ORPORATEKeeping Your Business In Mind JUNE 2021 EDITION Kshs. 200, US$ 2
ISSN 2305-5561 11
9 772305 556001 Treasury Tables Ambitious 3.6 Trillion Budget In Economic Recovery Push1
Initiative to Equip 50,000 Small Business Owners With Digital Skills Kicks off
XXXXXXXXX Audit Firm Seeks Green Light for Ambassador Ukur Yatani, Importation National Treasury Cabinet Secretary of COVID-19 Vaccines
CORPORATE WATCH | JUNE 2021 EDITION www.corporatewatch.co.ke You can now contribute directly into your NSSF account through M-PESA. This is a fast, easy and convenient way to increase your contributions through your mobile phone. Simply follow the instructions listed below to do so:
PROCEDURES ON HOW TO MAKE A CONTRIBUTION USING 2 Step 1 Step 2 Step 3 Step 4
M-PESA Payment Enter Business Enter Account Send Money Services Number Number Withdraw Cash Pay Bill 333300 XXXXXXXXXX Buy Airtime M-Shwari Payment Services My Account
Go to your M-PESA menu Select Pay Bill in the Enter Business Number Enter NSSF Number and select Payment Services M-PESA Menu which is 333300 you wish to pay for
Step 5 Step 6 Step 7
Enter Amount Enter PIN Pay Bill 3200 **** Pay Bill 333300 You will. Received a text Account message confirming that XXXXXXXXXX the amount has been sent Kshs 3200 to NSSF.
OK
Enter the amount you wish to pay Enter your M-PESA PIN Confirm details are correct for (Between Kshs. 200 – 70,000) and press OK National Social Security Fund P.O. Box 30599-00100, Nairobi, Kenya | Main Line 020 2729911, 2710552 | Toll Free Line 0800 2212744 Email info nssfkenya.co.ke | Website www.nssf.or.ke JUNE 2021 EDITION | CORPORATE WATCH Initiative to equip 50,000 small 16 business owners with digital skills kicks off
Government, industry players to collaborate on enhancement of compliance 18 on Covid-19 rules
INCHCAPE Kenya
Launches BMW 3 22 Motorrad (Motorcycle)
CONTENT Dealership
Absa Bank kicks off school donations drive 26 SportPesa to 46 special needs Foundation schools donates maternity equipment in AAR Insurance CSR rolls out 30 Covid-19 vaccine 32 medical cover
CORPORATE WATCH | JUNE 2021 EDITION ORPORATEKeeping Your Business In Mind Editor’s Note JUNE 2021 EDITION Kshs. 200, US$ 2 ISSN 2305-5561 11
9 772305 556001 Treasury Tables Ambitious 3.6 Trillion Budget In Economic Road to economic recovery: Recovery Push1 Initiative to Equip 50,000 Small Business Owners With Digital Skills Kicks off
XXXXXXXXX Audit Firm The 2021/2022 Budget Seeks Green Ambassador Ukur Yatani, Light for National Treasury Cabinet Secretary Importation of COVID-19 enya’s economy is picking up speed after the Covid -19 shock. However, Vaccines
CORPORATE WATCH | JUNE 2021 EDITION the pandemic has left deep imprints on the country’s fiscal and debt www.corporatewatch.co.ke Kpositions. Like many other countries around the world, Kenya was hit hard by the COVID-19 shock. The disruption in global trade and travel, and the EDITOR containment measures put in place to limit the spread of the virus, meant that Allan Mkuywa economic activity contracted sharply in Kenya in the second quarter of 2020. ASSOCIATE EDITOR Ker Mogallo School closures, curfews, and restrictions on public gatherings transformed daily life. Some lost their jobs, while many more felt the pressure from a loss COMMERCIAL DIRECTOR of income. For the most vulnerable, this pressure translated into real hardship. Adhyambo Odera
CONTRIBUTORS While economic activity is picking up, many challenges remain. Public health is Irene Atieno still under pressure with the rollout of COVID-19 vaccines just getting started. Felix Boyd 4 Higher poverty has set back progress towards Kenya’s development goals. Francis Zyder Kenya’s fiscal and debt positions have also worsened, adding to difficulties that Catherine Muema Joan Wambui existed even before the shock. KJ Odongo Moses Cheruiyot The 2021/2022 Budget tabled by CS Treasury Ukur Yatani will prioritise the Fred Odhiambo health of Kenyans and create jobs. CS Yatani has proposed the allocation of MARKETING Sh14.3 billion to facilitate the roll-out of Covid-19 vaccines to create herd Kiptanui arap Maina immunity, in addition to the Sh7.6 billion appropriated in the 2020/21financial [email protected] year budget. This is aimed at making it possible for as many people as possible to return to work and contribute to nation building a after the interference caused DESIGN & LAYOUT Smartex Creative Graffix by Covid-19. [email protected] +254 721 496 922 In this budget, the Health sector bags 121 billion, as the country seeks to procure more vaccines in the quest to immunize the masses against the corona virus. CIRCULATION Esbon Okong’o Other sectors boosted by the budget include the Agricultural sector to ensure food security. Manufacturing is also a big winner with great boosts to ensure jobs PUBLISHERS for Kenyans. Smartbound East Africa Limited
ADVERTISING Send us your feedback on this edition, as we focus on making great strides Smartbound East Africa Limited towards economic recovery. See you in July! For inquiries contact us: th Swao Mururi Standard Building, 6 Floor P.O. Box 37671 - 00100 Stand-in-Editor Nairobi-Kenya Tel: 020 7866887 Email: [email protected] CORPORATE WATCH is published monthly by Smartbound East Africa Limited. The magazine strives www.corporatewatch.co.ke to ensure that companies and other institutions get a veritable platform to highlight their activities, challenges and successes and help build a positive business operation and investment climate across the Continent. CORPORATE WATCH accepts the information contributed by author and advertisers as factual and correct and that the views carried therein does not necessarily reflect the opinion of the publisher. Reproduction of published material in whole or part is prohibited but those wishing to do so must obtain Talk to the editor: express permission of the publisher. [email protected]
JUNE 2021 EDITION | CORPORATE WATCH BANKING & FINANCE
Family Bank Gets CMA Nod To Raise Ksh 8 Billion To Anchor Its Growth Strategy
The lead transaction advisors are NCBA Investment Bank and Genghis Capital, PricewaterhouseCoopers (PwC) as the reporting accountants, MTC Trust and Corporate Services Limited as the Note Trustees, Mboya Wangong’u & Waiyaki Advocates as the legal advisors and Tim- Sky Media Services as the Media and Public Relations consultants.
This issuance comes after the Bank successfully redeemed its five and a half years (5 and ½ year) Medium Term Note worth KES 2.0188 billion on 19th April 2021.
In Summary Family Bank CEO Rebecca Mbithi • The Bank targets to 5
By Felix Boyd to 2020. Interest Income continues to raise KES 4 billion be the Bank’s primary revenue stream in its first tranche amily Bank has today received contributing on average 77% of total with the balance to be formal approval from the Capital income, over the past five years. There raised within the next FMarkets Authority to raise up has also been an impressive increase in to KES 8 billion in tranches through non-funded income, which has grown five years in various a multi-currency Medium Term Note by a compounded annual growth rate of tranches/series. (MTN) by way of public offer to 4.9% over the past five financial years strengthen its capital base and support from KES 2.1 billion in 2017 to KES 2.6 • Family Bank’s Profit lending. billion in 2020. before tax over the past
The Bank targets to raise KES 4 billion The growth is mainly attributed to a five financial years in its first tranche with the balance to significant increase in foreign exchange grew at compounded be raised within the next five years in trading income and fees and commissions annual growth rates various tranches/series. on loans and advances. On the balance sheet side, the Bank has recorded of 21.3% from 2016 to “We are positioning the Bank for the impressive growth in total assets at a 2020. second phase of growth as per our 2020 compounded annual growth rate of 6.9%, – 2024 strategy anchored on growth customer deposit at 13.9%, shareholder • Through this capital and stability of the bank. Through this funds at 1.3% and loans and advances raising, the Bank is capital raising, the Bank is eyeing to at 3.1% over the past five financial years eyeing to strengthen its strengthen its capital base to support during the period 2016 to 2020. lending to micro, small and medium- capital base to support sized enterprises and heavily invest Ms Mbithi also added, “We are confident lending to micro, small in technology infrastructure while of the Bank’s upward trajectory of growth and medium-sized en- diversifying our product and market not only backed on our financial strength, offerings,” said Family Bank CEO our footprint as Kenya’s fourth largest terprises and heavily Rebecca Mbithi. bank in branch network but also the invest in technology in- competence of the Board, Management frastructure while di- Profit before tax over the past five and staff coupled with strong market financial years grew at compounded offering necessary to scale the Bank’s versifying its product annual growth rates of 21.3% from 2016 growth’s ambitions.” and market offerings.
CORPORATE WATCH | JUNE 2021 EDITION COVER STORY
Treasury Tables Ambitious 3.6 Trillion Budget In Economic Recovery Push
The CS went ahead to reassure Themed “Building back better: Strategy for resilient and that Kenya’s public debt, currently sitting at over Sh7 trillion is sustainable economic recovery and inclusive growth, the sustainable. 2021/2022 budget presented to the parliament of Kenya The country is banking on increased by Cabinet Secretary National Treasury Ambassador allocation and tax incentives to key job-creating sectors such as Ukur Yatani promises to turnaround Kenya’s economy. The agriculture, manufacturing, and tourism to lift the economy that Covid-19 pandemic has over the last two years wreaked has dwindled immensely in the last two years. Themed “Building back havoc rendering thousands of Kenyans jobless as businesses better”: Strategy for resilient and shut down. With this ambitious budget, Kenyans are looking sustainable economic recovery and inclusive growth, the government forward to a better year as the Corporate Watch Team of Kenya through the Treasury is targeting a 6.6 percent economic 6 reports. growth this year.
“In light of revenue challenges and significant expenditure demands, spending in the financial year 2021/22 will focus on critical areas with the highest impact on the well- being of Kenyans and support of economic recovery,” said CS Ukur Yatani in his presentation speech at Parliament of Kenya.
With the health of the nation and creation of jobs at the fore front, CS Yatani proposed the allocation of Sh14.3 billion to facilitate the roll- out of Covid-19 vaccines, in addition to the Sh7.6 billion appropriated in the 2020/21financial year budget. This is aimed at making it possible for as many people as possible to CS Ukur Yatani with Members of Parliament at Parliament Building return to work and earn a living on 10th June 2021. after the interference caused by Covid-19. he Treasury has presented Even though Kenyans in general the 2021/2022 budget are concerned about the current The State targets to expand totaling to a whooping high cost of living, Treasury Cabinet economic activities in crucial growth T sectors and address joblessness, Sh3.64 trillion up from the Sh2.84 Secretary Amb. Ukur Yatani trillion budget tabled in the year while presenting the 2021/2022 poverty, and income inequalities, 2020/2021 budget. The 2021/2022 financial year budget at Parliament all of which have deteriorated in the budget focuses on measures towards guaranteed Kenyans that their fears current Covid-19 ecosystem. economic recovery. had been taken into consideration.
JUNE 2021 EDITION | CORPORATE WATCH COVER STORY
In Summary • Themed “Building back better” Strategy for re- silient and sustainable economic recovery and in- clusive growth, the govern- ment of Kenya through the Treasury is targeting a 6.6 percent economic growth this year. • The State targets to ex- pand economic activities in crucial growth sectors and address joblessness, pov- erty, and income inequali- ties, all of which have de- teriorated in the current Covid-19 ecosystem. • Kenya’s economic growth rate last year fell from 5.4 percent to 0.6 percent, the National Treasury CS Ukur Yatani with National Assembly Majority 7 lowest since 2012 as Cov- Leader Amos Kimunya id-19, locust invasion, and floods combined to deal Kenya’s economic growth last Hospital, to improve health service a heavy blow on multiple year fell from 5.4 percent to 0.6 delivery. job-rich sectors including percent, the lowest since 2012 as Covid-19, locusts invasion, and Defense tourism, manufacturing, floods combined to deal a heavy In the 2021/22 budget, Sh294.5 and agriculture. blow on multiple job-rich sectors billion has been allocated to the • The East African Com- including tourism, manufacturing, Defense, National Police and munity (EAC) States have and agriculture. National Intelligence. Treasury has agreed to retain 25% duty set aside some Sh1.5 billion for Health the National Communication and on all imported iron and Treasury has allocated Sh121.1 Surveillance System, to step up the steel products for a further billion to the Health sector in support war against crime in Kenya. one year in a bid to stimu- of its various projects. Sh47.7 billion late local manufacturing. will cater for the Universal Health Transport Coverage, Sh8.7 billion goes into The Transport sector has been • The Treasury awarded the Covid-19 Emergency Response allocated a total of Sh182.5 billion. Sh2.3 billion to the tour- Fund and Sh4.1 billion to maternity Sh700 million will go into supporting ism sector to help it recover healthcare. the Nairobi Bus Rapid Transport from an economic fallout System. Sh7.2 billion will go into caused by the coronavi- A further Sh1.8 billion has the construction of the second phase rus. It allocated Sh1.7 bil- been allocated to elderly and of the Standard Gauge Railway lion to the Tourism Fund vulnerable persons, Sh3.9b slated (Nairobi Naivasha), and Sh7.5b and Sh643 million to the for vaccination and immunization into Lapsset project. The ministry of programmes and Sh14.3 billion will transport will also get Sh100 million Tourism Promotion Fund be used in the purchase of Covid-19 to support infrastructure projects by to help lift the sector bat- vaccines. Treasury also allocated a the Nairobi Metropolitan Services tered by the effects of the further Sh15.2 billion to Kenyatta and an extra Sh111.2 million for the pandemic that restricted National Hospital and Sh11.5b construction of footbridges. travel. to the Moi Teaching and Referral
CORPORATE WATCH | JUNE 2021 EDITION COVER STORY
development programme and Sh1 be charged a duty rate of 30 percent billion for the construction of a fish for one year, protecting local farmers processing plant in Lamu, to boost from stiff competition. exports. The Treasury has also awarded The government will put more Sh2.3 billion to the tourism sector resources into livestock production to help it recover from an economic and will set up a meat processing fallout caused by the coronavirus. plant in Lamu to provide a ready It allocated Sh1.7 billion to the market for livestock and increase Tourism Fund and Sh643 million to farmers’ income. the Tourism Promotion Fund to help lift the sector battered by the effects Tax Safeguards… of the pandemic that restricted Manufacturing, which accounts for travel. thousands of formal and informal jobs, gets an allocation rise by Sh2.2 Kenya’s tourism sector was hit hard billion to Sh20.5 billion while that after the government banned all on housing programme more than local and international flights in doubled to Sh13.9 billion from March, resulting in low tourist traffic Sh6.9 billion. at hotels and animal parks.
Government also maintained CS Yatani also announced that tax a protectionist stance on local rebates enjoyed by employers who manufactures to shield them from offer one-year internships to at least cheap imports while at the same 10 university graduates have been 8 time giving them access to cheap extended to include graduates from imported raw materials. technical and vocational education Treasury CS Ukur Yatani and training (TVET) institutions. The treasury CS also revealed that the East African Community (EAC) “It is my hope that employers will Education States had agreed to retain 25% take advantage of this incentive and The Education Ministry has been duty on all imported iron and steel give our young graduates from the awarded Sh2.2 billion. Sh62.2b has products for a further one year in a TVET institutions opportunities to been set aside for the free day and bid to stimulate local manufacturing. gain practical experience to expand secondary education programme, their employability,” said Mr. Yatani. Sh4 billion for examination waiver Manufacturers of baby diapers have The Treasury has also allocated for Class 8 and Form 4 students, been handed another year to access Sh3 billion towards the Kazi Mtaani and Sh4.2 billion for primary and inputs for the manufacture of the programme that was unveiled last secondary infrastructure. products duty-free to improve local year to offer casual jobs to the youth production and create jobs. —handing a lifeline to thousands of Teachers Service Commission young people. The Sh3 billion will (TSC) has been allocated Sh281.7 Vegetable products, including support youth empowerment and billion while Sh15.8b will go to potatoes, peas, and tomatoes employment creation for another the Higher Education Loans Board coming out of the EAC region will year. (HELB). Sh2.5 billion will go into the recruitment of teachers. A further Sh5.2b has been set aside for TVET students, Sh76.3 billion for universities and Sh323 million for National Research Fund.
Agriculture The Agriculture sector, has been allocated Sh60b to cover food security and its development projects. Sh1.5b has been set aside for the agricultural sector
JUNE 2021 EDITION | CORPORATE WATCH www.cma-cgm.com CMA CGM REFLECTING A UNIQUE RELATION WITH KENYA
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CORPORATE WATCH | JUNE 2021 EDITION UPDATE
More Corporates and Organizations join Kenya Ni Sisi Campaign
Kenyan Corporate Leaders have teamed up with citizens in a The new partners will significantly boost previously collated efforts Grand, Nationwide Movement to provide Water, PPE and Jobs of SilAfrica, SATO, the maker of to all Kenyans in need. The idea being that by working together affordable and easy-to-install toilet systems, LIXIL, a manufacturer of as one Kenya, this will ensure that no one Kenyan is left behind as building materials and housing Catherine Muema reports. equipment, The World Bank and UNICEF.
In Summary • Over the past four weeks, SilAfrica has partnered with the Genesis Group, the Kenya National Fed- 12 eration of Jua Kali Asso- ciations (KNFJKA), Na- tional Industrial Training Authority (NITA), Mara Moja Transport, UKAID, COVIDaction and DEG, a German based Develop- ment Finance Institution to deploy impactful solu- Beneficiary of Kenya Ni Sisis Campaign tions, scale-up efforts and ensure mass job creation ore Corporate firms Institution to deploy impactful and organisations have solutions, scale-up efforts and to help Kenyans tame the Mjoined the Kenya Ni ensure mass job creation to help ravaging effects of CO- Sisi Campaign to boost access Kenyans tame the ravaging effects VID-19. to water, sanitation, personal of COVID-19. • The goal of the initiative protective equipment and create “The initiative launched in April more employment opportunities for 2021 is fast gaining traction to is to meet the shortfall of Kenyans across the country. become one of the largest, patriotic the most essential human collaborations of corporates, needs - water, sanitation Over the past four weeks, SilAfrica organisations and Kenyans,” and protection - in vulner- has partnered with the Genesis said Silafrica, Group Executive able communities in the Group, the Kenya National Director, Akshay Shah. country in order to fight Federation of Jua Kali Associations COVID-19, while also (KNFJKA), National Industrial Silafrica is re-purposing some of Training Authority (NITA), its manufacturing capacity with creating a stream of jobs to Mara Moja Transport, UKAID, innovation and partnerships to combat the fast-growing COVIDaction and DEG, a German support this noble cause. unemployment crisis. based Development Finance
JUNE 2021 EDITION | CORPORATE WATCH UPDATE
Some 70 Tailors will initially “The impact of COVID-19 benefit in mask making and 200 devastated more lives, livelihoods, Jua Kali artisans will benefit by communities and businesses across making PPE with high impact The initiative Kenya, than ever witnessed before. expected when the initiative covers It has become imperative that all the whole country. has already stakeholders must unite to help minimize its impact nationwide “So far, 40 tailors have benefited impacted a number and curb its potential for further from the pilot project, and disruption on Kenyans’ lives and the others will come in as the the economy,” stated Valentine campaign kicks off,” said Kenya of communities Gichau, Group Executive Director National Federation of Jua Kali of the Genesis Group. Associations (KNFJKA), Center across the country Manager, Teresia Njora. She adds, “Individual actions are with the aim to just not enough. Only coordinated, The initiative aims to deploy unified action by Kenyans, 6,000 (3,000 ltr) contactless water elevate the whole communities, businesses and stations nationwide that have a organisations combined, can sustainable water solution, build nation by year’s greatly scale and hasten the impact 100,000 SATO sanitary toilets, of curbing this unprecedented distribute 1,500,000 PPE and end. crisis.” create at least 15 million jobs.
The goal of the initiative is to meet The initiative has already impacted Additionally, the website is 13 the shortfall of the most essential a number of communities across facilitating for anyone in need of human needs - water, sanitation the country with the aim to elevate water, PPE or work to request for and protection - in vulnerable the whole nation by year’s end. assistance and anyone who is able communities in the country in The initiative’s efforts are being to or interested in assisting, to be order to fight COVID-19, while also tracked online via their website to able to. The idea being that by creating a stream of jobs to combat ensure anyone can follow and be a working together as one Kenya, the fast-growing unemployment part of the progress. this will ensure that no one Kenyan crisis. is left behind. “This is a very significant campaign not only in ensuring that the health workers and general population have enough PPE but also creating jobs for Kenyans. This campaign is also aiding in acquisition of modern technology in the production of PPE,” said Eng. Festus Musyoki Centre Manager, NITA Textile Training Institute.
NITA will train PPE producers on medical set standards which the producers must be aware of including sizes, weight and type of material for use and maintaining high hygiene in the production process. Tailors Making PPEs
CORPORATE WATCH | JUNE 2021 EDITION BUSINESS Penda Health hires new COO as it eyes expansion Penda Health is on a mission to provide the most trusted healthcare Penda Health is a medical services provider operating over 20 medical services in Africa. Founded in 2011, it provides full range healthcare centres in Nairobi and its environs. It is expanding its affordable health for the whole family, including medical, lab and pharmacy services. care model and targeting to serve It currently operates 22 facilities, spread across Nairobi, Kiambu & more than 400,000 patients in 2021. It recently opened an in-network Kajiado Counties, with a plan to expand to the rest of the country referral center offering specialist and into Africa. Penda Health also provides free virtual consultation services to its clients. The referral on phone through the Pigia Penda service. The Health Care provider In Summary has announced the appointment of Karim Moledina as its COO as • Moledina, who until his Fred Odhiambo reports. appointment served as a Business Development Consultant at Penda 14 Health, is expected to spearhead the fast-grow- ing health care provider’s expansion strategy un- derpinned by technology with the planned opening of new medical centres this year. • In his new role, Moledina will be in charge of branch expansion, HR, supply chain, facilities and marketing. • As a Business Development Consultant, he designed and managed the launch of Penda’s new business model and referral center in Nairobi’s Central Business District as well as Karim Moledina three new branches in the city. ealth care provider Penda served as a Business Development • A renowned coffee industry Health has announced Consultant at Penda Health, is the appointment of Karim expected to spearhead the fast- veteran and business H advisory expert, Moledina Moledina as its inaugural Chief growing health care provider’s Operating Officer. expansion strategy underpinned by has over 30 years working technology with the planned opening experience in Kenya and Moledina, who until his appointment of new medical centres this year. abroad.
JUNE 2021 EDITION | CORPORATE WATCH BUSINESS
center located in Nairobi’s Central Business District will provide specialist services such as pediatric, gynecology and dental consultations, and advanced ultrasound, KCB Bank, National diagnostics and laboratory tests. This is in addition to the primary care services offered by Penda Health. Bank of Kenya Bag
In his new role, Moledina will be in charge of branch expansion, HR, supply chain, 15 Banking Awards facilities and marketing.
Announcing the appointment, Penda Health CEO, Stephanie Koczela, says Moledina’s wide expertise in the hospitality and health care spanning a variety of roles including finance, marketing, IT, human resource, project management and business advisory will be instrumental in implementing the organisation’s strategic vision.
“The appointment of Moledina is a reflection of our commitment to continuous improvement of our business operations as we scale the next level of our growth 15 strategy,” said Koczela.
She added, “Karim’s passion is in working CB Group Plc scooped 15 and leveraging technology to deliver with and growing teams at all levels and awards during the 2021 bespoke solutions that address our helping them achieve their professional and personal goals. His strengths include his KThink Business Banking customers’ financial needs,” said KCB ability to grasp evolving situations quickly Awards gala ceremony. Group CEO and MD Joshua Oigara. and help with quick decision making and problem solving.” The Group’s subsidiaries, KCB NBK’s top prize was for its custodial Bank Kenya, and National Bank of partnership with Costa Homes to As a Business Development Consultant, he Kenya (NBK) won 11 and 4 awards hold prospective homeowners’ funds designed and managed the launch of Penda’s respectively during the gala event pending completion of the real estate new business model and referral center in held last week. development they are investing in. Nairobi’s Central Business District as well The Bank also emerged first runners as three new branches in the city. KCB Bank Kenya bagged the top up in the best bank in Micro-Finance prizes in digital banking, product category, as well as second runners- A renowned coffee industry veteran and marketing and mortgage finance up prizes for product innovation and business advisory expert, Moledina has over categories, while NBK was named customer satisfaction categories. 30 years working experience in Kenya and top in the special judges’ award for abroad including 6 years at Java House, a product innovation category. This In addition to its three top prizes, KCB leading coffee roaster and restaurant operator was in addition to eight runners up Bank Kenya was also named the first in Kenya as well as providing his business awards for KCB Bank Kenya and runners-up overall bank in Kenya. It acumen to several organizations that three for NBK. also bagged the first runners-up prizes include Jacaranda Health, Liberty Eagle, in the best tier-1 bank, sustainable Big Square, Monaco Coffee International, amongst others. “The industry recognition corporate social responsibility, and demonstrates the KCB leadership agency banking categories. It was also Born in Uganda in 1968, Moledina holds position in offering financial solutions awarded second runners-up prizes in a Bachelor of Science in Business and across different segments. It is the corporate banking, asset finance, and Economic (Accounting Major) from Lehigh reason we are constantly innovating trade financing categories. University in the US.
CORPORATE WATCH | JUNE 2021 EDITION ICT
Initiative to equip 50,000 small business owners with digital skills kicks off The Micro and Small Enterprises Authority (MSEA) is a state corporation Lawrence Karanja applauded the partners for supporting the under the Ministry of Industrialization, Trade and Enterprise Development government in its efforts to promote mandated to promote, develop and regulate micro and small enterprises digital technologies and ICT as a way of creating employment (MSEs) in Kenya. MSEA is implementing key Government programmes opportunities and improving aimed at mainstreaming the contribution of MSEs towards the activation on public service delivery. The program expects to place 2,000 of Vision 2030 and the Big 4 Agenda. The digital skilling initiative dubbed youth into employment by the end Future Ni Digital is part of the digital program that was launched earlier of 2021.
this year with the key private sector players and government. The initiative Speaking during the event, the aims to create an environment that makes MSE sector globally competitive CEO of MSEA, Mr. Henry Rithaa as is reported by Corporate Watch Magazine’s Francis Zyder. said, “Our mission is to create an
n initiative to equip over 16 50,000 owners of Micro ASmall Enterprises (MSEs) with the relevant digital skills by the end of this year has kicked off in Nairobi, targeting to be expanded to multiple counties across the country.
The digital skilling initiative dubbed Future Ni Digital is part of the digital program that was launched earlier this year with the key private sector players and government.
These partners include the Ministry of Industrialization, Trade and Enterprise Development (MoITED), the Micro and Small Enterprise Authority (MSEA), Stanbic Kenya Foundation, Microsoft Philanthropies and the African Center for Women, Information and Communications Technology (ACWICT). James Irungu of Jatreteh Auto demonstrates the use of digital skills he has acquired Speaking at the Kariobangi through the Future Ni Digital Initiative, a partnership programme between Microsoft, Center of Excellence during the Stanbic Bank and Micro and Small Enterprises Authority (MSEA). Looking on from start of the training, the Chief left, Lorna Kanyuga (Philanthropies Lead, Microsoft), Henry Rithaa (CEO MSEA) and Administrative Secretary at the Pauline Mbayah (Head, Stanbic Bank Foundation). The programme aims to equip Ministry of Industrialization, Trade 50,000 small businesses with relevant IT skills to grow their businesses by the end of and Enterprise Development, Mr. this year.
JUNE 2021 EDITION | CORPORATE WATCH ICT
environment that makes our MSE Kariobangi and are set to donate a sector globally competitive, and total of 400 computers to the other we are honoured to partner with training centers across the country. such noble stakeholders who are This partnership appreciative and aligned to meeting Speaking on behalf of the bank, this National goal. Stanbic Bank Kenya CE, Charles is timely and Mudiwa noted, “As a bank, we Continuous skill improvement is seek to elevate businesses and oriented to the key for survival in today’s dynamic individuals and empower them market environment, that is why we to achieve their dreams. Many have come together to address the enterprises in the country are Authority’s strategic knowledge and skill gaps in digital still struggling to recover from the literacy that will benefit 50,000 effects of the global pandemic, and direction of focusing MSEs. This partnership is timely we have seen that having digital and oriented to the Authority’s skills is key to survival. Building key service delivery strategic direction of focusing the capacity of Kenyan citizens key service delivery functions on by providing access to resources functions on digitization and innovation to better and knowledge is in line with serve the MSE sector.’’ our objectives as part of our non- financial support.” digitization and The Future Ni Digital initiative will offer online digital entrepreneurial Microsoft Country Manager for innovation to better skills to assist these MSEs to Kenya, Kendi Ntwiga said the expand and grow their businesses organization’s involvement in the serve the MSE in the ever-changing digital market. initiative stems from its mission 17 As part of this, 192 trainers have to empower every person and sector already undergone the requisite every organization on the planet to training in a bid to kick off the achieve more. mass training of the entrepreneurs. Executive Director, Constantine Stanbic Kenya Foundation and “Microsoft has operated in Africa Obuya said, “the goal of this Microsoft Kenya have also deployed for close to 30 years. In that time, program is to accelerate skilling and an online learning platform to we’ve built strong partnerships employment prospects for 50,000 enable learners to access content across the continent, helped bridge underserved, out of school youth and further develop their skills. gaps in infrastructure, connectivity, in Kenya to ensure an inclusive capability, and we are working to economic recovery post COVID-19 The trainers are drawn from assist the continent to digitally pandemic. The project responds the Micro and Small Enterprise transform while creating sustained to the challenge of high youth Authority (MSEA), the Kenya societal impact,” Kendi said. unemployment in Kenya, which Industrial Business Training, Uasin “It also represents our desire to has further been compounded by Gishu and Nakuru counties as well support the Kenyan talent create the outbreak of the pandemic. as County Industrial Development innovative solutions for local and Officers from around the country. global impact while also addressing The impact we hope to achieve is the existing gap in some of the a skilled, resilient, and thriving In total, over 1,000 trainers from required digital skills for the new youth effectively optimizing different government agencies will age.” digital opportunities for improved be trained to become instructors livelihoods”. who will then engage with the ACWICT, the implementing various MSE’s and upskill them partners of the digital program, MSE’s contribute significantly to on how to leverage on online and developed the curriculum for the economic growth of the country, yet digital platforms to grow their trainings and are currently rolling a number of them are still struggling businesses. out the training sessions with the to survive. The digital skilling MSEA members. program aims to address this gap by The Stanbic Kenya Foundation providing individuals with access donated ten laptop computers Speaking on behalf of the to and knowledge of innovate tools to the MSEA Training Center at implementing partners, ACWICT for their sustainable development and equal opportunities.
CORPORATE WATCH | JUNE 2021 EDITION HEALTH & SAFETY
Government, industry players to collaborate on enhancement of compliance on Covid-19 rules “NMACC has partnered with this sector to ensure that there is no significant spread of the virus as they
In Summary • The agreement was an- nounced at a press confer- ence at the Nairobi Serena Hotel attended by NMACC officials and representatives from the Pubs, Entertain- ment and Restaurants As- sociation of Kenya, the Bar, Hotels and Liquor Traders Association and the Alco- 18 holic Beverages Association (L-R) Members of National Multi-Agency Command Centre (NMACC) Isaac of Kenya. Masinde a representative of the Ministry of Interior and Coordination of National • The Government agencies Government, and Michael Muthami Director, PERAK during the press briefing where the launch of the Jibambe, Jilinde, Jikinge, was done. and the private sector players also launched a By Catherine Muema a communication campaign for the communication campaign embers of the hospitality sector dubbed ‘Jibambe, Jilinde, for the sector dubbed industry have pledged Jikinge’ to push for the adherence ‘Jibambe, Jilinde, Jikinge’ to Mto collaborate with the to the Covid-19 protocols in the push for the adherence to the Government to help implement hospitality industry. protocols to limit the spread of Covid-19 protocols in the Covid-19. NMACC Commander, Major-General hospitality industry. Ayub Matiri, said the expectation This follows an engagement between from the Government is that the • NMACC oversees the the National Multi-Agency Command trade associations and the hospitality implementation of the Centre (NMACC), the hospitality industry as a whole should take a Covid-19 protocols and industry, and alcoholic beverages lead role in the enforcement of the advises the Government manufacturers that is intended to protocols to enable the revival of the reinforce the measures in place during crucial sector, which has been among on the action to be taken to the pandemic. the worst-hit by the effects of the curb the spread of the highly pandemic. infectious disease. The agreement was announced at a press conference at the Nairobi “We pushed for this collaboration • Members of the alcoholic Serena Hotel attended by NMACC because of the important role the beverages trade associations officials and representatives from the hospitality industry plays in Kenya’s pledged to ensure their Pubs, Entertainment and Restaurants economic growth. Apart from the role Association of Kenya, the Bar, Hotels that the Government plays, we felt it members abide by the and Liquor Traders Association and would also be useful to tap into the Ministry of Health guidelines the Alcoholic Beverages Association networks that exist in order to ensure as well as mechanisms of Kenya. that recovery of the sector is fast The Government agencies and the tracked,” said Maj-Gen Matiri. for self-regulation and private sector players also launched reporting.
JUNE 2021 EDITION | CORPORATE WATCH HEALTH & SAFETY
undertake to sell alcohol but also “We are already working with all other committed to “only sell alcoholic ensure that employment is secure,” stakeholders to continue and extend drinks to retailers who have a valid he added in a message read by his installation of physical assets to liquor/alcoholic drinks license. For representative. limit the spread of Covid-19, such as this, we’ll collaborate with alcohol Perspex screens, sanitiser dispensers, distributors to ensure no product is Interior ministry representative Isaac and washing stations. We will also sold to outlets flouting set Covid-19 Masinde challenged the associations work with other stakeholders to liaise guidelines.” to take the campaign to the ground: with the Public Health Officers on “As the private sector, work closely Covid-19 so that the designated staff ABAK will also help roll out with the national Government officials within the establishments can work campaigns to educate revelers on the close to where you are – chiefs, police with them,” said Mr Mbogo. need to limit the spread of Covid-19 commanders. We want to see this even as they seek to have their rest campaign in the village.” BAHLITA secretary general Boniface and relaxation. Gachoka said: “At the peak of the He said with the next surge forecast pandemic in January, more than for July, there is now focus on Kisumu, 20,000 bars were closed. We’ll engage Kisii and Kericho because of the with the Government to see that our Indian variant that has been found in members adhere to the protocols the region around Lake Victoria. and we secure the livelihoods of the workers by keeping establishments NMACC oversees the implementation going.” of the Covid-19 protocols and advises the Government on the action to be ABAK chairperson Eric Githua taken to curb the spread of the highly said the collaborations by alcohol infectious disease. manufacturers would extend to all stakeholders. Members of the alcoholic beverages 19 trade associations pledged to ensure “Our commitment in the engagement their members abide by the Ministry today therefore pertains to our overall (L-R) Boniface Gachoka Secretary-General Bar of Health guidelines as well as responsibility at company level and Hotels Liquor Traders Association of Kenya and mechanisms for self-regulation and collectively as an industry,” said Mr John Marete, an officer during the press briefing reporting. Githua. where the launch of the Jibambe, Jilinde, Jikinge, was done. Specifically, members of the trade He said alcohol manufacturers had associations will form small groups of bars and restaurants that operate within the same area, known as ‘Bar Kumi’, to encourage adherence with the law. The association also encouraged the use of the Mulika app, through which members of the public can report breaches of the law and corruption incidents.
“We believe that “Bar Kumi”, where we have establishments working together to ensure the law is followed, is a useful social accountability method to ensure the right thing is done,” said Frank Mbogo, chairman of the Nairobi chapter of the Pubs, Entertainment and Restaurants Association of Kenya (PERAK). (L-R) Members of National Multi-Agency Command Centre (NMACC) George Mr Mbogo said chief among the Makateto a representative of the Ministry of Industrialization, Trade and Enterprise protocols is to ensure social distancing Development and Isaac Masinde a representative of the Ministry of Interior and amongst staff and customers, extra Coordination of National Government engage during the press briefing where the ventilation in outlets and expansion of launch of the Jibambe, Jilinde, Jikinge, was done. seating areas to outdoor spaces.
CORPORATE WATCH | JUNE 2021 EDITION ECONOMY
African governments challenged to rethink fiscal policy as part of economic recovery
Biannual Research Workshop held under the theme per capita Gross Domestic Product of “Covid-19 Pandemic and Public Finance in Africa: (GDP) is not going to recover to its In Summary Challenges and Opportunities”, on Monday 31st May pre-crisis levels in 2021, thus the • Most economies across the 2021. biggest challenge of avoiding debt world, inclusive of several looms very largely.” Speaking at the event, World Bank Group Vice President African countries entered and Chief Economist Prof. Carmen Reinhart said most Against this backdrop, Prof. Reinhart the pandemic when they economies across the world, inclusive of several African highlighted the following policy were at high risk of or in countries entered the pandemic when they were at high priorities going forward: debt distress levels oc- risk of or in debt distress levels occasioned by rising • Debt restructuring - borrowing casioned by rising debts, debts, slowing growth and weak financial conditions. from the historical debt restructuring lessons. slowing growth and weak “The Covid-19 pandemic has exacerbated the challenges • Resource mobilisation by tackling financial conditions that existed before the pandemic, worsening the debt fiscal problems through austerity situation even further. The need to spend more on public measures. • Since 2020, the Covid-19 health and social safety nets programmes coupled • Widening of the revenue base to crisis has deepened and with a slowdown in economic activities are all exerting help reduce the debt levels and continues to affect the considerable pressure on government finances,” Prof. finance social services amidst the broader economy and Reinhart said. “Several governments across the continent pandemic. 20 people’s livelihoods. This are forced to run wide fiscal deficits that are slowly • Building safety nets through translating into increasing debt and debt distress.” digital financial platforms to has forced various govern- enable effective distribution of ments across the continent “Covid has been an exceptionally regressive crisis. the government benefits. to roll out various pro- It’s regressive within countries and regressive across • Climate financing - Engaging grammes to support the countries,” she added. green finance while tackling adversely impacted house- climate-related risks that have Since 2020, the Covid-19 crisis has deepened and been accumulating over time. holds, whilst financing continues to affect the broader economy and people’s its operations and public livelihoods. This has forced various governments across On his part, AERC Executive service the continent to roll out various programmes to support Director Prof. Njuguna Ndung’u the adversely impacted households, whilst financing said the pandemic has exposed • The pandemic has exposed its operations and public service. Unfortunately, many the structural vulnerabilities of the structural vulnerabili- African countries have relatively high levels of debt and most African countries from health ties of most African coun- that means that they do not have enough fiscal resources financing, health infrastructure, tries from health financ- to respond to the crisis and to help people, leading to debt social safety nets, economic stress levels. diversification, and public finance. ing, health infrastructure, social safety nets, econom- “We are facing a more protracted downtime as conditions “The negative effects of the ic diversification, and pub- haven’t normalised tourism, cross-border activities, and Covid-19 pandemic are visible in lic finance. other key sectors of the economy. In Africa, the income all the African regions, but most affected are in southern and western Africa,” Prof. Ndung’u said. “Some By Catherine Muema African countries have fared better frican governments have been than others depending on their initial challenged to rethink revenue conditions. The countries that were Amobilisation strategies as the already having debt distress fared impact of the Covid-19 pandemic even worse, he added.” continues to exacerbate debt stress levels across the continent. Due to the devastating impact of the pandemic, African economies are This was said during the Plenary witnessing the reversals in the gains Session of the African Economic made over the last 20 years in terms Research Consortium (AERC) of poverty reduction and employment creation. JUNE 2021 EDITION | CORPORATE WATCH 21
10 YRS OF SERVICE
CORPORATE WATCH | JUNE 2021 EDITION BUSINESS
INCHCAPE Kenya Launches BMW Motorrad (Motorcycle) Dealership
In Summary • In Africa, Inchcape has dealerships in Kenya (Inch- cape Kenya) and Ethiopia (MOENCO) with Kenya being a hub for 7 other Af- rican countries • The showroom would provide sufficient space to display BMW Motorrad products while also giving 22 customers a bespoke expe- rience before purchasing their preferred BMW mo- torcycle.
Inchacape Kenya Ltd MD Hussein Ibrahim (right) and BMW Brand Manager • The BMW motorcycle is a Maureen Njeri during the launch of the BMW Motorrad Showroom. top-end product defined by its sleekness, power, perfor- By CW Correspondent Showroom at One Africa Place mance, luxury, and com- Building, Westlands- Nairobi, fort, making it a preference enya’s multi-billion shilling Inchcape Kenya limited Managing automotive industry is Director Hussein Ibrahim said that for many motorcycle racers Kset to benefit from a new the entry of the company in the and the biking community. distributor in the market. market will ensure better service delivery as well provide better • BMW Motorrad whose Inchcape Plc, a UK based buying power to the consumer. tagline is “make life a ride” multinational, is an automotive is part of the BMW prod- distributor, retailer, and a services He added that the showroom would uct line that deals with the company. In Africa, Inchcape has provide sufficient space to display dealerships in Kenya (Inchcape BMW Motorrad products while manufacture and design of Kenya) and Ethiopia (MOENCO) also giving customers a bespoke motorcycles. with Kenya being a hub for 7 other experience before purchasing their African countries. preferred BMW motorcycle. • Customers will be offered technical training upon It began its operation in Kenya in “Our goal is to ensure that we keep purchase of the bikes to en- 2018 as Jaguar Land Rover dealers our customers first by providing and later took over the BMW them with the best services sure that they understand franchise. they can get. This state-of-the- their motorcycles better Speaking during the official launch art showroom with a variety of and can easily detect any of BMW Motorrad (motorcycle) motorcycle models is the first step issues
JUNE 2021 EDITION | CORPORATE WATCH BUSINESS
towards achieving this. One is able (S1000 RR) and Urban mobility to touch and feel the bikes before bike (C 400 X) among others. making a purchase with test rides also available for clients.” he said. “Customers will be offered technical training upon purchase The BMW motorcycle is a top-end of the bikes to ensure that they product defined by its sleekness, understand their motorcycles power, performance, luxury, and better and can easily detect any comfort, making it a preference for issues. Our after sales division many motorcycle racers and the will also ensure that customers biking community. Biking in Kenya have the latest software updates is expanding, with the community available,” Ibrahim said. growing by the day. Many Kenyans today are looking for fun activities Inchcape Kenya Ltd MD Hussein Ibrahim with “Additionally, all parts will be to keep them engaged. a BMW motorbike during the launch of the made available to customers which BMW Motorrad showroom. will ease the pressure of having “We have experienced brand to source for and bring on their love from our customers and BMW Motorrad whose tagline is “make life a ride” own which has been a pain point the growing biking enthusiasts is part of the BMW product line that deals with the for many motorcycle riders. We because of our wide product range manufacture and design of motorcycles. The product will also as well provide trained and the brand promise of bringing line has a variety of motorcycle products to choose technicians to provide expert joy to clients through Modern from depending on a person’s lifestyle and bike usage. support,” Ibrahim added. technology,” added Ibrahim. They include Adventure bikes GS series, Sport bike
23 Electronics Giant LG launches TONE Free wireless earbuds in Kenya G Electronics (LG) has unveiled in pristine clarity and completely immerse the by Meridian with four unique presets: Kenya, innovative wireless ear buds listener, thanks to Digital Signal Processing Natural for authentic and balanced Lthat promise an exceptional listening technology also developed by Meridian. sound, Immersive for an expanded sense experience, and also come with an industry- of space, Bass Boost for that extra punch first UVnano case that eliminates bacteria Speaking during the launch ceremony, LG and Treble Boost for greater clarity to vocal and germs on the earbuds as they charge. Electronics East Africa Managing Director performances. Sa Nyuong Kim said the LG TONE Free The LG TONE Free wireless earbuds are wireless earbuds bring a totally new “Whether you are home, in the car, available in two models, HBS-FN6 and experience to the market. commuting or at the gym, the new LG HBS-FN4 models that cater for all you need TONE Free models represent the latest from communication to entertainment. “LG has always strived to deliver better in audio innovation and performance for sound to more consumers. With our new consumers worldwide. We have poured all The LG Tone Free features technology from TONE Free earbuds, developed through our our accumulated expertise into creating Meridian Audio, the renowned British expanded and successful partnership with the sound identity for this new range of LG audio technology company and LG’s trusted Meridian Audio, we are not only bringing TONE Free products,” says Meridian CEO partner in delivering superior sound. This great sound but also creating an exceptional John Buchanan. ensures no sound distortion and one hears and highly practical listening experience sound as natural and clear. for the consumer,” said Mr. Kim. With studies showing that earbuds can harbor more bacteria than a kitchen cutting At the same time, the earbuds give you the Both LG TONE Free models feature board, leading to potential ear infections, comfort of controlling how much noise you customized EQ sound settings developed the LG TONE Free FN6 Model charging hear around you, without having to plug case is furnished with UV Nano technology them out of your ears. No matter where you which eliminates 99.9% of bacteria, during are, you become completely immersed in charging, eliminating the risk of contracting whatever you listen to and forget you are infections from the speaker mesh. First of wearing earbuds. its kind, this earbuds version offers the ear care that has not been thought of before by The wireless earbuds also recreate a realistic manufacturers. soundstage that stimulates the experience of listening to real loudspeakers, with
CORPORATE WATCH | JUNE 2021 EDITION TECHNOLOGY
Regional E-Health workshop to explore digital technologies to enhance healthcare
been working extremely hard to The East African Science and Technology Commission (EASTECO) deliver this event, and we are was established as a semi-autonomous institution of the EAC by the pleased that technology will allow us 5th Extraordinary Summit of the EAC Heads of State held on 18th to proceed with the deliberations.” June 2007. The Partner States undertook to promote cooperation in The NOC has representatives from Ugandan ministries and institutions the development of Science and Technology within the Community. including, the National Information EASTECO is composed of a Secretariat and a Governing Board, and it is Technology Authority (NITA-U); Ministry of Science Technology governed by the Protocol on the establishment of the East African Science and Innovation, Ministry of Health, and Technology Commission, 2007, which provides for the objectives, Private Sector Foundation, Uganda National Council for Science and functions, composition, and the administrative and financial provisions Technology and the National Council of the Commission. The Secretariat offices are in Kigali, Rwanda. The for Higher Education. main objective of the Commission is to promote and coordinate the The now fully virtual conference development, management and application of Science and Technology in will bring together academicians, 24 the Partner States (Burundi, Kenya, Rwanda, South Sudan, Tanzania researchers, technologists, developers and government decision and Uganda). EASTECO has an overall function of coordinating and makers to present and discuss facilitating the activities of the EAC Partner States and national science existing and new digital technologies for enhancing healthcare in East and technology institutions to promote the development and application Africa. of science, technology and innovation in all its aspects as Francis Zyder The event will provide an writes. opportunity to share national, inisters of Health in the regional and global experience East African Community in E-health and telemedicine (EAC) will discuss programmes and solutions as well M as biomedical engineering. It will technology solutions in healthcare delivery virtually. provide participants with insights into policy and regulatory systems, The two-day regional E-Health and infrastructure and technologies, and Telemedicine workshop, Ministerial efficient partnerships to improve Session and Virtual Exhibition was healthcare delivery. initially scheduled to take place in a Hybrid format in Kampala on 16-17 The Conference will be graced June 2021, with both physical and with opening remarks from Health virtual participation. It is organised ministers from 6 EAC Partner States, by the East African Science Secretary General of EAC- Hon. Dr. and Technology Commission Peter Mathuki and Hon Christopher (EASTECO). Bazivamo- DSG Productive and Social Sectors. The keynote speakers Commenting on the shift to a fully will include Dr Amit Thakker, virtual from the Hybrid meeting chairman of the Africa Health planned, Mr Fortunate Muyambi, Business, and Prof Khama Rogo. EASTECO’s Executive Secretary, Dr Richard Gakuba, the founder said: “The National Organising and managing director of Health Fortunate Muyambi Committee (NOC) in Uganda has Systems Innovations Ltd, will also deliver a keynote address. Founding JUNE 2021 EDITION | CORPORATE WATCH BANKING & FINANCE
Partner of BroadReach Corporation, one of the event’s gold sponsors will speak on the Digital Transformation to achieve universal Shareholders Approve Proposed health coverage in Africa. Other Keynote speakers will include Ms Brooke Partridge- Acquisitions Dividend Payout of KShs. 3.2B CEO Vital Wave. in the East African region while The meeting will introduce EAC public building a robust and financially and private sector decision-makers to sustainable and profitable solutions that will enable the improvement organization for the shareholders,” of healthcare infrastructure and delivery said KCB Group Chairman Mr. through the use of ICTs. Andrew W. Kairu.
Discussion topics at the conference At the 50th Annual General Meeting will include regional data sharing and held earlier today via electronic implementation policies, the quality means, the shareholders also of health information products, cross- approved a first and final dividend border access to health services, barriers of KShs 1.00 per share. to e-health adoption, mobile health consulting, and innovation in health information systems. The dividend worth KShs.3.2 billion shall be paid on or before June The conference will also follow-up on the 26, 2021, net of withholding tax to implementation of the resolutions of the the shareholders who were on the second workshop held in 2018. KCB Group Chairman Andrew register of members at the close of Wambari Kairu. business on April 26, 2021. 25 The Consortium behind the conference By Catherine Muema consists of the East African Science and “The pandemic tested our resilience, Technology Commission (EASTECO), CB Group shareholders have but the Group maintained the EAC Regional Centre of Excellence balance sheet growth momentum in Biomedical Engineering (CEBE)/ approved the proposal to acquire up to 100% of the issued it has built for over a decade. This University of Rwanda, the EAC Secretariat K growth was recorded across all the ordinary shares in Banque Populaire and the East African Health Research businesses and translated to all the Commission (EAHRC) Du Rwanda (BPR) and a 100% stake in African Banking Corporation Tanzania subsidiaries returning a profit for Limited (BancABC). the year,” said KCB Group CEO and The event will MD Joshua Oigara. The twin acquisitions in Rwanda and provide an Tanzania are part of KCB Group’s “As the economy continues to reopen, ongoing strategy to achieve regional we are strengthening our balance opportunity to share relevance and will increase the brand’s sheet to give us room to support footprint while reinforcing existing our customers and stakeholders national, regional market capabilities. through the crisis while ring-fencing and global experience the business for the post-pandemic The transactions follow the offer made growth,” said Mr. Oigara. in E-health and by KCB Group late last year and having now received shareholder approval, they KCB Group Plc. shook off the effects telemedicine are subject to receipt of final regulatory of the ongoing COVID-19 pandemic approval. to post a net profit of KShs.6.4 programmes and billion in the first quarter of 2021 solutions as well “These acquisitions will reinforce the ending March. The 2% growth in Group’s leadership position and give us profitability from KShs.6.3 billion as biomedical a stronger edge to play a bigger role in a year earlier was on the back of driving the financial inclusion agenda increased net interest income and engineering. cost saving initiatives.
CORPORATE WATCH | JUNE 2021 EDITION CSR
Absa Bank kicks off school donations drive to 46 special needs schools
In Summary • The bank will be donating over 4,000 school bags and 20,000 reusable face masks countrywide. • Education Cabinet Secretary, Prof. George Magoha received the first batch of masks and repurposed school 26 bags on behalf of Joseph Kangethe Primary School in Kibera. • In line with the bank’s sustainable business practices, the bags Absa Managing Director Jeremy Awori alongside Education Cabinet Secretary Prof. George Mahoga hand over a repurposed bag to a student from the Joseph Kangethe donated were made Primary School in Kibera during the launch of the countrywide donation of school bags from repurposed and masks by Absa Bank in partnership with the Ministry of Education. billboard flexis bsa Bank Kenya has kicked necessities such as face masks and obtained during Absa’s off a countrywide initiative that school bags to ease the challenges rebranding process, Awill support 46 special needs and ensure that learning goes on saving the environment schools with repurposed school bags uninterrupted,” said Jeremy Awori, and reusable masks. Absa Bank Managing Director. up to 3,000 tons of plastic waste. In alignment with the bank’s Also attending the kick-off event, the Sustainability and Corporate Citizenship Education Cabinet Secretary, Prof. Agenda, the bank will be donating over George Magoha received the first batch • The bank has invested 4,000 school bags and 20,000 reusable of masks and repurposed school bags in programmes that face masks countrywide. on behalf of Joseph Kangethe Primary equip learners with the School in Kibera. The masks will be “Education and Skills is one of the distributed to students for safe learning. necessary skills required strategic pillars of our citizenship in the future under agenda and as a purpose-led institution, Speaking during the handover event the Ready to Work we are determined to invest in the at Joseph Kangethe school, Absa’s education and well-being of generations Managing Director Jeremy Awori re- Programme benefitting to come. Given the different challenges affirmed the bank’s commitment to help over 170,000 learners. that teachers and students continue to alleviate socio-economic challenges that face due to Covid-19, we are providing communities face due to the effects of
JUNE 2021 EDITION | CORPORATE WATCH CSR
Covid-19 pandemic. He emphasised the This donation will go a long way in The bank has further invested in importance of uplifting disadvantaged mitigating the spread of the COVID-19 programmes that equip learners with the families and communities through virus and in contributing towards necessary skills required in the future investing in education as an opportunity protecting the entire community as under the Ready to Work Programme enabler and tool for positive change. we slowly regain normalcy,” Professor benefitting over 170,000 learners. Absa Magoha said when receiving the also refurbished over 3,000 computers, In line with the bank’s sustainable donations. Absa has also partnered in partnership Computer For Schools business practices, the bags donated with the Higher Education and Loans Kenya (CFSK) which will be donated were made from repurposed billboard Board (HELB) to provide scholarship to 66 schools across the country this flexis obtained during Absa’s rebranding opportunities to over 500 disadvantaged year as well as fruit trees to supplement process, saving the environment up to students in 56 local universities. the pupils diet, a need that has been 3,000 tons of plastic waste. Moreover, brought to the fore by this pandemic. the reusable face masks were produced through Absa’s partnership with the Bombululu Association of Persons with Disabilities Cultural Centre under the Diversity and Inclusion Agenda.
Education Cabinet Secretary Professor George Magoha thanked Absa for their contribution to the education pillar and called upon more organisations to invest in social and education programmes that help schools to mitigate challenges presented by the pandemic. 27 “The Ministry of Education appreciates the support from Absa, both during the period of remote learning and the phased reopening of schools. We are optimistic that these initiatives and investments will help in the growth and development of underprivileged and differently abled children who Absa Managing Director Jeremy Awori and the Education Cabinet Secretary Prof. need a lot of support from like-minded George Mahoga during the launch of the countrywide donation of school bags and organisations and individuals. masks by Absa Bank in partnership with the Ministry of Education
KRA wins Kshs. 107 million tax case against insurance agent he Kenya Revenue Authority administration of KCB Bank’s RFM (KRA) is set to collect tax of The Taxpayer informed the Tribunal is premium-based commission, which TKShs. 107,046,316 following a that KRA conveniently disregarded the is exempted from Excise Duty is decision by the Tax Appeals Tribunal fact that the Risk Margin Fund (RFM) erroneous. on 28th May 2021 to dismiss an services to KCB were provided by the appeal filed by KCB Insurance Agency Taxpayer, acting in the capacity of an The Tribunal reviewed the evidence Limited. insurance agent whose services were as presented by both parties and held expressly exempt from VAT during the that KRA was authorised by the law The Taxpayer had contended that KRA’s period under review. to demand and charge late payment treatment of its income earned from penalty and interest on VAT and Excise services provided to KCB Risk Margin KRA successfully defended its actions Duty not timeously remitted by the Fund (RMF) as consultancy fees, which and informed the Tribunal that the insurance agent. are subject to VAT, is erroneous. Taxpayer’s claim that the fee on
CORPORATE WATCH | JUNE 2021 EDITION Pan-African Performance
Facilitating Africa’s opportunities across the continent
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JUNE 2021 EDITION | CORPORATE WATCH LOGISTICS SPOTLIGHT | APRIL - JUNE 2020 21
9774_KEN_Pressad_297x210_P_EN_v1.indd 1 05/03/2020 17:39 FINANCE Pan-African Performance Report Gives Kenyan Lenders Ability to Improve Consumer Risk Decisions By Fred Odhiambo
he Covid-19 pandemic has put Kenya’s financial institutions, Tincluding commercial banks, Facilitating Africa’s at the heart of a fast-changing crisis. The reason for this is increasing non- performing loans and the rapidly growing consumer appetite for opportunities across borrowing at a time when income is under pressure. the continent As lenders respond to, and recover, from the financial impact of the pandemic, managing the effects of COVID-19 on credit risk is now a top priority, says Samuel Tayengwa, director of product at TransUnion Kenya.
Lenders remain under pressure In Summary “A credit score alone doesn’t give 29 to restructure loans and offer tax banks and financial institutions full holidays to beleaguered consumers. • Lenders remain under pressure to restructure context of a consumer’s financial The impact of the recent extension[1] loans and offer tax holidays to beleaguered position. It’s important to understand of the consumer loan repayment consumers. the customer journey in the context period is estimated by TransUnion to of economic and business trends. apply to around KSh 1.7 trillion, or • TransUnion’s credit data shows that non- Insights on consumers’ credit scores 57% of the banking sector’s KSh 2.9 performing loan rates in Kenya have and loan balances before and after trillion consumer lending book. increased to 14.6% in March 2021, from the crisis, how their credit scores are 12.5% in March 2020, as more borrowers are trending, what loan products they have At the same time, TransUnion’s credit defaulting. and what the credit limits are, can data shows that non-performing loan lead to better risk management and rates in Kenya have increased to • Fraud remains an ongoing and increasing more informed lending decisions,” 14.6% in March 2021, from 12.5% concern, with TransUnion data putting said Tayengwa. in March 2020, as more borrowers annual losses from identity theft and loan are defaulting. Fraud remains an TrendedView Report provides a more stacking in the country at approximately KES holistic picture of a consumer’s ability ongoing and increasing concern, with 13.3 billion. TransUnion data putting annual losses to manage financial commitments and from identity theft and loan stacking • TransUnion recently announced the launch determines appropriate risk levels, in the country at approximately KES of TrendedView Report, a new enhanced allowing lenders to know their share 13.3 billion. of wallet, improve risk decisions, set consumer report that helps lenders competitive credit limits and grow understand a consumer’s credit behaviour With banks under continued pressure their customer bases. to grow revenue and increase market and repayment patterns before and after the share amidst the backdrop of the crisis hit to identify credit risk and lending It does this by classifying consumers pandemic, TransUnion recently opportunities. based on their level of credit activity; announced the launch of TrendedView showing a consumer’s credit score Report, a new enhanced consumer • Access to credit is fundamental to a strong trend and probability of default; report that helps lenders understand and growing economy. This capability will providing detailed information on a consumer’s credit behaviour and help consumers build financial security by current outstanding loans; and listing repayment patterns before and after getting access to responsible credit, while past credit repayments and identifying the crisis hit to identify credit risk and repayment trends. giving credit providers deeper insights into the lending opportunities. risk behaviour of consumers.
CORPORATE WATCH | JUNE 2021 EDITION LOGISTICS SPOTLIGHT | APRIL - JUNE 2020 21
9774_KEN_Pressad_297x210_P_EN_v1.indd 1 05/03/2020 17:39 INSURANCE AAR Insurance rolls out Covid-19 vaccine medical cover Individuals vaccinated against the coronavirus that causes triggering the body’s immunity system to develop protection against the virus. COVID-19, and are worried about developing side effects, Although adverse reactions to the can now acquire a Kshs2,950 health insurance cover for up vaccine are rare, according to medical experts, they vary depending on the to 60 days after receiving the vaccine. The one of a kind cover type of vaccine. Severe symptoms may by Medical Underwriter AAR seeks to encourage Kenyans require hospitalization. to get vaccinated against the deadly virus. Dubbed Chanjo Globally, the question of compensation Cover, the offering will also include a last expense benefit as for side effects of COVID-19 vaccines, and whether manufacturers are liable, KJ Odongo writes. has not been fully resolved. This leaves health insurance as perhaps AR Insurance has introduced vaccinated as a way of protecting the best financial protection against ‘Chanjo’ cover, the first of its themselves and those close to them medical costs arising from vaccine kind in the market, catering from COVID-19. However, since it is A complications. for medical expenses arising from the not possible to vaccinate everyone at a side effects of the COVID-19 vaccine, go, we must continue adhering to other In early March, Kenya embarked on with a cover limit of Ksh 500,000 for preventive measures in place”, added a COVID-19 vaccination campaign inpatient treatment. Shigoli. 30 under the global COVAX program targeting health workers, security The vaccine insurance also comes “Our role as a life insurer in to personnel, teachers and other high- with a Ksh 500,000 last expense provide a last expense cover in the risk groups. benefit, in partnership with Pioneer event of death within 60 days after Assurance. One can sign-up for the vaccination.” Said Antony Watene, AAR Insurance is among the leading cover via USSD and online through Marketing Manager- Special Projects, medical underwriters in East Africa the AAR Insurance website. Pioneer Assurance. and has over 200,000 customers in Kenya. Persons aged between 18 and 60 years The COVID-19 vaccine works by are eligible for the vaccine cover but have to undergo a medical examination as per the COVID-19 vaccination guidelines should symptoms of the side effects arise.
“It is important to emphasize that the vaccines so far approved by the World Health Organization are safe. However, in the unlikely event of adverse reactions resulting in hospitalization and even death, this cover caters for treatment and last expenses incurred up to the prescribed limit”, said AAR Insurance Managing Director, Nixon Shigoli.
He added that vaccination is one of the most effective weapons in containing the pandemic by enhancing the ability (L-R) AAR insurance Kenya Managing Director Nixon Shigoli, Pioneer Assurance of individuals to fight off the virus, Marketing Manager-Special projects, Antony Watene and AAR Insurance Chief thus reducing risk of severe illness. Operations Officer Mercy Ndegwa during an event to launch the first of its kind in the market Kshs2950 ‘chanjo’ insurance cover catering for medical expenses arising “We are encouraging Kenyans to get from the side effects of the COVID-19 vaccine.
JUNE 2021 EDITION | CORPORATE WATCH ENERGY
engineers and experts in heavy lifting successfully mounted a generator weighing 99 tonnes (99,000 kilograms) onto the power plant’s Steam Turbine in Olkaria, Naivasha. Upon completion, the power plant will generate 83.3MW of electricity which will be injected into the national grid.
The generator which is worth Ksh 600 million was manufactured by Fuji Electric of Japan. It took five days to transport it from Mombasa to Olkaria with several stops along the way owing to its size.
Construction of Olkaria 1 AU 6 geothermal power plant started in December 2018 following a ground- breaking ceremony which was graced KenGen Olkaria 1 Additional Unit 6 Steam Turbine Installation. by President Uhuru Kenyatta. KenGen Enters Final Phase of Olkaria 1AU 6 Geothermal Power Plant In Summary • This is the largest single 31 By Francis Zyder Fuji Electric which is the Turbine unit of turbine KenGen eading energy producer, Manufacturer has deployed Technical will be installing in any Kenya Electricity Generating Adviser who will oversee the whole of its power plants with a LCompany PLC (KenGen) has installation process and ensure started installing a Steam Turbine success. He will be assisted by a team capacity of 83.3MW into the Olkaria 1 AU 6 Power Plant, of Engineers from both Fuji Electric • It is also the first time signalling a major breakthrough in the and KenGen. on-going construction of the power a Fuji Turbine is being plant. The turbine installation and its installed not only in auxiliaries will take approximately Kenya but in Africa. This is a great achievement, given that three (3) months including dynamic the Steam Turbine is the heart of the balancing. This Installation • Fuji Electric which is the power plant. It is the component that is will run alongside other major Turbine Manufacturer usually rotated to drive the generator installations such as Generator Step has deployed Technical that produces electricity. KenGen Up Transformer (GSUT), Auxiliary Adviser who will oversee Managing Director and CEO, Mrs, transformers, MV and LV Switchgears, the whole installation Rebecca Miano said the installation Non Condensable Gas extraction of the turbine’s lower casing starts system, Cooling water system, Air process and ensure success Thursday 10th June 2021. Compressor system, Heating and • The turbine installation Ventilation system and Emergency and its auxiliaries will “This is the largest single unit of Diesel Generator. turbine we will be installing in any take approximately three of our power plants with a capacity of Mrs. Miano said KenGen is happy (3) months including 83.3MW and with its installation we with the progress of the project as it dynamic balancing. are now entering the final phase of is on schedule despite challenges construction of the power plant,” Mrs. brought about by the COVID-19 • The generator which is Miano said. pandemic. “With these activities worth Ksh 600 million running concurrently, it will ensure was manufactured by She further revealed that this was the that the power plant’s commissioning Fuji Electric of Japan. It first time a Fuji Turbine was being is achieved in the last quarter of the took five days to transport installed not only in Kenya but in year 2021,” she added. Africa. it from Mombasa to In January this year, a team of 15 Olkaria
CORPORATE WATCH | JUNE 2021 EDITION CSR
“This is the third such facility we are supporting in three months and remain committed to partnering with similar facilities across different counties.”
Lunga Lunga Health Centre in Industrial Area mainly supports patients from informal settlements of Mukuru, especially Mukuru kwa Njenga. The government embarked on building the in-patient maternity wing to facilitate 24-hour all-round maternal health services.
“In the past, we purely catered for outpatients only, but with this new block, we project up to 500 deliveries per month once it is complete. The Lunga Lunga Health Center Facility-in-Charge Sister Ann Maru, Chairman Joshua donation today from SportPesa Oraga and Makadara Sub County Pharmacist Dr. Christine Onuko receive Ksh1.7 Foundation will go a long way in million maternity equipment from SportPesa CEO Ronald Karau. enabling us to support the surrounding settlements,” said Anne Maru, the Facility-In-Charge at the Lunga Lunga SportPesa Foundation donates Health Centre. 32 SportPesa Foundation is committed maternity equipment in CSR to supporting communities in sports & education, maternal care and By Felix Boyd ending period poverty by promoting menstrual hygiene projects. In Summary portPesa Foundation has • The Foundation donated eight beds supported Lunga Lunga Health This donation comes weeks after for the labour ward, 10 baby cots, SCentre to a tune of Ksh1.7 a similar donation worth Ksh1.2 million as part of its contribution in million to Riruta Health Centre and two delivery beds, an incubator and making the facility’s new maternity Kshs800,000 in support of Bomet laundry room equipment wing functional. County’s Ndarawetta Dispensary’s new maternity wing. • Lunga Lunga Health Centre in The SportPesa Foundation delivered Industrial Area mainly supports various donations to equip the Sportpesa Chief Executive Officer patients from informal settlements hospital’s new maternity block Captain Ronald Karauri at the Riruta constructed by Nairobi Metropolitan Health Centre donation said: of Mukuru, especially Mukuru kwa Services. The Foundation donated Njenga eight beds for the labour ward, 10 baby “We believe this partnership, which cots, two delivery beds, an incubator • SportPesa Foundation is committed falls under our maternal health pillar and laundry room equipment. will go a long way in empowering this to supporting communities in sports & community. As SportPesa, through education, maternal care and ending “We support the initiative by NMS to our foundation, we are committed in increase capacity in the sub-counties period poverty by promoting menstrual supporting maternal health in ensuring to ease pressure on the public referral that women do not have to travel long hygiene projects hospitals and also improve access distances, or wait for available beds, to healthcare in Nairobi’s informal • Sportpesa Foundation has in the last to get the right health care. SportPesa settlements. SportPesa remains recognizes the sacrificesmade every three months donated equipment worth committed to supporting maternal day by our frontline healthcare Ksh 1.2 million and Ksh 800,000 to health care to help women access professionals and these PPE kits are quality services easily,” said SportPesa two other health facilities. part of our support to these warriors in CEO Captain Ronald Karauri. the fight against Covid-19.”
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booking tickets.
The addition of the Amsterdam- Mombasa route will see it expand its presence in the region on the back of increased tourism and trade between East African nations and the European Union. The carrier’s decision to launch flights to Mombasa also signals growing confidence in East Africa’s tourism market, one of the most competitive globally as the world is starting to slowly recover from the Covid-19 pandemic.
Economic data shows the number of international tourists arriving in Kenya through its two major airports in Nairobi and Mombasa has been KLM Royal Dutch Airline to rising as countries gradually ease launch direct flights to Mombasa Covid-19 restrictions. Since 1969 KLM has been flying to East Africa For over a century, KLM has been a pioneer in the airline industry. since 1969 and on May 19th, KLM is the oldest airline still operating under its original name celebrated 52 years of operating to Kenya. KLM Commercial Director for 35 and aims to be the leading European network carrier in customer East Africa Mr. Steven van Wijk said “In the fifty two years we have flown to centricity, efficiency and sustainability. The KLM network connects Kenya, our primary role as an airline the Netherlands with all of the world’s key economic regions and is has been to provide the all-important air connectivity between the region a powerful engine driving the Dutch economy. With the launch of and the rest of the world backed by a strong global network thus promoting direct flights from Amsterdam to Mombasa, the carrier will expand sustainable tourism and development. its presence in the region on the back of increased tourism and trade We thank Kenyans for their warm welcome and the hospitality ever between East African nations and the European Union as Corporate since we started our operations and the strong ties we have created as we Watch Magazine’s Fred Odhiambo reports. navigate the new normal together. We now look forward to experience the he Dutch national carrier offering a direct flying experience. richness of Mombasa’’ KLM, part of the Air France- KLM Group, will in October “The rising number of tourists visiting T Flying safely and hygienically this year commence direct flights Mombasa, not just from Europe but with KLM to Mombasa as the airline seeks to also the rest of the world, signifies This year, KLM has set the highest further strengthen its presence in East the growing interest in the unique possible standard to ensure optimal Africa. experiences the coastal city has to health and hygiene for passengers, offer. KLM comes in to offer a superior before, during and after their journey. The carrier will operate two flights and memorable flying experience both For those efforts, KLM recently a week on Thursday and Sunday for first time and regular flyers to East received the Diamond APEX flying the Boeing 787-9 Dreamliner Africa from our hub in Amsterdam. certification, which means that KLM between Amsterdam and Mombasa Because of positive developments is one of the leading airlines in the starting October 31, with a loop to regarding the pandemic in various field of hygiene and health safety. Nairobi from Mombasa. regions, we see an increasing Moreover, KLM offers maximum demand for direct flights” said Mr. flexibility when booking, changing KLM General Manager for East Africa Dieffenthaler or cancelling your trip. KLM will of Mr. Arthur Dieffenthaler said the course follow all travel restrictions set flights to Mombasa will mainly target With fares already available for by the governments. leisure travelers to the coastal city by booking, passengers are already
CORPORATE WATCH | JUNE 2021 EDITION HEALTH
Audit Firm Seeks Green light for private hospitals to import COVID 19 vaccines being foreign, and therefore the identification is necessary in order stability of exchange rates will play to administer proper diagnosis and a big role in sustainability of these agenda. debts going forward. Most of this debt has been expended towards The database will provide big infrastructural projects whose information on number of benefits will be realized in the long households and number of family term. members. This will guide the policy makers with the background Big data necessary to achieve information for assessment of status the big 4 agenda of housing in the country. The PKF is recommending the Creation information will be an authentic of a national database by the source of civil data which is government as a reference point for important for planning purposes national development initiatives. in the delivery of the Affordable Housing targets. PKF Partner, Michael Mburugu The end users will refer to the The database will generate biodata By Moses Cheruiyot database to inform planning for the 36 Big 4 Agenda initiatives and other on persons’ employment status and KF has urged the government development programmes. main occupation. Persons engaged to put in place mechanisms in production of raw materials are to allow private hospitals Accurate planning requires critical in providing the same for P accurate data. The huduma namba development of industries which to import vaccines in order to compliment government efforts. project rolled out in 2019 was meant create employment. To attract to build and secure ‘big data’ that is investors in the Manufacturing The audit firm in its pre-budget necessary for planning and making sector and spur growth in the labour report urged the government informed economic decisions. market, updated data on persons is to prioritize the vaccination needed for planning purposes. programme by allocating more The Government targets to achieve resources for this purpose. national food and nutrition security PKF position on Taxation and in execution of this mandate, Measures “There is no certainty as to how the government needs a national Lack of a clear tax policy: PKF long it will take for the pandemic database of farming households is proposing that the government to come to an end. However, it and subsequently all farmers in the adopts a long- term and cogent tax is clear that countries that have country. Achieving national food policy. Kenya’s tax statutes it notes initiated widespread vaccination security will be largely informed are littered with annual/bi-annual programmes are in a better position by a comprehensive register of all amendments. Besides creating to re-open their economies fully,” farmers in Kenya. room for additional tax collection, the report notes. most of these changes in tax lack a The database will also assist philosophical orientation. In some instances, taxes such as betting tax Debt Rationalization in planning for achievement of PKF is calling for restructuring universal healthcare through which was scrapped in 2020 is now of the country’s debt to match provision of background proposed to be re-introduced just the life of key ongoing projects to information needed for registration one year down the line! avoid getting into a debt trap. It for provision of universal healthcare recommends alternative sources of services under the National Minimum tax: This tax was financing such as the public private Hospital Insurance Fund. The same introduced by the Finance Bill partnerships.. information will be easily accessible 2020. Subsequently this has Kenya’s debt has ballooned over the for use by relevant stakeholders in been suspended by the High last few years with 50% of the debt the health sector. Accurate patient Court pending full hearing on
JUNE 2021 EDITION | CORPORATE WATCH HEALTH
to apply for a refund later on. This VAT on exported services: will further complicate vat refunds The end users The 2021 Finance Bill proposes backlog since KRA has not been to change the classification for able to settle these in good time. will refer to the exported services from zero-rate to This will unnecessarily and unfairly exempt. This change means that deny businesses their rightful funds database to inform suppliers of exported services will which are necessary to support not be allowed to claim their input their operations especially during planning for the Big VAT thus making such supplies a the pandemic hence mitigate the lot more expensive. This is against disruption caused to our economy. 4 Agenda initiatives international best practice as recommended by the OECD and VAT exemption tariff chapter 84 and other development practiced by almost all countries in and 85: The Finance Act 2020 the world. introduced VAT on machinery of programmes. tariff chapters 84 and 85. These The proposed change contradicts are heavy machinery required for government’s effort of implementing our industrial success. As a result, the Konza city dream- a dream many businesses will end up with its constitutionality. Minimum that seeks to make Kenya Africa’s huge input VAT credits that will tax was ill-advised as it has the Silicon Valley. By changing the result in significant VAT refund impact of crippling both small and zero-rated status of export of claims that are never processed and large businesses, especially those services, the government is loudly paid on time by KRA. The cost of businesses with high turnover but pronouncing the death of konza city deploying big projects will rise as low margins, large capital outlay dream. No investor would gamble a result since businesses are now forced to borrow in order to finance and those that have huge capital their money at konza if they will 37 allowances. The Government suffer additional VAT under the VAT. should re-think the practicality of proposed new tax. It is time for this tax besides its constitutionality. Treasury to enact a clear and cogent Common Reporting Standards: tax policy for the country. The Finance Bill 2021 proposes to VAT on essential goods: The introduce regulations to govern the Finance Bill 2021 proposes to Withholding VAT exemption: common reporting standards. The introduce VAT on bread at a time The Bill proposes to scrap the legal Common Reporting Standards were family have lost income, businesses regime for exempting companies developed by the OECD to tackle have collapsed, and the worst is that are in perpetual VAT refund illicit flow of funds, tax evasion still beckoning, yet the government from the withholding VAT regime. and improve tax transparency find it fit to tax bread- which due to This means that such companies and compliance. This means that lack of an alternative has become a will accumulate huge VAT credits/ offshore bank accounts for Kenyan majority of Kenyans staple food. refunds for which they have to wait residents will now be accessible to for a long time to utilize or they have the KRA. Strict sanctions have been proposed for non-compliance with reporting obligations by financial institutions. This is a very welcome proposal asit will help to addresse the endemic issue of corruption.
Country-by-Country reporting: The finance Bill has proposed to have Kenyan multinationals disclose transactions in foreign jurisdictions. This is aimed at giving visibility to KRA on tax affairs of these Kenyan multinationals in all jurisdictions they operate in. Government needs to consider extending the CbC reporting requirements to also cover non-Kenyan multinationals.
CORPORATE WATCH | JUNE 2021 EDITION OPINION
Online Payments: How to Stay Safe and avoid Online scams cybercrime in 2019. completion of a transaction. It’s not uncommon for scammers posing Security is a top priority at WorldRemit, and we aim to as tech support to inform you that put safety for customers at the heart of our processes as there is something wrong with your an increasing number of people opt for digital payments transaction or account. to Kenya. To avoid becoming a target of such Here are five tips from digital payments experts scams, do not provide sensitive WorldRemit to keep you safe when transacting through data such as your password, your By Sharon Kinyanjui. digital channels. date of birth and other personal emittance inflows – information. Familiarize yourself money sent back home by 1. If it sounds too good to be true, avoid it with the official communication RKenyans abroad – continue There are many reasons why people use digital channels of your service providers to provide a stable source of payments services – receiving money from friends and and avoid communicating through foreign exchange for Kenya while relatives abroad is just one of them. Sometimes you may unofficial lines – it’s mostly always supporting many households. Data use digital payments service to process payments for a scam. from the Central Bank of Kenya online work or online investments. When looking for indicates that remittances rose to a a service to use, be wary of persons or companies that Also stay updated on the latest 38 record high of $290 million (sh31.3 approach you purporting to save you huge transaction information security trends, billion) in the first quarter of 2021, or foreign exchange fees as long as they handle the including ensuring you use a 27 per cent higher than the $229.8 transaction for you. The rule is: if it’s too good to be service with the latest encryption million (sh24.8 billion) recorded in true, avoid it. features and with clear disclosures the first quarter of 2020. about how they store and utilize 2. Make sure you are using a licensed provider users’ personal information. An interesting trend is that an Use only reputable and licensed payment providers increasing number of the 3 million such as WorldRemit. Go online to the relevant financial 5. Beware of people Kenyans living abroad are opting regulator website to determine if the payment provider impersonating brands for digital payment services as is licensed. WorldRemit is a fully licensed international A common trick involves someone opposed to the traditional money money transfer service and Authorised Electronic creating a fake social media remittance agents. This is also Money Institution. account in an attempt to convince the case for recipients, who you that they are someone they increasingly prefer digital checkout 3. Check availability of customer support and are not to gain your trust. Hooks methods like mobile money and user reviews such as ‘invest and we’ll give you bank transfer. Even if you are using a digital service that is simple and a 10x return’ are used, but once easy to use, it is always reassuring to know that you can you have parted with your money While the convenience that digital turn to a customer support team in case you encounter you are unlikely to speak to anyone payments brings is unparalleled, if any challenges. WorldRemit has 24/7 customer support, again. Make sure you check out not vigilant, making and receiving meaning you can get help or questions answered at any who you are talking to and verify payments online also comes with time in any place around the world. it is actually the brand you think it the risk of cybercrime. From is. Contact your intended company impersonation to unlicensed outlets The best source of information on the safety, security directly via their website to be on taking advantage of customers, and general user experience of a service is other users. the safe side. users of digital payment services Visit a reputable website like TrustPilot to get users’ need to stay vigilant when online. feedback on a service. WorldRemit currently has a 4.1 Keeping these simple tips in mind rating on TrustPilot out of 47,820 reviews. A majority can save you, your business, friends Data from the Communications of users have ranked WorldRemit as excellent (5 star). and loved ones from financial losses Authority of Kenya (CA), the ICT arising from online payment scams. industry regulator there were 4. Stay vigilant and up to date on latest trends The Writer is Director for Europe 110 million cases recorded of Be alert for scams that target consumers after the Middle East & Africa Receive Markets, WorldRemit JUNE 2021 EDITION | CORPORATE WATCH 39
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