By Mercy Nduati
Mining companies and small scale dealers are set to enjoy a dealership permit at Sh 1,000 a year in rates of acquiring exploration and mining licenses.
This deal will target small scale dealers who previously paid Sh 20,000 for dealership licence and reduce illegal trade in minerals.
The objective of the dealership permit is to encourage local people to participate in mineral trade and curb unlawful deals in minerals.
The new rules to be published soon will introduce exploration and mining permits that will be cheaper compared to the existing prospecting and mining licences. The rules will apply only to Kenyan mining firms and will offer permits targeting investors for Sh5,000 a year.
Penalty of Sh10, 000 per square kilometer will be accorded to those who fail to give up part of their exploration acreages after the lapse of the period.
This will make local extraction sector competitive by daunting hoarding of prospecting land by mining companies.
Currently, foreign and local mining companies pay Sh 250 and Sh 600 per square kilometer for prospecting and mining licenses respectively.
In a move to ease transportation of oil between Kisumu and Eldoret, Kenya Pipeline Company (KPC) will be constructing a 112km pipeline. The pipeline will run from Sinendet to Kisumu.
The ten inch multi-product oil pipeline is considered a good riddance to the increased truck traffic on the route which comes with its hurdles following increased demand of petroleum products in the region.
This oil pipeline project is among the major infrastructural projects that KPC has in place as it seeks to overhaul the entire pipeline infrastructure in the country.KPC also seeks to replace the Mombasa-Nairobi line as well as renovate the Nairobi-Eldoret pipeline. An LPG (Liquefied Petroleum Gas) storage and bottling facility along the Nairobi-Mombasa highway is also in plan.
Unlike in other pipelines in the country, a fibre optic cable will also be laid down along the entire pipeline Eldoret-Kisumu line.
Plans are also underway to see Eldoret connected to Kampala via pipeline. This will be undertaken in a joint partnership between the governments of Kenya and Uganda. The governments of Kenya and Uganda together hold a 49% of the pipeline with each having a 24.5% share. The pipeline will be extended from Eldoret in Kenya, through Malaba on the border (110 km), through Jinja (130 km from Malaba) then to Kampala (80 km).
By Mercy Nduati
The Africa Development Bank has approved a five-year Sh 79.2 billion financing deal for Kenya to increase economic empowerment through job creation.
The funding between 2014 and 2018 targets programmes in tertiary education and infrastructure development. The designed Country Strategy Paper (CSP) outlines two main pillars; first to enhance the physical infrastructure like roads and energy to bring out an inclusive growth. Second to develop skills for the emerging labour market for Kenya’s transforming economy.
“Investing in energy, transport and water will enhance access to affordable and reliable electricity; improve transport connectivity, reduce transport cost and time to enhance access to reliable water supply later stimulate structural transformation and generate employment,” said Gabriel Negatu,AFDB Regional Director for Eastern Africa.
The second pillar will offer Technical Vocational Education and Training (TVET) in efforts to develop mid –level skills of technicians and artisans for current and emerging labour market in Kenya and across the region.
Enrollment in TVET targets post primary and secondary school graduates in the age between 15 and 30 years and will offer apprenticeship programmes and training focused on developing skills needed in infrastructure like roads, energy, water and ICT.
The growing need for boda bodas has attracted Asian motorcycle dealers into Western Kenya.
Dealers like Yamaha, Honda, Bajaj, Kingbird, Lifan and TVs brand have set a shop in Kakamega, Busia and Kisumu to increase sales in the towns where residents mainly rely on boda bodas as a means of transport.
Statistics from Kenya National Bureau of Statistics shows that 125,508 motorcycles were not sold last year compared to 93,970 units the previous year as demand rises.
Honda which is the latest entrant in the region opened assembly and service plant in Kisumu last month with plans to stock new motorbikes and spare parts.
Honda representative to Kenya Shansuke Miyazaki said the region is good for investment adding that Kisumu assembly and service plant will also serve as a service station for other brands of motorcycles, saving transporters extra costs of going out of the town for service.
Though the biggest competitor in the region is Yamaha, a franchise of Toyota has unveiled new designs targeting boda boda operators. The company has also introduced the crux 100 cc model motorcycle, targeting 100,000 riders in the region.
It is also set to release a financial plan that eases the burden of having to make one off payments during purchase that will reduce the risk of motorbike riders from losing a job with current employers.
Extract from BD
Fire engines in Garissa were this morning battling a huge fire that broke out at the Kengen's Garissa Power Station. Officials say personnel from Kenya Defence Forces joined the battle of the fire. Preliminary findings show the fire was started by a technical fault at the station. The fire incident caused a major power blackout in the town. No casualties were reported from the incident.
Courtesy of standardmedia
Kenya is expected to become the next producer of nuclear energy in 2025 if it passes a thorough test by the International Atomic Energy Agency.
The government has planned to have a nuclear reactor between 2022 and 2025 to increase the country’s energy needs that are seen growing by more than 10 times than the current installed capacity of 1,700MW.
The plant with a planned capacity of 1,000MW could either be located at the Coastal region or near Lake Victoria due to large volumes of water needed to operate it.
The government estimates the plant to cost about Ksh 301 billion to put up a 1,000MW capacity nuclear power plant.
The plant will see the cost of electricity going down and attracting more investors into the country. This project will also improve the economy by dealing with the issue of unemployment and underemployment as job opportunities will be created.
The government is set to launch Procure to Pay (P2P) system in efforts to reduce corruption arising from tender process application.
This system will be part of the components of the Integrated Financial Management Information System (IFMIS) that had been unveiled earlier by the Treasury to improve efficiency in public finance management.
Procure to Pay system that will go live in July will help one do all the procurement procedures online with ease and will accommodate applications from both national and county levels.
Treasury IFMIS department Director, Jerome Ochieng noted that online submission of tenders and online bidding would improve intrusion in tender processes and documents common in manual and face to face bidding.
The system will help reduce the probability of suppliers interacting with the people buying hence diminish corruption.
Extract from BD
Airtel has introduced a new debit card that will enable its customers to withdraw money from Visa automated teller machines (ATM) across the world.
This service will offer Airtel money subscribers access about 10,000 ATM's in Kenya to heighten telecom agency network which is smaller than Mpesa.
Airtel Money Visa debit card is a partnership between mobile operator, Visa and Chase bank and will assist telecom firm’s subscribers to pay their bills by use of plastic money.
This system will help reduce the issue floats among agents and customers will be able to withdraw large amounts of money with ease.
For an Airtel subscriber to withdraw money from Kenswitch ATM's one will be charged Ksh 50 while Chase bank ATM will go for Ksh 30 and Visa enabled ATM in Kenya will be Ksh 100 and outside Kenya Ksh 250.
This comes after Safaricom rejected the push by Airtel and Yu to use Mpesa agents to offer their mobile phone cash transfer.
Extract from BD
Schneider Electric, a global specialist in energy management, yesterday announced its involvement in the largest ever survey into counterfeit electrical products in Africa.
This unprecedented survey involved 37 interviewers over a two-month period. Over 300 professionals were questioned, including electricians, retailers of electrical goods, installers, officials (customs, police, etc.), firemen and doctors, each of whom responded to 35 questions pertaining to counterfeit electrical products in Africa.
The survey is notably expected to answer questions like; consequences of electrical counterfeiting on health and economy of African countries; where are the counterfeit electrical good coming from? Who are the main customers for these counterfeit electrical products?
Facebook has announced it is buying the fast-growing mobile messaging service WhatsApp in a deal worth an eye-popping $US19 billion, expanding the global footprint of the social-networking giant.
The mega-deal bolsters the world's biggest social network - which has more than 1.2 billion members - with the 450-million strong WhatsApp, which will be operated independently with its own board.
It is Facebook's biggest acquisition and comes less than two years after Mark Zuckerberg's firm raised $16 billion in the record-breaking tech-sector public-stock offering.
The purchase includes $12 billion in Facebook shares and $4 billion cash.
It calls for an additional $3 billion in restricted stock units to be granted to WhatsApp founders and employees that will vest over four years.
"The acquisition supports Facebook and WhatsApp's shared mission to bring more connectivity and utility to the world by delivering core internet services efficiently and affordably," a Facebook statement said.
Facebook reportedly sought to acquire another hot messaging firm, Snapchat, for $3 billion last year.
In 2012 Facebook closed its deal for Instagram, worth some $1 billion at the time based on stock value.
"WhatsApp is on a path to connect one billion people. The services that reach that milestone are all incredibly valuable," Mr. Zuckerberg, Facebook's founder and chief executive, said.
"I've known [WhatsApp founder] Jan [Koum] for a long time, and I'm excited to partner with him and his team to make the world more open and connected."
WhatsApp is a cross-platform mobile app that allows users to exchange messages without having to pay phone charges.
Mr. Koum, who joins Facebook's board under the deal, said: "WhatsApp's extremely high user engagement and rapid growth are driven by the simple, powerful and instantaneous messaging capabilities we provide.
"We're excited and honored to partner with Mark and Facebook as we continue to bring our product to more people around the world."
In a blog post, Mr. Koum said: "Almost five years ago we started WhatsApp with a simple mission: building a cool product used globally by everybody.
"Nothing else mattered to us."
The tie-up gives WhatsApp "the flexibility to grow and expand while giving me, [co-founder] Brian [Acton], and the rest of our team more time to focus on building a communications service that's as fast, affordable and personal as possible."
Acquisition trumps $8.5 billion paid for Skype
The acquisition represented the likely biggest-ever price for a tech start-up, trumping the $8.5 billion paid for Skype - which allows users to make voice and video calls over the internet - by Microsoft in 2011.
"The size of this deal is really massive and it will get people talking about a bubble," Opus Research's Greg Sterling said.
He said the deal is a risk for Facebook because "in social media you have a flavour of the month, and next year we might have another app with extremely rapid growth".
"I think [the high price tag] comes from the frustration of not being able to buy Snapchat," he said.
"Then there is the youth factor.
"Facebook really needs to have vehicles to attract younger users, and Instagram is not going to do that by itself."
The acquisition helps Facebook tap into a teen demographic who eschew mainstream social networks for mobile messaging services.
WhatsApp is adding about a million users per day, Mr. Zuckerberg said on his page.
"WhatsApp will complement our existing chat and messaging services to provide new tools for our community," he said.
"Since WhatsApp and [Facebook] Messenger serve such different and important users, we will continue investing in both."
With this strategy, Mr. Sterling said Facebook "is becoming a kind of holding company for different social-media properties that appeal to different groups".
Mr. Sterling said Facebook may have some ability to "monetise" WhatsApp by delivering ads over the messaging service.
Roger Kay of Endpoint Technologies said WhatsApp has become one of the most popular mobile applications worldwide "because it allows you to message anybody anywhere for free".
Mr. Kay said the deal makes sense on one level because of Facebook's record stock run-up.
"When you have a stock like that which has run up quickly and created a lot of paper value, it's good to trade that for other value," he said.
"It's not obvious how they can get $12 billion out of this, but it's been clear for a while that WhatsApp is very interesting.
"It reminds me a little bit of Skype."
New regulation to benefit local mining dealers
Kenya’s pipeline operator seeks countrywide...
AFDB grants Kenya Sh79billion loan for roads...
Motorcycle dealers open shop in Western Kenya
Kenya defense forces join KENGEN in fighting a...
Kenya’s nuclear energy plant underway in 2025
Procure to Pay system to curb corruption in...
Airtel money subscribers to access services...
Energy specialist launches survey into...
Facebook acquires WhatsApp for $19 billion
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Today In Engineering
East African traders importing goods to Kenya will be exempted from the 1.5 per cent railway development levy. This follows a circular issued by the Kenya Revenue Authority ( KRA) to its Customs Service Department to abide by EAC protocols that exempts them from the levy. The KRA decision follows a petition the EAC Secretariat made by the East African Business Council demanding that the levy be abolished as it breaches terms of the regional treaty.
Diary Log: Events
|Tue Mar 11, 2014 @ 8:00AM - 05:00PM|
Power & Electricity World Africa
|Wed Mar 12, 2014 @ 8:00AM - 05:00PM|
Power & Electricity World Africa
|Thu Mar 27, 2014 @ 8:00AM - 05:00PM|
Women in Engineering Summit 2014
|Fri Mar 28, 2014 @ 8:00AM - 05:00PM|
Women in Engineering Summit 2014
|Sun Apr 27, 2014 @ 8:00AM - 05:00PM|
Power & Energy 2014
|Sun Apr 27, 2014 @ 8:00AM - 05:00PM|
3rd Oil & Gas Africa