201701011 xnews

weDnesDay, JanUaRy 11, 2017 | www.x254.co

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OBAMA GIVES EMOTIONAL FAREWELL SPEECH DEMOCRACY IS THREATENED WHEN TAKEN FOR GRANTED, OUTGOING AMERICXAN PRESIDENT SAYS IN HIS FINAL ADDRESS TO THE NATION

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NEWS

FIFA BOSS INFANTINO DEFENDS WORLD CUP EXPANSION TO INCLUDE 48 TEAMS

MANCHESTER UNITED AGREE WITH EVERTON FOR SALE OF MIDFIELDER SCHNEIDERLIN

Kidero links Nairobi slum fires to political rivalries

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Uganda leader promotes son

Uganda’s leader Yoweri Museveni has promoted his eldest son to become a special presidential adviser in a reshuffle of army commanders.

Maj Gen Muhoozi Kainerugaba has risen rapidly within the military, fuelling speculation that he is being groomed to become president one day.

Analysts say his new role, working more closely with state house, will broaden his remit and experience.

CONTINUED ON PAGE 4

Nairobi Governor Evans Kidero walks in a corridor between shanties in the sprawling Mathare slums when he visited the scene of an inferno in the area yesterday. Dr Kidero has since linked the fires to political rivalry.

he numerous fire breakouts witnessed across various slums in Nairobi could be politically motivated, Governor Evans Kidero claims.

A total of 597 houses have been razed down in Mabatini and another 600 in neighbouring Hospital ward within Mathare constituency over the last 12 months.

The latest such incident occurred on Monday and claimed the life of a woman in Mathare.

And Dr Kidero who visited the area yesterday called for investigations into the incidences claiming there could be a political hand behind them.

He said some politicians are keen on scaring away opposition supporters from the area claiming that such fires only occur when the country is nearing elections.

“These fires become more frequent when we are approaching the elections period. We know that it is a political ploy to relocate our voters from city to the countryside,” Kidero said.

CONTINUED ON PAGE 2

NEWS

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Kidero now links frequent city slum fires to politics WEDNESDAY JANUARY 11, 2017

From Page 1 He accused some unnamed ‘jubilee politicians’ whom he said have resorted to guerrilla war tactics to deplete his support base.

Mathare constituency is one of the most cosmopolitan in the city with nearly all the six major ethnic communities of Kenya dwelling in the area.

But it is also common with flare ups pitying different ethnic groupings competing for political supremacy.

Last year during the mass voter registration, chaos erupted in the area after groups clashed over those seeking to become voters in the constituency.

One group accused the other of trying to transfer voters from upcountry to increase their numbers ahead of the August general election.

Governor Kidero is facing a stiff competition in the race to retain his seat with several aspirants seeking to unseat him.

Those who have already declared interest in vying for the Nairobi Governorship include former presidential candidate Peter Kenneth, Senator Mike Sonkp, MPs Johnson Sakaja and Dennis Waweru as well as former Starehe MP Margaret Wanjiru.

Lawyer Miguna Miguna is also eying the seat.

During his visit to the latest scene of the fires, Dr Kidero donated Sh500,000 to support the victims and discouraged residents from being used as arsonist by politicians.

He maintained that he was still the best choice for the governor’s position in 2017 and urged residents to vote him again.

Established in 1969

Nairobi Governor Evans Kidero consoles the family members of a woman who died in the latest fire incident in Mathare yesterday. Dr Kidero has linked the fires to political rivalries in the area.

“Nairobi needs someone who will look into the most burning issues of the county, not just any type of leader,” he said.

Kidero said the youths had been driven to crime following the collapse of the NYS

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programme that was meant to alleviate poverty in the slums.

“We do not want a government that drives our youth into poverty by taking away their @hillary_x254 opportunities,” said Kidero.

Elaborate plans to ensure successful mass registration of potential voters The Independent Electoral and Boundaries Commission has released elaborate plan on how it will handle the general elections slated for August this year.

According to the commission’s CEO Ezra Chiloba, the electoral commission first wants to see a success of the second Mass Voter Registration set to start next week Monday.

The IEBC is currently training clerks for the second Mass Voter Registration.

They are under several teams. They include the National Training of Trainers, which was completed on 6 January 2017, Second Level Training at the regional level is ongoing and the training of VRAs/Clerks will be completed by 14 January 2017.

Other Operational Plans will include; all registration centers shall be gazetted by 13 January 2017, all registration officers shall be gazetted by 13 January 2017, about 300 registration centres will be amended in terms names/location, stakeholder engagements both at the national and county level continue this week and an enhanced voter education campaign, including media, will commence by 12 January 2017.

The second Mass Voter Registration exercise is seeking to register six million voters.

Chiloba said all preparations are this time in place with a total 7,793 BVR kits will be deployed countrywide at the ward level.

“The BVRs distribution criteria will be based on geographical area, which was modified from the first Massive Voter Register. The proposal is to have the kits opened at constituency level, to allow registration across the constituency,” Chiloba said.

The kits movement schedule is to be shared with locals while voter transfers will be done at constituency level.

“To ensure the second Mass Voter Register is successful, we have also invested significantly in Human Resource,” Chiloba said The IEBC has recruited over 15,000 employees for the exercise.

Former Nairobi boss teams up with Kenneth in race for City governorship Former Nairobi Town Clerk Philip Kisia has teamed up with former Gatanga MP Peter Kenneth to topple Nairobi Governor Evans Kidero banking on the Jubilee Party ticket in this year’s General Election.

Kisia told Capital FM News that he will be Kenneth’s running mate and stated that Kidero has been caught flat-footed in all aspects in the four years he has been in office.

He stated that Nairobi is worse than when he left it and this is what together with Kenneth, they will be seeking to correct.

“We’ve the same belief, same aspiration and are ready to serve. Kidero has failed in every aspect, even more than I left it and this is what PK and myself are seeking to correct,” he stated.

He explained that garbage collection is at its worst, traffic congestion choking and corruption the order of the day at City Hall.

“We’ll implement the Jubilee policy. The reason Kidero has failed is because his party ODM and CORD lack clear policies and agenda for Kenyans,” he said.

Kisia said the Kidero administration has failed to implement the Integrated Waste

Former Nairobi Town Clerk Phil;ip Kisia.

Management plan he developed before he left office.

“Traffic management and public transport system are wanting. Implementing what had already been developed has become a problem to this administration,” he said.

Kisia said the county has failed to work with the national security agencies to improve community policing and reduce crime.

“If anything, I doubt if the administration

has tarmacked 50 kilometres of road since it took over,” he said.

He stated that they will implement the Jubilee policy since the reason for Kidero’s failure was because his party lacked clear policies and agenda for Kenyans.

Senator Mike Sonko, Dagoretti South MP Dennis Waweru, former Starehe MP Margaret Wanjiru and MP Johnson Sakaja are all eyeing the city’s top job on the JP MORE ON THIS STORY ticket. www.capitalfm.co.ke

NEWS 3 WEDNESDAY, JANUARY 11, 2017

Governors Joho, Kingi bodyguards restored

Police have restored the security details of Mombasa Governor Ali Hassan Joho and his Kilifi counterpart Amason Kingi following threats to sue over their withdrawal last week.

Joho’s lawyer DBM Mosota wrote to the Inspector General of Police giving him 24 hours to restore the bodyguards and ensure the governor is protected round the clock.

He threatened to sue if the governor was not guaranteed total safety and security of his person from imminent danger. Both ODM and Governors had also issued similar threats to the police. And police last evening announced they had restored the security teams citing the withdrawal as a result of re-organisation following concerns that the governors had more than 15 officers attached to them.

The withdrawal of their security detail last Friday emanated from a memo sent from the police headquarters directing officers and vehicles to desist from escorting and clearing roads for county government officers. In

the memo signed by Senior Assistant Inspector-General of Police King’ori Mwangi officers providing escort and chase cars to the officials were warned that they would face disciplinary action.

He further ordered county and regional commanders to initiate disciplinary action against police officers violating the directive.

Earlier yesterday, Mombasa Senator Hassan Omar asked for Joho’s and Kingi’s security detail to be audited claiming the two governors had excess bodyguards.

“We all face similar threats. We are all opposing the same government and we have not seen any reason to move with a police post at every corner,” Omar complained while insisting “There must be an audit and discipline.”

He accused Kingi and Joho of flaunting their bloated security detail to the extent of intimidating people and misusing firearms.

According to Omar, it was an absurd precedent especially when the country

was gearing up for the August General Election. He deemed it imperative for the government to regulate the number of police officers, firearms and other security detail assigned to leaders to ensure there is a level of responsibility exercised even as they protect them.

“There needs to have firm guidelines.

Why are you carrying a firearm to a political rally? To what extent can those firearms be carried?” he wondered.

“People brandish their guns and shoot in the air during elections. There are concerns. People of Mombasa are living in fear, every time people are intimidated and threatened,” Omar claimed.

He claimed that Joho and his family alone have over 19 guns and about 15 armed police officers that he deemed unnecessary.

He further urged the National Firearm Licensing Bureau to investigate the number of firearms which are being owned by private citizens especially by politicians at the Coast. On the other hand, Joho’s and Kingi’s allies

Mombasa Governor Hassan Joho shares a light moment with Kilifi’s Amason Kingi after a court session in Nairobi last year.

have condemned the government for withdrawing his security detail terming it as a show of might by rival Jubilee government. However, it was not the first time that Joho had fallen

out with the security organs in the country. In June 2016, his security detail was withdrawn over allegations that his bodyguards assaulted a woman.

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NEWS WEDNESDAY, JANUARY 11, 2017

Uganda leader promotes son Uganda’s leader Yoweri Museveni has promoted his eldest son to become a special presidential adviser in a reshuffle of army commanders.

Maj Gen Muhoozi Kainerugaba (pictured below) has risen rapidly within the military, fuelling speculation that he is being groomed to become president one day.

Analysts say his new role, working more closely with state house, will broaden his remit and experience.

Mr Museveni, 72, is one of Africa’s longestserving leaders.

He came to power in 1986 after winning a five-year guerrilla war - and last year won his fifth term in office with more than 60% of the vote.

Gen Kainerugaba, 42, had been in charge of the Special Forces in charge of his father’s security since 2008.

He graduated from the UK’s Royal Military Academy Sandhurst in 2000 and last year was promoted from brigadier to major general.

“Muhoozi... is going to play a significant role in a post-Museveni Uganda, there’s no doubt about it,” political commentator and rights activist Nicholas Opiyo told the Reuters news agency. “He is just giving the boy a hand in experiencing how government works on the side of politics.”

In the reshuffle Brigadier Peter Elwelu, who oversaw a deadly raid in November on the palace of a regional king accused of launching a secessionist movement, was promoted to army chief.

Correspondence say the promotion is being seen as a reward for the operation, in which more than 60 people were killed.

Meanwhile the previous army chief General Katumba Wamala has been made a junior Minister for Works in the government after serving as the top army official since 2013, a departure seen as a demotion, the correspondents add.

Military spokesman Paddy Ankunda said the moves were part of normal changes within the institution.

US President Barack Obama (R) waves to the crowd next to First Lady Michelle Obama (C) and daughter Malia Obama (L) after his farewell address to the American people at McCormick Place in Chicago, Illinois, USA, early today. Obama’s eight year term as president of the USA ends on 20 January when President-elect Donald Trump takes the oath of office. PHOTO: KAMIL KRZACZYNSKI/EPA

Obama asks Americans to guard democracy farewell address

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resident Barack Obama has called on Americans to defend their democracy in his farewell speech in Chicago.

“By almost every measure, America is a better, stronger place” than it was eight years ago when he took office, he told thousands of supporters.

But he warned “democracy is threatened whenever we take it for granted”.

He implored Americans of all backgrounds to consider things from each other’s point of view, saying “we have to pay attention and listen”.

The country’s first black president, now 55, was first elected in 2008 on a message of hope and change. His successor, Donald Trump, has vowed to undo some of Mr Obama’s signature policies. He will be sworn into office on 20 January.

Raucous chants of “four more years” from the crowd were brushed aside by the president. “I can’t do that,” he said with a smile. US presidents are limited to two terms by the constitution.

“No, no, no, no no,” he said, when the crowd booed the prospect of Mr Trump replacing him.

Striking an upbeat tone, Mr Obama said that the peaceful transfer of power between presidents was a “hallmark” of American democracy.

But, he outlined three threats to American democracy - economic inequality, racial divisions and the retreat of different segments of society into “bubbles”, where opinions are not based on “some common baseline of facts”.

“If you’re tired of arguing with strangers on the internet, try to talk with one in real life,” he said

to laughter and applause. In his closing remarks he said he had one final request for Americans as president: “I am asking you to believe. Not in my ability to bring about change - but in yours.”

Returning to Chicago, where he first declared victory in 2008, Mr Obama delivered a mostly positive message to Americans after a divisive election campaign which saw to Mr Trump defeat Democrat Hillary Clinton.

Mr Obama said that young Americans including those who worked on his campaigns, and who believe “in a fair, just, inclusive America” - left him feeling “even more optimistic about this country than I was when we started”.

In choosing Chicago, Mr Obama had earlier said he wanted to return to “where it all started” for him and First Lady Michelle Obama, instead of delivering the speech from the White House.

Mr Obama said that it was in Chicago as a young man, “still trying to figure out who I was, still searching for purpose in my life”, that he “witnessed the power of faith and dignity of working people in the face of struggle and loss”.

“This is where I learned that change only happens when ordinary people get involved and they get engaged and they come together to demand it,” he said. “After eight years as your president I still believe that.”

But the speech he delivered is also an elegantly worded warning.

“Yes we can. Yes we did.” A bookend to the speech he delivered on the night he won the presidency in Grant Park, Chicago, Barack Obama’s farewell address contained much

of the same hope and optimism that were hallmarks of his candidacy while at the same time outlining his legacy.

But it was also an elegantly worded warning: about the country’s broken politics, its naked partisanship, its stark economic inequalities, its social and racial dislocation.

Though he did not mention the Presidentelect by name, much of it obviously read like a rebuttal to Donald Trump’s campaign.

Obama called for respect for the science of climate change and drew one of his biggest applause lines when he noted: “I reject discrimination against Muslim Americans.”

The line “democracy can buckle when we give in to fear,” could easily be interpreted as being aimed at Donald Trump.

This speech highlighted a stark difference between the two men: Obama’s preference for delivering reflective and historically literate orations, and Trump’s penchant for expressing himself in Tweets.

Some 18,000 people attended the farewell address at McCormick Place, the largest convention centre in North America and the venue for Mr Obama’s speech after he defeated Mitt Romney in the 2012 election.

The tickets were given out free, but were selling online for more than $1,000 (£820) each hours ahead of the speech.

As he leaves the Oval Office, President Obama is viewed favourably by 57% of Americans, according to an Associated Press-NORC Center for Public Affairs Research poll, a similar level to Bill Clinton when he left office.

NEWS 5

WEDNESDAY JANUARY 11, 2017

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NEWS WEDNESDAY, JANUARY 11, 2017

NEWS PICTORIAL TOWARDS A STANDARD GAUGE RAILWAY: First batch of the SGR locomotives in Mombasa after they were officially launched by Transport CS James Macharia today.

VETTING: Republican Senator from Alabama, Jeff Sessions, prepares to testify at his confirmation hearing to be the Trump administration’s Attorney General in the Russell Senate Office Building in Washington, DC, USA, 10 January 2017. Sessions’ nomination is encountering strong resistance; on 03 January more than 1,100 American law professors from 48 states signed a letter to Congress asking that they reject Session’s nomination. PHOTO: JIM LO SCALZO/EPA

FROM PM TO VP: The President of the Ivory Coast Alassane Ouattara (R) and newly appointed Ivory Coast Vice-President Daniel Kablan Duncan (L) shake hands in the National Assembly in Abidjan, Ivory Coast, yesterday. Mr Kablan who resigned as Prime Minister along with his government on January 9, was officially appointed Ivory Coast’s Vice-President on January 10, 2017. PHOTO: LEGNAN KOULA/EPA Pope Francis (right) when he spoke during his Wednesday General Audience in Nervi Hall at the Vatican, today. PHOTO: CLAUDIO PERI/EPA

xnews | WEDNESday, JANUARY 11, 2017 | www.x254.co

BUSINESS

CBK EXCHANGE RATES 1 US DOLLAR 1 UK POUND 1 EURO 1 S.A RAND 1 KSH/USH 1 KSH/TSH

Inflation to remain high in Q1 of 2017 as food prices increase Kenya’s inflation is expected to rise further in the first quarter of 2017, headlined by a rise in food prices, economists have projected.

The rise in food prices is as a result of a drought that hit major food producing regions in the country in 2016, which resulted in low food production.

An economic outlook report prepared

by Stanbic Bank shows that inflation is likely to rise up until April and thereafter ease somewhat till July, after which a more durable decline in prices in the final quarter of 2017 will be expected.

Jibran Qureishi, Regional Economist at Stanbic Bank explains that the rise in inflation may not have dire effects on the overall economic performance due to slowdown in private sector credit.

“Headline inflation could get some much needed respite if the long rains are adequate in the key food growing regions. However, we suspect that demand driven inflationary pressures could remain modest in the absence of robust economic activity for the better part of 2017 as private sector credit growth will probably not sprint meaningfully following the implementation of interest rate controls,” Mr Qureishi said.

During the last festive seasons, the prices of basic food commodities jumped while the value of the shilling depreciated, throwing low and middle

A customer shopping at a local supermarket in Nairobi. EPA/STEPHEN MORRISON income Kenyans out of the group of spenders.

The prices however, had not dropped but will increase for the first three months of 2017, forcing low income Kenyans to dig deeper into their pockets. The shelf price of sugar, for

Germany pledges to help Kenya achieve middle-income status Kenya’s manufacturing sector has received a major boost after the government of German announced commitments to support Technical and Vocational Education Training (TVET) institutions in the country.

This, said the European nation, is in a bid to build capacity for the country’s manufacturing industry.

Dr. Klaus Liebig, KfW Bank Country Director has said the Germany will follow through on its promises to support Kenya achieve a middle-income status through industrialization, starting in 2017.

“Starting with this year, the German Government will specifically support initiatives to support technical training,” said Liebig during the Wings to Fly scholarships award ceremony held at the Kasarani Indoor Arena, adding that Kenya and Germany agreed “to step up efforts in this technical area which is sometimes neglected.”

In April last year, during a State visit to Germany, President Uhuru Kenyatta acknowledged the vital role the nation - which is Kenya’s fourth largest foreign investor - plays in the

country’s development as he rooted for concessions from Berlin to help strike a balance in trade between the two countries.

President Kenyatta took note of the investment opportunities available in the mining, oil and gas exploration, as well as production sectors while making a case for the need to address existing trade imbalances in favour of Germany.

Liebig added that Germany is keen on investing in Kenya’s automobile industry with the latest investment being the production of Volkswagen in vehicles in the country.

“After receiving world-class technical training, we will be able to produce world-class cars in Kenya and I think this is filling an important gap in the system here,” said the President in a joint press conference after meeting his host, Chancellor Angela Merkel.

The resumption of production of cars - four decades after VW suspended operations - is seen as a boost to Kenya’s vehicle assembly industry, which remains unbeaten in the region. @enock_x254

instance, has remained high despite a 4 per cent dip in prices at the factory level, a position that might last for the whole first quarter of 2017.

A report by Stanbic Bank highlights a positive local and global performance of the economy in 2017.

Qureishi says the capping of interest rates to 14.5 per cent in 2016 could see private credit grow at the fastest rate in history, a move that might boost economic growth though the growth might not reach an earlier projected @enock_x254 level of 6 per cent.

MEAN 103.8056 126.1336 109.6767 7.5833 35.0416 21.1357

BUY SELL 103.7056 103.9056 125.9944 126.2728 109.5606 109.7928 7.5725 7.5940 34.8875 35.1958 21.0672 21.2043

KQ sacks 38 workers as part of turnaround plan

National carrier, Kenya Airways (KQ) is set to lay off 38 workers as part of the flyer’s second phase of its ongoing restructuring strategy.

This is the second job cut following a July 2016 drive when the airline sent home 80 employees.

An earlier drive in March 2016 saw about 600 employees axed as part of a multi-pronged approach to cut costs and return KQ to profitability.

The company’s outgoing Managing Director and CEO, Mbuvi Ngunze said that the retrenchment is in line with KQ’s “Operation Pride”, an initiative that seeks to ensure profitability and revisit the carrier’s operating model and network.

“After implementation of Phase 1 of the restructuring process, we continued looking for opportunities for productivity and efficiency gains as well as upskilling within the business,” said Ngunze.

“After a lot of consultation the next phase of the process is now ready to be rolled out. There is never a perfect timing for such actions, and we will ensure that the process is handled within the values of our Airline,” he explained.

Over the past year, KQ has continued to implement its turnaround strategy ‘Operation Pride’ amid losses.

The troubled airline says Operation Pride focuses on closing the profitability gap, refocusing the business model as well as optimizing the capital structure of the company. @enock_x254

Savannah completes scheduled plant upgrade as demand for services surges Local manufacturer, Savannah Cement has resumed full-scale operations following a major plant overhaul closure over the festive season.

The firm, which has traditionally undertaken its annual maintenance works in the last quarter of the year, has now adopted a festive season shutdown to minimize impact on service delivery and guarantee quality consistency.

Speaking when he confirmed the plant re-commissioning, Savannah Cement Managing Director, Mr. Ronald Ndegwa said the festive season closure was undertaken to ensure that customer interests in the local and export markets are upheld.

With a healthy growing balance of both corporate and retail customers in the local and regional market, Savannah Cement, opted to undertake its plant overhaul over the festive season to minimize supply disruptions.

“At Savannah Cement, we have opted

Savannah Cement Marketing Manager Joseph Mugambi MD Ronald Ndegwa Sinohydro Engineer and Corporate Sales Advisor Zubesh Yoon.

to adopt a festive season annual maintenance routine going forward to enable us meet our customer needs more efficiently,” he said, adding that, “crucial mechanical parts of the cement grinding mill have been replaced to boost production efficiency and maintain the highest quality.”

While extending gratitude to the firm’s customers and stakeholders for their patience and understanding during the annual maintenance shutdown, Mr. Ndegwa further confirmed that plans to double the factory’s production capacity are now

underway.

“Our customers will continue to experience a significantly improved truck turnaround time when they visit the plant for their supplies,” He added. The dust free Savannah Cement Factory in Athi River has been described as East Africa’s most eco-friendly and production efficient cement-manufacturing complex.

The factory features a combination of roller press and V-separator technology before the mill making the production plant one of the most energy-efficient in Sub-Sahara Africa. @Dennis_x254

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Motoring Deals WEDNESDAY JANUARY 11, 2017

International vehicle manufacturers flock to set up assembly plants in Kenya International vehicle manufacturers are flocking to Kenya in a bid to set up assembly plants in East Africa’s largest economy.

Germany is keen on investing in Kenya’s automobile industry with the latest investment being the production of Volkswagen in country, Dr. Klaus Liebig, KfW Bank Country Director, said during a past media briefing.

Ford and Nissan, two of the world’s leading vehicle companies, are looking to work with Kenyan authorities to develop an auto-manufacturing industry in the East African country.

It has emerged that the African Association of Automotive Manufacturers, which also includes Toyota, General Motors, BMW and Volkswagen, has formed to take advantage of a new surge of interest from African governments in building vehicles locally. The group urged Nigerian President Muhammadu Buhari and senior officials to limit the inflow of barely used second-hand cars and firm up policy for prospective carmakers and parts suppliers in August.

“What we talked to them about in all the meetings is that, if you are really

interested in this, then it can’t just be about bringing assemblers in,” Ford sub-Saharan Africa CEO Jeff Nemeth, who chairs the group, said in an interview at the company’s Pretoria, South Africa plant. “It’s got to be about bringing in the whole value chain, the whole ecosystem.”

The interest in developing auto industries in sub-Saharan Africa has grown as oil- and commoditydependent countries like Kenya seek to diversify their economies amid weaker prices.

Vehicle ownership per thousand people is about a quarter of the global average and there’s barely any automotive manufacturing between South Africa and the countries in the north of the continent. Challenges include the volume of imported used cars, a lack of vehicle-financing options and poor road and ports infrastructure.

The association has advised Nigeria to ban imported used cars that are one year old or less, and place higher tariffs on one- to five-year-old vehicles.

The group didn’t suggest immediate measures against imported vehicles older than that, simply because there’s no affordable alternative for many

Nigerians, according to Nemeth. In time, older second-hand cars would come from vehicles built in the country, he said.

While automakers have started the assembly of light vehicles in Nigeria from imported kits, they are still a long way from full-scale manufacturing.

Nigeria’s economy and vehicle demand have been hurt by lower oil prices, prompting Ford to halt assembly of its Ranger pickup truck in the country earlier this year, Nemeth said. Nissan’s assembly of Patrol sport utility models

continues, although at lower levels than the automaker would have liked amid a shortage of foreign currency, according to the Yokohama, Japanbased company’s South Africa MD, Mike Whitfield.

Another obstacle for automakers in African markets including Nigeria and Kenya is the absence of accessible vehicle financing, said Whitfield, who is also the vice chairman of the AAAM. Volkswagen started producing Vivo cars on December 21 and move to full assembly of 1 000 cars a year from

January, Thomas Schaefer, chairman of the German carmaker’s South Africa division, told reporters in Johannesburg last week.

Kenya “would love to have a big automotive industry, they would love to beat South Africa, Egypt,” Schaefer said.

“They want fully fledged production.”

Still, even when the right policies and incentives are in place, it takes several years for carmakers and their suppliers to plan for, approve and make the necessary investments, said Ford’s Nemeth.

Dennis_x254

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BUSINESS

Banking sector set for volatile year as GDP forcast falls to 5.4pc WEDNESDAY JANUARY 11, 2017

Kenya’s GDP growth will only expand by 5.4 per cent, down from a previous forecast of 5.8 per cent in 2017, from an estimated 5.7 per cent in 2016, a new report has revealed.

Stanbic Bank released its review of 2016 and outlook for 2017 at a media briefing held on Tuesday.

The report states that 2016 largely proved to be a good year for the Kenyan economy with respect to macroeconomic stability in light of economic constraints in other large economies in Sub-Saharan Africa.

Global investors were broadly satisfied by the Kenyan economy which stood out not only as a well-diversified economy but also bucked the trend of foreign exchange liquidity challenges that other African markets experienced.

Presenting the report, Stanbic Bank Regional Economist Jibran Qureishi said that headline inflation is likely to rise up until April and thereafter ease somewhat till July after which a more durable decline in prices in the final quarter of 2017 is expected.

The epicenter of concern for headline inflation remains food prices after pretty lackluster short rains in the fourth quarter of 2016. Furthermore, should the long rains season beginning in March disappoint, the effect of higher food prices could possibly become entrenched.

“Headline inflation could get some much needed respite if the long rains are adequate in the key food growing regions. However, we suspect that demand driven inflationary pressures could remain modest in the absence of robust economic activity for the better part of 2017 as private sector credit growth will probably not sprint meaningfully following the implementation of interest rate controls.”

In this new environment where a deposit floor and a lending cap has been imposed for commercial banks, the outlook for private sector credit growth doesn’t look too promising as banks are unable to adequately price risk. While admittedly, monetary policy conduct has now become somewhat cumbersome in this interest rate controlled environment, further CBR

A Stanbic Bank report states that 2016 largely proved to be a good year for the Kenyan economy with respect to macroeconomic stability in light of economic constraints in other large economies in SubSaharan Africa. cuts could shrink the already narrow pool of eligible borrowers for banks.

We expect the Central Bank Rate to remain on hold for the remainder of 2017; unless imported inflationary pressures become excessive, a scenario that could prompt the MPC to become relatively more hawkish.

A slowdown in private sector credit growth could weigh negatively on overall GDP. However there remains concern about the poor rains and its consequences on agricultural

production. Moreover, average GDP growth in Kenya has historically been lower in election years owing to firms maintaining a more cautious stance.

Similar events could transpire in 2017 attributable to election anxiety.

The Kenyan growth model has over the past five years or so transitioned towards a more investment-led model from a consumption one. Despite heightened concerns around slower credit growth and unfavourable weather conditions, it is unlikely that

GDP growth will fall to sub-5 per cent levels in 2017.

Additionally, Kenya’s failure to sign the Economic Partnership Agreement (EPA) is another major downside risk to GDP growth in 2017. Arguably, Kenya has more to lose than other EAC countries if the deal is not unanimously signed owing to the growing importance of the EU market for the very vibrant horticultural sector, states the report. @Dennis_x254

Global economic growth to edge up to 2.7 per cent in 2017 despite weak investment Global economic growth is forecast to accelerate moderately to 2.7 per cent in 2017 after a post-crisis low last year as obstacles to activity recede among emerging market and developing economy commodity exporters.

Meanwhile, domestic demand is set to remain solid among emerging and developing commodity importers, the World Bank said in a report released on Tuesday.

The report comes at a time when market analysts have slashed Kenya’s projected GDP growth to 5.4 per cent, down from a previous forecast of 5.8 per cent in 2017.

Growth in advanced economies is expected to edge up to 1.8 per cent in 2017, the World Bank’s January 2017 Global Economic Prospects report said.

Growth in emerging market and developing economies as a whole should pick up to 4.2 per cent this year from 3.4 per cent in 2016 amid modestly rising commodity prices.

Nevertheless, the outlook is clouded by uncertainty about policy direction in major economies. A protracted period of uncertainty could prolong the slow growth in investment that is holding back low, middle, and high income countries.

“After years of disappointing global growth, we are encouraged to see stronger economic prospects on the horizon,” World Bank Group President Jim Yong Kim said. “Now is the time to take advantage of this momentum and increase investments in infrastructure and people. This is vital to accelerating the sustainable and inclusive economic growth required to end extreme poverty.”

The report analyses the worrisome recent weakening of investment growth in emerging markets and developing economies, which account for one-third of global GDP and about three-quarters of the world’s population and the world’s poor.

Investment growth fell to 3.4 per cent in 2015 from 10 per cent on average in 2010, and likely declined another half percentage point last year. @enock_x254

OPPO feted at Las Vegas Consumer Electronics Show

OPPO, a Chinese electronics manufacturer with operations in Kenya and various parts of the globe, has received two honors from the International Data Group (IDG).

The consumer goods maker was feted at a ceremony hosted on as part of the annual Las Vegas Consumer Electronics Show (CES).

In an announcement from Patrick Kenealy, Managing Director of IDG Ventures USA, OPPO was recognized as both a 2016-2017 Global Top Smart

Phones Brand and a 2016-2017 Global Top Smart Connected Devices Brand.

Kenealy’s remarks acknowledged the growing success and technological leadership of a group of rising Smartphone brands, including OPPO that made great strides in their global expansions during 2016.

He credited these brands with “constantly accelerating transformation and upgrading and striving for innovation” and noted that the award ceremony’s honorees were chosen

through a process that evaluated brands in terms of technology, design, interaction and user experience.

“It is due to such great strides in offering evolving and innovative technology on a global platform that OPPO, in its past two years in Kenya, has been able to expand into major regions and towns including Mombasa, Kisumu, Nakuru, Nyeri and Eldoret,” the company said in a recent statement. “OPPO is extremely proud to be recognized by IDG for our commitment to bringing

out innovative technologies designed to delight and inspire our users around the world,” said Luma Lu, OPPO’s Technology Planning Directory, who accepted the honor on the company’s behalf. “In 2017, we’ll continue to commit ourselves to bringing out Smartphone that meet users’ real needs and that embody our pursuit of perfection in every detail.”

OPPO’s latest device from its F1 series has been well received in the local market.

The Global Top Brands ceremony is organized by US-based International Data Group (IDG) and is fully supported by research agency International Data Corporation (IDC). This year marked the 11th time IDG has held the event, which aims to bolster the development of the consumer electronics industry through celebrating top global brands that have distinguished themselves with innovative technologies and a commitment to user satisfaction.

WEDNESDAY, JANUARY 11, 2017

ACCESS ERIC OMONDI SEEMS TO HAVE TAKEN IT TO ANOTHER LEVEL, BUT HE SHOULD GET SOME CREDIT. Chocolate Droppa

12

Saratina

Fredd

Pauline Shamola

Parody songs getting out of hand What makes a good parody song great?

T

he primary element that makes these songs even slightly memorable is that they have to be funny. The song could have decent production value and even be shot and directed well but have zero comedic elements. A parody by definition should pull some laughs from the viewer but many times they fall flat and miss the mark.

Now this has been known to happen inadvertently, with no real intentions by the artiste, the song turns out be oddly hilarious.

That unfortunately named tune, ‘Nyonyo’ that dominated the airwaves late last year was by no means meant to be taken as a funny song. SBJ, the singer behind the tactless tune is a gospel musician and that is Chipukeezy

how the song should have been consumed, as an unpretentiously gospel song. With lines such as, “wengine walikamua wakatosheke wakatoroka, Wengine watazama wameshindwa jinsi ya kunyonya,” it’s not hard to see how confusion would arise. It’s not many times that the Word of God has been compared to mammaries, adding later on “wengine walinyonya nyonyo zilizo ganda (!?)” So many questions linger in the mind after hearing those lyrics. The song deserves a listen, if only to read the hilarious comments.

There seems to be a ton of new material being released by funnymen in the country. Most of it terribly off-putting and in poor taste but blame for this surge can solely be placed on American comedian Kevin Hart. After adopting the persona of Chocolate Droppa and releasing the jam ‘Push It On Me’ featuring singer Trey Songz, which could pass as a legitimate song leaving aside Hart’s raps, he seemed to achieve actual success online, garnering 9.5 million views since the song’s November release.

Following that, apparently comedians all over the world decided that they had found their next

meal ticket, including the ones in Kenya. Eric Omondi seems to have taken it to another level, but he should get some credit. He’s been doing parody songs for years and maybe it’s in his master plan somewhere but ‘Sarafina’ and the God’s Must Be Crazy’ could have dealt without his star treatment.

Eric Omondi also seems to have pulled contemporary and occasional colleague Chipukeezy into the fray. Chipukeezy has now given his online TV channel some new life with that unintelligible song ‘Unanifuta Kazi.’

He was also featured in the very loud ‘Haiwezi’ which has hundreds of thousands of views.

Fred Omondi has jumped on his brother’s bandwagon. Including re-igniting his musical career he has also taken up a new name, Redd.

He has a new song out, ‘Just Go,’ which it’s not very clear whether is meant to be regarded as funny or just a sub-par track.

Whichever the case, we could do better. @christine_x254

12

ACCESS

WEDNESDAY, JANUARY 11, 2017

WORST DRESSED @ THE 2017 GOLDEN GLOBES

KRISTEN WIIG her dress was essentially a lace sack with arm holes.

NICOLE KIDMAN the metallic detailing, boning & gauzy lace cheapens the dress.

JESSSICA CHASTAIN looking mumsy and blocky in this structured number.

KERRY WASHINGTON went full candy wrapper extravaganza.

KARRUECHE TRAN looking amateurish in this ruched pink prom dress.

@mercy_x254

W

ZOE SALDANA a little mismatched and a little dated.

e obviously can’t have a little good with a little bad. Even though the Golden Globes are a celebratory event, some of Hollywood’s biggest names were a little too bold with their garment choices while some looks fell �lat on the red carpet. Here’s a peek at the ones who should come correct next time.

to take up farming in 2017

@kevin_x254

eteran Bongo artiste Ruta Bushoke, is set to take up farming this year a path he says is a dream come true.

Bushoke who shot to fame after the release of ‘Usiende’ a collaboration track with Ugandan songbird Juliana Kanyomozi, just three and a half weeks ago released a new track featuring upcoming artiste Maua Sama after a long hiatus.

The track dubbed ‘Tupendane Sasa’ Bushoke says is one of the projects he has been working on behind the scenes and promises his fans lots of new songs in 2017.

“I have always wanted to farm, I am making this dream come true this year,” Bushoke said in an interview.

HOT TOPICS

V

to perform in Uganda

J

amaican reggae band Morgan Heritage is set to perform in Kampala on April 13th, 2017 at the Lugogo Cricket Oval. Their show is scheduled to kick start the Easter Weekend. The multi award-winning band of five sisters and brothers formed in 1994 will be performing in Uganda for the first time since the band’s formation. Morgan Heritage who won the 2015 Grammy Awards in the best Reggae Album Category for their album “Strictly Roots,” have produced over 17 albums.

2

9-year-old famous entrepreneur, Annerlisa Muigai, who recently made headlines after undergoing a drastic weight loss is one happy woman after she received a diamond ring and diamond encrusted bracelets from her fiancé on their engagement. The daughter to Keroche Breweries entrepreneur Tabitha Karanja posted a photo of the ring on social media to announce the great news. “You can never rush a man into marrying you. I used to wonder why he was taking so long to propose yet I thought I had everything he needed but trust me there is something deeper a man looks for in a woman. Patience is a virtue.

“She captioned the photo.

gets Diamonds for engagement

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SPORT

48-team World Cup: Fifa defends expansion WEDNESDAY JANUARY 11, 2017

Fifa president Gianni Infantino has defended the expansion of the World Cup to 48 teams, insisting the change was based on “sporting merit” and not to make money.

The sport’s world governing body voted unanimously in favour of the change at a meeting in Zurich yesterday.

Campaign group New Fifa Now described the expansion as “a money grab and power grab”.

But Infantino told the BBC: “It is the opposite, it’s a football decision.”

He added: “Every format has advantages in financial terms. We were in a comfortable situation to take a decision based on sporting merit.”

An initial stage of 16 groups of three teams will precede a knockout stage for the remaining 32 with the change coming in for the 2026 tournament.

According to Fifa research, revenue is predicted to increase to £5.29bn for a 48-team tournament, giving a potential profit rise of £521m.

“This is a historic decision which marks the entrance of the World Cup into the 21st Century,” added Infantino.

England’s Football Association has urged Fifa to consider the needs of fans, players, teams and leagues and asked for more information on how the tournament would work, with Infantino admitting much of the detail

Germany National team players celebrate with the World Cup trophy after they won it in 2014. PHOTO: COURTESY

has yet to be worked out.

The European Club Association (ECA), which represents the interests of clubs at European level, reiterated it was against expansion. It said Fifa had made a political rather than a sporting decision.

New Fifa Now says the governing body needs to reform, and that the change would “dilute the competitiveness of the tournament”.

Infantino, however, maintains the expansion will increase the quality of

the teams in the competition.

“Costa Rica eliminated England and Italy in the last World Cup, a good solid team and there are many other teams who could make it to the World Cup,” he said.

“I believe that the actual quality could rise, because many more countries will have the chance to qualify so they will invest in their elite football as well as grassroots.”

Responding to criticism from European clubs, Infantino added: “The game has

changed. Football has now become a truly global game. Everyone is happy about investment in Europe, but what about helping outside Europe? They need to be open.

“The key message from clubs I appreciate fully has always been don’t touch the calendar, the dates of the World Cup or the burden for the players, and both these commissions fulfil them. We will play 32 days like now, we play maximum seven matches like now, 12 stadiums, like now, but

give the chance for more countries to dream.”

The number of tournament matches will rise to 80, from 64, but the eventual winners will still play only seven games.

The tournament will be completed within 32 days - a measure to appease powerful European clubs, who objected to reform because of a crowded international schedule.

The changes mark the first World Cup expansion since 1998.

Africa and Asia which currently have just five slots in the World Cup could get up to nine each with the expanded tournament.

But Infantino said the decision on who will get the extra qualification slots has yet to be made but “this will be looked at speedily”, adding: “The only sure thing is that everyone will have a bit more representation than they have.”

The president said he believed the World Cup could emulate what he felt was a successful Euro 2016 tournament, where the number of teams taking part was similarly increased.

Qualifying for last year’s tournament featured a record 53 nations, while the number of teams at the finals increased from 16 to 24.

“It was the most interesting in the history of the European Championship,” said Infantino.

SPORT 15

Brave Police upset champs Company

Kenya Police upset defending champions Eastern Company 2-1 and move to second in Pool A on goal difference as they recorded their second win in the ongoing Africa Club Championships in Nairobi today.

A 61st minute strike by Vincent Odindo was decisive for two sides that were evenly matched early on even though Kenya Police wasted a gifted chance to take the lead in the 10th minute when they were awarded a penalty after an infringement on Oliver Echenje in the area.

But they quickly atoned for the miss when Richard Birir’s hard shot was instinctively poked home by George Mutira a minute later.

Mohammed El Gharably grabbed the equalizer in the 42nd minute for the Egyptian side.

Odindo eventually got his goal which turned out to be the winner when he lashed on to Robert Masibo’s hard pass that deflected off Farahat and into the net to send their huge fanbase into jubilation in the 61st minute.

Five goals by Kenyan international Audrey Omaido against Uganda’s Weatherhead saw Telkom Orange reach the semifinals of the Africa Cup of Club Championships. @amos_x254

Manchester United agree to sell Schneiderlin to Everton WEDNESDAY JANUARY 11, 2017

Manchester United have agreed to sell midfielder Morgan Schneiderlin to Everton for £22m.

France international Schneiderlin, 27, was signed for United by Louis van Gaal for £25m from Southampton in July 2015.

He has played 47 times for the club but has only featured eight times under Jose Mourinho this season, including three Premier League appearances.

Everton, meanwhile, have agreed to loan striker Oumar Niasse, 26, to Hull, with personal terms still to be agreed.

The Senegal international signed for £13.5m from Lokomotiv Moscow in February 2016 but has played only seven times for the Toffees.

Following United’s 2-0 win against Hull on Tuesday, Mourinho said: “Executive vice-chairman Ed Woodward informed me that the situation is close. Morgan is more than probably going to Everton.

“I am sad and happy, sad because I like him and he could be an option for us, happy because this is what he wants, to play every game and be important in

Manchester United’s Morgan Schneiderlin (C) is congratulated by teammates after scoring the opening goal during their English Premier League match against Everton at Goodison Park, on October 17, 2015. United have agreed to sell the midfielder to Everton.

PHOTO: PETER POWELL/EPA

the team.”

Manager Ronald Koeman demanded

the club make January signings in the wake of their FA Cup third-round exit

to Leicester.

They have already signed 19-yearold forward Ademola Lookman from Charlton for £11m.

If Schneiderlin, who was also a target for West Brom, moves to Goodison Park he will work with Koeman for a second time, having spent two years under the Dutchman at Southampton.

While Schneiderlin has struggled to adapt and stamp his personality on anything at Old Trafford, he gets across the ground well and he can tackle and get up and down the pitch.

At his best he’s a typical Premier League central midfield player. The Merseyside club could be buying someone who has been able to produce the goods in the Premier League from his time at Southampton.

Koeman still retains a strong interest in another United player, his countryman Memphis Depay, who is also an Old Trafford outcast.

Everton, however, may face competition from abroad for the 22-year-old, who joined United from PSV for £25m in May 2015.

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KENYA POLICE UPSET CHAMPIONS EASTERN COMPANY 2-1 IN NAIROBI

P 15

Coutinho returns for Liverpool in Southampton tie

L

iverpool playmaker Philippe Coutinho is set to return to action after missing out for nearly seven weeks with an ankle ligament damage. The Brazilian forward could get some playtime when Jurgen Klopp’s side take on Southampton in the first leg of the EFL Cup semi-final at the Saint Mary’s tonight. But captain Jordan Henderson misses out because of a heel injury.

Southampton will also be without captain Jose Fonte who put in a transfer request last week.

Saints boss Claude Puel does not intend to include the defender until after the transfer window closes.

Liverpool boss Jurgen Klopp fielded the youngest Reds line-up in history for Sunday’s FA Cup thirdround tie with League Two side Plymouth.

The club’s youngsters struggled to impress as they were held to a goalless draw, and Klopp is expected to include a number of first team players for the trip to St Mary’s. Klopp says his side’s disappointing FA Cup display does not mean they are under greater pressure to perform against Southampton. “There is no more pressure on us,” he said. “It is an opportunity. It is always a new day. “I said to the lads last year it would not be the last final they would be involved in and this is the first chance to prove this.”

Southampton have not reached the League Cup final since 1979 when they were beaten by Nottingha Forest. Liverpool beat them 6-1 at the same venue in the League Cup quarter-finals last season. However, the two sides drew 0-0 at St Mary’s in the Premier League when they met in November.

Utd edge closer to League Cup final

J INSIDE

Fifa boss defends 48-team World Cup

p

14

ose Mourinho moved a step closer to a major trophy in his first season as Manchester United manager as goals from Juan Mata and Marouane Fellaini secured a first-leg victory over Hull City in the semi-final of the EFL Cup. A near full-strength United struggled to break down resilient Hull in a first half in which the hosts had just two shots on target - Mata forcing a good save out of goalkeeper Eldin Jakupovic, who also tipped over Paul Pogba’s long-range effort.

The visitors had chances of their own against a side who had won their eight previous games in all competitions, Robert Snodgrass causing problems from set-pieces.

However, Mata got the breakthrough just before the hour mark when he tapped in from Henrikh Mkhitaryan’s knockdown.

Substitute Fellaini scored a second late on, heading in from Matteo Darmian’s cross to

put United in command heading into the second leg on 26 January.

“Maybe I didn’t prepare the team right. I didn’t give them enough intensity, and we had to change that at half-time. Maybe I should pay more attention to the dynamic of the game,” Mourinho observed.

The League Cup represents a genuine opportunity for Mourinho to claim a major trophy to add to the Community Shield collected last summer.

He has named strong sides throughout the competition and it was no different against Hull as several first-team regulars, including Wayne Rooney, Pogba and David de Gea, started.

With Hull bottom of the Premier League and struggling badly with injuries - they could only name six substitutes - a first Tigers victory in 65 years at Old Trafford seemed unlikely. They were given odds of 20-1

Manchester United’s Marouane Fellaini celebrates with teammate Anthony Martial after the Belgian midfielder scored his team’s second goal to against Hull City during their first leg of the EFL semi-final at Old Trafford last night. United won 2-0.

PHOTO:PETER POWEL/EPA

to win before kick-off and their prospects looked even more bleak when midfielder Markus Henriksen went off injured inside 20 minutes.

But since new Portuguese boss Marco Silva - described by some as the new Mourinho - took charge last week the Tigers have looked much improved. They beat Swansea in the FA Cup at the weekend and more than held their own for long periods of the game against the Red Devils despite having to field a makeshift defence.

“There’s only been four training sessions with me and with many, many things to change, I’m happy with the work my players did during this game,” Silva said.

Fellaini’s late goal means a turnaround in the second leg might be too big a challenge, but their overall performance will give their fans hope in the battle to stay in the Premier League.

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