Kenya’s weather outlook ‘dire’ as Cyclone Hidaya nears, President Ruto says

By REUTERS

Torrential rains that caused widespread flooding and landslides across Kenya in recent weeks, killing at least 210 people, are forecast to worsen over the rest of this month, President William Ruto said on Friday.

The floods have wreaked havoc, destroying homes, roads, bridges and other infrastructure across Kenya, East Africa’s largest economy. The death toll exceeds that from floods triggered by the El Nino weather phenomenon late last year.

“Sadly, we have not seen the last of this perilous period, as the situation is expected to escalate. Meteorological reports paint a dire picture,” Ruto said on Kenyan television. “Kenya may face its first-ever cyclone.”

Cyclone Hidaya is expected to make landfall in Tanzania, Kenya’s southern neighbour, on Saturday, bringing with it waves almost eight metres (26 feet) high and 165 kph (100 mph) winds, the Igad Climate Prediction and Applications Centre said.

Read: Tanzania calls for precaution over Cyclone Hidaya

“This cyclone, named Hidaya, that could hit anytime now, is predicted to cause torrential rain, strong winds and powerful and dangerous waves,” Ruto said.

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Earlier this week, Ruto ordered those living in landslide-prone areas to leave for safer ground.

The government has asked people living near 178 dams and water reservoirs, now close to overflowing, as well as those in informal settlements close to rivers and streams, to evacuate.

Ruto said the reopening of all schools for the upcoming term, which was meant to start this week, would be postponed until further notice.

Nairobi County government has set up 115 camps to host people displaced by the flooding and is working closely with donors and humanitarian organisations to provide food and non-food supplies to those affected, he said.

Opposition leaders and rights groups have criticised Ruto’s administration for its response to the disaster.

On Thursday, Human Rights Watch accused authorities of failing to put in place a timely national response plan, despite warnings from the Kenya Meteorological Department a year ago about the likely impact of flooding caused by El Nino.

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Airtel set for Sh22bn IFC cash for Kenya, Rwanda, DRC units

The International Finance Corporation (IFC) is set to invest $165 million (Sh26.99 billion) in Airtel Africa to fund its operations and refinance existing loans across three subsidiaries in Kenya, Rwanda, and the Democratic Republic of the Congo (DRC).

The IFC revealed that it plans to give Sh22.27 billion debt from its own account and mobilise another $35 million (Sh4.72 billion) from its Managed Co-Lending Portfolio Programme (MCPP)—the lender’s syndications platform for institutional investors.

The MCPP creates opportunities for institutional investors and credit insurance companies to invest alongside the IFC on commercial terms in globally diversified loan portfolios.

“The proposed funding will support Airtel Africa operations in the Democratic Republic of Congo, Rwanda, and Kenya to cover capital expenditure (CAPEX) needs and refinance USD-denominated debt,” the IFC said in a disclosure.

“The CAPEX component will be directed towards modernising the telecom network by purchasing active equipment on sites for 4G, such as antennas, software updates, packet cores, base transceiver stations, and the acquisition and/or buildup of fibre capacity,” the World Bank private sector lending arm added.

The funding is subject to approval by the IFC board.

This would be IFC’s second investment in Airtel Africa after a previous disclosure in 2022. The planned $150 million (Sh20.24 billion) IFC investment in Airtel Africa was targeted at supporting the telco’s capital expenditure requirements for two years in seven of its 14 operating companies, namely Chad, DRC, Kenya, Madagascar, Niger, Congo, and Zambia.

The capital expenditure included rolling out new telecom sites, including towers and base stations, upgrading existing sites to support 3G/4G or potentially 5G services, and adding carrier bands and sectors for capacity and network upgrades.

The 2022 planned IFC funding to Airtel Africa also aimed at investment in fibre transmission infrastructure through microwave or fibre connection of sites of the network and investment in IT systems and sales networks.

Airtel Africa has integrated mobile network operations in 14 countries in sub-Saharan Africa, including mobile voice and data services as well as mobile money services. Airtel is a public company limited by shares incorporated in the UK and is listed on the London Stock Exchange and the Nigerian Stock Exchange.

Bharti Airtel Limited, an Indian telco with operations in 17 countries, is a majority shareholder with a 56 percent shareholding in Airtel Africa.

Airtel Africa revealed in February plans to build a data centre in Nairobi, which will become its second such facility on the continent after Nigeria as it moves to diversify its revenue streams. The telco said the Nairobi data centre, which will be usable in telecoms and other sectors, will have a capacity of seven megawatts, much smaller than a 36-megawatt facility it plans to build in Lagos, Nigeria.

Airtel Africa chief executive officer Segun Ogunsanya said in February that beyond the two data centres in Lagos and Nairobi, the telco is also going to have smaller data centres in its mobile cable landing stations including Tanzania, DRC, and Gabon.

In the Kenyan market, Airtel Kenya has stepped up investments in voice and mobile money business. The telco reveals that most of the 5G sites it has deployed are in Nigeria, Kenya, Zambia, and Tanzania.

Editor’s note: The story has been revised to indicate that IFC plans to invest in Airtel Africa as the funding is subject to approval by its board.

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East Africa: Kenya, Tanzania Resolve Poultry Trade Concerns in EAC Meeting

East Africa: Kenya, Tanzania Resolve Poultry Trade Concerns in EAC Meeting

Kenya and the United Republic of Tanzania have successfully addressed longstanding concerns regarding the export of poultry and poultry products between them following a two-day meeting at the East African Community headquarters in Arusha, Tanzania.

Rabson Wanjala, Co-Chair of the meeting from Kenya, underscored the importance of trade between the two countries, highlighting the necessity for ongoing consultations to streamline and facilitate trade processes.

“Both countries have committed to fostering trade relations,” Mr Wanjala stated, stating the importance of collaborative efforts to ensure increased trade in the region.

Benezeth Lutege Malinda, the co-chair of the meeting from Tanzania, echoed Wanjala’s sentiments, emphasising Tanzania’s commitment to resolving issues hindering trade, particularly Non-Tariff Barriers (NTBs) to trade.

Kenya, historically a significant exporter of poultry and poultry-related products to Tanzania, faced challenges after Tanzania imposed a ban on poultry imports from Kenya in 2021 due to the global outbreak of Highly Pathogenic Avian Influenza (HPAI).

The meeting, convened between 29-30 April, 2024, brought together veterinary authorities from both countries to address the ban on the export of poultry and poultry products from Kenya to Tanzania.

The parties clarified that Tanzania had not imposed a ban on Kenyan poultry and poultry products but had implemented sanitary and phytosanitary (SPS) measures in response to global Avian Influenza outbreaks, aiming to safeguard animal and public health.

Both parties affirmed the ongoing trade in day-old-chicks and hatching eggs between the two countries, with facilities demonstrating high biosecurity standards permitted to operate.

Further agreements included conducting risk assessments for facilities intending to export poultry products between the two countries, enhancing surveillance efforts, and capacity-building initiatives to ensure timely disease detection and reporting.

Additionally, small-scale poultry producers in both countries will receive support to improve biosecurity measures, enhancing their export opportunities.

Efficient communication channels will be strengthened between veterinary competent authorities in both Partner States for swift issue resolution regarding SPS measures.

Source: allafrica.com

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Tanzania, Kenya resolve poultry export dispute, EAC statement says

By XINHUA

Tanzania and Kenya have successfully resolved a longstanding dispute over the export of poultry and poultry products between the two countries, the East African Community (EAC) said in a statement on Tuesday.

The statement said the dispute was resolved during a two-day consultative meeting held at the EAC headquarters in Tanzania’s northern city of Arusha that ended on Tuesday.

Rabson Wanjala, the co-chair of the meeting from Kenya who represented the Kenyan High Commissioner to Tanzania, said both countries are committed to fostering trade relations, adding that their commitments underscore the importance of collaborative efforts to ensure increased trade in the region.

Read: Kenya, Tanzania forge deal on trade barriers

Benezeth Lutege Malinda, acting director of veterinary services in Tanzania’s Ministry of Livestock and Fisheries, said Tanzania is actively addressing trade obstacles by ensuring that all trade-facilitating agencies focus on resolving issues, particularly non-tariff barriers, that hinder trade.

“We remain committed to tackling these challenges and fostering an environment conducive to seamless trade between Kenya and Tanzania,” he said.

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The meeting brought together veterinary authorities from both countries to resolve the ban on the export of poultry and poultry products from Kenya to Tanzania.

Kenya has historically been a significant exporter of poultry and poultry-related products to Tanzania, including day-old chicks, hatching eggs, parent stock and processed poultry items, said the statement.

Read: Tanzania bans day-old chicks imports, again

According to the statement, Tanzania imposed a ban on poultry imports from Kenya in 2021 due to the global outbreak of highly pathogenic avian influenza, a ban that severely impacted Kenya’s poultry industry, hindering access to a vital market.

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Uganda: Business and Management Graduates Can Become Climate Change and Sustainability Champions – Lessons From Uganda and Tanzania On How Universities Can Support This

There is no doubt about it: the world is in the grips of a climate crisis. The headlines are full of reports about extreme weather events and the negative effects of the fossil fuel industry.

This reality means that anyone entering the worlds of business or management today needs to understand climate change. They need the right skills and attitudes to build sustainable enterprises, and to contribute to climate change mitigation and adaptation efforts.

I am a lecturer in management with a particular interest in sustainability and climate change education. Recently I conducted a study at two higher education institutions: Makerere University in Uganda and the University of Dar es Salaam in Tanzania. They are two of the continent’s largest and most respected universities.

I wanted to know how climate change and sustainability education were integrated into their various faculties’ programmes.

The answer? Not very much at all. Students, faculty and administrators all recognised this as a shortcoming. There was a strong sense that sustainability and climate change education should be woven into faculties’ curricula, research and community engagement programmes. But they’ve not yet done so, most often because none of their academic staff are trained in these issues.

Given my research and teaching interests, I was especially interested in how business and management schools were performing in this area. Sadly, they are as behind the curve as other faculties I studied.

I suggest that the continent’s business and management schools are missing a valuable opportunity. Who is better to instil the necessary attitudes, knowledge and skills than business and management schools? They produce many graduates who join various public, private and voluntary organisations and agencies and become influential professionals in these sectors. With the right training, those graduates can become the kind of sustainability champions the world needs today.

The study

My study explored the perspectives and views of lecturers, administrators and students in two academic units, on their institutions’ existing climate change and sustainability education. I asked where they thought they were doing well. I also wanted them to identify the gaps in training, curriculum and research. Participants were encouraged to think about how their institutions could do better.

At both institutions, only academic units within the natural science disciplines had programmes and courses on climate change and sustainability. No such programmes were offered by the arts and social sciences, education, or business and management faculties.

Based on what academics, administrators and students told me, I have devised ideas for what African business and management schools at universities should do, and how, to become champions of sustainability and climate change education.

Getting started

This doesn’t involve reinventing the wheel.

The faculty and students in these schools are already conducting scientific research. More emphasis could be placed on research that relates to climate change and sustainability.

Business and management schools are often already supporting communities based on their research. They are also constantly looking for solutions to community challenges across sectors. They could use their existing community outreach and engagement programmes to support and encourage communities on climate change adaptation options and sustainability-friendly practices.

Working with small artisans, retail shop owners and market vendors to create awareness of climate change and sustainability-friendly business practices can significantly contribute to climate action and sustainability.

However, there will need to be some bigger shifts alongside tweaks to existing outputs and programmes.

Policy recommendations

I have several recommendations for policymakers and decision-makers in business and management training institutions. Here are some of them:

  1. Mainstream and integrate climate change and sustainability education in all the school’s academic programmes.
  2. Integrate sustainability practices in governance and management policies, systems and operations. For example, administrators might consider how to use energy and water sustainably. They could get involved in efforts to green the wider campus. Non-motorised transport systems could be introduced to ensure fewer vehicles are used on campus.
  3. Integrate sustainability indicators within the performance management system for staff and institutional departments. This will encourage staff and units to establish activities that promote climate action and sustainability on campus and in the communities they work with.
  4. Encourage faculty and students to conduct research on climate change and sustainability issues.
  5. Organise events and engage policymakers to disseminate research findings and policy recommendations on climate change and sustainability issues.

There is also a role for national governments and regulators here. In Uganda, for instance, the National Council for Higher Education should integrate sustainability indicators in its assessment of institutions. This is a way to encourage business and management schools to promote sustainability. It’s also a great opportunity for schools and institutions to learn from each other about what works and what doesn’t.

David Ssekamatte, Lecturer in the Department of Management, Uganda Management Institute

Source: allafrica.com

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Tanzania: Zbar Launches Campaign to Promote Domestic Use of Seaweed Products

Zanzibar — ZANZIBAR has launched campaign to promote domestic use of seaweed products as part of efforts to expand the market of the spices in the country.

The Acting Director of the Department of Policy, Planning and Research in the Ministry of Blue Economy and Fisheries, Mr Mohammed Said Khamis, said at the launch of a campaign on Monday that domestic use of the spices was low.

“We want people at home to consume seaweed hence increase the market,” Mr Khamis said.

He said that promoting domestic use of seaweed products was important both in Zanzibar and Tanzania mainland in improving the livelihood of farmers.

The Ministry of Blue Economy and Fisheries was out to encourage the use of seaweed through promotion of its benefits as they are rich in nutrients compared to many sea foods, he said.

“For over three decades, Zanzibar and other coastal areas in the Tanzania mainland have been growing seaweed just for export. Unfortunately not many people use it as food. We want this to change, in addition to economic benefits, it is also good for health,” he said.

The Acting Director said that in order also to boost seaweed production and improve the welfare of farmers, the ministry has been making various efforts including providing them with the farming inputs such as boats, and new farming technology.

He said the government has decided to revitalize seaweed production in response to farmer’s prolonged call for better price and value addition to boost their earnings and revenue to the government.

“The government is currently completing the construction of a seaweed processing factory at Chamanangwe, Pemba. This is a value addition. According to him, the factory will have the capacity of processing 30,000 tonnes per year.

The International Fund for Agricultural Development (IFAD), Coordinator, Ms Amina Ussi Khamis, said that the launch will help raise the value of the farmers’ sea products leading to income increase and value chain addition.

The Wakulima Hai Cooperative Society Secretary, Ms Semeni Mohammed Salum, said seaweed is one of the strategic crops and the government puts its effort into increasing productivity including the use of quality seeds that adapt to climate change. Ms Salum said that the one-year campaign to promote the use of seaweed will be implemented in five regions of Unguja and Pemba Islands, and also in other regions of Tanzania’s mainland.

Source: allafrica.com

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Somalia: Tanzania, Somalia to Heighten Ties On Health

TANZANIA and the Republic of Somalia have agreed to strengthen their partnership on health matters. This was revealed over the weekend by Health Minister Ummy Mwalimu when the President of Somalia visited Tanzania on Saturday.

During the visit, they toured the Medical Stores Department (MSD), Muhimbili Orthopaedic Institute (MOI), and the Jakaya Kikwete Cardiac Institute (JKCI) to witness the capabilities of Tanzania’s healthcare sector.

“There are three areas that we have agreed to work together on. First, we will collaborate in providing specialised medical services. Second, we will work together in healthcare professional training. And third, we will collaborate in procuring and distributing pharmaceuticals through the MSD,” said Ms Mwalimu.

Minister Mwalimu highlighted that Tanzania has excelled in improving specialised and super-specialised services, particularly in institutions like the JKCI, Muhimbili National Hospital (MNH) and MOI.

ALSO READ: Experts to develop new macroeconomic policy framework

She informed the President of Somalia that Tanzania is well-equipped with modern medical facilities and specialist doctors who have been trained and have extensive experience in providing specialised medical care.

She also stated that in building capacity among healthcare professionals, they will provide specialised training through universities, especially Muhimbili University of Health and Allied Sciences (MUHAS).

The minister added that the MSD has extensive experience in purchasing, storing, and supplying drugs to over 8000 facilities across Tanzania.

“Additionally, the health ministers in SADC countries have entrusted the MSD with the duty of procuring drugs on behalf of other SADC member states. With Somalia’s recent membership in the East African Community, we see an opportunity to collaborate in ensuring the joint procurement of quality drugs at affordable prices and delivering them to Somalia,” she emphasised.

Furthermore, JKCI Director Dr Peter Kisenge expressed gratitude for hosting the President of Somalia, who came to witness the significant investment made by the sixth-phase government in the institution.

“As you may know, JKCI is one of the leading institutions in East and Central Africa and one of the best in Africa. He has come to see the progress of cardiac care in Tanzania and to facilitate the referral of patients from Somalia, especially for cardiac diseases and heart surgeries,” said Dr Kisenge.

Dr Kisenge revealed that Somalia has sent patients to various parts of the world, but due to the geographical proximity of Somalia and Tanzania, it will be easier to bring patients for treatment to JKCI.

He thanked President Samia Suluhu Hassan for the substantial investment in the institution and for continuing to strengthen relations with various countries in Africa and around the world. JKCI has been receiving many visitors; recently, they hosted the Prime Minister of China and ambassadors.

MOI Director, Prof Abel Makubi, stated that the visit was part of implementing President Samia’s directives to enhance relations with other international institutions. They discussed several areas of cooperation under the Ministry of Health.

Source: allafrica.com

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Uganda taxation: Is targeting small business the answer?

By THE CONVERSATION

Uganda, with a fiscal deficit of 5.6 percent in 2023, has increasingly turned to local resources to make up for its revenue shortfall since the World Bank suspended its funding on August 8, 2023 over the country’s anti-homosexuality law.

In early April 2024, traders in downtown Kampala protested against what they saw as high taxes and harsh enforcement tactics of the Uganda Revenue Authority.

Maria Jouste, who has researched Uganda’s tax system, including its taxing of small businesses, compliance rate and personal income taxes, answers four questions.

What were the recent protests about?

In early April 2024, traders in Kampala began protesting against high taxes and the enforcement strategies of the Uganda Revenue Authority.

Similar protests were seen in Dar es Salaam, Tanzania in May 2023 over high taxation and heavy-handed enforcement of levies on small businesses.

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Read: EA region traders cry foul over ‘too much taxes’

In Kampala, the protest has centred on the electronic receipting and invoicing solution, a new digital system designed to enhance value-added tax (VAT) collection by tracking and managing the invoices and receipts. Introduced in 2020, it was first enforced on large businesses. Enforcement for small and medium-sized businesses started in April 2024.

The revenue agency has not clearly stated how much it expects to collect from these measures but its actions are born out of high revenue targets which might be too ambitious. Overly ambitious revenue targets can do more harm than good in terms of the social contract and poverty.

The Uganda Revenue Authority (URA) turned its focus on traders and VAT law enforcement after the country faced a decline in development aid. It is not clear how much Uganda has lost as result of the World Bank funding freeze, but the government has recently indicated a plan to borrow $150 million from China’s Exim Bank.

What is Uganda’s tax base?

Compared to many other countries, Uganda has a narrow tax base, with tax collections totalling less than 14 percent of GDP. The average for Sub-Saharan countries is 18 percent. A large share of economic activity is informal and untaxed.

In developed countries, collection rates are much higher. The UK, for example, collects roughly 40 percent of its GDP annually.

According to Afrobarometer, a pan-African independent research network that measures public attitudes on economic, political and social matters in Africa, only 1 million Ugandans pay tax, though 3.5 million were registered as taxpayers at the end of 2022/2023 fiscal year. This is a very low number for a country with Uganda’s population at almost 50 million.

The reasons why most of those registered don’t remit taxes are varied. First, the Uganda Revenue Authority campaigns to register people but does not have the capacity to enforce tax laws. Second, not all registered taxpayers are liable for taxes. Third, there’s a lack of tax education.

Read: Uganda proposes new taxes on key products

The country’s top 1,000 taxpayers contribute more than three-quarters of all tax revenue collections. Most Ugandans are employed in the informal sector and the government has not developed efficient ways of collecting taxes from them.

The informal sector accounts for over half of GDP and over 80 percent of employment. Small and medium-sized businesses only pay the presumptive tax, which contributes less than 0.05 percent of tax revenues.

Hence the tax enforcement project targeting small and medium-sized businesses, employing the electronic system.

How effective is Uganda’s tax regime in raising money?

The Ugandan tax regime is less effective than many of its Sub-Saharan counterparts.

The largest domestic revenue sources are VAT and excise duty (22 percent), pay-as-you-earn income tax (Paye) (18 percent) and corporate income tax (8 percent).

A number of factors are at play:

  • generous tax incentives and tax holidays. Recent estimates show that revenue losses due to several corporate tax incentives reached a peak of $42 million in 2020.

  • difficulty in taxing the rich

  • widespread tax avoidance. For example, multinational companies pay much less corporate income tax than large domestic firms (as a share of profits) due to profit shifting outside Uganda.

  • widespread informality

  • income distribution with a high share of low-income individuals (based on current tax law, most ordinary citizens are not liable for income taxes)

  • inefficiencies and corruption in tax collection services.

How fair or unfair is it?

Ugandans perceive that their tax regime is unfair to ordinary citizens, that the government does not spend tax money fairly, and that tax officials are corrupt. The recent protests by traders illustrate how unfair small business owners believe the tax burden to be.

Read: Uganda traders close businesses in spat with taxman

Fairness in taxation varies widely by perspective. In general, a progressive tax system – where the rate is higher for the rich than for low-income earners – is widely argued to be a fair system. Uganda’s tax laws have elements of being progressive, particularly in personal income taxation.

We recently evaluated Uganda’s personal income tax and found it to be fairly progressive.

The Uganda Revenue Authority has tried to improve tax collection from wealthy individuals, but with uneven success.

A recent study documents many of the challenges in taxing the rich. This relative inability to enforce tax laws on the country’s wealthiest individuals suggests that the tax regime is somewhat unfair.

Generous tax incentives and holidays predominantly benefit large firms. Smaller businesses rarely qualify for these benefits. The corporate statutory tax rate is 30 percent, but the estimated effective tax rate averages 14 percent across all firms and drops for the largest firms.

What needs to be reformed?

Uganda faces serious challenges in raising sufficient funds for public services and economic development. Key tax policies have remained unchanged for a decade. Personal income tax rates have been the same since 2012 and the VAT threshold and presumptive tax thresholds since 2015.

Reforms on these issues should be considered to adjust for high inflation and the economic consequences of the Covid-19 pandemic.

Business taxation also needs to be reformed. Recent studies on Uganda’s presumptive tax and small businesses suggest the taxation should be simplified.

Bigger revenue gains might be accomplished by focusing on large corporate taxpayers. For example, tax incentives should be reconsidered.

And greater transparency in public spending and service delivery can improve taxpayer morale and compliance.

By Maria Jouste – Research Associate, United Nations University

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