201609021 xnews

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weDnesDay, sePTeMBeR 21, 2016 | www.x254.co

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DON TAKES OVER AT MOI VARSITY AMID PROTESTS

EDUCATION CABINET SECRETARY FRED MATIANG’I HAS DEFENDED HIS APPOINTMENT OF PROF LABAN AYIRO TO ACT AS THE INSTITUTION’S VIOCE CHANCELLOR SAYING HE ACTED WITHIN THE LAW

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NEWS

GUARDIOLA VOWS TO KEEP YAYA TOURE OUT OF SQUAD UNTIL PLAYER’S AGENT APOLOGISES

MOURINHO SEEKING REDEMPTION IN LEAGUE CUP AS UNITED FACE NORTHAMPTON TOWN

Cord leaders chose to go Jubilee route

Story on Page 2

CITY NURSES IN UNHEALTHY DEMO:Nairobi Governor Evans Kidero prepares to address city nurses who were demonstrationg outside City Hall demanding their arrears of six months. Dr Kidero promised to have the medics paid all their dues by Friday this week.

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NEWS

Cord closes in on registration to become a political party WEDNESDAY SEPTEMBER 21, 2016

Senators Jhnson Muthama of Machakos (left) and Siaya’s James Orengo when they addressed the press at parliament buildings today on Cord’s move to become a political party. They said plans are now at an advanced stage.

The registration of the Coalition for Reforms and Democracy (CORD) as a political party is at an advanced stage, Machakos senator Johnson Muthama revealed today. Muthama who addressed a press conference at parliament buildings today, said the coalition will emulate the unity fostered by Jubilee Party. Jubilee merged all its 13 affiliate parties into one about two weeks ago and Cord now wants to take the same route according to Muthama. “We are concerned and grateful for what Jubilee is doing to unite Kenyans through the formation of Jubilee party encompassing 13 other parties. We want to follow the same route as Cord,” Muthama who was flanked by Siaya senator James Orengo said. Orengo said the coalition will field one candidate in all elective positions but will carry out joint nominations. “In the ballot we will only have one candidate nominated by Cord. The candidates of the three affiliate parties will fight it out in the primaries and then we only present one for the general elections,” Orengo explained. He said the coalition is careful this time

not to lose out in any elective position over fielding of different candidates as witnessed in the 2013 general elections. It is widely believed that ODM, Wiper and Fork-Kenya collectively lost some seats in 2013 because they fielded their own candidates who ended up dividing the votes that belonged to the Cord coalition. “What we must state and emphasize is that we are not going to repeat the mistakes we did in 2013 general elections,” Orengo said. There announcement came barely two days after Cord co-principal Kalonzo Musyoka called on his fellow principals to consider merging the parties into one big political outfit. Yesterday, ODM threw its weight behind the proposal and Ford Kenya has today joined the fray. Kakamega Senator who was last week installed as Ford Kenya’s Deputy party leader Boni Khalwale said the Cord should be registered as a corporate party and its three affiliates; Ford Kenya, ODM and Wiper Party be allowed to operate as independent parties. Khalwale said the registration of Cord as a party will boost the coalition’s

chances of clinching power in the next general elections. He however said the coalition will not go the Jubilee way where all affiliate parties were dissolved. “We will not dissolve the affiliate parties, CORD will be a corporate party and the three affiliate parties to remain independent under it,” Khalwale said at another press conference held at Parliament buildings today. Dr Khalwale was with his Nyamira counterpart Okong’o Mong’are. Khalwale also called for joint nominations within Cord except in Nairobi County where he said all the three parties should be allowed to field their candidates in order to boost their chances of clinching more seats. “No community can claim to own Nairobi and therefore our analyst have pointed to us out that if the three parties are allowed to field candidates in all the elective position then we will comfortably win 14 out of 17 seats in Nairobi County. He said the joint nomination will help the Coalition’s supporters to come out in large numbers and vote for Cord’s presidential flagbearer. The senator said Ford Kenya will

support any candidate nominated in a free and fair nomination saying unity of Cord is more important ahead of the elections. He also revealed that the committee of experts tasked with coming up with rules for identifying Cord’s flagbearer is at advanced stage and an announcement will be made soon. “In the new MoU that will come out, the committee of experts will also clearly spell out what happens to the third coprincipal after elections,” Khalwale said In his earlier proposal, Kalonzo hinted that Cord would be modelled along the lines of National Rainbow Coalition (NARC) of 2002 where political parties came together under the NARC umbrella without losing their individual identities. He said he has discussed the idea with ODM leader Raila Odinga and Ford Kenya’s Moses Wetangula adding that there was plenty of goodwill. CORD leader Raila Odinga has also said that he supports the proposal by his Wiper counterpart Kalonzo Musyoka for joint nominations between the parties forming the coalition. @sam_x254

Ayiro takes over at Moi Varsity despite local leaders protests Professor Laban Ayiro has today taken over as the Vice Chancellor of Moi University despite yesterday’s protest by local leaders against his appointment. Prof Ayiro was appointed to serve in an acting capacity at the Eldoret based institution following the retirement of former VC prof Richard Mibey whom ten-year term ended last week. But locals led by Uasin Gishu Governor Jackson Mandago and his Elgeyo Marakwet counterpart Alex Tolgos yesterday lead local leaders and residents in demonstrations at the institution to oppose Prof Ayiro’s appointment. Instead, they wanted the position given to Prof Isaac Kosgey who they argued hailed from the region. Education Cabinet Secretary Fred Matiang’i appointed Prof Ayiro to act so as to help the institution conduct its 32nd graduation scheduled for Friday this week. Dr Matiangi has defended the appointment saying he acted within the law. And today, Prof Ayiro took over the reins of leadership of the university from his predecessor Richard Mibey at a ceremony held at the varsity’s main campus in Kesses. He expressed optimism as he took over the position. “I thank God for the opportunity to serve this university even as I acknowledge that the undertaking is far beyond my talent,” Prof Ayiro said. He and his predecessor however made no mention of the saga that has ensued following Monday’s announcement. Prof Ayiro was until his appointment, the acting Deputy Vice-Chancellor in charge of planning at the institution. The handing over ceremony took place in the presence of the university’s council and senate. It now remains to be seen whether regional leaders who have vowed to disrupt Friday’s graduation ceremony if the appointment is not revoked will make good their threat. Both Mandago and Tolgos termed Prof Ayiro an ‘outsider’ and demanded that his appointment be revoked and instead Prof Isaac Kosgey, who topped the VC’s recruitment exercise, be installed as the institution’s new head. “When he went for the interview at Egerton, he emerged in the second positon while on coming to Moi University he was number one. We hold that there will be no graduation without Prof Kosgey said,” Mandago said. @harrison_x254


NEWS 3

NYS will lose more millions, Mutahi Ngunyi warns MPs

Consultant Mutahi Ngunyi has warned that the National Youth Service will lose more money if a proper restructuring is not done at the agency. Ngunyi raised the alarm yesterday saying that his advice to former Devolution Cabinet Secretary Anne Waiguru on the restructuring of the procurement department within the ministry was ignored. “The Sh791million the country lost in the NYS saga is just a picnic in a Sunday school, we are set to lose billions of shillings within that ministry,” Ngunyi told the National Assembly’s Public Accounts Committee. The consultant said that several individuals that he recommended to be sacked within the procurement department were temporarily suspended and he has learnt that they have been quietly reinstated. Ngunyi said the individuals whom he did not name are back in office and are regrouping and soon more billions will be lost in the ministry. “Corruption does not fight back, it corrupts back. I can assure you that the cartels have re-grouped and are back within the ministry and it is just a matter of time before they siphoned more money from NYS,” he warned. He narrated to the MPs how he was silenced by Ms Waiguru and officials within the ministry of Interior and National Coordination when he raised issues of corruption at NYS at the initial stages. Ngunyi said Waiguru bluntly told him that his work is not to fight corruption

WEDNESDAY, SEPTEMBER 21, 2016

Consulting House boss Mutahi Ngunyi when he appeared before MPs yesterday. PHOTO: Capital FM

as there are agencies tasked to do that. “Your work is not to fight corruption, do your work and leave the rest to the relevant agencies,” he claimed to have been told by the former Cabinet Secretary for Devolution. He was hard pressed to explain why he did not come out early to tell the public about the outright theft at NYS then. “Why did you have to wait until after one and half year later to come out about this? Don’t you think you have let Kenyans down,” Suba MP John Mbadi asked. “If indeed you are a patriotic Kenyan, don’t you think public interest supersedes oath of secrecy and you ought to have alerted the country about the theft? Committee chairman and Rarieda MP Nicholas Gumbo also prodded.

EACC yet to investigate State official in NYS saga A state official who is being investigated over the loss of NYS millions is still yet to be grilled by the Ethics and Anti-Corruption Commission. The anti-graft agency says summons for Hassan Noor Hassan, the SecretaryHarrison in charge of Administration at the Devolution Ministry still stands even after he failed to present himself for grilling yesterday. A letter from the commission dispatched to him shows that he is required to shed light on procurement of consultancy services that are under investigation. The letter from EACC stated that he was “record a statement on alleged procurement irregularities in the procurement of consultancy services for user support services and conduct of sensitization campaign to enhance access to 30% reservation of government procurement opportunities by the officials of the devolution ministry.” “The summonses are valid and we expect him to come to the commission at a later date,” an EACC official said. The investigations cover the 2014/15 financial year. The Devolution ministry has been under investigation for the loss of hundreds of millions of shillings, including the Sh791 million that led the resignation of Anne Waiguru who was in charge of the ministry. www.capitalfm.co.ke

But he explained that he was under oath of secrecy and that he could not breach the contract he had signed. “I am a patriotic citizen that’s why I severally told the Cabinet Secretary that everything is not right at NYS but I was under secrecy of oath and could not go public then and besides I was told it was not my work to fight corruption,” Ngunyi told the committee. “My work was just to advice but on several occasions my advice was ignored I couldn’t do anything about it,” he added. He urged the committee to invite him for more sessions so that he can divulge more details about the NYS. “I was at the centre of everything as it was my firm that was contracted to carry out the restructuring,” Ngunyi said. @sam_x254

Mudavadi in Court

Amani National Coalition leader Musalia Mudavadi in court where he appeared to testify in the Anglo Leasing case against Kisii Senator Chris Obure.


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NEWS

Global pledge to stamp out superbugs WEDNESDAY SEPTEMBER 21, 2016

The 193 countries of the United Nations are to sign a landmark declaration to rid the world of drug-resistant infections or “superbugs”. Six years in the making, the international commitment could prevent 700,000 deaths a year, say experts. It is the fourth time a UN declaration has been reached on a health issue - following HIV in 2001, noncommunicable diseases in 2011 and Ebola in 2013. The signatories now have two years to report back with an action plan. Experts say treatment-resistant infections pose one of the biggest known threats to humanity today. Without urgent action, it is conceivable that simple infections could soon become entirely untreatable with existing drugs. The problem has been caused by overuse of antimicrobial medicines for humans, animals and agriculture. Repeated exposure allows bacteria and other infections, including HIV and malaria, to learn how to dodge these treatments by mutating and evolving. Unless new effective treatments are found, routine medical procedures such as hip operations and Caesarean sections could become too dangerous to

perform. As such, the nations have committed to develop surveillance and regulatory systems on the use and sales of antimicrobial medicines for humans and animals. They will also encourage innovative ways to develop new antibiotics, and improve rapid diagnostics. Educate health professionals and the public on how to prevent drug resistant infections is third resolution they made. The UK has been at the forefront of a campaign to get global action on superbugs, pledging £369m (about Sh48 billion) to international antimicrobial resistance (AMR) programmes in the past two years. The signatories at the United Nations General Assembly in New York have agreed to pool funding, already totalling about $790m (£600m). The UK’s chief medical officer, Prof Dame Sally Davies, said: “Drugresistant infections are firmly on the global agenda, but now the real work begins. “We need governments, the pharmaceutical industry, health professionals and the agricultural sector to follow through on their commitments to save modern medicine.”

United Nations Secretary General Ban Ki-moon when he opened the General Debate of the 71st Session of the United Nations General Assembly at UN headquarters in New York, New York, USA, yesterday. Members have agreed to a declaration to rid the world of drug-resistant infections. PHOTO: JASON SZENES/EPA

US blames Russia for Syria aid convoy attack

LAND DISPUTES: Tana River Governor Hussein Dado when he addressed the press at the Council of Governors offices in Nairobi today. Mr Dado wants Tana and Athi River Development Authority (TARDA) to surrender some 25,875 hectares of community land he claims was irregularly allocated to the state corporation. He said an environment court sitting in Malindi had issued a permanent injunction restraining TARDA, its servants, employees, agents or contractors from dealing in the suit. And he now wants the state agency to abide by the court decision. “Noting that Agriculture is fully devolved, and the community land Act 2016 has been enacted, I want to call upon other agencies that are illegally occupying community land to surrender those parcels to the county governments without undue delay,” he said.

The US has said it holds Russia responsible for a deadly attack on an aid convoy near the Syrian city of Aleppo on Monday. The White House has called it an “enormous humanitarian tragedy”. Meanwhile, US officials have told the BBC that two Russian war planes were responsible for the attack. Russia strongly denies involvement of its own or Syrian planes, and says the incident was caused by fire on the ground and not by an air strike. “There are no craters and the exterior of the vehicles do not have the kind of damage consistent with blasts caused by bombs dropped from the air,” a statement from the defence ministry said. And the country’s foreign ministry spokeswoman said the

US government had “no facts” to support its claim, adding: “We have nothing to do with this situation.” Separately, an air strike hit a medical centre near Aleppo on Tuesday night local time, killing four medics working for the Union of Medical Care and Relief Organizations (UOSSM), the group said. The attack on the rebel-held town of Khan Touman also killed at least nine rebel fighters and was carried out by either Syrian or Russian warplanes, UK-based monitoring group the Syrian Observatory for Human Rights said. The rebels were from Jaish alFatah, an Islamist group not officially part of the Westernbacked alliance but one that works alongside the Free Syrian Army, correspondents say.


NEWS 5 WEDNESDAY, SEPTEMBER 21, 2016

Morning newspaper summaries ODM wants by-elections Raila party to kick out MPs Raila whips CORD MPs for defectors: ODM wants rebels who back Uhuru: The ODM who defected to Uhuru: who defected to the Jubilee Party to walk the talk of their new heart-felt allegiance and resign or get kicked out of the opposition. They should lose their seats and by-elections held to replace them, it says. The party has threatened to expel 13 elected members who decamped but have refused to resign. Most say they won’t quit the party they longer believe in. That would mean losing their lucrative seats in Parliament and saying goodbye to all those allowances, foreign trips.

disciplinary committee has recommended the expulsion of 13 members who have defected to Jubilee Party. The team has accused the elected leaders of violating the law and the party’s constitution. Among those that the party wants kicked out are two governors, one deputy governor, 10 MPs and MCAs across the country.Committee chairman Fred Athuok on Tuesday said his team had given the green light to the party’s National Executive Council to expel the leaders.

ODM wants 13 governors and MPs who recently defected to Jubilee Party stripped of their party membership, signalling a longdrawn out battle for political survival of the rebels. Raila Odinga’s party activated the disciplinary mechanism that could culminate in the targeted party rebels losing their seats if their names are struck off the party’s register. ODM, Wiper Democratic Movement and Ford Kenya have scoffed at25 of their members whohave switched allegiance.

Shock for banks as CBK Government to hire 10000 Graft in embassies cuts rates further: Banks were school heads: More than 10,000 exposed: Kenyan embassy staff in the yesterday handed another shocker after Central Bank’s policy marking organs cut lending rates further, a week after the interest capping law became effective. The CBK’s Monetary Policy Committee cut the base lending rate by 50 basis points, automatically reducing the interest rates further to 14 per cent on account of the new banking law. “This is a complete shock, I did not expect this, but rather thought we would be given time to stabilise after the new law,” said a senior banker.

principals, headmasters and deputies in primary, secondary and tertiary institutions will be hired. Teachers Service Commission CEO Nancy Macharia said those to be hired would be promoted to job groups K, M and N. “A total of 500 P1 teachers with Bachelor of Education degrees will be promoted to Job Group K, 5,500 to Job Group M and 4,000 to Job Group N,” Mrs Macharia said in an advert. The positions have previously been filled through direct appointments.

US lost 2,000 visa stickers in one year that could have been sold in the black market in the latest scandal to rock Kenyan missions abroad. In his latest audit report on the Ministry of Foreign Affairs, Auditor General Edward Ouko says 5,000 single journey visa stickers were issued to the Kenyan Embassy in Washington, but only 3,000 were received by the mission. The unexplained loss of the visa stickers raises the possibility they could have fallen into the wrong hands.

Two governors, MPs storm Crisis as 480 doctors on North Rift leaders’ threat Moi University over new strike: Nearly 480 doctors – in Nairobi, over new Moi University and Nakuru – are on strike VC: A section of North Rift leaders ‘outsider’ VC Ayiro: Two Migori, demanding better working conditions, governors and several MPs stormed Moi University on Tuesday to stop newly appointed acting VC Laban Ayiro from taking over. Education CS Fred Matiang’i appointed Ayiro to replace outgoing vice chancellor Richard Mibey whose term ended on Monday. Ayiro, who is acting deputy vice-chancellor in charge of planning, is to act for three months before the substantive VC is appointed.

salaries and promotions. The strikes have pushed desperate patients to seek services in national referral hospitals or private ones. There are about 6,000 registered doctors. Of these, 4,500 work in the public sector, about 900 in the Health ministry and about 3,600 in counties. About 253 doctors in Nairobi have not been paid for the last six months.

Tuesday stormed Moi University main campus premises in Kesses, Eldoret to protest against the appointment of Prof. Laban Ayiro as the institution’s acting Vice Chancellor. Led by Uasin Gishu Governor Jackson Mandago and Elgeyo Marakwet counterpart Alex Tolgos, the leaders vowed to stop the University’s 32nd graduation.

CBK’s rate cut tips the scales in favour of cheaper loans: The Central

Bank of Kenya yesterday cut the base lending rate (CBR) by 50 basis points, signalling a further drop in the cost of loans under the new legal regime that came into force one week ago. The decision, made during the first monetary policy committee meeting held since the capping of interest rates, means the base rate applicable in the pricing of loans now stands at 10 per cent from 10.5 %.

CA denies governors radio broadcasting permits: The Communications

Authority of Kenya (CA) has denied county governments permits to set up radio stations, stirring a fresh storm between Nairobi and the devolved units. The telecoms sector regulator has rejected 20 county government applications seeking FM radio broadcast bands, arguing that broadcasting is not a devolved function.

Bonds issuing banks face thin margins: Banks

that have issued corporate bonds at high rates for on-lending face thin trading margins under the current rate-capping regime. This may mean the institutions could stop issuance of any remaining tranches or sharply cut offered rates going forward. The lenders raised bonds with coupon rates of about 13.6 per cent meaning their margins is less than one per cent once.

Top stories from X News global partners UN agrees to fight ‘the US Sees High Probability How Norway spends its biggest threat to modern That Russians Bombed $882 billion global fund: decades after Norway’s government medicine’: All 193 United Nations Convoy: Russia was probably TWO paid a first deposit into its sovereign-wealth

member states are set to sign a declaration agreeing to combat “the biggest threat to modern medicine” in Wednesday’s highlevel meeting on antibiotic resistance. The agreement was reached just before the general assembly convened to discuss the threat of antibiotic resistance, which is only the fourth health issue to trigger a general assembly meeting. “It’s ironic that such a small thing is causing such an enormous public threat,” said Jeffrey LeJeune, a professor and head of the food animal research program at Ohio State University. “But it is a global health threat that needs a global response.” The declaration routes the global response to superbugs along a similar path as the one used to combat climate change. www.the guardian.com

responsible for the deadly bombing of a United Nations humanitarian aid convoy in Syria, American officials said Tuesday, further shredding what remained of a severely weakened agreement between the United States and Russia aimed at halting the war. Aghast at the attack on Monday night, United Nations officials on Tuesday suspended all aid convoys in Syria, describing the bombing as a possible war crime and a cowardly act. The suspension was announced as the United Nations was convening its annual General Assembly meetings in New York, where the five-yearold Syria war has become the organization’s most anguishing challenge. www.nytimes

fund, the country is learning how to manage a behemoth. The vehicle, which is used to invest abroad the proceeds of Norway’s oil and gas sales, has amassed a bigger fortune than anyone expected, thanks to previous, bumper oil prices. As the direct benefits of oil decline—around 46% of Norway’s expected total haul of oil and gas is gone—the relative importance of the fund will grow. Annual revenues from it now regularly exceed income from oil sales. This week the “Pension Fund Global” was worth Nkr7.3billion ($882 billion), more than double national GDP. No sovereign-wealth fund is bigger (see chart). It owns over 2% of all listed shares in Europe and over 1% globally. www.economist.com

Wells Fargo chief faces lawmakers’ fury over scandal: The head of Wells Fargo

came under stinging attack in Congress on Tuesday for denying that the US bank’s phantom accounts scandal was a coordinated “scam” and refusing to promise to claw back executive compensation. John Stumpf, the bank’s chairman and chief executive, was summoned to testify in Washington after regulators found that bank staff created as many as 2m fee-generating bank accounts and credit cards without consumers’ knowledge. Senator Elizabeth Warren, a liberal firebrand, told Mr Stumpf he should be “criminally investigated” after castigating him for not resigning or returning “one nickel” of his multimillion-dollar annual compensation. www.ft.com

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NEWS WEDNESDAY, SEPTEMBER 21, 2016

NEWS PICTORIAL President Barack Obama (left) raises a toast to the United Nations Secretary-General Ban-Ki moon (right) at a luncheon for world leaders on the sidelines of the General Debate of the 71st Session of the United Nations General Assembly at UN headquarters in New York, USA, yesterday. PHOTO: PETER FOLEY/EPA

Nvidia president and CEO Jen-Hsun Huang holds a HTC VR glasses set during the GPU technology conference in Taipei, Taiwan, early today. Industry leaders are expected to discuss new developments in Artificial Intelligence (AI) and its impact on the future of the technology industry during the conference. PHOTO: RITCHIE B. TONGO/EPA Israeli army soldiers arrest a Palestinian following scuffling during raids on houses in the West Bank city of Hebron, on September 20, 2016. Clashes started after the most recent case of a Palestinian assailant being killed by the Israeli army on Tuesday. PHOTO: ABED AL HASHLAMOUN/EPA

file picture dated 28 March 2016 shows former Brazilian President Luiz Inacio Lula da Silva speaking during an event in Sao Paulo, Brazil. Reports in Brazil say the former Brazilian President has been formally indicted by Judge Sergio Moro on corruption charges in connection with the so-called ‘Operation Lava Jato’ case involving state-run energy company Petrobras. PHOTO: SEBASTIAO MOREIRA/EPA


xnews | WEDNESday, SEPTEMBER 21, 2016 | www.x254.co

BUSINESS

CBK EXCHANGE RATES

Kenya approves Economic Partnership Agreement with EU Kenya’s National Assembly yesterday ratified the Economic Partnership Agreement (EPA) with European Union (EU) ahead of the September 30 2016 deadline. The move was reached after a special sitting dubbed the ‘Parliamentary Committee on Trade, Planning and Finance’ had earlier urged fellow parliamentarians to see that the European Union EPA agreement is ratified by Tuesday. The move would see Kenya secure access to the over Sh125 billion EU export market, safeguard over 4 million jobs as well as secure investments worth over Sh2 billion in floriculture, horticulture, agro-processed products, fisheries, among others. However, only Kenya and Rwanda have signed the deal while other East Africa member state including Tanzania, Burundi, Uganda and South Sudan are still reluctant to sign the agreement. National Assembly Majority Leader Aden Duale says failure to sign the deal by other EA countries is an economic blow to Kenya as the country might be removed from a preferential list and put on a general system, a move that would see all Kenya’s exports to the EU attract a tax of between 5 and 22 per cent. “This means Kenya will be removed from the preferential list and put on general systems which will make all exports to the EU market attract tax of between five and 22 per cent,” said Duale. Failure to ratify the EPA would have

subjected Kenya’s imports to tariffs effective from January 18, 2017, he added. He however confirmed that they would be implementing the agreement on a provisional basis once all other EA member states have signed the deal. The Majority Leader confirmed that the National Assembly is working to convince other remaining member states to sign the deal before the

EU market are duty free under this arrangement. The main objective of the preferential trade regime was to promote industrial development in the ACP countries. However, the preferential trade regime did not achieve its overall objective, since the share of Kenya’s exports in the EU market remained very low and scarcely diversified,” said Langat. @enock_x254

National Assembly Majority Leader Aden Duale speaking at a past event.

KQ suffers new setback as safety standards probe begins National Carrier Kenya Airways (KQ) has suffered a new setback after KQ flight 415 from Entebbe burst its tires on landing at the Jomo Kenyatta International Airport (JKIA) on Monday, triggering a safety standards probe. According to experts, an aircraft tire must withstand a wide range of operational conditions. When on the ground, it must support the weight of the aircraft. It must also provide a stable, cushioned ride while resisting heat generation, abrasion and wear. The national carrier has had a series of mishaps after it announced a full year loss of Sh26 billion. Whilst the carrier is currently looking to a turnaround plan to bring it back to profitability, flight delays and cancellations, mechanical problems on planes, resignations of staff among other internal wrangles have dominated the atmosphere at the

deadline despite Tanzania President Pombe Magufuli asking for more time to analyse the whole agreement. House Finance Committee Chairman Benjamin Langat noted that the agreement was key to protecting the country from losses and providing better trade deals between Kenya and the 28 member states in the EU, including the UK. “Most of Kenya’s exports entered the

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once-lucrative institution. In a statement after the incident, the carrier assured its customers that no injuries were reported and that all was well, but the Kenya Airlines Pilots Association (KALPA) has noted that the department charged with the maintenance of the airline’s fleet is no longer doing its work and may be understaffed after a series of resignations from the department. Just last month, a Kenya Airways flight leaving Johannesburg for Nairobi developed technical problems on take-off and was forced to abandon the trip inconveniencing a number of passengers that included businesspeople. The Pilots Association has, in the recent past, written to the country’s civil aviation authority to complain on the incompetence of the carrier’s technical department. @kevin_x254

MEAN 101.2856 132.1733 113.1772 7.2377 33.3711 21.5431

BUY SELL 101.1856 101.3856 132.0322 132.3144 113.0583 113.2961 7.2254 7.2501 33.2888 33.4517 21.4725 21.6138

Reprieve for borrowers as CBK lowers CBR to 10pc

The Central Bank of Kenya has reviewed the Central Bank Rate (CBR) on interest to 10 per cent down from the previous 10.5 per cent just days after the effective date of the new law that puts a cap on interest rates. The move has been seen as a boon for borrowers who will pay slightly lower interest fees on loans even though banks are still on the verge of adjusting to the new rates. CBK Governor Dr. Patrick Njoroge, while announcing the move, indicated that the Private sector credit supply had declined and as such it was important to lower the rates further. The new rate has triggered speculations on whether the Central Bank of Kenya (CBK) would go lower to a single digit interest rate. “The committee remains concerned about the persistent slowdown in private sector credit growth. The MPC therefore has decided to lower the CBR by 50 basis points to 10 per cent,” Dr Njoroge said in a statement. Data obtained from the CBK reveals that at the end of July 2016, private sector credit stood at Sh2 trillion growing at an average rate of seven per cent year on year. Dr Njoroge is today expected to hold a briefing to shed light on the decision to lower the rate further and give clarity on the implementation. Commercial banks had expected interest rates to be pegged on the Kenya Banks’ Reference Rate (KBRR) as the CBR was subject to external factors such as inflation and currency volatility. The new capping law will now see borrowers get loans at a maximum interest rate of 14 per cent. @kevin_x254

Finance Bill 2016 to lower cost of living, promote use of clean energy The Finance Bill 2016, which was signed into law by President Uhuru Kenyatta, is projected to triple the number of Kenyans using clean energy while reducing the cost of living as the law seeks to waive taxes on liquefied petroleum gas (LPG) once in force. Recent data reveals that more than 87 per cent of Kenyans currently use solid fuels for cooking while a mere 5 per cent use kerosene for cooking, which are all forms of unclean energy according to international standards. However, the new law would halve the number of Kenyans using solid fuel for cooking replacing it with LPG gas as it will be easily affordable and cheaply refilled. In Kenya, LPG is commonly used in urban areas, with Nairobi accounting for 60 per cent of the market, followed

by Mombasa, which accounts for only 15 per cent while the rest is scattered around other growing urban centres with only one per cent usage in rural areas. Experts attribute this to low availability of firewood in urban centres, and availability of LPG distribution due to the greater population density. However, specialists argue that for LPG to reach majority of Kenyans, including those in rural areas, the country has to bring down the cost, create awareness among consumers and increase distribution efficiency. The Energy Act 2006 stipulates that persons distributing LPG in Kenya must do so in accordance to the terms and conditions of a valid license issued by the Energy Regulatory Commission (ERC) where it requires a person who

wishes to conduct wholesale LPG business or filling to apply for a license from the regulator. Other amendments in the Finance Act 2016 include the removal of excise duty on locally-assembled motor vehicles and motor cycles to promote assembly, tax amnesty for taxpayers who have investments outside Kenya to reinvest back home and VAT exemption for park entry fees and tour operator services to promote tourism. Others include VAT Exemption for inputs for manufacture of animal feeds, aimed at reducing the cost of the feeds and reduction of income tax corporate tax rate from 30 per cent to 15 per cent for investors who put up more than 400 residential housing units to promote housing development. @enock_x254


8

Motoring Deals

Cummins, C&G announce East Africa joint venture, operations set for 2017 WEDNESDAY, SEPTEMBER 21, 2016

Vehicle distributor Car and General (C&G) and manufacturing company Cummins have signed the final agreements for the formation of a 50/50, joint venture partnership to consolidate the sales, service and support of Cummins products in East Africa. The joint venture company will operate under the name of Cummins C&G Holdings Limited. Subject to certain regulatory and procedural approvals, the new joint venture will begin operations in early 2017.

The joint venture will take over the full-line distributor business from C&G, Cummins’ current distributor in East Africa. The territory comprises 11 countries namely: Kenya, Tanzania, Uganda, Ethiopia, Djibouti, Seychelles, South Sudan, Rwanda, Somalia, Eritrea and Burundi. Car & General secured its first Cummins distribution agreement in 2006 and reached $30 million (Sh3 billion) in regional revenues in 2015. Commenting on the partnership, Gino

Butera, MD and VP for Cummins Africa said: “We are excited to partner with C&G. Over the past 10 years, they have grown the Cummins distribution business in East Africa, gaining over 15 per cent market share in the genset market in Kenya, Tanzania and Uganda. We see untapped growth opportunities in East Africa and are looking forward to expanding Cummins’ customer support in the region,” said Butera. East Africa, one of the fastest growing regions in the world with an expected

aggregate GDP growth rate of 6 per cent over the next five years, represents a strategic region for Cummins in Africa. “We strongly believe that with our brand strength and C&G’s market knowledge and relationships, we can grow our business by improving our service and support and pushing resources closer to our local and global customers in East Africa,” said Butera. “We view this joint venture partnership as a critical milestone in the close business relationship we have

developed with Cummins over the years. We believe our core business and community values are aligned, and see this partnership as a unique opportunity to solidify market leadership in our existing territories and capture market share where we are still building our presence. This new partnership is truly a win-win proposition – for Cummins, for us and for our customers,” said Car and General MD, Vijay Gidoomal. @Dennis_x254

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10

BUSINESS

E-commerce revolution must include SMEs, says Dr Kituyi WEDNESDAY SEPTEMBER 21, 2016

Entrepreneurs and small business must be included in the e-commerce revolution, UNCTAD Secretary General Dr Mukhisa Kituyi has said. Dr Kituyi hs stated that the inclusion of entrepreneurs and small businesses in e-commerce would create employment opportunities thus improving the livelihoods of a majority of marginalized people. “With the global economy now in its sixth sluggish year of growth, many are hoping that e-commerce can generate the jobs and livelihoods that more traditional work has been unable to provide,” said Dr Kituyi ahead of a meeting on small business and e-Trade taking place in New York. Last year, the global market for electronic commerce was worth around $22.1 trillion, up 38 per cent from 2013. “E-commerce is a train that has left the station and is quickly gathering speed,” said the Secretary General. “The challenge is to get as many people aboard this train as possible, so that e-commerce can usefully contribute to inclusive growth,” he added, referring to the Sustainable Development Goals (SDGs) and goal 8 in particular. Dr. Kituyi was speaking ahead of a high-level forum, titled “Empowering SMEs through e-Trade and Investment Facilitation” at the UN Headquarters in New York yesterday. He confirmed that the conversation will look at ways to engage entrepreneurs and small business in the e-trade revolution. “By connecting untapped markets through internet and mobile network platforms, online commerce can allow entrepreneurs and small business to produce and trade goods and services, source inputs, reach customers and clients, and connect to global and regional value chains,” he explained. However, Mukhisa warned that a huge

AUNCTAD Secretary-General, Dr Mukhisa Kituyi. gap is opening up between countries and firms that are able to exploit these opportunities and those that cannot. “Existing platforms and rules for global trade are skewed towards the interests of large corporations, leaving few opportunities for small and mediumsized enterprises,” he lamented. The conversation takes place just

two months after UNCTAD’s work on e-commerce made a significant leap forward with the July launch of the ‘e-Trade for All’ initiative at the UNCTAD 14 Conference recently held in Nairobi. The initiative brings together 15 international organizations and 22 private sector actors together, easing

developing country access to cuttingedge technical assistance and giving donors more options for funding. The initiative also supports the December 2015 call by the UN General Assembly to better use information and communication technology to achieve the SDGs. @enock_x254

Kenya Power named most Socially Innovative Company at Africa Investor Awards Kenya Power emerged top in the innovation category at the justconcluded Africa Investor’s CEO Institutional Investment Summit & Awards 2016. The Awards were organized by Africa Investor (Ai), a leading international investment and communications group, in conjunction with New York based NASDAQ Exchange. Kenya Power’s Managing Director & CEO Dr Ben Chumo received the Award on behalf of the Company. Kenya Power scooped the Most Innovative Ai SRI 50 Company Award for its investment in the Global Partnership on Output-Based Aid (GPOBA) project. Launched in 2014, GPOBA, a World Bank- funded electrification project implemented by Kenya Power, targets low end customers, primarily those living in informal settlements and rural areas. To access the service, customers make a contribution of Sh1,160 per household. So far, more than 1.4 million households have benefitted from the project in various parts of the country. Besides improving the connectivity rate and adding to the company’s customer base, the scheme addresses the perennial problem of electricity theft in informal settlements. Socially, the scheme has been able to address some challenges such as injuries, loss of life and property as a result of illegal and poor connections. It has also provided opportunities for small businesses to emerge and thrive in informal settlements. The project is also a key highlight of the company’s social role to connect the poor to mainstream infrastructure at a lower cost. The annual Africa Investor awards are preceded by sector-focused investment summits that exclusively host influential industry leaders to identify and advance Africa’s investment projects. This year, the summit was held alongside the annual United Nations General Assembly. @enock_x254

Golfers to converge at Kitale Club for inaugural Betway corporate challenge Betway, newest entrant into the Kenyan sports betting scene, will be hosting their inaugural Betway Corporate Challenge at the par 73 Kitale Golf Club on Saturday September, 24. The move is part of the gaming company’s ongoing drive to support and promote sports development across the country. A field of over 100 golfers is expected to attend and participate in what is set to be the first of many golf tournaments Betway intends to stage across various parts of the country. The venue is one of the most scenic golf courses in Kenya and will host a large number of amateur golfers from Kitale who will be joined by their counterparts and competitors from Eldoret, Nandi Bears and Kakamega. Some of the leading players at Kitale are expected to attend including Philip Shiharsy, Zack Nderito, Elisha Mwei and Martin Kiplimo. All attendees will compete for a number

of prizes with awards going to the overall winner, the golfer who hits the longest drive, best junior and best lady. Through this tournament, Betway is hoping to bring together sports enthusiasts and golfers for a friendly challenge as part of their long term plan to support and promote sports development across the country. “As Betway, our inaugural golf tournament aims to provide an atmosphere that is fun, engaging and competitive. More importantly, we want those competing to have fun, interact and network in a relaxed and informal setting, while providing them an opportunity to sharpen their golfing skills,” said Betway country manager Wanja Gikonyo. Since its launch late last year, Betway Kenya has embarked on various initiatives to support sporting activities in different sports disciplines across the country. @kevin_x254


WEDNESDAY, SEPTEMBER 21, 2016

ACCESS topstory

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@christine_x254

IT SEEMS THAT MANY KENYANS PREFER A LARGER THAN LIFE CHARACTER TO A WORKER BEE.

Festival edition

When

President Kenyatta with Nairobi politicians inside a kibanda in the city’s Kenyatta Market.

Mr President

truly gets in touch with the people

O

ur President is a humble man. That was the endgame, or so it seems, of the picture posted online this week of the President and other politicians sat inside a kibanda in the city’s buzzing Kenyatta Market. Famed for its overwhelming numbers of hairdressers and kiosks hawking everything under the sun. Yes, the picture was a little bit unexpected but not necessarily out of character. Last year even a bigger storm was brewed when the President, his motorcade and other dignitaries pulled over on the side of the road in Machakos to buy a soda from an unwitting shopkeeper in an attempt to cool off from the heat that part of the country is particularly notorious for. After reportedly encountering an MP helping himself to a refreshment, the Commander-in-Chief decided to join in on the fun. With the cameras there to document everything as it happened, it was truly a spectacle. Earlier this year both President Uhuru Kenyatta and his Deputy William Ruto exhibited the same show of humility when they visited families in rural areas within the country. The President, while in Kiambu County called on members of a village who had just received electricity from the government. Pictures from that day were stunning, not just because its 2016 and

people are still living without electricity, but the juxtaposition of one of the richest people in the country seated in a little house with a family experiencing indoor lighting for the first time is quite something. Well with all the things that have been written and said about him, you can’t accuse our President of having poor etiquette. Deputy President’s Ruto foray into ‘common man-hood’ went surprisingly smoothly though. Even with his sharp blue suit the DP looked at home as he ate a meal at a local joint in Uasin Gishu, and maybe this move inadvertently highlighted the differences between the two allies. No matter, next year is election year and being ‘in touch’ with the people is not something Kenyans have been known to look for in a leader. It seems that many Kenyans prefer a larger than life character to a worker bee. Charisma seems to tower above everything. Not to say that these instances are not entertaining or even somewhat endearing but that might be the intention. It’s not every country that has the luxury of having a President who could put the glitz and glam aside for a day and that’s what makes Kenya fascinating.

The President with other dignitaries in Machakos buying sodas from a shopkeeper.



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14

SPORT

SPORTBRIEFS

WEDNESDAY, SEPTEMBER 21, 2016

Mourinho seeks Cup redemption

@peter_x254

Arsenal players congratulate goal scorer Lucas Perez after the striker netted his second goal against Nottingham Forest in the League Cup last night. The Gunners won 4-0. PHOTO: COURTESY

Arsenal, Liverpool cruise to Cup wins as Norwich shock Everton A

despite the presence of six County defenders, the latter tiptoed through several challenges and calmly buried the ball into the corner. Four minutes later, Coutinho won the ball in the Derby half and released striker Divork Origi. The Belgian raced behind the defence, and despite shooting from a tight angle, squeezed his shot past Mitchell and into the roof of the net. But similar tales could not be recorded at the Goodison Park where Norwich shocked Everton and an impressive victory at the in-form hosts. Steven Naismith gave the visitors the lead against his former club with a fortuitous finish that looped in after the striker had slipped while shooting. City’s Alex Pritchard cleared an Enner Valencia shot off the line before Josh Murphy scored a decisive second with a superb rising drive from distance. The defeat is Ronald Koeman’s first as Everton manager. The Dutchman made six changes to the team that beat Middlesbrough 3-1 at the weekend to take the Toffees up to second in the Premier League, but his starting XI still had plenty of ability and experience. Only Robbie Brady remained from the Norwich team that beat Nottingham Forest at the weekend, and they were forced on the back foot

rsenal And Liverpool won their third round League Cup ties in convincing fashion last night while Everton and Bournemouth were shocked when they lost to Championship opposition at their respective home grounds. Lucas Pérez scored twice to help Arsenal to a 4-0 win at Nottingham Forest with winger Alex Oxlade-Chamberlain completing the rout in injury time. Midfielder Granit Xhaka had opened the scoring when he rifled in a long range shot that went past Forest keeper Vladimir Stojkovic despite the shot stopped getting a hand to it. Forest defender Michael Mancienne fouled Akpom in the area and new signing Lucas Perez stepped up confidently to score his first Arsenal goal on the hour mark. Then Spaniard then held off his marker and rounded the Nottingham Forest keeper before slotting in his second and Arsenal’s third on the night. At the iPro Stadium, Liverpool romped to a 3-0 victory with Jurgen Klopp’s side overpowering their hosts Derby. Defender Ragna Klavan put the Reds ahead after just 23 minutes when he connected with a Philippe Coutinho corner in the derby box to slot home. After the break, Firmino and Coutinho played a one-two on the edge of Derby’s box, and

for much of the game. However, while the Toffees wasted the chances that came their way Norwich seized theirs, be it through a slice of luck - in the case of Naismith or via the superb execution of Murphy. At the Vitality Stadium, Simon Makienok’s hat-trick saw Championship side Preston beat Bournemouth of the Premier League after extra time. The Danish striker poked home the decisive third goal midway through the second additional period. Makienok had given North End an early lead from inside the area, and then headed an equaliser in the 85th minute. Bournemouth had come from behind to lead 2-1 via Lewis Grabban’s penalty and Dan Gosling’s close-range finish. It was a case of revenge for the Lillywhites, who were knocked out on penalties by the same opposition at the same stage of last year’s competition. Other League Cup matches played last night saw Newcastle exact revenge on Wolverhampton Wanderers them 2-0 after losing to their opponents in the Championship over the weekend. Leeds beat Blackburn Rovers 1-0 while Reading also progressed after a 2-1 victory at Brighton and Hove Albion.

Southampton vs Crystal Palace Wednesday September 21, 2016

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After losing three games in a row, Jose Mourinho will be seeking some redemption against League One side Northampton Town when Manchester United travel to the Sixfields Stadium in East Midlands for their League Cup fourth round tie tonight. United have lost their last three games losing to both Manchester City and Watford in the league either side of last week’s Europa League defeat at Dutch side Fayenoord. Midfielder Michael Carrick is expected to start in his first outing of the season while United will be without full-back Luke Shaw who has a groin tear and striker Anthony Martial who remains a doubt with a head injury. They are joined by midfielder Henrikh Mkhitaryan who has a thigh problem. Northampton Town will be without winger Paul Anderson who is cup-tied having played for Bradford City in an earlier round before joining the Cobblers. At the Liberty Stadium, Swansea full-back Neil Taylor is set to return to the side for their EFL Cup tie against Manchester City. Record signing Borja Baston could make his first start since completing a £15.5m move from Atletico Madrid, and club captain Leon Britton is also likely to feature. City skipper Vincent Kompany could make his first appearance of the season having recovered from a thigh injury while midfielder David Silva remains doubtful with a leg injury. At the St Mary’s, Southampton will be without forward Jay Rodriguez when they host Crystal Palace in the same competition. Rodriguez has a groin problem so fellow striker Charlie Austin, who came off the bench to score the winner against Swansea on Sunday, could start. Crystal Palace midfielder Yohan Cabaye could feature having recovered from a groin problem. Defender James Tomkins is out after picking up a knee injury in Sunday’s 4-1 league win over Stoke. In other matches, West Ham are expected to hand debuts to summer signings Alvaro Arbeloa and Edimilson Fernandes when they host League Two club Accrington. Xherdan Shaqiri could return from injury for Stoke in their tie with Hull. The midfielder has not played since injuring his calf in the first game of the season but has been included in the Potters’ squad. Goalkeeper David Marshall and midfielders James Weir and Markus Henriksen could make their Hull debuts. Ryan Mason, Will Keane and Dieumerci Mbokani are also hoping for first starts of the season. Tottenham host Gilligham while Sunderland travel to QPR. Fulham are at home against Bristol City. All matches start at 9.45pm.


SPORT 15

Guardiola: I won’t pick Yaya Toure for games Manchester City manager Pep Guardiola says he will not pick Yaya Toure until the player’s agent apologises for criticising the decision to leave him out. Toure, 33, has made one appearance for City this season and he was left out of the Champions League squad. His agent, Dimitri Seluk, claimed the midfielder had been “humiliated”, and Guardiola said: “Seluk must apologise. If he doesn’t, he [Toure] won’t play.” But Seluk told BBC Sport: “What do I need to apologise for?” He added: “He should speak to Yaya. Yaya is doing his job “We will see what happens. His contract expires at the end of the season and in January he will be free to go.” Guardiola, who was Barcelona boss when Toure was sold to City in 2010, said of the player: “It was so difficult for me to put him out of the Champions League, so difficult. I know him, I know he’s a good good guy. “But the day after his manager [Seluk] spoke. In that moment Yaya is out. “I cannot accept as a coach, when his player doesn’t play, going to the media to speak and speak and speak.” He said Seluk did not have the “courage” to call him but said Seluk could always apologise via the media. “When that happens Yaya will be part of the group and he will have the same chance to play all the games.” It is understood the first Toure knew of his manager’s stance against playing him was when he announced it at Tuesday’s news conference.

WEDNESDAY, SEPTEMBER 21, 2016

Guardiola was speaking soon after Toure announced his international retirement. Having made his debut for the Ivory Coast in 2004, Toure won 113 international caps, winning the Africa Cup of Nations in 2015. “Writing this note was probably ‘the most difficult match of my life’,” he said in a statement. “After 14 years at the highest level, I’m sure this is the right time for me.” Meanwhile, City captain Vincent Kompany could make his first appearance of the season in tonight’s League Cup third-round tie at Swansea. “He has trained a lot and he will be ready and be part of the group and compete with other central defenders to win his p o s i t i o n ,” s a i d Guardiola.

Manchester City’s Yaya Toure. Manager Pep Guardiola says his agent must apologise before he can be picked for matches. PHOTO: PETER POWELL


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Chelsea’s Cesc Fabregas celebrates after scoring a g a i n s t Leicester at the King Power Stadium last night. Chelsea won the match 4-2. PHOTO:EPA

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Chelsea fight back to beat 10-man Leicester

Cesc Fabregas scored twice in extra time as Chelsea came from two goals down to beat 10man Leicester and reach the EFL Cup fourth round. Shinji Okazaki’s header and instinctive strike put Leicester in control, but Gary Cahill nodded in before the break to reduce the deficit. Cesar Azpilicueta then equalised with a long-range strike before Foxes defender Marcin Wasilewski was sent off. Fabregas’ clipped finish put Chelsea ahead early in the first extra period and his powerful strike two minutes later sealed the win. It had been a pulsating cup tie - particularly in the second half - with chances at both ends but Wasilewski’s dismissal for elbowing Diego Costa ultimately proved costly. Chelsea deserved the win in the end but Claudio Ranieri will perhaps be buoyed by his side’s performance for much of the game, with glimpses of their incisive attacking and compact defending that helped them win the title last season on show. Chelsea have scored in every game this season and their attacking strength came to the fore towards the end of the game. However, their defensive frailties should continue to be a cause for concern for boss Antonio Conte. Only once in their previous 14 games in all competitions have the Blues managed to keep a clean sheet - and they were needlessly exposed in the first half at the King Power stadium. Azpilicueta’s awkward touch when trying to deal with Ahmed Musa’s cross allowed Ozaki to nip in and flick a header over Asmir Begovic, and the Foxes forward then profited from a static backline to score

a second. ]“Chelsea’s decision-making when under pressure was poor,” pundit and former Leicester defender Gerry Taggart observed. “We are talking about basics. Clear the ball first, then ask questions. Some of Chelsea’s decision making was abysmal,” he added. Foxes boss Ranieri said he was satisfied with the performance of his team only cursing the mistake that allowed Cahill to score in the first half. “The key was when we conceded a goal on the last corner of the half, we lost two dangerous men, Luiz and Cahill. In extra time I said stay together and close the space, but Fabregas scored and it was very difficult for us,” he said. The match was a big morale booster for Chelsea hero Cesc Fabregas who has been unable to establish himself under Conte, with the Spanish midfielder restricted to appearances from the bench in the Premier League so far this season. His only two starts for the Italian have come in the EFL Cup - but he was arguably the stand out player for the Blues in this game. The 29-year-old has been criticised for a lack of goals in the past - he scored six last season and five the campaign before - but took both his finishes well against the Foxes and also provided the assist for Cahill’s goal. “I want to win and my choice is done to win. I don’t care what their name is. For me it’s important when I call someone to play and they show me my choice is not wrong,” Contes said after the match before adding; “I am pleased for Cesc because he played a good game, he showed me great commitment in the training sessions. I am satisfied when I see this behavior.”

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