Category: Development

The Kenyan authorities have decided to put an end to the 1,050-MW Lamu power project led by Centum Investmentand French firm Rubis now that its main financial backer, Industrial and Commercial Bank of China, has left. The Lamu coal-fired thermal power station project is turning into a fiasco.

The Lamu coal-fired thermal power station project isturning into a fiasco. It is in such disarray that President Uhuru Kenyatta has asked his Cabinet Secretary for Energy Charles Keter to call it off. Keter and his Principal Secretary Joseph Njoroge are now busy getting all subcontractors employed by the consortium in charge of the 1,050-MW project, Amu Power, to leave the coastal town of Lamu.

Construction of the 1,050 megawatt plant was scheduled to begin in 2015 but has been repeatedly halted due, in part, to opposition by environmentalists.

Environmentalists say the plant will pollute the air, and destroy mangroves and breeding grounds for five endangered species of marine turtles, fish and other marine life.

The plant’s backers say it would help tackle Kenya’s frequent power blackouts by increasing generation capacity by nearly a third and producing power that would cost about half what consumers currently pay.

The 1,050 MW is equivalent to 45 per cent of Kenya’s current installed power capacity of 2,333 MW.

In 2018, a court suspended the project for a second time, sending the dispute back to an environmental tribunal following a petition from Save Lamu Natural Justice.

The activists reckon that emissions from the plant would pollute Lamu’s pristine air, 21 kilometres from plant, and pose health hazards on an island that is a Unesco World Heritage site and a top tourist destination.

They also argue that the project lacks “economic viability.”

Last year the National Environment Tribunal (NET) ruled that the National Environment Management Authority (Nema) issued the environmental impact assessment (EIA) licence to Amu Power Company Ltd without following the law and cancelled the license for the Sh200B project.

The tribunal faulted the project for omitting engineering plans and details of the plant from public participation, in addition to finding that it was not consistent with the Climate Change Act.

Parliamentary committee on health services has called for upgrading of Jaramogi Oginga Odinga Teaching and Referral Hospital in Kisumu to a level six facility.

This would see the hospital taken over by the national government and given adequate funding to offer quality services.

Currently, the facility, which serves the larger Nyanza region and neighbouring counties, lacks the necessary facilities forcing patients to be transferred to Moi Teaching and Referral Hospital in Eldoret and Kenyatta National Hospital which are run by the national government.

Health Committee Vice Chairman Joshua Kutuny who led a tour to the facility over the weekend said the hospital which is one of the oldest in the country qualified for the upgrade given the large number of patients it handles.

“We are aware that this hospital not only handles patients from Kisumu, Siaya, Migori and Homa Bay but also from as far as Kericho, Kakamega, Busia and Nandi counties. Therefore, it must be adequately funded to offer quality services,” he noted.

He said the committee has engaged the national government and Ministry of Health officials to fast track the process.

Kutuny who is Member of Parliament (MP) for Cherangany said the committee was concerned about the inadequate funds released to the facility by the government which he said has affected service delivery.

“This facility is in the same league with Kenyatta National Hospital but it is unfortunate that whereas KNH receives Sh1 billion, this one gets only Sh400 million,” he said.

He added that the committee would ensure that more resources were allocated to the hospital in the next financial year.

Seme Member of Parliament (MP) Dr. James Nyikal said the hospital required urgent expansion to carter for the huge number of patients.

“This hospital was established in 1969 and very little has been done to expand it given the high number of patients who are treated here daily,” he said.

Dr. Nyikal said Kisumu County government which runs the facility does not have the capacity to upgrade it to the level six status.

The committee was in Kisumu to assess how Covid-19 funds allocated to the county were appropriated.

Kisumu received Sh169 million with an additional Sh400 million allocated to JOOTRH to handle the pandemic.

Tea farmers in Nyeri County yesterday unanimously resolved they will not elect tea factory directors until the proposed new tea regulations are effected.

Speaking yesterday at Othaya Stadium during a meeting with Agriculture Cabinet Secretary Peter Munya, the farmers through what they called the “Othaya declaration” supported The Crops (Tea Industry) Regulations 2020.

The declaration was read by the only director from Gathuthi tea factory limited, Mr Paul Gitonga Wanjau who attended the meeting as other directors from the county snubbed the function.

Munya told famers that the old law governing election of factory directors was repealed, adding that “you cannot go to an election with a law that has been repealed.”

“When we gazzetted these regulations, we repealed the previous ones,” Munya said adding that holding elections under the defunct law is illegal.

The government in conjunction with farmers has come up with a raft of regulations aimed at streamlining the tea sector and ensuring that they reap optimal returns from their investments.

However, the Kenya Tea Development Agency (KTDA) went to court to oppose the implementation of the regulations and the case is still awaiting hearing and determination.

Munya said the previous law governing the tea sector was revoked and a new one put in place.

Munya dismissed claims that he was fighting KTDA as cheap propaganda noting his interest was to ensure farmers benefited from the crop as directed by President Uhuru Kenya in his response to tea and coffee farmer’s woes.

“Hii si mabadiliko ya Munya. Hii ni mabadiliko ya wakulima na wanasema lazima yafanyike,” (These are not Munya’s reforms. They are owned by farmers who are demanding their implementation) Munya asserted.

He told famers that the regulations had already been gazzetted when KTDA went to court and so the status quo still remains and anybody acting on the contrary was breaking the law.

He added that the regulations aimed at cutting costs of farmers, ensuring efficiency in the tea production and transparency and accountability at the Mombasa Tea Auction.

The CS emphasized that KTDA should refrain from engaging in other businesses that are not related to tea.

“We want them to rededicate their mission back to the smallholder tea farmer,” Munya told the farmers.

He added that the businesses that KTDA had engaged with were only oppressing the tea farmers.

Munya warned that farmers’ resources should not be used to pay lawyers to fight against their agenda in court.

The CS said some of regulations included reduction of agency fee from 2.5 per cent to 1 per cent, KTDA to pay factory employees and factories to employ or source for their own factory secretaries.

Others include payment of 50 per cent of farmer’s tea sales monthly, directors to serve for a maximum of two terms and one grower, one vote among others.

He directed that automation of the Mombasa tea auction which has been delayed for the last five years should be hastened to ensure transparency.

Speaking during the occasion, East Africa Legislative Assembly member Mpuru Aburi criticized people disrespecting the Presidency saying Kenyans are not happy with them.

Aburi told politicians to concentrate on development projects to serve wananchi instead of politicking.

He at the same time welcomed the new tea regulations and dismissed KTDA as a den of cartels milking the farmers dry.

Construction of the Lanet Airport in Nakuru is set to begin in the next three months after years of long delays.  

The Kenya Airports Authority says the 3 billion shillings facility will be funded by the exchequer next to the Lanet army barracks. 

The airport is expected to be a boon to the agricultural-rich county of Nakuru which accounts for 75 percent of horticultural exports from Kenya.

According to the project documents, the Ksh 3 billion project, located at the 81 Tanks Battalion Barracks, will see the Lanet Airstrip elevated into a modern international airport, which will be used by civilian aircraft connecting to major towns in the country. 

The first phase of the project will consist of a 1.7 km runway, rehabilitation of the existing runway to bitumen standards, erection of a fence, construction of taxiways, a terminal building, a military lounge, air rescue and firefighting building, a power substation, a patrol road, and military and civilian gates. 

The second phase will concentrate on expanding the runway from 1.7km to 3.6km, thus ensuring the airport accommodates bigger aircrafts. 

The county is banking on the facility to bolster its economy by enhancing connectivity. 

The county relies on refrigerated trucks to ferry horticulture and flowers to the cargo hub at the Jomo Kenyatta International Airport.

Agriculture Cabinet Secretary Peter Munya has accused the Kenya Tea Development Agency (KTDA) of fanning propaganda among farmers to incite them to reject the new tea regulations.

Addressing farmers’ representatives drawn from 10 tea factories in Murang’a at Ndakaini on Sunday, Munya observed that the agency is using all means to block implementation of the regulations fronted by the government to streamline operations in the sub sector.

He said KTDA is opposed to selling of tea through auction since the system will block cartels who have been syphoning money meant for farmers.

The CS stressed that the government will not relent until it roots out cartels in the agency who for a long time have exploited poor farmers.

Munya said the new regulations will be implemented once the court case is concluded adding the process of selling tea will be reformed in order to benefit farmers.

“A lot of propaganda is being perpetuated by KTDA on the regulations proposed to revive the tea sector. Farmers need to be smart on these. The regulations are in the public domain, let all read and understand before rejecting what one doesn’t know,” Munya said.

He claimed that the procedure, which the agency has been using to sell tea, has many loopholes which cartels use to exploit farmers by giving meager returns.

“Our farmers have continued to suffer despite tea contributing to Sh1.6 billion in the country’s economy. The sector has also employed six million people. The President is dedicated to ensure farmers are no longer exploited and that’s why we have come up with regulations to reform the sub sector,” Munya explained.

“I have no fight with KTDA but my mission is to ensure farmers get what they deserve from their sweat in growing tea.”

He said the regulations were arrived at after wide consultations adding those claiming to have been left aside were lying.

“Countries like Srilanka have less tea compared to Kenya but they get more returns since the marketing of their tea is open and transparent. In Kenya when we embrace the auction system there will be transparency and accountability and we will discover new prices,” said Munya.

He accused KTDA of controlling the auction and depressing the prices so that their companies can buy the tea purporting to be outside buyers.

“Since the regulations were established in June this year, prices have been going up and some companies have earned an increment  of up to more than 70 percent,” Munya said.

The CS said the auction will be digitized so that farmers can follow the process and know the price their tea has fetched.

Munya said the regulations will be factored in the Tea bill, which is before parliament to ensure the operations, and marketing of tea is under a government policy.

He said the Tea bill, once passed will ensure farmers get minimum guaranteed price despite fluctuation of international prices.

He underscored the need for branding and other value addition in the Kenyan tea saying it will ensure farmers earn more.

The CS further faulted counties that claimed they were not consulted in the drafting of the regulations saying the new guidelines started way back in 2016 and all stakeholders were part of the proposed regulations.

Munya faulted the process of electing new directors saying the procedure should be one grower, one vote and not based on the number of shares saying such voting system is against company law.

On her behalf Murang’a Woman Representative Sabina Chege said tea farmers need to be given cheap fertilizers like the way the government provides subsidized fertilizers to maize farmers.

Chege said for many years, tea farmers have been taken for granted despite the crop contributing a lot to the country’s economy.

“We want a full department to take care of tea and coffee the way we have a department of fisheries. The two cash crops have played a key role in our country’s economy,” added Chege.

Majority of the factory representatives present lauded the new changes saying if well implemented they will cushion farmers from poverty.

Wambugu Gachunje, a tea farmer from Kanyenya-ini factory said if the new regulations will not be implemented, they will boycott the forthcoming KTDA elections.

Gachunje further accused KTDA of using farmers’ money to go to court to block the regulations saying that farmers have not given the agency the nod to use their money for litigating in court.

By Kosta Kioleoglou
Over the last decade, many Kenyans took their

lifetime savings and invested in the real estate market. Whether through chamas or saccos, this move was due to the attractive promise of a safe and secure opportunity, even guaranteed in some cases, that the property market had to offer.

Unfortunately, same as the Kenyan stock market which was promising the same and then collapsed, the real estate dream was hiding the same risks and dangers for those who irrationally jumped into this market, making investments without considering the risks, sustainability and capacity of the market.

Over the last three years, a feeling that something might be going wrong with the real estate investments is slowly growing, although a big majority continue to live in denial.

Every market analyst notes that economic headwinds in 2017 adversely impacted several sectors of the economy.

The country’s macroeconomic and microeconomic status was seriously affected negatively. The political instability which the country faced during the last elections triggered a sequence of negative events which existed before elections but were kept

carefully under the radar in an effort to manipulate the real market dynamics and economic performance of the country.

WARNING SIGNS

Long before the pre-election period, there were several signs that the Kenyan economy and its real estate sector were moving on sandy grounds.
The Kenyan shilling was under huge pressure and lost over 20 per cent of its value against all major currencies. It is important to note that the currency never managed to recover the majority of these losses.

The currency, seriously weaker, for the last three years in a ranging lower levels is affecting not only the country’s macroeconomic indexes but day to day life too of every resident.

Another important fact is that the country’s external debt has been growing with a geometric progression, same as the private debt.

So, is real estate market in Kenya sustainable or is it going to follow the example of the stock market- lose most of its value, causing the evaporation of
huge wealth which has been invested mainly by the poor and middle class of Kenya during the last decade?

First, I would like to clarify that a real estate boom was a natural development for a country like Kenya. As the size and dynamics of Kenya’s emerging economy were getting bigger, better and stronger, the need for more and better housing, improved infrastructure and the expansion of urban areas, especially in the capital city of Nairobi was a must.

The problem was that in the middle of this fast growing country’s prosperity and the dizziness of the temporary welfare, people forgot to use common sense and started operating irrationally.

Kenya and her citizens started to live and spend beyond their real means- buying expensive cars, luxury houses and focusing on a lifestyle which could not be sustained.

There is a saying, ‘rich people brst make the money, then they save money and only after that they start spending it. Poor people on the other hand brst spend and then think about making or saving the money.’

This is exactly what happened to the real estate market of Kenya. Thrilled by the huge need for housing in the country, majority of people rushed to invest heavily, directly or indirectly in the promising sector forgetting about the basics of real estate and general investment rule of risk-return factor and market analysis.

HOUSING DEMAND IS REAL

The housing debcit of over 200,000 houses a year is real. Same as the need for commercial space. There was, and actually there is still a huge demand for properties in this country.

The question is: what is the need, what type of properties and at what is the real average affordability in the country.

I wrote about this almost five years ago, stating that this market does not need luxury properties but affordable housing. Today, after almost three years of market stagnancy, everybody talks about affordable housing.

But we need to make this clear. Affordable housing is not going to change the fact that the current

property market, the one that attracted billions of dollars is going down.

People have to be prepared to face losses. The sooner investors realise this, the better for the market. If investors do not face the reality now and fail to make the required correction moves, then panic and a possible irrational sale-offs could push the market to a collapsing point.

A quick outlook of the sector’s performance is really disappointing. For the last 18 months, there was a general belief that the only reason the real estate market was slowing down was the election period and the wait and see attitude of buyers and investors.

Nine months since the ‘hand shake’, which odcially marked the end of the election period, reality is presenting a different version of the story despite the efforts of those who like to manipulate the market and try to cover the real face of Kenya’s property market.

UNSUSTAINABLE

It does not require for someone to be an expert analyst in order to understand that real estate market in Kenya cannot be sustainable at current levels of pricing.

The types of properties that developers and investors had preferred to invest over the last ten years were targeting the wrong group, representing only a small fraction of the current huge housing demand of the country.

The biggest part of the current demand includes Kenya’s middle and lower class with low affordability. Any expectations for a quick market recovery and the continuation of the boom period after the elections are now fading out.

Available reports show that the market is slowing down after a small rebound during the brst quarter of 2018, which was not as strong as initially expected.

There are chances that we are heading to a recession rather than further market growth or another real estate boom period.

This argument is based on the available market data and reports. According to the latest house price index report released in September 2018 from the Kenya Banker’s Association, there was a 1.76 per cent overall increase in house prices during the second quarter of 2018.

This represents a marginal decline from the previous quarter’s 2.08 per cent increase, reSecting a sense of price stabilisation and therefore non- sustenance of the surge seen in the brst quarter.

The recovery recorded in the quarter of 2018 came in the wake of strained market conditions after a series of lower rate in price growth for bve consecutive quarters from the fourth quarter of 2016.

DISMAL TREND

This dismal trend was attributed to various factors, including shrinking private sector credit growth and market anxiety as well as political instability that preceded the 2017 General Election.

The KBA-HPI indicates that the increase should be considered in the context of being a reprieve, because the rise could be associated with transactions from previous quarters that were put on hold due to market anxiety and lower lending risk appetite following the enactment of the Banking (Amendment) Act 2016.

A clear sign of the market’s slowdown is shown on the available reports regarding construction materials and the value of building plan approvals which are decreasing month after month.

Cement uptake in six months to June 30 fell 7.9 per cent, while data from the Kenya National Bureau of Statistics (KNBS) indicate cement consumption in the brst six months of the year stood at less than 2.75 million tons, down from 2.98 million in 2017.

Consumption hit a four-year low after rising to a peak of 3.1 million tons in 2016 at the height of construction of the brst phase of the standard gauge railway (SGR), Kenya’s single largest post- independence infrastructure project. Lower consumption has led to reduced production.

The same trend applies to almost each and every sector of material production and sales related to the construction and real estate industry. Production of galvanised iron sheets also went down by 6,500 tons to 111,562 metric tons, the data shows.

The volume of construction material imports such as iron, steel bars and rods declined by 4.9 per cent during the brst quarter of 2018.

This decrease was an obvious result connected with the decrease of the total number and size of new buildings that are coming up as well as with the slower pace that developers are executing the existing projects which are under construction.

It is notable that the value of building plans approved in Nairobi County decreased to Sh60.11 billion in the brst quarter of 2018 compared to Sh61.72 billion in the brst quarter of 2017. Lower imports, production and consumption of building materials, as well as less building plans, clearly indicate that the construction sector is slowing down, while the current oversupply in the market and low transactions have made developers hesitate to commence new-builds.

The problem is not only in the residential market. Commercial property sector is also under huge pressure.

Recently, a management company decided to offer six months free of charge and next six months with 50 per cent discount on the rent in order to attract tenants for a mall they manage, as it has been empty since it opened its doors a few years ago.

Despite the fact that they have been negotiating and accepting lower rents since the beginning of 2016, commercial properties owners have to face the cruel reality of an oversupplied market, only left to watch their investments and properties remain vacant and lose in value day after day.

AFFORDABLE HOUSING

At last the latest trend in the market is the affordable housing. Under the current plans, the government intends to build houses of one, two and three bedrooms which will be sold at Ks 600,000, one million and three million shillings respectively.

Using common sense, we all understand that this is not going to support in any way the current real estate market. Low cost housing project does not make economic sense to investors as there is limited margin for probts via this model of development which globally has been used mainly as public or PPP projects.

In order to successfully implement a low cost/affordable housing concept, the government has to bnd the budget required for the implementation and construction.

To bnance the project, Treasury imposed a new tax where employers will contribute 1.5 per cent of monthly basic salary from each employee and remit it to National Housing Development Fund on or before ninth day of the preceding month.

Employees will equally contribute another 1.5 per cent subject to maximum contribution capped at Ks 5,000 from January next year.

To make a long story short, there is a structural problem with Kenya’s real estate market.

During the last ten years which included a period of amazing property value growth, the market was operating in the vacuum. Only the few who realised what was happening and the market’s absurdity, among which are the banks, kept a neutral safe attitude.

The fact that Kenya’s real estate was heading towards a bubble with high volatility was conbrmed by the fact that not even one big international real estate development company entered the market with the majority of them not even showing any interest to invest.

The large majority of investors and capital that was invested in the sector included money of disputed origin, money from Kenya’s diaspora and money from Kenya’s medium to low income class who invested their lifetime savings in a market which they did not know or understand, risking their hard earned money in a fully manipulated market.
There was a fundamental issue with this market. Too many investors, but very few qualibed users for the market supply.

A big misunderstanding of what exactly is Kenya’s middle class and the market’s affordability. These are the key factors which mislead the sector in an unsustainable growth.

After the stock market bubble, the real estate bubble is now creating huge losses affecting the general economic stability of the country.

Kenyans’ obsession for risky investments, the general belief that you cannot go wrong with land and property and the inability to understand investment risk may become the guillotine that will
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BIG MISUNDERSTANDING

cut the head of her promising economy.
The country needs to invest in the real economy, the primary production sector, and manufacturing, blue economy, create jobs and build a solid future.
There is more proof to show that the market is heading towards a big recession. The last Kenya’s Homes Expo was more than a sign that the market is suffering.

Smaller than ever with few participants and even lessor visitors, the once shining hallmark property event has lost its glamour, not because of the organisers, but because of the market dynamics.
Understanding the real situation of the market on time and act before it is too late is a good advice for those who are still involved in the property market.

It is obvious that the property market operates in cycles. There was a long period of unreasonable and unsustainable growth which will be followed by a longer period of recession.

Price adjustments, portfolio and bnance restructure are going to be the upcoming trends in order to control and minimise losses and survive during the period of recession.

It is important to stay up to date, follow up with the market developments as well as the local and international trends. Remember always that what makes you money is the risk-return trade off.
That means higher risk is associated with greater probability of higher return and lower risk with a greater probability of smaller return.

This trade off which every investor faces between risk and return while considering investment decisions will determine your portfolios’ success.

***
The writer is the director of Avakon Ltd.

Kenya Electricity Generating Company shareholders will get a dividend payout of Sh1.65 billion for the year ended June 30, 2019.

The Company’s board is recommending a final dividend of Sh0.25 for the year for every ordinary share of Sh2.50, amounting to Sh1.65 billion for the year.

The company’s Managing Director and Chief Executive Officer Rebecca Miano, whose term has just been renewed for another three-year period, said that during the period ending June 2019, business remained resilient despite challenging economic conditions in the country and globally.

In 2018, the company paid its shareholders Sh2.64 billion in dividends which translated to Sh0.40 for every ordinary share.

In a statement to newsrooms Tuesday, Miano noted that projections indicated that the medium-term macro-economic environment would be tough, compounded by the economic shocks brought about by the Corona virus disease (Covid-19) pandemic.

“KenGen recognizes that the ongoing Covid-19 pandemic may have an impact on its business. The short-term impact of Covid-19 on the company’s performance is likely to be reflected in the 2019/2020 earnings,” she added.

She was, however, optimistic that in the long term, the current conditions present opportunities to diversify as the economy recovers from the crisis.

“The company remains financially robust with the directors reiterating their commitment and confidence in the company’s ability to continue navigating the Covid-19 with associated macro and socio-economic challenges,” she stated.

Notably, during the year ended June 2019, the company’s energy sales grew from 7,989 GWh in 2018 to 8,277 GWh despite dilution of the market share following new entrants. KenGen’s total revenue grew from Sh45.30 billion in 2018 to Sh45.97 billion in 2019, leading to a 1.5 percent growth.

 “Partnership has enabled accessibility of financial infrastructure and Postbank will allow deposits and withdraws and access to the ninety-nine branches all over the country,” said Miano.

Miano also revealed that the company is progressing with additional 439MW projects from sustainable geothermal resources, and would also continue to implement the Revamped Horizon III Good to Great (G2G) Strategy.

“The implementation of Olkaria I Unit 6 progressed with the plant scheduled to bring to the grid 83.3MW by 2021. Contract processes for the 140MW Olkaria VI Plant and Olkaria I rehabilitation (from 45MW to 51MW) are at advanced stages,” she added.

According to the statement, the implementation of these projects will ensure the company’s continued growth in line with the demand for competitively priced, safe, reliable and quality electric energy in the Eastern Africa Region.

During the period under review, the company’s tax after profit declined from Sh7.89 billion in the previous year to Sh7.88 billion.  KenGen also recorded a drop in profit before tax from Sh11.75billion to Sh11.65billion for the year ended June 30, 2019.

The company’s diversification strategy has been gaining momentum with the incorporation of new business lines including consultancy and drilling services. KenGen is currently offering geothermal drilling services and undertaking geoscientific studies in Kenya and Ethiopia.

The Ministry of ICT, Innovation and Youth Affairs has rolled out cycle 5 of Kenya Youth Employment and Opportunities Project (KYEOP) that seeks to equip the youth with skills to secure self-employment and earn livelihoods.

Already, more than 170,000 youth have applied for training under a 15 billion shillings World Bank funded programme.

Principal Secretary in the Ministry of ICT, Innovation and Youth Affairs Julius Korir, while on a tour to assess the level of preparedness in Kisumu County, said under the cycle 5 of the programme, the Government has allocated 400 Million shillings to undertake training to successful candidates in the selected 17 counties before they are given grants to set up their businesses.

The project, he said, “is funded under the five-year Kenya Youth Employment and Opportunities Project (KYEOP) which is funded with USD150million (Kshs.15 Billion) credit from the International Development Association/World Bank.”

Korir said the Government has launched more intensified campaigns to assess the preparedness in the 17 counties implementing the project that include Mombasa, Kilifi, Nairobi, Nakuru, Kiambu, Nyandarua, Mandera, Turkana, Wajir, Bungoma, Kakamega, Kwale, Kisumu, Kisii, Machakos, Kitui and Migori.

“We are determined to ensure that the youth are well placed and adequately prepared to start undergoing the training to be equipped with skills which will enable them to secure jobs to help them earn a living,” said Youth Affairs Principal Secretary, Julius Korir.

The PS however, emphasized that the assessment will be based on the Ministry of Health’s COVID-19 guidelines, adding that cycle 4 which was suspended due to outbreak of Covid-19 will soon resume.

The five-year project that ends next year targets youth between 18- 29 years with form four education level and below.

The project seeks to improve youth employability, support for job creation, improve Labour market information and strengthen youth policy development.

According the PS, so far 32,124 youth have received training and internship in both the formal and informal sector out of which 75 % have secured employment according to a report from an independent research firm.

“A further 9,951 business support beneficiaries have received grants of Sh40,000 each amounting to Sh329,000,000   while 4,204 youth have received Business Development Services,” added the PS.

He said under the project, a Business Plan Competition dubbed ‘MbeleNaBiz’ for high-potential job creators is currently ongoing.

“A total of 750 youth-owned enterprises will be financed through’ MbeleNaBiz ‘where 250 beneficiaries will each receive grants of Sh3.6 million. A further 500 beneficiaries will be awarded Sh900,000 each. This makes a total cost of Sh1.3 billion being the cumulative capital going to the youth as seed capital to support youth businesses in the entire country

A further 1,500 youth are being trained in the preparation of business plans under Business Development Support programme” he said.

The project is further implementing a special product, the FutureBora Innovation Challenge which is an initiative that will come up with high-impact interventions for creating economic opportunities for the “hard-to-serve” youth and funding them through business grants to the tune of Sh120,000,000.  Both ‘MbeleNaBiz’ and ‘Future Bora’ cover eligible youth from all the 47 Counties.

KYEOP project design adopted the “apprenticeship “model for training the youth where Master Craftsmen have been contracted to take the youth through skills acquisition. Each Master Craftsman is allocated a maximum of six (6) trainees for the five (5) months Jobs Specific Skills Training. These beneficiaries will have gone through a one (1) month Life skills training prior to being allocated to Master Craftsmen.

Korir said the selection process for cycle 5 youth begins in earnest on 17^th August 2020 and will be done through a computerized random selection upon which all successful applicants will be contacted for guidance on activities that will follow.

The PS was accompanied by CAS Youth Affairs Nadia Ahmed who urged youth to take advantage of the government grants and establish viable projects to make an income and Kisumu County Commissioner Susan Waweru

The government’s Big Four Agenda on housing got a boost Monday following the launch of a new 268-unit affordable housing development in the Kasarani area by Centum Real Estate.

Centum Real Estate Managing Director Samuel Kariuki in a statement sent to newsrooms said the development, branded 265 Elmer One Apartment, seeks to provide quality affordable apartments.

Kariuki further noted that the tastefully designed houses done at a cost of Sh7 billion are ideal and affordable for first time home buyers as well as those who want to invest in real estate without necessarily going through the hassle of getting involved in land buying and construction.

“The Estate offers competitive rental rates and capital returns to residential real estate investors that are also ideal for owner-occupier buyers,” said Kairuki.

According to Kariuki, the 265 Elmer One Apartments are an architectural pioneer, with the first 1-bedroom loft design in the region and will provide the perfect blend of affordability and luxury, paving the way for accommodating modern architecture in affordable housing.

“The apartments will also be fitted with communal lounges, a mini tennis court and a mini soccer pitch at the apartment complex rooftop,” read part of the statement.

Kairuki noted that Centum has made significant considerations to ensure 265 Elmer One meets green building standards, including 20 percent savings on energy and 40 percent savings on water and energy embodied in materials by installing low flow water tap and shower fixtures that reduce up to 3x water usage.

“We also installed dual flush toilet systems that save up to 67 percent of water; 100 percent recycling and re-use of water generated on-site; and 15 per cent of the site is set aside for landscaping,” he said.

265 Elmer One Apartments is the newest addition to Centum Real Estate’s portfolio of developments and is the Group’s most affordable development in Nairobi. Which recently launched a 365-unit affordable mid-market housing scheme in the Ruaraka area.

265 Elmer One Apartments will offer first in market design product concepts comprising a mix of studio, 1 bedroom, 1-bedroom loft and 2 bedrooms priced from Shs 1.9 million.

According to the housing census carried out by the Kenya National Bureau of Statistics (KNBS) last year, Kasarani is the second most populated constituency in Nairobi with approximately 708,000 residents.

The high population density denotes a high demand for rental units, which assures investors of a recurring rental income with yields averaging 7.5 per cent per annum. The development is therefore an excellent opportunity for investors looking to diversify their investment portfolio or venture into real estate.

The national endeavour under the Big Four Agenda on affordable housing programme not only seeks to provide Kenyans with decent housing but it will also provide them with opportunities to integrate into the Manufacturing Pillar of the Big Four Agenda.
The government has been working with various stakeholders to identify suitable tax incentives that would have a positive impact on the cost of construction.

However, the cost of land and manufacturing have remained high, making them among key obstacles to the realization of affordable housing, even as investors clamour for low-cost building materials

Delmonte fruit processing company Limited can go ahead and process renewal of its land lease after the Environment and Lands court in Murang’a threw out a petition seeking to block the process.

The court went ahead and dismissed two applications by Kandara Residents Association seeking to oppose the renewal of land lease.

In her ruling delivered Wednesday, Justice Grace Kemei said the applicant did not demonstrate valid reasons to stop the process of lease renewal by the fruit processing company.

In 2018, the association moved to court seeking to stop the process, claiming the company which owns more than 22, 000 acres of land should forfeit 1, 000 acres to benefit residents of Kandara.

In the application, the residents argued that the land owned by Delmonte was acquired by colonialists, who alienated residents pushing them to live in reserves.

However, in her land mark ruling the Judge observed that, “Delmonte have legal rights on the land and have made substantial investment on it. Request for 10,000 acres of land by the association in support by Murang’a county assembly shall be a subject to the rights and interests as an investor.”
Kemei noted that claim by the community association to a portion of the suit land was unsupported and there were no damages which they entitled legally.

The fruit processor in the proceeding denied knowledge of a public participation meeting purported to have been held between the association and the Murang’a County Assembly.
The 99-year lease of the parcels of land owned by Delmonte is expected to expire in 2022 and the company is in the process of renewing the lease.

But there was reprieve to the association as the court observed that National Land Commission (NLC) has powers to investigate historical injustices and make recommendations on compensation and settlement in alternative land.

The association led by a politician Phillip Njuguna wa Ruth of Kandara objected to NLC for extending the leases on grounds of historic injustices on their forefathers when they were ejected out of the land under control of Delmonte.

Earlier on, an attempt to settle the matter out of court was scuttled following deep mistrust, before the association pulled out to seeking a legal determination through a judicial process.

The plaintiff then moved to court to block county governments of Murang’a and Kiambu from being part of the process to renewal leases of land to the fruit processor once they expire.

Last year, NLC in a Kenya Gazette notice ordered resurvey of the land under Delmonte done by the Director of Survey.

The notice also ordered the Delmonte to surrender public utility land to national and county governments.

Kenya on Tuesday launched a virtual safari live stream campaign to showcase the country’s wildlife to global audiences.

Najib Balala, cabinet secretary of Ministry of Tourism and Wildlife, said in a statement that the six-week expedition across the country is aimed at ensuring that the world and travelers remain connected to destination Kenya even during the current COVID-19 lockdown period when there is restricted movement.

“Our international tourism business is completely cut off and we have to still share destination memories with travelers and that is why we are unveiling a virtual tour safari to connect visitors with the destination,” Balala said.

He added that the COVID-19 pandemic has taught players in different sectors to be more innovative to keep their businesses afloat during these difficult moments.

He noted that the online tour in some of the parks and reserves across the country is aimed to ensure that Kenya remains top of mind among visitors and investors alike.

“This venture which begins here at the Nairobi National Park will allow us to document our diverse wildlife in the national parks and game reserves, thrilling adventures, beautiful lodges and unique cultures and conservation projects that Kenya has become world-famous for.”

“We shall be live streaming and sharing this content every week to bring Kenya to Kenyans and to the world at large,” Balala said.

Kenya’s fight to reduce maternal and child mortality has received a major boost with the introduction of a portable ultrasound scan for use in remote and resource-poor areas.

If incorporated into the universal health coverage programme that is set to be rolled out countrywide, the technology could be a decisive step in combating maternal and child mortality in Kenya. According the 2014 Kenya Demographic and Health Survey, the national Maternal Mortality Ratio is currently at 362 deaths per 100,000 live births.

An ultrasound scan is a machine that uses high-frequency sound waves to create images showing the inside of the body. Dubbed Lumify, the device developed by Phillips Africa can be used in areas where a conventional ultrasound used in hospitals may be far away from the expectant mother’s home.

The portable ultrasound has been designed for emergency departments and urgent care centres, as well as other clinical settings, and will operate from a compatible smart device connected to a Philips ultrasound transducer.

To operate the device, a health care worker needs to have a smart phone or tablet with an Android port connection that will enable the two to be connected. “We have an app called Reacts that enables the Lumify to log onto the interactive network developed by the cardiologist, critical care physician and innovator Dr Yannick Beaulieu,” said Phillips Africa chief executive Jasper Westerink.

He said the ultrasound would ease the process of pregnancy monitoring and diagnosis of related complications during home visits by health workers and volunteers.

According to Kenya Medical Training College lecturer Victoria Koi, ultrasound scans are used to assess the baby’s development. An expectant mother with a normal pregnancy should go for at least one scan within the gestation period, she said. For effective monitoring of a normal pregnancy, the academic said the scan should ideally be done during the first trimester, between 18 and 26 to 30 weeks. The requirements are, however, different if doctors suspect that a pregnancy could be having complications.

“For a complicated pregnancy, the mother needs at least three scans, with the first at eight to 11 weeks, the second at 21 to 28 weeks and the third one at 31 weeks,” said Ms Koi.

Lumify is part of a portable Phillips medical kit dubbed the Community Life Centre outreach kit that is being tested in a pilot research project set to take place in Makueni County. Lumify costs Sh513,000 per kit while the conventional ultrasound scan will cost upwards of Sh4.1 million.