Author: Wanjiku Njugunah

Kenya Airways has reduced its half-year loss by 19.6 per cent to Sh11.5 billion, from Sh14.4 billion posted during a similar period last year, on account of cost-cutting initiatives implemented during the period.  

In a statement, the airline says the measures helped to partially offset a deceleration in revenues.

During the period under review, the airline’s total operating costs declined by 10.4 per cent to Sh34.6 billion from Sh38.6 billion recorded the previous period.

Meanwhile, total revenue reduced by 9 per cent to Sh27 million, which is attributable to the cessation of domestic scheduled operations in the month of April 2021.

Read: African airlines’ passenger traffic increase by 9.9 per cent in six months to June 2017

It was also on the back of travel restrictions, and lockdowns due to a surge in virus cases in key domestic and international markets including the UK, India, China, UAE, and the US.…

Central Bank of Kenya (CBK) data shows fixed deposit accounts gained Sh64.8 billion in the quarter ending June, 2021.

While the decision to keep one’s finances away for a rainy day is laudable, the big question remains, what returns can an ardent saver expect from choosing a fixed deposit over an ordinary savings account?

“The best way to safeguard one’s investment from unprecedented and volatile market movement is by investing in a fixed deposit account. With the unprecedented Covid-19 Pandemic that swept the globe over the past eighteen months, fixed deposit accounts have grown in popularity in Kenya,” said Maisha Microfinance chief executive Ireneus Gichana.

Understanding how a fixed deposit account works

A fixed deposit account is like a savings account; however, the key differentiator is that fixed deposit accounts accrue higher interest based on the duration agreed upon between the individual and the bank.

This means that an individual …

KCB Group PLC has completed the acquisition of Banque Populaire du Rwanda Plc (BPR) from Atlas Mara Mauritius Limited and Arise B.V, days after announcing the doubling of its net profit in the six months to June 2021.

According to the Kenya-based regional bank, the acquisition follows the securing of the requisite regulatory approvals in Kenya, and Rwanda in what makes KCB Group the majority shareholder in BPR, Rwanda’s second-biggest bank, with effect from August 25, 2021.

KCB Group CEO and MD Joshua Oigara said that the completion of the transaction in Rwanda will give the Group a stronger edge in deepening the ongoing Group strategy to scale regional presence.

He added that combined history of BPR and KCB will take the Group to greater heights, and would give them a stronger edge to play a bigger role in driving the financial inclusion and economic empowerment agenda in the East …

“Before the Forest and Farm Facility Programme (FFF) reached out to us, I faced many challenges in marketing the avocado produce from my farm,” says Paul Mitei, a farmer from Kiptoben Village, Nakuru County, Kenya.

Paul says he wanted to know more about how the avocado and tomato value chains worked, and the proper inputs that are critical to avocado cultivation and meeting market demands.

Paul is married with 3 children and has a 5-acre farm where his family tends to avocado trees. He says he started to grow avocadoes because other farmers in his community were growing them, but at that time he had poor crop management skills which led to low fruit yields, no profit and a lot of frustration. .

To improve his knowledge and capacity on the avocado value chain, he joined the Nakuru Small Holder Fruit Producers Association (NASFPA) with the hopes of higher sales …

Africa’s healthcare sector is on the verge of digital transformation.

This is according to a policy paper that indicates that while governments are accelerating formal digital health strategies, 41 out of 54 African countries have a digital health strategy in place.

Vodacom’s e-health policy paper also finds that consumers are dramatically increasing their engagement with digital health services via their smartphones. Official data forecasts that by 2025, smartphone reach in sub-Saharan Africa will increase by almost 70 percent.

The policy paper indicates that as a result of increased smartphone reach, informal use of digital healthcare solutions has increased, with 41 percent of internet users across Africa regularly using their mobile phones to search for health information.

Overall, the policy paper notes that there has been an exponential rise in the number of people engaging with digital health services through their smartphones, creating vast potential for countries to deliver access to …

In Kenya, businesses are condemning the high cost of doing business, amidst the economic challenges brought about by the COVID-19 pandemic.

Through the Kenya Association of Manufacturers, business owners have expressed concern on the current focus on politics without practical solutions to bring local businesses back on the recovery track

The Association’s Chairman, Mucai Kunyiha, raised concerns on the severity of the additional taxes imposed on businesses in addition to inflation adjustment on specific rates of duty.

“It is becoming more expensive to operate in Kenya due to the introduction of taxes, fees, levies and charges,” he said.

Kunyiha pointed out the Crop (Nuts and Oil Crops) Regulations 2020 which introduced new fees and levies as a measure to control thirteen (13) scheduled crops.

“Through the 2021 Finance Act, the government has introduced excise tax on raw materials and 16 percent VAT on the supply of some products, effectively increasing …

Kenya’s imports from Tanzania grew by nearly 75 percent in the six months to June 2021 compared to 2020 when its exports to Kenya hit a high of USD. 167 million.

This is according to the Chief Executive Officer of the East African Business Council John Bosco Kalis who has also urged the East African Community to eliminate Non Tariff Barriers (NTBs) and finalize the Common External Tariff review.

The CEO has also called for regional vaccination drives to fast track economic resilience and rebound.

A separate report also noted growth in Kenya’s imports from Tanzania.

Data by the Kenya Revenue Authority (KRA) published by the Central Bank of Kenya indicate that Kenya’s imports from Tanzania grew by 70 percent from January 2021 to June 2021, compared to the same period last year.

The statistics also showed that the value of goods ordered by Kenya from Tanzania stood at US$167.5 …

Centum Investment subsidiary Vipingo Development Limited says up to 1,000 coastal residents will get employment in a nuts processing factory currently under construction at its manufacturing hub in Vipingo, Kilifi County in Kenya.

According to the firm, civil works for the Sh1 Billion factory have been completed and erection of the prefabricated godowns is ongoing and set for completion by end of the year.

The project is being set up by a consortium of established international investors in the food processing and value addition sector who have acquired development rights from VDL.

Ken Mbae, Managing Director of Vipingo Development Limited, said the use of modular construction technology means the project will be operational by quarter one of 2022 and have an immediate impact on the economy of Kilifi County and beyond.

Vipingo Development Limited is a fully owned subsidiary of Centum Investment PLC and is behind the transformation of the …

Kenya Airways PLC (KQ) says it is implementing contactless transactions to enhance customer and staff health and safety priorities, at a time when touchless payments are witnessing tremendous growth in usage.

In a statement, the Kenyan carrier says it is implementing the service, in the wake of the COVID-19 pandemic.

The service will be effective from 1st September 2021.

“The contactless transactions align with the airline’s strategy to develop  sustainable business operations through investing in innovative processes and technologies for customer safety and security throughout the customer journey,” KQ said.

KQ says it will encouraged its customers to use mobile money, credit or debit cards to make any transactions at the Jomo Kenyatta International Airport (JKIA), including purchasing tickets and paying for checked-in baggage.

Commenting on the development, Julius Thairu, Acting Chief Commercial and Customer Experience Officer said the aviation industry is increasingly adopting touchless technologies to keep passengers safe, …

Trade associations in Kenya have asked for immediate reopening of the economy and ending the COVID-19 containment measures issued by the Government to reduce the loss of livelihoods from the effects of the pandemic.

The 8 trade associations from across the retail, hospitality, transport creative, and entertainment sectors also backed the motion in Parliament urging the Government to concentrate on measures to revive the economy and vaccinate more people.

As the President extended the curfew and other containment orders, the High Court issued a determination that the orders issued to law enforcement agencies on the COVID-19 protocols are in breach of the Constitution.

At the same time, there is a motion in the National Assembly urging the Government to do away with all forms of lockdowns and concentrate on measures to revive the economy and vaccinate more people.

The associations also lamented the continued harassment of their members by police …