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  • Central Bank of Kenya (CBK) building in Nairobi. SIMON KIRAGU KENYANS.CO.KE 
 
  • Ksh1.07 trillion from the pension fund was taken up by the national government as part of its domestic debt stock according to the latest Central Bank of Kenya (CBK) weekly bulletin. 

    According to the report published on March 26, the pensions fund is the government's second biggest lender contributing 30.34% of the total domestic debt. The gross domestic debt currently stands at Ksh3.5 trillion.

    Notably, the latest CBK bulletin also revealed that there has been an overall trend of a drop in oil prices around the world, despite the current fuel prices in the country.

    "International oil prices continued to decline during the week on account of threat of new lockdowns amid
    new Covid-19 infections. Murban oil price declined to $61.61 (Approximately Ksh6,715) per barrel on March 25, from  $66.03 ((Approximately Ksh7,200)  per barrel on March 18," reads an excerpt from the bulletin.

    A petrol station attendant pumping fuel into a car.
    A petrol station attendant pumping fuel into a car.

    In the worldwide oil industry, an oil barrel is defined as 42 US gallons, which is about 159 litres. This translates to approximately $0.42 per litre or Ksh45.80.

    Commercial banks maintained their position as the government's biggest lender contributing 52.98% of the total domestic debt as of March 2021. 

    The implication is that the government and citizens are competing for loans from the same commercial banks leading to the crowding-out effect. 

    Commercial banks prefer to lend to the government since they view it as a low-risk investor as compared to the citizens.

    "The Treasury bills auction of March 25, received bids totalling Ksh 22.97 billion against an advertised amount of Ksh 24.0 billion, representing a performance of 95.7%," the report reads in part.

    Pension funds in Kenya hold assets under management at Ksh1.3 trillion, a ratio of 13.4% to gross domestic product (GDP). 

    These cover about 20% of the working population with about 40% invested in securities (Treasury bills and bonds) and earning about Kshh60 billion annually in interest income. 

    Pension funds generally have longer-term liabilities payable over many years into the future.

    On October 21, 2020, former U.S. Ambassador to Kenya Kyle McCarter, together with representatives from the World Bank and American advisory firm MiDA Advisors, launched the Kenya Pension Fund Investment Consortium (KEPFIC).  

    He went on to detail how KEPFIC would enable pension schemes to jointly make sustainable long-term infrastructure and alternative asset investments in the region.

    “The United States Government is pleased to support a Kenyan institution that presents an innovative approach to infrastructure investment in Kenya as it follows recent changes to the Retirement Benefits Authority guidelines allowing pension funds in Kenya to invest up to 10% of their assets into infrastructure, potentially unlocking over Ksh100 billion,” he stated at the time.  

    Kenya’s annual infrastructure funding gap currently stands at more than Ksh 200 billion, presenting private investors with numerous opportunities in sectors including power, transportation and urban development.

    Pension funds are the ideal funding partners for infrastructure projects due to their longer return on investment horizons and significant role in financing infrastructure projects in many countries, including the United States. 

    Former US Ambassador to Kenya Kyle McCarter launches the Kenya Pension Fund Investment Consortium on October 21, 2020.
    Former US Ambassador to Kenya Kyle McCarter launches the Kenya Pension Fund Investment Consortium on October 21, 2020. FILE   Kenyans.co.ke
 
Kenya's trade CS Betty Maina with British High Commissioner to Kenya Jane Marriott

NAIROBI, KENYA: Kenya’s Agriculture Sector Network (ASNET) has welcomed a new trade deal between Kenya and United Kingdom opening markets for traders in the two countries.

In a statement, the Network noted that the pact will facilitate the continued duty and quota-free access of Kenyan exports to the UK as they do in the EU market bloc, and secure foreign exchange earnings.

The sector acknowledges the agreement will enhance the competitiveness of Kenya’s leading agricultural exports namely cut flowers, fresh produce, coffee and tea even as the sector look forward to the expansion of the list to include other products.

Agriculture plays a leading role in Kenya’s economy and is a critical pillar to the country’s development strategy.

It is estimated that more than 75 per cent of Kenyans’ livelihoods depend on the sector, contributes about 33 per cent of the Gross Domestic Product (GDP) and employs more than 40 per cent of the total population. This calls for facilitation in all the key areas to enable the sector to thrive.

 

Since the vast majority of Kenya’s poor depend on smallholder agriculture increasing their productivity can contribute immensely to improving food security, increasing rural incomes, lowering poverty levels and growing the economy.

The contentious trade deal between Kenya and the United Kingdom (UK) is legally in force after a year of negotiations and parliamentary approval by both countries.

The agreement became operational in late March this year after top officials from the two countries signed and exchanged instruments of ratification.

This means firms exporting to the UK will now benefit from duty-free, quota-free access following the United Kingdom’s transition period with the European Union on January 1, 2021.

“The Kenya-UK Economic Partnership Agreement allows Kenya access to the UK market free of duty and quota restrictions and we are glad to know it is a contractual agreement,” said Industrialisation, Trade and Enterprise Development Cabinet Secretary Betty Maina.

CS Maina and UK Prime Minister’s Trade Envoy to Kenya Theo Clarke signed and exchanged the instruments ratifying the agreement.

The pact allows for a phased and gradual liberalisation of the tariffs on some imports from the UK. It is not a sweeter deal but is the same as the one signed and ratified by the European Union and Kenya in 2016. The UK deal gives a phased liberalisation for some goods for more than 25 years.

Some tariffs start to reduce after seven years. Some will not be effective until 12 years and will continue reducing slowly until 2046. By Fredrick Obuya, The Standard
 

  • Kenyan President Uhuru Kenyatta (Left) and Chinese President Xi Jinping prior to a bilateral meeting in Beijing, China in 2018.
    PSCU 
  • The Kenyan government has defended China against accusations made by the United States government, claiming that the Asian nation planned to use 5G technology to spy on other countries. 

    ICT CS Joe Mucheru dismissed the claims by the Americans as sideshow politics that had nothing to do with the roll out of 5G network which has already been adopted in Kenya. 

    Kenya’s telecommunication service provider, Safaricom, launched its fifth mobile (5G) network services in the country on Thursday, March 25.

    The US government had pressured countries to ditch the use of Huawei, a Chinese company, in the supply of equipment relating to 5G technology. 

    Safaricom Headquarters.
    Safaricom Headquarters in Westlands, Nairobi. THE STANDARD

    “Of course, as government, we have been aware of some those questions about suppliers and technology, but those are just more political postures as opposed to the high test of the technology. 

    “We have been working with these partners for a long time and we cannot say we have had any challenges or questions about the security of the technology,” Mucheru stated.  

    Amid pressure from the US government, the United Kingdom (UK) banned the use of Huawei 5G network in the country. Other countries that put a stop to the use of the network are Australia and France.

    The Kenyan government, however, defended the decision to stick with China citing due diligence and a long productive partnership.

    Speaking during the launch of the network, the ICT CS explained that the government had vetted the networks launched in the country and said they had met the set standards.

    The launch will target major urban centers with increased data traffic such as Nairobi and the Western region including Kisumu and Bungoma before scaling up the coverage to other major towns in the coming months.

    Kenya has in the past two decades embraced China as a strategic economic partner, after decades of close ties with the West including the USA and the UK. 

    The trade ties with the Chinese have been attributed to the lack of strings attached to their foreign assistance, unlike western nations which have been accused of micromanaging African countries by setting conditions such as the expansion of democracy before offering trade deals or foreign aid. 

    Huawei 5g
    Promotional graphics of Huawei 5G  FILE Kenyans.co.ke

 

Juba, Mar 29 (Prensa Latina) A total of 14 civilians were killed and seven wounded in the southern Sudanese province of Eastern Equatoria in an attack perpetrated by unidentified gunmen, a government source reported on Monday.
The territory's press secretary, Aliandro Lotok, said that following the action in Budi county, police authorities launched a raid in the area to catch the perpetrators.

The attack on civilians comes a week after five people were killed by unidentified elements in Lowaereng locality, Kapoeta South County.

South Sudan, considered the world's youngest country when it broke away in 2011 from neighboring Sudan, is hit by increasing violence triggered by armed group actions against individuals and inter-communal clashes.

This African country, where in 2018 the government and armed groups signed a historic peace agreement, experienced a bloody war from 2013 to 2018, which left thousands dead and the forced displacement of nearly four million civilians, according to data from the United Nations Refugee Agency. - Prensa Latina

rly/abo/mgt/obf
The hailstorm affected Kayole and Kinamba areas. [Antony Gitonga, Standard] 

Residents of Naivasha have been left counting heavy losses running into thousands of shillings following a one-hour hailstorm.

The afternoon hailstones that affected Kayole, Kinamba, and parts of High Peak estates left a trail of destruction forcing some families to relocate.

The aftermath. [Antony Gitonga, Standard]

For the first time in the town's history, the streets and roof were covered with ice sheets to the shock of area residents.

One of the affected residents Peter Wainaina from Kayole Estate said he had never witnessed anything of the kind in his 30-year stay in Naivasha.

The aftermath. [Antony Gitonga, Standard]

"It started as short rain before it developed into hailstones which have covered roads and roofing causing massive losses," he said. By Antony Gitonga, The Standard 

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