Investor seeks to put up anti-cancer vials-maker in city

A cyclotron machine to manufacture Fluorodeoxyglucose (FDG) vials, a medical product used in radiotherapy rooms to treat cancer, is set to be installed in Nairobi. Regulatory filings by investor Advanced Molecular Imaging Ltd indicate the production facility, if approved, will be erected at Nairobi’s Emirates Business Park and has been assigned a nominal investment value of Sh20 million. Cancer Care Kenya medical director N. Adamali, neuro-radiologist Alfred Odhiambo, Kenya Society of Hemato-oncology chairperson Catherine Nyongesa, clinical oncology and palliative medicine specialist the late Eliud Njuguna and M.P. Shah Hospital’s Social Service League chairman Manoj Shah gave a nod to the project. “They have recommended the necessity of addressing cancer related problems through the introduction of a FDG Cyclotron facility in Nairobi,” said the Environmental Impact Assessment report. The project will entail construction of a special room with one-metre thick walls where the Cyclotron tank and its accompanying machinery will be installed. Its operations will be conducted from an adjacent room via a computerised network. The FGD vial (fluorinated glucose) is injected into a patient where cancerous cells quickly consume the FD sugar creating a (radio) trace of the infected tissue area that is then detected by a Positron Emission Tomography (PET) scanner. The project’s location is informed by proximity to airports to facilitate easy and swift transfer to hospitals providing the service as FDG vials are highly Source: Business Daily

Safaricom unveils plan to empower business women

To succeed in getting the women-owned enterprises increase their participation in procurement to 10 per cent, Safaricom has taken a deliberate step in awarding such businesses work in areas that are capital intensive such as building of base stations, laying fibre and other work related to infrastructure expansion. Safaricom has been spending more than Sh32 billion annually to expand its infrastructure. One such organisation is Fireside Communications, which has built its work force from 10 to 127 in three years. “When we started, we were only offering connectivity solutions to Safaricom’s small enterprise customers. We have recently been awarded a tender for the provision of fiber to the home rollout which includes design and layout, among others,” Fireside group chief executive Rebecca Wanjiku said. “This has given us an opportunity to improve our management and grow the business; to be more competitive and stay winning,” she added. Beyond income, Ms Wanjiku says the award has also opened other doors for her business. “Doing business with Safaricom has improved market perception about Fireside, allowing us easy access to other services. Banks that would not even talk to us are now approaching and offering us financial facilities with minimal farce. We have also been able to attract and retain some of the best brains in the market,” Ms Wanjiku added. READ: Gates Foundation pledges Sh17bn to empower women Fireside has also increased the number of women in its engineering programme from eight to 12, with a target of 20 by next month. “This programme targets women in diploma, certificate courses in engineering and in some cases, those with high school certificates, but with the right attitude”, said Ms Wanjiku. She added that while studies show that gender parity is far from being a reality, companies like Safaricom and Fireside are examples of how the private sector can take the lead in helping accelerate gender equality. The push for gender parity in procurement follows a successful campaign in bridging the gap at the workplace. Safaricom indicates that 51 per cent of its total workforce are women. The fight is now shifting to the top positions. “While we have made great strides as a business in terms of our overall gender parity, women are still relatively underrepresented at senior management levels. It is an issue that we are determined to address,” said Mr Ogutu. According to a new report released by WomenRising2030, an initiative launched by the Business and Sustainable Development Commission, women’s leadership in business is critical to driving significant economic opportunities and driving better performance, as well as broader, long-term benefits for society and the environment. The ‘Better Leadership, Better World: Women Leading for the Global Goals’ report , argues that, gender equality in the workplace can help unlock more than US$12 trillion in new market value linked to the UN Sustainable Development Goals. The report identifies six leadership competencies critical to successfully developing business opportunities in line with the Global Goals: long-term thinking, innovation, collaboration, transparency, environmental management, and social inclusiveness. Source: Businesss Daily  

US firm, Strathmore roll out agriculture training

American-based agricultural equipment manufacturer and distributor, AGCO, in partnership with Strathmore University have launched a training programme aimed at driving African agricultural prosperity. Following the launch of the training programme, 20 students were enrolled. The new training initiative, dubbed AGCO Agribusiness Qualification (AAQ), is an accredited two-year agribusiness programme for students aged between 20 and 30 who already hold a degree. On completion of the course, successful candidates may have the opportunity to join AGCO and its partners. The course is a joint effort by AGCO, Strathmore Business School (SBS) in Nairobi, Harper Adams University in the UK and Kenya-based The Bridge Africa which runs programmes to prepare graduates for employment. “This is an important day for agribusiness education in Africa and I warmly congratulate our new students on gaining their places on the programme. The AAQ was initiated by AGCO as a direct response to attract and develop young talent in the crucial agribusiness sector,” said AGCO Senior Vice President and General Manager Asia-Pacific and Africa, Gary Collar. The course syllabus covers areas such as agricultural mechanisation, leadership skills, business management, agricultural science, marketing and farm management. “Together with our partners, we are making a long-term commitment to address the management skills’ shortage. We are determined to foster the expertise required to work successfully in the agricultural supply chain and tackle the current recruitment challenges our industry faces here,” he said. Source: Business Daily

Interbank rates fall further as big financiers borrow cheaply

The interbank rate eased further this week, hitting 4.97 per cent on Thursday on the back of increased borrowing by the larger financiers, forcing rates to come down further. This was about the same level as at the end of last week. Latest Central Bank of Kenya (CBK) data shows that the weighted average rate at which banks borrow from each other on emergency basis stood at 4.95 per cent at the close of business last Wednesday (February 28), down from 5.4 per cent between Mid-February and February 22. “The weighted average interbank rate… decreased to 4.95 per cent from 5.14 per cent in the previous week, largely reflective of large banks dominating borrowing at lower rates,” said the CBK. The volumes traded in the interbank market increased to an average of Sh13.8 billion during the week ending February 28, 2018 from Sh10.6 billion the previous week, (week ended February 21) with the CBK saying this partly reflected spillover of VAT tax remittances by banks. Similarly, the number of deals in the interbank market increased to an average of 32 from the previous average of 24. Banks borrow and lend money to each other in the interbank market in order to manage liquidity and meet the reserve requirements placed on them by regulators. The rate depends on maturity, market conditions and credit ratings. Tier-one banks have been on the spot for hoarding cash and failing to lend to their small counterparts forcing them to resort to the CBK facilities. But in proposed reforms small lenders could soon be allowed to pool collateral in the interbank money market in a bid to cushion them from discrimination and unfair competition from their bigger rivals. CBK governor Patrick Njoroge said last September the shared security facility would be run centrally and help improve liquidity in the interbank market. Source: Business Daily  

Kenya mulls tax incentives to attract research funding

Kenya is considering giving tax incentives to attract funding for research, an official said Thursday. Micheni Ntiba, Principal Secretary for University Research, said through the National Research Fund (NRF), the government intends to give tax incentives to attract funding from the private sector, philanthropists and development partners. “We plan to give tax waivers, award schemes and recognitions to attract partners into funding research activities in the country,” Ntiba told a forum in Nairobi. He however noted that due to competing demands from other sectors to the national Treasury, it is unlikely to meet the 2-percent research funding from the gross domestic product (GDP) as planned. He also said the government is exploring the possibility of introducing contract research, where private sector player’s funds target research in addressing an issue for the industry. The PS observed that failures in attracting additional research funding may become disastrous to the country as key development commitments such as Sustainable Development Goals (SDGs) may not be achieved as planned. Source: www.xinhuanet.com

Kenya is readying to set itself up on the global film stage

In an evening in 1952, princess Elizabeth of the United Kingdom went up the Treetops Hotel near Nyeri town in Kenya’s central highlands with her husband Philip. The hotel was built on top of trees and near a waterhole to give guests a view of the congregating wildlife from relative safety. The next morning, when the 25-year-old princess descended, she was told that her father, King George VI, had died—effectively making her queen. When the opportunity came to depict this historic moment in Netflix’s grand saga about British royals The Crown, it was shot not in Nyeri or Kenya but more than 5,000 miles away in Cape Town, South Africa. Kenyan filmmakers jumped on this, lamenting the state of filmmaking in Kenya and criticizing the government for failing to lure in big budget productions from Hollywood and beyond. Eugene Mbugua, an award-winning television producer, wrote a column, noting the licensing and taxation required of filmmakers before shooting in Kenya was so prohibitive “so much so that it’s cheaper to build a mini Kenya in another country for a movie scene.” His views were contested by the film board who said there was “no evidence” producers either wanted to come to Kenya and if they were ever denied a license. Kenya has a nascent but vibrant film industry and has for decades been an important location for filmmaking. From the Oscar-winning Out of Africa to The Constant Gardener, the BBC’s Big Cat Diary and Netflix’s Sense 8, the country’s beaches, bustling capital, an abundance of wildlife, and landscape diversity have attracted producers. On the local level, directors have produced globally-recognized feature-length films like Nairobi Half Life and Kati Kati, short films like We Need Prayers, and crime thriller series like Tuko Macho. And as the 90th Academy Awards ceremony gets underway today (March 4), Watu Wote: All Of Us, a movie about a true story of terrorism in Kenya is nominated at the Live Action Short Film category— giving the relatively young film industry a boost on the global stage. Yet the sector is bedeviled by several problems including infrastructure and skill development, financing, equipment provision, and promotion. This has left Kenya lagging behind its competitors in Nigeria, Morocco, and South Africa, who have used a blend of financial incentives and logistical support to attract international productions like American Sniper, Game of Thrones, Homeland, District 9, and Blood Diamond. George Gachara, a co-director of the Nairobi-based the Nest Collective, said part of the difficulty in jumpstarting the industry was related to “punitive” regulations. To shoot in Kenya, both local and foreign filmmakers he said are expected to incorporate a company, register as an agent with the film department, acquire a license, submit the script for regulatory appraisal, strictly state the number of days and locations of the shoot, and then pay a daily rate to use them. All this, he said, creates a “hostile” environment that deters many from coming. “If you think of other professions, the government is heavy-handed and very suspicious about film,” Gachara said. Part of this bureaucracy is the responsibility of the Kenya Film Commission, the government agency that regulates all visual content. Its head Ezekiel Mutua is a controversial figure who is known as the country’s censor-in-chief. Mutua once called Netflix a threat to Kenya’s “moral values and national security,” banned cartoons and movies for glorifying homosexuality, forced Coca-Cola to remove a kissing scene from a TV ad because it violated “family values, and introduced draconian law that was eventually scrapped which sought to censor the media and film content. Instead of focusing on “moral” caveats, industry specialist says the commission should boost creative production by helping create film schools, attracting financiers to open more studios, underwriting projects by upcoming filmmakers, lobbying the government for more rebates for producers, and promoting Kenyan films abroad. “The industry is very isolated” as it is now, Gachara states, and cannot even adequately support international filmmakers when they come to Kenya. To transform the movie business, Kenya is considering amending its existing film law, a revised colonial act that stakeholders have said needs improving in its scope, and basing its classification and enforcement powers on the constitution. Amendments to the Copyright Bill are also expected to tackle piracy, allowing filmmakers and artists to receive a fair compensation for their work. Through the new reforms, Kenya also plans to introduce a highly competitive new tax incentive for foreign producers working in the country. If this happens, it could help boost the country’s cinema revenues, which is expected to reach $7.7 million in 2020, according to PricewaterhouseCoopers.   Telling our stories Despite all the problems, Mbugua says it is important local filmmakers produce resonating artistic and historic work that will champion the story of Kenya on the global stage. While cognizant of the need to deepen the country’s place in the global value chain, it is important he said to be aware of the type of stories being told and the conversations they elicit about Kenya as a nation. Part of that interest in filmmaking should be encouraged in schools—something that Kenya’s new curriculum is already considering by introducing classes in visual arts and performing arts. “Our story is very unique because of the role we play in the continent and the role we play in the world’s history,” he said, drawing on the example of The Crown. “But it is unexploited. And that’s a downside.” Source: qz.com

World Bank bets billions on Kenya’s private firms

The World Bank’s private sector lending arm, the International Finance Corporation (IFC), has invested Sh17.7 billion in two Kenyan companies in the first two months of the year in a move that signals increased interest in local firms. The IFC says the two investments have pushed the cumulative value of its presence in Kenya, including pending commitments and exits, to $1.9 billion (Sh194.6 billion). Companies in diverse sectors of the Kenyan economy have received major investments from the international financier in the form of equity, debt or a mix of both. The IFC has financed the investments directly or through private equity and most of the investments have been largely used to fund growth in the local and foreign markets Kenyan firms are increasingly taking debt and equity investments from the IFC and other global financiers, including European Investment Bank (EIB), Agence Française de Développement (AFD), Proparco and DEG to compensate for the limited funding opportunities in local capital markets. IFC has invested in more than 150 local companies including Britam , KTDA Power Company, Goodlife Pharmacy and KCB Source: Business Daily

Kenyan business people reach out to the Emirates

The Kenyan business community has engaged the Emirates in talks geared towards facilitating local entrepreneurs in agribusiness to access global markets. This comes even as a large number Kenyans stare at starvation blamed on heavy reliance on rain-fed agriculture, pests, diseases and poor farming practices among a litany of woes facing the sector. But the Kenya National Chamber of Commerce and Industry (KNCCI) has said there is need to help Kenyan entrepreneurs market their products across the world as one way of enhancing incomes. At a meeting in UAE last week, the chamber noted that Kenya can borrow a leaf from the gulf country on boosting food security in line with the government’s four key development pillars. The other three entail boosting manufacturing through value addition of local products, provision of universal healthcare and affordable housing. “We have had discussions around food security and they (UAE) have agreed to provide opportunities for Kenyan business people in the agribusiness sector to access markets across the world,” said KNCCI chairman Kiprono Kittony. The talks were held on the sidelines of the Gulfood 2018 mega show and the UAE-Russia-Africa forum at the Dubai World Trade Centre between February 18 and 22. Mr Kittony said the Kenyan delegation to the event also lobbied the UAE government to extend long-term visas to Kenyan businessmen to enable them to effectively market their products in the oil rich country. “Currently, Kenyan business people are only given short-term visas to Dubai. We have engaged the UAE government to look into this and accord our business people long-term visas of at least one year so that we have ample time to market our products,” he said. The talks also dwelt on ways through which Kenyan entrepreneurs could form networks with their counterparts in Dubai and Russia, according to the chairman of KNCCI Nairobi chapter Richard Ngatia who was in the delegation. “Our aim is to ensure that the business communities in the two countries use Kenya as a business hub in the region,” said Mr Ngatia. “We want to see how the UAE government can support us in terms of resources to put up facilities for food storage and waste management in our cities.” Mr Ngatia said they learnt lessons from the UAE, a desert country, which has been able to achieve food security in very harsh conditions. Nairobi Governor Mike Sonko, who led the Kenyan delegation, emphasised the importance of enhancing food security in the country. “Kenyan farmers rely heavily on unpredictable rain to grow crops. Rains which at times fail or are poor,” he said. In tackling food insecurity among the urban population, Mr Sonko cited the various interventions the Nairobi County government had put in place, among them the development of the Nairobi City Agribusiness Strategy and the Urban Agriculture Promotion and Regulation Act, 2015. He, however, said Nairobi was still experiencing post-harvest losses due to poor storage, below par transportation system and high unemployment levels especially among the youth. However, these challenges had created investment opportunities in areas such as improved technologies in post-harvest management; increased food production using new technologies and improved food distribution methods. During the talks, UAE expressed interest in working with the Kenyan private sector and more specifically addressing the challenges facing the small and medium enterprises by increasing international trade and opening up of new markets for Kenyan products. READ: Agency says 28 million Africans in ten States face starvation The Nairobi County Executive for Agriculture Danvas Makori used the forum to seek partnerships and investment opportunities in Dubai in the areas of livestock management, Halal production, waste management and the dry port management. Also in the 37 member delegation was the KNCCI national vice chairman James Mureu and the chamber’s Nairobi chapter chief executive Nemaisa Kiereini. The KNCCI Nairobi chapter is also engaging the Nairobi County to explore ways through which the business community can contribute to the Nairobi County Integrated Development Plan CIDP 2018-2022. KNCCI underscored its commitment to partnering with the government towards boosting food security in the country. The government targets to produce 2.8 million bags of maize, potato, rice and feeds in 52,000 acres by the end of this year. Source: Business Daily

Fashion chain LC Waikiki to open Coast store April

International fashion chain LC Waikiki will open its Mombasa store in April, the brand’s third outlet a year after it entered the Kenyan market. The branch will be located at City Mall in Nyali, a prime residential area within the coastal city. LC Waikiki begun recruiting staff for the branch in August last year, when the firm announced the search for a store manager to be based in Mombasa. A week ago, the brand made its latest job announcement seeking a sales assistant, section manager, store visual merchandiser, warehouse personnel and logistics specialist for the same branch, an indicator that the store was warming up to its opening date. The Turkish retailer opened its first sub-Saharan Africa store at the Two Rivers Mall in February last year and the second in October at the Hub Mall in Karen. The firm is one of the fastest-growing retailers in Europe with a turnover of $3 billion. Started in Turkey, where it now has around over 486 stores, the brand has expanded to over 35 other countries globally. During the launch last year, LC Waikiki indicated that Nairobi was a launching pad targeting 1,500 stores in Africa by the end of 2023. The firm said it settled on Kenya due to its stable economy, low market saturation, a fast-growing retail oriented middle class and rapid urbanisation. LC Waikiki is part of the brands that have been jostling for space in the malls opening across the country. The Foschini Group of South Africa, UK’s F&F and jewellery firms including Austria-based Swarovski have also opened shop in Nairobi. Source: Business Daily

US food chain Hardee’s set to open third store at Two Rivers

American burger chain Hardee’s is set to open its third branch at Two Rivers Mall in March, barely a month after unveiling its second outlet in Kenya on Westlands Road. Hardee’s Kenya general manager Rohit Gambhir in an interview said the Two Rivers branch is targeting the large number of shoppers visiting the mall, while the Westlands branch taps employees of blue-chip companies based in the area. The fast-food brand opened its first outlet in Sub-Saharan Africa inside Kenya’s Jomo Kenyatta International Airport mid-2016. The three branches will employ 60 workers, Mr Gambhir said. “Our expansion drive this year has been inspired greatly by the positive growth recorded by the firm over the time we have been in Kenya and the growing demand for our products and services. Giving quality and something refreshing to our customers is why we have been able to record growth,” said Gambhir, an ex- KFC executive. Hardee’s, known for its charbroiled burgers, operates over 3,800 franchised or company-operated restaurants in 44 countries. The fast food brand currently has over 35 restaurants in Egypt. Suzan General Trading Ltd, which runs duty-free shopping complexes and mini-hotels at airports and sea ports and owned by Dubai-based businessman Arif Hafiz, is the franchise owner of Hardee’s in Kenya. CKE Restaurants Holdings, which owns the Hardee’s brand, said during the opening of the first branch in Kenya that the country offered a perfect entry point to the region underlined by its geographical position and projected increased consumer spending on food and drinks. Source:Business Daily

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