Author: David Bogonko Nyokang’i

Kenya Tea Authority sales volumes rise by 20M Kilograms

Tea sales by KTDA-managed factories have risen 13.3% in the Eight months to February 2023 compared to a similar period last year despite a tough market Characterized by dollar shortages in key export destinations.

In the eight months from July last year to February this year, the factories had cumulatively sold 169.7 million kilos of tea compared to 149.8 million kilos for a similar period in the previous Year.

Key markets for the agency including Pakistan and Egypt have been impacted by shortages of US Dollars impacting the offtake of the beverage from Kenya.

“KTDA-managed factories produce high-quality tea that fetches a premium price. We have a reserve price that reflects this quality and ensures tea farming is a sustainable Venture. Strengthening of the US Dollar against local currencies in major consuming countries like Pakistan has put more pressure on its purchasing power,” KTDA Sales and Marketing General Manager Francis Muthamia said.

Following these challenges, the Agriculture high-quality ministry and KTDA recently successfully lobbied for the classification of tea as an essential commodity in Pakistan meaning that tea importers in the country will be allocated dollars to import tea.

This is among other marketing efforts by the Agency that have resulted in the positive growth recorded during the period despite the challenging market.

The KTDA board introduced a reserve (basement) price of USD2.43 per kilo of made tea in July 2021, informed by a deteriorating market that had seen selling prices nearly slip below the cost of production. Coupled with other reforms, the reserve price has since supported a recovery of the price of teas for KTDA-managed factories and led to improved payment to farmers.

April 6, 2023
The Excise Goods Management System regulations 2023

Rajan Shah, KAM Chairman

Kenya Association of Manufacturers is concerned by the gazettement and implementation of Legal Notice No. 30 of 2023 titled: The Excise Duty (Excise Goods Management System) (Amendment) regulations 2023 that effectively; increases the rates of excise stamp fees for bottled water, juices, and any other non-alcoholic drinks, cosmetics, alcoholic beverages, tobacco, and nicotine products and export products.

KAM and other business associations attended a public participation forum convened by Kenya Revenue Authority (KRA) and The National Treasury on the above subject matter on 1st February 2023. During this engagement, the stakeholders present unanimously objected to the proposal published to increase the cost of EGMS stamps for the above-listed products.

We are therefore deeply concerned that despite the public participation engagement, none or part of our submission was considered, and the legal notice is a replica of the proposals published.

The increased EGMS stamp fees up to levels of over 100% and beyond the current market costs of producing the stamps shall have a detrimental effect on consumers and manufacturers due to the increased cost of production and the cost of finished products. Unfortunately, this will be passed on to the consumer amidst the rising cost of living.

The increment comes barely five months after a 6.3% inflation adjustment on specific excise tax rates was effected on 1 October 2022, impacting cosmetics, confectionary, alcoholic and non-alcoholic beverages including bottled water, and tobacco and nicotine products, among other products. Three months before the inflation adjustment, there was an increase in excise taxes from 1 July 2022, by between 10% and 20% through the Finance Act, 2022.

The government needs to enhance tax predictability to spur investments and growth. Tax predictability earns investor confidence in the country, leading to increased local and foreign investments. Sudden changes in fiscal policy and regulations divert the industry’s resource allocation from productivity to meeting the costs associated with changes toward fast compliance.

The EGMS excise stamp is a revenue assurance tool that was initiated to deter counterfeiting, ensure traceability of excisable goods along the supply chain, enable accounting to produce excisable goods manufactured or imported, and facilitate any persons in the supply chain to authenticate the stamps and excisable goods. As such the new EGMS stamp fee increase is a revenue collection mechanism as opposed to an assurance tool.

Additionally, we are concerned that this increment to some of the most counterfeited items in Kenya will further encourage the counterfeit and illicit trade. This will deny government revenue and put the lives of Kenyans at risk as substandard and highly dangerous goods infiltrate the market.

It is paramount that we make cost comparisons with other countries, regionally and globally, to ensure the country remains competitive. From our analysis, Kenya’s cost is amongst the highest in this regard with the price of the stamp and its administrative requirements costing the same as the price of the product (see table below for EAC countries). This continues to make Kenya uncompetitive as an investment hub.

About Kenya Association of Manufacturers (KAM):

Kenya Association of Manufacturers (KAM) is the leading voice and representative of manufacturing and value-add industries in Kenya, since its establishment in 1959.

KAM is a dynamic, vibrant, credible Association that unites industrialists and offers a common voice for businesses. The Association’s key role is to advance a favorable policy environment for the manufacturing industry to achieve global competitiveness in addition to providing demand-driven services and support to manufacturing.

The Association represents about 1200 companies classified in 14 different sectors. Additionally, KAM has 7 regional offices across the country.

April 6, 2023
Raila’s Plan to discipline Rebel legislators in Proposed Constitutional Changes

Azimio leader Raila Odinga on Thursday, April 6, renewed calls to ensure that disloyal Members of Parliament (MPs) are disciplined within the Law.

Addressing Azimio la Umoja Parliamentary Group Meeting in Machakos County, Raila lamented that some elected legislators were rogue and needed to be tamed.

According to Raila, the MPs blatantly disobeyed the directives of the parties that sponsored them to Parliament.

“Review and recommend changes in the law that will entrench party discipline and fidelity by requiring MPs who cross party lines after elections to seek a fresh mandate from the electorate,” Raila stated.

Raila argued that the law should be changed to allow political parties to discipline and punish rebels who support other outfits.

The Orange Democratic Movement (ODM) Party Leader held that the Constitution should grant him powers to replace nominated MPs who crossed party lines.

“Initiate legislation to address the electoral, governance, and economic gaps identified during the inquiry for consideration by the Houses as appropriate,” Raila stated.

On February 7, 2023, President William Ruto met a section of ODM Party Legislators for talks at the State House, in Nairobi.

Among the MPs that Ruto met included Gideon Ochanda (Bondo), Elisha Odhiambo (Gem), Mark Nyamita (Uriri), Caroli Omondi (Suba South), Shakeel Shabir (Kisumu East, Independent) Felix Odiwuor alias Jalang’o (Lang’ata), Paul Abuor (Rongo), John Owino (Awendo) and Kisumu Senator Tom Ojienda.

“Leaders must join hands, foster coexistence and work together in confronting the challenges facing our country. They must endeavor to lead by example and serve the interest of the people. This is a sure route to a more united and developed Kenya,” Ruto stated in a statement.

The former Prime Minister also made other recommendations for constitutional change, including plans to fix winner takes all system.

Raila told Azimio PG that they were demanding a review of what is largely known as the ‘Winner-Takes-It-All’ approach.

Even though Raila did not expressly demand the return of Building Bridges Initiatives (BBI), he was clear that Azimio was looking at the possibility of reviewing the Constitution.

“We are driven by the concern that despite the 2010 Constitution, our political culture retains a winner takes all system.

“This is what has clearly been demonstrated by the Ruto regime. This monopoly of power by hook or crook by the party in the State House can only be rectified by a legislative process involving all Kenyans,” Raila noted.

He further claimed that President William Ruto’s government was acting erratically due to the powers that it holds.

“We need a proper constitutional review to cure the governance defect in the 2010 Constitution and remove any form of an imperial Presidency.

“In our dialogue with Kenya Kwanza, we will be putting this matter on the table,” Raila declared.

April 6, 2023
NAIVAS LAUNCHES 92ND BRANCH ON THE EVE OF EASTER

Kenya’s number one retail chain, Naivas Supermarket will officially open the doors

of its 92nd outlet. This exciting development kicks off the retailer’s expansion plan set for this year

and is a step closer to store number 100. A feat that will be the first to be accomplished by a

supermarket chain in Kenya. The new outlet, covering more than 20,000 square feet of trading space

is the new anchor tenant at The Brick Mall, along Kiambu Road and the 6th Naivas Outlet in the

greater Kiambu County.

“Naivas’ heritage as a Kenyan homegrown brand has set us apart in the art of anticipating customer

needs even before they voice them, this has ensured that we continually learn the science of

understanding our customers and ultimately meeting them at their point of need, the most critical

being freshness, quality, variety, affordability, and convenience. 33 years down the line our

customers know they can trust us to deliver on these, every time they patronize us. This branch will

be no different, the shopping experience promises to be wholesome as it is stocked with a variety of

products ranging from fresh produce, commodities, electronics, and other general products,” said

Willy Kimani Chief commercial officer.

“The store opening comes at a very exciting period just after the launch of our seasonal campaign

dubbed Naivas Kikapu Kibonge, a 9 week campaign that speaks to the hard economic situation that

Kenyans are facing and promises not only Thindigua residents but all Naivas shoppers across the

country of kiextra offers, kibiggie discounts and kibunda choices. We know economic times have

been tough but as the Kenyan retailer of choice, we bear a duty to society to make the shopping

basket heavier while ensuring it is lighter on the pocket,” added Willy Kimani.

The retailer has a busy second quarter ahead as they purpose to open a total of six more outlets by

July

April 6, 2023
Xiaomi Celebrates 13th Anniversary with Annual Fan Festival, “Live Vivid, Let’s Vibe”

Xiaomi kicked off its annual ” Xiaomi Fan Festival” with the theme of “Live vivid, let’s vibe” on April 1st. The Xiaomi Fan Festival (XFF) event celebrates Xiaomi’s founding anniversary on April 6th, 2010. This year marks the 13th anniversary of the company, and it’s also a special event for both Xiaomi and its community of dedicated fans worldwide. Throughout the festival, Xiaomi aims to reward Xiaomi Fans with exclusive discounts, promotions, activities, and giveaways.

Great fun, Great gifts

In Kenya, we are celebrating Xiaomi Fans Festival 2023 with various promotions and great giveaways. Xiaomi customers can win a fun novelty gift when they deliver their phone for repair at the Xiaomi service center or if they post photos taken with Xiaomi 12 or 12Pro with a watermark then post on social media and tag Xiaomi Kenya or if they follow all Xiaomi Kenya social media handles and share a screenshot. In addition, to the fan festival giveaway, Xiaomi has discounted some devices Redmi A1+ has been discounted by 5% and the Redmi 10A (4+128) comes at a discounted price and with a free pair of earphones.

Check out Xiaomi Kenya’s social media pages to learn more.

History of the Xiaomi Fan Festival

Xiaomi Fan Festival (XFF) is celebrated each year on April 6, the anniversary of Xiaomi’s founding, to show appreciation for the supporting fans of Xiaomi.

The first XFF was held in 2012 in Mainland China when Xiaomi decided to launch an event to celebrate the two-year anniversary of its founding. 100,000 Xiaomi smartphones sold out in just 6 minutes and 5 seconds on that day. Outside of Mainland China, XFF was first held in India and Indonesia in 2015, and launched in European markets in 2018, beginning in Spain. Now XFF is available in more than 40 countries and regions around the world.

April 6, 2023
Naivas Supermarket Sets a Record with 92nd Store Opening, coming on the Eve of Easter 2023

Naivas Supermarket has again set another record for officially opening the doors of its 92nd outlet.

This exciting development kicks off the retailer’s expansion plan set for this year and is a step closer to store number 100th. A feat that will be the first to be accomplished by a supermarket chain in Kenya.

The new outlet, covering more than 20,000 square feet of trading space is the new anchor tenant at The Brick Mall, along Kiambu Road, and the 6th Naivas Outlet in the greater Kiambu County.

“Naivas’ heritage as a Kenyan homegrown brand has set us apart in the art of anticipating customer needs even before they voice them, this has ensured that we continually learn the science of understanding our customers and ultimately meeting them at their point of need, the most critical being freshness, quality, variety, affordability, and convenience. 33 years down the line our customers know they can trust us to deliver on these, every time they patronize us. This branch will be no different, the shopping experience promises to be wholesome as it is stocked with a variety of products ranging from fresh produce, commodities, electronics, and other general products,” said Willy Kimani Chief commercial officer.

“The store opening comes at a very exciting period just after the launch of our seasonal campaign dubbed Naivas Kikapu Kibonge, a 9-week campaign that speaks to the hard economic situation that Kenyans are facing and promises not only Thindigua residents but all Naivas shoppers across the country of Kiextra offers Kibiggie discounts and Kibunda choices. We know economic times have been tough but as the Kenyan retailer of choice, we bear a duty to society to make the shopping basket heavier while ensuring it is lighter on the pocket” added Willy Kimani.

The retailer has a busy second quarter ahead as they purpose to open a total of six more outlets by July.

Overall, this development is a positive sign for the Naivas supermarket sector in Kenya and shows that there is still significant growth potential in the industry. It will be interesting to see how Naivas Supermarket continues to expand and evolve in the coming years.

April 6, 2023
EU Parliamentarians Visit Kenyan Businesses Backed By European Investment Bank Financing

A delegation of six Members of the European Parliament is visiting Kenya to see first-hand how the European Investment Bank (EIB), which is the European Union (EU)’s lending arm, is supporting high impact investment in Kenya. The members are part of the Committee on Development which covers EU development policies globally.

The parliamentarians had the chance to be briefed on the EIB’s projects in Kenya touching on the areas of Sustainable Development Goals, Climate Change, Food Security, EU-Kenya partnerships, improving development effectiveness and global health.

They undertook site visits to several EU and EIB-funded projects to get a better understanding of the investment in the region, and in particular Kenya’s efforts to deal with prolonged drought and the worsening impact of climate shocks.

The European Investment Bank is the world’s largest international public bank and is owned directly by the 27 EU member states. EIB’s operations in Kenya represent a significant amount of Europe’s overall support to the country delivered through the Member states and their bilateral agencies with whom EIB co-operates closely.

During a visit to Vert Limited, one of the agribusiness companies that is benefiting from EIB funding, Edward Claessen, the Head of the EIB Regional Hub in Nairobi said, “We are honoured by the visit from the Members of the European Parliament. To date, EIB has signed more than 60 projects in Kenya and invested more than Ksh 223B in the country. Our projects span the areas of energy, water, targeted urban development and social infrastructure, financial inclusion and private sector investment to support MSMEs.”

“The EIB will continue to stand by its Kenyan and regional partners because business investment is ever more important in getting Kenya to fully recover from the COVID pandemic and recent economic shocks as well as building a stronger, more inclusive, greener and digital-led economy. Our focus is on continued partnership in sustainable growth/ job creation; accelerating green transition & digital transition; strengthening health systems and improving education and training,” he added.

On her part, the Co-Founder and Managing Director of Vert Limited, Jane Maina said that she was very thankful for the support shown by the European Investment Bank to grow the agribusiness value chain.

“We support a small holder farmer base of over 5,000 countrywide from whom we source for fruits and fresh produce which are then mainly exported to the European Market. The financing we received enabled us to increase the quantity of mangoes we purchased from smallholder farmers, creating and sustaining 95 permanent jobs and over 300 temporary jobs during the peak seasons as well as creating countless other indirect jobs across the chain. I am one example of many other businesses that have grown or expanded due to EIB financing” she said.

The lead of the Delegation, Dr. Pierrette Herzberger- Fofana said, “We are very pleased with the work and impact that the EU and EIB funding is having on the ground. We shall be your ambassadors back in Europe to articulate the need for increased investment in the projects in Kenya as they are helping create sustainable jobs and grow the economy. We look forward to the continued partnership between the EU and Kenya.”

The visit comes after a highly successful EU-Kenya business forum held last month which was graced by H.E. President William Ruto and other high ranking government officials. The forum brought together members the business community from the EU and Kenya.

Kenya remains a key economic and political partner for the EU, with an important role as a regional peace broker and energy producer.

Under a recently signed Global Gateway Africa – Europe Investment Package, EIB aims to support Africa for a strong, inclusive, green and digital recovery and transformation by accelerating the green energy transition, digital transition, sustainable growth and job creation as well as strengthening education and health systems.

The Investment Package will be delivered through the EIB, EU and its Member States as well as other European financial institutions working together with local stakeholders to support concrete and transformational projects jointly identified in priority areas.

April 6, 2023
Huawei eyes health sector amid county digitalization

Huawei Technologies has singled out the local health sector for its Digital Hospital, a new raft of systems designed to support the county digitalization programs.

One of the key issues identified in healthcare is the use of technology to address human resourcing challenges and the new systems will be used to boost telemedicine. Huawei’s fully connected healthcare solutions will provide medical professionals and organizations with the collaborative infrastructure they need to securely share, process, and use healthcare data, to deliver more effective care for their patients.

This said, Steve Kamuya, Director of Huawei Kenya’s Enterprise Business, includes the company’s advanced, people-oriented medical services solutions such as telemedicine applications to enable remote HD video, teleconsultation, remote surgical demonstrations, medical video-on-demand, and remote doctors’ visits.

“Often counties struggle with insufficient specialist staff, and therefore the systems we have introduced will enable them provide initial guidance, and follow-up care, and even sometimes actual diagnosis or recommendations for treatment through an online video meeting with the patient and the local healthcare worker, particularly if the local test results can be done and shared online as well,” said Kamuya.

Speaking during the Connected Kenya Summit, he noted that there are several examples where digitizing a hospital’s operations improves its operational efficiency, reduces revenue leakages, and significantly enhances patient services.

“Nowadays if we have good historical data of when patients get sick, including the medicines they use, and its frequency, we can predict their future needs and plan accordingly with staffing. Indeed, with Digital Hospital, we can even combine other forms of data, such as climate information that can affect certain infectious diseases or food price data which can lead to malnutrition, and act accordingly to mitigate such issues,” he noted.

Kamunya stated that the Digital Hospital solution is capable of synchronizing county and national government information to make the implementation of devolution more efficient, transparent, and effective. He outlined the example of a successful pilot that the firm has been running between Kenyatta National Hospital, Isiolo’s Teaching and Referral Hospital and a Sub-County Hospital in Garbatula.

“Our experience has shown the importance of a good internet connection, high quality picture quality, and a flexible platform for integrating with different sources of medical information and data,” said Kamunya.

This is the importance of county alignment and close collaboration with the national government in implementation of Kenya’s Digital Superhighway that is expected to enhance connectivity to the County institutions, provide public Wi-Fi and set-up Digital Innovation Hubs.

April 6, 2023
“Live Vivid, Let’s Vibe” Xiaomi Celebrates Xiaomi Fan Festival 2023

Xiaomi kicked off its annual ” Xiaomi Fan Festival” with the theme of “Live vivid, let’s vibe” on April 1st. The Xiaomi Fan Festival (XFF) event that celebrates Xiaomi’s founding anniversary of April 6th, 2010. This year marks the 13th anniversary of the company, and it’s also a special event for both Xiaomi and its community of dedicated fans worldwide. Throughout the festival, Xiaomi aims to reward Xiaomi Fans with exclusive discounts, promotions, activities, and giveaways.

Great fun, Great gifts

In Kenya, we are celebrating Xiaomi Fans Festival 2023 with various promotions and great giveaways. Xiaomi customers can win a fun novelty gift when they deliver their phone for repair at the Xiaomi service center or if they post photos taken with Xiaomi 12 or 12Pro with a watermark then post on social media and tag Xiaomi Kenya or if they follow all Xiaomi Kenya social media handles and share a screenshot. In addition to the fan festival giveaway, Xiaomi has discounted some devices – Redmi A1+ has been discounted by 5% and the Redmi 10A (4+128) comes at a discounted price and with a free pair of earphones. Check out Xiaomi Kenya social media pages to learn more.

History of Xiaomi Fan Festival

Xiaomi Fan Festival (XFF) is celebrated each year on April 6, the anniversary of Xiaomi’s founding, to show appreciation for the supporting fans of Xiaomi.

The first XFF was held in 2012 in Mainland China when Xiaomi decided to launch an event to celebrate the two-year anniversary of its founding. 100,000 Xiaomi smartphones sold out in just 6 minutes and 5 seconds on that day. Outside of Mainland China, XFF was first held in India and Indonesia in 2015, and launched in European markets in 2018, beginning in Spain. Now XFF is available in more than 40 countries and regions around the world.

April 6, 2023
PwDs in Kirinyaga Have a Reason to Smile

Harrison Kariuki Bundi is a Member of the County Assembly representing persons with disabilities in Kirinyaga County.

Bundi is described as considerate and takes his legislative and representative role seriously in the line of representing the group at every forum. On his Facebook page, he noted how he conducted a successful mass registration of persons with disabilities at different health facilities:

“Today we had a successful mass registration of Persons with Disabilities(PWDs) at Karumandi Health Centre. I would like to thank the Ministry of Health, CEC Health, and National Council for Persons with Disabilities (NCPWD) for your support.”

On top of that, Hon. Harrison Kariuki Bundi is a strong believer that disability is not inability.

People with disability in recent days have missed a voice to represent the group, and several organizations have lined have to me help the group recently the Rotary Club of Kenya celebrated its first celebration in Kirinyaga County with children with disabilities.

Hon. Bundi sent great gratitude to the group for Rotary group club. We at our desk, here at Sasanews.co.ke have wished Hon. Harrison Kariuki Bundi all the best of God’s immense blessings.

April 6, 2023