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Equity Group Foundation is committing Sh20 billion in the next five years in a plan to transform farming into commercial ventures through loans to medium-sized farmers. Through its Agriculture Entrepreneurship Accelerator Programme, the foundation seeks to benefit farmers with 10-100 acres to turn farming into serious commercial enterprises — enhancing food security and bridging the annual deficit. The scheme will see beneficiaries get a minimum of Sh1 million with the bank targeting 20,000 farmers under the programme. “Basing on the success that we have had on our pilot study, I can say confidently that we are going to spend up to Sh20 billion in the next five years under this programme,” says Equity chief executive officer James Mwangi. The bank and the embassy of Netherlands have been running a three-year Sh341 million Agriculture Entrepreneurship Accelerator Programme that targeted medium-sized farmers in Eastern, Central and Rift Valley regions. Challenges Mr Mwangi said the foundation will continue to work with industry partners to intervene on areas where the project beneficiaries still face challenges that hinder them from realising increased farm income. The project, said Mr Mwangi, has directed its activities to facilitate production related trainings such as soil health and crop management, dairy production, water management and post-harvest handling. Mr Mwangi noted that enhancing the agricultural value chain amongst farmers will play a key role in ensuring food security in the country. The Netherlands Ambassador Frans Makken noted that food systems must not only be able to provide food security to the growing world population but must also deliver diverse, nutritious diets that are affordable and accessible to all. Climate change “Improved agricultural productivity must be coupled with increased resilience to climate change and reduced greenhouse gas emissions. “In addition, for agriculture to deliver on its full potential, value chains must be strengthened. Mr Makken said his government will continue supporting organisations that see the need to support farmers in their endeavours. Equity Bank and the Ministry of Agriculture last year signed a Sh300 million agreement to finance farmers under phase two of the Agricultural Credit Guarantee Scheme (ACGS), in which the government provides collateral. Source: Business Daily

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Japanese automaker Isuzu Motors Limited has officially launched its East African operations in Kenya following the buyout of a 57.7 per cent stake in General Motors East Africa (GMEA) in February 2017. Mr. Susumu Hosoi, Chairman of Isuzu Motors said that Kenya was an important market with great potential in Africa. He says they are keen to strengthen after sales business in the country by deepening linkages with Isuzu Motors International, based in Dubai whose service network covers Africa and Middle East. Isuzu EA officially changed its name from GM East Africa in July 2017 after attaining the required regulatory approvals. The move, by Isuzu Motors aimed at increasing focus on the Isuzu brand that constituted 95 per cent of GMEA sales. Source: Think Business

South African hospitality group City Lodge has opened doors of its Two Rivers Mall hotel adding to Nairobi’s bed space and raising competition in the sector. The international hotel chain said in a statement the first 40 rooms opened on January 15 while another 44 will be available by the beginning of February. It hopes to be fully open by the end of February. “We are extremely excited about the prospects for this hotel, which is the biggest we have developed outside of South Africa,” said chief executive for City Lodge, Clifford Ross. He added the hotel is situated in an important growth node of Nairobi and will complement the group’s other hotels and give impetus to its East African expansion programme. This is the group’s third hotel in Kenya’s capital and its 59th in Southern and East Africa. It also runs Nairobi’s Fairview Hotel and Town Lodge. City Lodge has tapped veteran Kenyan hotelier Miriam Obegi, formerly assistant general manager at the Fairview Hotel as general manger. Two Rivers is one of the largest mixed-use developments in the country and on completion will have offices, a hospital and residential houses in addition to the shopping mall that opened doors early last year. City Lodge says the new property is part of its local and regional expansion plan. It is also developing the 147-room City Lodge Hotel Dar es Salaam, Tanzania, which is expected to open in early part of 2018. Competition for guests—including business travellers, conference participants and holidaymakers—is set to rise as analysts forecast more supply of rooms to hit the market in the medium term. A report by PricewaterhouseCoopers (PwC), Hotel Outlook 2017, estimates that a total of 13 hotels are set to open in Kenya over the next five years, growing the bed space by over 2,400 rooms. Source: Business Daily

French firm Total SA has committed to invest in the Lokichar-Lamu pipeline, boosting Kenya’s efforts to develop its own oil fields and realise its ambition of joining the league of oil exporters. The deal was brokered in Nairobi on Tuesday during a meeting between President Uhuru Kenyatta and Total’s executive committee member and president for marketing and services Momar Nguer. State House spokesperson Manoah Esipisu said the French firm has been cleared to buy shares in Maersk Oil blocks in Kenya after it committed to developing the Lokichar to Lamu oil pipeline as the only evacuation route for Kenya’s crude oil. “Following Total SA’s commitment, the government has consented to a proposed acquisition of the issued and to-be-issued share capital of Maersk Oil Exploration International (Mogas Kenya) in respect of Blocks 10BA, 10BB and 13T,” said Mr Esipisu. The deal represents an about-turn almost two years after Total ditched the Kenyan route in favour of the Uganda-Tanzania option for evacuation of crude oil from East Africa’s oil fields. It also presents the East African region with the prospect of having two crude oil pipelines, one running from Kenya’s Turkana oil fields to Lamu Port and the other from Western Uganda to Tanzania. Uganda and Kenya are the only countries with crude oil in the region. Uganda’s proven recoverable reserves are estimated at two billion barrels while Kenya’s is at 750 million barrels. “Kenya is optimistic that the entry of Total into the Joint Venture will strengthen the financial resources and technical competence that is required to accelerate the development of the resources in these blocks,” said Mr Esipisu. “President Kenyatta said his administration would accord support to Mogas Kenya and Total SA, and indeed other private sector players that are keen to develop the country’s resources with the goal of delivering shared prosperity,” he said. In early 2016, Total opted for the Uganda- Tanzania route after it expressed concern over the security of the infrastructure running through the ‘wild’ North and North Eastern Kenya. Total was reportedly influenced by a security report compiled by an unnamed non-governmental organisation. The report is said to have warned of high risk of attacks by Al shabaab terrorists within the Kenyan territory, prompting Total to opt out. Faced with the prospect of an endless wait, Uganda later decided to build its crude oil pipeline through Tanzania’s Tanga port, leaving Kenya to its own devices. Uganda and Tanzania launched construction of the 1,445-kilometre crude oil pipeline last year with Total as one of the three participating private firms. Officials estimate that the $3.35 billion project could be ready by end of next year. Kenya, has on the other hand been toying with a short term plan to have its Turkana crude oil transported by trucks and standard gauge railway to Changamwe jetty before shipping to international markets. Kenya had initially set itself an ambitious target of getting its crude to the international market before August 8, 2017 General Election but later postponed the plan indefinitely over logistical challenges. Source: Business Daily