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Courtesy : Kenya Broadcasting Corporation, Posted: Mon, Jan 18, 2010
CFC Stanbic financial service providers Monday predicted a three to four percent growth domestic product (GDP) for this year's first quarter, with the shilling expected to be strong from foreign investments as well as Diaspora remittances.
According to CFC there is also an expected growth in the tourism transport and communication, whole sell and retail business sectors which they have projected to hit approximately 7 percent, double the rate of the GPD.
Presenting the quarterly economic and market outlook report at a Nairobi hotel on Monday, CFC financial services head of research Judd Murigi said that, treasury bills will face a major downward pressure due to increased demand while attention will shift to foreign investments with high liquidity.
"Tourism transport and communication, real estates and construction, banking, wholesale and retail trade are expected to perform well in 2010" he said.
Murigi said that the Nairobi stock exchange 20 index share is expected to exceed 4,000 point in 2010,with the report indicating increased activity at the back of renewed interest in equities at the NSE both local and foreign investment.
According to the report tea production is expected to increase while market prices are likely to drop "Coffee production is expected to decline while horticulture will recover but not to pre crisis level" he said.
On the global economic scene,economic growth is expected to pick up during the year with different regions recovering at varying rates' He said " the risk of double depressions remains as many economies continues to struggle with diverse related global monetary and fiscal stimulus.
He further said that the political direction of the coming referendum is likely to affect local investments and predicted that a successful referendum will boost investor's confidence.
Written By:PMPS, Posted: Sat, Jan 23, 2010
Prime Minister Raila Odinga Saturday at Mbita town launched the historical 43kilometres long Mbita -Homabay road to be constructed at a cost of 3.4billion Kenyan shillings.
The Premier, who hailed the project as a "major milestone" geared towards opening up the lake region for socio-economic development, said that the road which will be upgraded to bitumen standards is expected to be completed in the next 30months.
He said that the government was committed to achieving the aspirations of the vision 2030 by improving infrastructural facilities in the whole country adding that the government will continue constructing roads all over the country to improve the communication network.
"As a government, we are taking major strides and investing in roads, electricity, water and roads all over the country because we know that infrastructure is key to economic development". He said.
The PM regretted that forty six years after independence the main road leading to Rusinga Island, a highly prospective tourism hub had continue to be in an awful state.
"It is shameful that no road goes to the late Tom Mboya's final resting place despite the fact that he was a great statesman and one of the founding fathers of country. The PM noted.
Raila called on the contractor Put Sarajevo General Engineering Company to expedite the construction work and finish within the agreed time.
The PM however cautioned road users in the country to be cautious to avoid accidents that lead to unnecessary lose of life.
He also warned lorry drivers against overloading that leads to the decimation of our roads and called on the police especially at weigh not bridges not to compromise, but apprehend those contravening apt road use regulations.
The PM expressed optimism that the country will have a new constitution soon -and noted that most Kenyans were looking forward to a new constitutional dispensation.
"I am optimistic that we shall all agree and give this country the much awaited constitution". He said adding that both the two Principals had deliberately opted to stay clear of the constitution making process to avoid influencing any side.
'This is a noble process as the constitution belongs not to us but to Kenya and to over 40 million Kenyans." He said.
However, the PM said that a referendum will be carried out since it is stipulated in the current statutes.
He was responding to calls by leaders who suggested that since there appears to be a consensus among Kenyans then there should no referendum but instead the funds earmarked for the same exercise be channeled to kazi kwa vijana programme to create additional employment opportunities for the youth.
Among those in attendance included ministers Franklin Bett, James Orengo,Otieno Kajwanga who also the Mbita MP.
Others were MPs Elizabeth Ongoro, John Pesa, James Rege,Omondi Anyango,Paddy Ahenda among others
Written By:Judith Akolo, Posted: Fri, Jan 22, 2010
Over 50,000 mango and passion fruit farmers in Kenya and Uganda are set to benefit from a Sh 862 million grant from the Bill and Melinda Gates Foundation.
The money which is part of the 1.4 billion US dollars set aside by the Foundation to fund agricultural growth and expansion around the globe will see the farmers access better quality seed.
The increase in yields and high production will find a ready market at Coca Cola East Africa for processing into fruit juices.
Coca Cola East Africa General Manager in charge of Stills, Lionel Marumahoko said this grant and partnership will see a greater multiplier effect on farmers incomes in, Western, Rift Valley, parts of Central Province and Eastern Uganda.
He said the recent move by Treasury to lower excise duty on soft drinks and water, is already encouraging manufacturers to venture into the business and will have positive results on the local economy.
Many juice manufacturing companies in Africa depend on imported fruit juice concentrate to produce fruit juices. With the new development, being implemented by the Ministry of Agriculture and Technoserve will the much needed knowledge and services to improve their farming technology while also improving their incomes.
"This is a very important initiative, because it seeks to support small holder farmers, many of whom have had low incomes from their farms," said Marumahoko.
The Bill and Melinda Gates Foundation, Program Officer in charge of Global Development, Richard Rogers noted that the project is aimed at contributing towards poverty alleviation through sustained increase in agricultural productivity.
Written By:reuters, Posted: Thu, Jan 21, 2010
Kenya has been urged to keep assessing its economic performance before reducing or removing its fiscal stimulus.
World Bank's country director said although the global economy was on the rebound removing the fiscal stimulus altogether would be premature.
Speaking to reuters on Thursday "There is still a possibility that we are going to see a further dip. It's just going to be a question of the government monitoring macroeconomic indicators, and particularly inflation levels, to see what actually is appropriate going forward."
The government put in about 1 percent of its gross domestic product as fiscal stimulus in its 2009/10 budget after suffering the triple shocks of post-election violence, drought and global economic slowdown.
The World Bank estimates that Kenya's economy grew by 2.5 percent in 2009 from 1.7 percent the previous year and forecasts expansion of 3.5 percent this year.
Zutt said the bank hoped to disburse $200 million for Kenyan projects this fiscal year, from $150 million over 2008/09.
It is also looking into a $300 million electricity expansion project, a $100 million municipal development programme and a $60 million youth empowerment plan
From princes to politicians, rock stars to rock climbers, footballers to farmers, the Range Rover has always appealed
There are two types of money men in this country: the haves and the have Range Rovers. And now, the machine that defines the ultimate blend between luxury and off road performance just turned 40.
No mid-life crisis here. And certainly no desire for slapdash recognition. For the Range Rover has over the years established itself as a signature marque for captains of commerce and industry and politicians. There has been no shortage of superlatives to define this car: King of kineticism; car of cars; phantom of opulence; zoom raider among others. As I drove down memory lane with this car on a cold autumn in Johannesburg recently, it was easy to see,and feel, the philosophy behind Range Rover’s success. From the utilitarian 1970 original two-door (known as the Classic) to the 5.0L V8 Supercharged road yacht released late last year, Range Rovers go off-road with as much verve and vivacity as they do on-road.
To celebrate this milestone, Land Rover recently launched a limited edition Range Rover Autobiography Black. “The Autobiography Black represents the very best Range Rover has to offer and is a fitting tribute to a vehicle that has consistently set the highest standards for all-terrain performance, luxury and design for the last 40 years,” said Phil Popham, the company’s managing director. Autobiography Black has a unique finish in Barolo Black, with interior choice of colours being Jet and Ivory, or Jet and Pimento.
The Range Rover was the brain child of one Spencer ‘Spen’ King, a “go fast, turn-right” kind of person. His first design, conceived in 1966 was known as the ‘100-inch station wagon’, thanks to its big tyres and coil suspension. Coils were a first for four wheel drives. The first commercial version of the Range Rover went on sale four years later and there have been two model changes since. These are the P38a in 1994 and the L322 in 2001.
Sixty seven years after it was founded by AKC Popat, Simba Colt Motors Group, best known locally as dealers in Mitsubishi cars, is aggressively expanding under the stewardship of his son AdilBy Alex Gichira
The business empire that Abdulkarim Chaturbhai Popat, popularly known as “AKC”, the grand old man of Kenya’s motor industry, built is going through a transformation as Adil Popat his son positions it for growth in a rapidly changing landscape. Adil has been driving the business into new segments forcing some observers to wonder if he isn’t overstretching it. But as the pieces fall into place, his strategy is becoming clear.
Simba Colt Motors Group was started by the senior Popat in 1943 to sell used cars. After independence, the business blossomed on the back of the Mitsubishi franchise. Today, it is an integrated business group with controlling interests in motor sales and service, hospitality, investment and financial services.
“Simba Colt Motors Group is one of the most successful indigenous commercial organizations,” says the younger Popat. Simba Colt Motors, the group’s flagship is a market leader in new vehicle distribution in Kenya with extensive service facilities. It is the market leader in vehicle leasing with more than 400 units under lease and holds the franchise for Avis, the car rental company.
Since 2007, when he took over as chief executive, Mr Popat has focused on consolidating the group’s success and preparing it for the future. He is overseeing the expansion of Simba Colt’s facilities and has put more than KSh150 million in Bavaria Auto Ltd., a new subsidiary that has exclusive import rights for BMW. At the same time, the Group is putting up a four-star hotel along Chiromo Road and a lodge in the Maasai Mara. Soon he says, it will venture into real estate development.
The group has also been filling its senior ranks with high profile professionals who include Dinesh Kotecha, the Group General Manager who joined after working with PriceWaterhouseCoopers (PWC) for over 16 years and Thiagarajan Ramamurthy (TRM), the Group Chief Investment and Operations Officer, who was until February this year the operations director at Nakumatt Holdings, the regional retail chain giant.
July 11 2011
Nairobi — The smooth tarmac road from Nairobi to Eldoret town and the popularity of 11-seater public service vehicles notwithstanding, air transport is growing in Eldoret. Business at the Eldoret International Airport is heading north even as the much awaited county governments take shape. Competition in the aviation industry has also seen some airlines reduce fares.
Tourism has also been boosted following the opening up of the North Rift Tourist Circuit. Airport management says it is set for the opportunities that come with the on-going marketing of tourism beyond the Maasai Mara and Coast Province.
Horticulture industry is faring badly as adequate volumes to enable direct flights to foreign markets are yet to be reached.
Airport manager Peter Wafula says both cargo and passenger bookings have increased with an average of 80 per cent booking for airlines, up from 65 per cent.
"Unlike before when airlines recorded reduced business to an extent of some thinking of other towns, additional passengers translate to a booming business for the airlines and the airport," he said.
Jet link and Fly540 are the main passenger aircraft operating from the airport whereas an airbus-A-310 and 747 Jumbo are the cargo planes that touch down once a week.
"For passengers, we have three flights on Friday, Saturday and Sunday and two on the rest of the days up from the one a day.
"This translates to good domestic growth and we are glad the airport is ever busy with arrivals and departures," said Mr Wafula.
Other airstrips run by the airport have also seen improved business and plans are underway to rehabilitate those that are in bad shape.
Tourists keen to access areas that are impassable yet have fascinating sites, Mr Wafula says have an option of flying there, with ease.
There are direct flights from Wilson airport to Lodwar airstrip direct with two airlines operating per day on the route.
There is another one that briefly lands at the Kitale airstrip before proceeding to Lodwar.
"The Kitale airstrip will be given a facelift as part of our concerted efforts to improve service delivery.
11 October 2010
Trade volume between Kenya and India is projected to hit $2.1 billion (Sh189 billion) this year with expectations that the balance of payments deficit will improve.
Sibabrata Tripathi, India's High Commissioner to Kenya says within the first four months of this year, trade volume was at $700(Sh63 billion) million and continues to grow.
Though the balance of trade is still tilted in favor of India, the envoy said in an interview, Kenyan exports to the Asian country grew at a 60 per cent rate last year and foresees higher growth owing to progress in sectors like tourism and agriculture. "People in India are looking for different experiences in different parts of the world, Kenya is arousing a lot of interest as the place they can mix business and pleasure, there is increased interest from Indian tour and travel companies as demand rises," said Tripathi.
According to the ministry of Tourism, India has become the primary source market for Kenya in the Asian region, with arrivals reaching 47,611 in 2010, 32 per cent growth from four years ago.
n 2010 the goods trade between the two amounted to $1.5 billion (Sh135 billion), where Kenya exported commodities worth Sh9.64 billion to India while importing Sh117 billion and improvement from 2007 when exports to India were worth Sh5 billion compared to Sh56.85 billion imports.
Main goods exports to India are soda ash, lentils, and cashewnuts from Kenya. "We would love to import more from Kenya, agriculture is one area where there is great potential, Kenyan businesspeople should visit our market of over 1.2 billion consumers and identify opportunities," said the envoy.
There is still high interest in the other service sectors with over 30 Indian companies in Kenya, spread across various sectors like ICT, banking, insurance, engineering, and agriculture.