WHY TRAVELLING MAKES YOU SMART

Traveling will make you “smarter,” doesn’t imply that you’re all of a sudden going to become a genius. But travelling will certainly make you more worldly, broaden your mind observing different cultures and languages at the same time.

On the other side of the coin, travelling tends to be dangerous sometimes. It invites many mishaps such as accidents that cause injuries. In this manner, the injured has the right to call his injuries lawyer belonged to Kent car accident lawyer firm for legal assistance.

There are a lot of things you can burn through cash on that don’t expand your IQ, yet travel is one savvy investment that pays yearly profits past the enjoyment of boasting to your companions about your latest vacation. Believe it or not, travel really makes you smarter.

Here are five different ways travel makes you broad-minded.

1. Extended Reality

Heading out to new places truly builds up your sense of reality. As you drink in new sights and sounds, you are expanding the scope of your understanding of the world around you and of new cultures that are unique in relation to yours, which can prompt a wide range of decency, incorporating uplifted achievement in your career, as indicated by one study.

2. Boosted Brain Power

Travel fuels your mind to work at a higher level. One investigation demonstrated that retired individuals who travel have 75 % higher paces of mental stimulation, and 82 % have an increased ability to “complete things,” vs. 57 % of the individuals who don’t travel. The study suggests that “business support utilization of vacation time as an approach to improve wellbeing and health in the workplace.” Take note, bosses all over the place!

3. Better Memory

Venturing out to another nation, or even another area in your nation, where various languages or various inflexions or idioms are spoken, helps to enable you to focus and use short term memory. Obviously, there are additional advantages to learning words and expressions in different dialects that are not found in your local tongue, as it outfits you with methods for portraying things that your essential language might need.

4. Increased Creativity

Taking in the tasteful significance of the Eiffel Tower or La Sagrada Familia isn’t simply charming; it really improves your very own imagination. The more time you invest in different nations, the more creative you become. Adapting to new scents, tastes, and sights make new neuropathic paths in your brain, which empower new ways of thinking and expand your flow of creativity.

5. Strength in Vulnerability

If you’ve ever touched base in an outside nation with zero learning of the language, culture, or social norms and need to battle to make sense of how to get to your goal in one piece, then you recognize what vulnerability feels like. It tends to be startling from the start, however, it’s that capacity to think and react quickly and handle a circumstance that causes you to acknowledge exactly how strong and competent you are. To cite the Buddhist instructor Pema Chödrön: “To be completely alive, completely human, and totally alert is to be consistently tossed out of the home.

Conclusion

One’s destination is never a place, but a new way of observing things.

THE MONTH OF PATIENCE

People usually tend to be impatient if they do not use their mind, conscience and will. Usually, people seek to easily get what they want with little effort, solve a problem immediately, overcome a difficulty, and that the troubles would pass quickly. However, as a requirement of the trial on earth, sometimes things are not solved in such a short time. Sometimes, it may be necessary to work towards something for months, even years, and have patience for a very long period of time. For this reason, people should refrain from misconceptions like “It doesn’t work,” “I should give up making an effort.”

As we all know patience means being less strict towards time. Believers know that patience overcomes all the difficulties they will face in the worldly life, and that it will lead them to the right path. For this reason, with great patience they become self-sacrificing, with patience they forgive people, and with patience they become generous. People who love God and believe in God with all their heart will improve themselves in many ways. One of the beauties of the month of Ramadan that we are in is that it enables people to improve themselves in terms of patience, both bodily and spiritually.

Our Prophet (S.A.W) stated that the month of Ramadan is a month of patience in one of his hadiths, which is as follows:

“O People! There comes upon you now a great month, a most blessed month, in which lies a night greater in worth than one thousand months. It is a month in which God has made compulsory that the fasting should be observed by day; and He has made the worship (tarawih) by night a sunnah. This is indeed the month of patience. And the reward for true patience is paradise. Ramadan is the month of sympathy with one’s fellowmen. It is the month wherein a true believer’s sustenance is increased. (Ibn Khuzaymah, Sahih, III, 191-192,) (Thk. M. M. A’zamî)

Patience is a great virtue, as our Prophet (SAW) remarks, and the month of Ramadan is a very valuable period of time where one can direct his will for this purpose without succumbing to the things we like and take for granted every day. The patience shown until the end of Ramadan will bring the comfort of surrendering to God. Ramadan is an opportunity, a way to train ourselves in spirit and body, to show our love and commitment for God.

Just like we know when the time comes for prayer and we perform it, being patient is also a worship. For this reason, a person who does not eat or drink when he is hungry or thirsty because he is fasting is actually fulfilling another beautiful manner of worship by having beautiful patience.

Whenever someone is being patient, he becomes closer to God and his commitment to God is strengthened. When someone shows patience for God’s favor, it also becomes a reason for happiness for him. Tolerance is people doing something to get it over with as soon as possible, to earn other people’s favors, and, indeed, is not the same kind of worship as patience is. A person who is in a state of mind to just tolerate something is not at peace. That is why it is important and valuable to be patient and not just tolerant during Ramadan as well. And this means that a Muslim displays good morals, speaks beautifully and always give priority to others even when he is hungry, thirsty and tired.

THE CONFUSION

Kailani noticed a bunch of bulky figures standing in the doorway. "What the...?" Suddenly, the party music screeched to a halt. There were confused murmurs and somebody's voice rang out. "Cops!" "Everyone, freeze!" one of the figures called out at the same time. Pandemonium ensued. Students shoved toward the doors, nearly knocking Kailani to the ground. Several police officers ran into the gym and grabbed students. Sirens whooped outside, and microphones blared instructions to freeze and stay calm.

She cut through the mass of kids. Girls hobbled towards the door, unsteady in their heels. Guys took shortcuts over the bleachers, stumbling over the risers. A lacrosse player who'd had too much to drink bumped against Kailani. Students poured into a hallway that lead to the parking lot just as a police car screamed up the entrance. Wheeling around, she sprinted in the opposite direction, down an unfamiliar passage.

Then she continued down the hall, the sandals she was wearing was rubbing blisters on her feet. The hallway was dark, and she could barely see in front of her. She thought she could make out a door at the end of the hall, but what if it led to nowhere? Suddenly, there were footsteps behind her. "You!" a voice called. Kailani spun around, to see a police officer holding a club. She couldn't let him get her or find out who she was. She sprinted faster, her lungs screaming. "You there!" the police officer's voice sounded even closer. "Stop!" Kailani's hands reached out and touched something hard just seconds before she crashed into it. She pulled away, seeing a bookshelf lined with old texts. She felt around for a door, but there was none. "Oh my god," she whispered. She'd hit a dead end.

The officer's walkie-talkie squawked. "I've got one," she heard him say. Kailani looked down, then up. Her heart lifted. A small window glowed a few inches above the shelf. Even better, it was slightly ajar. Her fingers grasped a middle row of the bookshelf, and she set her feet on the bottom row and started to climb. The structure swayed back and forth as she shimmied up the shelves. "Stop!" the officer's shape was visible down the hall. He was running at a full sprint, his club raised above his head. Kailani pulled herself up to the top of the bookshelf and cranked the window as wide as she could. The space was just big enough for her to fit.

She turned onto her stomach and stuck her legs through the window. Her fingertips caught the metal grooves of the window frame as she pushed herself though and dropped to the ground. Her knees bent to absorb the impact, and her hands hit the grass hard. Then she took off running. She was free and the police officer didn't know who he almost caught.

MISFORTUNE FALLS

Andrew has always had terrible luck. From minor things such as tripping over his own two feet to even worse luck.... like that one time when he was on the yearbook committee and was taking photos of the spring play when he forgot to turn off the flash on the camera and accidentally blinding Little Suzie, causing her to stumble backwards onto the set, destroying the background and knocking over the majority of the props. Terrible luck.

One morning Andrew was walking to school when he saw an elderly man waiting for the light to change so he could cross. Andrew took a minute out of his day and helped the old man across. The man smiled graciously to Andrew and before he left he whispered something in his ear.
"Your life is shrouded in misfortune,
nevertheless you help others with a good will.
By preforming actions the superstitious would
reject you reverse your fortune."
And with that, the man walked away without another word. Andrew thought that was rather odd but he continued on his way to school.

A few hours later Andrew came home and went into his bathroom to change out of his school clothes. "I wonder what that old man meant." he thought to himself. Suddenly he had an idea.

He grabbed a compact mirror and went to the backyard so his parents and neighbors couldn't question him. Then he threw the mirror sharply on the ground, shattering it at once. While he was cleaning up the mess he made he said to himself, "I wonder if this will really change my luck. Guess I'll find out tomorrow."

The next day Andrew woke up feeling better than ever. He was sure that his day was going to be fantastic. And with that said Andrew went on with his day like never before...

MOTOR COMPANY HYUNDAI OPENS ASSEMBLY PLANT IN ETHIOPIA

South Korean motor vehicle manufacturer Hyundai has set up an assembly plant in neighboring Ethiopia. It is Hyundai’s first plant in the East African region.

Mr. Haile Gebraselassie, one of the business partners in the assembling venture said that the plant will produce passenger hatchbacks and trucks. The company expects to roll out 10,000 vehicles annually.

Hyundai hopes to attract car buyers by offering affordable alternatives to the highly priced imported vehicles. The company plans to sell its cars in Ethiopia and in neighboring Kenya, Sudan, Somalia, Eritrea, and Djibouti.

Kenya recently revised the age limit for second hand car imports to five years from the earlier limit of eight year. The move aims to reduce the purchase of second hand cars in Kenya.

The assembly plant in Ethiopia will boost the number of affordable cars available to Kenyan buyers as the assembly plants in Kenya are not able to meet demand for vehicles in the country.

WHICH COUNTIES HAD THE HIGHEST GDP

The Kenya National Bureau Statistics (KNBS) has released its first gross county product report which provides official statistics on economic size of counties, the structure of county economics and it also estimates the economic potential of the various counties in different sectors.

The publication which covers the period between 2013 and 2017 showed that Nairobi contributed Kenya’s GDP at 21.7 per cent followed by Nakuru, Kiambu and Mombasa with shares of 6.1, 5.5, and 4.7 per cent, respectively.

Only 21 counties led by Bungoma, Tharaka Nithi, Nyandarua, Elgeyo Markwet, Siaya, Nyeri surpassed the average growth in GCP per capita of 2.8 per cent.

KNBS Director General Zachariah Mwangi attributed large populations and thriving economic activities such as agriculture, manufacturing, transportation, financial, real estate and wholesale and retail trade to the high economies of these leading counties.

“Overall, agriculture and services account for the largest share of economic activity in majority of counties,” the GCP report stated.
Nonetheless, agriculture is seen to have a bigger share in contributing to the counties’ economy as major towns like Nairobi and Mombasa, which largely occupy urban centers are seen to have a declining GCP over time.

“Counties that are largely dominated by urban centers, notably Nairobi City and Mombasa, have had their shares of GCP consistently decline over the period mostly due to growth in agriculture’s contribution to gross domestic product.

“On the other hand, counties with strong presence of agricultural activities, particularly horticulture, have consistently improved their share of GCP over the period,” the report stated.

Lamu, Samburu, Isiolo, Tana River, Elgeyo Marakwet, and Baringo were listed as counties with untapped opportunities for industry sector development`while Nairobi, Kiambu, Mombasa, Machakos, Kisumu, Nakuru, and Kajiado thrived in that sector.

“More than a half of county economic activity is driven by services sector. GCP amounted to Ksh 3,992.7 billion in 2017, with services sector accounting for 54.6 per cent, followed by agriculture (24.0 per cent) and industry (21.4 per cent). However, agriculture remained the most spread across counties,” the report added.

LIFE GETS SOUR

She sat behind the wheel of a tinted Toyota Corolla, as she pulled away from Haille Selasia Avenue and joined Mombasa road where Pamela came face to face with heavy city traffic. She was ecstatic and on high on cloud nine at that particular moment, since she was going to meet her lover James, who was arriving from Lisbon, Portugal.

Poor her, little did she know that James was running away from snowy Europe and not coming for her. To James, Pamela and him are no longer in the same pot of circumstances. What was between them is now a lifetime away according to him.

The drive from Mombasa road to Jomo Kenyatta airport took almost two hours on account of heaviness of the traffic. No sooner had she arrived at the waiting bay did she meet James. He did not signal any negativity towards her. They showed each other all what lovers normally show each other after along absence from the other.

After all that exchange, they made for Outering road ready to make it to Pamela’s home at Karen. Along the way it was Pamela who was talkative but to James, internally there was nothing to celebrate in meeting her.
James spent the first night at the house but on the second and subsequent ones he plotted to stay in a Nairobi hotel. For the two weeks he was in town accessibility to him by Pamela became out of question. She tried everything at all cost to reach him, but the more she tried, the more the word impossibility dawned on her.

After the end of his stay, James flew back without saying “kwaheri” to Pamela. On reaching Lisbon, Portugal, he wrote an email back to her, what seemed more than a bombshell. Pamela went through the email as tears dripped down her cheeks. She was unable to come to terms with what she read. To her, that was profoundly incredible.

The email went something like this….: my dear and lovely Pamela, there is nothing between you and me. Mark you what we shared is now water under the bridge and our love is now a lifetime away.
Pamela, stood on her balcony after the uninspiring news and looked into the sky. At that very time, there was a heavy cloud hanging over the Nairobi skyline. Pamela wished James was never a chapter in her story book life, but that was just a wishful thinking.

The reveries on the balcony took almost two hours and after that, Pamela decided enough is enough. There is nothing good crying on spilled milk. She has to close that chapter of her life. In life there is time for joy and time for sorrow, but we have to move forward. And that is what she plotted or what she called a cut and dry decision.

WHY ISIOLO COUNTY NEEDS TO IMPROVE TOURISM SECTOR

Tourism is an endowment that is a serious natural gift; an ornament that can raise our county’s profile and make it worthy player in the tourism industry if efficiently and successfully managed. However, it is paramount that we first realize ourselves before we start talking of making any stride and possibly awaken our sleeping gold mine.

The talk of what we can do with the kind of potential we have would be the beginning of our road to becoming a huge player in the industry. Tourism can form a strong pillar for the attainment of vision 2030 and raise our bar higher as we seek to stamp our authority in the region. The potential is there but we need to invest more if we are to reap from the sector.

Our lodges, the wildlife, the rich and diverse culture of our NFD people have by far amazed the tourists that have visited the region. The many other products yet to be developed makes us the envied destination in the world but lack of either understanding or goodwill is denying us the privilege to make something out of nature’s gift.

It’s incumbent on us to develop ways of tapping these monumental resources to benefit our economy. There are brilliant minds out there who can be brought on the table and asked to give suggestions and ideas and the Tourism sector can be able to pick up and make a huge impact to the lives of many. We can create both direct and indirect jobs and improve the economy in ways unimaginable. What do we need to get Right???

Marketing/Research
Outreach is essence because on our own we can realize so little, we first need to get the inventory of our capacity and understand the policy framework on which we can operate to interrogate its level of success and determine how it can be enhanced and enriched with new thinking, approach and model.

Partnership
Kenya Tourism Board is the country’s premier statutory institution mandated to show case Kenya’s tourism resources and seek market for it, it’s imperative we lobby KTB to feature Isiolo in it’s marketing campaign so as to raise awareness about its existence and it’s product line on offer. We could support such initiatives by providing them with videos and documentaries that highlight Isiolo’s area of historical significance which will be the campaign’s strongest show and emphasis, the same could be posted on KTB website so that any visitor could benefit Isiolo as well.

Kenya association of tour operators
Kenya association of tour operators is a significant player in the tourism industry and its importance cannot be overemphasised, Isiolo County needs to engage this outfit so as to benefit from it given million memberships base, KATO is the umbrella body that brings together all tour companies in Kenya and partnering with them will be critical, it serves as a bridge between tourist and the market and since KATO members are responsible for managing their client itinerary it will be prudent if they have all the information about isiolo county’s tourism products so as to correctly advise their client and convince them why this destination is superb in terms of offering.

The county authority should also make every effort to package Isiolo as a tourism destination differently as an alternative to the often overstretched and monopolized Maasai Mara while at the same time highlighting the great developmental stride in logistics that could very easily help in connecting Isiolo to the world and facilitate the travelers to Isiolo take advantage of the recently opened Isiolo international airport.

Building of an Interactive Website
In the technology era Isiolo has no excuse not to market its tourism potential using the internet because information empowers and absence from the cyber sphere is not only undoing but embarrassing as it depicts us as inherently analogue.

We can easily let the world know about us and all that we offer, the rates and every other related information from comfort of their home just by visiting the web portal.

Product diversification
Other than only offering a single line of service this lodges and game reserves could think outside the box by enriching its menu by bringing on board cultural tourism where locals could be allowed to organize cultural activities around the camps so that the travelers could share in the experience, this way a client feels he has been accorded value for their money.

Creation of a flagship project
Isiolo county can think of creating a flagship project like the Maralal camel Derby or even Cultural festivals, this project could be done annually with possibly a week long activities that culminate in a major cultural show case involving all communities in Isiolo. We could of course think of a great trek along Ewaso Nyiro river course to explain our people’s migratory lifestyle informed by their nomadic way of life. This would allow the travelers a peep into this unique cultural phenomena, a trek that would culminate in a well organized cultural festival showcasing every aspects of our life.

THE LESSONS FROM GREECE

There was once this country that harboured great ambitions. It dreamt of growing its economy and also gaining membership into the exclusive club of developed nations. Easy access to cheap loans made the dreamless far-fetched. As you would expect, the nation jumped at this rare opportunity and took off on a borrowing spree. With the money in its account, all ambitious development plans were soon abandoned for personal interests.

Borrowed funds were dished out to state employees in form of huge paychecks, sketchy deals were signed off, theft and bribery reigned, and figures were cooked to cover the country’s financial position. Does this sound like Kenya? No, I’m talking about Greece.

I am currently reading Michael Lewis’s book “Boomerang” on the European fiscal crisis. The resemblance of events in Greece in the early 2000’s to the current drama in Kenya is astonishing. The story on Greece is in the second chapter of the book going by the interesting title “And they Invented Math”.

Michael narrates how anarchy reigned in Greece’s economy at the start of the 21st century. Corruption was the standard way of life in the country. If anyone needed the service of a government officer, he or she had to pay a bribe. The country’s wage bill doubled in just twelve years and its debt rose to 1.2 trillion dollars. The madness was so pervasive he notes that “….the only Greeks who paid taxes were the ones who could not avoid doing so- salaried employees… who had their taxes withheld from their paychecks,” Every other worker in the informal sector evaded taxes.

Every single day Greeks devised new ways to steal from the state. A group of monks traded in a fairly valueless lake for prime government land. The write states that “The Greek state was not just corrupt but also corrupting.”

Ultimately, Greece’s day of reckoning arrived in 2010. The North European state had little choice but to change its ways. Some of the adjustments were; sale of national assets, reduction in government expenditure and tax hikes.

As you would expect, Greeks did not like the decision and quickly took to the streets in protest. The protests lasted a few months during which a lot of damage was done on the already struggling economy. Despite the cuts on expenditure, tax hikes, and several bailouts, Greece’s economy has still not recovered from the setback.

As for Kenya, our day of reckoning has come; the show is about to start. Government expenditure is at unprecedented levels. The debt is at the all-time high of Kenya shillings 5 trillion. Kenyan’s are feeling the pain of reckless spending. Swift action is needed from our leaders. I can only hope that our leaders will act responsibly and provide a permanent solution to the problems we are facing. In the meantime, we brace for tough times ahead.

MOBILE MONEY OVERTAKES CASH IN SOMALIA

The use of mobile money has overtaken use cash in Somalia with over $2.7 Billion being transacted monthly. A report by the World Bank has found that close to 155 million mobile transactions are carried out every month, making the country one of the most active mobile money users in the world.

Lead ICT policy specialist at the World Bank Tim Kelly says private sector actors have given Somalia a unique opportunity to leapfrog towards widespread financial inclusion saying that the World Bank will continue to support the partnership between the Central Bank of Somalia, the National Communications Authority and the key private sector actors as they deliberate on an appropriate regulatory framework for the sector.

“Reducing costs and promoting greater stability is a top priority for the overall development agenda for the financial sector, ensuring that regulation does not stifle innovation by levelling the playing field is a very close second,” said Thilasoni Musuku, Senior Financial Sector Specialist at the World Bank Finance,

Media reports by Capital news also indicate that Somalia has overtaken most African countries in mobile money use despite lack of infrastructures that other countries enjoy such as, robust consumer protection and know-your-customer requirements as well as key policies and regulation. Early 2017 reports by Quantum Global Research Lab had put Somalia at 34 per cent only 3 per cent behind Congo in mobile money usage.

THINGS THAT MAKE CO-WORKING GREAT

Affordability and convenience
This is one of the main reasons why co-working has grown in popularity. Most professionals especially the young, do not have the capital to rent and furnish a full stack office. Co-working gives them just what they want, the ability to walk in and out at their pleasure while having the ability to access the same privileges known to regular office holders at a small fee and then something more. This type of convenience is quite attractive to most people and even established professionals are beginning to take notice

Flexibility and job control
When you are a freelancer, an independent consultant, or another professional flexibility and job control may be a preference. Circumstances may require you to relocate to another city or you may travel to work with a client in another town for some time. Co-working arrangements give you the ability to tap in such flexible options without worrying about the consequences. Being able to control what, when and where you can work is a massive dose of freedom and control.

A sense of community
One of the key elements that make co-working what they are is the sense of community that grows out of the peer to peer interactions under such circumstances. There is a culture knit behind these divergent communities that creates a sense of synergy. Having a software developer, a lawyer, and engineer, and a marketer under the same roof and within arm’s reach is different from working at a traditional office staffed with only lawyers for example. The sense of belonging to a wider network of professionals offers no mean incentive.

Your network is your net worth
It’s all about people. That’s why the importance of networking ever more relevant with the ever increasing flow of information and connectivity between people, devices and things. Success in the modern working environment requires networks that spurn any one given profession and there is no better place to create networks than at the place where there are other people who also want to expand and share their networks.

Access to divergent talent pool
What you work on is important but more important is who you work with. Finding the right talent can be tasking and expensive, that is why most corporates actually outsource talent acquisition. For small businesses and start-ups for instance, a co-working environment gives access to a wide range of talent to choose from. Furthermore, you have the option to build relationships before hiring or just partnering on one off projects.

Convenience for meetings and events
As an independent consultant or a small business, getting space for meetings and conferences while operating from home can be an inconvenience on time and costs. The interesting thing about co-working is that it is accompanied by ample meeting and conference rooms so you can easily schedule meet ups, conferences and events. In addition, it gives you a flexible address for references. While co-working continues to grow, some savvy older professionals and businesses have begun taking notice and offer their team members opportunities for co-working to avoid being left out.

A REVIEWAL OF DATA TARIFF

The cut-throat competition in Kenya’s Mobile data space is forcing mobile service providers to reconsider their data offers in the market to remain competitive. Mobile service provider Safaricom is the latest to review its data tariff in an effort to fend off competition and remain dominant in the data space, only days after Telkom Kenya established 200 4G sites within the capital.

According to Safaricom’s Acting Consumer Director Mr Charles Wanjohi, ’’competition is real and competition brings the best out of us, also for our customers they have been saying when we look at what other are offering, we think there is better value there, but we know their network is not up to par. We don’t want to leave you but adjust the value proposition, which is what we have done.’’ Adding that they have to remain market competitive and assuring customers to expect average speeds of about 5MBS.

However, the state of the country could have also played a role in the decision. ‘’This decision has mainly been driven by listening to our consumer, at the end of the day what’s happening in the country now it comes in handy…things are not easy financially.’’ Said Carolyne Kendi, Safaricoms Head of Brand Marketing and communication.

The new tariffs will allow mobile users to continue using mobile WhatsApp even after their data runs out until the expiry of the data duration. For SH20 Safaricom customers will get 50 MBs and 50 SMS, while for Sh50 they will receive 150 MBS and 150 SMS daily. Weekly and Monthly charges have also been adjust to 350MB for Ksh99, 1GB for Ksh250 and 3GB for Ksh500 and 2GB for Ksh500, 5GB for Ksh1000 and 15GB for Ksh2000 respectively.

FIVE BANKS FINED FOR HANDLING NYS FRAUD MONEY

The Central Bank of Kenya (CBK) has penalized five banks in relation to the recent National Youth Service scandal. The five banks, Standard Chartered Bank Kenya Limited, Equity Bank of Kenya, Kenya Commercial Bank, Co-operative Bank of Kenya Limited and Diamond trust Bank are said to have transacted the largest flows.

The CBK says the banks are being penalized for failure to report large cash transactions, failure to undertake adequate customer due diligence, lack of supporting documents and lack of reporting Suspicious Transaction Report (STR) as required.

Kenya Commercial Bank (KCB) which transacted Sh639 Million will pay the heftiest fine of Sh149 Million, followed by Equity Bank which will pay Sh89 Million. Standard Chartered Bank, Diamond Trust Bank and Co-operative will pay Sh77 Million, Sh56 Million and Sh20 Million respectively.


‘’The main objective of the investigations was to examine the operations of the NYS-related bank accounts and transactions, and in each instance asses the bank’s compliance in the with the requirements of Kenya Anti-Money Laundering /Combating Financing of terrorism (AML/CFT) laws and regulations.’’ Said the CBK.

The second phase of the investigations into the NYS scandal is expected to involve findings by other investigators as well as the DCI and ODPP.

The CBK says the each bank is expected to provide an action plan to that seeks to address the loopholes and commitment to compliance to all aspects of the law. ‘’These action plans will be submitted within fourteen days (14) days and CBK will closely monitor their implementation.’’ CBK said.

Adding that they will continue to enforce strict adherence to the application of the laws and regulation to safeguard stakeholder interest and maintain a healthy financial sector. The CBK actions comes amid a heightened fight against corruption by the government.

THE PUBLIC DEBT PROBLEMS IN KENYA

Lately there has been a lot of talk about our public debt. It is therefore necessary for all to understand what the issues are with our public debt. This will help in informing public debate on the issue. Besides it is easier to develop solid solutions when you are clear on the issues.

Our current debt problems can be summarised as follows;
Collapsing of the budget making process – Since 2013 our budget making process has become chaotic and incoherent. It can be described as a calamitous circus. The budget is nowadays a moving target where changes are introduced throughout the year. This has caused a lot of confusion. For instance people talk of a KShs 3 Trillion budget for the current year yet the actual printed figure is KShs 2.6 Trillion.

The assumptions on which the budget is based such as revenue targets are usually not backed by any evidence. The current revenue targets are KShs 1.9 Trillion up from KShs 1.5 Trillion last financial year. That is a 31% jump in one year. This is an absurdity and fiscal impossibility. Last year revenues rose by 6% what would be the basis for projecting a 31% rise this year especially in a struggling economy.

The budget process begins with a long spending wish list which is followed by a panicked search for revenues. The actual expenditure last year was KShs 2.1 Trillion. The actual expenditure on 2016/2017 financial year was also KShs 2.1 Trillion. What is the point of raising the expenditure to KShs 2.6 Trillion in the current financial year? This has resulted in extracting up to the last drop of blood in terms of taxes to fund the bloated spending plan. Why can’t we begin with the revenues we have and then come up with spending plans on that basis instead of budgeting for expenses then look for funds to finance them. That is what we do with our household and business budgets.

Despite numerous tax rate rises the revenues have flattened with little hope for growth. There is a limit to which you can tax people. Also in the process of raising revenues we have turned the business environment toxic through a chaotic policy environment. An exaggerated spending plan creates room for and encourages looting of public funds.

We have borrowed too much, too fast to the extent that we have all but exhausted our borrowing capacity. Over the last five years annual average growth in revenues was 13% while annual average growth in debt was 22%. This has robbed us the opportunity to continue leveraging on debt to manage our fiscal deficits. We have to look for debt alternatives in financing future budgets. This means either we sell some of our national assets or drastically reduce our spending. Reducing spending will slow down the economy. We are in a situation where you can’t tax people more and can’t borrow more.

Our debt is largely unproductive. We have spent most of our debt on politically driven projects which do not make economic sense. Furthermore, we have spent borrowed money on recurrent expenditure which is an unforgivable economic sin. Our spending has also become sinfully tenderpreneur driven.

Poor parliamentary oversight. Parliament has failed in ensuring our borrowing is sustainable. MPs are only keen about their salaries and CDF allocations as far as budget making is concerned. This has left Treasury with a freehand in recklessly piling up debt. It is a shame we have left the issue of debt sustainability to IMF yet this should be the business of our parliament and indeed a domestic affair.

Lack of transparency in borrowing. The government has failed in keeping an up to date and accurate debt register. As of today nobody in this country actually knows what our total debt exposure is. Take for example the recently released Quarterly Economic and Budgetary Review Fourth Quarter, Financial Year 2017/2018 Period ending 30th June, 2018. On page Vi the document says our total debt is KShs 5.174 Trillion and on page 26 the same document says our total debt is KShs 5.039 Trillion. Which is which? To make things worse significant part of our borrowing has been hidden in books of parastatals such as Kenya Railways, Kengen, Kenya Power etc.

The Central Bank of Kenya has consistently failed to update its website on the public debt in a timely manner. For instance, we are now in September 2018 and the last time CBK updated the debt figures as per its website is March 2018. What is the explanation for such a delay if not mischief?

We have borrowed very expensive money. Before 2013, our external debt was largely cheap bilateral and multilateral loans. As of April 2013, our external debt was KShs 817 Billion and by June 2018 we were at KShs 2.56 Trillion a 213% growth. In April 2013, our expensive foreign commercial debt was KShs 57 Billion and as of June 2017 was at KShs 906 Billion a growth of 1,477%. This is neither acceptable nor sustainable. The risk of debt default are rising by the day.

Our debt servicing costs are no longer sustainable. Last year we spent KShs 324 Billion on interest payment while in the current fiscal year ending June 2019 we are to spend KShs 399 Billion on interest payment. The interest paid last year represents 22% of total revenues. The total spending on public debt in the current financial year is estimated at KShs 871 Billion (principal + interest) against targeted revenues of KShs 1.8 Trillion. The public debt spending is thus 49% of target revenues. These are shocking ratios.

Structural and constitutional issues. The 2010 Constitution came with a new government structure which is quite expensive to maintain. For instance, the hardcoding of County Governments’ issues at 15% of revenues does not make sense inasmuch as it may seem necessary to guarantee funds to county governments. What would happen if this is fiscally impossible? The government structure is just too wasteful. This will make it hard to cut spending. We need to ask questions as to whether the current 47 county governments are sustainable. Do we need two houses of parliament with a combined 416 MPs? Do we need all these constitutional commissions? Do we need Constitution Development Fund (CDF) in this era of County governments?

Bloated and expensive civil service. The current civil service needs to cut fat. A lot of rationalisation is necessary. We have a lot of duplication which should be done away with. Furthermore the government does not even seem to know how much it spends on salaries and wages. For instance it says it spent KShs 384 Billion on salaries and wages for the national government in the 2017/2018 financial year.

The recurrent spending of the Teachers Service Commission was KShs 218 Billion. Can the bill for teachers alone be 57% of the national government wage bill or 23% of its recurrent spending? Even assuming these figures are correct, how can it be that the salaries and wages of national government never reduced even after some functions were taken over by county governments? In the 2012/2013 financial year, the wage bill of national government was KShs 274 Billion. In the 2017/2018 financial years it was at the erroneous KShs 384 Billion a 40% rise.

Political interference with government finances. We have developed this culture of politicians such as the President and his Deputy making unjustifiable political declarations with serious economic implications. The politicians have been making promises on projects without any reference to the budget. This has resulted in fiscal indiscipline and chaos. These politics have exacerbated pressure on borrowing. It has also contributed to the earlier discussed issue of unproductive borrowing.

Notice there is nowhere I have talked about the much debated debt to GDP issues. I have argued so many times that you cannot use GDP to pay debts. You use cash represented by government revenues. As such, it is naïve and irresponsible to use GDP as an excuse or basis for borrowing. This will become clear in the near future.

KENYA RANKED TOP TARGET FOR SA INSURERS

Kenya has been ranked as the number one target market for South African insurers beating their home market which comes in second place. According to a report by audit firm PricewaterhouseCoopers (PWC), Kenya is among the first five African markets being targeted while other markets in the top five include Botswana , Mozambique and Nigeria respectively.

According to the report, Kenya’s high GDP growth rate and its population size are some of the main factors that the southern investors now want a piece of the Kenyan cake.
‘’Given that insurance markets in Africa are largely un(der)insured, for various historical and access reasons, it’s important for us to develop a more detailed understanding of the “new” customers that could be targeted for growth and the kind of changes required to get more people to buy insurance.’’ Reads the report in part.

However the report also sites Regulatory burden, access to distribution, availability of talent and Political (in) stability as some the main barriers to the Kenya Market.

KENYA SIGNS SILK BELT AND ROAD AGREEMENT WITH CHINA

During his visit to Beijing, President Uhuru and the Chinese President Xi Jinping “signed a cooperation agreement within the Framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road Initiative.” The initiative aims to promote economic prosperity, development, and regional economic cooperation. The Silk Belt and Road initiative will connect Asian, European, and African countries more closely.
The agreement, among others, was signed at the Great hall of the People where the two leaders discussed ways to strengthen the comprehensive and strategic partnership between the two nations.

President Kenyatta appreciated China’s commitment to support Kenya’s development goals while noting that the next Forum on China-Africa Cooperation (FOCAC) is in line with the country’s Big Four agenda. “It is my ambition that we shall continue to strengthen our strategic and comprehensive partnership,” he stated.
China and Kenya have been cooperating in various sectors such as infrastructure, industrialisation, energy, technology transfer, agriculture, peace and security, capacity building, environmental protection, and people-to-people exchanges. “Kenya is satisfied with the tremendous progress achieved in our bilateral cooperation, and continues to open up new areas of cooperation,” the President added.

The SGR Project
President Uhuru observed that the first phase of the SGR project, which was completed before schedule, is already reaping benefits for the country. He also highlighted the significant by-product of building human capacity in railway engineering that is emanating from the project.

To this end, the University of Nairobi, the Beijing Jiaotong University, and the Kenya Railways Corporation signed a MoU which will facilitate the training of railway engineers and managers for the SGR operations and management. “My government appreciates your government’s commitment to developing jointly with our Railway Training Institute, the appropriate vocational and technical skills to ensure optimal management of the rail network on a sustainable basis,” President Kenyatta said.

With regards to the SGR project, skill transfer to the Kenyan workers has been slow due to language barriers and cultural differences. “It will take time for them to socialise and fully engage with one another,” the Chinese ambassador to Kenya Sun Baohong said. Still, the alleged abuse of Kenyan workers by the Chinese workers could create a greater divide between the two parties.

Despite the success of the SGR project, Kenyans have a major debt burden which has surpassed the Sh5 trillion mark . This debt could potentially derail Kenya’s economic prospects while increasing the pressure of the already overburdened Kenyans. That said, the completion of the China-Africa Summit could see President Kenyatta sign the postponement of the implementation of the fuel levy thereby alleviating the pressure on Kenyans the tax has already caused since Sunday.

THE WORLD REMIT LAUNCHES DIGITAL MONEY TRANSFERS WITHIN EAST AFRICA

Online money transfer service World Remit says it has launched a new digital money transfer service to be rolled out in Kenya, Rwanda, Tanzania and Uganda. The new service is expected to reduce the cost of sending money across borders which has been a major hurdle to regional integration.   

"Just as WorldRemit has revolutionized the way people send money from developed countries, our vision is to do the same within Africa. From the frequent traveler, who works in different countries, to the small business owner buying goods abroad, our new fast service will offer the benefits of lower cost and greater convenience.” Ismail Ahmed, CEO and Co-founder of WorldRemit. 

The company was founded by Ismail Ahmed and is backed by venture capital companies; Accel Partners and Technology Crossover ventures while recording transfers of more than $1.6 billion at an annualized rate to the region. With customers sending transfers from over 50 countries to over 145 destinations globally, the firm prides itself to having quick, secure and low cost transfers providing SME’s an alternative to costly traditional money transfer systems.

ONLINE TRADING UNIT FOR GOVERNMENT BONDS LAUNCHED BY JSE

Africa’s largest bourse Johannesburg Stock Exchange (JSE) has officially launched an electronic trading platform (ETP) for government bonds, in partnership with the country’s ministry of Treasury and a multi-stakeholder group consisting of Strate, the Financial Sector Conduct Authority (FSCA) and banking institution.

The electronic trading platform for bonds which is meant to allow transparency, price discovery and settlement assurance to allow issuers to transact anonymously both pre-trade and post- trade.
 “The Bond ETP was also an important element of South Africa’s commitment to Capital Markets reform at the G-20 group of nations. The culmination of the intensive efforts of a multitude of stakeholders including our technology provider MTS; our nine Primary Dealers, the World Bank as project consultant; the South African Reserve Bank; and Central Securities Depository Participants (CSDPs) has really paid off and this is a proud moment for our country.” Donna Neer Director of Capital Markets JSE

Currently more than $137 million in government bonds is listed on the JSE debt board accounting for over 90% of all debt market liquidity reported to the JSE. Government entities issue bonds and list them on the JSE to raise funds for large infrastructure projects such as roads, power stations and hospitals.

In February JSE had announced listing of ‘project bonds’ allowing institutional investors a chance to invest in infrastructure and energy projects. The treasury had at the time said that Government and banks alone cannot fund South Africa’s infrastructure programme.
 “The use of electronic trading platforms has shown notable positive effects in the secondary markets including: improved liquidity through price discovery; reduced transaction costs and greater competition; increased transparency, and lower trading costs.” says Mondli Gungubele Deputy Minister of Finance.

CHALLENGES FACED BY INSURANCE BROKERS IN KENYA

The insurance brokers have warned of a looming extinction of their business as underwriters increasingly opt for direct contact with policy buyers. The Association of Insurance Brokers of Kenya said direct procurement, especially by public entities, has emerged as one of the trends that threaten their survival. Mr Omolo talks to Financial Standard about the challenges facing the sector and how they overcame them.

What is the current insurance uptake in Kenya compared to her peers?
It’s not good and not bad. The current average insurance penetration level in Kenya is at three per cent of the GDP compared to South Africa at 12 per cent. In the East Africa region, we are followed by Tanzania and Uganda at less than one per cent. 
There is a drive to sell insurance to millennial from this year, why now?

Research carried out both by Insurance Regulatory Authority (IRA) and other global bodies has proved that the millennials will be the greatest consumers and that’s why we are targeting them. Historically, many of the insurance products sold then targeted the old. Millennials are also able to spend without a blink and are able to appreciate the products much more. The micro- insurance is some of our target areas, where we use mobile phones to reach them.

What has caused low uptake of insurance services in Kenya?

If you look at the traditional products we have been selling in the past, they have been targeting the rich but now you find that their focus is now shifting because they are not many and it’s now better to focus to the middle class who are increasing day by day and the reach will be wider.

A BRIEF BUDGET ANALYSIS OF ISIOLO COUNTY

The 2010 Constitutional dispensation brought forth devolution creating the County Governments as a way of decentralizing services and resources to improve the lives of the common man. Devolution has been cited as a system that will ensure regions that have for a long period been marginalized get a chance to catch up with the other parts of the Country. The critics of devolution have cited misuse of funds as the major reason for the dismal performance of a number of Counties. The statistics given by the Ethics and Anti-Corruption Commission have proved that we have quite a long way to go for a number of Counties. In the advent of devolution, Counties in the NFD had a golden chance to redeem themselves from the shackles of marginalization and pick up to catch up with other regions. There was hope amongst the people as money started trickling down to the grassroots and there were signs that the taps of development will at last drop some water. Hopes were soon dashed as most of the funds went into the pockets of a few. The anticipated development for the many not the few fizzled away. We would like to study the budgetary allocation of NFD counties and how they have been spent by those mandated to plan for their expenditure.

The latest report from the Auditor General for Isiolo County brought to light a lot of anomalies when it comes to the County Government’s spending which is a clear reflection of mismanagement that has denied delivery of services to the common Mwananchi. The report which was recently made public raises red flags that demands prompt and immediate answers as to how exactly the County spends the money received from the National Government.

According to the reports the Supplementary Budget approved for Isiolo County for the FY 2017/2018 was Ksh. 4.37 billion and of that Ksh. 2.77 billion was marked for recurrent expenditure and Ksh. 1.57 billion was meant for development. From the total budget the County was expected to receive Ksh. 3.78 billion as its constitutional equitable share of national revenue and another Ksh. 382.42 million in conditional grants. In the first half of the FY 2017/2018 the County received Ksh. 1.02 billion and out of this the County spent 95.2% which is equivalent to Ksh. 943.64 million for recurrent expenditure and only 4.8% was spent for development.
Out of the Ksh. 943.2 million that was spent on recurrent expenditure a staggering Ksh. 768.2 million (81.4%) was spent on personnel emoluments and Ksh. 175.44 (18.5%) on operational maintenance. Only 76.77 million(8.05%) was spent on development projects. It is not clear which development programs this was used for as the county administration has not made clear. Specific projects that the 77 million shillings was used for is not mentioned anywhere by the administration. One year in office, Isiolo County Government does not have an Internal Audit Committee and did not constitute the County Budget and Economic Forum.

Briefly, Isiolo County Government is showing little effort in spearheading development in the region going by the negligible budgetary allocation for development programs. To spend a paltry 8% of budgetary allocations on development programs is not only unconstitutional but an open disregard of the importance of prioritizing broader development delivered to the grassroots. The County Government needs to cut down on the recurrent expenditure if it is to deliver on the promises it made to the people of Isiolo County.

The County is also doing poorly when it comes to revenue collection which has potential of raising a considerable amount of money that can do a lot to supplement the budget. In the last financial year the County Government raised only Ksh. 53.73 million in revenue which was way short of its target of Ksh. 182.86 million. The County needs to invest more in ways of increasing revenue collection which is completely untapped. It seems like there exists incapacity in the County administration to streamline revenue collections and explore new strategies to improve on collection to spur economic activity.

A large percentage of the County fund is being spent on salaries and allowances for County staff. The County needs to relook its strategy and spending if Isiolo is to benefit from the second phase of devolution. There is no tangible development to show for this first year of the second phase and the people of Isiolo are worse. The main reason why County Governments exist is to prioritize on development and focus solely on efforts that will improve people’s lives. The people of Isiolo must stand up and speak against extravagant waste of the public resources and assist the government of the day to suitably strategise and efficiently prioritize so that the county can benefit from the devolved system.