Author: Kang'ethe Njoroge

• Kapchorua Tea Kenya saw an 87 per cent increase in net profit for the half-year period, reaching $1.4 million compared to $762,240 in the same period last year.
• Similarly, Williamson Tea Kenya posted a 93 percent increase in net profit during the same period, reaching $3.1 million compared to $1.6 million in the previous year.
• Management attributes this growth to cost containment, the use of modern technology, and a weakening shilling.

Kenya’s tea sector is experiencing a recovery, with two tea exporting companies reporting significant increases in net profit for the six months ending September 30, 2023 following strong earnings due to weakening currency.

Both Kapchorua Tea and Williamson Tea, which are listed on the Nairobi Securities Exchange, recorded profit increases of over 80 per cent in the period, attributed to a rise in demand.

Kenya’s tea sector players post huge profit gains

Kapchorua Tea Kenya saw an 87 per …

• Kenya seeks to attract $10 billion in Foreign Direct Investments (FDI) in the next four years despite dwindling inflows over the past years. 
• The Kenya Investment Authority has partnered with UNDP and the World Bank to develop and implement an Investment Facilitation Framework and FDI Attraction Strategy.
• The framework is aimed at creating a transparent, predictable, efficient and trusted mechanism for effective investment facilitation.

Kenya aims to attract $10 billion in Foreign Direct Investments (FDI) in the next four years despite experiencing declining investment inflows in recent years. The East African country, in collaboration with the Kenya Investment Authority, has partnered with the United Nations Development Programme (UNDP) and the World Bank to formulate and implement an Investment Facilitation Framework and FDI Attraction Strategy.

Rebecca Miano, the Cabinet Secretary (CS) for the Ministry of Investments, Trade, and Industry (MITI) in Kenya, stated that the framework seeks to establish a transparent, …

• US-Kenyan company Kentegra Biotechnology Holding has announced plans to set up a plant  in Kenya. 
• The company is constructing a processing plant in Naivasha that will benefit Kenya’s  small-scale pyrethrum farmers.
• Kentegra Biotechnology, which produces and sells pyrethrin extracted from dried pyrethrum flowers to global insecticide and pesticide manufacturers, seeks to work with over 90,000 small-scale pyrethrum farmers. 

US-Kenyan company Kentegra Biotechnology Holding has announced plans to set up a pyrethrum plant in Kenya. The company is constructing a processing plant in Naivasha, which will benefit Kenya’s small-scale pyrethrum farmers.

The company, known for producing and selling pyrethrin extracted from dried pyrethrum flowers to global insecticide and pesticide manufacturers, is in the process of signing contracts with roughly 90,000 small-scale pyrethrum farmers.

This development follows the firm’s recent deal to receive $15 million in equity and loan financing from Finnish development financier Finnfund and the United States Development Finance …

The International Monetary Fund (IMF) has agreed to lend $938 million to Kenya, pending management approval and consideration by the Executive Board. The board is expected to make its decision in January 2024.

Haimanot Teffara, the IMF Mission Chief to Kenya, stated that the move aims to shield the country from liquidity problems and economic difficulties resulting from the adverse impacts of COVID-19, the Ukraine War, and drought.…

• Kenya Power attributes its loss to the impact of a declining currency and a strengthening US dollar amid skyrocketing electricity costs.
• The company’s unrealized foreign exchange losses on power purchases increased from $7.3 million in the last financial year to $34.9 million.
• During the year, power purchases rose from $770 million to $943 million, primarily due to unrealized foreign exchange losses.  Finance costs increased significantly by 89%, from $83 million to $158 million, mainly driven by the depreciation of the Kenyan shilling.

Utility Kenya Power has reported a net loss of $21 million for the year ending June 30, 2023, attributed to the impact of currency fluctuations and the strengthening of the dollar amidst soaring electricity costs.

During the review period, unrealized foreign exchange losses on power purchases increased from $7.3 million in the previous financial year to $34.9 million. This was a result of the depreciation of the Kenyan …

• Better Cotton aims to support 200,000 cotton farmers across Côte d’Ivoire in the first five years.
• The Professional Association of Cotton Companies of Côte d’Ivoire will oversee the upskilling of farmers.
• Earlier this year, Better Cotton convened stakeholders in Abidjan to discuss sustainability in agriculture in Côte d’Ivoire.

Better Cotton, the world’s largest cotton sustainability initiative, has launched a new program in Côte d’Ivoire and committed to supporting 200,000 domestic cotton farmers in its first five years.

The new field-level program will offer training and resources to farming communities across the country, representing a crucial step toward helping them produce more sustainable cotton.

Before the outbreak of civil war in 2002, Côte d’Ivoire, the world’s leading cocoa producer, held a prominent position among Africa’s major cotton exporters. The cotton sector, which had experienced a significant decline in production due to years of political unrest, had been on a path …

• CIC Insurance Group PLC has announced plans to reduce its workforce by 10% through a Voluntary Early Retirement Programme.
• The move is aimed at driving cost efficiencies, simplifying organizational structures, and addressing complexities related to reporting lines.
• Staff at different levels are eligible to apply, with an attractive benefit package on offer.

CIC Insurance Group PLC has announced plans to release 10 percent of its staff through a Voluntary Early Retirement Programme. Group Chief Executive Officer Patrick Nyaga states that the move aims to drive cost efficiencies, simplify the organizational structure, and eliminate complexities related to reporting lines, among other factors.

Nyaga explains that the Group recently completed a review of its detailed organizational design, resulting in the adoption of a leaner, flatter, and more transparent structure. The new organizational setup seeks to optimize vital capabilities and eliminate functional and resource duplication within the Group.

CIC Insurance staff

Approximately seventy-five …

Bamburi Cement PLC has announced plans to sell its Ugandan business to Sarrai Group, pending regulatory approvals. The Board of Directors of the cement maker has approved the sale of its stake in Hima Cement Limited, Uganda, amid declining profits.…

• The Kenyan Government has announced plans to develop a circular economy strategy to guide the nation’s transition to circularity.
• With the circular economy, Kenya can drive the optimization of resources, reduce the consumption of raw materials, and recover waste by recycling or giving it a second life as a new product.
• However, Kenya is facing significant challenges in adopting circularity, including limited waste collection and recycling infrastructure.

The Kenyan Government has announced plans to develop a circular economy strategy to guide the nation’s transition to circularity. In a statement during the Annual Circular Economy Conference, the Cabinet Secretary for Environment, Climate Change, and Forestry, Soipan Tuya, said that with the circular economy, the country can drive the optimization of resources, reduce the consumption of raw materials, and recover waste by recycling or giving it a second life as a new product.

Strategy helps eliminate greenhouse gases

“Circular Economy is …

• Afreximbank has announced plans to establish a $1 billion Africa Film Fund in 2024.
• Africa Film Fund will oversee financing of African filmmakers, producers, and directors of creative projects across the continent.
• Despite its potential to employ over 20 million people, Africa’s film industry is facing several challenges. These include limited access to financing and copyright infringement due to weak copyright laws.

The African Export-Import Bank (Afreximbank) has announced plans to establish a $1 billion Africa Film Fund to be launched in 2024. Addressing the opening of the 2023 CANEX Summit held as part of the third Intra-African Trade Fair (IATF2023), Kanayo Awani, Executive Vice President at Afreximbank, said that the fund will oversee film financing, co-finance with large studios, finance African filmmakers, and finance producers and directors of film projects across the continent.

Awani revealed that so far, the Bank has a pipeline of over $600 million …