the east african digest · 2015-04-22 · the east african digest 2015, volume 1 & 2...

THE EAST AFRICAN DIGEST

2015, Volume 1 & 2

Construction workers go about their work in front of a mural advertising dental services in Somalia’s capital, Mogadishu

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2

A monthly summary of business and

political developments in East Africa.

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public opinion research, reputational

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East African Community Bloc

Kenya business

Kenya politics

Uganda business

Uganda politics

Tanzania business

Tanzania politics

Rwanda business

Rwanda politics

Burundi business

Burundi politics

Content

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East African Community Bloc• Consumers across Eat Africa will start paying more

for basic commodities after partner states agreed

to close a window that allowed for duty free imports

during shortages.

• Talks on the admission of South Sudan into the

East African Community are set to take center stage

at the EAC Heads of State Summit scheduled for

February 20, 2015. Also on top of the agenda is

the verification of an application by the war torn

Federal Republic of Somalia to join the five member

regional block.

• The MasterCard Foundation has put up a $50

million fund for financial service providers in East

Africa to finance farmers.

• Regional central banks have jointly agreed to hold

reserves in local currencies in a bid to reduce reli-

ance on the volatile dollar conversion rate, ease

pressure on local currencies and promote intra-

regional trade.

• Metropol Credit Reference Bureau Ltd is currently

carrying out feasibility studies on the Ugandan,

Tanzanian and Rwandan markets with plans to set

up subsidiaries before the end of the year.- The East

African.

• The East African Community Council of Ministers

is set to introduce the EAC Competition (Amend-

ment) Bill 2015 to curb the counterfeit menace amid

growing complaints by manufacturers and traders

affected by counterfeits.

• East African countries are reviewing their taxation

laws in a bid to reduce tax exemptions that have

seen their economies lose out on revenue. Current-

ly Tanzania and Rwanda have moved to effect new

VAT Bills that deal with tax exemptions.

• Uganda, Tanzania and Burundi are yet to secure in-

ternal approvals for the Double Taxation Agreement

(DTA) to operate in East Africa, five years after the

deal was struck leaving countries with cross border

investments paying tax on their invoices.

• The East African securities regulatory authorities

have set June 2015 as the deadline for harmoniza-

tion of market laws in Kenya, Uganda, Tanzania,

Rwanda and Burundi.

• Kenyan exporters of fresh produce to the EU are

The East African Legislative Assembly has adopted its new Rules of Procedure that are expected to take effect at the 5th Meeting of the 3rd session in March.

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demanding $10.7 million in compensation from the

government for losses incurred through taxes im-

posed on produce destined for the EU over a period

of three months beginning October 2014.

• According to the latest data from the Communica-

tion Authority of Kenya, there has been an increase

in mobile phone traffic of 16.9 % to 19.1 million

minutes, up from 16.3 million minutes posted dur-

ing the last quarter. The increase in telecommunica-

tions has been attributed to the One Network Area

agreement.

• The Kenya National Chamber of Commerce and

Industry will receive an $85,000 grant from Trade-

Mark East Africa to digitize the process of business

certification.

• Japan has advanced Kenya a $269 million loan to

fund the second phase of the Mombasa port expan-

sion. The money to be given through the Japan

International Corporation, is earmarked for the

construction of a container terminal of the west of

Kipevu land to create an additional three berths.

• EgyptAir has announced that it will resume direct

flights to Kenya as it seeks to deepen its business

ties with East Africa. The resumption date will be set

after negotiations.

• The African Digital Network (AND), a consortium of

Kenya’s three leading media houses, Nation Media

Group, Royal Media Services and the Standard

group, is planning to team up with a telecoms

company to offer internet services through set top

boxes.

• The Standard Gauge Railway (SGR) scheduled for

completion in 2017 could fall behind schedule

after a dispute over VAT erupted between major

suppliers to the Chinese contractors and the Kenya

Revenue Authority.

• A survey by the Ministry of East African Community

Affairs shows that the volume of Kenya’s exports to

the EAC has declined sharply with the major

Loans from domestic banks to Kenyan state corporations will not be guaranteed by the government. A new rule introduced by the

National Treasury to curb excessive borrowing also requires government ministries, state agencies and corporations to ensure their

cash flow requirements are handled through a single Treasury account..

BusinessKenya


challenge being unfair competition from Chinese

traders and the country’s value added tax system

that has become an impediment to export business.

• Kenya is tipped to be among seven economies that

will replace the BRICS as new frontiers for long term

investment.

• According to corporate finance advisory firm Bur-

bidge Capital, Kenya and Tanzania accounted for

over 80 percent of the total deals concluded in the

natural resources sector last year.

• Kenya has agreed to acquire a 2.5 percent stake in

the planned Uganda oil refinery for an estimated

Kshs 5.6 billion.

• Panalpina one of the world’s largest freight and

logistics companies has opened its regional office in

Nairobi to serve clients in the oil and gas industries

in East Africa.

• The Central Depository and Settlement Corpora-

tion (CDSC) is set to introduce same day transaction

in the equities market by end of September, likely

pushing up the traded volumes.

• According to data from Central Bank of Kenya

shows mobile payments grew 24.8 percent to total

Kshs 2.1 trillion as at the end of November, exceed-

ing the Kshs 1.9 trillion handled in the full year

2013.

• Old Mutual raised its stake in U.A.P to 60.66% fol-

lowing an agreement to buy 37.33% stake held by

three private equity firms, at Kshs 180 per share

making U.A.P the second most valued insurer at the

Nairobi bourse.

• Centum investment got the greenlight to sign a $1.8

billion contract with the government to construct

a 960 megawatt coal power plant in Lamu. This

follows the dismissal of a petition filed by one of the

losing bidders in the tendering process.

• American aviation authorities will in March rule

whether Kenya can start direct flights to the US. Ac-

cording to Transport Secretary Michael Kamau said

the Federal Aviation will carry out the final evalua-

tion of the Jommo Kenyatta International Airport.

• Gulf Air has applied to leave the central billing plat-

form used by airlines and travel agents operating in

Kenya marking the last formality for the airline’s exit

following its November 2013 announcement.

• Kenya is likely to host the Tokyo International Con-

ference on African Development Summit in 2016,

the first ever in Africa, after Ethiopia, which had

earlier shown an interest, withdrew its bid.

• According to the Central Bank of Kenya Credit Of-

ficer Survey Report for 2014, Kenya Uganda and

Tanzania recorded a rise in their non-performing

loans last year from $872 million in 2013 to $1.12

billion an increase of 30.6 per cent .

BusinessKenya


BusinessKenya• Manufacturers and traders in Kenya are set to

receive the first tranche of a total $206.3 million in

VAT refunds dating back to 2013 as the Treasury

finally verified the claims.

• The Kenyan government has allocated close to Kshs

7 billion to streamline supplies to the standard

gauge railway line project after major suppliers

were forced to pay VAT on their merchandise in ac-

cordance with the country’s tax laws.

• The Kenya Revenue Authority has approved the

merger of Kenya’s domestic taxes into a single

department as part of a wider reform programme

aimed at supporting increased revenue collection.

• According to a Bloomberg Survey of 57 countries,

Kenya has been ranked third globally whose

economy is projected to register the fastest growth

this year, placing the country ahead of other emerg-

ing markets in Africa.

• John Tanui, a former deputy CEO of Huawei’s Ke-

nya’s operations, has been appointed the first chief

executive officer of the government backed technol-

ogy city, Konza. John Tanui takes over the position

from Catherine Adeya, who held the position in

acting capacity.

• Kenyan firms stand to benefit from a Kshs 16.6 bil-

lion PTA Bank deal with European Investment Bank

that could see the business secure foreign currency

loans up to 15 years.

• Treasury secretary Henry Rotich has shifted the bur-

den of paying and accounting for capital gains tax to

investors at the Nairobi Securities Exchange ending

the fight with stockbrokers that nearly paralysed

trading at NSE.

• Former director-general of Vision 2030 Mugo Kibati

has been appointed the new chief executive of Pan

Africa Insurance Holdings marking his return to the

corporate world.

• Lake Turkana Wind Power project has won the Afri-

can Renewables Deal of the Year after it successfully

structured Kshs 70 billion financing. The project

feted by IJ Global Awards draws funding from more

than 10 European and African development finance

institutions, two commercial banks and two hedging

banks.

• Mastermind Tobacco’s electrical engineering

subsidiary, NGM Ltd and advertising firm Magnate

Ventures have signed lucrative tenders to construct

36 Kenya Power substations across the country at a

cost of Kshs 10.45 billion.

• Kenya’s installed capacity now stands at 579 MW af-

ter the injection of an additional 280 MW produced

in Olkaria to the national grid. This has lifted Kenya’s

global ranking as the eighth largest producer of

geothermal energy.


BusinessKenya

• Parliament has passed a bill that could compel the Central Bank of Kenya to lower the minimum investable amounts in government securities, if President Uhuru Kenyatta

signs it into law. The Central Bank of Kenya (Amendment) Bill 2014 by MP Kabando wa Kabando seeks “lower minimum investment denominations in” in T-bills and bonds.

• Britam under Britam Asset Managers (BAM) has contracted Equity and Family Bank to sell its pension scheme to small and medium firms, the first such move in the financial

sector.

• Safaricom has revealed plans to introduce M-Pesa payment cards that will be used for settling government services and taxes. The M-Pesa debit cards and point of sale ter-

minals will enable customers to pay for government services, which the government has committed to shift online in a bid to curb corruption and ease transaction at public

offices.


PoliticsKenya

• Kenya will establish a multi-agency committee to

monitor and oversee the implementation of the

international treaties it signs. The committee will

also be responsible for reviewing all conventions,

treaties and agreements that have been signed

since independence and advise the government on

the ones to maintain and those to drop.

• Kenyan diplomats at the Africa Union Summit in Ad-

dis Ababa failed to persuade other countries to fast

track plans for an African court to deal with cases

currently falling under the International Criminal

Court.

• The quorum hitch that has crippled business at the

CDF Board has been resolved, ending the long wait

by constituencies that are yet to receive develop-

ment cash since July last year.

• The Commission on the implementation of the Con-

stitution has asked the High Court to pay attention

to the reason being offered by the state as grounds

for amending the security laws.

• Commission for the implementation of the Constitu-

tion Chairman, Charles Nyachae has asked the anti-

corruption agency to start disciplinary proceedings

against leaders who have been involved in unruly

behavior in recent times.

• The defence team of Deputy William Ruto sought

to illustrate that the ICC investigations were full of

political undertones, following revelations that all

witnesses were from PNU.

• Former Industrial Court judges who declined to

re-apply for their jobs before the Judicial Service

Commission (JSC) following the promulgation of the

Constitution in 2010 have failed to get their jobs

back.

• A section of Jubilee leaders made a rare appeal to

Opposition leader Raila Odinga to come to the aid

of Deputy President William Ruto in the case he is

facing at the International Criminal Court.

• The government synergy suffered a major blow in

its attempt to enforce tough security laws after the

Court of Appeal refused to reinstate the suspended

clauses.


BusinessUganda

• Uganda has applied for a $100 million loan from the

International Development Association to be used

to fund, among other things, the interconnection of

isolated systems and upgrading of existing transmis-

sion infrastructure.

• Copper mining at Uganda’s Kilembe mines will

resume later this year after a Chinese concessionaire

completes its rehabilitation.

• Vodafone Group that entered into a non-equity Part-

ner Market agreement with Afrimax Group to launch

Vodafone Uganda and serve mobile customers in

the Ugandan market with high quality voice and data

communications, has launched voice and 4G LTE

high-speed data services.

• The Dutch government through its foreign affairs

ministry announced a US$1.2mn (approx. Ush3.4bn)

support to 30 Business Process Outsourcing compa-

nies of Uganda under the Netherlands Trust Fund III.

• Civil Aviation Authority (CAA) has unveiled a 20-year

plan that will create four more international airports,

three regional and six local airports in addition to

expanding the Entebbe International Airport.

• Uganda Revenue Authority has reported a surplus

of Ush24.26 billion (about $8 million) after it col-

lected Ush4, 568.44 billion surpassing their target of

Ushs4, 544.17 billion. However this excludes non-tax

revenue and refunds for the period of July-December

2014.

• The National Social Security Fund recorded a 23 %

profit of Ushs 202 billion up from SHS 156bn during

the same period the previous financial year.

• Online money transfer service WorldRemit and tele-

coms operator MTN have signed a global partnership

that will enable WorldRemit customers to send remit-

tances instantly to MTN’s Mobile Money customers.

• The Electricity Regulatory Authority (ERA) has ap-

proved a three per cent increment in electricity

prices, which would see domestic consumers pay an

additional SHS13.5 this financial year.

• According to reports by Bank of Uganda remittances

from Ugandans living abroad fell from $930 million

in 2013 to $850 million in 2014 representing a 8.4

percent drop.

• ALTX Uganda is set to unveil new derivatives instru-

ments nearly 12 months after the firm secured a

license from Uganda’s Capital Markets Authority to

operate a derivatives market.

• A decline in aid dependence and improved tax collec-

tions has helped improve Uganda’s credit rating from

“B” to “B+”, enabling it to access lending at favorable

terms in international financial markets.

• Uganda’s insurance regulator is proposing reforms

to the sector’s laws to improve compliance and com-

pensation for accident victims under the motor third


BusinessUganda

party insurance (MTPI) scheme.

• Locally owned service providers in Uganda’s oil and

gas sectors are opting for joint ventures with interna-

tional companies in preparation for the production

phase, which is capital intensive- The East African

• Russian-led consortium, RT Global Resources, a sub-

sidiary of Russian state corporation- Rostec has been

selected to build Uganda’s first oil refinery plant in

preparation for commercial drilling of crude.

• Power generation at the 183MW Isimba hydro power

plant in Kayunga and Kamuli districts will start in

2016, with 16 per cent of the work currently com-

pleted.

• According to a study, titled “Decentralized payroll

management in Uganda”, the Ugandan Government

saved Ushs 100 billion in workers’ salaries in the first

quarter of this financial year (2014/15) after it decen-

tralized the payroll.

• Uganda will extend its Electronic Cargo Tracking

System (ECTS) into Kenyan as part of strategy to curb

theft and diversion of goods destined for its market

through the port of Mombasa.

• Vodafone Uganda has commercially launched

voice and 4G LTE high-speed data services. The 4G

high-speed data services will initially be available in

Kampala and Entebbe, with plans to rapidly expand

to other cities soon.

• Cross listed Ugandan power distributor Umeme has

filled board positions left vacant on exit of two direc-

tors last November. Piet Faling and Ivan Kyayonka

have been appointed non-executive directors to re-

place Younes Maamar and Ian Francis representing

Actis who resigned last November following a major

change in ownership structure.

• The Uganda Chamber of Mines and Petroleum, an

association of private players involved in the extrac-

tives industry, wants government to expedite the

insurance of production licenses to two oil compa-

nies Total E&P and Tullow Plc, and the scrapping of

taxation on exploration projects.


BusinessUganda• According to reports by Bank of Uganda remittances

from Ugandans living abroad fell from $930 million

in 2013 to $850 million in 2014 representing a 8.4

percent drop.

• ALTX Uganda is set to unveil new derivatives instru-

ments nearly 12 months after the firm secured a

license from Uganda’s Capital Markets Authority to

operate a derivatives market.

• A decline in aid dependence and improved tax collec-

tions has helped improve Uganda’s credit rating from

“B” to “B+”, enabling it to access lending at favorable

terms in international financial markets.

• Uganda’s insurance regulator is proposing reforms

to the sector’s laws to improve compliance and com-

pensation for accident victims under the motor third

party insurance (MTPI) scheme.

• Locally owned service providers in Uganda’s oil and

gas sectors are opting for joint ventures with interna-

tional companies in preparation for the production

phase, which is capital intensive- The East African

• Russian-led consortium, RT Global Resources, a sub-

sidiary of Russian state corporation- Rostec has been

selected to build Uganda’s first oil refinery plant in

preparation for commercial drilling of crude.

• Power generation at the 183MW Isimba hydro power

plant in Kayunga and Kamuli districts will start in

2016, with 16 per cent of the work currently com-

pleted.

• According to a study, titled “Decentralized payroll

management in Uganda”, the Ugandan Government

saved Ushs 100 billion in workers’ salaries in the first

quarter of this financial year (2014/15) after it decen-

tralized the payroll.

• Uganda will extend its Electronic Cargo Tracking

System (ECTS) into Kenyan as part of strategy to curb

theft and diversion of goods destined for its market

through the port of Mombasa.

• Vodafone Uganda has commercially launched

voice and 4G LTE high-speed data services. The 4G

high-speed data services will initially be available in

Kampala and Entebbe, with plans to rapidly expand

to other cities soon.

• Cross listed Ugandan power distributor Umeme has

filled board positions left vacant on exit of two direc-

tors last November. Piet Faling and Ivan Kyayonka

have been appointed non-executive directors to re-

place Younes Maamar and Ian Francis representing

Actis who resigned last November following a major

change in ownership structure.

• The Uganda Chamber of Mines and Petroleum, an

association of private players involved in the extrac-

tives industry, wants government to expedite the

insurance of production licenses to two oil compa-

nies Total E&P and Tullow Plc, and the scrapping of


Politics

Uganda

taxation on exploration projects.

• Ms Maureen Kyalya Waluube, the outspoken presi-

dential advisor on poverty alleviation in Busoga, has

admitted that she regrets dropping her bid for a par-

liamentary seat in exchange for a State House job.

• A Chief magistrate’s court has ordered the Electoral

Commission to reveal the source of money and

names of funders of the ruling NRM. The order was

issued by Timothy Lumunye at Nakawa on October

31, 2014 but six months down the road the EC has

not complied.

• Uganda Revenue Authority (URA) has launched the

E-litigation system (e-Lit) to improve the effectiveness

of their legal system in handling internal cases.

• The National Resistance Movement leadership in

Bukomansimbi district was locked in wrangles over

allegations of exaggerating its popularity. It was

alleged that in a bid to impress President Museveni,

local leaders showed him avowed NRM supporters

as people who had crossed from the opposition.

• DP national chairman Mohammed Baswari Kezaala

has urged unhappy members to complain through

the party structure, instead of creating divisive fac-

tions. The Norbert Mao administration is at logger-

heads with DP politicians from Buganda, who have

recently organized rallies in a bid to strengthen the

party.

• East African Court of Justice’s (EACJ) First Instance

Division has heard a case filed by an applicant from

Uganda, Mr Godfrey Magezi against the Attorney

General (AG) of the Republic of Uganda, the Respon-

dent, accusing the country’s government of resourc-

es plunder.

• Tensions between former Prime Minister Amama

Mbabazi and the ruling NRM have reignited in the

Supreme Court, where the expelled party MPs are

fighting to retain their parliamentary seats. The NRM

has already fired two of its lawyers deemed to be

Mbabazi-leaning as it prepares to fight the expelled

MPs in the Supreme Court.


BusinessTanzania• Tanzania is in talks with six multinationals companies

over plans for a joint venture to revive General Tyre

East Africa, the giant tyre manufacturing plant in

Arusha.

• Tanzania and Zambia are to inject $25 million into

the cash strapped 1,860km joint railway line that

runs from Dar es Salaam to Kapriri Mposhi in Central

Zambia.

• The High Court refused to grant two companies the

chance to present more submissions in a case involv-

ing demand for payment of over 787bn/- over fraud

by the Independent Power Tanzania Limited.

• TERACO Data Environments, Africa’s leading vendor

neutral collocation data centre operator and Internet

exchange point (IXP), has secured R400 million from

Barclays Bank to enhance its expansion.

• State owned Tanzania Telecommunications Limited

TTCL, inked a $182 million dollars deal with Huawei

Technologies aimed at helping the national tele-

phone communication build its landline and mobile

ICT networks.

• Airtel Tanzania unveiled Near Field Communication

(NFC) payment service, that enables holders of Airtel

Money accounts settle bills using their cards.

• The Parliamentary Public Accounts Committee (PAC)

has expressed disappointment at the trend of esca-

lating tax exemptions in 2013/2014. In total these

rose by over $ 200 million (Tsh.340 billion) to $10.70

billion (Tsh.1.82 trillion) from $ 8.70 billion (Tsh.1.48

trillion) despite its efforts to the government to

reduce the waivers.

• Tanzania and the World Economic Forum (WEF) are

working on the Central Corridor Acceleration Project

that will see railways, roads, marine and air routes

linking Dar es Salaam to the landlocked countries

of Uganda, Burundi, Rwanda and the Democratic

Republic of Congo.

• The National Bank of Commerce (NBC) announced

the appointment of Dr. Kassim Hussein, as interim

chairman of the bank’s board of directors. Dr. Hus-

sein fills the position left vacant by Professor Mussa

Assad who was recently appointed Controller and

Auditor General.

• Tanzania has approved the acquisition by Sky Associ-

ates Group Ltd of 50 per cent shares in Tanzanite

One Mining Ltd from Richland Resources for $5.1

million.

• Tigo Tanzania and Vodacom Tanzania have reached

an agreement to allow their customers to send

money across mobile platforms. The agreement has

created the first integrated money transfer network

in East Africa run by four rival telephone companies.

• The International Finance Corporation has agreed

to finance the expansion of the Songo Songo Gas to


BusinessTanzania

Power project at a cost of $120 million to help ease

power crunch in Tanzania.

• The Gross Domestic Product (GDP) for the third

quarter of 2014 reached 10.7trillion- up from 10.3tril-

lion, - of the corresponding period in 2013 by using

2007 base year, meaning Tanzania’s economy grew

to 6.8 per cent in the third quarter of 2014, slightly

lower than 7.4 per cent growth in a similar quarter of

the previous year.

• The Tanzania Communications Regulatory Author-

ity (TCRA) intends to take measures against telecom

firms that reviewed promotion data tariffs without its

express permission.

• Small Industries Development Organisation (SIDO)

has ventured into public private partnership (PPP) as

a strategy to reduce its dependence on government

subsidy.

• VIP Engineering and Marketing Limited (VIP) has

petitioned the International Centre for Settlement of

Investment Disputes (ICSID) to protect the govern-

ment of Tanzania from paying Standard Chartered

Bank Hong Kong Limited (SCBHK) over 200bn/-.

• According to the Bank of Tanzania (BoT) monthly

economic review, good performance in exports of

manufactured goods and travel receipt pushed the

value of Tanzania’s exports to 8,812.5 million US

dollars for the year ended December, 2014, up from

8,459.7 million US dollars recorded in the corre-

sponding period in 2013.

• Joint Liquidators of Mechmar Corporation (Malaysia)

Berhad, were ordered to deposit 11 million US dol-

lars (about 20bn/-) before determination of a case

in which transfer of shares in Independent Power

Tanzania Limited (IPTL) is challenged.

• The African Development Bank (AfDB) has approved

a $145 million loan to fund the building of an elec-

tricity line between Tanzania and Kenya to improve

regional power connections. The funding would help

construct 507.5 km of transmission lines and substa-

tions along its path to allow for the transfer of 2,000

megawatts (MW) of electricity in either direction

between Kenya and Tanzania.


PoliticsTanzania• The East African newspaper has been banned from

circulation in Tanzania, 20 years after it was launched

to cover the region. According to a letter sent to the

East African bureau chief in Tanzania, the decision

was taken because the paper “has been circulating

in the country without being properly registered,

contrary to section 6 of the Newspaper Act number

3 of 1976.

• Rwanda and Tanzania have clashed over the planned

military action against the Democratic Forces for

the Liberation of Rwanda who ignored the January 2

deadline to disarm.

• Parliament has summoned Tanzania Development

Corporation officials to a meeting in a bid to have the

government disclose 26 agreements it has signed

with foreign oil and gas exploration companies and

audit them amid concerns that companies may use

secrecy to inflate recoverable costs.

• Uncertainty is rising on whether the referendum

for a new constitution for Tanzania is going to be

held in April 30 this year as scheduled or if it will be

postponed due to legal technicalities around missed

deadlines and logistical problems.

• Former Tanzanian president Ali Hassan Mwinyi has

backed January Makamba, son of prominent Chama

cha Mapinduzi cadre and immediate former CCM

secretary general Yusuph Makamba for presidency

in this year’s general election.

• Tanzania’s Energy Minister, Sospeter Muhongo quit

becoming the third top government figure pushed

out of office over a multi-million dollar energy cor-

ruption scandal, although he insisted he was “not a

thief.”

• Tanzanian opposition lawmakers have called for an

overhaul of the country’s policing laws after accusing

police of using excessive force to disperse a demon-

stration in Dar es Salaam. Police arrested Civil United

Front (CUF) national chairperson Ibrahim Lipumba

and 30 other party members during a rally commem-

orating the deaths of party members in Zanzibar in

2001.

• The United Republic of Tanzania’s new Minister for

East African Cooperation, Hon Dr Harrison George

Mwakyembe was sworn-in as an Ex-Officio Member

of EALA.

• Civil Society organisations in Tanzania are preparing

to provide civic education on the proposed Constitu-

tion before the referendum slated for April 30, 2015

even as they disagree with the whole process that

culminated in the proposed law.

• The First Instance Division of the East African Court

of Justice, sitting in Arusha has heard and allowed

an application seeking to discontinue the case filed

by three Tanzanians, against the Republics of Kenya,


PoliticsTanzania

Rwanda and Uganda.

• Mbinga West Member of Parliament and Member

of the ruling Chama Cha Mapinduzi (CCM) National

Executive Committee (NEC) Captain John Damian

Komba succumbed to death after suffering pressure

and diabetes.

• Premier Mizengo Pinda has cautioned leaders of the

ruling Chama Cha Mapinduzi (CCM) against impos-

ing candidates vying for leadership positions of their

choice, but instead should leave the public to make

their own choices.

• Legal and Human Rights Centre (LHRC) led Tanzania

Civil Society Consortium on Election Observation

(TACCEO) plans to dispatch 160 members country-

wide to monitor the registration of voters through

Biometric Voter Registration (BVR).

• The Acting Director General of Tanzania Ports

Authority (TPA), Engineer Madeni Kipande, has been

suspended over allegations of mismanagement.

• Tanzania Election Monitoring Committee (Temco),

will deploy a total of 13,400 long term and 298 short

term observers to monitor the voter registration

processes. Through a funding of US 4 million US

dollars (about 6.8bn/-) from the United States Agency

for International Development (USAID), the group will

effective start monitoring registration of voters as

well as the envisaged referendum on the proposed

constitution.

• Tanzania Parliamentary Group on Nutrition, Food

Security and Child Rights (PGNFSCR) has launched a

book on recommendations targeting political parties’

manifestos during this year’s general elections.

• The European Union envoy to Tanzania and the East

African Community (EAC), Mr Filiberto Ceriani-Se-

bregondi and EAC Secretary General Dr Richard Sezi-

bera, have signed a financing agreement committing

10.3bn/- for special Electoral Support Programme in

the country as well as Burundi polls slated for this

year


Business

• Rwanda says it will be reducing its high import bill by

buying locally made products, especially construction

materials. In a five year plan, the Ministry of Trade

and Industry seeks to reduce the bill by 18%.

• Kenya Commercial Bank (KCB) Rwanda has suffered

a $3.1 million loss from the sale of an estate belong-

ing to a defaulter, DN International, after fighting

court battles for more than two years.

• Rwanda is overhauling its medical insurance scheme,

specifically the community based cover commonly

known as Mutuelle de Sante which will now be man-

aged by the Rwanda Social Security Board (RSSB),

instead of the Health Minsitry whose capacity to

manage the scheme has been questioned.

• The government is considering strategies on how to

revise downwards the retail prices of the recently

launched 4GLTE Internet by at least 50 per cent to

address the low uptake to the technology.

• The World Bank Group approved a $70-million

(about Rwf49 billion) credit to support Rwanda’s

social protection strategy. The fund will be disbursed

through the International Development Association

(IDA) and will help improve efficiency and widen the

scope of the strategy, including poverty reduction

through increased household income.

• Canadian firm, SteviaLife, has signed a Memorandum

of Understanding (MoU) with the Rwandan govern-

ment allowing it to promote the Stevia plant in the

country.

• Rwandair has been ranked among the safest airlines

globally by an Australian based rating website, airlin-

eratings.com, scoring five points out of seven points.

• The recently issued Rwf 15 billion Treasury bond

by the Central Bank was oversubscribed by 106 per

cent. Of the 62 applications the National Bank of

Rwanda (BNR) received for the three-year Treasury

Bond, 39 were individuals and Savings and Credit

Cooperatives (Saccos), representing 2.41 per cent of

the total amount offered.

• The Government has revised the 2014/2015 Budget

Estimates upwards by Rwf6.5 billion to Rwf1759.6 bil-

lion as its implementation entered the second part of

the financial year. In the revised figures, the govern-

ment will borrow more money to fund development

projects that would otherwise stall due to delays in

disbursement of external funding.

• The Rwanda Revenue Authority (RRA) has adopted a

new approach of door-to-door registration of taxpay-

ers, which is expected to enhance efficiency and sig-

nificantly ease revenue collection and administration.

• Bank of Kigali (BK) net profit rose by 23.5 per cent

last year. The bank’s net interest income grew by

11.5 per cent, from Rwf35.2 billion to Rwf39.3 billion,

while net non-interest income was at Rwf18.9 billion,

Rwanda


BusinessRwanda

up by two per cent, from about Rwf18.5 billion, mainly driven by an increase in loans, foreign exchange-related income and net fee and commission income.

• The Energy Development Corporation Limited (EDCL) has brought in a new Managing Director, Emmanuel Kamanzi taking on from the outgoing MD Robert Nyamvumba who will

go to the Ministry of Infrastructure as the Energy Division Manager.

• Kenyan business leaders will soon start having structured round-table meetings with Rwandan President Paul Kagame to discuss policy matters that will improve the region’s busi-

ness environment.

• Airtel Rwanda and IHS, Africa’s leading independent mobile telecommunications infrastructure provider, have finalised a takeover deal of the telecom firm’s 200 towers country-

wide, a move is expected to improve the telecom’s service delivery and ensure affordable rates for customers.

• The Rwanda Revenue Authority (RRA) has announced that it registered Rfw 411.5 billion in tax collection during the first semester of the 2014-2015 fiscal year. The Commissioner

General of RRA, Richard Tusabe, said this represents 95.1% of the target for the period from July to December, which was Rfw 432.7 billion.


Politics

• The Rwandan government has begun attaching

abandoned properties of genocide suspects, includ-

ing those still on the run or convicted in absentia.

The move is aimed at ensuring that the properties

are properly managed or sold off to so that owners

do not benefit from them and victims are compen-

sated.

• The Norwegian Borgarting Court of appeal upheld

a maximum sentence for Sadi Bugingo, who was

in February 2013 sentenced to 21 years in jail for

his role in the 1994 Genocide against the Tutsi that

claimed over a million lives.

• The Ugandan authorities extradited to Rwanda evan-

gelist, Jean-Paul Birindabagabo sought by his country

for participation in the 1994 genocide. The evangelist

is on the list of people sought by international police

organization Interpol.

• Rwanda’s dominant ruling party Rwanda Patriotic

Front party has started laying the groundwork to

mobilise citizens countrywide to demand a third

term for President Paul Kagame whose term in office

expires in 2017.

• The High Court in Kigali sentenced popular Rwandan

musician Kizito Mihigo to 10 years in prison after he

was found guilty of conspiracy to murder or harm

President Paul Kagame and other top leaders of the

country.

• Rwanda and the Democratic Republic of Congo are

inching closer to reaching a deal to send home ex-

combants of the new defunct M23 rebel group who

have been living in internment camps in Rwanda’s

Eastern and Western Provinces.

• President Paul Kagame appointed Julienne Uwacu

as the Minister for Sports and Culture, replacing

Joseph Habineza. The appointment was announced

in a brief communiqué signed by the Prime Minister,

Anastase Murekezi..

• According to a report titled “Decentralisation and

Human Development: Accelerating Socio-economic

Transformation and Sustaining Accountable Gover-

nance” Decentralisation and citizen’s participation

in decision making are responsible for improved

wellbeing of the population.

• Members of the of parliamentary Public Accounts

Committee (PAC) have begun a follow-up exercise in

selected public entities to check on the implemen-

tation of resolutions adopted by the House during

the analysis of the 2012/2013 report of the Auditor-

General.

Rwanda


BusinessBurundi

• The World Bank Group’s Board of Executive Directors approved a US$25 million International Development Association (IDA)* grant to support the Government of Burundi’s

program to create jobs, improve its business environment and increase diversification in promising growth sectors such as coffee and mining through private sector-led economic

growth.

• Burundi Revenue Authority (OBR) revenue collection in 2014 increased by 16.8% compared to the collection of 2013. According to temporary results released by Burundi Revenue

Authority (OBR), show that it had collected BIF 63.5 billion in December 2014, an amount which is less by BIF 0.7 billion compared to the forecasts for the month, recording a

decrease of 1.1%.

• The Burundi Federal Chamber of Commerce and Industry has signed a financing agreement to receive $450,470 from TradeMark East Africa to enhance the participation of Bu-

rundi’s private sector in formulation and implementation of policies.


Politics

• The East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA) jointly launched Round-Tables for Consolidating Regional Stability through

Peaceful Elections in the Republic of Burundi. Themed Peaceful Elections in Burundi for Regional Integration, the COMESA-EAC Roundtables are joint dialogue initiatives/activities

geared towards promoting a peaceful environment for elections, prevent elections-related violent conflict and support a smooth transition during and after the 2015 elections in

Burundi.

• Former Prime Minister, Justice Joseph Warioba, is among officials who will make up a team of East African Community observers of the Burundi general elections to be held be-

tween May and June, this year.

• An alleged plan by President Pierre Nkurunziza’s allies to hand him a third term in office office has met fresh opposition after 2 civil society organisations including that of eminent

persons and that of elders signed a petition against it.

• The Court of Appeal in the Burundian capital, Bujumbura, ordered the release on bail of the well-known journalist Bob Rugurika. Rugurika, director of Radio publique africaine

(RPA), was arrested on January 20, 2015, after his station broadcasted a series of investigative reports on the September 2014 murder of three Italian nuns in Burundi.

• Thousands of Burundians took part in a government-backed rally “for peace”, where speakers took aim at the opposition, civil groups and the media, accusing them of leading the

country towards war.

Burundi

• The East African

• The New Times

• Business Daily

• Daily Nation

• East Africa Business Week

• The Observer

• CIO East Africa

• Tanzania Daily News

• Rwanda Focus

• Yahoo News

Source of content

SAMUEL KARANJAManaging Director

H+K Strategies Kenya

[email protected] + 254 20 444 0822/3/6/9/31

M + 254 734 755 633

Hill+Knowlton Strategies Riverside Green Offices

Baobab Suite - 1st Floor, Riverside DriveP.O. Box 34537 00100 GPO

Nairobi, Kenyahkstrategies.com

JOSEPH KANYAMUNYUCountry Manager

H+K Strategies Uganda

[email protected]: + 256 752 601002

Kalamu House 3rd floor Plot 1B Kiira Road

the east african digest · 2015-04-22 · the east african digest 2015, volume 1 & 2...

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