imports about 7,600 second-hand vehicles per month while locally assembled vehicles records 430. According to Otieno, Ciak imports 120,000 to 130,000 vehicles per year.

    Dennis Awori, Toyota Kenya chairman said  that popularity of Hilux pickup led to the setting up of a local assembly line.

    “The pickup is affordable, especially for start-ups, and can be used for both personal commuting and commercial purposes,” he said.

    Currently, Kenya has three assembly plants, AVA in Mombasa, KVM in Thika, and Isuzu EA in Nairobi. Toyota Kenya assembles 300 Hino trucks, 500 Land Cruiser pickups and 3,000 Yamaha motorcycles annually according to their records.

     

  • EACC Approves Airtel-Telkom Merger

    EACC Approves Airtel-Telkom Merger

    EACC has affirmed that Telkom Kenya is a private company clearing the telco to embark of its plans to merge with Bharti Africa-owned Airtel Kenya.
    In August, the Parliament had inquired the Ethics and Anti-Corruption Commission to scrutinize how the merger deal between the two telcos was brokered and whether the state’s interests were warranted.
    However, EACC in a letter to the Communication Authority of Kenya, the commission states that;
    “Preliminary investigation has established that TKL (Telkom Kenya Ltd) is a private company jointly owned by the Government of Kenya through Cabinet Secretary, National Treasury and Helios Investors Fund III LLP (Helios) through Jamhuri Holdings Limited.”

    According to records, the State has only 40 percent shares in Telkom while Helios clutches the remaining 60 percent.This implies that Telkom Kenya isn’t subjected to State Corporations Act, and therefore, can’t be probed by EACC as the Parliament had requested.

    The merger hopes are still danglis as on Friday last week, CA said that it was yet to receive the letter from EACC.

    “CA is yet to receive EACC clearance to progress the merger,” said the Communication controller.

    EACC clearance was not the only hurdle as CA had instracted the two telcos to clear any debts before their merger can be certified.

    Safaricom had written to CA blocking the merger plans before Telkom and Airtel their debts. According to Safaricom acting CEO Micheal Joseph, Telkom Kenya owes Saf Sh906.6 million and Airtel Kenya has Sh390.7 million to clear. The debts have accumulated from interconnection, co-location and fibre services charges they had sourced from Safaricom.

     

  • Government Blames Kenyans For Chinese Racism In SGR

    Government Blames Kenyans For Chinese Racism In SGR

    Last week, President Uhuru Kenyatta inaugurated the Nairobi – Naivasha second phase of the Standard Gauge Railway, which honestly goes to nowhere, forget Jubilee’s promises. And not just that, but also, the Chinese government has since cut funds for the SGR project after the government failured to prove project viability.

    In a bizarre report that appeared in the Sunday Standard last week revealed the racism, blatant abuse, bad treatment, wildlife deaths, and lack of skills transfer that characterizes the SGR trains. This happens under the nose of Jubilee government that choke out Sh1 billion monthly from taxpayers to repay the SGR.

    “Beneath this shiny veneer is a tale of pain, anguish and broken dreams for a multitude of Kenyans who feel trapped on the train that ably fits the moniker Orient Express, because on it, Chinese nationals have created a small kingdom in which they run roughshod over Kenyan workers who say they are experiencing neo-colonialism, racism and blatant discrimination as the taxpayer foots the Sh. 30 million a day bill for the train, which losely translates to Sh. 1 billion at the end of every month.” Reads part of the Standard report. 

    The investigation report by the Standard revealed that Chinese workers were running a racist little kingdom at the trains and they had systematically excluded Kenyan workers from the core duties such as trotting the trains.

    “Our investigation has revealed that Kenyan drivers have taken charge of the 472 kilometre ride just once, on the project launch with President Uhuru Kenyatta as a passenger, when two female drivers, Alice Gitau and Concilia Owire made the trip. When the cameras and VIPs exited the scene, the Chinese drivers took back control. They have never again been allowed to navigate the passengers from either end of the train track. Those who were trained two years ago in anticipation, have remained assistant shunting drivers, since the launch of Madaraka express, and only sit and watch as the Chinese drivers cruise to the coast and back,” the Standard reported.

    The investigation also revealed that Kenyan workers at the SGR were not allowed to travel in the same vehicles with the Chinese, even if it’s carrying one Chinese or eat at the same tables with them.

    “More excesses are allowed on the freight trains where there is little visibility. Chinese staff are allowed excesses such as smoking while in the locomotive and use of mobile phones, crimes that will get their Kenyan counterparts fired,” the report said.

    The government response, however, points the blame finger on Kenyans, including those facing maltreatment. The States spokesman said that Kenyans should comprehend the work the Chinese are doing rather than focussing on the racial insults they are receiving from the Chinese. Aren’t we re-colonised already!?

    The Chinese developer and operator of the SGR, China Road and Bridge Corporation, stands accused of discriminating Kenyan workers, who according to the government are expected to take over the running of the rail service in 10 years.

    Baseless firing leading to unemployment, racial assignments, impoverished salaries, racial sitting arrangement, catering and personal hygiene services among others injustices the government wants Kenyans to ‘enjoy and celebrate.’

    According to the government, they have set up a “systems” to resolve issues surrounding the operations of Madaraka Express passenger service and the cargo train. Efforts to get to understand the said systems always turn futile as there is nor recorded or existing system!

    The State through Colonel Cyrus Oguna, the official government spokesman, keep on blaming Kenyans for not seeing the ‘good sides of the’ white elephant project.

    One thing Kenyans have to honestly know is that SGR is an expensive irrelevant project. Kenya pays China 1 Billion monthly, which roughly transilates to over Sh33 Million daily.

    In short, for SGR to be fully proffitable for both the contractor and Kenya, the successor of the white elephant after a whole damn decade, the Trains are supposed to ferry more than 35,000 Kenyans to and fro Mombasa daily, that leaves freight trains as side profits. Now, you get the joke Jubilee bluffed the whole Nation with.

  • Scandal Ridden Corine Mbiaketcha Appointed The Country Manager For VISA East Africa

    Scandal Ridden Corine Mbiaketcha Appointed The Country Manager For VISA East Africa

    Payments corporation Visa has appointed Corine Mbiaketcha as the Vice President and Country Manager for Visa in East Africa. Corine’s new position will be effective from November 5, 2019.

    Ms. Mbiaketcha joins Visa from Oracle, where she served as the Country Leader, Kenya, and Managing Director for Technology.

    Her new role will see her head and manage Nairobi’s team as the payments company spurs growth in the nation, as well as Uganda, Tanzania, Rwanda, Mauritius, and Ethiopia. Corine will also be tasked with Visa’s overall strategy in the greater E. Africa region, which entails building and strengthening relationships with clients, regulators and other primary stakeholders in the payments and finance space.

    At Oracle Technology Systems Kenya where she bid farewell to their Machiavellian and grotesque Country Leader CorineMbiaketcha–Nana to finally regain some corporate sobriety, there was plenty to commiserate and little to celebrate.She had exaggerated her importance for far too long.

    Corine’s scorched-earth policy impacted the standing of practically all major multinationals in the technology industry, casting a heavy shadow of mistrust for years to come, with likely stagnating if not shrinking revenues across these global players regionally. This is without taking into account the institutional damage of the Oracle brand occasioned under her watch in influential establishments such as KCB, Safaricom, Equity Group, IEBC and KRA.

    A typical tin–pot if there ever was one, Corine‘s leadershipstyle enabled by Oracle HQ’s hands–off attitude has not only cast off great talent much to the joy of Oracle’s competitors, but also reduced Oracle in Kenya to a brand of ridicule and smear, no longer attracting or exciting talent due to fear of discrimination, intimidation, acts of retaliation and constant abuse.

    In cahoots with dubious characters in HR, Corine executed her own brand of Oracle’s famed land-and-expand strategy best epitomized by how she tried forcing her countrymen down the throats of the EA hub in total disregard of their regional ineptitude.

    Could there be a pettier adult than a Country Leader who fights for a parking bay with juniors in a yard where the company has enough reserved slots?

    Truly leaders who don’t listen are quickly surrounded by people who have nothing to say, which explains all the ludicrous choices she made in replacements for the Kenyans she dismissed; abysmal, torrid, horrendous, clueless foreigners. And the results since January 2017 are clear.  

    The most shocking part of this reprehensible story is thatCorine‘s work permit had expired in March 2019 and she was forced to stay away from the office for 2 weeks, during which time she miraculously managed to obtain a renewal under very suspicious circumstances which can best be explained by the likes of KPMG Canada and their local affiliate.

    If it smells like a duck, walks like a duck and quacks like a duck… the likelihood of duplicate passports and immigration files to circumvent the earlier rejection of her permit renewal is quite high.

    By the same vein she would take every opportunity to elevate praise-singing foreigners at the expense of local talent, which explains why her reign at the Kenya hub is littered with fraud and abuse of immigration laws, including the orchestration and perfection of a system where Interns would be put in permit applications as understudies of the so-called expatriates working at Oracle, creating an endless, systemic cycle of abuse of local labour laws.

    Below is a non-exhaustive list of the so-called expatriates who have unfairly benefitted from Corine’s despicablepolicy of subjugating and displacing Kenyans, the Kenya Immigration is called upon to swiftly review the circumstances under which the individual work permits were issued:

    • Jason Bowers

    • Serge Blockman

    • Nial Meany

    • Bob Hroch

    • Neelu Arora

    • Pramod Nair

    • Piotr Piwowarczyk

    • Gopalkrishna Rayavarapu

    • Bukunmi Omidiran

    • Alexandra Gregorovic

    • Ade Famoti

    • Pardeep Khurana

    • Lucky Sharma

    The nitwits in Oracle HR such as FolakeAdeleye their Africa Director who has never defended a single employee in anything, and the tainted, embarrassing excuse of a Kenyan by the name Mukunya Mugo have long been Corine’s pigtails.

    Going by his tales in Google annals, it is as if Oracle never did any due diligence while on-boarding him back in 2015 after his Samsung EA heist, but have since then had him by his balls, squeezing as they wish. In this blackmail Mukunya’s boss Folake was most complicit, looking the other way as Corine executed her nefarious agenda on Kenyans via Mukunya.

    She has executed her own brand of Oracle’s famed land-and-expand strategy best epitomized by how she tried forcing 2 villagers by the names Alexis Bekoule and Ludovic Nono from her home hamlet in Cameroun down the throats of the EA hub in total disregard of their regional ineptitude.

    Corine single-handedly destroyed careers of highly talented Kenyans at the peak of their prowess, applying the most crude people management tactics reminiscent of a paranoid insecure village elder. Her drive to elicit high praise from all and sundry as well as absolute loyalty to her, meant that Oracle’s oft-ridiculed bus strategy was at its height during her tenure, with different lines of business cannibalizing each other in front of customers as they fought to control budgets and clinch deals.

    She reigned in creating as chaotic an environment as possible so that she could remain relevant in purporting to resolve the same chaos. How Oracle opted to build their EA kingdom with someone who craves attention from the village will always remain a mystery and a blot on their HR practices, especially for a global firm whose expertise is data.

    Whereas a few brave ex-Oracle employees are in court seeking justice and equity, majority are suffering in silence, afraid perhaps, to take on the behemoth that is Oracle. This is a call to all those former Oracle employees who were victims to come forward and share their experiences and be included in the soon to be filed Class Action suit.

    We are also aware of other individual lawsuits already filed and would be happy to bring to life those cases directly from the plaintiffs so that no current or future employees of Oracle suffer similar indignities. We will be a nuisance where it counts; we are playing our part to inform and stimulate others to join this cause.

    We must continuously be depressed, discouraged and disappointed at failure and the disheartening effects of ignorance, greed for power, corruption and mediocrity… but never give up. We must never allow other people’s limited perceptions to define us.

    The Kenya government, in particular the DCI, Kenya Immigration and the Judiciary, are called upon to do their part in rendering justice, including exacting punitive and deterrent fines on Oracle Corporation for the crimes and abuses committed in their name by their agent CorineMbiaketcha-Nana and her courtiers.

  • Kenyan Coffee Producer Inks. A Deal With American Beverage Company For Marijuana Laced Drinks

    Kenyan Coffee Producer Inks. A Deal With American Beverage Company For Marijuana Laced Drinks

    A Kenyan-based coffee producer has agreed to supply an American beverages company with ground berries for making bhang-laced drinks.

    The trade deal between the Fair Trade coffee-registered producer will see New York-listed Puration Company (PURA) produce Cannabidiol – CBD-infused lattes for the United States and European markets.

    A non-psychoactive compound that will be extracted from marijuana plants leaves, resins and flowers will be used in the CBD beverages among them non-alcoholic wine, water and kombucha to cold brew coffee.

    This will see coffee farmers notice a spike in their profits PURA has said. “Today, PURA is proud to announce entering into an agreement with a Fair Trade producer of coffee in Kenya. Farmers who grow Fair Trade coffee receive a fair price and their communities and the environment benefit as well,” said a disclosure.

    PURA says it has  engaged Kali-Extracts to use its patented cannabis extraction process to design the CBD infusion from ground coffee that is set for testing next month.

  • Narendra Raval, NCC’s Tycoon Ignores Rai’s Petition And Buys Sh5 Billion ARM Cement Plant

    Narendra Raval, NCC’s Tycoon Ignores Rai’s Petition And Buys Sh5 Billion ARM Cement Plant

    The world’s richest black man Aliko Dangote wanted to Buy the loss making Athi River Mining cement plan but, according to his foundation, ADF, people in Jubilee government demanded unmangeable bribes that saw him invest in Ethiopia.

    A worker in ARM cement Plant Photo|BD

    The very same embattled ARM has been bought by Devki’s National Cement Company a move that has seen billionaire Narendra Raval ‘Guru’  expand his kingdom in Cement making industry to second-largest manufacturer ahead of tomorrow’s court proceedings.

    Kabras Sugar mill owner Jaswat Rai and former ARM owner Pradeep Paunrana had petitioned the court to stop the sale. However, PriceWaterhouseCoopers (PwC) administarors have closed the deal despite a pending appeal in a case filed on July 11 this year that is set to be heard tomorrow, Wednesday 16th October.

    Yeasterday, Mr Raval said that NCC had received authorization of the Competition Authority of Kenya (CAK) on condition that they retains 95 per cent of the ARM’s current 1,100 employees. He stated that they decided to keep all the workers.

    “We are happy to inform you today that we have been able to complete the ARM acquisition and cleared all the transaction cost amounting to Sh5 billion to the PwC,” said Mr Raval.

    According to PwC’s Muniu Thoithi,  National Cement Company had taken over all assets and businesses of ARM after paying Sh1 billion and safeguarded a payment of Sh4 billion in the next two months to settle administration expenses and distribute to creditors.

    “Securing a suitable investor with the ability to make the requisite CapEx investments and inject the much-needed working capital to boost production to optimal and sustainable levels was a top priority for us given ARM’s dire financial situation and the poor state of the plant,” Muniu Thoithi said.

    PwC also sold off Tanzanian subsidiary following the clearance by the court to sell ARM Kenya business to a Chinese company, Huaxin Cement. HCC bought ARM subsidiary Maweni Limestone Limited, in Tanzania for Sh11.9 billion immediately Justice Mary Kasango lifted the stay orders.

    ARM is set to make NCC, which manufactures the Simba Cement brand, the second-biggest cement maker in Kenya.

    According to CAK data, Bamburi Cement is the market leader in the sub-sector with a market share of 33 percent.

    Jaswant Rai the billinaire owner of Western Kenya Sugar, Sukari Industries and Olepito Sugar Company who also acquired cooking oil and soap manufacturing Menengai Oil company has also been making an expansion into cement manufacturing. Rai has established small cement plant in Awasi, Kisumu.

    Earlier this year, NCC merged with Cemtech in West Pokot with significant limestone and clay deposits that are key components in Cement production.

    NCC is also constructing  a second 1.8 million metric tonnes p.a. clinker line in Kajiado that is set to be commissioned by 2020.

    Raval is also setting up another 0.75 million metric tonnes cement plant to be built in Kilifi while the 0.88 million metric tonnes is still underway to be commissioned in mid-2020.

    “These two plants will cost Sh3 billion each while the Kenyan plant of ARM Cement may increase their capacity by 0.4 million metric tonnes,” Apex Capital said in a note to investors.

  • Loss Making KQ Flops Salary Talks With KALPA

    Loss Making KQ Flops Salary Talks With KALPA

    Once The Pride Of Africa and now more like the circus of Africa Kenya Airways, KQ, management has flopped salary and pilots deficiency with Kenya Airline Pilots Association (Kalpa) again.

    KQ’s outgoing Chief Executive Sebastian Mikosz

    KALPA halted CBA talks with the Kenya Airways management after contrasting on how the airline should handle its pilot shortage.

    General-Secretary Murithi Nyagah in a letter to KQ’s outgoing Chief Executive Sebastian Mikosz, says the meetings had been thwarted until they commit to fair and honest dialogues.

    “The Association hereby suspends participation in CBA negotiations due to gross violations of the CBA and the lack of goodwill thereof from management,” said Captain Nyagah.

    On top of the suspension of CBA talks, Nyaga notified KALPA members that the union had filed a dispute in court after the talks slumped.

    “CBA negotiations will remain suspended until such a time we feel we are engaging in a fair and honest industrial climate. To this end the executive council is left with no choice but to declare a trade dispute at the Ministry of Labour,” said the letter dated October 14.

    KQ has been making consecutive losses for over a decade with recorded revealing that the airline records Sh5.18 billion loss annually. The key reason being flight cancellation as a result of the shortage of pilots.

    Currently, KQ has 435 pilots against the required 497 pilots. Paul Njoroge, the KQ’s director of Operations confirmed that the airline has a deficit of 62 Pilots.

    According to previous talks, KQ suggested hiring 20 Pilots for Boeing 737 planes a move the Pilots union strongly opposes. On their defence, KALPA  stated that 44 of the 435 pilots are also undergoing training due to the current promotion policy.

  • Rwanda Made Mara Smartphones To Be Availed On Kenyan Market

    Rwanda Made Mara Smartphones To Be Availed On Kenyan Market

    Last week, Kenya Insights wrote about Rwanda becoming the first African country to launch a manufacturing plant for smartphones.

    According to the production records, the Mara Phone factory commissioned last week on Tuesday by President Paul Kagame in Kigali is expected to manufacture at least 1,200 smartphones daily for sale in Rwanda and abroad.

    The Indian founder Ashish Thakkar who is also member of President Paul Kagame’s Presidential Advisory Council stated that the firm is in talks with regional countries including Kenya, DR Congo and Angola to export and sell the Rwanda-made smartphones.

    Thakkar had earlier disclosed that the company was scheduled to broaden on the continent and open another factory in South Africa.

    Since the official launch, Mara phones sale has increased with at least 30 handsets sold per day between Tuesday last week and today. In the past three months, the shop has sold about 130 phones.

    The Mara group established at a cost of over Ksh 5 billion by the Bank of Kigali, the factory directly employs 200 workers 90 per cent of whom are Rwandan and 60 per cent female to work in technology development, production and the assembly lines. The local and foreign engineers, currently work one shift a day.

    “Producing smartphones takes about 1,000 individual components in a complex manufacturing operation requiring significant technical skill and expertise,” said Mr Thakkar.

    Kenya Insights, due to blocked direct access to the factory floor, can not authoritatively authenticate claims that this is a manufacturing plant.

    However, according to a media source, the phones made at the plant are partially manufactured and partially assembled in Rwanda.

    “They make the motherboards in Rwanda using about 1,000 raw materials while the rest of the handset is assembled using imported parts,” the source told The EastAfrican.

    The factory is divided into different sections for technology development, production and assembly lines. The factory, so far, makes two phone models the Mara X and Mara Z retailing for Sh 13, 000 and Sh19,000 respectively.

    The Mara Z is a dual sim phone with a storage capacity of 32GB and memory of 3GB, while the Mara X is also a dual sim with 16GB space and 1GB memory. Both models are pre-installed with Google’s Android operating system.

    “I want to emphasise that this is a manufacturing facility and not an assembling plant,’’ Thakkar, the Indian founder of Mara group talked down the assembling allegations.

    As i had noted in the previous article, Mara Group has direct links with Equity Bank and the Bank has deep connections in the country, this is almost a done deal. Whether is good or bad for business time will tell. Rwanda is not a welcoming country for businesses runned and operated by foreigners. How our country will prioritize their products and sit down and watch locally produced laptops collapse with many Kenyan tech minds careers is what Kenyans should use when making next electoral decisions. And on Equity  why are your wings flying away from Kenyan innovations!?

  • Blow To KPA As High Court Halts The Auction Of Pension Scheme Properties

    Blow To KPA As High Court Halts The Auction Of Pension Scheme Properties

    More than 2000 members from Mombasa and Nairobi had filed a suit before the Mombasa High Court Justice PJ Otieno seeking orders to debar trustees of the Kenya Ports Authority Pension Scheme (KPAPS) from transferring management of its multimillion assets worth to Private Real Estate Agents and the planned backdoor sale of KPAPS houses.

    Reprieve to members as Lady Justice Dorah Chepkwony stopped the scheme’s trustees from selling prime properties, movable and immovable assets of KPA, including houses.

    “Pending the reference of the matter to arbitration and hearing and determination, a temporary injunction is hereby issued restraining defendants from transferring, alienating, disposing either by public or private treaty the prime properties both movable and immovable assets of KPA pension scheme including houses,” said Justice Chepkwony.

    Lady Justice Dorah Chepkwony stated that the matter should be referred to arbitration in terms of Clause 27 of the Trust Deed and Regulation of KPA pension scheme. Lady Justice Chepkwony was issuing an order in the case filed by Bwana Mohamed Bwana, a pensioner who was seeking to stop KPA from selling his house in Nyali.

    This cames at a time when more than 2,000 KPA staff members from Mombasa and Nairobi under the scheme had also petitioned the High Court to issue similar orders stopping the KPA-registered trustees from selling their houses to outsiders through Property Agents.

    On the 4th of May this year, the scheme directors were preparing to complete the deal with Kikambala Development company when KPA’s Board and Legal Services General Manager Catherine Muthoni Gatere rushed to court and stopped the transaction the next day.

    “The said purported agreement for sale is not signed by all trustees as is required by the provisions of the Trust Deed. Neither is it sealed with the common seal of the scheme, which is still in my possession in my office,” she said before Justice Mathew Anyara Emukule.

    Pension chairman Harry John Paul Arigi signed an affidavit saying members elected him to protect their interests, hence he has the power to manage it exclusively and independently without any interference from KPA.

    The pensioners said registered trustees had advertised for sale of all KPA pension scheme houses stating that the pension scheme took over the management of various houses namely Dedan Kimathi, Nyali, Kizingo, Nairobi, Mwembe Tayari, Mbaraki, Bamburi and others in Nairobi following non-remittance of monies to the scheme by the authority.

    “Arising from the agreement, therefore, the scheme assumed the ownership of the property with the staff in occupation becoming its tenants,” read the signatories’ letter to the management.