NAIROBI (Reuters) - The family of a man held at the U.S. Guantanamo Bay prison camp on suspicion of carrying out militant attacks has sued the Kenya government for 2.25 billion shillings ($29.60 million) for wrongful detainment and torture.
In a petition to the High Court in Nairobi, Mohamed Abdulmalik's family said he was arrested on February 13, 2007 and held for longer than Kenyan law allows before he was handed over to the U.S. authorities. "We submit that the above figure is commensurate compensation for the callous, unfeeling, inexcusable treatment that the Kenya police meted out against the subject," the petition said.
It went on to denounce his "long and unlawful detention without trial in what is now reputed to be the worst detention facility on earth."
Abdulmalik is held at Guantanamo Bay, a U.S. naval station in Cuba, for his alleged involvement in a 2002 attack of an Israeli-owned Kenyan beach hotel and an unsuccessful attempt to shoot down a plane headed for Israel from the resort of Mombasa.
The case, which has the Attorney General and Commissioner of Police listed as respondents, will be heard on January 14, 2010.
U.S. President Barack Obama has pledged to close Guantanamo Bay -- set up after the September 11, 2001, attacks on the United States and a focus of controversy because of torture and rights abuses -- and move suspected militants for trial on U.S. soil.
($1=75.85 Kenyan Shilling)
(Reporting by Humphrey Malalo; Editing by Angus MacSwan)
Source:nytimes.com/
Friday, December 11, 2009
Kenya’s World Cup farce
The FIFA World Cup trophy is touring Africa to in the lead-up to the finals in South Africa in June next year. The 225-day tour began on September 21 in Cairo.
Soccer is wildly popular in Africa, even though the best an African team has done in a World Cup is a spot in the quarter-finals. Cameroon achieved the feat in 1990 under the spell of 38-year-old talisman Roger Milla. Senegal made it in 2002. Keen followers of the game here reckon that were it not for suspect refereeing, the two teams might have reached the semis.
The World Cup is one of the most watched global events. New York-based IPG Media, one of the big four global advertising holding companies, reports that the 2006 FIFA World Cup had an average of 95 million viewers per match.
But the World Cup marketing here is defying common sense. Starting in 2006, FIFA in conjunction with Coca Cola launched the FIFA World Cup Trophy Tour. A press release from FIFA said:
"world football's greatest prize is set to embark on its longest ever global tour, with FIFA and The Coca-Cola Company taking the real solid-gold trophy to 86 countries during a 225-day journey and allowing thousands of fans to enjoy a rare close-up view of the authentic FIFA World Cup Trophy. The trophy will travel 134,017 kilometres (83,274 miles) and visit every nation in Africa (except war torn Somalia) to give African fans the once-in-a-lifetime experience of having their picture taken with the trophy."
There is something ridiculous about a whole continent going gaga about a trophy it has not won. Trophies are for winning, not for goggling at. FIFA calls the trophy soccer’s Holy Grail. But Holy Grail is mythical. There is nothing mythical about the FIFA trophy. It goes to the country that invests in its soccer.
The trophy's sojourn in Kenya encapsulated the absurdity of this 21st century idolatry. Like a VIP, the trophy was received by both President Mwai Kibaki and Prime Minister Raila Odinga at the airport.
These two politicians who -- on paper -- are in a power-sharing arrangement had first to be educated on the protocols of handling the trophy. Only the players of winning teams and heads of states can touch the trophy. So Mr Kibaki, being the head of state, was the only Kenyan who could even touch it. Got it? No power-sharing here.
This tormented Mr Odinga, a keen soccer fan, especially since Mr Kibaki is an avid golfer with no known interest in soccer.
But despite the farcical elements in this comedy, the government’s two-faced stupidity was enough to make you weep.
Only a few months before President Kibaki touched the trophy, his government had withdrawn from a great deal with Coca-Cola. The multinational was to refurbish the dilapidated Nyayo National Stadium, Kenya’s second largest. In exchange, for four years it would become Coca Cola Stadium and wear Coke’s colours. For Coke it was a brilliant marketing opportunity, as competing teams will be using it in the coming months to acclimatize to tropical conditions.
But after work started, the government suddenly reneged. The reason? Nyayo Stadium could not be renamed. The word "Nyayo" is part of the country’s legacy, the Kiswahili word for footprints. It was an emblem of the wish of Daniel Moi, Kenya’s second president, to follow in the footsteps of Mzee Jomo Kenyatta, our first president. True to his word, Mr Moi followed in Kenyatta’s footprints. Corruption and cronyism became entrenched in government business. That is the legacy Kibaki’s government wanted to keep alive.
Most of us were incensed. Here were government honchos drooling over a trophy after they had emasculated efforts to give our country a fighting chance of vying for it.
To add insult to injury, any government-funded facility of note is called Kenyatta something or Nyayo something or Moi something. Kenya’s biggest hospital and airport, Nairobi’s largest avenue and Kenya’s second biggest university are called Kenyatta. The country’s largest sports complex and second oldest university are called Moi. Kenya’s stillborn national automobile was the Nyayo car. A failed government bus company was Nyayo Bus. And a building in downtown Nairobi used by Moi’s secret police to torture agitators in the 1980s is called Nyayo House.
So much for the Nyayo legacy.
Thank God for the candour of private enterprise. At least Coke is not cloaking itself in love of country or even love of sport. Coca-Cola Muhtar Kent boss was up-front about his company’s sponsorship. "Our programmes to support the 2010 FIFA World Cup, such as the Trophy Tour, will leave a lifelong impression on consumers that helps to reinforce loyalty and preference for our business and our brands," he said.
So it is all about marketing. Ah, money, the cause that refreshes.
Source:mercatornet.com/
Kenya Electricity Advances After Award of $1.3 Billion Tender
Kenya Electricity Generating Co., the biggest electricity producer in the country, advanced the most in seven days after saying it had awarded a $1.3 billion tender to Daewoo International Corp.
The stock climbed 25 cents, or 2.2 percent, to 11.8 shillings at 9:57 a.m. in Nairobi.
Seoul, South Korea-based Daewoo was selected as the preferred bidder for a coal-fired power plant project in Kenya’s port city of Mombasa. Construction of the facility is expected to take three to four years and KenGen, as the Kenyan company is known, will own as much as 49 percent of the joint venture, Managing Director Eddie Njoroge said yesterday.
Kenya plans to build power plants to generate 1,500 megawatts by 2019 after drought during the past few years cut supplies from hydropower plants.
To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net.
Source:bloomberg.com/
The stock climbed 25 cents, or 2.2 percent, to 11.8 shillings at 9:57 a.m. in Nairobi.
Seoul, South Korea-based Daewoo was selected as the preferred bidder for a coal-fired power plant project in Kenya’s port city of Mombasa. Construction of the facility is expected to take three to four years and KenGen, as the Kenyan company is known, will own as much as 49 percent of the joint venture, Managing Director Eddie Njoroge said yesterday.
Kenya plans to build power plants to generate 1,500 megawatts by 2019 after drought during the past few years cut supplies from hydropower plants.
To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net.
Source:bloomberg.com/
Raila pushes Kenya team to fight for fair accord
Prime Minister Raila Odinga on Thursday urged Kenyan negotiators not to relent in the quest for a fair deal at the climate change summit in Copenhagen, Denmark.
Mr Odinga said as they championed Kenya’s interests, they should stand with the rest of Africa, which has borne the biggest brunt of climate change.
“Our voices will be much louder if we stand united,” Mr Odinga told the delegates representing Kenya at the epic summit that comes to an end next week.
“We must stop the blame game…there will definitely be differences among you and other negotiators but we need to be diplomatic if we are to succeed.
“Failure is not an option for us in Kenya, Africa and the world. We may not achieve everything, there will be contentious issues but we must succeed,” he said.
The meeting is expected to come up with a deal that will supplant the Kyoto Protocol, which expires in 2012.
Heavy burden
The protocol, which came into force in 2005 and was ratified by 148 parties, places a heavy burden on industrialised countries and sets targets for reducing greenhouse gas emissions, now accepted as the major cause of global warming.
Mr Odinga said the time to act against climate change was now, adding that failure to act will “spell doom” for countries like the Maldives, Vanuatu and others, which risk being submerged.
“Even our Mombasa will not be spared. It also risks sinking,” he said.
Studies indicate that 17 per cent of the Mombasa area could be submerged by a global sea level rise of up to 30cm.
At the conference venture, sharp divisions between developed and developing countries over the possible shape of the new deal persisted.
Briefing the PM on the negotiations, Ms Grace Akumu, Kenya’s technical advisor on climate change issues, said developed countries were “shifting goal posts on a number of issues” including figures on emissions reduction.
“They want the figures not to be included under the Kyoto Protocol but long term cooperative action and we are opposed to this. We feel this is a repetition of the talks in Barcelona, Spain a few months ago,” she said.
“Developed countries must commit… the survival of African countries depends on it. If this does not happen, then we are likely to witness more of the negative effects of climate change like more floods and droughts,” Ms Akumu said.
The emergence of leaked documents — the so-called Danish text — that show world leaders will next week be asked to sign an agreement that hands more power to rich countries and sidelines the UN’s role in all future climate change negotiations has also been raised an uproar.
Source:.nation.co.ke/
Mr Odinga said as they championed Kenya’s interests, they should stand with the rest of Africa, which has borne the biggest brunt of climate change.
“Our voices will be much louder if we stand united,” Mr Odinga told the delegates representing Kenya at the epic summit that comes to an end next week.
“We must stop the blame game…there will definitely be differences among you and other negotiators but we need to be diplomatic if we are to succeed.
“Failure is not an option for us in Kenya, Africa and the world. We may not achieve everything, there will be contentious issues but we must succeed,” he said.
The meeting is expected to come up with a deal that will supplant the Kyoto Protocol, which expires in 2012.
Heavy burden
The protocol, which came into force in 2005 and was ratified by 148 parties, places a heavy burden on industrialised countries and sets targets for reducing greenhouse gas emissions, now accepted as the major cause of global warming.
Mr Odinga said the time to act against climate change was now, adding that failure to act will “spell doom” for countries like the Maldives, Vanuatu and others, which risk being submerged.
“Even our Mombasa will not be spared. It also risks sinking,” he said.
Studies indicate that 17 per cent of the Mombasa area could be submerged by a global sea level rise of up to 30cm.
At the conference venture, sharp divisions between developed and developing countries over the possible shape of the new deal persisted.
Briefing the PM on the negotiations, Ms Grace Akumu, Kenya’s technical advisor on climate change issues, said developed countries were “shifting goal posts on a number of issues” including figures on emissions reduction.
“They want the figures not to be included under the Kyoto Protocol but long term cooperative action and we are opposed to this. We feel this is a repetition of the talks in Barcelona, Spain a few months ago,” she said.
“Developed countries must commit… the survival of African countries depends on it. If this does not happen, then we are likely to witness more of the negative effects of climate change like more floods and droughts,” Ms Akumu said.
The emergence of leaked documents — the so-called Danish text — that show world leaders will next week be asked to sign an agreement that hands more power to rich countries and sidelines the UN’s role in all future climate change negotiations has also been raised an uproar.
Source:.nation.co.ke/
Sasini of Kenya Falls to 1-Month Low on Profit, Tea-Price Drop
Sasini Ltd., a Kenyan tea and coffee producer, fell to its lowest price in a month after saying on Dec. 9 full-year profit declined 40 percent to 526 million shillings ($6.96 million) and tea prices fell from a record.
The stock lost 65 cents, or 8.5 percent, to 7 shillings, its lowest level since Nov. 9. A close at this price would represent the steepest fall since Jan. 30.
African tea prices fell 7.4 percent from a record at the world’s biggest auction of the leaves in Mombasa, Kenya, Africa Tea Brokers Ltd. said yesterday.
Tea output in the East African country fell 11 percent to 242.2 million kilograms in the first 10 months from the same period a year earlier, the Tea Board of Kenya said Nov. 23. Global tea production is expected to be lower than last year because of unfavorable weather in major growing countries, including Sri Lanka and Kenya, the board said Oct. 30.
To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net
Source:bloomberg.com/
The stock lost 65 cents, or 8.5 percent, to 7 shillings, its lowest level since Nov. 9. A close at this price would represent the steepest fall since Jan. 30.
African tea prices fell 7.4 percent from a record at the world’s biggest auction of the leaves in Mombasa, Kenya, Africa Tea Brokers Ltd. said yesterday.
Tea output in the East African country fell 11 percent to 242.2 million kilograms in the first 10 months from the same period a year earlier, the Tea Board of Kenya said Nov. 23. Global tea production is expected to be lower than last year because of unfavorable weather in major growing countries, including Sri Lanka and Kenya, the board said Oct. 30.
To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net
Source:bloomberg.com/
Kenyan MPs pass money laundering law
NAIROBI, Kenya Dec 11 – The law on Proceeds of Crime and Anti-Money Laundering now awaits presidential assent after Parliament passed it with amendments on Thursday.
The Bill seeks to prevent earnings of crimes from entering into the Kenyan market. It also criminalizes all forms of money laundering, a process in which the origin of funds generated by illegal means such as drug trafficking, gun smuggling terrorism and corruption are concealed.
The chairman of the Parliamentary Committee on Administration of Justice and Legal Affairs Abdikadir Mohammed proposed changes to the Bill that include requiring police officers and other law enforcement agencies from carring out any searches without warrants or to falsify information.
Mr Abdikadir argued this measure would prevent police officers from harassing innocent people through the Financial Reporting Centre which is mandated with identification of proceeds of crimes and money laundering.
The Police Commissioner replaced the Law Society of Kenya on the Board which is established under the Bill.
Meanwhile, Parliament adjourned on Thursday for the Christmas recess but is expected to be recalled in early February to begin debate on the harmonised draft constitution.
Speaking earlier, Mr Abdikadir assured Kenyans that the parliamentary break would not delay the realisation of the new constitution within 12-month time frame.
“Assuming everything went like clockwork, the earliest we will require parliament is February 25 and Parliament will be there if that need comes… even earlier.”
He added: “I have heard that people feel Parliament is not interested in this process… they are even thinking of going on recess. Last time, we recalled Parliament in January although traditionally Parliament resumes in March so the PSC will work whether or not Parliament is in recess or not. The Parliamentary Committees don’t go on recess.”
The referendum on the new constitution will be held four months after the Abdikadir-led Parliamentary Select Committee on the Constitution tables the draft law for approval by Members of Parliament.
The timetable shows that the country may go into a referendum by June 2010.
Under the new roadmap, the negotiators envisaged that the review process would be completed within 12 months after the constitutional referendum law is initiated in Parliament.
Source:capitalfm.co.ke/
Kenya again denies hiding Rwandan genocide fugitive Felicien Kabuga
A five million dollar bounty has been put on his head,
for whoever provides information leading to the
arrest of this fugitive by the U.S. government
NAIROBI (Xinhua) -- The Kenyan government on Monday again denied claims by the UN tribunal for Rwanda that its harboring wanted Rwandan fugitive, Felicien Kabuga, who is accused of masterminding his country’s genocide that led to the massacre of almost a million people.
Addressing a news conference in Nairobi, Government Spokesman Alfred Mutua accused the prosecutor of the International Criminal Tribunal for Rwanda, Hassan Boubacar Jallow and the U.S. of perpetually propagating baseless allegations that Kabuga was hiding in Kenya and the government had failed to help assist in apprehending him.
Mutua told journalists that the government is not aware of the whereabouts of Kabuga noting that he could be anywhere in the world including Kenya or neighbouring countries.
“The government took great exception to the statement by ICTR Prosecutor Hassan Jallow that Kenya was hiding Kabuga.
“We are not just denying but we are telling them to give us the information and make it public where we are hiding him,” Mutua said.
“We find these allegations to be unjustified and not based on the reality of our cooperation with the United Nations and other countries,” Mutua told journalists in Nairobi.
Kabuga, a wealthy businessman, is accused by the International Criminal Tribunal for Rwanda (ICTR) for sponsoring the 1994 Tutsi genocide, in particular the Radio Television Mille Collines (RTLM), and purchasing machetes that were used by Interahamwe militias to kill over one million Tutsis.
Washington has been putting pressure on Kenya to arrest Kabuga who is believed to be living in the country.
A five million dollar bounty has been put on his head, for whoever provides information leading to the arrest of this fugitive by the U.S. government.
“The government has issued a statement to the United Nations Security Council in which it points out that the international community might be over concentrating on Kenya , whereas the fugitive could be comfortably living elsewhere,” said Mutua.
The government spokesman said that the east African nation is working on a comprehensive reply to the UN over continuous allegations its harboring the fugitive.
He said that the Kenyan police have been working together with UN investigators in searching for Kabuga.
Source:coastweek.com/
for whoever provides information leading to the
arrest of this fugitive by the U.S. government
NAIROBI (Xinhua) -- The Kenyan government on Monday again denied claims by the UN tribunal for Rwanda that its harboring wanted Rwandan fugitive, Felicien Kabuga, who is accused of masterminding his country’s genocide that led to the massacre of almost a million people.
Addressing a news conference in Nairobi, Government Spokesman Alfred Mutua accused the prosecutor of the International Criminal Tribunal for Rwanda, Hassan Boubacar Jallow and the U.S. of perpetually propagating baseless allegations that Kabuga was hiding in Kenya and the government had failed to help assist in apprehending him.
Mutua told journalists that the government is not aware of the whereabouts of Kabuga noting that he could be anywhere in the world including Kenya or neighbouring countries.
“The government took great exception to the statement by ICTR Prosecutor Hassan Jallow that Kenya was hiding Kabuga.
“We are not just denying but we are telling them to give us the information and make it public where we are hiding him,” Mutua said.
“We find these allegations to be unjustified and not based on the reality of our cooperation with the United Nations and other countries,” Mutua told journalists in Nairobi.
Kabuga, a wealthy businessman, is accused by the International Criminal Tribunal for Rwanda (ICTR) for sponsoring the 1994 Tutsi genocide, in particular the Radio Television Mille Collines (RTLM), and purchasing machetes that were used by Interahamwe militias to kill over one million Tutsis.
Washington has been putting pressure on Kenya to arrest Kabuga who is believed to be living in the country.
A five million dollar bounty has been put on his head, for whoever provides information leading to the arrest of this fugitive by the U.S. government.
“The government has issued a statement to the United Nations Security Council in which it points out that the international community might be over concentrating on Kenya , whereas the fugitive could be comfortably living elsewhere,” said Mutua.
The government spokesman said that the east African nation is working on a comprehensive reply to the UN over continuous allegations its harboring the fugitive.
He said that the Kenyan police have been working together with UN investigators in searching for Kabuga.
Source:coastweek.com/
Kenyan leaders warned on hate speech
NAIROBI, Kenya, Dec 10 - The National Cohesion and Integration Commission (NCIC) has warned politicians currently engaged in the referendum and 2012 campaigns that hate and ethic speeches will not be tolerated.
Commissioner Fatuma Mohammed said on Thursday that NCIC was monitoring the premature campaigns and would be ready to take action against any incitements or disorderly utterances and action.
Ms Mohammed said the Commission was wary of the regional and ethnic alliances way before the 2012 polls.
“We are seeing the regrouping and it is like 2007 never happened. We are monitoring and very soon we are going to publish a report,” she said adding that the Commission was in the process of writing warning letters to the leaders engaged in the KKK (Kamba, Kikuyu and Kalenjin) alliance.
“We have told them the alliances are unacceptable. The letters will be delivered soon.”
Vice President Kalonzo Musyoka came up with the idea of the union but later said his view was more of a reconciliation mission than a political outfit.
In the last few weeks, politicians have hit the campaign trail declaring interests and strategies for the 2012 general election which is three years away. Chief Mediator Kofi Annan on Tuesday expressed concerns that the campaigns were undermining the pace of reforms in the country.
Created two months ago, the NCIC is mandated to promote equality of opportunity, good relations, harmony and peaceful co-existence between different ethnic and racial communities in Kenya and to advice the Government on all aspects thereof.
Those liable of offences of hate speech or perpetuating inequality in any way are liable to a fine not exceeding Sh1,000,000 or an imprisonment not exceeding five years.
“Our mandate is to curb ethnicity and we are going to put policies in place to discourage the tribal alliances. We ought to look at ourselves as Kenyans and not from a specific community,” she said.
Ms Mohammed said the Commission was planning to carry out a survey of all public institutions to establish whether they meet the set standards on ethnic representation. Under the Act creating the Commission, it is unlawful to have more than a third of total employees coming from one community.
“We are going to check right from the cleaner to the tea girl, the secretary all the way to the top,” she said. “You do not have to bring someone all the way from your village to work as a tea girl.”
The Commission also plans to carry out a baseline survey to establish the extent of ethnicity in the country.
Source:capitalfm.co.ke/
Kenya Airways Launches Credit Card Loyalty Program
Coastweek -- Kenya Airways Group Managing Director and Chief Executive Officer Mr Titus Naikuni and CFC Stanbic Bank Managing Director Mike du Toit display the KQ-Msafiri Gold Credit Cards during the launch. This is the first credit card in Kenya that earns points every time a customer uses the card. The cardholder can redeem the points for free tickets to any Kenya Airways destination across the world.
.
AIRLINE PARTNERS WITH CFC STANBIC BANK TO
INTRODUCE FIRST CREDIT CARD THAT EARNS POINTS
Coastweek -- Kenya Airways and CFC Stanbic Bank have launched the KQ-Msafiri Gold Credit Card, in association with MasterCard Worldwide.
This is the first credit card in Kenya that earns points every time a customer uses the card.
The cardholder can redeem the points for free tickets to any KQ destination across the world.
"Kenya Airways recognizes the need to offer value addition to its customers and this partnership with CFC Stanbic Bank will ensure that our passengers enjoy the opportunities that this new partnership," said Titus Naikuni, Kenya Airways Group Managing Director and Chief Executive Officer.
"Through our partnership, we will reward our customers by ensuring they make the very most out of their everyday purchases to earn Kenya Airways miles for reward flights or upgrades in way that connects with their individual lifestyles."
With the new credit card, the airline's customers will earn KQ-miles on everyday spending in return they will enjoy class of travel upgrades and reward flights to any destination on the Kenya Airways network.
"Credit card rewards programs continue to grow in popularity with consumers and the rewards program is still a major factor when consumers are deciding which card to use for a purchase," said Mike du Toit, Managing Director, CfC Stanbic Bank.
"KQ and CFC Stanbic have introduced the reward program so it can offer consumers rewards that not only interest them but suit their lifestyle needs best."
Other benefits that cardholders are entitled to include free travel insurance for every ticket purchased using the card; check in priority at the airport, eight to ten per cent discount on Kenya Airways tickets to any destination of the cardholders' choice and the flexibility to shop at any shop displaying the MasterCard sign across the globe, including access to cash at over one million ATMs in 210 countries.
Cardholders will be able to earn miles at the generous rate of one KQ-Mile for every Kshs. 100 spent at a point of sale.
Source:coastweek.com/
Loan Will Finance Kenya Ethiopia Highway Project
NAIROBI (Xinhua) -- The African Development Bank (AfDB) on Tuesday signed a 12.5-billion-shilling (167 million U.S. dollars) loan agreement with Kenya to finance a road project linking the east African nation with neighbouring Ethiopia.
Main objective of Mombasa-Nairobi-Addis Ababa Road Corridor Project is to promote trade and regional integration between Ethiopia and Kenya , by improving transport communications between the two countries.
The two countries which share more than 1,000 km of common border, and yet there is currently not a single all-weather road connecting the two, will also reduce transport costs, and significantly improve the offer of transport services with other counties in the sub-region.
Speaking during the signing ceremony, Kenya's Finance Minister Uhuru Kenyatta said the phase two of the project will cover a total of 123 km from Marsabit to Turbi to open up the northern part of Kenya to the rest of the country thus increasing inter- regional trade between the two nations.
"The project will also include construction of One-Stop-Border in Moyale, equipping of security outposts, and the drilling of community water wells and water harvesting schemes," he said.
Kenyatta said the first phase of the road project from Isiolo to Merille River , covering a distance of 136 km is going on well and was expected to be completed on schedule.
"The project is also consistent with our Vision 2030, where infrastructure development has been identified as a key input to moving this country into a middle-income country," Kenyatta said.
AfDB Resident Representative to Kenya Domina Buzingo said the expected outcomes of this project included reduced transport and logistic costs between Kenya and Ethiopia ; reduced transit travel time for goods and for people; and increased volume of Ethiopian transit goods using the port of Mombasa .
"It is also expected that the development of the corridor will expand market sizes beyond national boundaries and foster a conducive and enabling environment for the private sector," Buzingo said.
She said by increasing access to markets and social services for the surrounding areas and communities, the project will contribute to reduce poverty in both countries, and to empower disadvantaged groups through adequate roadside socio-economic infrastructure and services.
"The project road is an important section of the trans-African highway Cairo-Cape town, connecting the whole Africa ," Buzingo said.
The signing of this loan brings the Bank's total support to the transport sector in Kenya to 500 million dollars which is nearly 50 percent of the total financial interventions of the African Development Bank Group in Kenya .
Source:coastweek.com/
Main objective of Mombasa-Nairobi-Addis Ababa Road Corridor Project is to promote trade and regional integration between Ethiopia and Kenya , by improving transport communications between the two countries.
The two countries which share more than 1,000 km of common border, and yet there is currently not a single all-weather road connecting the two, will also reduce transport costs, and significantly improve the offer of transport services with other counties in the sub-region.
Speaking during the signing ceremony, Kenya's Finance Minister Uhuru Kenyatta said the phase two of the project will cover a total of 123 km from Marsabit to Turbi to open up the northern part of Kenya to the rest of the country thus increasing inter- regional trade between the two nations.
"The project will also include construction of One-Stop-Border in Moyale, equipping of security outposts, and the drilling of community water wells and water harvesting schemes," he said.
Kenyatta said the first phase of the road project from Isiolo to Merille River , covering a distance of 136 km is going on well and was expected to be completed on schedule.
"The project is also consistent with our Vision 2030, where infrastructure development has been identified as a key input to moving this country into a middle-income country," Kenyatta said.
AfDB Resident Representative to Kenya Domina Buzingo said the expected outcomes of this project included reduced transport and logistic costs between Kenya and Ethiopia ; reduced transit travel time for goods and for people; and increased volume of Ethiopian transit goods using the port of Mombasa .
"It is also expected that the development of the corridor will expand market sizes beyond national boundaries and foster a conducive and enabling environment for the private sector," Buzingo said.
She said by increasing access to markets and social services for the surrounding areas and communities, the project will contribute to reduce poverty in both countries, and to empower disadvantaged groups through adequate roadside socio-economic infrastructure and services.
"The project road is an important section of the trans-African highway Cairo-Cape town, connecting the whole Africa ," Buzingo said.
The signing of this loan brings the Bank's total support to the transport sector in Kenya to 500 million dollars which is nearly 50 percent of the total financial interventions of the African Development Bank Group in Kenya .
Source:coastweek.com/
Al-Shabaab Orders Women To Wear Veils in Somalia
Mogadishu, Somalia 10th Dec, 2009 – The Al-qaeda linked Islamist rebels Al-shabaab have ordered Somali women in the border town of Dhobley close to Kenya to wear veils or face punishment, the top rebel commander in the town declared late on Wednesday. During a press conference yesterday afternoon, Al shabab’s security chief in the town Sheik Da’ud Hassan Ali said that all women in Dhobley and surrounding villages are told to wear veils and cover all their bodies otherwise they will be punished for neglecting the Islamic orders.
“According to the holly Quran Allah had obligated Muslim women in all over the world to have veils, that is a religious article and any woman who doesn’t obey will be dealt with in accordance with Islamic sharia law” the Islamist official told reporters.
Al-shabaab also banned cigarettes and Kat {the green narcotic leafs grown in the neighbouring Kenya} to be used in the city. Dhoble, a key border town close to Kenya is about 695 kilometres south of the capital Mogadishu and it fell into the hands of Al-shabaab late last month when militias belonging to their former ally Hezbal Islam fled from the city toward Kenyan border.
This week, Kenya said that its security forces have been put on a high alert to intercept Islamists from entering in its territories as they are getting very closer to Kenyan side of the border. On may 7 this year, both groups united in combating against Somalia’s world-backed transitional government and launched a big offensive to topple it, but later they disagreed over the administrative power of the key port town of Kismayo, about 500 kilometres south of Mogadishu.
Al-shabaab Islamists, Al-qaeda’s proxy in the horn of Africa say they are fighting to establish Islamic state in Somalia, while the Somali government accuses them of wanting to make Somalia a safe haven for international terrorists running from Iraq, Afghanistan, Pakistan and elsewhere in the world.
Source:newstimeafrica.com/
Kenyan oil marketers thrive
NAIROBI, Kenya Dec 10 - As many well established multinational petroleum companies exit the Kenyan market, local marketers now feel they have an opportunity to thrive.
Hass Petroleum Group Chief Executive Issah Sheikh told a news confrence on Thursday that the exit presents a window of opportunity that small companies can exploit.
“Obviously when someone leaves, you look for ways in which as a player, you can fill in the gap by capitalising on customer needs and giving them the best value for their money,” Mr Sheikh said.
He was however quick to add that the exit of big companies did not automatically mean closure of the business (altogether).
Most multinationals sell their stake to another company in the region ensuring the business still exists.
He added the advantage that is presented is a change of management, which takes time to gel and can be then exploited.
“When a company goes out, there is always a change of ownership. If you are aggressive and you understand the market then the opportunities are endless,” he said.
Multinational petroleum marketers such as Chevron (Caltex), Mobil and BP have exited the market only to be taken up by other players.
French oil company Total bought the Chevron business in Kenya while Mobil was taken over by Oil Libya.
Another reason given for the rise of smaller oil marketers in Kenya is the liberalisation of oil market in 2004.
The CEO said this has removed technical inefficiencies paving the way for increased competition in the market.
“Real competition is setting in and we feel that we have what it takes to compete effectively. It has also created a level playing field in the oil business which makes it easier for new entrants to fit in,” he said.
With this in mind, the company plans to invest Sh20 million in tripling its service stations (currently three stations) in Kenya with a keen focus in Nairobi.
“We have plans in the next three months to intensify our service outlets in Kenya because there are opportunities in as far retail is concerned and Kenyans should be able to access fuel at their convenience.”
Also on the cards for Hass are plans to complement its range of oil products by adding a consumer range of liquefied petroleum gas (LPG) to its stable by mid 2010 even though it already supplies LPG in bulk.
Mr Sheikh was speaking during the unveiling of a new range of lubricants as part of the group’s efforts to reinforce its presence in East Africa and Great Lakes Region markets.
He revealed the company had made a strategic decision to invest in its own range of lubricants blended locally.
The lubricants are formulated with advanced technology to suit the requirements of modern diesel and petrol engines applicable to all conditions to ensure optimal engine performance.
The lubricant brands are Toperx and Atroil for diesel and petrol engines, respectively. Other products unveiled include high grade engine oils, normal grade engine oils and gear lubricants.
Hass Petroleum has fully fledged operations in Tanzania, Uganda, Southern Sudan, Rwanda, Burundi, and the Democratic Republic of Congo.
Hass operates 60 retail stations across East and Central Africa and the company is the sole distributors of the Abu Dhabi National Oil Company (ADNOC) products in the region.
Source:capitalfm.co.ke
Branding can improve Kenya’s image
Youths set up a road block in Naivasha during last year’s post-election violence. Political environment largely affects the business environment and consequently the final country risk grade. Photo/REUTERS
Posted Friday, December 11 2009 at 00:00
Marxist Lenin once quipped that “Politics always obediently follows economics”.
The politics in most African nations have never been so alluring and Kenya is no exception.
Few African countries can brag of well entrenched democratic regimes and most are often led by kleptocratic dictatorships.
This is has continuously been negatively affecting business environment as well as attracting foreign investors who are fed with news about our failed systems and widespread corruption.
Ripple effects
Failure to address these issues has ripple effects and ultimately affects international country risk ratings.
Country risk refers to the risk of investing in a country, dependent on changes in the business environment that may adversely affect operating profits or the value of assets in a specific country.
Undoubtedly, political environment largely affects the business environment and consequently the final country risk grade.
The country risk rating as at November 18, 2009 on Kenya by the authoritative Economic Intelligence Unit is horrendous.
Kenya’s overall rating was grade D which simply means a very uncertain political and economic outlook.
A business environment with many troublesome weaknesses can have a significant impact on corporate payment behaviour.
Corporate default probability is high.
A close look at the components advising the rating gives the scorecard; Security risk C, political stability risk D, government effectiveness risk E, legal and regulatory risk D, macroeconomic risk C, foreign trade and payments risk C, financial risk C, tax policy risk C, labour market risk D and infrastructure risk E.
The country ratings system allows a company to assess the average corporate payment default risk, for example repayment of credit in a given country.
It also indicates to what extent a company’s financial commitments may be affected by local business and economic/political environment within a given country.
Source:businessdailyafrica.com/
Kenyan courts on legal front line in battle to stop Somali pirates
Squeezed into the wood-panelled dock, the nine young men wilted in the tropical heat. Overhead a single ceiling fan battled against the crushing coastal humidity that left judge, lawyers, accused and witness sweating in the shabby Kenyan courtroom.
As the suited lawyers for the prosecution and defence parried legalistic blows, a translator changed each half-sentence from English to Somali for the accused men, while Judge Rose Makungu wrote down every word by hand. These sluggish proceedings are the front end of the global fight against piracy.
When suspected pirates are captured by some of the dozens of international warships that patrol the Gulf of Aden and seas off Somalia daily, they are brought to Mombasa to be tried in a Kenyan court.
Agreements signed between Kenya and Britain, the United States and the European Union over the past 12 months, permit the transfers of prisoners, with 107 on trial in 11 cases. A further ten were convicted in 2006 and given seven-year sentences, although the law allows life terms. After Tuesday’s hearing, Oruko Nyarwinda, a smooth Mombasa-based lawyer with matching tie and handkerchief, told The Times that his nine clients were innocent. “These guys had a speedboat with two motors because it bears passengers crossing from Yemen to Somalia. The reason they were carrying a gun is because that place is risky,” he said.
The gun in question, a weather-worn AK47 rifle, lay on the courtroom floor, next to the witness box where David Georgios, the Romanian captain of the 21,000-tonne cargo ship MV Maria K, was giving evidence.
Mr Georgios said that on May 22, nine Somali pirates in a light-blue skiff bore down on the vessel, armed with a rocket-propelled grenade (RPG) launcher and assault rifles. He told the court that he heard the whoosh of a rocket fired at his ship. He picked out one of the suspects, a slim gap-toothed man with a pointed goatee beard, as being the one wielding the RPG.
The pirate attack was foiled by Mr Georgios’s evasive manoeuvres, swinging the 175m (575ft) vessel from port to starboard, buying time until the arrival of a helicopter from the nearby Italian frigate Maestrale. Italian Marines say that the suspects threw most of their weapons overboard before being apprehended, but at an August hearing one of the alleged pirates, Said Abdalah Haji, said that he and his friends were attacked by the Italian Navy and abducted to Kenya.
The court hearings reveal how difficult it is to prosecute gangs suspected of piracy. The trickiness of securing a conviction is why so many suspects are simply disarmed and sent back to Somalia, prompting consternation and calls for tougher action. But RearAdmiral Peter Hudson, commander of the EU anti-piracy fleet, has little time for such criticisms. “The rules of engagement are fine,” he told The Times. “The issue is that when I detain a mother ship in the middle of the ocean how do I get those pirates into a court of law?
“My aircraft has flown over it, I’ve seen skiffs, fuel, ladders, 15 pirates and no fishing gear, so it’s not out there for a Sunday afternoon sail [but] they haven’t committed an act of piracy.”
The difficulty of proving conspiracy to commit piracy in a court meant that unless the pirates were caught actually engaged in piracy, there was little chance of a conviction. It was “intensely frustrating”. The EU has sent 75 suspects to trial in Kenya, on what Admiral Hudson called “direct linkages ... I could have trebled or quadrupled that if we could prosecute for conspiracy”. All are held at the 50-year old Shimo La Tewa prison where 2,000 inmates are incarcerated, just up the road from Mombasa’s famous beach resorts.
Wanini Kireri, the officer in charge, called the pirates “a blessing in disguise” because as part of the deal by which Kenya tries pirate suspects, the judiciary and prison system is getting a minor upgrade. About $7 million (£4 million) in funding is being provided to support piracy prosecutions in Kenya and other courts in the region, notably in the Seychelles. As part of that, the United Nations Office on Drugs and Crime has provided mattresses and blankets, a new kitchen and a better sewerage system. The UN body has also provided support to the courts and lawyers.Mr Nyarwinda, who said he was providing his services without charge, criticised what he called a “lopsided” approach that he said stacked the odds against the suspects, with most funding going to prosecutors and magistrates.
Source:timesonline.co.uk/
Kenya phone firm eyes debt market again
NAIROBI, Kenya Dec 9 - After a successful second bond issue, listed telecoms company Safaricom said on Wednesday it could soon turn back to the debt capital market to raise more funds.
Safaricom Chief Executive Michael Joseph said depending on how the money from the bond is used, the capital market remained a sure and effective tool for raising finances for their network development.
“If need be we will come back into the market in 2010 so that we can have money to invest into our data network,” Mr Joseph said.
He was however not specific about when this would happen asserting that the company had already borrowed enough.
“Some investors say we have not borrowed but in my opinion we have borrowed enough. All that remains is to invest that money wisely,” he said.
He was speaking during the listing of Safaricom’s bond at the Nairobi Stock Exchange (NSE).
The telecommunications company recently announced it had raised Sh7.5 billion from the first tranche of its Sh12 billion target.
According to the Information Memorandum, the second Sh5 billion tranche will be issued in April 2010 while the remainder is expected to be launched in September 2010.
This marked 50 percent oversubscription of the intended Sh5 billion. He said money from the bond would be used to enhance data and Wimax networks.
“The Sh7.5 billion raised through this issue will go towards the financing of some key capital and operational projects, further consolidating our market leadership and sharpening our product and service offering in response to increasingly diverse customer needs,” Mr Joseph said.
The heavy investment in data is one of Safaricom’s strategies of repositioning the company as a complete telecoms operator.
He acknowledged the company has been consistently rolling out a steady stream of innovative products as a key plank in its push to increase data penetration in the market while leveraging on anchor stake in the TEAMS undersea cable and the substantial capacity recently acquired in SEACOM.
“To push this drive, we have acquired the exclusive usage of Jamii Telecoms’ expansive metro fibre network in key cities in Kenya. Last year, we acquired a majority stake in One Com and are in the process of a similar move on Packet Stream Data, both of which use Wimax technology,” he said.
From a recent tour to Europe, Mr Joseph revealed investors were very keen on taking up investment opportunities in the country.
He said contrary to popular belief, investors were unperturbed by the political environment in the country and instead focus on areas they could invest their money.
“They are quite unemotional about the politics, they are more interested in the way Kenya has been stable for some time and that there are good opportunities and a way to invest and get a return on their investment,” he said.
One area he said they were particularly interested in was the telecommunications sector which has witnessed renewed vibrancy over the years.
Source:capitalfm.co.ke/
Kenya seeks stronger trade ties with UAE
Dubai : The UAE is now Kenya's largest trading partner and the Nairobi government is actively and aggressively pursuing investment partners in its growing economy.
To further strengthen trade and tourism ties between the two nations, a high-level Kenyan delegation is currently visiting Dubai, a trip which also coincides with the first ever Kenya Week celebrations in the UAE.
Yesterday, Kenya's tourism minister, Najeeb Balala, held a press conference highlighting the setting up of an Arabic language portal for visitors to Kenya, and also announced the official opening of a representative tourism office to be operated for Kenya's Tourism Board.
In the first 10 months of this year, 9,317 visitors from the UAE visited Kenya, up from 7,688 in 2006, and 8,147 in all of 2007. Better exposure, improved airline links and a growing investment in Kenya helped spur the growth.
Balala said the investment in the tourism sector in Kenya would be largely exempt from VAT and levies imposed in other sectors, helping to spur growth investment by UAE companies. He said the taxes and levies would remain in place for all other sectors and goods.
Transferring funds
Asked about the mPesa system of transferring funds via cell phones — a method highly popular with Kenyan expatriates in the UK where the system is only available — Balala said that the private-sector system was very successful.
"Obviously it is a private sector initiative but it is one which we are very eager to see extended to all parts of the world," he said. Such a move would help Kenyan expatriates in the UAE with remittances to their native land.
The Kenyan delegation will be meeting with its expatriate community to gauge how best build on the strong ties between Nairobi and the UAE.
Balala stressed that his government had invested heavily in the roads and transport sector to improve Kenya's highway network, build and improve roads between major cities and tourist destinations. And as a matter of priority, the government is instituting a new rating system for hotels, encouraging the refurbishment of facilities and working to improve hygiene in the nation.
He said his government has no plans to introduce restrictions on foreign ownership of property in Kenya, acknowledging that overseas owners had helped increase the cost of housing.
The tourism minister said Nairobi is committed to improving ties and tourism opportunities between the two countries, and he said Kenya would be actively participating in the global village expo in Dubai.
Kenya Week activities wrap up tomorrow.
Source:gulfnews.com/
Kenya shilling firms vs dollar, may gain further
NAIROBI (Reuters) - The Kenyan shilling strengthened against the dollar on Thursday, after touching the 76.00 level in the previous session, which traders said was a natural correction ahead of the festive season.
At 0755 GMT, commercial banks quoted the local unit at 75.70/80 per dollar compared with Wednesday's close of 75.90/76.00.
Traders said the move was a predictable stabilising of the shilling after recent pressures on it as importers had made last minute festive purchases.
"It is a natural correction after recent losses," said Benson Kaburu, a senior trader at Standard Chartered Bank.
Traders said they expect the shilling to stay rangebound for the rest of the month between 75.40 and 76.00 because trading will slow for the Christmas period.
"It is going to be a very dull rest of the month. With lots of people off for the festive season I don't expect much activity until next year," Kaburu said.
However, traders at Bank of Africa expect some muscling by the shilling on the back of dollar inflows by Kenyans abroad sending their families some spending money for the holidays.
Tea and horticulture exporters are also expected to give the local currency a boost and a 20-year Treasury bond issued by the government on Wednesday may draw some foreign investor demand, they said in a regular market report.
Source:af.reuters.com/
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