Nexus News

Nexus News

Energy Companies at the Heart of Power Expansion


The Jubilee government’s approach to energy has been ‘Power to all’. Connecting each and every household to electricity by 2020 has been the main agenda.

The Rural Electrification Authority (REA) was created to accelerate the pace of rural electrification in the country.

The government has revamped the rural electrification programme to take electricity to every village.

The government has since 2013, connected 55 per cent of Kenya to power up from 27 per cent. Next year, the ministry aims to raise that number to 70 per cent.

Only 8200 schools had access to electricity by 2013, but now 22,245 schools are connected this has made it easier to connect neighboring villages.

The Energy Regulatory Commission (ERC) is tasked with regulating electricity and petroleum. It also protects the interests of consumers, investors and other interests; maintains a list of accredited energy auditors and monitors to ensure implementation of the principles of fair competition in the energy sector.

The Jubilee government has encouraged an enabling environment for partnership with the private sector in the development of energy.

Kenya Power owns and operates the electricity transmission and distribution system and sells electricity to over five million customers.

The company’s key mandate is sufficient electricity distribution; building and maintaining the power distribution.

Kenya Electricity Transmission Company (KETRACO) was established to develop new high voltage electricity transmission infrastructure that form the backbone of the National Transmission Grid.

Its mandate is to plan, design, build, own, operate and maintain high voltage electricity transmission grid and regional power interconnectors that will form the backbone of the National Transmission Grid.

The company has begun the construction of the 4,000 km high voltage transmission infrastructure comprising lines, switch gears and sub-stations across the country.

This will open up areas which are not in the national grid, enhance capacity for evacuating power from generating plants and build inter-connectors to facilitate power trade with neighboring countries.

Kenya Electricity Generating Company Limited (KenGen) is the leading electric power generation company in Kenya, producing about 80 per cent of electricity used in the country. 

The company taps various sources to generate electricity, ranging from hydro, geothermal, thermal and wind. Hydro is the leading source, with an installed capacity of 819.9MW, which is 51 per cent of the company installed capacity. 

Geothermal comes second with 463.1MW and another 55.6MW from the innovative wellheads technology, raising geothermal capacity to about 32 per cent of the total capacity.

‘Nexus’ is the Government newsroom that communicates transformation.

04 Aug 2016

Jubilee keeps its promise on devolution



The government has handed the youth more opportunities to grow their financial muscle, their skills and knowledge in the financial year 2016/17.

 In June, the Kenyan Cabinet Secretary Henry Rotich said Treasury allocated Kshs 21.1 billion to youth and gender empowerment programs, a vibrant sector of the population that wields a lot of potential to grow the economy.During the reading of the Budget in Parliament, the Cabinet Secretary reminded the nation of a proposal he made last year to introduce tax rebates for employers who employ at least 10 fresh graduates for 6-12 months.

 “I have now developed the regulations for the tax rebate and will be proposing to gazette them under the tax measures to make our graduates employable by preparing them for the job market,” said Rotich.

 The government will also work with the World Bank and implement a youth empowerment program to help increase access to employment programs and improve their employability.

The National Youth Service (NYS) will also receive finances from the government.

“The government shall continue supporting this NYS program for the benefit of the youth who acquire skills, craft and technical training so that they can contribute to national economic development,” he said.

The program was revamped two years ago as a vehicle for recruiting young men and women into national service. It helps inculcate the culture of patriotism, service, voluntarism, civic competence and social cohesion among trainees and other youth in the communities.

The NYS program created a lot of hope for the youth, preparing them for the job market and other income-generating activities and gave them opportunity to serve the country.

 The budget prepared by the treasury for the year 2016/17 amounted to Kshs 2.3 trillion.The National Government has also supported devolution through the allocation of funds for service delivery to the people.

“Over the last three years, since devolution was introduced, the national government has allocated more than Kshs 710 billion to counties with the majority of the allocation Kshs 676 billion is in the form of county equitable share of nationally-raised revenue,” said Rotich.

 In three years of transition, annual aggregate fiscal allocation to counties increased from Kshs 195 billion in 2013/2014 to Kshs 288 billion in 2015/16, more than 42 percent growth.

“Since devolution started in July 2013, we have disbursed every single penny due to counties in every financial year,” he said.

Parliament also approved the disbursement of Kshs 280.3 billion as equitable share to counties for the next financial year. This is a Kshs 20.5 billion increase from last financial year, and more than double the Constitution minimum requirement of 15 percent of the latest audited revenue.

The counties have also been given an additional conditional funds of Kshs 23.9 billion that include grants for Level 5 hospitals of Sh4 billion, a special purpose grant of Kshs 200 million to support emergency medical services for Lamu and Tana River counties that are vulnerable to terrorist attacks, free maternal health got Kshs 4.1 billion, Kshs 900 million to compensate county governments for foregone user fees and Kshs 4.5 billion for financing the leasing of medical equipment.

‘NEXUS’ is the Government Newsroom that communicates transformation

28 Jun 2016

Infrastructure projects in EAC on track, say leaders


Heads of State from East Africa region have welcomed progress in the construction of the Standard Gauge Railway.

The Presidents, who attended the 13th Summit on the Northern Corridor Integration Projects in Kampala last month, noted that 75 per cent of works on the Mombasa-Nairobi section of the railway has been done.

SGR is expected to have reached Nairobi by June next year.

Presidents Yoweri Museveni of Uganda, Paul Kagame of Rwanda, Uhuru Kenyatta of Kenya and Ethiopian Deputy Prime Minister, Debretsion Gebremichael attended the summit.

In addition, representatives from South Sudan, Burundi, Tanzania and the Democratic Republic of Congo (DRC) were also present.

In a communique read at the end of the summit, the leaders pointed out that the integration projects have made significant strides. The Kenya section of the SGR was cited as the best example. The construction of the Malaba-Kampala section is expected to begin in July.

Kenya and China Communications Construction Company (CCCC), the firm building the SGR, has signed an agreement for the construction of the Nairobi-Naivasha section.

The Chinese firm will also build the Naivasha-Kisumu-Malaba, and the Kisumu Port-Inland Container Depot at $5.3 billion (Sh530 billion).

Uganda has already signed contracts for the funding of the link from Malaba to its capital, Kampala.

Feasibility studies for the Rwanda and South Sudan sections should be ready by next month and December respectively.

The Summit renewed the resolve to speed up the Northern Corridor Integration Projects. Dr Gebremichael, the Ethiopian representative, gave the assurance that Ethiopia was committed to the regional projects and ‘’would do everything possible to fulfill whatever necessary to realise the regional development plans’’.

He expressed Ethiopia’s commitment to participate in the implementation of the SGR and Power Generation, Transmission and Interconnectivity projects.

He also explained that Ethiopia was ready to be involved in as many other projects as possible, depending on the relevance to Ethiopia and the sub-region.

Ethiopia has set up a national committee to vet experts for the joint technical committee and a national coordinator to follow up the projects.

In the 15-point communiqué, the summit covered ICT infrastructure, crude oil and refineries. Other issues were political federation, project financing, power generation, air space management, human resource capacity building, commodities exchange, land for the Infrastructure Corridor, immigration, tourism, trade, labour and services.

Single Customs Territory, private sector, defence, and peace and security cooperation were the other matters discussed.

Uganda and Tanzania agreed that the proposed 1,410km pipeline would be built from Hoima in western Uganda to the Tanzanian port of Tanga.

On its part, Kenya will build its pipeline Lokichar in Turkana County to Lamu. But Uganda and Kenya agreed to continue cooperating on petroleum issues.

The EAC has already implemented the single visa for tourists to the East African region covering Kenya, Rwanda and Uganda, and use of national IDs to ease travel within the region.

Another achievement is the harmonisation of cross-border ICT connectivity, and regulatory frameworks. As a result, the One Network Area for telephone communication has been set up.

The establishment of a Single Customs Territory and One-Stop Border Posts has helped eliminate most non-tariff barriers, and reduced the cost of doing business.

Cargo transit time from the Mombasa port to Kampala has reduced from 18 days in 2012 to four days since the Jubilee Government came to office. Business volumes have increased as well as earnings for revenue authorities and private sector operators.

‘Nexus’ is the Government Newsroom that communicates transformation

10 May 2016

Mining a shining example under Jubilee


The last three years of the jubilee administration have seen a huge increase in revenue deposited with the treasury increase to billions of shillings following the streamlining of the mining sector.

This included better regulation in the licensing procedure, conducting of geological area surveys and monitoring of mining companies in the country to ensure they do not steal from the country and only benefit themselves.

The Online Transactional Mining Cadastre system set up last year February is a computerized register of mining rights as well as a management tool for licensing and concessioning.

The ministry established an internationally accredited Mineral Certification Laboratory that will offer mineral testing and analysis services to the East African region and African.

In addition, mining benefits local communities as they receive 10% of the profits from the minerals mined in their environment.

The Mining Bill 2016 before the senate proposes 70 per cent of the proceeds to go to the State, 20 per cent to the County and the 10 per cent to the communities.

The ministry has also undertaken an analytical analysis of minerals in Kenya, which will be used to develop a 20 year Mining Strategy.

The Geological Data Bank has started and acts as a repository centre, where relevant geological data and information shall be readily available to interested investors.

For legal work, the Mining Bill 2014when it becomes law it will help repeal the legislation relating to mining, once enacted into law.

The proposed law will enable the ministry to establish a simple, clear, transparent, and predictable legal framework for the management of mineral resources in Kenya.

The ministry has prepared a draft Mining Policy to address gaps in mining and form the basis for review of the outdated Mining Act of 1940.

The discovery of oil in the country is another major boost in the mining sector. The ministry is currently drafting 16 regulations operationalize the upcoming law.

The Mining Bill is in the process of becoming a Law in the country, and it introduces major reforms to attract Mining Investors.

 

‘Nexus’ is the government newsroom that communicates transformation

04 Apr 2016

Jubilee’s sterling record in health


                  

The Jubilee government has successfully implemented the health promises it pledged to the people of Kenya, a recent Health ministry was told.

In the manifesto, Jubilee pledged to provide free maternity services at public hospitals, make healthcare accessible to the people, equip hospitals and set up county referral hospitals.

President Uhuru Kenyatta announced the free maternity programme immediately he came to office. At the same time, he directed that children below the age of five get free medical services in public hospitals.

The free maternity services, the ministry symposium was told, have resulted in a 61 per cent increase of the number of women delivering in public health facilities. The number of mothers delivering in public health facilities has gone up from 665,000 in 2013 to 1,079,000 now.

In turn, the number of maternal deaths has reduced by 2000 a year.

By increasing access to vaccines, mosquito nets, HIV medicines and better nutrition for children, the Jubilee Government has achieved a remarkable reduction in infant deaths by 20,000 and under-5 mortality by 33,000 deaths annually.

HIV prevalence rate has reduced from a high of 13 per cent to 5.6 per cent as a result of prevention, care and treatment.

The ministry has also surpassed Kenya’s global target in the reduction of TB as a result of 90 per cent success in treatment. Detection of TB has improved, making it possible to identify 82,000 new cases before they get critical.

Another score for the government is the Managed Equipment Scheme that has been rolled out to improve specialised access to health services in every county. So far, six hospitals have received all the equipment in the programme.

‘Nexus’ is the Government Newsroom that communicates transformation

 

16 Mar 2016

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International Criminal Court upholds justice by saying #Rule68 will not apply. Download the full judgement.
12 Feb 2016

Kisii Town Gets free WiFi




Kisii County will be the second beneficiary of the free WiFi initiative launched by the government in collaboration with Kisii County Government and Liquid Telecom.

The WiFi will provide free internet connection in Kisii town and its environs.

This comes after the successful launch of free WiFi in Nakuru County dubbed #NakuruFreeWifi.

The WiFi is set to be connected in five strategic areas in Kisii County that include Kisii bus park, Kisii Level Five Hospital, Central Business District, Kisii County headquarters and Kisii University.

The internet is expected to promote development in the county by giving businesses online visibility, and connecting campuses and entrepreneurs across the globe.

The project will be headed by the Presidential Strategic Communication Unit (PSCU), led by State House Director of Digital, New Media innovations and Diaspora Dennis Itumbi.

Speaking to Nexus, Mr Itumbi said, “Jubilee promised to connect five towns to free WiFi we are firmly on course. The world is swiftly moving to the digital era, and as a country, we do not want to be left behind. We want business operators in the telecommunication industry to seize the opportunity.”

Liquid Telecom Chief Commercial Officer Paul Statham said that internet connectivity was critical in promoting growth of business and promoting excellence among students as they easily access information resources through the internet.

The portal enables increased access to marketplaces, customers, training of staff and access to resources and other services.

The free WiFi also enables e-learning through information sharing among students. They can use the WiFi to access study aides and resources ranging from online libraries to document storage, formatting and data collection.

"Nexus is the government newsroom that communicates transformation"

 

 

05 Feb 2016

RE: RESPONSE TO THE HON. RAILA ODINGA’S STATEMENT ON KENYA’S EUROBOND DATED 14TH JANUARY, 2016

 

 
   

                                                        

 

                         

PRESS RELEASE

 

RE: RESPONSE TO THE HON. RAILA ODINGA’S STATEMENT ON KENYA’S  EUROBOND DATED 14TH JANUARY, 2016:

Over the last three months the issue of the Eurobond has been in the public domain. During that time, the National Treasury has consistently and comprehensively responded to the issue through the media and posted the relevant documents on its website. Further, the National Treasury has also presented the same information to Parliament. Anybody who is sensible and well intentioned will be able to see that the claims that are now being made by the Former Prime Minister Hon. Raila Odinga are absolutely false and misleading.

 

As Kenyans will recall, the Director of Public Prosecution (DPP), directed the Ethics and Anti-Corruption Commission (EACC) and the Director of Criminal Investigation (DCI) to investigate the matter and forward their findings to the DPP’s Office. These independent institutions have carried out their investigations and forwarded their report to the DPP. The DPP has summarized the findings of the EACC and DCI as follows:

  1. no government official was found culpable;
  2. recommended that the file be closed; and
  3. recommended that the Auditor General carry out a special audit in Ministries/ Departments and Agencies to verify how the proceeds of the Eurobond were applied.

 

It is also important to note that Parliament has also recommended that the Auditor General carries out a special audit in Ministries / Departments / Agencies and indeed the Auditor General has commenced the special audit.  

 

Despite these ongoing processes, Hon. Raila Odinga has persistently been making allegation that the proceeds of the Eurobond were stolen or unaccounted for. However, when asked to provide any evidence which could assist the investigative arms of Government, he has failed consistently. In addition, when Hon. Raila Odinga was asked again today in a public forum, he failed to provide any evidence. It is vital for the Kenyan people to note that Hon. Raila Odinga has relied on outright lies, and subversion of the truth for political gain and at the expense of the Kenyan economy.  Clearly, these statements are meant to hurt the Kenyan Economy through sabotage by keeping away investors.  The Kenyan people must hold him to account for lost opportunities now and in the future.

 

For purposes of the general public information, we shall again clarify some of the key issues raised in his statement as follows:   

 

1.              The allegation that US$ US$ 999 million  (Kshs. 88.5 billion) is missing

 

Response:

The standard procedure for this transaction is for the Government to sell the dollars received to CBK which it retains as its own international reserves and simultaneously credits the Government Account at the CBK with the equivalent in Kenya Shillings.  

 

In this particular case the Kenya Shillings Equivalent of Kshs. 88.46 billion (US$ 999 Million) was credited in the CBK Sovereign Bond Account No.1000212764 at the Central Bank of Kenya on the 8th September, 2014.  At the same time, the CBK’s international reserves were increased by the equivalent in dollars of US$ 999 million at the CBK Account held with the Federal Reserve Bank in New York.  This clearly demonstrates that there were no funds lost because the CBK forex reserves increased and the Government received its money.

 

The SWIFT transfer documents and the bank statements from the JP Morgan Chase bank and Citibank relating to these transactions were shared with Parliament, Auditor General, investigators and the media as well as posted in the National Treasury website and no information was redacted. As indicated earlier it is evident to well-meaning Kenyans that the money was received at the CBK. 

 

 

2.              The mystery of 7 letters purporting to direct the Central Bank of Kenya to make non-existent transfers to the Consolidated Fund.

 

Response:

It is ridiculous to purport that the letters referred to above are not authentic and that the transfer instructions are not genuine. These were the transfer instructions to the CBK to move the funds from the Sovereign Bond Account to the National Exchequer Account. We have shared the letters that transferred these funds to the National Exchequer Account with the Auditor General, the Controller of Budget, the Ethics and Anti-Corruption Commission and the Director of Criminal Investigations who have confirmed that the funds were received into the National Exchequer Account from the Sovereign Bond Account at the CBK, from where the Controller of Budget authorized the withdrawals. We also have posted them onto the National Treasury website www.treasury.go.ke for general public consumption.

 

3.              We wish to re-emphasize that all proceeds of the Eurobond were received and properly accounted for. The National Treasury respects the rule of law and has complied fully with the provisions of the Constitution and the Public Finance Management Act, 2012 during the Eurobond transactions.

 

Conclusion.

 

4.              There is nothing new that the Hon. Raila Odinga has said. All the information is already in the public domain.  Indeed the officers mentioned were in the course of ordinary government business and he has presented no evidence of misconduct on their part. He is engaged in the malicious destruction of the reputations of the public officers. Equally, in this day and age, it is shameful that someone can cast aspersions on independent, reputable and highly-regulated institutions such as the Federal Reserve Bank of New York, JP Morgan Chase Bank, New York, Citibank New York without a shred of evidence.

                       

Thank you

 

 

 

HENRY ROTICH, EGH

CABINET SECRETRARY / NATIONAL TREASURY

 

Dated: 14th January, 2016

15 Jan 2016

Garissa University College to be re-opened




Garissa University College will be reopened after a meeting of top education officials and Moi University Senate to be held in the next two weeks, Deputy President William Ruto has said.Mr. Ruto said Education Cabinet Secretary Fred Matiangi will meet with the management of Moi University to come up with a programme of reopening the institution.

Garissa University College is a constituent of Moi University and was closed in April following a terror attack that killed 147 students.

 “Moi University Senate and CS Education will meet in the next two weeks to agree on the date of opening the institution,” said Mr. Ruto after a tour of the institution.

 Addressing the staff of the university, the Deputy President said education of Kenyans could not be compromised by acts of lawlessness.

 “We will not allow evil to prevail. We will shame those who attacked and killed innocent student”, said Mr. Ruto.




“Garissa University College is part of the infrastructural educational development that is needed in this country. It must be reopened to enable students concentrate on their studies to achieve their goals in life,” said the Deputy President.

 He said firm security measures have been put in place to contain terrorism among other criminal activities.

 “The government will finance the completion of ongoing projects at the university including a police post to ensure there is a conducive and peaceful environment for the students when they resume studies”, he said.

 Mr. Ruto said peace has been declared in Northern Kenya, which had been hard hit by insecurity occasioned by terrorists’ related activities in the recent past.

 The Deputy President said the move by leaders and wananchi to work closely with security agencies in the search for peace in the region has yielded fruits.

 Mr. Ruto asked young people to take responsibility for their country’s future by embracing peace and reconciliation.

 He said security was a collective responsibility where all Kenyans irrespective of their status in the society must come together and speak with one voice in the war against acts of lawlessness.

 



“We may negotiate the terms of peace as leaders but the fate of peace is up to all of us,” said Mr. Ruto during a leaders meeting held in Garissa township on Friday evening.

 Mr. Ruto hailed leaders in Northern Kenya for forging a common stand in the fight against terrorism among other criminal activities that had threatened peace in the region.

 He said he was impressed that leaders in the region had come to terms to the fact that security matters were collective responsibility where everybody must participate to get rid of criminal elements.

 “We are not going to cede any part of Kenya to any group. WE will defend any inch or portion of our country,” said Mr. Ruto.

 More than 50 MPs led by the National Assembly Majority Leader Aden Duale, Governors Nathif Jama (Garissa), Godana Doyo (Isiolo) and Ali Roba (Mandera) said they will support the Government in the fight against insecurity in the region.

 The leaders said they will support the Government in ensuring peace and stability in the region was maintained at all times.

 





05 Dec 2015

President Xi pledges $60 billion to support Africa for development

 

JOHANNESBURG, South Africa, 4 December 2015 – China will provide $60 billion funding support for Africa’s development, Chinese President Xi Jinping said today.

 

At the start of the summit of the Forum on China-Africa Cooperation (FOCAC) attended by President Uhuru Kenyatta and close to 40 other African leaders, President Xi outlined a 10-point plan to boost China-Africa cooperation.The support package includes grants, interest-free loans, preferential financing, export credit lines and concessional loans.

 “We will implement the 10-point plan with Africa in the next three years,” President Xi said during the Johannesburg FOCAC summit which he is co-chairing with South African President Jacob Zuma.He said the $60 billion support is meant to ensure that the plan is successfully implemented within the stipulated three-year period by addressing three issues holding back Africa’s development, namely: “inadequate infrastructure, lack of professional and skilled personnel and funding shortage.”

 

President Xi’s plan focused on support in industrialization, infrastructure development, financial support, agriculture, trade and investment, environmental conservation, health and peace building.On industrialization, the Chinese President said his Government will actively promote industrial alignment and production capacity cooperation as well as encourage more Chinese enterprises to invest in Africa.

 

“We will build and upgrade a number of industrial parks, send advisors and senior Government experts to Africa. We also put up regional vocational centres to boost capacity building,” President Xi said.He disclosed that China will also provide 40,000 technical training opportunities for Africans.

On infrastructure, President Xi said his Government will step up mutual beneficial cooperation with Africa in infrastructure planning, designing, construction, operation and maintenance.

 

“We support the active participation of Chinese enterprises in Africa’s infrastructure development in areas such as railways, roads, regional aviation, ports, electricity and telecommunications to enhance Africa’s capacity for sustainable development,’ he said.

 The construction of the Standard Gauge Railway is one of the projects that has benefitted from China’s support.

President Xi said China will also negotiate free-trade agreements with Africa to promote imports from the continent and support the agriculture industry to help create more local jobs.

The announcement comes at a time when China, which is Africa’s largest trading partner, is seeking to boost its approach to doing business in the region.

President Jacob Zuma welcomed China’s support to the continent, saying it would go a long way to bolster existing cordial ties.“Our relationship with China stood the test the time and is destined to continue flourishing for many years to come,” President Zuma pointed out.

He added: “The strategic partnership between Africa and China is vital to achieve development goals.”

 

Zimbabwe President Robert Mugabe, who is also the current African Union Chairman, also addressed the summit.

04 Dec 2015
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