Category: POPULAR

  • AILA can beat RUTO in the 2022 presidential battle,Lawyer Ahmednassir Abdullahi

    Thursday, December 23, 2021 – Renowned City Lawyer Ahmednassir Abdullahi has warned Deputy President William Ruto and his allies not to take ODM Leader Raila Odinga lightly as the State House race gathers momentum.

    According to Ahmednassir, as much as Ruto is the man to beat in the 2022 presidential race, Raila stands a better chance of winning the presidency, citing the Jubilee resources that are available for Raila’s use in his presidential campaigns.

    He warned the UDA camp against viewing the gap between Ruto and Raila as a chance to relax but to keep soldiering on. “I refuse to subscribe to the notion advanced by some in Deputy President William Ruto’s camp that just because the gap between Ruto’s estimated votes and that of Raila is about 3million the task facing Raila is hopeless!

    “With the resources of my beloved Jubilee at his disposal, Raila has a fighting chance!” he said in a Tweet.

    Earlier on, Ahmednassir alias ‘the Grand Muller’ had sensationally claimed that the former Premier is no longer the potent political force he was before the handshake.

    He opined that the truce between ODM Leader and President Uhuru Kenyatta through the March 2018 Handshake has weakened Raila’s political dominance. “Raila is not the potent political force he was before the handshake.

    “The handshake damaged him a lot, he became a poodle and a stooge,” he said in a TV interview.

  • Ruto allies fight back over Itumbi’s abduction and torture

    MPs allied to Deputy President William Ruto have condemned the abduction and torture of Digital Strategist Dennis Itumbi.

    The MPs pointed an accusing finger at state agencies claiming that the hit squad still exists.

    “Itumbi has confirmed that his abductors took turns to beat him while warning him that the torture was revenge for his social media coverage, ” the MPs said in a statement read by Nakuru Senator Susan Kihika.

    The MPs alleged that the abductors demanded that Itumbi stop discussing David Mwendwa, son of the Inspector-General of the National Police Service, who is under investigation following a road accident that claimed the lives of two bodaboda riders.

    The MPs also included  Kipchumba Murkomen, Aaron Cheruiyot, Ben Washiali, Ndindi Nyoro, Kimani Ichungwa, Gladys Shollei, and Rigathi Gachagua.

    “The criminal squad handcuffed him from behind and tied his legs with a rope. They told him he knew why they were arresting him upon his inquiry and added he will know more when he would be interrogated by the boss who he must support. On saying he would rather die than support anyone’s cause by coercion, that’s is when the beatings and torture started,” the MPs alleged.

    The MPs claimed that following Itumbi’s abduction, a campaign of misinformation intensified by some individuals and bloggers affording the criminals ample time to perform their heinous acts.

    “It is clear from the intensity of this disinformation that Itumbi’s abduction and torture were orchestrated and resourced from highly-placed quarters,” they said.

    “We demand Impartial and independent investigation and President to constitute a commission of inquiry into the existence of a criminal squad targeting political players,” added the MPs.

    Murkomen said they intend to write to the special rapporteur on human rights over the incident and many others. “What is unjust here is unjust all over the world,” he said.

    Ichungwa said Itumbi had told him from his hospital bed he will be unbroken despite his attack.

    “He is thankful that he is alive despite some plans to assassinate him. If they thought they will break him then they are in a rude shock. He will continue,” said the MP.

    He claimed the incident was done by state agents and that some of them were helping in tracking down the whereabouts of Itumbi soon after it was reported.

    Wakili Gitobu Imanyara states that ”as one who has gone through the near-death experience visited on Denis Itumbi, I would like to add my meek voice to those who have expressed anger and horror at what is gradually becoming an entrenched culture of state-sponsored or condoned the practice of a police state take root in Kenya.”

    Lawyer Gitobu has blamed the authority for the torture of Itumbi saying that it’s not abiding with the rule. “We must speak out against state agents of terror behaving as if there is no rule of law in this country. There are too many cases, occurring far too regularly, and with total impunity, of law enforcement officers or their agents, taking the law into their own hands to satisfy “orders from above.”

    Imanyara added that no condition is permanent “To these agents of terror, let them know “no condition is permanent” and their day of reckoning is nigh. We have seen many of you before you. We have seen and witnessed the hand of the ICC in action.”

    Gitobu concludes that as the long night of impunity gives way to the bright light of a new day in a few months, there is a time one to be called to account, and answers will arrive for the monstrous acts of criminality. However, he has said that one should not be entitled to shed life, suffer life-long injuries, and other indescribable bodily acts of torture to get a new Constitution in vain.

  • Gov’t To Inject Ksh.113 Billion Into Kenya Airways Bailout Plan

    The government plans to pump an estimated Ksh.113 billion ($1 billion) in ailing national carrier Kenya Airways (KQ), the International Monetary Fund (IMF) has revealed.

    “The authorities are developing plans to restructure Kenya Airways and anticipate providing significant financial support over the medium term,” the IMF said in a new country report published on Thursday.

    “Much of the projected $1 billion cost for KQ’s restructuring is unavoidable as the government had previously guaranteed Ksh.84.8 billion ($750 million) in debt owed by the airline, and KQ has run large arrears.”

    Over the past three years, Kenya Airways has not been able to pay lessors and creditors due to severe cash-flow problems forcing the company to negotiate moratoriums and waivers to stay afloat.

    The Treasury has told the IMF that the restructure of KQ will be a multi-year initiative which is intended to have the lowest cost effect to the exchequer.

    “KQ will be required to trim down its network, rationalise frequency of flights, operate a smaller fleet and rationalise its staff complement,” Treasury said.

    The government is expected to assume Ksh.93.5 billion ($827 million) of KQ’s debt and pump Ksh.53.4 billion ($473 million) in direct budgetary support across the 2021/2022 and 2022/2023 budget cycles to clear overdue payment obligations and cover the upfront costs of restructuring.

    Meanwhile, Kenya Power which is currently under similar reforms to the national carrier is expected to receive Ksh.7.5 billion in the current financial year to clear its outstanding arrears, mostly for its last mile electrification project.

    The World Bank is supporting efforts to address financial difficulties at the utility firm which is part of an expected funding program to Kenya under the Development Policy Operation (DPO).

    Moreover, Kenya Airports Authority (KAA) and the Kenya Wildlife Services (KWS) will receive a combined Ksh.4.8 billion as temporary support to cover a fall in revenues due to the COVID-19 pandemic.

  • Kenya’s COVID-19 Positivity Rate Hits 32.6% After 2,964 New Cases Recorded

    The Ministry of Health on Friday announced that 2,964 people contracted COVID-19 from a sample size of 9,082 tested in the last 24 hours.

    The positivity rate is now at 32.6%, with total confirmed positive cases rising to 267,571 and cumulative tests so far conducted are 2,975,795.

    From the cases, 2,837 are Kenyans while 127 are foreigners; 1,546 are females and 1,418 are males, while the youngest is a four-month-old infant and the oldest is 97 years.

    The cases were recorded across various counties as follows; Nairobi 1,113, Nakuru 249, Kiambu 153, Mombasa 136, Siaya 119, Migori 108, Kilifi 90, Kajiado 83, Kisumu 77, Uasin Gishu 76, Machakos 74, Taita Taveta 59, West Pokot 55, Kirinyaga 55,Kwale 51, Kakamega 51, Murang’a 50, Meru 44, Embu 32, Busia 28, Nyeri 28, Bungoma 25, Laikipia 25, Narok 22, Trans Nzoia 20, Bomet 19, Kisii 16, Garissa 16, Homa Bay 15, Kericho 14, Turkana 14, Nyandarua 12, Isiolo 12, Baringo 9, Makueni 7, Kitui 2, Nandi 2, Tharaka Nithi 1, Vihiga 1 and Wajir 1. 

    The ministry also said 77 patients recovered from the disease; 25 from the Home-Based Isolation and Care program while 52 were discharged from various health facilities countrywide. Total recoveries rose to 249,694.

    However, one patient succumbed to the disease, which is a late death reported after conducting a facility record audit in December 2021. This pushes the cumulative fatalities to 5,357.

    “A total of 645 patients are currently admitted in various health facilities countrywide, while 13,887 are under the Home-Based Isolation and Care program,” said Health Cabinet Secretary Mutahi Kagwe.

    “16 patients are in the Intensive Care (ICU), 9 of them on ventilatory support while 7 are on supplemental oxygen.”

    The CS added: “Another 116 patients are on supplemental oxygen and 112 of them are in the general wards. Four patients are in the High Dependency Unit (HDU)”

    Kagwe further stated that as of December 23, a total of 9,434,220 vaccines had so far been administered across the country.

    Of these, he said 5,571,509 were partially vaccinated while those fully vaccinated were 3,862,711. The uptake of the second dose among those who received their first dose was at 55.9%.

  • Law to regulate digital lenders comes into effect, CBK

    Law to regulate digital lenders comes into effect, CBK

    This is reported to be part of new draft regulations published by the CBK on Thursday, December 23, as it begins to rein in the operations of the previously unregulated lenders.

    CBK (Digital Credit Providers) Regulations, 2021, block digital lenders from threatening debtors while recovering their loans. The regulations are now the subject of input from stakeholders until January 21, 2022.

    Disclosure of terms and conditions Moreover, the CBK will require digital lenders to provide clear disclosures of the terms and conditions of the loan to the borrower. These include charges, the interest rate to be charged, the total cost of credit, the dates when all charges become payable, and customer complaint handling procedures.

    Digital lenders will nevertheless be allowed to list negative credit information about borrowers with Credit Reference Bureaus (CRBs). They, however, must inform borrowers of the planned listing at least 30 days prior. CRB listing Digital lenders will not submit negative credit information of a customer where the credit information does not exceed one thousand shillings. The CBK has directed all unregulated digital credit providers to provide their business details by January 21, 2022.

    The credit providers will have six months from the publication of the final regulations to apply for licensing with the CBK. Licenses to the dealers will be provided within 60 days of the application, while the CBK is to certify Directors and Chief Executive Officers (CEOs) to the digital credit providers. The new draft regulations have been powered by the 2021 Central Bank of Kenya (Amendment) Act which brought digital lenders under the scope of CBK regulations.

    Uhuru signs bill into law President Uhuru Kenyatta signed into law three critical bills, among them the Central Bank of Kenya (Amendment) Bill, which gave CBK powers to license digital lenders. On Tuesday, December 7, Uhuru signed the bill, in what he said would ensure the existence of fair and non-discriminatory practices in the credit market.

  • Murang’a county coffee industry body launched

    Murang’a county coffee industry body launched

    Hon. Irungu Nyakera addressing in a past event in Murang’a

    Muranga, 20th December 2021: The Kenya Coffee Platform Muranga branch was officially launched on Friday 17th December 2021, to bring together all the private and public players in the sector in the county, to have Muranga County as the leading coffee producing county in Kenya.

     

    In 2019/2020, Muranga was ranked 3rd top county, behind Kiambu and Kirinyaga. The Launch was attended by representatives from the 44 Coffee Societies and 144 coffee factories that are presently operational in Murang’a County. Irungu Nyakera, the chairperson of the Taskforce for Development & Implementation of Tea Industry Price Stabilization Framework was elected patron of the Muranga Branch.

     

    The Muranga County Coffee platform will be built on a multipronged strategy that will include focusing on boosting production by farmers from the current average of 2kg to 15kg per bush through agronomy & inputs interventions, improving corporate governance in coffee cooperatives, improvement of facilities in processing factories and better prices through direct international buyers and local consumption.

     

    The platform further discussed the need to restructure and reorganize Murang’a Coffee Union to deal with all county coffee issues and create Murang’a Coffee Milling Company that will ease the route to market for cooperatives. Various factories in Muranga County are experiencing financial strain due to legacy indebtedness and they need legal assistance to resolve all their issues.

     

    Speaking during the launch, Irungu Nyakera, who is vying for Muranga County Governor seat in 2022 promised if elected, to provide an extension officer per factory to walk coffee farmers through the coffee revitalization journey. Further, a Kahawa Enterprise Fund would see each of the 44 coffee societies allocated Ksh10M to rehabilitate facilities in coffee factories and provide working capital facilities for operations of coffee societies. Further, every coffee cooperative will be assisted to set up a nursery for the farmers to expand their coffee bushes.

     

    As the new patron of the Muranga County Coffee platform, Irungu Nyakera promised a personal donation of coffee drying beds to 39 coffee cooperative societies and further assist the new chapter to formally register and create internal structures to enrich their offering to coffee farmers in the county.

  • Ktb taps into a higher spend segment of golf sport travelers.

    Sunday 19th December 2021: Kenya is cashing in on a longer period of stays among golfers into the destination to market other tourism attractions that the country is known for Kenya Tourism Board (KTB) Chief Executive Officer Dr. Betty Radier says spin-off tours by golf travelers after tournaments have spiced up the sport and are quickly putting Kenya on the global map as a golf sporting destination.

    “The prevailing all-weather season and other attributes such as connectivity from a golf course to a beach or a game drive have pulled golfers into the country,” said the CEO. Dr. Radier made the remarks in a statement issued to the press during a two-day golf tournament by Sunset golf society held at Nyanza golf club in Kisumu over the weekend. The event brought together golfers from the western region and Rwanda

    According to Mintel International Group Golf Tourism, golf travelers spend on average 2.5 times more than leisure tourists at a destination. Further research also shows the average length of a trip of a domestic visitor is 3.6 days, whereas a golfer stays 4.6 days. Overseas golf travelers stay a minimum of 7 nights according to a survey conducted by Golf Travel Consulting. “Having a round of golf in the morning, and basking on one of our pristine and white sandy beaches in the same afternoon or having a morning game drive and in the mid-morning get the opportunity to tee off from the Northern to the southern hemisphere is all that makes Kenya a magical golf sports destination,” said Raider.

    The Sunset Golf Society chairman James Ondigo said the tournament that has attracted interest for participation in the neighboring countries of Uganda, Rwanda, and Tanzania is set for further growth.

    KTB CEO added that Kenya has continued to cement her position as a growing golf destination through the annual Magical Kenya Open that attracts the participation of over 40 countries across the globe. Last year, Kenya during the 7th Annual World Golf Awards Gala Ceremony held in Dubai, United Arab Emirates scooped Africa’s Best Golf Destination 2020 category ahead of South Africa, Egypt, and Morocco.

    According to Dr. Radier, Kenya has made strides in the development of golf over the years a move, she says now made the entire world knows Kenya as the best destination in Africa. Kisumu County Governor Prof. Anyang Nyongo called on the need for the improvement of golf facilities in the region to meet international expectations and standards.

    Speaking at the close of the tournament, Prof Nyongo said the region has investment opportunities in all sectors besides hospitality adding that the county will this week host an investment conference to woo investors for the existing prospects in the region. “The Conference will be a precursor to Africities summit hosted by Kisumu city in May next year. We are very prepared for this big day and we hope the region as well as the country at large will benefit from it”, said the Governor

  • Covid-19 Surge  alarm: Crisis Communication Hub Opens up in Kibera

    Covid-19 Surge alarm: Crisis Communication Hub Opens up in Kibera

     

    By HENRY OWINO

    Kibera-residents-going-for-Covid-vaccination-after-CCC-Kenya-launches-campaign-scaled

    It is regrettable that yet another variant of Covid-19 has emerged branded as Omicron and is already in Kenya. The variant is said to be more deadly, severe, and contagious compared to existing known strains.

    In Kenya, the Omicron variant was declared on 14 December 2021 after two individuals identified with the variant, had a travel history from South Africa and Ghana. The transmission is now communal following the individual’s interaction with other people before tracking them down.

    According to health experts, the Omicron variant is worse in terms of transmutability and effects compared to other existing variants. While variants such as Alpha, Beta, Delta among others take between 7-14 days to show their symptoms, Omicron takes three days only. Dr. Willis Akwale, Chairman, National Covid Vaccine Taskforce cautions Kenyans that the Omicron variant is more severe and everybody needs to be vigilant.

    He urged Kenyans to get vaccinated and those vaccinated to adhere to the laid-out health protocols. “We are encouraging Kenyans who have not been vaccinated to go for it. The jab helps in boosting body immune system to fight the virus effectively should one be infected,” Dr. Akwale pleaded. Adding, more variants could come in future as it keeps on changing structure.”

    Declaration by the Government of the existence of Omicron variant coincided with the launch of Covid-19 Crisis Communication Chapter in Kenya (CCC-Kenya) at Kibera, Nairobi. The project is being implemented by Kenya Correspondents Association (KCA) with funds from DW Akademie.

    The CCC-Kenya as the name indicates is here to provide accurate information on Covid-19 which has been mirrored by the diffusion of misinformation and conspiracy theories. It has resulted in the deterrence of substantive preventive measures like vaccination, social distancing, and face masks as a political ploy. William Oloo, Chairman KCA revealed that the association is stepping in as media stakeholders in response to the Covid-19 crisis.

    He said the community depends on media to relay accurate, objective, timely and impactful information. Reasoning that media as part of the community and also as Civil Society Organization has the responsibility to educate and disseminate accurate information to the public.

    Also hinted that the CCC-Kenya team, will work with the local community to provide evidence-based and accurate information in various media outlets including word of mouth and information, education & communication (IEC) strategy to create awareness and disseminate information regarding the benefits of Covid vaccination and its protocols. “Our intervention is generally aimed at countering and debunking massive infodemic already spreading on vaccination and tell the truth. We shall create awareness of health facilities to get a vaccination, operational days and hours as well as engaging of younger adults in pandemic misinformation management efforts in social media platforms.” Oloo explained.

    Kibera is an informal settlement and cosmopolitan estate with almost every community represented, it best fit for an experimental project,” Oloo explained. Adding; “As a crisis communication hub, we are going to do our best to disseminate right and accurate information concerning Covid vaccination to residents,”

    According to Oloo, the most urgent and pressing need that the CCC-Kenya team targets to address include debunking misinformation, misconception, myths, and propaganda going around in the community concerning Covid-19, vaccines, and vaccination.

    He regretted that misrepresentation has gone viral mostly in; Facebook, WhatsApp, Twitter, tik-tok resulting in vaccination hesitance among residents. “As CCC-Kenya team, we have expertise in various fields. So, we are going to employ our skills in sensitizing residents on the importance of adhering to Covid-19 protocols and administration of vaccines,” Oloo disclosed. “Our specialists range from Public Health Officers, Community Health Volunteers (CHVs), Civil Society Organizations (CSOs), NGOs, Religious leaders, Persons with Disability (PWDs), Journalists, Community leaders, and Chiefs all drawn from Kibera,” he clarified.

    The launch of the CCC-Kenya Project came barely a month after the committee members had gone through eight weeks of rigorous training. They include journalists, public health officers, CSOs, and NGOs.

    The launch, therefore, kick-started the mission of the CCC-Kenya project in Kibera. These include sensitizing the community on Covid-19 protocols, vaccines, vaccinations, inoculations health facilities, debunking fake news in various platforms not limited to providing essential personal preventive effects (PPEs) such as masks, sanitizers if need be.

    Mildred Walwa, CHV at Kibera explained communal endorsement of misinformation on Covid-19 vaccination varies across sociodemographic groups. For example, young women claim it kills sexual libido thus overall sexual drive or desire, while men purport it damages sperms thus fertility hence one becomes impotence with erectile dysfunction.

    The elderly argue it quicken death after two years and the community condemns it as western culture and non-African cultural practice. Religions dismiss Covid-19 as satanic and vaccination is not a solution but prayer and fasting. “Misinformation has played a role in discouraging residents. Again, depending on the level of literacy, people believe and take it seriously,” Ms. Walwa regretted.

    Patrick Mutua, Public Health Director, Kibera sub-County commended the CCC -Kenya team for involving health experts in the project. He applauded the collaboration saying it will enhance the uptake of vaccination among residents thereby reducing the risk of severe Covid infections.

    Dr. Mutua was contented with affiliated organizations as conversant with Kibera and residents which will make intended communication much easier. He, however, blamed poor communication channels and coordination that is giving room for misinformation hence the main hindrance to vaccination uptake.

    Dr. Partrick Mutua appends his signature as a commitment to the task ahead while Steve Obaya looks on.

    He anticipated that the CCC-Kenya team is coming with a renewed style of information dissemination that is scientifically accepted to attenuate belief in misinformation. The doctor predicted if accurate information changes current community narratives, vaccination is likely to burgeon. “If you want to succeed in anything you are doing with community, always involve their leaders.

    People usually recognize and trust their leaders much better than unfamiliar faces,” Dr. Mutua advised. So, when residents see these CHVs, Chief, religious leaders, and others, I am sure they will become receptive and respond positively unlike to strangers,” he emphasized.

    Dr. Mutua assured the CCC-Kenya team that he will ensure vaccines are available for residents at local health facilities in Kibera. He, however, cautioned that all vaccines are safe and effective to provide protective measures against Covid-19, hence no need for demanding a particular brand. “The choice of certain brands belonging to the rich or cluster of people it is not true but propaganda peddled in social media,” Dr. Mutua refuted the claims.

    All vaccines are approved by WHO for safety and efficiency, so brands names are from companies and countries of origin or manufacturer,” he clarified. “For example, Johnson & Johnson Covid-19 vaccine is from the USA and it is administered ones. So, everybody tends to crave for single dose for full protection. Many people fear injection,” Dr. Mutua pointed out. Otherwise, AstraZeneca, Pfizer, Moderna which require two doses are available with us.”

    Nehemiah Amwocha, the area Chief expressed his gratitude for the good initiative saying the project has come at the right time. “There is another variant of concern as we speak. Omicron variant it is,” he said. Amwocha disclosed that residents deliberately stopped wearing face masks and washing hands or sanitizing claiming the disease is long gone.

    The area Chief admitted that enforcing Covid protocols to residents has been a nightmare especially in informal settlements such as Kibera where the majority are poor. He pointed out that water is a major problem in the estate that many households lack. Residents claim they use the little water they fetch, for essential services like cooking not for washing hands, one of the containment measures against Covid-19. “So, as a government representative in the community, we welcome any interventions by KCA and CCC-Kenya team. We are fully behind this initiative and ready to work with you. We will provide security,
    participate in various supportive activities were necessary to help sensitive residents on Covid-19,” Chief affirmed.

    Malaysian Hamida, an Environmental Crusader did not hide her bliss as CCC-Kenya unveiled its planned progressive activities in Kibera. For her, it was a wake-up call to get up, roll-up her sleeves for the work ahead. She back to residents and push for vaccination notwithstanding other Covid protocols. “It is unfortunate that all washing hands stations are no longer in operation due to laxity. Time to bring them back is now…., otherwise this Omicron variant should not be taken for granted,” Hamida cautioned. “Without prompt action, we are likely to go back to stringent restriction measures. The government may introduce curfew and lockdown any time soon,” Hamida posed.

    Francis Odera, CHV was quick to anticipate challenges likely to be encountered ahead of CCC-K project implementation. This is heightened political rallies by aspirants across the country in the forthcoming general elections in August. “We need to be very cautious while outside there in the field so that we are not confused for a political outfit. Many residents may not differentiate between sensitization on Covid vaccination and campaigning for a political seat,” Odera advised. Odera said some aspirants may want to associate with the CCC-K team because of good work in the community on Covid and credit themselves for political mileage. This can turn around against the team from competitors and attack members.

    Overcrowded population-with-no-face-masks-in-Kibera-slums

  • Vivo Energy Kenya feted for outstanding marketing

    Nairobi, December 2021: Vivo Energy Kenya, the company that distributes and markets Shell-branded fuels and lubricants in the country was one of the biggest winners at this year’s Marketing Society of Kenya’s (MSK) Awards, bagging the Best Sales Promotion Campaign of the Year.

    Weka Collabo Shinda Fuso FI, was a customer driven initiative, built to demonstrate sustainable affinity to Shell customers. The campaign garnered over 16 million entries and over 470,000 unique participants, making it the most impactful campaign of the year.

    Receiving the award on behalf of the company, Vivo Energy Kenya Marketing Director Mark Senteu said: “In April this year, the country entered another COVID-19 related lockdown. We knew we had to give hope to our customers and jolt the economy. 55,500 customer wins later, Weka Collabo turned out to be an outstanding demonstration of delivering excellence through customer-driven insights.”

    “This win is for every single customer who took part. It is for every Shell customer who believes in us and for every person participating in the new Jaza Raha Shinda Nyumba Promotion. Thank you for choosing Shell,” he added.

    Mr. Senteu added the award validates the value of strategic, insight-led marketing and communication function as a lever in achieving measurable, organizational, and commercial objectives.

     

     

     

    Organized annually by the Marketing Society of Kenya (MSK), the professional body for marketing practitioners in Kenya, the MSK Awards celebrate outstanding marketing campaign’s that enable organizations to achieve business and organizational outcomes while using strategies whose efficacy is research-based. They are the highest form of recognition by the marketing peerage in the country.

    Shell has also been involved with motorsports for decades and has supported local rally teams and rally events at both local and international levels.

  • Starting and maintaining a business in Kenya is a difficult affair

     

    Thursday 16 December 2021, Nairobi: Seven out of ten Kenyans say that doing business in Kenya is hard while one out of ten say it is easy. This is consistent among those who own businesses and those who do not across different social groups and geographies and across different sectors.

    The six most critical challenges faced by businesses, as identified by citizens, are the high cost of inputs (37%), a lack of working capital (32%), low demand (31%), high competition (26%), Covid-19 (23%) and the high cost of permits and taxes (19%).

     

    Citizens are slightly more optimistic about the prospects of future success for their own businesses: 3 out of 10 business owners say their business is growing (30%) or staying the same (29%), although more business owners say their business is currently declining (41%).

     

    When it comes to the economy more broadly, citizens are concerned. When asked to name the biggest challenges at national and local level, citizens put economic concerns at the top of the list.

    Locally, four out of ten citizens (41%) point to the lack of jobs / income opportunities, and a similar number (39%) point to the high cost of living and inflation.

     

    The picture is the same at the national level: lack of jobs and income opportunities (46%) and the high cost of living and inflation (44%) are cited as challenges by significant numbers of citizens.

     

    Across a range of economic policy areas, citizens are dissatisfied with the country’s direction. Just one out of ten citizens (10%) are satisfied with the country’s direction on the creation of jobs and income opportunities, compared to almost eight out of ten (78%) who are dissatisfied.

    Similar dissatisfaction applies across management of the economy (76% dissatisfied), addressing corruption (74% dissatisfied), managing public funds (71% dissatisfied) and creating a favourable business environment (60% dissatisfied).

     

    Satisfaction with Kenya’s direction on key policy areas has declined in recent years. On economic management, satisfaction has been low since 2017 (16%) and remains low in 2021 (13%).

    On job creation, satisfaction has been falling over the past five years (from 41% in 2016 to 10% in 2020).

     

    These findings were released by Twaweza and the National Taxpayers’ Association in three research briefs titled Being in Business, The State of Kenya, and Taxing Matters.

    The briefs are based on data from Sauti za Wananchi, Africa’s first nationally representative high-frequency mobile phone survey.

    The panel for this research was established through random sampling from a database of contacts from previous surveys to establish a new representative panel of the country’s population.

    For this brief, data were collected from 3,000 respondents in the fifth round of the special Sauti za Wananchi panel, conducted between 11 and 24 September 2021.

     

    Business owners are most concerned about the lack of capital, named by close to half of them (45%). The next most-cited challenge is mentioned by half as many business owners (Covid-19 – 25%).

    Other challenges include high interest rates on loans (22%), high rates of tax / cost of permits (20%), transportation challenges  (16%) and difficulty in sourcing supplies (11%). One out of ten business owners (10%) have sought but been denied a loan to support the running of their business (separate from those who sought funding to start their business).

    These difficulties in securing capital for business owners – who represent one out of three of the population (34%) – can contribute to negative ratings of the country’s economic direction.

     

    Another critical aspect of the business environment is taxation. The vast majority of Kenyans (85%) see taxes as critical to the success of the country and the economy, and a significant proportion of Kenyans (66%) say they and others pay taxes to support service delivery.

     

    At the same time, citizens have more complex views when it comes to tax avoidance: 2 out of 3 Kenyans (68%) say taxes are so high that tax avoidance is necessary for survival, and 1 out of 2 (48%) believe that tax avoidance is understandable if services are poor.

    Despite high awareness of the importance of taxes, citizens are divided when it comes to whether the tax regime is fair and well-enforced.

    Around half of Kenyans (48%) say the tax system has increased inequality and a similar proportion (45%) do not agree or disagree when asked if the current tax system is fair.

     

    The situation is worse when it comes to citizens’ views on public expenditure. Around one out of four Kenyans (28%) agree that citizens’ voices are always included in the Finance Bill, that they have a good idea on what their tax money is spent on, or that they are always confident that tax funds are spent well.

     

    Dr James Ciera, Country Lead for Twaweza in Kenya, said: “The insights provided by citizens’ views on the economy, business environment and the tax regime are critical as we continue to grapple with the economic consequences of Covid-19 and move towards the election cycle.

    Citizens are deeply concerned about the economy, locally and nationally. They have key questions on whether the tax regime is fair and whether their tax shillings achieve expected goals.

    At the same time, there is inherent optimism about the future – for their own businesses and lives as well as (less strongly) for the country. However, this optimism may not endure if our government is not able to answer their basic concerns by improving their efforts to include citizen voices in decisions around public spending, to make information about public spending and tax revenue use available and accessible, and to hold tax evaders to account.”

     

    Irene Otieno, National Coordinator of the National Taxpayers Association said: “It is positive to see such strong agreement and understanding of taxes as the basis of our social contract with government. Citizens are unequivocal that taxes are important for the success of the country, that they pay taxes to ensure service delivery, and that they would pay even without enforcement. This is a huge amount of goodwill from Kenyans to their government. We call on government to meet this goodwill with greater transparency and participation, and a strong focus on service delivery.”