GENERAL NEWS

NAIROBI, Kenya July 6 – Ethiopia is set to close more than 30 embassies across the world, but Kenya will not be affected.

Sources told Capital FM on Tuesday that it is true more than 30 embassies will be closed.

”It is true, but the Ethiopian embassy in Kenya will not be closed,” a source said, “Ethiopia considers Kenya a valuable partner and will not think of closing its embassy in Nairobi.”

Kenya has maintained very close ties with Ethiopia with increased businesses being opened in both countries, a confirmation of the growing ties between the two countries.

The latest is the award of a telecommunications license to Safaricom to operate in Ethiopia last month.

Ethiopia granted an operating license to a consortium of firms including Kenya’s Safaricom.

The consortium bid $850 million for the licence, according to senior finance ministry adviser Brook Taye.

The shake-up of the potentially lucrative sector — currently dominated by state-owned Ethio Telecom — is a cornerstone of Prime Minister Abiy Ahmed’s economic reform agenda.

Abiy’s government planned to award two new telecoms licences, but in late April it announced it had received only two bids after some firms that initially expressed interest — including France’s Orange and the UAE’s Etisalat — opted not to submit.

The second bid of $600 million from South Africa’s MTN was “not enough” and was therefore “rejected”, Brook said.

Balcha Reba, director general of the Ethiopian Communications Authority, told AFP that the second licence would soon be re-tendered.

The licences are expected to bring an infusion of cash, jobs and infrastructure investment.

The Safaricom-led consortium is set to create up to 1.5 million new jobs and bring $8.5 billion in investment over 10 years, Brook said.

It will provide 4G and 5G internet services, and by 2023 a low-orbit satellite will be put in place to provide nationwide 4G coverage, Brook added.

Moscow (AFP), Jul 6 – A wide-ranging search was underway Tuesday, hours after a passenger plane carrying 28 people disappeared in Russia’s remote Far Eastern peninsula of Kamchatka.

The An-26 was flying from Kamchatka’s main city of Petropavlovsk-Kamchatsky to the coastal town of Palana when it disappeared at 2:40 pm (0240 GMT), Valentina Glazova, a spokeswoman for the local transport prosecutor’s office, told AFP.

“Search and rescue efforts are underway,” she said. “All that is known at this time, what has been possible to establish, is that communication with the plane was interrupted and it did not land.”

She said the plane had been operated by a local aviation company in Kamchatka, a vast peninsula on Russia’s Pacific coast popular with adventure tourists for its abundant wildlife and live volcanoes.

Russian news agencies quoted local officials as saying most of the passengers were from Palana — which has a population of about 3,000 — including four local government officials and the town’s head Olga Mokhiryova.

– ‘Difficult’ search conditions –

Kamchatka’s government published a list of 28 people who were on board the plane, including Mokhiryova and one child born in 2014.

Map showing Russia’s Kamchatka peninsula where a plane is missing on July 6. © AFP

Officials said that communication with the plane had been lost nine kilometres (5.5 miles) from Palana’s airport and 10 minutes before its scheduled landing time.

Citing emergency ministry sources, news agencies reported that a search for the plane was underway with a radius of 15-25 kilometres (nine-15 miles) around the airport, with a focus on the Okhotsk Sea.

“There is objective evidence that the plane crashed and fell into the sea,” a source told news agency TASS.

Helicopters and an Il-38 maritime patrol aircraft were searching the area as of 9:00 pm (0900 GMT), news agencies reported.

A source in the Pacific Fleet Air Force was cited by news agency RIA Novosti as saying that the search was hindered by “difficult” weather conditions.

The general director of the Kamchatka Aviation Enterprise, Alexei Khrabrov, said the search might have to continue in the morning.

“We will search until it gets dark,” he was cited by TASS as saying.

The Kamchatka government said the peninsula has five An-26 planes servicing remote areas. The regional transport ministry and the local aviation company said the plane — built in 1982 — was in good condition and had passed safety checks.

– Soviet-era planes –

An-26 planes, which were manufactured from 1969 until 1986 during the Soviet era and are still used throughout the former USSR for civilian and military transport, have been involved in a number of accidents in recent years.

Most recently four people died in March when an An-26 plane used by ex-Soviet Kazakhstan’s military crashed while landing at an airport in the country’s largest city of Almaty.

Two recent Russian military accidents have also involved An-26 aircraft, resulting in the deaths of 40 people.

While Russia has improved its air traffic safety record in recent years, poor aircraft maintenance and lax safety standards still persist.

Flying in Russia can also be dangerous in the vast country’s isolated regions with difficult weather conditions such as the Arctic and the Far East.

Palana last saw an aircraft go down when an An-28 passenger plane struck trees during a premature descent in September 2012, killing 10 people.

The last major passenger plane accident in Russia took place in May 2019, when a Sukhoi Superjet belonging to the flag carrier airline Aeroflot crash-landed and caught fire on the runway of a Moscow airport, killing 41 people.

Nairobi — Business conditions in Kenya’s private sector continue to improve for a second month in a row.

This is according to Stanbic Bank’s Purchasing Managers’ Index (PMI) which says improvement in June was supported by further rises in output and new orders.

According to the survey, a sustained upturn in new orders provided fresh capacity pressures, leading to the first

increase in outstanding work in four months.

Firms subsequently added to their workforce numbers, although the rate of job creation slowed from the previous month and was marginal.

Purchasing of inputs also expanded during June, with firms often reporting efforts to build inventories in anticipation of higher new order inflows.

Meanwhile, suppliers’ delivery times were shortened to the greatest extents since last October.

Hiring activity also continued as firms faced a renewed increase in backlogs, while there were additional efforts to build inventories ahead of predicted sales growth.

However, concerns about further COVID-19 restrictions meant that the business outlook slipped to the second-weakest in the series history.

It is against this backdrop that the headline PMI fell from 52.5 in May to 51 in June, indicating a sustained, but weaker, expansion in the Kenyan private sector economy.

Commenting on the survey findings, Kuria Kamau from Stanbic Bank said the surveyed firms’ outlook for the economy over the next year worsened after more stringent public health restrictions were imposed on 13 counties.

“The pace of the recovery slowed in June following the strong improvement witnessed in May when some of the stringent public health restrictions were lifted. Both domestic and export demand increased on account of higher customer numbers and increased cash circulation; but the increase was at a slower rate than in May. To meet the rising demand, firms increased their purchases, staff costs and output but at a slower rate than demand which resulted in an increase in work backlogs,” he said.

Nairobi — Kenya Lionesses head coach Felix Oloo says his side will count on the character of the players as they prepare to face off in a tough pool at the Tokyo Olympic Games which begin at the end of the month.

The Lionesses have been drawn against New Zealand, Russia and Great Britain.

“I am very excited to play against the greatest teams in the world at the Olympics, much as we are the underdogs, we plan to play to win. We shall give our best and let character win the day when we take on to the pitch. We ask our fans back home to support us throughout the tournament,” the tactician stated.

Oloo has named his final team of 13, skippered by Philadelphia Olando who will be headed for her second Olympic Games.

Sinaida Aura who earlier in the year rescinded her decision to retire from the game has also been included in the final travelling team to Tokyo.

“We based our selection criteria on attendance, discipline, medical assessment, player fitness as well as understanding of the game and positional roles each player has. This is what guided our selection of the final 13 players,” said Oloo.

He adds; “We also have a few players missed out on the selection because they are yet to recover from injuries picked up in previous tournaments.”

Lionesses Olympic Squad:

Philadelphia Olando (Northern Suburbs, Captain),Sheila Chajira (Homeboyz), Stellah Wafula (Impala Saracens), Christabel Lindo (Impala Saracens), Leah Wambui (Homeboyz), Judith Auma (Homeboyz), Vivian Akumu (Top Fry Nakuru), Sarah Oluche (Mwamba), Grace Adhiambo (Top Fry Nakuru), Cynthia Atieno (Homeboyz), Janet Okello (Mwamba), Sinaida Aura (Northern Suburbs), Diana Awino (Impala)

NON TRAVELLING RESERVE: Enid Ouma (Homeboyz)

MANAGEMENT: Felix Oloo (Coach), Samuel Njogu (Assistant Coach), Ben Mahinda (Medic), Camilyne Oyuayo (Manager)

The founder and head of Christ of All People Church Bishop Eliud Nyongesa was laid to rest at a church compound amid opposition from one of his wives.

Attempts by Rosebella Wafula to stop the burial and cart away the casket hit a snag when police and church members blocked her.

Drama unfolded at the church’s headquarters in Kiminini Trans-Nzoia when Rosebella and kin arrived from Bukembe in Bungoma County to pick the body but found some church members busy interring the body inside the compound.

Wails and calls from Rosebella and her children to stop the burial failed to bear fruits as members flushed out a written will by the deceased sanctioning his rest place at the church.

Police led by Kiminini OCS Suleiman Abdullah and assistant Chief Sam Khaemba restrained the family from interfering from the burial ceremony, advising the aggrieved party to seek legal intervention.

“For now allow the burial to go on as planned because there are relevant documents sanctioning the burial in the church premise and if you have issues seek legal redress if you want the body exhumed,” Abdullah told Rosebella.

Another woman, believed to be the deceased wife, watched as the drama unfolded.

Rosebella protested that the deceased had abandoned her and the children after he founded the church.

“Despite abandoning the family, we need to rest his body at home. We will move to court to have the body exhumed,” vowed Rosebella as officers ordered the family out of the church compound to avoid attracting a crowd.

According to a church member, Justus Wekesa, Bishop Nyongesa died of Covid-19 related complications.

Wekesa told The Standard that to the bishop had wished to be buried in the compound and his grave remain a symbol of the church.

“He founded the church 15 years ago. We have 33 branches in Kenya and Uganda, and he wished to be buried in the church’s headquarters compound to remain as a symbol of the church,” said Wekesa.

Some followers interviewed described bishop Nyongesa as a prophet and spiritual healer.

“We referred to him as baba. He was a prophet and had healed many people through prayers,” said Derrick Wafula.

Many claimed that the deceased helped many childless couples that were able to get children through his prayers. 

NAIROBI, Kenya, Jul 5- Copia, a fast-growing mobile commerce platform built to serve middle to low-income African consumers, has expanded operations to Uganda.

Copia Uganda is built on the company’s success in its initial market Kenya where Copia serves more than 1 million customers and is doubling in size every year.

The expansion will bring high-quality and affordable products to millions of middle-class Ugandans, regardless of location, technology access, or connection status.

According to a 2016/17 study by the Economic Policy Research Centre, Uganda has experienced an upsurge in the middle class. A comparison of previous data revealed that the population doubled from 3.7 million to 8.3 million between 2013 and 2017.

Despite this population growth and the expected increase in purchasing power, the country’s retail sector is still majorly supported by the informal retail sector, similar to most of Sub-saharan Africa. Copia’s mobile commerce provides the needed convenient access to formal retail shopping for the middle- to the low-income population in the country.

The timing is fortunate for Ugandans given the vast need for Copia’s mobile commerce service, deemed an essential business that can continue to operate day and night despite the worsening pandemic.

People can access all the goods they need to run their households while remaining safe and healthy, away from large towns and markets.

A 2020 report by the United Nations Development Programme (UNDP) on the socio-economic impact of COVID-19 in Uganda shows a 50percent decline in physical visits to retail stores and a 36percent decline in visits to groceries and pharmacies due to restricted in-person business operations.

While nearly 20 million Ugandans have mobile subscriptions  (44%percentout of a total population of 47 million) only 12 million use the internet, which leaves a large gap in the number of people enabled for the digital economy.

While Copia is a technology-enabled company through and through, it does not require customers to be tech-savvy.  The system is flexible to allow people to order anything they need through whatever medium best suits them, whether it be a phone call, text message, app or through a local agent.

“Uganda has one of the fastest-growing middle classes in the world with a hard-working population and a dynamic entrepreneurial culture. Copia is designed specifically to serve this high growth but underserved consumer base who want access to high-quality products at the best prices, ” said Tracey Turner, Copia Global Founder and Chair.

“Harnessing mobile technologies, a network of local agents and logistics technology, Copia can transform middle class and emerging middle-class Africans into empowered global customers.  Our expansion into Uganda is the next step in fulfilling that mission, ”  she said.

Established in 2013, Copia’s model leverages a network of digitally-enabled, locally based agents who operate as order and delivery points to meet consumers where they are, online or offline.

Copia agents are existing trusted shopkeepers like a local grocer or butcher, where customers can select and pay for products chosen from a Copia catalogue.

After the order is placed, Copia sends an SMS order confirmation to both the agent and the customer and in 2 days, Copia delivers the products to the agent for customer pick up.  Through the creation of its agent network, Copia supports the resilience of thousands of small and medium enterprises in Uganda.

Tim Steel, Copia Global Chief Executive Officer, said: “ We are mindful of the challenges facing consumers in remote areas and we aim to be part of the solution to connect them to quality and affordable products. Over the last seven years, we have completed more than five million deliveries and served more than one million customers in Kenya and we are eager to expand our success story to the Uganda market.”

Over the coming years, Copia plans to expand its mobile commerce platform and logistics network across other regions of Africa.

By JAMES ANYANZWA

Nation Media Group (NMG) has kicked off a debut stock buyback plan in East and Central Africa by setting out to buy back 10 percent (20.7 million shares) of its issued and paid-up share capital in less than three months. The company, which is listed on the Nairobi Securities Exchange (NSE), becomes the first corporate to implement the share buyback option after the provision was incorporated in the Companies Act, 2015.

Corporate share buyback is repurchasing of shares by the company that issued them. 

This concept is common in the United States and Europe, and Kenya was looking to be among the pioneers of this financial engineering in East and Central Africa.

Under this arrangement, an investor who chooses to sell shares back to the company benefits from a ready buyer willing to take the stocks at a premium. In the US, it is estimated that over 80 percent of the 500 companies constituting the S&P stock index buy back shares.

On June 28, NMG, with operations in Kenya, Uganda, Tanzania, Rwanda and Burundi started buying back its shares through the NSE at a price of Ksh25 ($0.23) per share after the shareholders approved the transaction on June 25. The offer will close on September 24 or earlier if the company acquires 20,739,652 shares ahead of the deadline.

“Through this buyback we believe shareholders will realise value and cash in at a reasonable price,” Wilfred Kiboro, the Group’s chairman said last week.

“Last year was a difficult year and NMG share price went down from about Ksh40 ($0.37) at close of 2019 to Ksh16 at the end of 2020. There was a lot of volatility and the few shareholders who wanted to sell were not getting value for their investments,” added Mr Kiboro.

NMG share has been performing well at the Nairobi bourse since announcement of the buyback programme, gaining 44 percent over the past one month to close trading at Ksh25 ($0.23) June 29.

“The shares we buy back could help us in the future in mergers and acquisitions or share swaps. We will be keeping them as treasury and they will not attract dividends so more value will accrue to the remaining shareholders,” Mr Kiboro added.

According to Kiboro, NMG share price at the NSE has been undervalued and has not reflected the media house’s performance and long-term strategy. East Africa’s largest media company has rolled out a two-pronged approach to sustain growth that includes renewed digital presence with the launch of Nation. Africa and a revamp of its print business.

“We are going to go back to investor briefings to engage shareholders to explain the business model and strategy for the next four to five years so they make informed decisions,” he said.

The government has embarked on construction of a Sh1.4 billion Convention Center in Kisumu to host over 5, 000 delegates during the Afri-Cities conference to be held in the lake side city in April next year.

The facility comprising the main auditorium, 15 breakaway rooms, 60 exhibition spaces, outdoor amphitheatre, VIP lounge, cultural centre, health centre, press rooms, picnic area and a children’s park is expected to be completed in eight months.

Devolution Cabinet Secretary Eugene Wamalwa said the facility which is the second one of its kind in the country after Kenyatta International Convention Centre (KICC) in Nairobi was set to revolutionize conference tourism within the lake region.

Speaking at Mamboleo Show Ground in Kisumu during the ground breaking ceremony, Wamalwa said the iconic facility whose design is deeply rooted in the Luo Culture shall serve Kisumu and the Lake region beyond the Afri-Cities conference.

“This facility will not only serve the Lake region counties but with the revival of lake transport we are looking to have our brothers from Uganda and Tanzania bring meetings here,” he said.

The government, he added, was committed to making the Afri-Cities conference slated for April 26-30, 2022 a success adding that various other projects were on course in the area to ensure that it runs smoothly.

He pointed out the upgrading of Kisumu International Airport to accommodate the high number of visitors expected in the city to attend the conference.

A road linking the airport to the Convention Center through Uzima University, he added, was also being upgraded to bitumen standard to facilitate free flow of guests.

The Ministry of Tourism, he said has already mapped out hotels and accommodation facilities within Kisumu and neighbouring counties where the guests shall stay during the five days event.

So far, he said 8, 000 beds have been secured urging investors to take advantage of the opportunity and put up more facilities ahead of the conference.

The government, he disclosed, plans to take advantage of the conference to demonstrate the success of devolution and at the same time showcase investment opportunities in the lake region.

“So many people are asking how we managed to set up 47 county governments within eight years. We intend to use this opportunity to showcase the importance of sub-national governments in development,” he said.

Devolution Principal Secretary (PS) Julius Korir said Kenya has already paid 2.5 million Euros to United Cities and Local Governments of Africa (UCLGA), the franchise holders for the event.

Adequate measures, he said, have been put in place to ensure that the conference is held in strict adherence of the Covid-19 protocols.

All guests, he said, shall be required to produce Covid-19 negative certificates adding that the health center at the convention facility shall be equipped with the necessary infrastructure to address any cases that may arise.

Kisumu Governor Prof. Peter Anyang Nyong’o lauded the national government for investing in the conference facility.

The facility, he said, is expected to attract business travelers and meetings from far and wide as Kisumu repositions itself as the regional economic hub.

“This is not a Kisumu affair because it is going to serve all the counties within the lake region and across the borders,” he said.

Kisumu, he added, was prepared for the event adding that the successful Madaraka Day celebration held in the area was a demonstration of the city’s readiness to host big events.

Director of Urban Development in the Ministry of Housing Charles K’Onyango who designed the convention center said the facility which will be handed over to the County government of Kisumu has a huge potential of generating on source revenue.

Projections, he said indicate that the facility once fully operational has the potential of generating up to Sh1.6 billion over six years.

Afri-cities is the United Cities and Local Governments of Africa’s (UCLGA) flagship pan-African event that is held every three years in one of the five regions of Africa.

The event attracts communities and local authorities in African countries, as well as financial institutions, civil society groups and development partners at continental and international level.

By Chris Mahandara and Meredith Onyango