The Council of Governors has rejected a proposal to slash counties' equitable share from Sh400 billion to Sh380 billion.

The Commission for Revenue Allocation has also supported the CoG saying this reduction will affect service delivery. The CoG argues that the funds they had already been allocated were inadequate given that the Senate had initially allocated Sh415.9 billion that was reduced through a mediation process involving Parliament and Senate the counties had proposed Sh439.5 billion. 

CoG Vice chairman Ahmed Abdullahi led a team of 20 governors before the Senate Finance and Budget Committee in  Nairobi who said they appreciated the unique challenges the country is currently facing following recent public outrage that led to rejection of the Finance Bill, 2024. 

He told the committee chaired by Mandera Senator Ali Roba that in light of this, county governments have put in place measures aimed at fiscal consolidation to align with the aspirations of the people asking the Senate to support counties' efforts to get Sh400 billion allocated to them instead of the proposed Sh380 billion.

“The current situation does not call for any extra-constitutional or extra-legal measures such as the proposed deduction of Counties equitable share, in view of the foregoing, the Council of Governors is opposed totally to the proposal to reduce allocation to counties to Sh 380 billion and calls for retention of the Counties equitable share at Sh400 billion,” said Abdullahi.

The Commission of Revenue Allocation (CRA) supported the CoG in its quest to maintain Sh400.1 billion for the financial year 2024/25 allocation due the growth of Sh379.12 billion in projected ordinary revenue in the financial year 2024/25.

CRA Chairperson Mary Chebukati, who also appeared before the Senate Committee, said the commission was proposing that National Government allocation be retained at Sh2.194 trillion as the counties get their equitable share. “The national revenue is projected to increase to Sh2.602 trillion in 2024/25 compared to Sh2.223 trillion in 2023/24, therefore, the national and county governments will equitably share Sh379.12 billion and there is no justification to reduce the county allocation,” said Chebukati. 

She said the national government's intention to borrow additional resource to finance its programme which becomes a first charge on the equitable share in subsequent years and the provisions of Article 203 (1)(j) which provides for stability and predictability in the county equitable share allocation.

Chebukati said the proposed reduction in the county allocation in the Division of Revenue (Amendment) Bill 2024 would negatively affect the capacity of the county governments to provide services to the citizens given the timelines in the budget calendar.ble share of revenue is based on the last audited accounts as approved by the National Assembly and not on projected revenue with the projections under the impugned Finance Bill,2024 should therefore not be the basis of revenue sharing.

Mutula said the Constitution provides that counties equitable share shall be allocated in a stable and predictable manner, and on this basis counties allocation is protected from revenue shortfalls, which shall be borne by the national government and any excess revenue shall also accrue to the national government. 

“Given this is a financial legislation affecting counties, we note the Commission on Revenue Allocation did not give its recommendations and neither has Parliament voted on the same as required by the Constitution," he said.

"Counties equitable share has been excluded from the National Governments Appropriation and by extension the budget estimates under Article 221 (7) as it is a charge on the Consolidated Fund,” he added.

The Makueni governor told the Senate that each county prepares its own Finance Bills, and their policies are not expected to prejudice national economic policies (Article 209 (5) which he says puts up a strong case for the counties to get their equitable share without it appearing that they are being done a favour by the national government.

Kakamega Governor Fernandez Barasa, COG Finance Committee chairperson, argued that reducing the counties allocation from Sh400.117 billion allocated under the Division of Revenue Allocation, 2024 to Sh380 billion as proposed will paralyse operations in counties and provision of critical services such as health.

“The proposed allocation is lower than the Sh385.4 billion allocated in the last Financial Year which means counties will not maintain their operations even at the minimum, the budgeting system in Kenya currently is incremental therefore at no point should Counties allocation be lower than the previous year's,” said Baraza.

He said the national government has pronounced intention to borrow additional resources to finance its programmes affected by the projected deficit and therefore no need for further cuts.

Public debt forms the first charge on equitable share in subsequent years and will directly affect the Counties share with deduction only meant to punish counties in present and future allocations.

He said despite the withdrawal of the Finance Bill 2024, the ordinary revenue is projected to increase to Sh2.602 trillion in 2024/25 from Sh2.223 trillion realised in 2023/24, of the additional Sh379.12 billion the counties are set to receive an additional Sh14.72 billion, therefore, there is no justification to reduce the county allocation.

Barasa said the National Assembly has proposed further deductions on county governments additional allocations on similar grounds which if approved will cause further strain to counties resources and operations with the non-discretionary expenditures for the current Financial year such as housing levy deductions, payment of CHPs and CAIPs funding have not been waived hence the counties will be obligated to provide funds for the same. By Edwin Nyarangi, The Standard

A recent report has uncovered a disturbing transformation of banditry and cattle rustling across 13 counties. The study indicates that more than 300 people have been killed since last year, with a higher number of injuries recorded.

Increased use of terrorism-like violence against victims, including unarmed and vulnerable groups such as women and children, shows that the modern-day livestock rustling has evolved significantly from the traditional cattle raiding practices. 

The report by National Crime and Research Centre (NCRC) shows that perpetrators are now employing modern weaponry and primarily assault rifles alongside traditional weapons like bows, arrows and knives.

Titled “Preliminary Report on Managing the Dangerous Drift in Livestock Rustling and Banditry in Kenya”, the report reveals that the weapons are often sourced from cross-border suppliers, local businessmen and even politicians.

Increased commercialisation is now the driving force, with a rise in frequency of the raids and number of animals being stolen. 

The quest to meet a growing demand for stolen livestock and their products has turned what was once a cultural practice into an organised criminal enterprise.

“Other important drivers and factors sustaining present-day livestock rustling and banditry include historical ethnic or intercommunity hostility, inter-community competition for scarce natural or economic resources, socio-cultural reasons, an inadequately regulated market for livestock-related products, cycles of revenge, the need to restock after loss of livestock during droughts, acceptance of livestock rustling and banditry as a norm accepted by the local communities, developmental marginalisation of the pastoral cluster regions, and political motivation,” the report notes.

The study, which covered Baringo, Elgeyo Marakwet, Isiolo, Laikipia, Marsabit, Samburu, and West Pokot counties, found that different regions experience unique aspects of this evolving crime.

However, some common factors emerged across the affected areas.

Key drivers sustaining these activities include the proliferation of illegal small arms, high levels of illiteracy among the youth, poverty and the government’s inability to provide adequate security to vulnerable communities. 

The report identifies various actors involved. Unemployed male youth, including community warriors and gangs, are at the forefront.

However, politicians, business persons, community elders and even rogue government officials, including some security personnel, are abetting the crimes.

Elders have been accused of recruiting raiders, offering spiritual support and helping to conceal stolen livestock and weapons.

The report cites women and children as part of the problem.

“The main roles of women were reported to include: hero worship and cherishing (for example through praise songs) of successful youthful livestock rustlers and bandits; cooking for the livestock rustlers and bandits; helping in hiding and moving stolen livestock; and participating in the socialisation of children into livestock rustling and banditry.”

Children are reportedly used for hiding and moving stolen animals as well as gathering information on potential targets.

The study further reveals a pattern in the timing of these criminal activities. Most incidents occur during weekends, particularly on Sundays, and at night.

The raids peak during rainy and dry seasons, and festive periods.

“Again, most incidents happened during the months of December, followed by April and then November, thus reinforcing another finding that most incidents happened during the rainy seasons, followed by dry seasons and then festive seasons. Furthermore, most incidents were likely to occur during the Christmas festive season, followed by the season of community cultural festivals.”

According to the report, men, especially those aged 34 and below, suffered the most during such incidents, with this being the pattern in eight out of the 13 counties.

“Mapping of the movement and/or destinations of the livestock taken during incidents of rustling and banditry showed that most of the animals taken (75.5 per cent) ended up within the neighbouring counties; 21.1 per cent ended up within the same local community they had been stolen from; 18.5 per cent ended up in other communities within the county they had been stolen from; and 10.4 per cent ended up in distant counties not in the neighbourhood,” the report adds.

The report emphasises that the nature of modern banditry poses a significant threat to the national security. It calls for a change from the current militarised approach to security-based intervention.

In 2022, President William Ruto vowed to put an end to the perennial banditry. He launched Operation Maliza Uhalifu early last year and a commitment to allocate Sh2 billion to the operation. But the crimes continue. By Maryann Muganda, The Standard

The E-commerce market in Kenya is expected to grow by 12.86% on annual basis to reach US$2.6 billion in 2024. Medium to long term growth story of E-commerce industry in Kenya promises to be attractive. The E-commerce is expected to grow steadily over the forecast period, recording a CAGR of 9.97% during 2024-2028. The E-commerce Gross Merchandise Value in the country will increase from US$2.3 billion in 2023 to reach US$3.8 billion by 2028.

This report provides a detailed data centric analysis of E-commerce market dynamics, covering over 100 KPIs in Kenya. It details market opportunity across key B2C verticals - Retail Shopping, Travel & Hospitality, Online Food Service, Media and Entertainment, Healthcare and Wellness, and Technology Products and Services. It provides market share by key players across key verticals along with sales channels (Platform to Consumer, Direct to Consumer, Consumer to Consumer). In addition, it provides spending pattern by payment instruments along with a snapshot of consumer behaviour in Kenya.

The report also covers niche trends such as market size by live streaming engagement model and cross border purchases. It also covers ecommerce spend share by operating systems, device (mobile vs desktop) and cities. In addition, to detailed data-centric analysis, this report provides analyst commentary on key trends, drivers, strategies, and innovations in the E-commerce industry in Kenya.

Reasons to buy

• In-depth Understanding of Ecommerce Market Dynamics: Understand market opportunities and key trends along with forecast (2019-2028). Understand market dynamics through essential KPIs such as Gross Merchandise Value, Volume, and Average Value Per Transaction.
• Insights into Opportunity by Ecommerce Categories: Get market dynamics by sales channel to assess emerging opportunities across various segments.
• Detailed analysis of market share by key players across key Ecommerce verticals.
• Insights into Opportunities across key Ecommerce verticals: Retail shopping, travel & hospitality, online food service, media and entertainment, healthcare and wellness, and technology products & services.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate an Ecommerce strategy; assess market-specific key trends, drivers, and risks in the Ecommerce industry.
• Get Insights into Consumer Attitude and Behaviour: Drawing from proprietary survey results, this report identifies and interprets key Ecommerce KPIs, including spend by age, gender, and income level.

Key Attributes:

Scope

Kenya Ecommerce Market Size and Future Growth Dynamics

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Gross Merchandise Volume Trend Analysis

Kenya User Statistics and Ratios of Key Performance Indicators

• User Statistics
• Card Abandonment Rate and Product Return Rate
• Ecommerce Per Capita and GDP Per Capita
• GDP Per Capita Trend Analysis

Kenya Ecommerce Market Share by Key Players

• Kenya Retail Shopping Ecommerce Market Share by Key Players
• Kenya Travel Ecommerce Market Share by Key Players
• Kenya Food Service Ecommerce Market Share by Key Players
  • Avechi
  • Jiji
  • Jumia
  • Kilimall
  • MyDawa
  • Bolt Food
  • Jumia Food
  • LetaFood
  • Uber Eats
  • Yum Deliveries
  • Hava Net Limited
  • Hemingways Travel
  • Little Cab
  • Maramoja Transport
  • Wasili

Kenya Ecommerce Market Size and Forecast by Ecommerce Segments (Gross Merchandise Value Trend Analysis

• Retail Shopping (breakdown by clothing, footwear & accessories, health, beauty and personal care, food & beverage, appliances and electronics, home improvement, books, music & video, toys & hobby, auto)
• Travel and Hospitality (breakdown by air travel, train & bus, taxi service, hotels & resorts)
• Online Food Service (breakdown by aggregators, direct to consumer)
• Media and Entertainment (breakdown by streaming services, movies & events, theme parks & gaming)
• Healthcare and Wellness
• Technology Products and Services
• Other segments

Kenya Ecommerce Market Size and Forecast by Retail Shopping Sales Channel

• Platform to Consumer
• Direct to Consumer
• Consumer to Consumer

Kenya Ecommerce Market Share by Travel and Hospitality Sales Channel

• Market Share by Travel and Hospitality Sales Channel
• Aggregator App - Gross Merchandise Value Trend Analysis
• Direct to Consumer - Gross Merchandise Value Trend Analysis

Kenya Ecommerce Market Size and Forecast by Online Food Service Sales Channel

• Aggregator App
• Direct to Consumer

Kenya Ecommerce Market Size and Forecast by Engagement Model (Gross Merchandise Value Trend Analysis, 2019-2028)

• Website Based
• Live Streaming

Kenya Ecommerce Market Size and Forecast by Location (Gross Merchandise Value Trend Analysis

• Cross Border
• Domestic

Kenya Ecommerce Market Size and Forecast by Device (Gross Merchandise Value Trend Analysis

• Mobile
• Desktop

Kenya Ecommerce Market Size and Forecast by Operating System

• iOS/macOS
• Android
• Other Operating Systems

Kenya Ecommerce Market Size and Forecast by City

• Tier 1
• Tier 2
• Tier 3

Kenya Ecommerce Market Size and Forecast by Payment Instrument (Gross Merchandise Value Trend Analysis, 2019-2028)

• Credit Card
• Debit Card
• Bank Transfer
• Prepaid Card
• Digital & Mobile Wallet
• Cash
• Other Digital Payment

Kenya Ecommerce Consumer Demographics

• Market Share by Age Group
• Market Share by Income Level
• Market Share by Gender

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