Albert Mwazighe

Officials assure Kenya of security as Raila rejects election results

Wednesday August 17 2022

Head of Public Service and Chairperson of the National Security Advisory Committee (NASC), Joseph Kinyua, briefs media outside the Harambee House on August 16, 2022 on the security situation in the country. PHOTO | FRANCIS NDERITU | NMG

By MARY WAMBUI

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Kenya’s top national security team says the country is safe and secure, even as top candidate Raila Odinga on Tuesday rejected results of a contest to replace President Uhuru Kenyatta.

The National Security and Advisory Committee (NSAC) said further “constitutional” procedures will follow after Deputy President William Ruto was declared President-elect on Monday.

But Mr Odinga said his coalition, Azimio la Umoja One Kenya, “totally and without reservation reject the results that were announced yesterday.”

Mr Odinga said the tally of the Independent Electoral and Boundaries Commission (IEBC) which awarded him 48.8 percent against Ruto’s 50.49 percent was “null and void” because four other commissioners of the electoral body were not given the opportunity to scrutinise the figures.

Read: How Ruto won State House race

He spoke just after the four commissioners, separately, claimed the total tally as announced exceeded the 100 percent of the total votes cases, something they claimed defeated logic.

Earlier, Head of Public Service Joseph Kinyua, who chairs the security team, said Kenyans should resume their normal day-to-day activities and businesses as further constitutional processes for the transition take place in the coming days.

“The government has and continues to take all necessary measures to ensure that the entirety of the country is safe and secure and calls on all Kenyan and business communities to resume their normal daily activities and get back to the business of building our great nation,” he said.

Mr Kinyua added that the National Security and Advisory Committee held a meeting Tuesday morning to assess and consider the security situation in the country.

“On behalf of the committee I am pleased to confirm that our nation remains peaceful and secure. We laud all Kenyans for a high degree of civic duty and demonstrating tremendous patience as we waited for the declaration of the presidential election results,” he added.

Also read: African leaders congratulate William Ruto for winning Kenyan election

In the briefing, also attended by Mr Kinyua’s Deputy Wanyama Musyambo, Inspector General of Police Hilary Mutyambai, Interior Permanent Secretary Karanja Kibicho, Secretary for Internal Security Wilson Njega, Foreign Affairs Permanent Secretary Ambassador Macharia Kamau and other senior government officials, NSAC also took note of the general good conduct of security agents during the electioneering period that promoted public order during the election period.

“We also appreciate the National Police Service and all other security agencies for the remarkable work done in maintaining law and order during this election period. The declaration of the presidential election results set in motion other constitutional processes for the transition going forward,” added Mr Kinyua.

A number of businesses were closed on Tuesday last week when Kenyans participated in the general elections after which they re-opened the next day and remained in business until Monday afternoon, when most businesses in Nairobi and major towns across the country closed, following an announcement that IEBC Chairman Wafula Chebukati was expected to announce the winner of the presidential polls.

Many streets were deserted as Kenyans rushed home to await the announcement.

Also read: Observer group's parallel tally almost similar to IEBC results

Despite the chaotic scenes witnessed at the Bomas, the National Tallying Centre in Nairobi, there were only a few other isolated incidents of violence and hooliganism after the announcement of the election results. The country remained relatively peaceful and calm.

However, the brutal killing of Embakasi East Constituency’s Returning Officer, has again cast a dark shadow over the elections.

Mr Daniel Mbolu Musyoka, 53, disappeared on August 11 under unclear circumstances and was found dead on Tuesday evening at the Amboseli National Park in Kajiado South Sub-County.

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

Explainer: What next after William Ruto-Raila Odinga Kenya election results stalemate

Wednesday August 17 2022

President-elect William Ruto (L) reacts after receiving his declaration certificate from IEBC chairman Wafula Chebukati at the Bomas of Kenya on Monday, August 15, 2022. On the right, Azimio la Umoja leader Raila Odinga announces his rejection of the election results at KICC. PHOTO | NMG

By EDWIN MUTAI

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With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court after Raila Odinga who lost the 2022 Kenya presidential contest by a narrow margin rejected the results.

If Mr Odinga, the Azimio la Umoja-One Kenya Party candidate, files a petition at the Supreme Court it will be heard by a bench of seven judges.

The judges are Chief Justice Martha Koome, Deputy Chief Justice Philomena Mwilu, Mohamed Ibrahim, Smokin Wanjala, Njoki Ndung’u, Isaac Lenaola and William Ouko.

Three of the seven judges nullified President Uhuru Kenyatta’s re-election in 2017. Chief Justice Koome and Justice Ouko, joined the Supreme Court in mid-2021.

ALSO READ: Economic jitters as split IEBC declares Ruto president-elect

How long will the Supreme Court take to conclude an election petition?

Any person wishing to contest the presidential election results has seven days within which to file a petition after the date of declaration of the results. The Supreme Court, which has the sole jurisdiction to hear presidential election petition, is supposed to determine the petition within 14 days from the date of filing and its decision shall be final.

If no petition is filed at the Supreme Court, President-elect Ruto and Deputy President-elect Rigathi Gachagua will be sworn in on Tuesday, August 30 as opposed to September 12 if a petition is filed.

If the presidential election results are challenged, the swearing-in will happen on the seventh day following the date on which the Supreme Court renders a decision declaring the election to be valid. If the Supreme Court nullifies the presidential results as happened in 2017, a fresh election will be held within 60 days.

Can the new Parliament hold its first sitting amid the presidential election petition?

Yes, Parliament will hold its inaugural sitting despite an ongoing petition challenging the results of the presidential election.

The Constitution requires that whenever a new House is elected, the President, by notice in the gazette, shall appoint the place and date for the first sitting of the new House, which shall be not more than 30 days after the election.

This means that the outgoing President Kenyatta will be forced to summon the first sitting of the 13th Parliament before September 9 if an election petition lingers.

Once the House is convened, the 349 MPs and the 67 senators will elect their new speakers who will then be sworn in by the respective clerks. Once sworn in, the speakers will swear in each MP. A candidate for speaker must be supported by at least two-thirds or 233 of the 349 MPs in the National Assembly.

One must be supported by two-thirds or 45 of the 67 senators to be elected Senate Speaker.

ALSO READ: Ruto to start receiving security briefings after election victory

Can President Kenyatta skip the ceremony to hand over power to Dr Ruto?

The Constitution says the President will hand over the instruments of power to the President-elect, but it is silent on whether he or she must be present physically.

It has been the practice in Kenya for the outgoing leader to hand over the instruments of power to the incoming President.

The Constitution says the President-elect must be sworn into office by either the Chief Justice (CJ) or his or her deputy when the CJ is unable to preside over the ceremony due to unavoidable circumstances.

The swearing-in ceremony must be held between 10 am and 2 pm.

The outgoing President will then hand over to his successor instruments of power and authority.

The Constitution defines the instruments of power and authority as the sword and the Constitution.

It will be interesting to see if Mr Kenyatta will attend the swearing-in ceremony of Dr Ruto having opposed his candidature and backed opposition chief Mr Odinga.

When can Kenyans expect a new Cabinet?

This depends on whether the dispute will move to the Supreme Court.

There are no constitutional timelines, but after swearing-in the new President is expected to name members of his Cabinet. In 2013, it took President Kenyatta two weeks to settle on four names for his 18-member Cabinet, indicating the kind of bargaining, head-hunting and scrutiny that went on behind closed doors.

The Constitution states that the President shall nominate and, with the approval of the National Assembly, appoint Cabinet Secretaries.

Upon receipt of the list of nominees, the National Assembly will have 21 days to vet, approve or reject the nominees to the Cabinet. If there is no petition filed challenging the presidential election results, the President-elect is expected to form a new government after 14 days of declaration of results.

If an election petition is filed, the President-elect will name a Cabinet after September 12 as opposed to August 30 if there is no petition challenging the poll results.

This can also delay until after 60 days if the Supreme Court nullifies the declaration of Dr Ruto as President-elect.

ALSO READ: Ruto faces tough battle to push agenda in Parliament

What powers does the outgoing President have currently?

President Kenyatta lost several powers on August 9 when Kenyans went to the General Election and he entered the temporary incumbency phase.

He lost the powers to nominate or appoint judges of the superior courts, nominate or appoint any public officer, nominate, appoint or sack a Cabinet Secretary, a Principal Secretary and other State officers.

The outgoing President cannot wield the powers to nominate, appoint or dismiss a high commissioner, ambassador, or diplomatic or consular representative.

The Constitution further denies Mr Kenyatta the power of mercy and he, therefore, cannot pardon convicts.

The Constitution also curtails the President’s authority to confer honours in the name of the people and the Republic. During the temporary incumbency phase, the President-elect will receive security briefings from the National Intelligence Service, Kenya Defence Forces and the National Police Service.

The Assumption of Office of the President Committee, which is steering the transition process, is also required to facilitate communication between the outgoing President and the President-elect.

It is tasked with organising for the security of the President-elect, the necessary facilities and personnel for the President-elect, co-ordinate the briefings of the President-elect by relevant public officers and organise for the swearing-in ceremony.

-First published by Business Daily.

In the headlines

Kenya election: Officials assure country of security

Despite chaotic scenes at Bomas and a few isolated incidents of violence, the country remained relatively calm.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

Observer group's parallel tally almost similar to IEBC results

Tuesday August 16 2022

Elections Observation Group Chairperson Anne Ireri. PHOTO | JEFF ANGOTE | NMG

By VINCENT OWINO

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A parallel vote tabulation (PVT) by an independent elections observer group has produced almost similar results to that announced by Kenya’s poll agency on Monday evening, even as there was a division in the electoral body when some commissioners disputed the results.

The Nairobi-based Elections Observation Group (Elog) said it deployed more than 5,000 observers across the 47 counties before, during and after the August 9, 2022 General Election.

The group also had 1,000 PVT observers who were “carefully recruited, specially trained and deployed to a nationally representative random sample of polling stations,” and independently did their separate tally on the election results.

Based on Elog’s findings, William Ruto garnered 50.7 percent of the total votes cast and Raila Odinga, 48.7, while George Wajockoya and Waihiga Mwaure got 0.5 and 0.2 percent, respectively.

Elog said their tally results have a margin of error of between 0.1 and 2.1 percent.

According to the IEBC, Ruto garnered 50.49 percent of the votes against Raila’s 48.85 percent, with Wajackoyah and Mwaure getting 0.44 and 0.23 percent, respectively.

Anne Ireri, Elog Chairperson, said the organisation is, however, “concerned” with the chaos that erupted at the national tallying centre and the division among the commissioners shortly before the presidential election results were announced.

“We call on all candidates to resolve disputes over election results, including results of the presidential election, peacefully through legal channels,” she said.

Elog has conducted parallel vote tabulations in the last two general elections and the 2010 referendum, with their tally results always consistent with the electoral body’s, despite contestations of the results and subsequent petitions at the Supreme Court.

In 2017, their PVT results were almost identical to the IEBC official results, but the Supreme Court nullified the elections on grounds that the poll agency had “committed irregularities and illegalities in the transmission of results.”

Ms Ireri said that although the 2022 election reflects major improvements from the 2017 polls, certain challenges still marred the process, including insufficient access to election information in the pre-election period and the last-minute postponement of some gubernatorial and parliamentary elections which shows the commission’s failure to conduct due diligence.

The organisation has, therefore, among other recommendations, urged the polls body to ensure “consistent openness, transparency, inclusive participation, and timely access to information by the IEBC and other agencies concerned with election management.”

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Kenya election: Officials assure country of security

Despite chaotic scenes at Bomas and a few isolated incidents of violence, the country remained relatively calm.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Bolt switches to corporate clients only in Tanzania

Raila: Azimio coalition rejects presidential results

Tuesday August 16 2022

Azimio La Umoja's Martha Karua, Raila Odinga and Kalonzo Musyoka at a press briefing on August 16, 2022 where they rejected the presidential election results. PHOTO | LUCY WANJIRU | NMG

By FRED OLOUCH

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Kenyan politician Raila Odinga has said he will challenge the presidential election results in court, making it his fourth time in a row in which he has rejected the outcome of a presidential poll.

Mr Odinga spoke on Tuesday, a day after the Independent Electoral and Boundaries Commission (IEBC) declared deputy President William Ruto as President elect in a tight race in which Ruto scored 7,176,141 votes (50.49 percent of the vote cast) against Odinga’s 6,942,930 (48.8 percent). The difference between their votes was 233, 211 votes.

Odinga said his coalition, Azimio la Umoja One Kenya, “totally and without reservation reject the results that were announced yesterday (Monday)” and will use available legal channels to challenge it. Under Kenyan law, only the Supreme Court can overturn results of a presidential contest.

Mr Odinga faulted the IEBC chairman of making a unilateral decision without involving other commissioners.

“We reject the results announced by Mr Chebukati on August 15. We maintain that there was no winner and a president-elect. We are taking legal and constitutional processes to invalidate what Mr Chebukati announced. We urge all Kenyans to stand tall as we seek to advance the ideals of justice that Kenyans stand for,” said Mr Odinga at Nairobi's International Conference Centre.

“Our view is that the figures announced by Mr Chebukati are null and void and must be quashed by a court of law,” he added.

Mr Odinga said that while millions of Kenyans came out to vote on August 9, Mr Chebukati had almost plunged Kenya into a political crisis by failing to follow the constitution and the laws governing the elections.

“We in Azimio La Umoja One Kenya were shocked to learn that Mr Chebukati alone knew the results that he was going to announce without consulting other commissioners. The election law does not allow the chairperson to dictate to other commissioners on the results. Decisions at the commission, according to the law, are taken either through consensus or through voting,” said Mr Odinga.

One hour prior to the announcement of the results at Nairobi’s cultural centre known as Bomas of Kenya, which was the national tallying centre, four commissioners—out of the total 7—led by the IEBC vice-chairperson Juliana Cherera, announced at the Serena Hotel that they were not going to own the results announced by Chebukati because there was no verification and discussions on how the chairman alone arrived at the figures.

Mr Chebukati maintained that he had announced the results after compiling the results of Forms 34As that were in the public portal. Forms 34A contain the results of the 290 constituencies, that are later tabulated into form 34C that show the results of the presidential candidates.

But Ms Cherera maintained that Mr Chebukati showed the other commissioners the tabulated results on 34C a few hours to the announcement, and refused any discussion on the verification of the results.

Mr Odinga said that Mr Chebukati’s actions had negated the gains of Kenya’s democracy and that the country faces a constitutional and political crisis. “If it were not for the peace loving nature of the Kenyan people, the country could have plunged into chaos,” he said.

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Kenya election: Officials assure country of security

Despite chaotic scenes at Bomas and a few isolated incidents of violence, the country remained relatively calm.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

African leaders congratulate William Ruto for winning Kenyan election

Tuesday August 16 2022

Kenyan President-elect William Ruto delivers a speech at the Independent Electoral and Boundaries Commission (IEBC) Bomas of Kenya Tallying Centre in Nairobi on August 15, 2022, after he was declared winner of the presidential election. PHOTO | TONY KARUMBA | AFP

By VALERIE KOGA

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East African Community leaders joined other world leaders in congratulating Kenya’s President-elect William Ruto, who was delacred winner of the August 9, 2022 presidential election.

Independent Electoral and Boundaries Commission (IEBC) Chairman Wafula Chebukati on Monday announced that the President-elect and Deputy President-elect Rigathi Gachagua won with 7,176,141 votes, representing 50.59 percent of valid votes cast, beating rivals Raila Odinga and Martha Karua who had 6,942,930 votes (48 percent).

Leaders also congratulated Kenya for a peaceful election.

Uganda's President Yoweri Museveni congratulated Ruto, and affirmed Kampala's commitment to continue working with Nairobi and strengthening the relationship between the two nations. He also expressed optimism that his close partnership with Ruto would yield greater achievements for both nations.

"Further to my telephone call last night upon your victory, I wish to reassure you of Uganda’s commitment to continue partnering with Kenya in advancing regional and continental agenda through the East African Community, African Union and other multilateral platforms.

"Our bilateral cooperation will score tremendous achievements and I look forward to working more closely with you. God bless Kenya. God bless East Africa."

Tanzania's President Samia Suluhu said "I congratulate the people of Kenya on their peaceful general election and the subsequent announcement of Dr @WilliamsRuto as President-elect. We look forward to continue working together with our brothers and sisters in Kenya to strengthen our historically close ties. Tuko pamoja."

Burundi's Evariste Ndayishimiye said, "My heartfelt congratulations to the President-elect @WilliamsRuto and the people of the Republic of Kenya for holding free, fair and peaceful elections. We urge all the parties to preserve peace, and disputes be resolved by existing competent legal mechanisms. Idumu jumuiya yetu!"

On his Twitter handle, Rwandan Presidnet Paul Kagame also congratulated Ruto, saying: "On behalf of the Government and People of Rwanda, I congratulate our Brothers and Sisters, the People of Kenya, for conducting peaceful elections on 9 August 2022. I also congratulate H.E. Dr William Samoei Ruto, the President-Elect."

"The Government of Rwanda attaches great importance to the good relationship and cooperation between Kenya and Rwanda."

Somalia’s former president Mohamed Farmaajo commended Ruto for his hard work and wished him well in his tenure as president.

“I wish to offer my most sincere congratulations to President-Elect of Kenya Ruto and the people of Kenya following the successful conclusion of the elections. You truly ran an enriching, overpowering campaign and May God help you fulfil your vision for your country,” he said.

Ethiopian Prime Minister Abiy Ahmed, who was among the first leaders to congratulate the president-elect, said he looks forward to working with him after he is sworn-in.

" My congratulations William Ruto on your election as the President of the Republic of Kenya. I wish you best of luck in your endeavors ahead and we look forward to working closely with you on common bilateral and regional interests," he said.

Zimbabwe's President Emmerson Mnangagwa added that he had faith in the new leadership. "Congratulations to @WilliamsRuto on his election as the next President of Kenya. I have no doubt he will serve his country, his people and our continent with distinction."

Igad's Executive Secretary Workneh Gebeyehu said "I congratulate H.E. @WilliamsRuto on his election as the 5th President of the Republic of #Kenya as declared by the country's electoral management body @IEBCKenya. I applaud Kenyans for the peaceful elections & look fwd (sic) to peaceful conclusion of the entire electoral process!"

Charles Michel, the president of the European Council, also congratulated Ruto, saying, "Congratulations to President-Elect @WilliamsRuto of #Kenya. The people have voted peacefully and we urge for any possible contestation to use existing resolution mechanisms. Looking forward to continue our excellent cooperation on regional affairs and deepening EU-Kenya relations."

- Additional reporting by Luke Anami

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Kenya election: Officials assure country of security

Despite chaotic scenes at Bomas and a few isolated incidents of violence, the country remained relatively calm.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

Rights violations reported in Angola ahead of August 24 polls

Wednesday August 17 2022

Deprose Muchena, Amnesty International's director for east and southern Africa, says Angola has witnessed an increase in brutal crackdowns on human rights in recent years. PHOTO | POOL

By ARNALDO VIEIRA

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Angola has been experiencing an unprecedented record of human rights violations, including unlawful killings and arbitrary arrests, in the lead up to the election, a human rights organisation has said.

Angolans will on August 24 got to the ballot to elect their president and parliamentary representatives. This is the country’s fifth general election since the end of civil war.

In its recent briefing titled, “Make the vote meaningful for human rights observance: Human rights manifesto for Angola ahead of the 2022 general election”, Amnesty International (AI) details how Angolan authorities have increased their clampdown on human rights amid a deteriorating humanitarian situation compounded by drought-induced hunger in the country’s southern region.

“Angola has been characterised by an increase in brutal crackdowns on human rights in recent years, including repression of any form of dissent. Protesters, including young people demanding accountability and their socio-economic rights, have not been spared,” said Deprose Muchena, the director for east and southern Africa.

“As the country heads to the polls, authorities must outline their plans to respect human rights and ensure accountability for countless violations.”

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Kenya election: Officials assure country of security

Despite chaotic scenes at Bomas and a few isolated incidents of violence, the country remained relatively calm.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

Traders fear Kenyan goods could face stiff competition in AfCFTA

Wednesday August 17 2022

McDave factory in Nairobi that manufactures home and personal care products. AfCFTA is set to bring benefits such as job creation, movement of goods and skills transfer. PHOTO | FILE | NMG

By LUKE ANAMI

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Kenya’s manufacturers are worried about losing out on the benefits of the African Continental Free Trade Area (AfCFTA), due to a high cost of production that may hurt their competitiveness.

The Kenya Association of Manufacturers (KAM) has tallied local costs of production to be higher than the continental average, meaning their goods may face stiff competition in trading across Africa. Kenya’s global competitiveness index is about 55 percent, while it ranges between 35 to 60 percent in Africa, an indication of a constrained business environment.

The KAM, in their latest survey titled Implication of the African Continental Free Trade Area on Kenya’s manufactured products and its impact on Kenya’s trade, reveals that the dwindling country’s competitiveness due to a high cost of doing business, bureaucratic policy and regulatory environment could inhibit its ability to take advantage of the AfCFTA.

Read: Trial sale of commodities through AfCFTA begins

The study on the implementation of AfCFTA sought to inform local manufacturers on the implications and expected impact of the East African Community [EAC]-AfCFTA tariff liberalisation on Kenya’s manufacturing sector.

It also seeks to inform the industry on the country’s trade potential with other regional economic blocs and potential competitors.

According to the study, Kenya which currently trades in all 8 regional economic blocs — traded globally, with 62 percent of exports destined to international markets and 88 percent of imports from the same markets. Its biggest trading blocs are EAC, Comesa, SADC and SACU.

However, intra-African trade is still low, at 15 per cent, with an additional 40 per cent informal trade.

“There is a positive change for Kenya’s export to Africa under 90 and 100 per cent tariff liberalisation for South Africa, Eswatini, Ghana, Morocco, Togo, Côte D’Ivoire, Botswana, Namibia, Senegal and Tunisia,” the report says. “Change is negative for Kenya’s exports to Zambia, Rwanda and Madagascar.”

The report also reveals that the impact of tariff liberalisation under the AfCFTA on Kenya’s economy is estimated to grow imports by five per cent at 90 per cent tariff liberalisation, and at 11.4 per cent at full liberalisation. “There are strong value chains in agro-processing, textile and garment, footwear, mining, leather, rubber and plastic sectors,” it says.

Generally, AfCFTA tariff liberalisation impacts positively on vehicles, food and beverages, metal, vegetables and chemicals. “Analysis on AfCFTA rules of origin indicates that the current EAC rules of origin are more restrictive, particularly in more competitive sectors like food, beverages, tobacco, plastics and rubber,” the report says.

The study notes that the key challenges that restrict market entry in AfCFTA are increase in trade costs that reduce levels of competitiveness of Africa’s originating products. “Whereas the trade agreement provides the best opportunity to realise our regional, national and business goals, Kenya is yet to put in place mechanisms to ensure the country takes full advantage of the benefits it presents,” said Tobias Alando, KAM’s acting CEO.

“Kenya’s export market in Africa is expected to increase with the full implementation of AfCFTA. However, if unaddressed, challenges such as dwindling country competitiveness, lack of product competitiveness, supply chain constraints, unconducive business environment as well as institutional and infrastructural constraints shall hinder local manufacturers from reaping the benefits that come with AfCFTA.”

Read: Creatives, SMEs to contest in AfCFTA’s brand hackathon

According to the World Bank, Kenya has a comparative advantage in services production, and it exports a higher share of services than other countries with similar levels of development. However, Kenyan manufacturers say the country needs to address gaps that will hinder them from benefiting from the AfCFTA.

“At the firm level, Kenya’s business community needs to develop export strategies for various trade agreements including EAC, Comesa and AfCFTA; implement business development programmes to penetrate and expand to new markets and develop the capacity to be able to meet the demands of the African markets,” said Alando during a webinar to discuss the report held last week.

“At the national level, we urge the Government to prioritise the conclusion of pending areas in the negotiations; work on competitiveness drivers to ensure Kenya takes advantage of the African market and fully implement the National AfCFTA Strategy.”

Kenya Revenue Authority (KRA) Deputy Commissioner, Marketing and Communications Ms Grace Wandera, said KRA had automated services to reduce time spent clearing cargo and bring down costs incurred by traders.

“We remain cognizant of the benefits that come with AfCFTA, such as job creation, movement of goods and skills transfer. This will require tariff harmonisation, capacity building on requirements to trade under the regime, simplification and automation of processes. We have also set up call centres at all border points to support traders and ensure efficient service delivery,” said Ms Wandera.

The KAM report among other things, recommends linking the fragmented production value chains to their sectors, for the purpose of attaining economies of scale. It also calls for the liberalisation of trade in services that support manufacturing activities, such as finance, transport and communication and easing the movement of persons in order to complement trade in goods.

“EAC partner States should implement EAC industrial policy strategy that identifies EAC strategic industries for development. These include agro-processing industries, iron and steel manufacturing, chemicals (fertilizer and agrochemicals and pharmaceutical sectors, with a view to diversify economic activities in order to have an edge in the AfCFTA market.”

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Kenya election: Officials assure country of security

Despite chaotic scenes at Bomas and a few isolated incidents of violence, the country remained relatively calm.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

Rwandan and Tanzanian stockmarkets ranked among Africa’s top six performers

Wednesday August 17 2022

Rwanda and Tanzanian stockmarkets rank among the six top bourses in sub-Saharan Africa. PHOTO | FILE

By JAMES ANYANZWA

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Rwanda and Tanzanian stockmarkets rank among the six top bourses in sub-Saharan Africa that have weathered economic storms to post positive returns to shareholders.

A quarterly market report by analysts at AfricanFinancials Group shows that Rwanda Stock Exchange (RSE) and Dar es Salaam stock Exchange (DSE) registered 7.2 per cent and 9.1 per cent returns respectively during the 12 months period to June this year.

The report dubbed Sub-Sahara Africa Top 30 Companies (excluding South Africa) shows that other African exchanges that performed well during the period included Nigeria which recorded a return of 20.9 per cent , Zambia (12.1 per cent), Seychelles (five per cent) and Botswana (2.8 per cent).

The report dated July 2022 shows that between June 2021 and June 2022, investors on the Nairobi Securities Exchange (NSE) and Uganda Securities Exchange (USE) lost 28.2 per cent and 20 per cent of the value of their investments, respectively.

In the month of June, Kenyan stock market dipped by 4.3 per cent, while Tanzania and Ugandan markets declined by 0.7 per cent and three percent respectively. Rwandan stockmarket, on the other hand gained one percent during the month (June).

Activities on the DSE increased by 9.8 per cent during the five months period to May this year as the new administration under President Samia Suluhu embarked on a massive policy shift aimed at attracting investment in the country.

In early June, the Bank of Tanzania (BoT) relaxed rules allowing, for the first time, investors from the East African Community (EAC) and Southern African Development Community (SADC) to trade in Treasury bills and bonds issued in Tanzania.

Tanzanian stock market whose market value stands at around $4.4 billion grew by 9.8 per cent between January and May, followed by RSE which grew by 6.1 per cent.

On the other hand, the Nairobi Securities Exchange (NSE) and Uganda Securities Exchange (USE) fell by 25 per cent and 17.6 per cent respectively during the period under review.

In the month of May, DSE and RSE grew by 2.2 percent and 2.6 percent respectively while the NSE and USE fell by 14.5 per cent and 6.9 per cent respectively. The Nairobi bourse is the third worst-performing major stock market in Africa since January, hit by foreign investor capital flight and ease of repatriation of equity sales compared with other capitals in the continent.

NSE was ranked eighth among the 10 top stock markets in the continent with a return of negative 30 per cent in dollar terms since the year started.

The performance of African stock markets has been weighed down by a reduced appetite for emerging markets after a jump in interest rates in the developed markets such as the US, which are currently battling high inflation that has forced their central banks to adjust rates upwards.

The situation has been exacerbated by the events in the local environment including soaring debt levels, rising inflation, weakening currencies and high fuel price as a result of the supply chain disruptions caused by the Russia-Ukraine war and elections fears in some countries such as Kenya.

According to the National Bank of Rwanda the global economy entered 2022 in a weaker position than previously expected, undermined by the Omicron Covid-19 variant.

Rising energy prices and supply disruptions have resulted in higher and more broad-based inflation than anticipated, notably in the United States and many emerging markets and developing economies.

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Kenya election: Officials assure country of security

Despite chaotic scenes at Bomas and a few isolated incidents of violence, the country remained relatively calm.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

Rwanda stockmarket eyes connection to regional bourses

Wednesday August 17 2022

Dealers at the Rwanda Stock Exchange. PHOTO | FILE

By JAMES ANYANZWA

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The Rwanda Stock Exchange (RSE) is eyeing the implementation of a unified electronic settlement system for regional bourses to bolster trading on its cross-listed shares.

The market wants to boost trading on inactive cross-listed stocks on its platform. Trading of these stocks is low due to the tedious process of buying and selling them.

RSE chief executive Celestin Rwabukumba told The EastAfrican that the implementation of the regional capital markets infrastructure (CMI) project will ease the trading of cross-listed shares.

“We have already worked on our own automation and it is very simple. It is part of the CMI. Our system will be plugged into the CMI and be part and parcel of the infrastructure,” said Mr. Rwabukumba.

“We are able to trade with Tanzania or Uganda or the other countries if companies are cross-listed. We have done a soft launch to see if the system is working in live mode. So when the CMI is fully deployed we will also go live.”

The CMI project that is awaiting official launch by the EAC Secretariat links the trading platforms of Uganda, Tanzania and Rwanda enabling them to operate as a single market. Burundi still does not have a functional securities exchange while Kenya pulled out of the project due to concerns over the procurement of the software.

The system will allow investors to buy and sell shares of companies located in different EAC countries without necessarily moving from country to country. Four Kenyan firms are cross-listed on the Rwandan exchange including KCB, Nation Media Group, Equity Bank, and Uchumi Supermarkets.

A South African healthcare-focused investment firm RH Bophelo Ltd whose primary listing is on Johannesburg Stock Exchange (JSE) is also cross-listed on RSE.

While cross-listing shares improve a firm’s visibility and enlarges its investor base, low or no trading on their counters has left companies hesitant to issue shares in new markets.

Lack of activity in cross-listed firms’ shares has been blamed largely on the failure by the issuing companies themselves to increase their free float (shares available for trading) and the incompatibility of trading and settlement systems in the region

Other hindrances to trading of cross-listed stocks include a lack of investor awareness, exchange rate risks and differing trading regulations among the East African Community partner states.

Listed companies in East Africa have not been keen to cross-list on the regional markets, because of exchange rate risks and low volumes of trading in shares In 2016, Kenya’s investment firm Centum shelved plans to cross-list its shares on the RSE and the Dar es Salaam Stock Exchange, citing lack of liquidity in its cross-listed shares in Uganda.

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Kenya election: Officials assure country of security

Despite chaotic scenes at Bomas and a few isolated incidents of violence, the country remained relatively calm.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

Zimbabwe measles deaths double to 157

Wednesday August 17 2022

A child receives a vaccine. The number of children killed by measles in Zimbabwe has jumped from 80 to 157, with most of the victims unvaccinated against the disease. PHOTO | AFP

By KITSEPILE NYATHI

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The number of children killed by measles in Zimbabwe has jumped to 157 from the 80 recorded at the weekend, with more than 2,000 infections reported so far, the government said Wednesday.

Cases were first recorded in Manicaland province on April 10 following large gatherings by apostolic sects and the outbreak has since spread countrywide.

“As of 15 August, the cumulative figure across the country has risen to 2,056 cases and 157 deaths,” Information Minister Monica Mutsvangwa said.

“It has been noted that most cases had not received vaccination to protect [them] against measles.

“Cabinet has directed the Ministry of Health to engage traditional leaders and faith leaders in the vaccination programme.”

The government said it had invoked special legislation allowing it to draw money from the national disaster fund to deal with the “emergency.”

In a statement earlier this week, the government blamed the outbreak on church sect gatherings.

“The Ministry of Health and Child Care wishes to inform the public that the ongoing outbreak of measles, which was first reported on the 10th of April, has since spread nationwide following church gatherings,” the ministry’s secretary Jasper Chimedza said in a statement.

“These gatherings, which were attended by people from different provinces of the country with unknown vaccination status, led to the spread of measles to previously unaffected areas.”

Dr Chimedza said most of the cases were among children aged between six months and 15 years from religious sects.

Some apostolic sects in Zimbabwe prohibit their followers from taking vaccinations or medical treatment as it is against their church doctrine.

The sects have in recent months been holding big gatherings across the country, which are often attended by top government officials as they present a large voting bloc.

Zimbabwe will hold general elections next year and President Emmerson Mnangagwa has been using the church gatherings to campaign for re-election.

It is feared that the measles outbreak will put more pressure on the country’s already ailing health delivery system at a time Zimbabwe is still battling to contain the outbreak of Covid-19.

Zimbabwe’s health sector has been on a decline for years due to lack of funding and a severe brain drain.

Poorly paid health workers regularly go on strike demanding better working conditions and equipment.

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Kenya election: Officials assure country of security

Despite chaotic scenes at Bomas and a few isolated incidents of violence, the country remained relatively calm.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

High commodity prices, import bill hurt Tanzania’s forex reserves

Wednesday August 17 2022

Forex reserves in Tanzania amounted to $5,110.3 million at the end of June 2022. PHOTO | FILE

By MOHAMED ISSA

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Tanzania is facing pressure to balance its expenditure as price shocks occasioned by global economic crises eat into its current account.

The current account measures how much the country spends, or saves on its foreign exchange. And according to the Monthly Economic Review released by the Bank of Tanzania (BoT), the deficit more than doubled during the year ending June 2022. It reached $3.8 billion compared with $1.8 billion in the corresponding period in 2021.

BoT said the deficit was caused by shocks emanating from high commodity prices, tight financial conditions, and resurgence of Covid-19 in China. China is a key import source but whose ports and factories have remained underutilised during the pandemic season.

It added that those “global challenges have been aggravated by the Russia-Ukraine conflict, which has caused supply disruptions.”

As a result, imports of goods and services rose by 44 percent to $14.135 billion in the year ending June 2022 up from $9.841 billion.

“Much of the rise emanated from imports of intermediate goods particularly white petroleum products, iron and steel and plastic products,” it said.

Imports of white petroleum products surged to $2.447 billion from $1.459 billion, on account of both volume and price effects. “The war in Ukraine has been a driving factor — adding on to the already rising energy prices which also led to higher prices of other commodities including edible oil, wheat grain and fertilisers,” it further said.

Ukraine had been Tanzania’s biggest foreign source of wheat. Tanzania also imported fertilizer. But after Russia invaded Ukraine in February, exports from Ukraine were blocked due to mined ports. The war has also caused price hikes for basic commodities like petroleum products. Shippers also reported high costs of ferrying goods.

In Tanzania, services payments rose to $2.422 billion from $1.295 billion in the period under review due to a rise in freight payments.

Month-on-month services payments amounted to $270.8 million in June 2022 compared with $124.3 million in June 2021. Other services payments were made to cater for construction, insurance, financial, telecommunication, computer and information, government, personal and other business services.

The primary income account deficit grew to $1.364 billion in the year to June 2022, from $1.247 billion, due to a rise in interest payments. On monthly basis, a $143.9 million deficit was recorded compared with $119.6 million in June 2021.

The secondary income account had a surplus of $633.8 million up from $50.8 million, largely on account of a rise in private transfers. On a monthly basis, a surplus of $123.8 million was recorded in June 2022 compared with $37.7 million in June 2021.

However, the overall balance of payments was a surplus of $75.6 million up from a deficit of $132.7 million, on account of loan receipts and grants. Forex reserves amounted to $5,110.3 million at the end of June 2022.

Exports of goods and services hit $11.1 billion in the year ending June 2022 from $8.85 million in the corresponding period of 2021, driven by non-traditional exports and services receipts.

Export of goods increased by 11.7 percent to reach $7.203 billion with non-traditional exports rising by 27.6 percent.

The rise was largely in the exports of manufactured goods particularly iron and steel, textiles, horticultural products, fish and fish products as well as cereals in particular maize and rice. Gold exports which accounted for 37.4 percent of exports were $2.7 billion, down from $3.03 billion.

Other exports include mineral concentrates, tanzanite and diamond; and other non-traditional exports like oilseed, beans, cocoa, raw hides and skins, and wood. Exports of traditional goods amounted to $737.8 million compared to $578.4 million.

Exports of all traditional crops increased save for cashew nuts. The increase was on account of price rises in the global markets. On a monthly basis, traditional exports doubled to $30.9 million from $14.1 million in June 2021, while non-traditional exports were $607.1 million in June 2022 compared with $522.4 million in June 2021.

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Kenya election: Officials assure country of security

Despite chaotic scenes at Bomas and a few isolated incidents of violence, the country remained relatively calm.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

Officials assure Kenya of security as Raila rejects election results

Wednesday August 17 2022

By MARY WAMBUI

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Kenya’s top national security team says the country is safe and secure, even as top candidate Raila Odinga on Tuesday rejected results of a contest to replace President Uhuru Kenyatta.

The National Security and Advisory Committee (NSAC) said further “constitutional” procedures will follow after Deputy President William Ruto was declared President-elect on Monday.

But Mr Odinga said his coalition, Azimio la Umoja One Kenya, “totally and without reservation reject the results that were announced yesterday.”

Read: How Ruto won State House race

He spoke just after the four commissioners, separately, claimed the total tally as announced exceeded the 100 percent of the total votes cases, something they claimed defeated logic.

Mr Kinyua added that the National Security and Advisory Committee held a meeting Tuesday morning to assess and consider the security situation in the country.

Also read: African leaders congratulate William Ruto for winning Kenyan election

Many streets were deserted as Kenyans rushed home to await the announcement.

Also read: Observer group's parallel tally almost similar to IEBC results

However, the brutal killing of Embakasi East Constituency’s Returning Officer, has again cast a dark shadow over the elections.

Mr Daniel Mbolu Musyoka, 53, disappeared on August 11 under unclear circumstances and was found dead on Tuesday evening at the Amboseli National Park in Kajiado South Sub-County.

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

Humility ensures visionary leaders stay relevant in quest for excellence

Wednesday August 17 2022

With the world’s highest tower, grand commercial centres and ostentation, Dubai projects an image of prosperity, testimony to the vision of the Gulf country’s leaders. PHOTO | AFP

By WALE AKINYEMI

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On May 25, 1961, President J.F. Kennedy stood before Congress to deliver a special message on “urgent national needs.” He asked for an additional $7 billion to $9 billion over the next five years for the space programme, stating that: “This nation should commit itself to achieving the goal, before the decade is out, of landing a man on the moon and return him safely to Earth.”

On July 20, 1969, President Kennedy’s dream was realised.

Development is driven by vision. Performance is driven by vision. People take delight and pride in the vision of leaders because they are better off for it.

Case studies abound of companies that were on the verge of collapse whose fortunes were turned around by a new leader. Similarly, departments within companies have been turned around just by having a new leader. Question is, ‘What is it in these leaders that make them accomplish what they do?

It is nothing physical, like skin colour, height, weight or nationality but everything to do with their mindset and thinking. The human mind is genderless, colourless and borderless.

The state of an entity is the external expression of the most dominant minds in the entity. This is why it is important that we shift from tribal to mental leadership. And from charismatic to intelligent leadership. Intelligence without charisma will always trump charisma without intelligence.

A promising entity will never rise beyond the ability of its leading minds to deliver the promise. Ignorance always causes promise to be still-born.

Many leaders are not able to take the bold steps required for transformation because they lack the fortitude, knowledge, or ability to navigate around obstacles to the vision. They are unable to curry others along. All these are important for leaders intent to transform an entity.

The blindspot effect

A handicap in potential transformation is the rigidity of leadership. Their rigidity creates a blindspot, which has the potential to ultimately render them irrelevant. Everyone has a blindspot, but humility in leadership will reduce and in some cases totally eliminate the effect of the blindspot in the lives of leaders. So, what does this humility look like?

Years ago, I was watching a TV show with my 15-year-old daughter and I was so absorbed when my phone rang and so I ignored it. She, however, encouraged me to pick it, saying I could rewind when I got back or even pause the streaming as I went to receive the call.

I reminded her this was not a DVD but live TV and she laughed, picked up the remote and did all the things she said it could do. I was stumped and humbled.

Leaders who do not humble themselves will be humbled. No one has a monopoly over innovation and rigidity is the most effective killer of what would have been great leadership.

The ability to admit that you do not know and to accept that the teacher may be a junior or not as exposed as you is the key to staying relevant because that way you will keep learning.

As long as people keep learning, teachers will keep emerging. If you ask for directions once, you might look like a fool that one time but will live in wisdom thereafter. In the event you do not ask for direction(s), you may appear to be wise for a moment but ultimately, your foolishness will not remain hidden for long. It will always come out.

Wale Akinyemi is the chief transformation officer, PowerTalks. E-mail: [email protected]

In the headlines

Explainer: What next after Ruto-Raila stalemate

With the declaration of Deputy President William Ruto as the President-elect, focus now shifts to the Supreme Court.

Kenya election: Officials assure country of security

Despite chaotic scenes at Bomas and a few isolated incidents of violence, the country remained relatively calm.

Burundi deploys troops to DR Congo

Samia in Kinshasa for SADC summit

Raila's coalition rejects presidential results

Observer group's parallel tally almost similar to IEBC results

Bolt switches to corporate clients only in Tanzania

Shelter Afrique picks IFC housing finance boss as new CEO

Wednesday August 17 2022

Shelter Afrique headquarters in Upper Hill, Nairobi. PHOTO | POOL

By ADONIJAH NDEGE

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The board of Shelter Afrique has appointed Thierno-Habib Hann as the new chief executive to succeed Mr Andrew Chimphondah who quit suddenly in February.

Mr Hann currently serves as the Asia-Pacific Lead for housing finance at the International Finance Corporation (IFC), based in Bangkok, where he leads the strategy development and implementation.

Read: Shelter Afrique starts search for new CEO

He previously held a similar position, in charge of Africa and the Middle East, based in Nairobi.

"Mr Hann has extensive international experience in housing finance, capital markets and structured finance, set-up and management of investment funds with banking and multilateral institutions, spanning over 20 years,” Shelter Afrique chairman Mr Ephraim Bichetero said.

“He brings with him a wealth of leadership experience in development and investment, sharp insight in the real estate landscape and a strong track record of delivery.”

A native of Guinea (Conakry), Habib holds an MBA in Finance and Investments from the Zicklin School of Business, Bernard Baruch, New York City, a master’s degree in Accounting and Finance and a bachelor’s degree in Management and Applied Economics (GEA), from Paris IX Dauphine University.

Also read: Shelter Afrique owners inject $2.5m capital in six months

He began his career at the consulting firm Arthur Andersen, LLC as a Senior Consultant in Financial Services and Capital Markets in New York City.

He has also worked at JPMorgan Chase and Goldman Sachs as Manager and Vice President respectively and led investment teams issuing mortgage-backed securities (RMBS/CMO) and credit derivatives (CDS).

Shelter Afrique, owned by 44 African countries and three development institutions — African Development Bank, African Reinsurance Corporation and the African Solidarity Fund -- has had three CEOs in less than eight years.

In May, the former boss Andrew Chimphondah sued the organisation claiming that he was removed from office without being granted a hearing.

Mr Chimphondah says in a petition filed before the Employment and Labour Relations Court that he was voted out in a decision made in February, without getting an opportunity to respond to accusations levelled against him.

The Zimbabwean was employed by Shelter Afrique in July 2018 for a contract of five years.

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