Unguja. Zanzibar has been grappling with a petroleum fuel shortage for the past two days, causing inconvenience to residents.
The problem started on April 14 and continues today, April 16. Many fuel stations have been observed with fewer staff and activity than usual.
The situation has led to a sharp rise in bodaboda (motorcycle taxi) fares for intra-city routes. Mwananchi Digital reported a Sh1,000 increase, with a trip from Michenzani to Malindi now costing Sh3,000 instead of the usual Sh2,000.
The Zanzibar Water and Energy Utilities Regulatory Authority (ZURA) acknowledged the challenge, stating that all stations in Zanzibar are affected.
In a media statement, ZURA explained that the delay of a fuel tanker caused the shortage. The tanker, which had gone to load fuel at Tanga Port for delivery to the islands, has arrived.
Ali Ismail, a tourist transport operator, has been unable to work since Monday due to a lack of fuel in his car. He had four bookings to pick up guests and take them to hotels, but the shortage forced him to cancel, leaving his clients stranded.
“These unforeseen issues significantly impact us,” Ismail said. “A fuel shortage in Zanzibar hinders economic activity and reduces government revenue through taxes. The authorities need to find a solution to prevent such occurrences.”
The shortage has also impacted fuel station owners. One owner, who requested anonymity, said service has been slow for the past three days, with petrol availability uncertain. Many customers have left without being served, causing frustration.
He added that the situation is hurting his business financially. Since employees are paid monthly, they still expect their salaries despite not working due to the shortage.
“As you can see, there are only a few workers here. Many are at home with nothing to do. But come month’s end, they all expect their pay. I can’t refuse to pay them simply because there wasn’t fuel,” he explained.
Ali Abdala, another resident, was late for work after his car ran out of fuel on the way. He had planned to refill at the Mtoni station but was caught off guard by the shortage, therefore was forced to leave his car by the roadside.
Abdala emphasised the need for better organization by the authorities to prevent such disruptions. “Many people rely on transportation to get to and from work. These situations can’t be happening,” he said.
Abdala was forced to use bodaboda to get to work on time, fearing repercussions from his employer for being late.
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Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
