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Photo via The Observer

 

Stanbic bank has earmarked Shs 600 billion in school fees loan offers to help financially stressed parents return their children to school. 

In his New Year address last week, President Museveni authorised schools to re-open next week on January 10. Now in response, Stanbic bank says it’s moving to assist the financially-indebted school owners and the education sector in general by coming up with booster plans for the schools.

The bank will write off accumulated interest on loans owed by indebted private schools, officials announced during a press conference on Wednesday in Kampala.

Under the discounted booster finance, schools are able to borrow up to Shs 500 million in collateral-free (unsecured) loans to prepare their institutions for reopening. Parents can also access up to Shs 250 million in unsecured loans processed digitally and dispersed within five minutes at zero processing fee.

Furthermore, the bank revealed that its decision to waive all 2021 unpaid accumulated interest on loans to privately owned schools is a proactive initiative based on the understanding that schools have not been earning and that they need to be supported to regain their ability to settle their liabilities.

Speaking at the press conference, the bank’s chief executive officer Anne Juuko said the "bold decision by management even in the face of uncertainty, speaks to our commitment to walk the talk of our business purpose, which is that we drive Uganda’s growth, as such, we have to exercise our corporate responsibility to the country’s education sector."

Dr Kendrace Turyagenda, the director of education standards in the ministry of Education and Sports lauded Stanbic's corporate leadership and urged other players in the financial sector to emulate them. She noted that the successful reopening of schools will require all stakeholders to play their part.

Uganda’s education sector has more than 28,000 schools, of which 80% are privately-owned. - Moses Mugalu, The Observer

Kakwenza Rukirabashaija was also held and allegedly tortured last year after writing The Greedy Barbarian, a novel about high-level corruption. FILE PHOTO | DAILY MONITOR | NMG

 

The European Union (EU) has joined other rights bodies in demanding the unconditional release of Ugandan novelist and activist Kakwenza Rukirabashaija, held incommunicado for more than a week despite court ordering police to free him.
In a tweet on Wednesday,  Mr Eamon Gilmore, the EU special representative for human rights, urged the authorities in Kampala to release Mr Kakwenza, who was kidnapped by gunmen on December 28 and disappeared until police acknowledged holding him.

“Uganda: I’m alarmed by reports of alleged torture and incommunicado detention of author [Rukirabashaija Kakwenza]. He remains in detention without trial, despite a court order for his unconditional release. I urge Ugandan authorities to uphold rule of law and due process,”  he tweeted.

Mr Gilmore’s concerns were shared by Ms Maria Håkansson, the ambassador of Sweden to Uganda, who expressed “full support” for the EU representative.  

The EU delegation to Uganda, which manages the “EU-Uganda relations, programmes and activities” also supported the call in response.

Mr Gilmore, a former deputy prime minister, and minister of foreign affairs of Ireland is charged with enhancing the presence, effectiveness and visibility of EU human rights policy in the EU external actions.

Police say they are holding Mr Kakwenza on allegations of offensive communication after a series of belittling, derogatory and abusive tweets about President Museveni and his son, Lieutenant General Muhoozi Kainerugaba (Commander of Land Forces). Daily Monitor

  • DP William Ruto and a snippet inside parliament building  KENYANS.CO.KE 
  • Members of Parliament on Wednesday, January 5, passed the Political Parties Amendment Bill despite several attempts by allies of Deputy President William Ruto to stall the process.

    The Bill was passed after amendments by the DP allies failed to sail through before the floor of the house as pro-handshake MPs flexed their muscles in a show of numbers.

    In a statement report to the speaker Justin Muturi, by Narok Woman Representative, Soipan Tuya, the legislator announced that the house had voted to pass the Bill which was in its Third reading stage.

    MPs gather at Deputy President William Ruto's residence in Karen for a press conference
    MPs gather at Deputy President William Ruto's residence in Karen for a press conference
    FILE
     

    "Hon. speaker I beg to report that the Committee of the Whole House has considered the Political Parties (Amendment) Bill (NA Bill No. 56 of 2021) and approved the same with amendments," she stated.

    In a victory speech before the floor of the house, Majority leader Amos Kimunya downplayed accusations that the Bill was only beneficial to Raila’s Azimio la Umoja stating that all political parties would benefit from the Bill. 

    He defended the process in which the Bill was passed amidst the chaos that was witnessed on the floor of the house, insisting that the Bill underwent public participation.

    “There has been lots of talk about public participation about this bill since 2017, 2018, 2019, 2020, 2021, and I really want to thank the people who interacted with the bill,” Kimunya stated.

    Additionally, some of the pro- handshake MPs hit out at the DP for claiming that he had numbers in parliament even as they shot down amendments by Ruto allies.

    Previously, Ruto had stated that he would block the Bill from sailing through the house citing that he had the support of over 150 MPs in parliament.

    “I want to thank the people who helped us pass this bill, I can’t thank those who came here to fight us, we have won today as the people who were together as the Azimio group.

    "We have defeated TangaTanga very badly, they are bruised and I don’t know if they will recover from this,” Suna East MP, Junet Mohamed stated. 

    Following the passing of the Bill by the NA, another showdown between the UDA brigade and the handshake team is expected as the Bill moves to the Senate for debate.

    However, Ruto allies have stated that they will move to court in the event that the Bill sails through the Senate.

    Senate Proceedings
    Senate Proceedings FILE  fight  By Washington Mito, Kenyans.co.ke
Chinese Foreign Minister Wang Yi. (Photo: AFP/ANGELOS TZORTZINIS) 

MOMBASA, Kenya: China's Foreign Minister Wang Yi will tour Beijing-funded infrastructure projects in Kenya and discuss future economic opportunities with President Uhuru Kenyatta during a visit Thursday (Jan 6) to the East African nation.

Wang arrived in the Indian Ocean port city of Mombasa late Wednesday from Eritrea, a closed-off country that was the first stop on his three-nation tour of Africa. 

His visit comes on the heels of a trip to Africa by US Secretary of State Antony Blinken in November that was in part aimed at countering China's growing influence on the continent.

China is Africa's largest trading partner with direct trade worth more than US$200 billion in 2019, according to official Chinese figures.

But it has been often accused of using its creditor status to extract diplomatic and commercial concessions.

China is Kenya's second-largest lender after the World Bank and has funded a number of costly infrastructure projects that have raised concerns about Nairobi taking on more debt than it can afford.

During his visit, Wang will tour the Port of Mombasa where China is constructing a new US$353 million terminal to allow larger oil tankers to berth. 

He will also meet Kenyatta and a team of ministers to discuss agreements on trade and investment, health, security, climate change and green technology transfer.

"The visit gives the two countries an opportunity to enhance bilateral relations by signing agreements," Kenya's foreign ministry said in a statement.

China has rejected suggestions its extensive lending to poorer African countries has trapped cash-strapped governments in debt dependency.

Beijing funded Kenya's most expensive infrastructure project since independence, loaning US$5 billion for the construction of a railway line from Mombasa which opened in 2017.

During a visit to Mombasa in January 2020, Wang described the railway as a "benchmark" of China's Belt and Road Initiative, a trillion-dollar push to improve trade links across the globe by building landmark infrastructure. CNA

 

It will take up to 11 years for the local hotels and bars to recover to pre-Covid 19 levels, the Bar, Hotel and Liquor Traders Association (BAHLITA) now says.

This, as losses in the industry hit an upwards of Sh150 billion, as businesses continue to real from effects of the pandemic.

More than 250,000 jobs have been lost in the industry, a survey by the association indicates, with more than 15,000 establishment still closed since the pandemic hit the country in March 2020.

Speaking during an interview with the Star, BAHLITA secretary general Boniface Gachoka said majority hotels and bars are struggling with loans amid low returns from businesses, despite the slow re-opening of the economy.

“The losses we have incurred as of today cannot be recovered over one or two seasons. It will take longer,” Gachoka said.

Social distancing has cut operating capacity by almost 50 per cent, industry players say.

The festive season mainly Christmas and the New Year however saw hotels and entertainment spots make gains from high number of customers, with a number of them hoping this year will be better.

“It has been a tough year with the lock-downs and restricted operating hours but we still hanged in there.We are hoping 2022 will be better. We have cooperated with the Covid protocols are ready to have our premise used a s a vaccination centre,” said Gerald Lidwaji, manager at V1 Sports Bar and Grill in Lang'ata, Nairobi.

The removal of the nation-wide curfew in October last saw increased operating hours for bars and restaurants, with some having licenses to operate 24 hours.

“The festive season helped restore relations that we had spoiled including sending home of employees. Businesses have been able to recall some of them, clear rent arrears and pay suppliers. Majority are however still operating in losses,” Gachoka said.

There are over 40,000 bars in Nairobi alone.

Government data in collaboration with the Kenya Private Sector Alliance indicates the hospitality and tourism industry was the most hit with 3.1 million jobs affected in the first year of the pandemic.

This includes hotel employees, pubs and restaurants, tour operators, airlines, travel agents and their related suppliers and support services.

About 2.3 million employees were sent home on unpaid leave with most hotel employees on 50 per cent pay as earnings by businesses remained low.

The government was staring at a loss of up to Sh2.5 billion in catering levy alone in the financial year ending June 20.

Meanwhile, BAHLITA has called on the tourism ministry to release the Sh3 billion tourism sector government stimulus fund, aimed to help mitigate the effects of Covid-19 on businesses.

“The terms and conditions are still high, we are yet to fully acccess the funds,” Gachoka said.

Tourism Finance Corporation (TFC) last year had said hotels had started receiving the funds.

The payment is being extended to hoteliers in form of "soft loans" through TFC.

According to the corporation, successful applicants were receiving payments with loans being disbursed in Meru, Trans Nzoia, Uasin Gishu, Kilifi, Mombasa, Kitui and Kisumu counties.

The funding is expected to facilitate the restructuring of business operations and help them cut key operation costs.

60 per cent of the funds were allocated to the coastal region which is the country's leading beach holiday destination with more than 400 star rated high-end hotels and establishments spreading from Diani to Lamu.

40 per cent was allocated to the other regions in the country.

"The disbursement process is ongoing and TFC is working together with the Ministry of Tourism and Wildlife and Ministry of lands to ensure  securitization is hastened,” TFC said.

BAHLITA notes that the sector expects to bring back more than 90,000 people who lost their jobs at the height of the pandemic.

“We are working with banks to support businesses come back which means job opportunities,” Gachoka said. - MARTIN MWITA, The Star

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