Kenya Insights

Category: Development

  • Taxpayers To Lose Sh38 Billion In Stalled Dam Projects

    Taxpayers To Lose Sh38 Billion In Stalled Dam Projects

    The National Assembly Committee on Environment has stated that sh38.4 Billion that the government made in advance payments of five stalled and collapsed dam projects cannot be recouped.

    According to the committee, the construction of the five dams has either yet to start, sluggish development, stalled altogether or their contracts have been terminated.

    The records indicate that the following dam projects have received these advance payments;

    Itare Dam got Sh4.2 billion, Karimenu II dam received Sh4 billion, Badasa Sh2 billion, Umaa Dam Sh1.6 billion and Thwake Multi-Purpose Dam has received Sh7.4 billion.

    The Committee has also raised concerns regarding the ongoing construction of Chemususu Dam and the Northern Collector Tunnel.

    Kimwarer and Arror dams that the Treasury made advance payments of Sh19 billion, that led to the prosecution of suspended Treasury Secretary Henry Rotich, including Sh11 billion debt insurance, Sh4.6 billion as loan interest and other costs were not part of the Environment Committee’s report.

    “The Auditor-General should institute a performance audit to inquire into the circumstances under which Athi Water Works Development Agency made the Sh4 billion advance payments to Chinese firm AVIC before acquisition of the requisite land for implementation of the Karimenu II Dam, leading to loss of public funds through idle time,” Kareke Mbiuki, who chairs the committee, said in the report on the Inquiry into the Status of Dams in Kenya.

    The committee has also asked the government to urgently engage the Italian firm, CMC Di Ravenna, to secure a subcontractor to complete the Sh28.9 billion Itare Dam project since the main contractor filed for bankruptcy in Italy.

    “This will save the project from permanently stalling. There is urgent need to renegotiate the terms of the loan to allow for a subcontractor to complete the project,” Mr Mbiuki said The committee said the broke Italian contractor had raised bills totalling Sh4 billion at the time of filing the report on October 11.

    The committee also wants the Water and Irrigation ministry to closely watch China Ghezuoba, the main contractor in the Sh36.7 billion Thwake Multi-Purpose dam.

    According to the committee, work progress at Thwake dam meant for hydro generation, irrigation and providing water for domestic use is sluggish yet the Chinese contractor has already received sh7.4 billion.

    Thwake project is fully Chinese owned as the report noted that it is handled supervised by Chinese contractors. No local professional has been included in the senior positions nor in the oversight of the project.

    In January 2018, China’s AVIC ventures received Sh4 billion to construct sh26.8 billion Karimenu II dam. On the ground, there is zero of work recorded after 2 years.

    In the Sh6.8 billion World Bank-backed Northern Collector Tunnel, the MPs want the Auditor-General to conduct a special audit of the Kigoro Water Treatment Plant that cost the taxpayer an additional Sh4.5 billion.

    “The auditor should establish if indeed the country realised value for money and report to Parliament within six months from the date of adoption of the report.”

    China’s Sino Hydro Corporation was awarded a contract to construct sh14 billion Mwache Dam. They valued the land at the site at sh1.8 million per acre yet they are paying land and property owners Sh550K. The committee has proposed to block any advance payment to the firm.

    The committee established that taxpayers lost Sh1.6 billion through an arbitral award to a contractor after terminating the Umaa Dam contract.

    Taxpayers also lost Sh2.4 billion in the government-funded Sh3.3 billion Badasa dam. The Chinese contractor terminated the contract with only half of the works done.

  • Is This Nairobi’s Most Expensive Ditch

    Is This Nairobi’s Most Expensive Ditch

    A tweet from a concerned Kenyan on Twitter has sparked a mixed reaction in the vast community of Kenyans on Twitter.

    The tunnel, according to Leon, was dug across Ngong Rd and left unmarked trapping 444 rated machines.

    https://twitter.com/Oc_e_No_/status/1184837968239955974?s=19

    The tunnel had trapped a Range Rover Sport, V8 and an FJ Cruiser. From the pictures, this indeed the most expensive tunnel in Nairobi. Are there no other models of vehicles using that route? Kenyans on Twitter asked.

    Here are samples of the reactions to the tweet that has since gone viral

    https://twitter.com/S_adamzz/status/1184865131513155586?s=19

    https://twitter.com/sammy_kg/status/1184977293774639106?s=19

    https://twitter.com/Oc_e_No_/status/1185080132874190848?s=19

    Personally, I think this ditch was organized and planned by insurance cartels, lawyers liaised with KURA folks to create a ‘normal’ accident scene so that the owners file for claims. I mean, this explains why its only high-End vehicles involved…

    https://twitter.com/arapsam/status/1185135715048415232?s=19

  • Counties Repaid Sh38Bn To Ghost Medical Equipment Suppliers

    Counties Repaid Sh38Bn To Ghost Medical Equipment Suppliers

    Auditor General report has revealed that Counties have been repaying ghost suppliers of the Health ministry’s leased Sh38 billion medical equipment four years.

    Counties are caughing out billions of shillings repaying not only ghost suppliers but also crippling county taxpayers by forcefully buying equipments without any recorded evidence of their benefits.

    County Health facilities are more sick than the real patients they have to cure and some of the expensive machines that counties are repaying are gathering dust in most of the hospitals.

    Auditor-General’s report indicate that the suppliers of the MES the Ministry of Health leased to counties have never been paid yet the records from the counties indicate that the money had been deducted from County Allocations.

    Each county pays sh200 million each year, initially the counties were paying Sh95 million.

    So for 47 counties, tax payers fork out Sh9.4 billion each year, up from the initial Sh4.5 billion since 2015, when the programme was started. Who exactly is eating these funds? Why is embattled MoH mute and playing numb as yhwy always do?

    According to the government, the modern equipment were meant to bring specialised treatment of cancer, diabetes and other serious illnesses closer to the people. The joke remains on people as, take for instance, cancer patients are all referred to KNH where a good number die while waiting on the long list that need to get the drugs and undergo chemo.

    Kidney dialysis machines, X-ray and theatre equipment, and intensive care units were also included in the Managed Equipment Scheme (MES) package.

    County Governments through the Council of  Governors have been complaining that the MoH never involved them in this expensive stagnant project. Since Health is a devolved function Counties are left caughing out funds to keep such half-guessed projects crawling.

    This report in a serious country can land couple of cartels behind bars, unfortunately, we are in a country where corruption is celebrated with baloons, fireworks, ceremonial positions, development only recorded on blueprints, national prayers that look more like a face-picture of National preyers… People who are supposed to keep wananchi Healthy are the very same cartels that directly looting and making them more sick in pockets.

     

     

  • 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.

  • KNH To Build Sh15 Billion Seven-Storey Private Hospital

    KNH To Build Sh15 Billion Seven-Storey Private Hospital

    Just when you thought you’ve seen enough of crap the State parastatal have shitted on Kenyans so far, KNH, a national referral hospital defecates another.

    Kenyatta National Hospital which is Kenya’s largest referral medical facility intends to put up a seven-storey private hospital to fund public services in the parent institution at a cost of Sh 15Billion.

    Scandal filled KNH said in a public notice posted in the dailies that the 300-bed facility that will stand on 3.6 hectares will be developed under a design, construct, equip, finance, operate and maintain model within the next five years.

    “Kenyatta National Hospital Board (KNHB) now wishes to have developed a separate private hospital (the Project) under a Public Private Partnership (PPP) arrangement that will serve fee-paying private patients, hence providing a source of additional funding to support the main public hospital,” says the published request for qualification (RFQ) notice.

    According to thise involved, the level six facility whose construction commences in 2020 is allegedly set to offer premium services and will be a standalone facility with 500 motor vehicle parking slots.

    “The prospective bidder must have acted as a hospital operator for not less than five years in a performance-based Level 6 specialist healthcare facility under a public-public partnership contract or a privately run Level 6 facility with a minimum 300 beds,” says the RFQ.

    According to KNH management, the contractor will manage, maintain as well as procure and install hi-tech medical equipment as well as oversee delivery of clinical services.

    Currently, KNH has a private wing where doctors run their own clinics but have to go to private hospitals to attend other patients.

    The facility whose feasibility study is being undertaken by Chinese company Ernst & Young, is the first healthcare public private partnership (PPP) project in Kenya where investors build and own a facility for a number of years to recover costs and make profit before transferring it to the State.

    The Secretary General and CEO of KMPDU Dr. Fn Oluga said this in relation to the statement published on dailies.

    In short, KNH wants to set up a medical facility that will be runned by private foreigners just the same way the loss making and economy killer SGR operates.

  • American Founder Of St Mary’s Hospitals Constructs Level 3 Facility Next To The One He Lost To Nakuru Nuns

    American Founder Of St Mary’s Hospitals Constructs Level 3 Facility Next To The One He Lost To Nakuru Nuns

    Dr William Charles Fryda, or as locals call him Muzungu wa nyumba, which loosely translates to ‘white kikuyu’ has said he’s too old to give up and used his savings to build a level 3 modernized mission Hospital few meters to the one he lost to Kenyan nun.

    Dr Fryda lost the control of a Sh3 billion hospital in Nakuru after a long court battle between him and the Nuns he had involved in the previous project.

    For the past seven, Dr Fryda and the Assumption Sisters of Nairobi battled over the ownership of St Mary’s Mission Hospital in Gilgil, Nakuru County and St Mary’s Lang’ata in Nairobi.

    In September 2017, the Environment and Lands Court in Nakuru ruled in favour of the nuns leaving the American Priest without hopes of sustaining his dedicated mission.

    Dr Fryda has since appealed the matter and even as he awaits the court’s determination on the case, he seems to have never fade up his spirit as he has already set up another hospital about 100 metres from the St Mary’s Gilgil.

    Dr Fryda has built a level 3 St Joseph’s Hospital, which he says was named after Mary’s husband in the Bible, a home he says he’s recreating much he lost through the court’s ruling, and taking the competition for patients to the nuns’ doorstep.

    “Please don’t take photos of me, I am an old man and my face is no longer attractive,” Dr Fryda jokingly tells SMG’s journalists as he joins the women on the bench for a chat.

    Dr Fryda narrated his journey to establishing a second medical facility after losing the first one in the first round in court.

    “We appealed against the Environment and Lands Court’s decision and are still waiting for the Court of Appeal to decide,” he says of the matter pending in court.

    “We had to start somewhere urgently to help those in need of services as we figure out how to start other facilities,”  Dr. Dra answered why he chose to set up another facility so close to St Mary’s

    “The skills remained with us and we chose not to bury them. I, however, hope we will get our facility back,” he says.

    “With me is a group of like-minded medical professionals who have after months of soul searching realised the need to have this facility in place. A Kenyan family that I will not name has given me 9.5 acres in Njoro Nakuru County and I will be building another facility there in near future ” he says.

    St Joseph’s is a three-storey building, part of what used to serve as a medical school, has been converted into a 70-bed capacity hospital, an x-ray room and an operating theatre.

    According to records seen by SMG, the facility has attended to more than 100 out-patients since it opened its doors to the public on Monday last week. The records also indicate that more than 60 patients were attended to on Monday alone.

    An American citizen, whose father was a cowboy and mother a teacher, Fryda arrived in Kenya in 1991 with the Mary-knoll Fathers and Brothers.

    On whether he is still a Catholic priest and how he relates with John Cardinal Njue after the bruising court battle, Fryda stated that once one is ordained a priest he remains a priest till the day he receives a letter from the Pope for excommunication. Something that he said has not happened to him yet.

    “If someone chucks you out of your home into the streets, do you still remain related to them? Fryda is a Catholic and Njue is still his spiritual leader like any other Catholic followers in the country,” he says.

    Forget the Catholic battle the old man has been embattled in for almost a decade now. Forget about his sponsors. St Mary’s Hospitals have been helping a lot of Kenyans and many as we all know our health systems are almost dysfunctional if not yet already.

    Kenyans are dying in the few death traps the government calls ‘national referral hospitals.’ Cancer is killing poor Kenyans and missions hospitals that are supposed to be pillars of hopes for poor Kenyans are pouring flammables on the already burning menace.

    Health should be a priority in this country. Politics that we have inserted in our hearts is doing more harm than good. Why aren’t Kenyans fighting for themselves the same way these politicians they blindly worship are fighting for themselves?

  • Survey: Quality Of Education In Kenya’s Universities Has Dropped Down By 57 Per Cent

    Survey: Quality Of Education In Kenya’s Universities Has Dropped Down By 57 Per Cent

    It may not be the best time to be a University student in Kenya as these institutions of higher learning increasingly get burdened by cash crunch, inept management and corruption.

    Even as the institutions grapple with bloated wage bills, irrelevant academic programmes and nepotism, most managers of these institutions continue to put up a brave show that masks the gravity of the situation.

    A survey by Synovate carried out in 2011 showed that 57 per cent of the 1,044 respondents sampled preferred foreign universities over local ones due to a perception of high quality standards, prestige and exposure to life overseas.

    This perception reflects the appreciation and need for high quality curriculum, facilities, faculty and co-curricular activities among Kenyan youth, whose aspirations have been frustrated.

    The vice chancellors committee chairman Prof. Francis Aduol indicated that Sixteen out of 31 public universities are in a deep financial crisis, a situation which compromises the quality of education they are offering.

    “Most public universities are unable to meet the basic salary needs of their workers and other obligations and that they require immediate intervention.

    Universities have huge financial challenges. We are unable to pay statutory deductions to the National Hospital Insurance Fund, National Social Security Fund and the Kenya Revenue Authority,” said Prof. Aduol

    He said universities are unable to pay pension amounting to Sh3.6 billion for staff who have retired since 2010 because Treasury has not released the funds.

    The latest spotlight has turned to Egerton University after the Kenya Revenue Authority froze its bank accounts over non-remittance of Sh670 million in taxes.

    Official records indicate that pension deduction for Egerton University employees to the National Social Security Fund (NSSF) has accumulated to Sh400 million.
    Employees’ deduction to the Egerton University Savings and Credit Cooperative Society has accumulated to over Sh400 million while union deductions totaling to Sh560 million have not been paid.

    In 2018, the Commission of Cooperative Development froze the university bank accounts owing to a debt amounting to Sh246 million.

    However, its Vice Chancellor Prof. Rose Mwonya said the problems were not unique to the varsity.

    “I assure the Egerton University students, staff and stakeholders that all is well and that the programmes will continue smoothly as scheduled,” she said in a signed statement.

    Prof. Mwonya maintained that the financial crisis at Egerton was not different from what all public universities were currently in.

    She however admitted that the institution has been undergoing tough financial times, just like all other universities in the country.

    “These problems have been caused by government’s reduced capitation over the last two academic years and the decline of Privately Sponsored Students Program (PSSP), which was the main source of income within the institution.

    We have been unable to keep pace with the remittance of statutory deductions to relevant authorities for some time.” Mwonya disclosed.

    She said the institution’s management had reached an agreement with KRA to settle the outstanding debt in due time.

    This comes just months after the institution hit headlines after constructing a sh70 million gate that doubles up as a security control complex. The complex also includes a mini supermarket for stocking university farm produce. It also has a bookshop and a security system located in one area.

    The security complex was however received with mixed reactions during its unveiling, with some of the students terming it as misplaced priority from the administration side.

    “It beats logic for the administration to spend 70 million on a gate yet engineering and media students have substandard equipment to use in their studies. The school should have prioritized learning equipment and spent less on the gate,” said one of the students.

    Egerton University has also been on the spotlight for alleged embezzlement of funds over the years.

    Under prof. Mwonya’s watch, the university authorized the construction of an electric fence at the cost of Sh44 million, which has never worked since its installation about a year ago.

    She has also refuted allegations that her administration pumped a whopping Sh180 million on the institution’s Ngongongeri farm in Njoro, with no returns.

  • Bill Gates: I Have A Cemented Friendship With Aliko Dangote

    Bill Gates: I Have A Cemented Friendship With Aliko Dangote

    By Bill Gates 
    Have you ever met someone new and immediately felt like you could talk to them for hours?

    That happened the first time I met Aliko Dangote. A couple years ago, he and I ended up going to the same event in New York. A mutual friend suggested that I meet him because he knew we were both super interested in global health. So we made sure to sit next to each other at dinner.

    As soon as we shook hands, it was clear we had a ton in common. We both started successful businesses in the late 1970s. For our second act in life, we both chose to start foundations aimed at improving health and education. (Today, the Dangote Foundation is the largest such organization in sub-Saharan Africa.)

    More importantly, we both love to geek out over things that make some people’s eyes glaze over, like cement, fertilizer, and iodized salt. Check out this video of Aliko’s recent visit to our foundation’s office in Seattle for proof:

    That first meeting sparked the beginning of a fruitful friendship. In 2016, our foundations announced a joint, five-year $100 million commitment to reducing malnutrition in Nigeria.

    Malnutrition is the greatest health inequity in the world. It’s responsible for nearly half of all under 5 deaths in Nigeria (and around the world). Even if you survive to adulthood, your chances of dying are much higher, and your quality of life is greatly reduced.

    One of the ways our foundations are working together to fight malnutrition is through food fortification. Kids often become malnourished when they don’t get enough micronutrients—vitamins and minerals—to digest their food properly. One way to correct this is by adding micronutrients to the food that families—especially those from low-income households—are purchasing every day.

    When you go to a grocery store in the U.S., a lot of food already has this fortification. Think iodized salt, or milk that comes with extra vitamin D and calcium. By introducing additional micronutrients to the food people are already eating, you can improve health without changing any habits. Our foundations are now working together to find other staple foods and condiments that could be used to deliver more micronutrients to more people in Nigeria, like fortified bouillon cubes. (I talked with Aliko about this at our Goalkeepers event in New York a couple days ago. You can watch a video of our conversation here.)

    Improving health in Nigeria is critical to making progress in sub-Saharan Africa. The country is home to nearly a quarter of all people living in sub-Saharan Africa, and that population is only going to grow in the future. By solving problems in Nigeria, you can have a huge impact on all of Africa.

    Aliko Dangote understands this, and that’s why he’s committed to making progress in his home country. Melinda and I are lucky to have him as a partner (and friend!) in improving health.

  • Lost Hopes For Brexit As Talks About New ‘Nosediving’ Deal Recommence

    Lost Hopes For Brexit As Talks About New ‘Nosediving’ Deal Recommence

    Earlier this month, Kenya reached an agreement to continue trading with Britain under preferential terms even after the UK still hold talks on how they will exit from the European Union. The deal that allowed the UK to provide duty-free, quota-free access to Kenyan goods exported to the UK. The two-year deal is set to give the UK government time to work on new trade agreements to replace the current European Union pacts.

    Stephen Barclay the UK’s Brexit Secretary traveled to Brussels on Friday, amid growing pessimism on the continent over whether a new withdrawal deal can be agreed. The EU’s chief negotiator, Michel Barnier, told diplomats on Thursday that the UK’s proposed alternative to the Irish backstop was unworkable.

    But according to the BBC Brussels reporter Adam Fleming, Stephen’s briefing were relaxed and mostly understated as he would put it, “ the briefing were downbeat.”

    According to Downing Street, the progress has been made but there were still significant obstacles to reaching a Brexit deal. The European diplomats thought the chances of finalizing a new Brexit deal by a crucial EU summit on 17 October were getting smaller as time goes.

    The UK is scheduled to leave the EU on October 31, although MPs have passed a law requiring Prime Minister Boris Johnson to seek an extension to that deadline from the bloc if he is unable to pass a deal in Parliament or get MPs to approve a no-deal Brexit, by October 19.

    Mr. Barclay and Mr. Barnier discussed alternatives to the Irish backstop, which aims to avoid a hard border on the island of Ireland after Brexit. The policy is unacceptable to many Conservative MPs, and Mr. Johnson has insisted a revised Brexit deal must include the abolition of the backstop.

    Ahead of Friday’s meeting, Mr. Barnier said the UK government’s proposed solution to the backstop would put the single market at risk.

    Bernier stated that the UK’s ideas so far involved managing different rules for Customs and products on either side of the Irish border, rather than keeping them the same across the whole island.

    The European Parliament’s Brexit co-ordinator, Guy Verhofstadt, who met Mr. Barnier on Thursday last week, said the UK’s proposals to resolve the Irish backstop issues fall short.

    As the Brexit talks continue to flip flop, Kenya industrialists and business moguls believe that there are huge opportunities for Kenya when the UK leaves the EU

    Kenya is already a major trading partner in a couple of key areas: fresh vegetables (80% of Kenya’s exports go to the UK) and black tea (also 80% of Kenya’s exports to the UK). But, other industries are blocked by the EU. Take, for instance, Kenya is unable to sell beef directly to the EU. Brexit could offer Kenya access to a major beef-consuming market if Kenya could ensure that it meets the safety standards which the UK government would set.

    “Brexit enables us to break out of the EU’s old-fashioned viewpoint about trade with Africa, which based almost entirely on commodities, to exploring much more diversified relationships with African countries viewed as partners in science and technology, entrepreneurship, education, tourism, finance, manufacturing, etc.” A source told the media

    The EU discourages industrialisation by imposing tariffs on processed products, for example. This means the incentive is only to cultivate raw goods, rather than, say, manufacturing or higher-level production.

    At the moment, many African countries are looking to China as a trading partner, but Chinese projects, just as many Africans would attest, have often been not taking notice of fair labour or environmental standards.

  • Why President Uhuru Has Canceled Kimwarer Dam Project And Approved Immediate Commencement Of Arror Project

    Why President Uhuru Has Canceled Kimwarer Dam Project And Approved Immediate Commencement Of Arror Project

    President Uhuru Kenyatta today at State House, Nairobi received a Report on Kimwarer and Arror Dam Projects from the Technical Committee he formed following the discovery of irregularities and improprieties surrounding the two infrastructure projects.

    At its formation, the President tasked the Technical Committee chaired by Principal Secretary for Infrastructure Prof Paul Maringa and comprising of Quantity Surveyor Julius Matu, Eng Benjamin Mwangi and Eng John Muiruri to assess the viability of the two dam projects and report to the Head of State within 30 days.

    In the course of their assignment, the Technical Committee reviewed the designs, technical sustainability and financial proposals of both dams and established as follows:

    (a) Kimwarer Dam

    The KShs 22.2 billion Kimwarer Dam was found to have been overpriced and that the project is neither technically nor financially viable.

    The committee established that no current reliable feasibility study had been conducted on the dam project.

    The only feasibility study carried out on a similar project twenty eight (28) years ago had revealed a geological fault across the 800 acre project area, which would have negative structural effects on the proposed dam.

    The Technical Committee also established that the project area is settled and would require compensation of displaced residents.

    According to the technical design of the Kimwarer Dam, the water supply mechanism would involve pumping, an aspect the Technical Committee found to be unsustainable in terms of operations and maintenance costs.

    Further, the Technical Committee established that the pumping would make the project financially unsustainable in the long run.

    Therefore, the Technical Committee recommended to the President that the Kimwarer Dam project be discontinued.

    (b) Arror Multipurpose Dam

    After a detailed technical review, the Technical Committee was satisfied that the Arror Multipurpose Dam Project is economically viable but noted that it was overpriced.

    As such, the committee recommended to the President a cost rationalisation plan that will ensure the project is implemented cost effectively without affecting its performance and out put.

    As part of the cost rationalization plan, the Technical Committee has prepared a new Bills of Quantities (BQ) for a modified dam with its height scaled down to 60 metres from the original design height of 96 metres which was found to be unviable.

    The optimized dam will be technically viable since it will only require about 250 acres of land and cost KShs 15.4 billion with power and Shs 13.1 billion without power. The dam was previously estimated to cost KShs 28.3 billion.

    Wayforward

    President Uhuru Kenyatta has accepted the report on the two dam projects as prepared and presented by the Technical Committee and directed as follows:

    (a) The immediate cancelation of the Kimwarer Dam project which was found to be technically and financially not feasible by the Technical Committee;

    (b) The immediate commencement of the implementation of the Arror Multipurpose Dam project with the new design components and cost rationalization plan as developed by the Technical Committee.

  • Scam: Nyamira County Lost Sh137 Million In Ghost Stadium Project.

    Scam: Nyamira County Lost Sh137 Million In Ghost Stadium Project.

    Five years ago, Nyamira County Government launched a renovation project of the main sports facility, Manga Stadium but the project has remained stagnant since the first time the county did the groundbreaking.

    Image result for manga stadium nyamira

     

    According to financial records in the Nyamira County offices, Sh64 million had been set aside to complete construction work on the facility in the 2014-2015 financial year, but only fencing was done.

    Last year, an official at the county had hinted that construction work would be finalized last July, but even that deadline passed with nothing being done at the stadium.

    “We will channel resources in the sports department towards completion of the stadium. There is no need of having many incomplete projects. Let’s finalize one major project, then deal with the others,” he added. ” Bernard Osumo, the county executive in charge of sports at the time, said.

    In the 2018-2019 financial year, another Sh73 million was allocated to the same project, but on the ground, there is nothing that can support how the money was spent. According to the blueprint of the stadium, once complete, the facility is expected to have a main stand, a VIP area with capacity for 4,000 and two spectator stands, each with a capacity of 1,400 fans.

    Image result for manga stadium nyamira

    The stadium is also expected to have standard changing rooms, security lights, treatment areas for players and an inner perimeter fence. Kenya Insights has tried to get a comment from the county executive in charge of sports, Johnstone Obike turned bootless. Obike declined to comment on the matter.

    “I’m not ready to talk about that issue now. I am attending to other official duties,” Obike told local media on phone.

    Governor John Nyagarama is the one who appointed Obike about four months ago, a move that has since sparked off protests from locals and county officials. The Governor has since requested for financial support from the national government to complete work on the stadium, saying the devolved unit lacked adequate funds.

    “As a county government, we have tried our best but that stadium requires a lot of money to finish, which is beyond our capacity,” Nyagarama told Nation Sport.

    Locals have been on record demanding a sports facility of a similar standard as the Bukhungu Stadium in Kakamega County or the Gusii Stadium in Kisii County. There has been allegations that construction work on the stadium was stopped due to an unfavorable terrain which does not favor construction of the stadium. One wonders, why did they launch a project without a feasibility study?

    According to locals speaking to media, sports officials in the county have not undertaken a major sports project since devolution started in 2013 with some blaming the governor of choosing his cartel cronies that don’t know anything about sports or sporting activities in the county.

    “We have to restore the lost glory as far as sports is concerned in Nyamira County. We have legends in sporting activities who did us proud but we are not nurturing future champions,” Said journalist Angwenyi Gichana. 

    Although no team from the county competes in the national league of any sport locally, Gekomoni Secondary School from Nyamira has won the national secondary schools’ football title twice, pointing at the talent the county hosts.

    Nyamira is also home to globally-acclaimed athletes who have brought Kenya glory internationally, led by Kenya’s pioneer Olympic gold medallist Naftali Temu. Others are Charles Asati and the late Robert Ouko, members of Kenya’s 4×400 metres relay team that won the first-ever Olympic gold medal for the country in the 1972 Munich Olympic Games, and sevens rugby star, Dennis Ombachi, and pioneer rugby legend Dan Kimoro.

    Another athletics legend from the region is the late Nyandika Maiyoro, a pioneer Kenyan athlete who caught the attention of the world while competing for Team Kenya during the British colonial rule in 1956 in Melbourne. Among Maiyoro’s key successes in athletics was his victory in 3,000 yards race at the 1953 Indian Ocean Games in Madagascar.

    Why is the County governments participating in killing local talent when they are supposed to be the key pillar in naturing, promoting and facilitating the growth of talent? County government should not be following the footsteps of the national government by appointing folks who are blunk upstairs in matters that affect 70 percent of youths.

  • Stanford University Graduate On Why He Decided To Settle Back And Work In Africa Instead Of The West

    Stanford University Graduate On Why He Decided To Settle Back And Work In Africa Instead Of The West

    By Fred Swaniker

    Why I decided to live and work in Africa

    Last week I found myself back in Silicon Valley at Stanford University where I did my MBA. I was privileged to attend a talk given by my friend Strive Masiyiwa (one of the entrepreneurs I admire). I encourage you to view the full talk on Strive’s facebook page. After Strive had given his talk, a couple of the students in the audience asked a question many Africans studying abroad almost always ask at such events: should they stay abroad or should they go back home?

    I have studied in America twice. Each time, I have come back to work on the continent within 3 months of graduating (the first time was for my undergraduate degree at Macalester College in Minnesota and the second time was after my MBA at Stanford University in California). My decision to come home as opposed to staying in the USA ultimately came down to 3 considerations:

    Reason #1: Africa is an entrepreneur’s paradise.

    I believe that Africa today is where China was 30 years ago. We’re just beginning to take off. So those on the ground today will capture all these exciting opportunities. This is especially so if you think like an entrepreneur. You see, entrepreneurs succeed by solving problems for society, and guess what–we have so many problems just waiting to be solved in Africa! For this reason, I call Africa ‘an entrepreneur’s paradise’.

    For example, we still need to create great infrastructure. So why not be the one to build Elon Musk’s ‘hyperloop’ and enable fast transportation across Africa, without us having to build expensive and obsolete highways? Or why not be the one to build low-cost housing for the 800 million people who will be moving into African cities over the next 40 years? Why not be the one to leverage technology to create low-cost healthcare or education for the hundreds of millions of Africans who don’t have it today? Why not take advantage of Africa’s abundant land, sunshine, and rain to become an ‘agro-billionaire’ by growing and exporting huge amounts of food to the world’s ballooning population? If you have an artistic flair, why not be the one to create the African Disney? Why not be the one to figure out how to bring consumer credit to hundreds of millions of people–perhaps using blockchain technology? Or become rich by creating tourism businesses that also promote the conservation of Africa’s wildlife? The list goes on. There is SO MUCH entrepreneurial opportunity in Africa!

    In the US and many western countries, almost all these ideas have already been done. So it’s very difficult to break through unless you have an extremely creative idea. In Africa, the ideas are simple. They’re just waiting for smart and courageous people to make them happen. With the exception of Elon Musk, I’ve never heard of an African billionaire in the USA. Have you? No–almost all the African billionaires we know–Strive Masiyiwa, Aliko Dangote, Patrice Motsepe, Jim Ovia, Folorunso Alakija, Mo Ibrahim, Manu Chandaria, etc– made their fortunes right here in Africa. Case closed.

    Reason #2: You can climb the corporate ladder faster in Africa than elsewhere

    All businesses in Africa need 3 things: a viable product, some capital, and talented teams. Of those three, most people think capital is in the shortest supply. That’s not true—it’s actually fairly easy to get capital as an entrepreneur if you have the right idea. The real shortage most businesses in Africa struggle with is finding well trained talent with the skills to execute. We have tremendous skills gaps in crucial areas that will be important for Africa to stay competitive. So if you’ve studied abroad and acquired those skills, you’ll be a hot commodity on the continent. I experienced this firsthand when I moved to Johannesburg after my first degree and started working with McKinsey. I was given far greater responsibilities than my colleagues who were working for the same company in New York. As a result, my career took off much faster than my peers who stayed in the USA.

    Reason #3: The priceless value of respect and dignity

    There is one thing I value far more than money or a successful career–and that is dignity and respect. In the USA, no matter how successful you get, you may be seen as a ‘foreigner’, an outsider, and (especially as the world becomes increasingly racist), even worst things. For example, before Uber came along, I had so many experiences of taxi drivers in New York driving right past me–a successful black man wearing a suit–to pick up the white passenger standing just 10 feet away. The ability to live in your own continent and not have to suffer such disrespect is something that I can’t begin to put a value on. I love living in Africa, listening to our own music, eating our own food, being close to family, friends, and others who respect me for who I am not and because of my skin color. Nothing beats that.

    We all have a role to play

    Of course, while returning home was the right choice for me and many others, it may not be right for everyone. If I haven’t convinced you about the phenomenal opportunities that exist on the continent, all is not lost. You can still play a role: last year, Africans abroad sent $33billion to Africa, which typically compares to or even exceeds foreign aid sent to Africa. This is is all investment that can support businesses on the continent and that is contributing to our development in some shape or form.

    On a final note, in Strive’s talk, he mentioned a program that we run together called the Africa Business Fellowship, where we bring young American professionals (mostly graduates from top MBA programs) to Africa to work in African companies for about 6 months.

    I recently met with a group of ABF fellows who had just finished their 6-month stint. The number one question on their minds was–how can I stay on the continent? Almost all of them didn’t want to go back to America! –which goes to show you that something special is happening on this continent. I hope many young Africans around the world will come home and be a part of it.

  • Urithi Housing Troubles Pilling As Victims Exposes Them Over Fraud

    Urithi Housing Troubles Pilling As Victims Exposes Them Over Fraud

    Urithi which was before scandals hit, one of the most promising real estate firms in the country, continues to come under fraudulent claims in the recent past. As investors in Suraya, Echeza, Gakuyo which happens to share a past with Urithi count their losses, a sudden panic has hit most investors not only with Urithi but other firms in the industry.

    At the backdrop of accusations that Urithi has been delaying issuance of tittle deeds which they’ve dismissed as falsehoods, their troubles see to take a steady flow.

    Following an expose on Daily Nation that alarmed Kenyans that Urithi bubble had finally bursted, Mr Samuel Maina the chairman, appeared on the media with a claim that it was not true that the company was in financial problems.

    A former staff member has come out to give damning information further information that Urithi is hiding the truth from the public. “What i know, as a member and from previous employees,  is that the company is on the verge of collapse. They have not been able to pay some employees for several months, and that is due to embezzlement of the Sacco’s finance , by many CEOs and the chairman.” He alleges.

    He continues, “ I have been trying since last year to get my shares refunded, after they promised to give tittle to land they “were” buying in Malindi, where I bought 10 acres, “i have receipts to prove that. They never gave me any tittle, and it takes a maximum one month to get a tittle in Kenya , from my experience buying land from private parties. I have not received my refunds yet, but was promised another piece of property instead, which they have not shown me a tittle since October, 2018.”

    Ben Leakey goes further to explain himself, “The Sacco is targeting to get as much money from Kenyans in Diaspora and I would warn anyone who is buying or knows anyone buying not to invest a dollar with Urithi Sacco, until we get a confirmation from the Embassy or from the Office of the President.”

    Brian, another investor with Urithi has gone out to make fraud allegations, “Am also a victim of Urithi investment!I invested some cash with them hoping to get good returns but 2 years on, they haven’t paid a single cent! Worse still, when I went to their head office to withdraw, they wouldn’t even give me a withdrawal form or let me write one! Our government has failed us miserably!”

  • Cytonn Delivers Ruaka Alma’s Phase One Project

    Cytonn Delivers Ruaka Alma’s Phase One Project

    Cytonn Real Estate, the development affiliate of Cytonn Investments is on the cusp of delivering Phase 1 of its second project, The Alma in Ruaka. The first was Amara Ridge in Karen, whose 10 houses were all sold and handed over. The Alma has a staggering 477 apartments, a mix of 1, 2 and 3 bedroom units. If you think about it, these are two totally different projects. Amara’s 5-bedroom maisonettes in the exclusive Karen neighbourhood seem a far cry from The Alma’s apartment setup in the booming Ruaka metropolis.

    So, why Ruaka? More pertinently, why The Alma?

    Just a decade ago, Ruaka was only a sleepy town in Kiambutown. However, it grew very fast due to certain key factors. In 2003, the U.S. Embassy moved to Gigiri, just a stone’s throw from Ruaka. The additional presence of the Canadian High Commission and the UNEP headquarters meant that the town fell within a diplomatic blue zone, heightening security in the region. Another factor was its closeness to the exclusive Runda area as well as the presence of international schools like Braeburn, Rosslyn Academy and Broookhouse, which also spurred the growth of Ruaka as more middle–class and high net worth families were settling in the area. Lastly, the construction of Two Rivers Mall, the biggest in East and Central Africa, right at the heart of Ruaka, cemented its position as an upwardly mobile area.

    A view of Alma.

    As a result, the once nondescript town quickly became one of the most sought after residential addresses in the outskirts of Nairobi. Land owners and investors saw (and continue to see) massive returns as the value of their properties skyrocketed. One peculiar thing about Ruaka was that houses were always in high demand. Cytonn noticed that even when the appetite for homes decreased in other growing towns, occupancy in Ruaka stood at about 96%, a rare phenomenon. Another thing that grabbed the attention of the real estate firm was that, while there were hundreds of apartment buildings in the area, there weren’t enough good quality ones to meet the demands of the middle class clientele. This was what led to the conception of The Alma.

    From the beginning, Cytonn Real Estate wanted to set up a self-sustaining, mixed use development that catered to all the needs of its residents. Essentially, this project would create a live, work and play environment for anyone who lived there. The list of amenities offered is impressive, especially when you consider that the units are affordable and the prices fallwell within the market standard. The most attractive feature is a retail centre within the project, with space for several different stores and businesses, meaning that those living there will not have to leave the development to access much needed services.

    The Alma.

    Aside from that, The Alma is designed with families in mind. The project has a nursery school in the premises to ensure that the young ones have a world class start to their education in a safe and secure environment. Additionally, there are elevated playgrounds for the children to play in, socialize and get some exercise in a controlled environment, away from strangers, unsafe roads and all other dangers.

    To wind up the list of amenities is a well-equipped gym, swimming pool, parking bay, back-up generators, monitored CCTV, and high speed lifts for each block. Added to the exquisite interiors of each unit, The Alma becomes a must have for any discerning homebuyer or investor, a fact that is supported by hard data.

    The earliest buyers of The Alma – those who invested when the project broke ground in 2016 – have already achieved 55% capital appreciation, and this is expected to grow further when Phase 1 is handed over at the end of June this year. Furthermore, Phase 1 is already 96% sold, with only a few units remaining. Clearly, people have begun to notice what Cytonn envisioned all those years ago: that there will always be a market for quality yet affordable housing, if it’s built in the right area and has all the right amenities.

  • Is There Any Future With Urithi Coorperative Society

    Is There Any Future With Urithi Coorperative Society

    For time now, the property market in Kenya has been undergoing heavy tsunamis, Urithi Housing has not been spared and this is a bad news.

    The news that Urithi Cooperative Society and Suraya Properties Limited have run into headwinds has added more Kenyans to a rapidly increasing list of investors whose wish to own homes has turned to a nightmare.

    Real estates bubble burst in Kenya is real and is happening. Apart from Suraya and Gakuyo all the real estates firm including Urithi are now facing real danger of collapse which is scary. Many innocent Kenyans are now been dragged into a painful end unknowingly by investing their lives savings into scamming establishments as they all turn out to be eventually.

    As the pattern goes, Urithi has been at pains to convince their customers and their exude confidence by having to constantly fight ‘bad’ press which illuminates an underlying problem. What exactly is happening at the firm. Is it enemies fighting I mean business rivalry or a plain scam in play? Pay attention.

    With 8,000+ registered members, Urithi established in 2012 under the chairmanship of Mr. Samuel Maina has had endless fraud allegations beside positive reviews. Televangelist David Kariuki is amongst the founders of Urithi, they’d later part ways in 2013 to set up Gakuyo Real Estate and later Ekeza Sacco, which have both collapsed and left many investors counting losses and wreathing in pain.

    Urithi has had to fight off fraud claims with the recent case highlighted on national paper that a local bank is putting up for sale one hundred acres of land belonging to Urithi Housing Co-operative Society, in what the paper described as the housing bubble for one of Kenya’s leading real estate developers bursting, and definite to leave thousands of its members in a quandary.

    Now, two of Urithi’s housing ventures are in trouble — one is up for sale while developers in another property in Thika have been kicked out by the previous owner who says Urithi failed to pay him the balance.

    However, these claims have been watered down by Urithi who claims all is well but according to an earlier customer feed back, all is not well as it would be wished as below states.

    The questions and unresolved queries have flooded the developer and below are just but

    It goes on and if we had to make a list of complaints raised, this would go endlessly. Matter at hand, the Urithi land in question, named Panorama Gardens, is located in Gatanga, a few minutes’ drive from Blue Post Hotel in Thika. Urithi Housing had acquired this land in 2016 — after agreeing to finance a defaulted loan that the previous owner had with the bank.

    They paid him Sh1 billion and took over his bank liabilities, agreeing to repay the bank the Sh500 million balance in five years.

    Urithi chairman Samuel Maina has however come out defensively claiming they’ve  cleared with the bank.

    Urithi’s PR response to Daily Nation’s fraud claims.

    In further response to the burning issue of land auctioning that has left many investors panicking. Urithi Housing Cooperative has dispelled fears that the multibillion organization is insolvent and headed for collapse.

    Urithi Housing Cooperative Chairman Samuel Maina said the company is not financially constrained and has received a go ahead from Family Bank.

    “The organization is financially stable, and we have received a clearance letter from Family Bank which wanted to auction our 104-acre panorama gardens property on Thika-Gatanga road.

    The bank had initially given the housing company 45 days to clear Sh45 million of debt arrears. Maina said they have worked to contribute Sh23 million shillings to clear part of their debt. “We have deposited Sh23 million shillings and we plan to re-negotiate the payment period for the loan,” he said.

    Family Bank has been struggling to stay afloat with many fears that with its steady trend of loss making it could collapse alongside National Bank, Imperial and Chase Bank. Housing Finance which almost shares business model with Family is also bursting nerves to stay on the game despite heavy loss making.

    Panorama Gardens which is at the epicenter of Urithi’s troubles was marketed and sold by Urithi as ready plots for immediate development and attracted 400 investors, with an eighth of an acre going for Sh2.25 million.

    The investors now claim they cannot develop the property because most of them have never been issued with title deeds while some are only in possession of ownership certificates or agreements they entered with Urithi.

    “Out of the 400 investors who bought plots at Panorama Gardens, nearly 70 per cent have cleared their balances. We are currently reaching out to the members who owe us some money to clear their balances so that we can conclude documentation and issue title deeds to the members,” Mr Maina said.

    Even as this is happening, another trouble is brewing for Urithi pitting the organisation and investors who bought another property behind Mang’u High School, dubbed Tola 3 and Tola 4.

    Ms Jane Wachira bought two undeveloped plots measuring 40×80 in 2016 for Sh2.4 million at Tola 4.

    Her biggest predicament is that she cannot develop the land even after completing paying for the property and despite being in possession of an ownership certificate issued to her by Urithi.

    In 2017, the vendor who sold the said land to Urithi dug a trench on her property and brought down the beacons claiming Urithi had not cleared paying for the land.

    “I bought this property at Tola 4 in 2016 and completed paying for it in 2017. We did not know there was a problem until this year when the landowner who sold the property to Urithi dug a trench and brought down the beacon and marked the property for demolition,’’ said Ms Wachira.

    Ms Mercy Kamau also bought a plot at Tola 3 in 2016 measuring 40/80 at Sh925,000 from Urithi.

    NO TITLE DEED

    She was issued with an ownership certificate with a promise of getting a title deed within three to four months. It never happened.

    In April 2017, she started constructing a five bedroom maisonette. In 2018, the landowner who had sold the land to Urithi stopped the development.

    However, the Urithi chairman told the Nationthey are working with these members to resolve the issue.

    Even as Urithi puts up a strong face in the midst of all the fraud accusations, one big gamble for investors is whether to keep their money with Urithi or run away before the bubble bursts if at all it will or potential investors to take the risks. One thing that remains definite is Urithi has a lot to do in terms of customer confidence.

    Many Kenyans are becoming skeptical given the pattern of developers swallowing their investments and nothing happening. It’s not only Urithi but there’s need for a deep analogy, ultimate due diligence before investing. Don’t pay too much attention to media decorations instead engage professionals for expert opinions.

    If you have any issue on Urithi or any other developer, it could be a scandal or anything, don’t hesitate to drop me an email as we embark on a journey to inform the public on the real estate bubble. ([email protected])

  • Researcher Claims State Stole His Affordable Housing Fund Concept Without Compensation

    Researcher Claims State Stole His Affordable Housing Fund Concept Without Compensation

    A researcher has gone to court seeking to stop the government from implementing the National Housing Development Fund, arguing that the concept was his brainchild yet he has not been compensated.

    Mr David Bor, through lawyer Nicholas Ngumbi, filed the case under certificate of urgency, accusing the government of planning to rollout the scheme without compensating him.

    He said the Ministry of Infrastructure, Housing and Urban Development, has enacted regulations, whose effect is to compulsorily acquire his intellectual property.

    Mr Bor said this is against copyright law and a violation of his rights. He has called his concept MUCCLES Concept Formula, which he says he registered in March 16, 2007.

    Mr Bor told the court that he has been researching since 1998 on the concept of mortgage finance concept with focus on creation of better and affordable urban settlements. He said he later came up with a Multi-Concept Cluster Lending System (MUCCLE Concept formula), which he said is an amalgamation of several conventional business ideas into a single concept.

    He said he previously came up with a housing mortgage fund, which he tried registering without success and later registered the Nairobi Housing Cooperative Society. He said the idea is to increase access of home loans to middle and low income earners.

    Mr Bor said the Fund to be established by the government is strikingly similar to his idea and had previously shared the concept with government officials.

    “The regulations promulgated are strikingly similar to intellectual copyright already existing in his formula and which has been registered as a copyright in Kenya,” Mr Ngumbi told Justice Weldon Korir.

    The government came up with Housing Development Fund after the enactment of Finance Bill, 2018.

    There is also a plan to deduct 1.5 percent from workers salaries towards a housing levy, although the matter is pending in court as several unions opposed the plans saying there was no public consultations. In the plan, homes will be allocated through randomised allocation system, where potential owners will be selected from a waiting list of registered prequalified eligible applicants.

  • No More Room, CBK Governor Patrick Njoroge Warns Government From More Borrowing

    No More Room, CBK Governor Patrick Njoroge Warns Government From More Borrowing

    May 28 (Reuters) – Kenya’s headroom for new borrowing has shrunk since it tapped the Eurobond market this month and it is time for the country to begin reorganising its debt, central bank governor Patrick Njoroge said on Tuesday.

    Njoroge, whose term is due to end next month, told reporters that the $2.1 billion Eurobond issuance in mid-May allowed Kenya to refinance some of its existing loans and “hopefully (give) us more room to expand the economy” and increase export capacity.

    Kenya’s public debt as a percentage of gross domestic product (GDP) has increased to 55% from 42% when President Uhuru Kenyatta took office in 2013. The East African government has defended the increased borrowing, saying the country must invest in its infrastructure, including roads and railways.

    Critics of the borrowing spree have questioned the value of some of the projects, particularly the billion China-backed railway project completed in 2017.

    “As advisers of the government, our point is this is the time to begin working on reorganising our debt, not in a frantic way, so doing it the Eliud Kipchoge way, which is (that) it’s a marathon (run) and you have to do it in a steady way.”

    The latest Eurobond was issued in tranches of seven and 12-year paper. The seven-year portion of the latest issue was priced at 7.0%, while the longer-dated tranche was priced at 8.0%.

    “It is important to say that the moment for dealing with debt reorganisation, looking at debt and itself reorganizing it,…that moment has come,” Njoroge said. He did not spell out how the debt could be restructured.

    Kenya is also negotiating with the World Bank for a $750 million loan for budgetary support, documents on the lender’s website showed on Tuesday.

    Njoroge declined to comment on whether his tenure will be extended for a second and final four-year term.

    The Kenyan economy expanded by 6.3% in 2018 as good rains boosted the agriculture sector. But a delayed start to Kenya’s rainy season this year could shave as much as 0.4% off forecasted growth, he said.

    “We are not talking drought like we had in 2017,” Njoroge said, “because the rains have arrived, and the question now is are they adequate?”

    The bank has forecast the same growth rate for this year, but the first rains, which usually start in March, did not come until late April.

    First-quarter growth data, usually released in June, would make the outlook for this year clearer, he said.

    The central bank held its benchmark lending rate at 9.0% on Monday, saying it would keep an eye on recent food and fuel price rises that could fuel inflation.

    The U.S.-China trade dispute had escalated to a “full-scale war”, Njoroge added, and posed risks to the Kenyan economy. Uncertainty over Britain’s planned exit from the European Union is another external risk, he said.

  • Promoting Animal Safety during Disasters

    Promoting Animal Safety during Disasters

    The World Animal Protection, an international not-for-profit organization that guards’ animals from cruelty and suffering launched the Animals in Disaster initiative, seeking to promote animal protection within national disaster risk management systems.

    In partnership with the County Government of Laikipia, Department of Veterinary Services and the University of Nairobi, the public campaign was launched yesterday in Nanyuki town. It strives to facilitate swift response to animals faced by disasters such as diseases, floods, drought, landslides and fires. All partners and members of the public signed a pledge committing to protect animals.

    “Every time disaster strikes, livelihoods and productive assets are affected among them livestock and working animals. The negative effects are destructive on the family unit and overall community resilience. The Animal in Disasters initiative seeks to invest and enhance animal protection through effective disaster preparedness and response,” said Tennyson Williams, Director for Africa, World Animal Protection.

    A resident of Nanyuki signs the pledge that rallies governments and the public to protect animals during disaster.

    World Animal Protection is supporting countries achieve the Sendai Framework for disaster risk reduction (2016–2030) whose main objective is to reduce disaster risks that undermine development. This year’s Animal in Disastersinitiative is running in South America (Costa Rica, Brazil and Mexico), Asia (India & Thailand) and Africa (Kenya) with the global initiative having converged in Geneva during the global United Nations Disaster Risk Reduction (UNDRR) meeting held from 13 – 15 May 2019.

    In Africa, represented by Kenya, the campaign will supportthe development of animal disaster funds (ADF) in partnership with the government at national and county levels. Once established, the ADF will facilitate rapid response to animal disasters caused by notifiable diseases and natural hazards.

    It will also facilitate the establishment of National and County Animals Emergency Disaster Plans, support training for specialised veterinary response and establish animal evacuation and holding facilities.

    Members of the public and partners marching within Nanyuki town during the launch of the Animals in Disaster Campaign.

    “Livestock husbandry being a devolved function, we have made great strides toward the protection of animals through legislation and deliberate projects that promote animal welfare. We continue to work with the World Animal Protection and line partners, scaling up our operations to ensure we safeguard animals from common disasters,” noted Dr. Lucy Murugi, County Executive Committee Member for Agriculture, Livestock and Fisheries, Laikipia county.

    Under the slogan #DontForgetThem, the global campaign is anchored on four focus areas: Policies; Capacity Building, Animal Disaster Financing (Funds and insurance) and Public participation.

    The Animal Disaster Fund will: develop Animal Emergency Response Plans for livestock, companion animals, working animals, wildlife, and aquatic animals; prepare, respond and recover from animal related disasters; establish Veterinary Emergency Response units; as well as support veterinary emergency training at the University of Nairobi, AHITIs, national and county Departments of Veterinary Services.

    It will also develop and disseminate disaster preparedness information to animal owners and the public; integrate animal welfare and disaster risk reduction into livestock extension services, also develop and upgrade livestock infrastructure to be disaster-ready to support relocation and recovery.

    Members of Laikipia County Executive and Legislature holding the pledge that rallies governments and the public to protect animals during disaster.

    This will guarantee immediate relief to animals affected in disasters, an angle that has not been prioritized by the disaster response and management bodies.  Past rescues have focussedon saving human lives overlooking the protection of key livelihoods and productive assets such as livestock and working animals.

    The launch was graced by Mr. Tennyson Williams, Director for Africa, World Animal Protection, Dr. Lucy Murugi, County Executive Committee Member for Agriculture, Livestock and Fisheries, Laikipia county, Members of the County Assembly and representatives from the Department of Veterinary Services and the University of Nairobi.

  • Government Abandons New SGR

    Government Abandons New SGR

    Kenya has been rolling deep down into public debt in the name of development. Government handlers have been on the frying pot for advising the government of projects that are not profit generating at the expense of the tax payers.

    Recently a Chinese loan worth Ksh.374 billion for the extension of the SGR from Naivasha to Malaba didn’t materialize. With some saying that Chinese now wants the government to prove that they are going to pay for the first loan.

    The government of Kenya now has plans to modernize the old railway track to link a newer line to neighbouring Uganda at a cost of Ksh.21.3billion.

    Sources in the government indicate that unidentified private financier has offered to fully back up the project. This is almost 15 times cheaper than building another almost modern railway with Chinese loan.

    also read:Container Freight Station Owners To Lose Sh35B Investment In SGR’s Cargo Debacle.

    The SGR was under  China’s “One Belt, One Road” initiative, a multi-billion dollar series of infrastructure projects upgrading land and maritime trade routes between China and Europe, Asia and Africa.

    The Nairobi-Mombasa SGR that was launched at a cost of Ksh 323.9 billion then later linked with Nairobi-Naivasha line costing Ksh.151.7billion might sound as a serious wastage joke when the government links it to Naivasha-Malaba track that will cost Ksh 21.3 billion.

    “We need to make sure that when we commission the SGR in August, we have connectivity to Uganda from the SGR so we have to rehabilitate that line to make sure it is properly functional,” said CS James Macharia,

    Macharia also said that using Ksh.15 billion to rehabilitate decades-old line from Malaba on the border with Uganda and using the remaining amount construct another short track connecting to the SGR at Naivasha within a year would be a faster option than building another SGR.

  • Buyer Beware: Banda Homes Pyramid Scheme

    Buyer Beware: Banda Homes Pyramid Scheme

    Hello Sir,

    I will try to keep this as brief as possible while giving as much info as I can on this company ‘Banda homes’, and why I believe it will dwarf Suraya Property and Ekeza sacco fraud in a couple of months or so.

    Our major failure as Kenyans is that we labor hard to make money but are too lazy to conduct due diligence before laying down our hard earned money in investments. Any company advertising on our TV, radio stations, Internet and billboards is deemed legit enough to put our coins into.

    Banda homes is an offplan developer meaning they sell off houses at design stage and builds them as monthly instalment are paid along the duration of construction. It started out as Dinara developers around 2011, then Lettas developers around 2013, then Banda homes in 2018. The directors mastered the art of rebranding each time after soiling their reputation of not delivering on their projects through mismanagement of funds.

    As we speak now there are projects started as far back as 2011 that are still ongoing, and still today you have customers buying into Banda homes as they are unaware of this fraudulent past.

    At the center of this circus is a man Andrew Kamau Muhiu the mastermind of all this. A 35 yr old fellow living a good life with a dozen homes high end vehicles and several women in line. (Brother to the late lawyer Paul Magu Muhiu, who committed cult killings of his wife and 3 children, before committing suicide back in 2015).

    He hides behind curtains and has put up his former employees as directors so that them that check on Banda homes don’t stumble on his fraudulent name.

    The fraud

    Mr Kamau has court cases to his neck from his previous unfinished projects from mismanagement in Dinara and Lettas developers. Some projects are in Thindigua and a handful in Thika. His solution was to raise funds externally to plug the deficit as the cases were not going away and have been on for years.

    Enter Banda

    In January 2018 he launched two housing estates in Kimunyu, Kenyatta Rd. Through vigorous marketing sold out about 100units securing a deposit of 150M (houses cost 4M, deposit of 1.5M bal in 10months).

    Part of this money went to clear deficits of his previous failed projects.

    He further launched more estates between January and April 2018 with most being along Kenyatta Rd. Off Thika Rd and some in Kikuyu near Sigona totalling about 900 units and collecting deposits of about Sh.1.5Billion.

    This amount was used to partly pay for the land of the estates and about Sh.200M diverted to finish up the old projects.

    Going forward he had a deficit of about Sh.300M diverted to old projects. Also a lion share of these deposits was used to purchase the pieces of land.

    Enter Kenyatta family land

    Mr Kamau convinced one of the heirs of the Kenyatta family to sell him a 20 acre piece for 7million per acre. He had 145 housing units designed on this piece of land and sold them out in a month getting about Sh.218M in deposits, he used this to pay part of the land cost and to cover back the Sh.300M diverted from Banda homes.

    When Former First lady Mama Ngina heard about the price their family land was sold at she rejected the sale and returned the deposit to Banda homes (should have been 15M per acre). That’s when this story was aired in the media in September last year.
    Most buyers came for their refunds but we’re told to wait, as there was no money anyway. This is when the rain started beating them.

    Banda homes went on to launch two more estates with about 300units, seeking to solve their issues with customer deposits.

    In all these estates customers were expected to continue with monthly instalments of about 300,000 each, to support ongoing construction. But on noticing very slow progress despite the consistent payments, most started holding on further payments until they see satisfactory progress on their housing units.

    Them that have bought into the estates are trapped as there is a clause in the contract that says you forfeit 40% of your initial deposit if you choose to pull out of the contract.

    Problem is more and more Kenyans are still buying into this estates not knowing what awaits them. They are roped in by cheap prices and a vigorous marketing machine ‘The Property Show’ included.

    When Kenyans finally realize the truth and Banda homes cannot get any more deposits, the chicken will come home to roost. Before us will be a developer who has duped us to invest in over 1500 units, mismanaged over Sh.3Billion of Kenyans money and counting not delivered on any of them (to put this in perspective, some of these estates have only done bush clearing despite having been sold out).

    Like pyramid schemes the lifeline of Banda homes has been deposits from new buyers, being the reason the company has launched estates totalling 1500units in just a year, who can beat this record.

    Until then give knowledge to them that are too lazy to do due diligence.