Kenya Economy – Mombasa Info Tue, 28 Jun 2022 14:04:37 +0000 en-US hourly 1 Kenya Economy – Mombasa Info 32 32 Rigathi Gachagua blames Uhuru Kenyatta and Fred Matiangi for the growing insecurity Tue, 28 Jun 2022 14:04:37 +0000

During a Kenyan Kwanza Economic Forum in Laikipia County, Gachagua pointed the finger at President Uhuru Kenyatta and Interior Minister Fred Matiang’i, claiming they were not properly performing their duties.

Citing Laikipia’s previous publicity of insecurity, Gachagua expressed disappointment to the head of state and Matiang’i for not responding quickly when innocent Kenyans lost their lives to the insecurity.

I was President Kenyatta’s personal assistant for seven years and this time I called him and told him that he had failed the Kenyans, especially the people of Laikipia who elected him.

The Minister of the Interior, who is also entrusted with such uncertain cases, acted negligently. He claims to be a performer but I want to tell the Kenyans that his job is just to get fat‘ Gachagua said.

Laikipia has suffered from insecurity since 2021 when bandits invaded some nature reserves, resulting in the deaths of police officers and thousands more civilians who were displaced in the ensuing chaos.

MP Mathira also stressed that he and the residents of Laikipia will forgive the President for other mistakes, but not the cases of insecurity in Laikipia that led to the residents’ deaths.

We will forgive the President for wrecking the economy, for bringing the opposition into government, but we will not forgive him for sitting and watching the deaths in Laikipia when the country has enough police and military” he said.

In the past, Gachugua has been seen attacking the government when he criticized police officers’ uniforms, claiming that police officers had suffered at the hands of the cabinet’s home secretary and his chief secretary – Fred Matiang’i and Karanja Kibicho – and he is keen to finish everything.

You’ve been through a lot through Matiang’i and Kibicho. We will change the blue uniform that our officers don’t want and go back to the previous one. We will return the blue one to the PCEA Church. It’s the uniform of the women’s guild,he said.

What significance does Africa have for the West, for the world? (8) – Businessamlive Mon, 27 Jun 2022 01:54:22 +0000

The COMMONWEALTH CONFERENCE, also known as the Commonwealth Heads of Government Meeting (CHOGM), came to Africa again last week, this time in Kigali, the capital of Rwanda. Since the founding of the Commonwealth in 1949, Africa has hosted more conferences than any other continent with Commonwealth countries. With the Kigali event, Africa has hosted no fewer than six times. In 1979 the fifth CHOGM was held in Lusaka, Zambia, while the next in Africa was held in Harare, Zimbabwe in 1991. In 1999 the 16th CHOGM was held in Durban, South Africa and the 18th CHOGM in 2003 in Abuja, Nigeria. In 2007 the 20th meeting took place in Kampala, Uganda. This time, however, Kigali had it. At first glance, the frequency with which the continent has hosted the meetings might suggest its relevance. But whether such conferences have led to a measurable development for the host countries or the continent is questionable. The Commonwealth is a loose federation of 54 countries on all inhabited continents with a total population of 2.4 billion people, almost a third of the world’s population, of which 1.4 billion live in India and 94 percent live in either Asia or Africa.

In Africa alone there are 19 Commonwealth member states, seven of which are landlocked. Over the years, the Commonwealth has gained and lost a number of members. Some of today’s members were never colonized by Britain: two examples in Africa are Rwanda and Mozambique, which became members in 2009 and 1995 respectively. Robert Mugabe took Zimbabwe out in 2003 after its membership was suspended over reports of vote-rigging. A decision has not yet been made on his readmission application from 2018. Pakistan was reinstated four and a half years after being suspended over a 1999 military coup. Much earlier, South Africa, which was one of the founding members, resigned in 1961 after being criticized by Commonwealth members for its apartheid policies. After the fall of the apartheid regime, she became a member again in 1994. The Maldives was the last country to leave the Commonwealth in 2016 but rejoined in 2020. Despite the entries and exits, member countries had a combined GDP of US$13.1 trillion in 2021 and it is estimated that it will reach nearly US$19.5 trillion in 2027, doubling from US$10.4 trillion in ten years US dollars in 2017.

But what does the Commonwealth promise for African member countries today? From a socio-economic point of view, especially in trade relations, the African member countries are known not to have much in common. Altogether, the 19 countries of Africa in the Commonwealth have a combined population of 583.99 million, far exceeding the population of the 27 countries that make up the European Union, which has 447 million people. It’s more of a guess as to whether Africa’s population of over half a billion has turned into a vibrant market, with Botswana, Eswatini, Gambia, Lesotho, Mauritius, Namibia and the Seychelles at 2.35 million, 1.16 million, 2, 42 million, 2.14 million, 1.27 million, 2.54 million, and 0.10 million, respectively. Those with moderately large populations include Rwanda with 12.95 million, Sierra Leone with 7.98 million, Zambia with 18.38 million and Malawi with 19.13 million. Cameroon’s population is still an estimated 26.55 million. Mozambique and Ghana have almost the same population at 31.26 million and 31.07 million respectively. Uganda has registered 45.74 million people, Kenya rising to 53.77 million, while Tanzania and South Africa are shoulder to shoulder with 59.73 million and 59.31 million respectively. The highest of all is Nigeria with a current population estimate of 206.14 million people.

While Britain’s GDP in nominal terms was recently estimated at US$3,108 billion in 2021 according to the IMF, India’s GDP was US$2,946 billion according to the same IMF estimate. Nigeria’s economy, considered the largest in Africa in terms of nominal GDP, was valued at US$446.543 billion, while South Africa’s was US$349.299 billion, Kenya’s US$79.511 billion and Tanzania’s US$51.725 ​​Billions of US dollars have been estimated. Most other economies considered significant each have a GDP of less than US$50 billion. Examples include Ghana at $47.032 billion, Cameroon at $34.006 billion, Uganda at $26.349 billion and Zambia at $25.504 billion. According to some comparisons, the economies of two of the African countries in the Commonwealth are comparatively lower than those of some Caribbean developing small island countries. Gambia is comparatively lower than Grenada in terms of both absolute GDP and GDP per capita. For Grenada, the national nominal GDP of US$1.111 billion and GDP per capita of US$10,360 are higher than Gambia’s US$1.038 billion and GDP per capita of US$1,015. Another example is Fiji with a nominal national GDP of US$5.054 billion and a GDP per capita of US$5,740 compared to Sierra Leone with a national GDP of US$3.897 billion and a GDP per capita from $491.

The British Commonwealth’s relationship with Africa is long-standing and aid contributions remain substantial. Trade in goods between the UK and the continent is marginal, however, with less than 2% of UK exports and just over 2% of imports coming from African countries. It doesn’t appear that Africa is considered significant in trade relations with Britain. The kind of assistance Africa desperately needs to boost investment in infrastructure and links to finance is not coming at an encouraging pace or scale. Over the years, the UK seemed to have been slower to promote trade links across Africa and lagged behind in its trade ties with Africa. But more recently, China’s Belt and Road Initiative seems to have filled some gaps in Africa, pulling many countries away from their traditional trade and development partners. As of June 2022, French President Emmanuel Macron has visited 10 African countries once and seven African countries twice since taking office in 2017. By contrast, British Prime Minister Theresa May visited Africa in August 2018, where she pledged £4 billion (US$5.1 billion) to support African markets. Furthermore, she should have used this visit to serve the strategic interests of both Britain and African countries. But she only visited South Africa, Nigeria and Kenya. Of the 55 foreign trips he has made since becoming British Prime Minister in 2019, Boris Johnson has only visited a country in Africa once and that country is Rwanda. He hasn’t even had the larger economies in Africa on his radar since then, and that speaks volumes.

The British Prime Minister’s visit to Africa is of strategic importance. It is one of the ways to achieve developmental benefits on the continent. There are many opportunities in different sectors, particularly for developing skills in innovative technologies such as off-grid solar energy. Vibrant two-way trade between the UK and Africa will be very rewarding, particularly as African companies gain access to the UK market; and as African exports are made more competitive. If the UK had viewed Africa, the second most populous continent in the world, as too important to ignore, it would have nonetheless made its relationship with the continent part of its post-Brexit strategic ally, as part of its goal of “its global Partnerships.” Prior to Brexit, Africa was jettisoned by Britain as its attention focused on the EU market, disrupting the Commonwealth’s relevance to Africa and other countries. How true are the claims that a UK exit from the European Union would create opportunities for the UK to escape the EU’s blatant protectionism and ponderous domestic politics to pursue a more liberal and globalist Commonwealth-based trade agenda? How were some African countries able to access the EU market through the UK before and after Brexit?

In Brexit policy, as in any other form of politics, many plausible arguments have been made. Exit activists had claimed that by joining the European Economic Community (EEC) preferential trade agreements in 1973, Britain had “betrayed our relationship with the Commonwealth”. In the language of Eurosceptic activists, by joining the EEC Britain had turned its back on the world – and particularly on historical friends and partners – and opted for a more continental and less ambitious foreign trade policy. David Davis, Boris Johnson, Daniel Hannan and Fraser Nelson stood out among the Eurosceptics and spoke out loudly before and after the June 2016 referendum on UK membership of the EU. David Davis, in particular, had suggested in 2016 that the EU’s need to balance the interests of 27 member states when negotiating trade deals with external partners “has had devastating consequences for the UK, particularly in relation to trade relations with the Commonwealth. In their arguments, the EU’s cumbersome internal bargaining structures – as well as “protectionist forces in Europe” – according to Boris Johnson – aim to constrain the UK’s ability to forge trade links with the wider world. Talking can be cheap sometimes. Since July 2019 when Boris Johnson became UK Prime Minister and after Brexit almost three years ago, are the EU constraints still there? While the UK was still part of the EU, the African countries of the Commonwealth were intertwined with the EU’s own system of external economic relations under the EU’s system of preferential trade relations in the Africa, Caribbean and Pacific (ACP) group.

But the internal effects could not be denied either, including the indirect severing of the Commonwealth’s direct trade links with the United Kingdom and the gradual erosion of the latter’s influence – albeit diminishing – over Commonwealth countries. Economic Partnership Agreement (EPA) negotiations have in most cases failed to meet the EU agenda for full liberalisation. From the perspective of developing countries, the stringent requirements, which can easily be interpreted as non-tariff barriers to trade, pose a major hurdle, particularly the gradation of tariff levels by value-added level, which is designed to subtly discourage African countries and Caribbean and Pacific countries from preventing their export into the EU as they have effectively pushed those countries to the fringes of the global value chain. Or should it be safely concluded that with or without Brexit, Africa will remain a distant economic partner of the UK? Wouldn’t countries like China, Japan and Russia be right in their aggressive push to build economic ties with African countries? Why does Britain seem indifferent to Africa? And when will this attitude change? A better way to prevent the massive influx of migrants or to deport those who continue to enter illegally – as was found earlier this month in the case of illegal immigrants from Rwanda – is to create incentives that create sustainable livelihoods and discourage mass exodus. And that is within the power of the UK if it really wants to.

The current pain is not only due to Ukraine, the Covid-19 pandemic Fri, 24 Jun 2022 21:01:50 +0000
A shopper at a Samrat supermarket in Nyeri. [Kibata Kihu, Standard]

The government has told anyone willing to listen that the current economic crisis stems from the war in Ukraine and the ongoing impact of the Covid-19 pandemic’s supply chain disruptions.

Industrial fair. A significant part of the inflationary pressures being felt around the world stems from these twin shocks. In this sense, Kenya is not unique.

However, different countries have different experiences of inflation. In many ways, the twin shocks have exposed countries whose economies have been struggling.

Unfortunately, ours is one of those affected in this way. We borrowed beyond our means.

We have killed many domestic private companies through burdensome taxation and regulation, choosing instead to kneel at the feet of increasingly elusive foreign investors.

And we like to continue to operate as an economy in the so-called periphery, which supplies little more than raw materials for the world market. Kenyans are injured.

This can be seen both in price stickers in supermarkets and in the increase in criminal activities among desperate unemployed young people.

After the elections, the next government is unemployed. You have to stabilize our debt situation (with a high risk of default).

They also need to decartelize large parts of the economy so that we can grow out of some of the debt.

And above all, they must seriously think through a transformative reorientation of our economy to improve productivity in all sectors and increase our people’s share of stable employment.

This is before they even think about sectors like agriculture, education, health and water, which the Jubilee administration essentially ran aground in the last decade’s “deals” binge.

Regardless of who wins in August, the political elite, in their habit of playing games with Kenyan life, are quickly running out of runways.

They have only two choices: either they reform the economy on their own terms, or history will soon marginalize them.

The author is an assistant professor at Georgetown University

Transport chaos reveals the true cost of greed

From faulty vehicles, speeding, inspection gaps, reckless crews, corrupt enforcers, and fake driver competency tests, the chaos is enough to make those responsible resign.

Kune Food closes almost a year after starting operations in Kenya – TechCrunch Wed, 22 Jun 2022 17:35:25 +0000

Kune, a Kenya-based startup that started as an on-demand grocery delivery service before morphing into an online restaurant in recent months, has shut down today, affecting 90 employees, some of whom were just hired in the last month became .

The startup was founded in December 2020 and conducted a trial in Kenya in the first months of 2021 before officially launching operations later this year.

In a LinkedIn post, Robin Reecht, the startup’s founder and CEO, announced the closure after failing to raise funds to keep operations running, blaming the “economic downturn and tightening investment markets.”

A year ago, Kune Food raised $1 million in pre-seed funding and also borrowed an undisclosed amount from a bank in Kenya. Earlier this year, the startup announced it would raise $3.5 million from local and international investors to increase its production capacity.

“Since the beginning of the year we have sold more than 55,000 meals, acquired more than 6,000 private customers and 100 corporate customers. But $3 a meal just wasn’t enough to sustain our growth… Combined with rising food costs that were hurting our margins, we just couldn’t keep going,” he wrote.

Below is Reecht’s full statement.

Sad day. Kune Food is closed today.

Since the beginning of the year we have sold more than 55,000 meals, acquired more than 6,000 private customers and 100 corporate customers. But $3 per meal just wasn’t enough to sustain our growth.

Given the current economic downturn and improving asset markets, we were unable to top up our next round. Coupled with rising food costs that were hurting our margins, we just couldn’t go on.

My first thoughts go to my team. You put your heart and soul into building the Kune that so many people loved. I’m very sorry it didn’t work out.

To all my fellow entrepreneurs, please visit Kune’s “Employee Page” on LinkedIn and see if some of our team members could fill your staffing needs. I know these are difficult times for you too. But they are great people who will add tremendous value to your business. You can call me if you need Kune staff references.

My second thought is for our investors. Some of you joined the Kune journey when just me and a chef delivered food on foot to a nearby office. Some others joined later and helped us grow into a foodtech startup with a technology platform, a factory, a kitchen studio, 7 distribution centers, 6000 customers and a team of 90 people. Not only have you invested in Kune, you have given us your time, mind, connections and emotional support. I am very sorry that Kune’s vision did not come true. To betray your trust is something I will never forgive myself.

My third thought goes to suppliers, customers, bankers and partners of all kinds who have supported us on our way. I’m really sorry for the result.

A lot could have been done differently, certainly better. The coming months will allow us to reflect on Kune’s failure, and I hope to report on that when the time comes.

If you know anyone who may be interested in acquiring Kune’s intellectual property or assets, please PM us.

Kind regards,

This is an evolving story.

Kenya: Ministry signs agreement to improve access to breast cancer treatment Breast cancer is the most commonly diagnosed cancer in Kenya, with 6,000 cases diagnosed each year Tue, 21 Jun 2022 06:16:08 +0000

The Ministry of Healththe National Health Insurance Fund (NHIF) and Roche today signed Letters of Intent (MOU) making Herceptin, an innovative breast cancer treatment, available to all NHIF members with no cash match payment. This is the first national cancer drug access program in Kenya-Ministry-signs-agreement-to-enhance-access-to-breast-cancer-treatment-Breast-cancer-is-the-mo-40771549/”>Kenya and an important step to ensure Kenyan women with breast cancer have access to standard care. As part of the agreement Roche will also support capacity building and training NHIF and Department of Health Employees by independent, external experts on data management, health economics, pricing and reimbursement approaches. In addition, the agreement will see Roche continue to strengthen screening and early diagnosis of patients and referral pathways to treatment centers.

Signing the MOU today, Susan Mochache, Secretary of State for Health, said: “Cancer is one of the greatest public health challenges of our time. 6,000 cases of breast cancer are diagnosed Kenya every year, causing suffering, emotional trauma and financial stress. The Ministry of Health is already increasing screening and diagnostic services in national and regional facilities nationwide to reduce the burden of breast cancer. Today’s letter of intent with Roche represents the next step in our focus, ensuring breast cancer patients now receive the care they need through the NHIF at no co-payment. This means they can focus on their health and well-being and financial burdens don’t have to hamper access.”

Breast cancer is the most frequently diagnosed type of cancer in Germany Kenya, with 6,000 cases diagnosed each year and 2,500 deaths from breast cancer. The economic burden of breast cancer is significant, reflecting health care expenditures and lost productivity due to morbidity and premature death from cancer. Early detection combined with effective treatment through surgical removal, radiotherapy, or drug therapy (hormonal, chemical, or biological therapies) can achieve survival rates of 90% or more.

Expelled from APO group on behalf of Ministry of Health, Kenya.

© African Press Organization, source press releases

Hoteliers asked to identify skill gaps to accelerate recovery efforts » Capital News Sun, 19 Jun 2022 12:06:58 +0000

NAIROBI, Kenya, June 19 – The government has called on the Hotel Owners and Caterers Association of Kenya (KHAC) to task the National Industry Training Authority (NITA) with developing a robust action plan to help the sector recover.

At a symposium convened by KHAC, Jackson Kalla, Chief Administrative Secretary for Labor and Social Protection, urged stakeholders in the tourism sector to identify industry skills gaps as a key action to foster growth.

He urged hoteliers to conduct skill audits to identify skill gaps in the industry.

While endorsing the partnership, he urged members of the industry to work with NITA to develop a curriculum that addresses the needs of the industry while underscoring the importance of NITA’s framework for recognizing prior learning. He said this is a step to recognize the importance of the informal labor sector.

“The government has found ways to use the skills of people without formal education. Experience also plays a role here in order to get accepted into the job,” he said.

Kalla acknowledged that the containment measures introduced by the government to curb COVID-19 infections adversely affected various sectors of the economy, with the tourism industry being one of the hardest-hit sectors.

He said that while the industry has been hit hard, it is crucial that sector stakeholders learn from the experience of COVID-19 to build resilience.

Kallas’ views were shared by Mike Macharia, CEO of KAHC and NITA Board Director.

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Macharia stressed the need for tourism stakeholders to engage and innovate strategies to rebuild the tourism sector across the board.

He noted that while the industry has been significantly impacted since the outbreak of the pandemic, sector players have increased their investments in the local market.

“If 70 percent of Kenyans are consumers, we can survive any tragedy. It will take about four years for hotels to recover because hotels are expensive to maintain. But the majority of workers have gone back to work and are earning according to their contracts,” Macharia said.

Celebrating Kenyan Nightlife – Business Daily Thu, 16 Jun 2022 21:01:11 +0000


We celebrate the robustness of Kenyan nightlife

Dj Xclusive (left) and Meera Kaira pose for a photo during the Save the Night event hosted by Jägermeister on June 09, 2022 at the Noir Gallery. PHOTO | FRANCIS NDERITU | NMG

Kenyan artists, bartenders and creatives gathered over the weekend to celebrate the revival of nightlife after debilitating Covid-19 restrictions.

Hosted by Viva Global Kenya, the distributor of German spirits brand Jägermeister, which created the Meister Drop-Ins – virtual parties to which paying fans are invited – it was a celebration of resilience in the face of adversity.

“Jägermeister knew about the negative effects at the beginning of the pandemic. As a result, the company launched its global #SAVETHENIGHT program, which spanned various charitable initiatives to raise money for those whose passion, skill and hard work power and inspire nightlife,” said Viva Global Business Development Manager Meera Karia.

The campaign was primarily designed to support nightlife and entertain its audience during the pandemic lockdown.

In Kenya, they collaborated with various artists such as Ed Wainaina, a talented muralist, and various mixologists such as Monica Rungu and Malesi, who presented new cocktails with Jägermeister.

On the music scene, Foozak, Dylan-S, Dj Vidza, NU FUNK, Dj Exclusive and a few others took part, as did Metamorphised, an aspiring young talented streetwear clothing artist.

Kenyan percussionist Kasiva Mutua praised the virtual parties. “There are people like me around the world who haven’t been able to work during the toughest of lockdown periods and there were people around the world who were looking for entertainment. Master Drop-In connected us with a click or two. We got to work and the virtual partygoers were entertained.”

Dj Exclusive said: “When I got the call I was happy, but when the check came I was overjoyed as I was able to pay my landlord four months’ rent in advance. That was the end of me.”

Another artist, Patti Endo, said the parties gave him creative freedom to express himself.

“It was very fulfilling,” he said.

In the end, Master Classes produced a series of free online tutorials with the participating nightlife masters on various topics such as cocktail making, deejaying or tattoo art.

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According to Keroche, 10,400 employees will lose their jobs after KRA closed its factory again Tue, 14 Jun 2022 14:09:07 +0000

NAIROBI, Kenya, June 14 (Reuters) – Local brewery Keroche Breweries has asked the Kenya Tax Authority (KRA) for a moratorium on paying Sh322 million in tax arrears, noting that the tax official allowed the Naivasha-based brewery to operate despite initial agreements in May.

The company’s chief executive, Tabitha Karanja, said in a statement that on May 15 the tax officer took enforcement action and closed the brewery, leaving 10,400 employees unemployed and making life difficult for several farmers who now no longer sell their products to the brewery can sell feasts.

“After negotiating with a large team of your commissioners and top officers, we were forced to enter into an agreement which the company’s performance could not support in its implementation. Our requests for a deadline to resume payment when full operational performance was reached were denied, but KRA promised that we would walk the path of recovery together,” Karanja said.

“Unfortunately, on May 15, 2022, without prior notice, KRA took enforcement action and closed the brewery,” she said in a statement seen by Capital FM.

In March, the brewery closed due to accumulated tax arrears, but Keroche later asked for an 18-month grace period to resume operations and stated his willingness to sit down with KRA again to create a more realistic payment schedule.

It later reopened and was given 24 months to pay tax arrears, starting with goodwill of sh21million.

But it is now appealing to the government to give it more time to get back on its feet as a manufacturer, employer and business entity and meet its commitments.

“KRA’s draconian measures against Keroche Breweries Limited do not take into account the difficult times our economy is going through which is seriously threatening many jobs and livelihoods. KRA’s deliberate actions also do not recognize the difficulties employers have faced due to the disruption caused by the Covid-19 pandemic, as well as the severe strain that manufacturers’ business ecosystems have suffered,” Keroche said in a statement.

Among his concerns is that the feud with KRA has destroyed its distribution network and increased its risk levels at many banks, which are now reluctant to fund its operations.

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“KRA’s actions to issue agency notices to all banks in Kenya have created a harsh investment climate. Some banks with whom we have arranged financing are struggling because frequent closures increase the level of risk. Our distribution network, broken by Covid-19, is much harder to repair,” Karanja said.

“Our distribution network, which was broken by Covid-19, is much more difficult to repair,” she criticized.

Kenya plans to cut funding for tourism marketing in Japan and Italy Sun, 12 Jun 2022 21:03:55 +0000


Kenya plans to cut funding for tourism marketing in Japan and Italy

Tourism CS Najib Balala. FILE PHOTO | NMG

Kenya plans to cut marketing spend in three traditional tourism source markets to free up advertising budgets in favor of five new markets such as China, the United Arab Emirates (UAE), Saudi and South Korea, which have high visitor and revenue potential.

The Ministry of Tourism and Wildlife said it will cut campaigns in markets like Italy, Switzerland and Japan due to the lower proportion captured in previous efforts and expects slower annual growth of 1 percent.

Spending now goes to the five markets of China, the United Arab Emirates and Saudi Arabia.

“Kenya could start launching tailored marketing campaigns for the 1-2 countries with the highest potential in each category: US, UK, China, UAE and Saudi Arabia,” the ministry said in a new strategy paper.

ALSO READ: Ministry to limit visitors to parks and game reserves

“With limited marketing spend, prioritizing marketing budgets is critical to successful public relations. Other source markets should continue to be included, but the marketing focus should be on prioritized countries.”

Tourism promotion and marketing activities were allocated Sh1.06 billion in the fiscal year ended June, up 18.3 percent from Sh897.89 million in the supplementary budget for the current fiscal year.

But it won’t cut budgets for other traditional markets like the US and UK, which still have high potential based on numbers and revenues of up to US$310,000 and US$750 million (Shh87.7 billion) by 2030.

Kenya carries out promotional initiatives including road shows and sponsorship of invited tour operators, advertisements in foreign media to attract visitors for leisure and meetings, incentive conferences and events.

Other investments include regulation and policy for open-air circuits and increasing visa openness.

The markets are firmly entrenched due to existing ties with Kenya, which facilitates penetration, and the potential to attract a larger number of visitors compared to the East African region. Other markets Kenya is eyeing in the medium term are Canada, Germany, France, India and South Korea.

The ministry could also scale back campaigns in the regional market, citing higher spending by tourists on flights and visas, leading to insufficient returns.

Tourism has been among the hardest-hit sectors by the pandemic after borders were closed and flights canceled as economies around the world got the pandemic under control.

It was heavily dependent on the advance bookings of international travelers in the pre-pandemic period, with clientele consuming more than half of the accommodation services.

ALSO READ: Ministry of Tourism plans to build toilets on Mt. Kenya

It will now also largely target the domestic market, which has fueled the industry with many visits to seaside hotels, parks and sporting events during the pandemic.

The domestic market potential is expected to have 12 million people enjoying and spending money in local destinations by 2030, up from 6.6 million in 2019.

The plan is part of a five-year tourism industry strategy to 2025 developed by a team of tour operators, parastatal organizations, conservation leaders and funders led by CS Najib Balala.

Tourism spending is expected to recover in 2024 to 2019 levels, when USD 1.97 billion (Shh 229.4 billion) was recorded as total spending on leisure travel from the world’s top 40 source markets.

About USD 1.38 billion (Shh 160.7 billion) is expected to be spent this year.

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ICG: Kenya’s August 9 elections could be contested Sat, 11 Jun 2022 06:00:07 +0000


A prominent electoral administration body that protects individual and business interests and the involvement of Kenyan President Uhuru Kenyatta in succession politics could see the outcome of the country’s general election in August being contested.

In a report released earlier this week by the International Crisis Group (ICG), Kenya‘s election results for the presidency this year could be more controversial than in 2002 and 2013, when a new president took office.

The report, titled “Kenya’s 2022 Election: High Stakes,” says the Aug. 9 election could be challenged in court. This may indicate either more trust in the courts or less trust in the Independent Electoral and Boundaries Commission (IEBC).

Citing post-election violence in 2007-8, ICG says elite polarization, particularly the rift between President Uhuru Kenyatta and his deputy William Ruto, has contributed to perceptions that the security services may not play a neutral role in the election period.

Other factors such as inequality and Kenya’s deteriorating economy create the risk that unemployed youth could be recruited into gangs.

Four candidates for the presidential nomination were released this week, with polls showing Mr Ruto and former Prime Minister Raila Odinga leading the race.


“Perhaps the greatest concern is that Ruto, Odinga and Kenyatta all enjoy significant electoral support, and none seem willing to endure the exclusion from Kenya’s clientelistic politics that an election defeat brings,” the report said.

“The combination of high tensions within the elite and weak institutions means that the outcome of the vote may well be contested if one of the main candidates denies official results, claiming they were cheated. A key scenario for unrest would be if one group or another of Kenya’s political leaders decides to play on existing ethnic and economic divisions to drive voters onto the streets, rather than concede defeat,” the report added.

According to the report, the IEBC has not adopted all the rules of fact-finding commissions that examined weeks of mass violence related to elections in 2007 and 2008, which killed more than 1,100 people and displaced at least 600,000 others.