Author: Martin Mwita

Kenya’s capital-Nairobi could soon have an oversupply of hotel rooms, latest trends have indicated, in the wake of heavy investments in the hospitality industry. Whilst the inclination reflects investor confidence in the country as the city continues to attract high level conferences and investments by multinationals and locals, concerns are now that an oversupply will drawback returns in the industry as hotels scramble to fill rooms. Average occupancy in the city’s high end hotels (three to five star) remains at 52 per cent, with the number of hotel rooms tripling in the last five years to more than 19,000. A…

Kenya has unveiled a mortgage refining facility-Kenya Mortgage Refinance Company (KMRC), a short in the arm in President Uhuru Kenyatta’s affordable housing scheme under the Big Four Agenda. KMRC is a non- deposit taking financial institution under the supervision of the Central Bank of Kenya (CBK). The company was incorporated on April 19, 2018 with the single purpose of providing long-term funds to primary mortgage lenders (banks, micro finance banks and saccos) in order to increase the availability and affordability of mortgage loans to Kenyans. READ:Mortgages more unaffordable as Kenya house prices increase in 2018 KMRC shareholders and funding The…

ARM Cement has signed a USD50 million (Ksh5.1 billion) deal for the transfer of its business to Devki group’ National Cement Company Limited. The deal involved acquisition of all cement and non-cement assets and business of ARM Cement PLC in Kenya. ARM Cement and its subsidiaries currently have operations in Kenya, Tanzania and Rwanda. The Company also has some interests, in the form of unexploited mineral deposits, in South Africa. The principal activities of the company and its subsidiaries are the manufacture and distribution of cement, mining and processing of industrial minerals and chemicals, trading in other building products and…

The Coca-Cola Company has announced it will maintain its majority stake in Coca-Cola Beverages Africa (CCBA) for the foreseeable future. With the change, Coca-Cola will begin presenting the financial statements of CCBA within its results from continuing operations in the second quarter of 2019 in accordance with U.S. accounting standards, the firm has confirmed. CCBA has been accounted for as a discontinued operation since Coca-Cola became the controlling shareowner in October 2017. Coca-Cola previously announced its intention to refranchise CCBA, which is the largest bottler of Coca-Cola beverages in Africa, serving 12 countries. The company has had discussions with a…

French electric  utility multinational—ENGIE (www.Engie-Africa.com) has been selected for the operation and maintenance of the Orange Services Group’s data center in Abidjan, for a five-year contract that will start early June 2019. This data center of the latest generation, built by the Orange Service Group (GOS), is one of the few data centers existing in West Africa complying with the Level IV classification. READ:How Dimension Data and SAP will roll out Intelligent enterprise solutions in East Africa According to the classification, it has the required redundancies to ensure continuity of service in all circumstances. It received the award of Best…

The Kenya Revenue Authority (KRA) has signed a Transhipment Standard Operating Procedures (SOPs) charter with stakeholders at the port of Mombasa to enhance cargo clearance efficiency and boost regional trade. As part of a commitment to boost port operations and clear bottlenecks affecting efficient cargo movement, KRA has signed the Transhipment SOPs for the Port of Mombasa with the Kenya Ports Authority and the Kenya Shipping Agents Association. READ:New equipment at Mombasa port to reduce expenses by 30 per cent KRA Customs and Border Control Commissioner, Mr. Kevin Safari, KPA General Manager Operations Captain William Ruto and the Kenya Shipping Agents…

Nine out of ten (87 per cent) of Kenyans are dissatisfied with the country’s direction on economic management, a survey has revealed, casting doubt on governments’ commitment to deliver on its promises. The proportion of citizens who express dissatisfaction, according to a report released in Nairobi this week, has been increasing since 2016 when five out of ten citizens (53%) were unhappy. Citizens are equally dissatisfied with the country’s direction on job creation (82 per cent) which again is higher compared to the past years, since 2016, when half of citizens (51%) were unhappy. This is despite the Economic Survey…

NIC Bank Kenya has signed a Loan Portfolio Guarantee agreement amounting to Ksh 515,900,000  (USD5.1 million) with the African Guarantee Fund for Small and Medium-sized Enterprises (SMEs). The partnership aims to unlock financing intended to facilitate the promotion, growth and development of SMEs in Kenya. This comes in the wake of a continued credit crunch in the market, occasioned by the interest rate cap law in the country. Since the law came into place in 2016, banks have been lending more to the government, shunning the private sector and individuals whom they term ‘high risk borrowers’. READ:Why high risk borrowers…

The Kenyan government has renewed its efforts to fight counterfeit goods and infringement of intellectual property, as counterfeiters continue to pose a threat to local manufacturers and traders. In a new move, the country’s anti-counterfeit laws have been amended, putting in place new measures that will help fight the vice which takes up to USD300 million of local manufacturers’ market share annually, with the government loses USD80 million as potential tax revenue. READ:Shocking counterfeit headaches crippling Kenya’s manufacturing sector The State is also targeting proceeds of counterfeit trade mainly property, with top businessmen, politicians and high-net individuals being among the biggest perpetrators…

Kenya and the European Union (EU) have renewed their commitment to a stronger relationship that will enhance trade, support businesses and growth of their economies. This came after President Uhuru Kenyatta on Friday hosted a business dialogue meeting with the Kenya Private Sector Alliance (KEPSA), the delegation of the European Union in Kenya and the European Business Council (EBC) at State House Nairobi. On the side-lines of this meeting, President Kenyatta also met with ambassadors from the European Union countries to discuss trade related matters. Besides fostering the relationship between the private sector in Kenya and their counterparts from the…