Interior Cabinet Secretary Kithure Kindiki before the National Assembly’s Departmental Committee on Administration and Internal Security on June 20, 2023.
When Interior Cabinet Secretary, Kithure Kindiki, declared the suspension of Worldcoin's operations in Kenya on Wednesday, August 2, very few people, if any, envisaged the global repercussions the move would have.
The directive issued by the Cabinet Secretary to halt Worldcoin's activities sent shockwaves through the investor community, resulting in a drastic 70 per cent decline in the company's valuation.
Kenya's intervention served as a catalyst, exposing the company's dubious practices. Investigations by the Office of the Data Protection Commissioner (ODPC) revealed Worldcoin's deliberate disregard for Kenya's directives to cease their iris scanning operations.
In the aftermath of this damning disclosure, Worldcoin finds itself grappling to regain stability. Unless prompt measures are undertaken to counteract the company's plummeting valuation, the company is staring at the potential risk of sinking into negative territory.
Global industry observers have explained that investors are now steering clear of Worldcoin due to its data collection and storage practices.
In the wake of the disclosures made by the Interior Ministry and the Data Protection Commissioner's office, Worldcoin now finds itself under investigation by regulatory bodies in multiple countries.
Founded by Sam Altman of OpenAI, the creator of ChatGPT, Worldcoin had initially aspired to assert its dominance within the cryptocurrency market.
The bubble of Worldcoin's aspirations was abruptly burst by Kenya, which emerged as the first nation to raise concerns about the company's employment of iris scanning for biometric identification, a practice declared to be in direct violation of data protection laws.
Office of the Data Protection Commissioner (ODPC) in April 2022 started investigating the company and found out that its Data Protection Impact Assessment - a legal requirement for all agencies collecting and storing data - was unacceptable.
As such, the company was immediately ordered to stop its data collection activities in the country.
The company’s activities gained national attention when thousands of Kenyans turned up at Kenyatta International Convention Centre (KICC) on August 1, to have their iris scanned in exchange for a Ksh7,000 token.
“The government has suspended forthwith, activities of Worldcoin and any other entity that may be similarly engaging the people of Kenya until relevant public agencies certify the absence of any risks to the general public whatsoever,” Kindiki stated while shutting down the company's operations. By Kioko Nyamasyo, Kenyans.co.ke
Sadiq Khan was forced to distance himself from a claim on his website that a picture of a young white family “does not represent real Londoners”.
The Labour London mayor was criticised over the message, which appeared as part of a guide to his and the Greater London Authority’s (GLA) brand.
The guide opened with the words: “A City for All Londoners”, and promised to appeal to all ages, genders, sexual orientations and family make-ups.
But a picture of a couple and their two children walking along the Thames, with parliament in the background, was highlighted as an example of pictures not to use. A label on the picture read: “Doesn’t represent real Londoners”.
Mr Khan said the caption was added by a staff member “in error”, and does not reflect his view or the view of the GLA.
“The document has now been taken off the GLA website and is being reviewed to ensure the language and guidance is appropriate,” a spokesman for the mayor said.
Mr Khan’s rival in next year’s mayoral race, Tory candidate Suzan Hall, called for the mayor to apologise.
She told the Mail on Sunday, which exposed the guidance: “All Londoners are real Londoners, no matter their ethnicity, and Sadiq Khan needs to apologise and stop these desperate, politically-motivated attempts to divide people.”
Mr Khan’s spokesman fired back at Mr Anderson’s criticism over the Blackwall tunnel charge – pointing out that it was decided by his predecessor Boris Johnson.
“The introduction of a toll on the Blackwall Tunnel was confirmed by Boris Johnson when he was the mayor in 2012,” they said. The Independent
The DRI officers interrogated the carrier after recovering 1,496 gm of cocaine from him and laid a trap to arrest the Ugandan woman who was supposed to receive the contraband in Navi Mumbai.
Examination of the luggage resulted in the recovery of 1,496 gm of white powder, purported to be cocaine, with a value of around Rs 15 crore in the illicit market, said officials.
Listen to this article
The Directorate of Revenue Intelligence (DRI) has arrested a man for allegedly smuggling cocaine worth Rs 15 crore to Mumbai from Ethiopia by concealing it in a duffle bag. The DRI also arrested a Ugandan woman who was supposed to accept delivery of the said contraband in Navi Mumbai.
The DRI said Sunday that based on intelligence inputs, Satly Thomas, 44, hailing from Kerala, who came via the flight ET 640 from Addis Ababa to Mumbai, was apprehended at the Chhatrapati Shivaji Maharaj International Airport Friday.
Examination of his luggage resulted in the recovery of 1,496 gm of white powder, purported to be cocaine, with a value of around Rs 15 crore in the illicit market, said officials.
Based on sustained interrogation of the passenger and surveillance, the DRI officers laid a trap and caught the recipient, Nakirijja Alice, 37, who came to collect the drugs at Vashi in Navi Mumbai.
A source said Thomas was promised a commission of Rs 1.5 lakh. The source added that he was also accused of smuggling drugs and had travelled to Ethiopia, Malawi, Zimbabwe, South Africa for similar purposes. He has so far earned more than Rs 5 lakh from this work, the source said. By The Express News Service
THE European Union Observer Mission has deployed 44 additional short-term observers to all the country’s 10 provinces, bringing the total number of European Union Observers deployed outside Harare to 90 ahead of the general elections this Wednesday.
The European Union Observer Mission this Sunday made its final deployment of observers across the country.
The European Union Chief Observer, Mr Fabio Castaldo briefed the media in Harare this Sunday during the deployment process.
“The EU observer mission is impartial, its mandate is to observe all aspects of the electoral process and assess the extent to which the elections comply with international and regional commitments for elections as well as with the laws of Zimbabwe.
Everyone on the mission is experienced and understands that they are here to observe and not interfere with the process. They are here to watch and not to supervise. Although election day is an important element of our observation, the mission in Zimbabwe is to assess all aspects of the elections over the entire duration of the process,” said Mr Castaldo.
The European Union Observer Mission will present its initial findings and conclusions of the mission two days after the polls and will remain in the country to observe the post-electoral environment.
Several missions, including the SADC, African Union and Commonwealth observer missions, are in the country to observe the general elections. ZBC News
A family enjoy dinner in one of the high-end hotels within Nairobi. [Patrick Vidija, Standard]
The exponential growth of Airbnb in major towns around the country is shaking up the Kenyan hospitality industry as it devours a share of traditional hotels’ revenues.
The proliferation of the service has also seen a significant drop in room prices and occupancy rates, a spot check by Weekend in Business shows.
Over the past 10 years, Airbnb has grown into the world’s largest online marketplace for accommodation and now qualifies as a disruptive innovation.
And just as in the rest of the world, the hospitality industry in Kenya is slowly experiencing a shift as hotels and lodgings lose out to the rising popularity of Airbnb services.
Since its launch in 2008, Airbnb has become popular among travellers seeking affordable accommodation, convenient location and household amenities.
In Nyeri County, for instance, iconic hotels including the Outspan, The White Rhino, Treetops and the Greenhill Hotel, which offer traditional accommodation, are on the verge of closing down as Airbnbs eat into their market share.
According to the Nyeri-based owner of Hampton’s Apartment, Linet Murage, holiday homes have become popular, threatening the existence of traditional hotels.
She says Airbnbs have an edge over these hotels in that prices are negotiable, allowing clients to stay for extended periods. “I decided to venture into the Airbnb business after noting that holiday homes were in high demand in Nyeri,” says Ms Murage.
She ventured into the business in 2021 by converting her house into a holiday home to compete with surrounding hotels.
“It was not an easy road. In 2019, I was a casual labourer but started saving from the little I earned. I invested the savings in furnishing and decorating my house. After the pandemic, I discovered that those looking for accommodation had started shifting to other towns, where there were holiday homes,” says Ms Murage.
She later rented the house next door after her neighbour moved out and converted it into an Airbnb too. Studies show the Airbnb business model has flourished for many reasons.
Customers like having access to an enormous supply of properties and rooms at a wide variety of prices, often more competitive than hotels, and Airbnb collects commissions on every booking.
In addition, players say, the company does not follow conventional rules. “Airbnb does not ensure the security of guests, it’s not taxed in some jurisdictions, and it has the flexibility to add new supply because of a lack of regulation,” says one study into the business model.
This has benefitted entrepreneurs like Ms Murage, who is capitalising on the boom.
The beauty of the Airbnb concept is that one does not have to legally own the building, with many operators hiring out rented space, which they furnish to meet the required standards.
And with guests increasingly opting to stay in Airbnb accommodations, competition between traditional hotels and Airbnb is boiling over.
“The industry has become very competitive. To offer the best customer service, I offer breakfast, laundry, toiletries and a chef on request. If a client gets the best service, they will refer you to other clients. I only charge Sh3,000 per night and allow only two visitors in one room,” she says.
Cause disruption
Ms Murage sees holiday homes as the future of accommodation and dreams of expanding her business.
And she has every reason to be optimistic. A recent study showed that the rise in popularity of Airbnb was always going to cause disruption to the established Kenyan hotel industry, much in the same way that Uber upset traditional cab companies.
This disruption can be understood as part of a wider move towards disruptive technologies and online community marketplaces, experts say.
The desire for homeowners to earn an income by sharing their homes has unlocked a hitherto underutilised asset through the Airbnb platform.
“Many hotels offer very poor services, while an Airbnb offers clients a totally different experience. Home sharing platforms are likely to gain more ground over time as travellers become increasingly aware of their benefits,” says Ms Murage.
She added that landlords who own holiday homes are ready to comply with the Kenya Revenue Authority (KRA) and ensure their businesses are registered.
“People are embracing Airbnb. It is a good business to venture into, let all those willing to join get their business registered to avoid giving room to conmen,” she said.
James Mwangi, a lodging owner in Nyeri, said since the launch of Airbnb in the town, his business has taken a considerable hit. “We used to get many clients, but they now prefer to book Airbnbs located outside the town for a quiet night’s rest, leaving our rooms empty,” says Mr Mwangi.
He now plans to convert his rooms into Airbnbs to stay in business. One of the more obvious ways hotels have been responding to the competitive threat of Airbnb has been via their pricing strategies.
While it’s not ideal, it’s still preferable for a hotel to have some minimal level of occupancy rates at discounted prices compared to managing an empty hotel.
Hotels are also listing themselves on the Airbnb platforms to tap short-term clients.
They are also leveraging amenities like swimming pools, steam rooms, gyms, ample parking and adequate security, which Airbnbs lack, to counter the new wave of competition from the platform. By Amos Kiarie and Brian Ngugi, The Standard
Informer East Africa is a UK based diaspora Newspaper. It is a unique platform connecting East Africans at home and abroad through news dissemination. It is a forum to learn together, grow together and get entertained at the same time.
To advertise events or products, get in touch by info [at] informereastafrica [dot] com or call +447957636854. If you have an issue or a story, get in touch with the editor through editor[at] informereastafrica [dot] com or call +447886544135.
We also accept donations from our supporters. Please click on "donate". Your donations will go along way in supporting the newspaper.
