Author: NLM Correspondent

BY AGENCIES Chinese companies operating in Kenya created more than 50,000 jobs in 2018, a new report by Chinese companies in Kenya has showed. The report released on Tuesday indicates that there are 106 Chinese companies operating in Kenya, with nearly 95 percent of their workforce being Kenyan. However, the report does not indicate whether the workers were casual labourers or contract workers. Chinese companies, both private and State-owned, have been increasingly eyeing Africa for investment opportunities. Their direct foreign investment into the continent stood at $66.4 billion (Sh6.9 trillion) between 2005 and 2016, the report states. The study found…

By Federico de Nardis While some believe the point is exaggerated, it’s hard to argue against the idea in some basic form that increasingly, companies view their customers as valuable data sources. That data is to be harvested in lieu of, or in addition to, payment for products and services. This thought is made more convincing by the number of businesses that opt to rely on consumer data and achieve spectacular economic outcomes by putting it to use. The reason that consumer data is so valuable, and that companies are so keen to use it (even going so far as…

By David Onjili A 2019 survey conducted by the Federal Sector Deepening (FSD) has revealed that 1 in every 5 Kenyan borrowers defaulted on a loan in the last one year. This grim picture illustrates the harsh economic times that Kenyans have to put up with, whether amongst households, business owners or simply the employed. The survey goes ahead to reveal how a majority of low-income households continue to live in a cycle of debts. Farmers who, for long, have been the sustainers of the country’s economy, have been worst hit too. As at May, the CBK indicates that commercial banks…

By Antony Mutunga In 2007, Kenyans were introduced to Safaricom’s M-Pesa, a mobile money platform that has since revolutionised the way of life for ordinary Kenyans. Initially, the platform was to be used as a platform for microfinance loans using mobile phones. However, after the pilot phase, after discovering that those who took the loans also sent the money to their families in rural areas, Safaricom decided to re-engineer their initial concept. As a result, M-Pesa was revised to focus on remittances mobile money across the country. This was the beginning of a revolution. Through the years, as other mobile…

BY Njuguna Ndung’u Mobile phone-based financial services have produced celebrated economic outcomes for Kenya and other African countries, enabling completely cashless transactions across entire market segments of Kenya’s economy. The need to raise additional tax revenues to finance economic development has motivated governments to begin taxing mobile transactions. As mobile banking now takes hold in Africa, the consequences of this policy are concerning. Raising taxes and broadening tax bases is necessary for governments, but they must also evaluate the negatives of such actions. As tax rates increase beyond the optimal rate, tax revenue declines and the potential for distortion in…

NSE profit falls 82pc on sluggish trade The decline in trading at the Nairobi bourse has hurt earnings of the Nairobi Securities Exchange (NSE) , which plunged 82 percent from Sh133 million as at June 2018 to Sh24 million in the first half of this year. NSE says that bond turnover in the first six months was only Sh78 billion compared to Sh108 billion reported in the same period last year, limiting the firm’s ability to collect fees from transactions. Equity trading levies declined by 28 percent from Sh259 to Sh187 million in six months. “The decline in equity turnover…

When it comes to generating revenue in Africa’s airspace, global carriers are the biggest winners with only two African airlines in the top 10 most lucrative air routes in Africa, a new study finds. Topping the list was Emirates, whose flights to cities including Johannesburg, Cairo, and Cape Town earned it over $830 million between April 2018 and March 2019. British Airways, which runs the most flights in the world’s only billion-dollar route, earned almost half a billion dollars in its annual flights to South Africa’s major urban areas. Connections to West Africa appeared only once in the list with Air France’s…

By NLM writer Kenya eventually made its inaugural crude oil exportation in August, with excitement, flare and pomp. The President of the Republic, top government mandarins and a number of County heads trooped down the coastal city of Mombasa to flag off the 200,000 barrels of the fossil fuel that official figures show will fetch Sh1.2b from a Chinese company, Chemchina, for export to Malaysia. An exuberant, and understandably so, President Kenyatta, speaking at the flag-off, said Kenya has now joined the league of oil exporting nations. Beneath the excitement, however, lies deep-seated treachery in relation to the discovery, exploration…

By Craig McKune and Sam Sole *This article was published in July 2018 by amabhungane.org Tax advisers at law firm ENSafrica sold tycoon Christo Wiese a lemon — one that now implicates him, ENS and Tullow Oil in an alleged multibillion-rand “tax evasion” scheme. This emerges in court papers filed in the Western Cape High Court, in which the SA Revenue Service (Sars) claims that ENS created an aggressive tax structure to help Tullow shift assets worth R3.9bn out of SA, dodging taxes in the process. Sars is now pursuing Wiese, a former ENS executive, and two other people personally for R217m,…

By Victor Adar A couple of months ago, Al Shabaab militants attacked Garissa’s Rural Border Patrol Unit police post in Yumbis. Apart from shooting randomly, the terror gang also razed the camp and brought down a Safaricom mast, cutting off communication. In a separate case, seven police officers died in an Improvised Explosive Device attack at Khorof Harar, in Wajir East sub-county. The same militants are also believed to be behind the abduction of two Cuban doctors – Herrera Correa and Landhi Rodriguez – in Mandera town. Militants might be the biggest enemies of development. With all the tears and mess…