Nakuru is slowly regaining its lost glory as an industrial hub, following the commissioning of a Sh1.2 billion animal feeds factory.
The factory, which was opened by Trade, Industry and Cooperatives Cabinet Secretary Peter Munya on Wednesday, had been under construction for a year.
It is owned through a partnership between Bidco Africa and Land O’Lakes, a US farmers’ cooperative and manufacturer of animal nutrition products. Land O’Lakes Executive Vice President Dave Hoogmoed said they picked Kenya because of the growth of its agricultural sector.
“After our research, we found that Kenya is among the leading countries in agriculture through the commercialisation of the sector. Here we have seen great opportunities, especially in the dairy sector whose returns are growing by the day,” said Hoogmoed during the launch.
He said the new entity – Bidco Land O’Lakes – would contribute to the State’s Big Four agenda under the manufacturing pillar.
“In line with the Big Four agenda, this is a boost for the manufacturing pillar of the government that will create thousands of jobs directly and indirectly,” said Hoogmoed.
Bidco Africa Group Chairman Vimal Shah said the factory, which can produce 160,000 tonnes of animal feeds annually, will engage over 60,000 farmers in the next one year.
“We are beginning with between 30,000 farmers and hope to double the number in the next 12 months. Farmers shall be supplying us with raw materials, which include sunflower, maize, soya beans, among others,” Shah said.
“With quality animal feeds, farmers are assured of increased yields. This will make agriculture a more attractive and profitable venture.” He said the opening up of the region offers them a ready market, noting that the quality of products remains a concern.
“We have a ready market in Kenya and beyond. We are committed to ensuring quality is competitive from the farms and throughout the supply chain,” Shah said.
CS Munya urged farmers to invest in value addition, saying it would ensure better pay for their produce.
He said the government would create more trade links with other countries to make it easy for the local producers to exploit external markets.
“This will be a major boost for Nakuru, which will soon be elevated to a city. Jobs have been created and a market for products from this agricultural-rich region is now available. This investment will bring a huge difference in the life of farmers and the workforce,” said Munya. He said the main challenge in the dairy sector remains in the quality of feeds.
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World Bank pushes G-20 to extend debt relief to 2021
World Bank Group President David Malpass has urged the Group of 20 rich countries to extend the time frame of the Debt Service Suspension Initiative(DSSI) through the end of 2021, calling it one of the key factors in strengthening global recovery.
“I urge you to extend the time frame of the DSSI through the end of 2021 and commit to giving the initiative as broad a scope as possible,” said Malpass.
He made these remarks at last week’s virtual G20 Finance Ministers and Central Bank Governors Meeting.
The World Bank Chief said the COVID-19 pandemic has triggered the deepest global recession in decades and what may turn out to be one of the most unequal in terms of impact.
People in developing countries are particularly hard hit by capital outflows, declines in remittances, the collapse of informal labor markets, and social safety nets that are much less robust than in the advanced economies.
For the poorest countries, poverty is rising rapidly, median incomes are falling and growth is deeply negative.
Debt burdens, already unsustainable for many countries, are rising to crisis levels.
“The situation in developing countries is increasingly desperate. Time is short. We need to take action quickly on debt suspension, debt reduction, debt resolution mechanisms and debt transparency,” said Malpass.
Kenya’s Central Bank Drafts New Laws to Regulate Non-Bank Digital Loans
The Central Bank of Kenya (CBK) will regulate interest rates charged on mobile loans by digital lending platforms if amendments on the Central bank of Kenya Act pass to law. The amendments will require digital lenders to seek approval from CBK before launching new products or changing interest rates on loans among other charges, just like commercial banks.
“The principal objective of this bill is to amend the Central bank of Kenya Act to regulate the conduct of providers of digital financial products and services,” reads a notice on the bill. “CBK will have an obligation of ensuring that there is fair and non-discriminatory marketplace access to credit.”
According to Business Daily, the legislation will also enable the Central Bank to monitor non-performing loans, capping the limit at not twice the amount of the defaulted loan while protecting consumers from predatory lending by digital loan platforms.
Tighter Reins on Platforms for Mobile Loans
The legislation will boost efforts to protect customers, building upon a previous gazette notice that blocked lenders from blacklisting non-performing loans below Ksh 1000. The CBK also withdrew submissions of unregulated mobile loan platforms into Credit Reference Bureau. The withdrawal came after complaints of misuse over data in the Credit Information Sharing (CIS) System available for lenders.
Last year, Kenya had over 49 platforms providing mobile loans, taking advantage of regulation gaps to charge obscene rates as high as 150% a year. While most platforms allow borrowers to prepay within a month, creditors still pay the full amount plus interest.
Amendments in the CBK Act will help shield consumers from high-interest rates as well as offer transparency on terms of digital loans.
Scope Markets Kenya customers to have instant access to global financial markets
NAIROBI, Kenya, Jul 20 – Clients trading through the Scope Markets Kenya trading platform will get instant access to global financial markets and wider investment options.
This follows the launch of a new Scope Markets app, available on both the Google PlayStore and IOS Apple Store.
The Scope Markets app offers clients over 500 investment opportunities across global financial markets.
The Scope Markets app has a brand new user interface that is very user friendly, following feedback from customers.
The application offers real-time quotes; newsfeeds; research facilities, and a chat feature which enables a customer to make direct contact with the Customer Service Team during trading days (Monday to Friday).
The platform also offers an enhanced client interface including catering for those who trade at night.
The client will get instant access to several asset classes in the global financial markets including; Single Stocks CFDs (US, UK, EU) such as Facebook, Amazon, Apple, Netflix and Google, BP, Carrefour; Indices (Nasdaq, FTSE UK), Metals (Gold, Silver); Currencies (60+ Pairs), Commodities (Oil, Natural Gas).
The launch is part of Scope Markets Kenya strategy of enriching the customer experience while offering clients access to global trading opportunities.
Scope Markets Kenya CEO, Kevin Ng’ang’a observed, “the Sope Markets app is very easy to use especially when executing trades. Customers are at the heart of everything we do. We designed the Scope Markets app with the customer experience in mind as we seek to respond to feedback from our customers.”
He added that enhancing the client experience builds upon the robust trading platform, Meta Trader 5, unveiled in 2019, enabling Scope Markets Kenya to broaden the asset classes available on the trading platform.