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German tools maker Stihl Group selects Kenya as hub for East Africa expansion

Posted on November 22, 2022 (December 17, 2023)

German outdoor power tools manufacturer The Stihl Group has announced it will establish a hub in Kenya through its second subsidiary on the continent, Stihl East Africa. The hub will serve Kenya, Uganda, Tanzania, the Democratic Republic of Congo (DRC), Rwanda and Burundi among others as Stihl expands its regional presence. The office will be launched later this month. Stihl develops, manufactures and distributes outdoor power equipment for forestry, agriculture, landscaping, construction and cleaning. The firm set up its first Africa sales subsidiary in 1996 in South Africa. Stihl East Africa chief executive Francois Marais said in an August 11 press lease that Kenya is the gateway to East and Central Africa as the country’s infrastructure allows for entry into the markets. “Our plan is to distribute our products from Kenya into the traditional East African market which includes Tanzania, Uganda, Burundi, Rwanda, South Sudan, Ethiopia and the Horn of Africa countries,” he said. A dealership model will used as the firm targets booming agriculture and construction as governments to increase investments in sectors. Stihl is also looking at the DRC, the newest East African Community (EAC) member state. Combined, the EAC now has a population of 300mn and a combined gross domestic product (GDP) of $250bn. The agricultural sector is central to the EAC economy, contributing between 24% and 44% of GDP in partner states, while also accounting for the livelihood of about 80 % of the region’s population. Stihl was founded in 1926 in Germany by Andrea Stihl, the inventor of the chainsaw. His philosophy was to create products that help people interact better with nature through innovation. Story by: Kennedy Senelwa bne IntelliNews Read More

Hilton Opens New Hotel Near Karura Forest After CBD Closure

Posted on November 18, 2022 (December 17, 2023)

Hospitality chain Hilton has announced the latest addition to its fold of hotels in the country, one month ahead of the close of the iconic Hilton Hotel in Nairobi city centre. The 102-room facility called ‘Kwetu Nairobi, Curio Collection by Hilton’ is located along Peponi Road in Nairobi’s Kitisuru area and overlooks Karura Forest. “We’re opening in February 2023, but aren’t accepting reservations yet,” the hotel says on its website. In April, the Hilton Hotel announced it is closing its doors after over 5 decades of operations at the heart of Nairobi. The ritzy hotel which has the government accounting for 40.57 percent of shareholding in its operator, International Hotels Kenya Limited, said it will cease operations on December 31 this year and send home an unspecified number of workers. And while many luxury brands have been scaling down operations or shutting down outlets altogether in the wake of the COVID-19 pandemic, Hilton said its closure does not entirely stem from the pandemic. “Covid-19 created unprecedented challenges for our industry. However, the decision to cease operations is not directly connected to the pandemic,” a Hilton spokesperson said at the time. The hotel said another section of its staff would be redeployed to Hilton Nairobi Hurlingham and Hilton Garden Inn Nairobi Airport, its other outlets within the city. Source: Citizen Digital

BasiGo bags Sh800 million venture capital to drive electric motoring

Posted on November 17, 2022 (December 17, 2023)

BasiGo has received Sh804.5 million from venture capitalists in Silicon Valley to enable the company to begin local manufacturing of electric buses and charging infrastructure next year in Kenya. The funding comes from Mobility54, the corporate venture capital arm of Toyota Tsusho; Trucks VC, a transportation-focused venture capital fund in Silicon Valley; and Novastar Ventures, a global VC supporting entrepreneurs transforming markets in Africa. This brings the total investment received in 2022 to Sh1.3 billion. “BasiGo is thrilled to have the backing of investors who are leaders in the automotive sector and climate finance, with this new funding, BasiGo is ready to bring the benefits of state-of-the-art electric transport to all people in Africa” said Jit Bhattacharya, the chief executive at BasiGo. BasiGo’s next 15 electric buses will be delivered in January and the firm is already deploying direct current charging stations at strategic locations across Nairobi to support this expanded fleet. The company says all buses delivered in 2023 will be locally assembled in Kenya, and aims to have over 1,000 electric buses deployed in Kenya by the end of 2025. “By electrifying Kenya’s public transport, we can make an immediate dent in climate emissions, clean up the air in our cities, and give bus owners relief from the rising cost of diesel,” added Mr Bhattacharya. Vehicle assemblers have been getting into the local assembly business seeking to benefit from the tax incentives set by the government. The move comes after the government in April announced plans to exempt locally assembled passenger cars from VAT and excise taxes. This will see them exempted from major taxes that are applicable on fully-built units imported from overseas markets such as Japan, the UK, and South Africa. Cars manufactured abroad attract an import duty of 25 percent, excise duty of 20 percent, and VAT of 16 percent, payable cumulatively, respectively. This cost is passed on to the end consumer making imported vehicles expensive. “We strongly believe in the potential of electric buses in Africa” said Takeshi Watanabe, the chief executive officer of Mobility54 in a statement. E-mobility is a critical plank in the global push to reduce pollution through the use of clean-powered vehicles that will significantly cut the reliance on diesel and super. Source: Business Daily Newspaper.

Dutch Health Sector Players Commence Trade Mission In Kenya

Posted on November 9, 2022 (December 17, 2023)

A delegation of Dutch companies in the health sector has commenced a week-long trade mission in the country aimed at boosting trade and investments between Kenya and the Netherlands. The delegation, which is comprised of 14 Dutch companies, will get a deep dive into the Kenyan healthcare system by interacting with policymakers, companies, and universities, and visiting various hospitals and other healthcare facilities in Nairobi and Kisumu Counties. Beyond identifying business opportunities in the Life Sciences and Health sector in Kenya, this mission also aims to strengthen public and private sector alliances to achieve the SDG goals on health. Speaking during the opening ceremony of the week-long activities, the Ambassador of the Kingdom of the Netherlands to Kenya, H.E Maarten Brouwer, said that there is a great advantage in uniting the competencies between governments and also with various stakeholders in the private and NGO sectors, saying that this will hasten the attainment of the global health goals. “Life Sciences and Health is one of our Embassy’s priority areas; we support the Kenyan government in making healthcare more accessible to Kenyans,” said Brouwer. The Netherlands is an important partner in multilateral forums and is among the leading supporters of the WHO, UNFPA, GAVI, and GFF. The Netherlands is bilaterally and multilaterally already a strong partner for Kenya in the field of healthcare and now aims to strengthen and deepen this partnership further. The week-long trade mission will take place in Nairobi and Kisumu counties and will involve various activities and deliberations including field visits, seminars, panel discussions, and business matchmaking sessions between the delegation from the Netherlands and key stakeholders in the Kenyan health sector. Source: Capital FM Kenya.

Kenya secures Sh3.6 trillion in investments at Egypt summit

Posted on November 9, 2022 (December 17, 2023)

Kenya has made investment deals in upwards of Sh3.6 trillion ($30 billion) at the ongoing climate conference in Egypt, President William Ruto has said. The head of state said the deals were made during his two-day visit to Sharm el-Sheikh, Egypt. “We are leaving Egypt with investments upwards of $30 billion, as you have seen we have signed off agreements with the UK, with private sector developers and we are leaving here with firm agreements on the exploitation of geothermal resources, wind, solar resources and shortly we will be on the highway on getting Kenya where we want her to be,” he said. “Kenya is providing the leadership for Africa to be front and centre of the solutions to the challenge of climate change and not just a victim.” While concluding his attendance at the 2022 United Nations Climate Change Conference after addressing a side-event of African leaders on accelerating adaptation on the continent, the President said recognition of Africa’s special needs might be difficult now but a journey of 1,000 miles begins with one step. “We need to have a comprehensive conversation about climate change that brings on board loss and damage, we have lost over two million heads of cattle this year alone we have 4.3 million people suffering the worst drought in 40 years, the loss and damage are real.” During the side event, President Ruto said climate change has emerged as one of the greatest threats to life on earth. “It is also a very serious challenge to human well-being globally, with particular intensity on the African continent. “The Sixth Assessment Report of the United Nations Intergovernmental Panel on Climate Change published in August 2021, has singled out Africa as singularly vulnerable to climate and weather extremes,” he said. President Ruto added that such vulnerability poses serious adverse repercussions for Africa’s precarious socio-economic systems, even though the continent’s countries cumulatively contribute only four percent of average global emissions. “It is imperative that urgent measures be taken to effectively cushion Africa’s peoples, their livelihoods, economies and communities and rapidly eradicate vulnerability. It is for this reason that accelerating adaptation is a matter of high priority throughout Africa. “The escalation of global warming is worsening climate impacts, putting our countries at serious risk of adaptation limits being quickly overwhelmed, leading to unbearable loss and damage. “Every slight increase in warming has far-reaching and often irreversible negative effects,” he said. Warming at rates above 1.5°C, he added, could trigger multiple tipping points that would fundamentally alter the earth’s climate systems. Source: Business Daily Newspaper.

State seeks to make Kenya Africa’s manufacturing hub

Posted on November 7, 2022 (December 17, 2023)

The Government plans to boost the manufacturing sector and make the country a leading industrial hub in Africa. It plans to tap China’s diverse technology in manufacturing. Kenya Investment Authority (KenInvest)’s general manager for investment promotion and business development, Pius Rotich, says he believes Chinese technology will be vital in realising the country’s industrialisation dream. This, as Kenya remains keen on the fourth industrial revolution. Speaking at the fifth Kenya International Industrial Expo in Nairobi, which ends today, Rotich said Kenya has the potential to lead the continent in industrial growth. “China is ready to help increase the added-value and competitiveness of Kenyan products. The objective of the expo is set to provide a unique platform to fulfill this goal,” Rotich said. This will also help boost the government’s ambition on providing trade and technological exchange opportunities between Kenya and the world. The manufacturing sector’s contribution to the GDP has been declining, from 9.3 per cent in 2016 to 7.2 per cent in 2021, Economic Survey shows. Manufacturing was among the former government’s Big Four Agenda, alongside food security, universal health, and affordable housing. 22 Kenyan companies dealing in tea, coffee, avocados and flowers are taking part at this year’s expo, which gives them an opportunity to seal deals with Chinese partners. China has in recent years made inroads into the Kenyan market away from the infrastructure space. There are about 323 projects by investors from China worth Sh157 billion, KenIvest notes, creating about 30,000 jobs for locals. China is also among the top ten investors in the country with about 400 companies in operation. “The investors themselves also serve as Kenya’s ambassadors to other countries as they also seek more partnerships,” he noted. Afripeak Expo Kenya managing director Gao Wei said there is a need to link local enterprises to better technology as a way of enhancing their productivity. He said that they are in full support of the new administration’s ‘Bottom-Up’ economic model, that aims at uplifting the Small and Medium size Enterprises (SMEs) to reach their full potential. “We pledge to support the current government’s economic model which offers a platform for both local and international business communities to share technological advancements, and boost local production capability,” Wei said. The expo is coming at a time when the government is putting in place measures to support businesses in post-Covid recovery. Source: The Star Newspaper.

Kericho Gold Receives Superbrands Status

Posted on November 7, 2022 (December 17, 2023)

Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety of tea leaves. The seal, which signifies a brand’s capability to command respect from its customers and thereby be able to command a premium, is awarded by independent and voluntary panels of experts from a range of backgrounds, known as the ‘Brand Council’, after a thorough vetting. Speaking during the awarding ceremony, Kericho Gold Managing Director, Fahim Ahmed, noted that the years of being one of the leading tea leaves, their consistency in offering quality and premium consumer products and their culture of “striving for success” within the organization played a big role in the awarding of the Superbrands status. “Outstanding brands distinguish themselves through collaborative enterprise, creative marketing and superior products. For Kericho Gold, it’s a joy to have our products differentiate us from another brand. Our many years of hard work, uncompromising quality on our products and the culture of “striving for success” has made it possible to achieve this great milestone,” said Ahmed. Ahmed emphasized Kericho Gold’s commitment to maintaining the same quality standard of tea leaves. “Receiving this honor today is a statement of trust and confidence in our range of tea products. As a company we will endeavor to ensure the same quality of tea leaves is maintained every time and our customers continue enjoying products that adhere to global set standards in quality taste and safety,” mentioned Ahmed. Awarding the Superbrands Seal, Project Director and Associate Publisher at Superbrands East Africa, Jawad Jaffer, noted that a high profile of the brand reassures existing customers that they are buying the right brand and motivates potential customers to try the brand. “Our mandate as an independent arbiter is to encourage quality products for the market from manufacturers and service providers. Suppliers and customers are reassured that they are working and dealing with a great brand,” noted Mr. Jaffer. “Research by Nielsen, Synovate, BDRC, TNS and other research companies have found that consumers are more than 70 per cent more likely to purchase products or services displaying the Superbrands Award Seal. This thus translates to more sales for products and services, an added advantage for companies,” he said. Qualified and participating brands will receive the” Superbrands Award Seal” which can be used to symbolise their “Superbrands Status” on their advertising and marketing materials, website and packaging. Kericho Gold joins about 20,000 major brands in more than 85 countries worldwide that have achieved the Superbrands status. Source: Capital FM Kenya

Covid-19 positivity rate hits three-month high

Posted on November 7, 2022

The Covid-19 infections have risen to a three-month high in November, raising fears that Kenya may be headed for a new wave. Data by the Ministry of Health shows that the positivity rate hit 9.5 percent on Tuesday, the highest rate last recorded in July. The Health Ministry attributes the current spike to the cold weather, which has seen an increase in tract infections, including flu. “The infections are projected to rise given that the country is experiencing cold weather and we are still facing the influenza period. The public should be more vigilant as Covid-19 is still with us,” said Dr Willis Akhwale, the Vaccines Deployment Task Force chairperson. The cases have been on a gradual rise of above five percent in the past 14 days, recording a positivity rate of above two percent in mid-October before shooting up in the last week of the month, putting the country at high risk, based on the World Health Organisation (WHO) recommendations. Nairobi County has been mapped as the most infected area with the latest data showing it accounted for 75.3 percent of the total positive cases recorded. However, the county still leads with the number of fully vaccinated people at 54.3 percent. According to the WHO, a country is at high risk if the positivity rate rises above five percent for 14 consecutive days, and, therefore, advises for restrictions to help curb the spread. “More than one year since the exercise started, the country still faces vaccine hesitancy, worsened by the lifting of the containment measures by the ministry that has made Kenyans assume the disease is over,” he said. So far just 36.2 percent of the adult population has been fully vaccinated, even as the country targets to jab at least 27 million people by the end of the year. Since the positivity started rising, people are slowly returning to wearing masks in crowded places. Source: Business Daily Newspaper.

Bungoma Eyes Tourists, Sports Lovers Through A New Sports Club

Posted on November 7, 2022

Bungoma County is banking on a new entertainment and recreational facility to woo tourists and local entertainment lovers. The club, which is in partnership with a private investor, is a state-of-the-art amphitheater with a sitting capacity of over 500 people. It also seeks to capitalize on the upcoming World Cup 2022 tournament through matches. “At Wanangali Sports Club we not only are promoting sports and culture but also being champions at eradicating poverty levels for our county and this can happen through skills enhancement and opportunities to train and play football with good quality facilities,” Wanangali Sports Club General Manager (GM) Dustin Kagwa said. Apart from sports and culture, Kagwa said the facility promotes local football through annual tournaments, attracting thousands of young people. The club also plans to collaborate with the National Government to scale up tourism, sport, and culture through annual festivals. Private members can join the health club as a corporate, or family, with a joining fee ranging between Sh150,000 to Sh250,000. The cost is inclusive of a spa, gym, amphitheater, and restaurant. Source: Capital FM Kenya.

Sh4.8 Million Malaysian Car Unveiled In Kenya

Posted on November 4, 2022

Simba Corporation has unveiled a Sh4.8 million station wagon car, targeting buyers seeking brand new vehicles. The PROTON X70, which comes with 1.5-liter engine, is a luxury sports utility vehicle (SUV) produced by the Malaysian car maker PROTON. PROTON is one of Malaysia’s top automotive manufacturers with presence in more than 30 markets worldwide. The brand was first introduced into Kenya in 2020. So far, over 150 vehicles have been sold. Simba Corp said it had invested over Sh243.1 million ($2 Million) into the Associated Vehicle Assemblers (AVA) for local assembly of Proton vehicles. Speaking after unveiling the vehicle, Simba Corp Chairman Adil Popat said the sell of Proton X70 started two years ago with the assembly of the Proton SAGA at our AVA facility in Mombasa. “The local assembly of Proton SAGA has helped us to introduce the Proton brand into the Kenyan market. Today marks another milestone as we launch the PROTON X70,” Popat said. “We are very excited that the market has embraced this brand, and we are happy to continue introducing new Proton products into the market,” he added. According to a TechSci Research report, growing demand for performance cars, increasing product offerings, rising preference for off-roading activities and expected entry of several automakers will drive the sales of SUVs in Middle East & Africa through 2023. “We are proud to partner with a strong brand such as Proton, the largest automotive manufacturer in Malaysia,” Simba Corp CEO Dinesh Kotecha said. “After the success of the Proton SAGA, the first fully built, locally assembled salon car, we are proud to now introduce the brand-new PROTON X70.” He added. Source: Capital FM Kenya.