Kenyan Budget 2013/2014

Treasury Cabinet Secretary Henry Rotich has just unveiled the national budget for the year 2013/2014 at Parliament.

The total expenditure amounts to Sh1,640.9 billion while the gross development expenditures is estimated at Sh447.9 billion.

The total revenue estimates for fiscal year 2013/14 stands at Sh1,027.2 billion, comprising of Sh961.3 billion of ordinary revenue, and Sh 67.0 billion of appropriations-in aid.

The total revenue estimate represents an increase of 7.5 percent over the Budget Estimates for 2012/13.

Budgetary Allocations by Sectors

Education

Sh53.2 billion has been set aside for deployment of 1.35 million laptops to class one pupils, development of digital content, and building capacity of teachers and rolling out computer laboratory for class 4 to class 8 in all schools throughout the country. (Translates to Sh 17.4 billion each financial year starting from FY 2013/14)

Sh10.3 billion will go to free Primary Education.

Sh 2.6 billion for school feeding programme.

Sh 20.9 billion for free Day Secondary Education.

Uhuru Unveils 26 Principal Secretaries

President Uhuru Kenyatta has today named 26 principal secretaries that will serve in his government.

Below is the full list:

Mutea Iringo - Interior and Coordination of National Government
Karanja Kibicho -Foreign Affairs
J. Ntiba - Ministry of Fisheries
Richard Lesiyampe - Ministry of Environment and Natural Resources
Joseph Njoroge - Ministry of Energy and Petroleum
Ibrahim Mohamed  - Ministry of Commerce and Tourism
John Konchellah –Ministry of Devolution
Dr.Kamau Thuuge  - Treasury
James Tekoo Lopoyetum - Ministry of WaterNduva Muli  - Ministry of Transport
Monica Juma -Ministry of Defence
Fred Sigor - Ministry of Health 
Khadija Kassachoon - Ministry of Livestock

Baker Stove: A Cook Stove that will change the Developing World

Majority of women in the developing world prepare food and purify water on a traditional technology called a three-stone fire. It is basically three rocks that support a pot with an open fire in the middle. This cooking style has been proven to be inefficient and leads to many environmental and health problems.

That is why Top Third Ventures Ltd, a company registered in Kenya has come up with Baker Stove, a solution to replace the three-stone fire. The 100% locally manufactured stove is thermal efficient allowing women to cook with only a third of the wood they used to use and in much less time.

Energy Management Awards 2013 Slated for 31st May

The Kenya Association of Manufacturers will be holding their annual Energy Management Awards (EMA) on Friday, 31st May 2013.

The awards seek to recognize companies that have put in place energy efficiency initiatives.

Venue: Intercontinental Hotel

Time:  6:30 pm - 10:00 pm

Dress Code: Black Tie

Pan-African security company launches in EA mining sector

Press Release

Pan-African security company launches in EA mining sector

28th March 2013: Sub-Saharan African security company Warrior Security Limited is today launching tailored mining security services in East Africa, as finds in oil, gas, niobium, rare earths and gold in Kenya, Uganda and Tanzania expose companies to increasing risks from intruders.

“Most mining sites are in remote areas making them vulnerable to attacks by intruders,” said Maj. Tony Sugden, Chief Executive Officer and founder of Warrior Security Limited.

“Warrior Security specializes in providing integrated risk solutions in such areas, with our professionals having extensive experience in dangerous and often chaotic environments, coupled with intimate knowledge of the culture and region," he said.

The company's core team combines over 60 years of experience in the British army, as well as 35 years experience working in Africa.

Shell Rebrands to Vivo Energy Kenya

Oil marketing firm Shell Kenya has rebranded to Vivo Energy Kenya following completion of a sale agreement with 2 foreign firms.

Parent firm Royal Dutch Shell sold majority stake in its African business that deals with retail, distribution and storage of petroleum products. The business was later acquired by Vivo Energy that is 40-percent owned by Dutch firm Vitol Group, 40-percent by African-based private investment firm, Helios Investment Fund and 20-percent Shell.

Kenya, Slovakia Nuclear Deal Set for January

The Kenyan government is set to sign a nuclear cooperation agreement with the Slovakian government by the end of the January 2013.

Speaking about the deal, Slovakia’s Foreign Affairs State Secretary Peter Burian told Xinhua that both nations have already exchanged a draft of the Memorandum of Understanding.

Daewoo to Build $1.3 billion Power Station in Kilifi

Kipevu Power Plant, Mombasa
Image Courtesy of kengen.co.ke 

South Korea’s Daewoo International has signed a $1.3 billion pact with the Kenyan Electricity Generating Company (KenGen) to construct East Africa’s largest power station in Kilifi County.

The coal-fired power plant, which is one of the flagship projects towards attaining the Vision 2030, will have two turbines each producing 300MW to the current installed power capacity of 1,215MW.

Speaking in Seoul, Prime Minister Raila Odinga said that the new plant would play a key role in the government’s objective to add 1,500MW of new power capacity by 2019 and put an end to power cuts.

JinkoSolar to develop Kenya’s Largest Solar Power Plant

JinkoSolar to develop Kenya’s Largest Solar Power Plant

Leading solar power product manufacturer, JinkoSolar Holding Co. Ltd, on Wednesday announced it would supply modules for a 50-megawatt solar power project in Kenya.

The Chinese Company has signed a cooperative agreement with China Jiangxi Corporation for International Economic & Technical Co. Ltd (CJIC) to ensure realization of Kenya’s largest solar power project.

The plant, which will be located in Garissa County, is expected to occupy 81 hectares and produce 76,473 megawatts hours per year.

Kenya secures 1.32billion loan from Belgium for Ngong Wind Farm

Ngong Hills Wind Farm

Image courtesy of Globalpost.com

The Government of Kenya has secured a Sh1.32billion loan from the Belgian Government and Belgium’s KBC Bank to finance the installation of Wind turbines at the KenGen’s Ngong Hills power plant.

The loan agreement, which was signed on Wednesday by Finance minister Njeru Githae, includes a state-to-state zero interest credit agreement of 6 million Euros and a concessional credit agreement with KBC Bank of Belgium of 6.36 million Euros.

Kenya’s EcoPost Ltd feted at Energy Globe World Awards

2012 Energy Globe World Award Winners. EcoPost Ltd CEO Charles Kalama (Far Right)

Kenya’s EcoPost Limited was honored with the prestigious Earth award at the 2012 Energy Globe World Awards held in Vienna, Austria on Friday, September 14, 2012.

EcoPost was among nominees from 14 different countries that had the opportunity to present their projects at the 29^th International CIRIEC congress held in the Vienna City Hall from 12^th -14^th September.

The project, which involved recycling of fence posts to protect forests and reduce plastic waste landfills, emerged the winner in the Earth category.

Kenya Strikes Gas in Mbawa-1, Malindi

British firm Tullow Oil PLC and Australia's Pancontinental Oil & Gas have announced that they have encountered natural gas in the Mbawa-1 exploration well located in the licensed L8 offshore area, Malindi.

“While we have not finished operations in Mbawa 1, this gas discovery is very promising and it is the first ever substantive hydrocarbon discovery offshore Kenya,” Pancontinental CEO Barry Rushworth said in a statement.

EA Gasoil looks to expand in the Great Lakes regions

Mombasa-based East African Gasoil Ltd (EAGOL) is keeping an eye at the lucrative regional energy market by expanding its outlets outside the country.
Executives at the firm indicated that they are keen on venturing into the larger EAC market, in particular capturing a strong foothold on the Great Lakes region due to its underlying potential.
“We aspire to be the premier midstream petroleum company in the Great Lakes region,” Mr. Abdi Ali Salad, EAGOL’s chief executive officer, said. “EAGOL has ever since complied with all state laws governing the oil trade as well as other statutory obligations such as paying taxes and adhering to labor laws,” Mr. Salad adds.


EAGOL markets and distributes petroleum products in bulk across the East and Central African region.
EAGOL currently has a countrywide network with 5 sales offices in Mombasa, Nairobi, Nakuru, Eldoret and Kisumu, Kenya’s five major towns. The offices also serve as company products outlets.
The company has in the last two years improved its operation and grown its market share both in terms of annual base and asset turnover.
The firm’s product and services portfolio encompasses import, export, and distribution of petroleum products, namely; Crude Oil AGO, PMS, IK, IDO, DPK, Furnace Oil, Jet A and Jet A-1.
According to the CEO, one of EAGOL’s strength is the commercial trust quickly but consistently nurtured within and outside the organization.

Source: The Standard By Philip Mwakio

Essar Energy to join Kenya’s Fuel Retail Market

India’s largest private fuel retailer Essar Energy is set to retail fuel in Kenya where the likes of KenolKobil Ltd (KNOC) have a strong presence.

Essar enters the Kenyan retail market with an edge over competitors after acquiring 50 percent stake in Kenya Petroleum Refineries Limited (KPRL) from the Royal Dutch Shell, Chevron, and BP back in 2009. The Kenyan Government retains the other 50 percent in what is East Africa’s largest oil processor.

The London-listed company has already established a pilot fuel retail outlet in the country under an introductory franchisee model.

The Essar branded outlets will receive fuel from the company’s refinery situated in Kenya. The company has stated that for now it won’t involve local partners as it seeks to study the new market with modest expansion.   

Essar Energy through its unit Essar Oil runs over 1500 retail outlets in the mother country India under a franchise model, selling gasoline and gasoil.

About Essay Energy

Essar Energy (ESSR) is a holding company with large interest in India and US$17 billion of assets across the power and oil and gas industries. It operates in various segments of the industry that include refining and marketing business Vadinar Petroleum Refinery in India, the Stanley Refinery in the United Kingdom (Acquired from Shell UK Limited in 2011) and a 50 percent stake in the Kenya Petroleum Refinery Limited.

The company also engages in exploration and production, with 15 blocks and fields for exploration and production of oil and gas in India, Indonesia, Madagascar, Vietnam, and Nigeria.    

In the power sector, it operates six operational gas and liquid fuel-based power plants in India and Canada with a total installed capacity of 3055 MW.  

The company is listed on the London Stock Exchange (LSE), Bombay Stock Exchange, and the National Stock Exchange of India.

Ormat Technologies & OPIC sign a $310 million loan for the expansion of Olkaria III Geothermal Power Complex

Olkaria III Geothermal Complex Ariel View

Press Release

Ormat Technologies Signs Long-Term Debt financing for up to $310 Million for the Olkaria III Geothermal Power Complex in Kenya

(RENO, Nev.) August 27, 2012 -- Ormat Technologies, Inc. (NYSE: ORA)announced today that OrPower 4, Inc., its indirect wholly owned subsidiary, and the Overseas Private Investment Corporation (OPIC), an agency of the United States Government, signed a Finance Agreement for limited-recourse project financing totaling up to $310 million for the Olkaria III geothermal power complex located in Naivasha, Kenya.

Phase I of the existing power plant commenced commercial operation in 2000 and was incorporated into phase II of the existing power plant in January 2009. Since then, the facility has been in continuous, successful operation.

Uganda’s Umeme to list at NSE

Uganda’s principal power distribution company, Umeme is set to list on the Nairobi Securities Exchange (NSE) and the Uganda Securities Exchange (USE) through an initial public offering (IPO).

The company is looking to raise capital on the two bourses in October in order to finance the expansion of Uganda’s electricity distribution network.  

According to the Uganda Electricity Authority, Umeme’s customers have been on a steady upward trend driven by the demand for power in the country.

Its statistics show that customers had gone up to 443,653 in the third quarter of last year, from 315,249 in the first quarter of 2006.

Established in 2005, Umeme won a 20-year concession from the Uganda government for power distribution.

It is owned by UK-based pan-emerging markets private equity firm Actis Capital. The IPO is expected to serve as a partial exit for Actis in Umeme, through reducing its shareholding in the company. 

Kenya’ s Hass Petroleum to supply diesel in Rwanda

Kenya’s Hass Petroleum Ltd has won a one-year tender to supply diesel to Rwanda government’s thermal power plants.

The firm was awarded a Rwf18.5 billion contract to supply 48 million litres of diesel in three of Rwanda’s power plants, Jabana, Bugunga (yet to be commissioned) and Gikondo.

Local firm, Society Petroleum Rwanda lost to the Kenyan company, a demonstration of the high level of transparency in Rwanda’s procurement process and fair playing ground for foreign and local businesses.

An official in the Ministry of Energy said that Hass was awarded the tender due to its competitive price, capacity to sustain supply and its large fuel depot at Dar es Salaam (Rwanda’s major fuel supply route).

Hass is planning to counter the competitive market in the region dominated by Kobil and Engen by increasing pump stations from 3 to 10 in the near future.

The firm is also searching for land to build a larger fuel depot to meet demand in Rwanda and neighboring Burundi and Democratic Republic of Congo.    

Hass is also doing well in Uganda with a large retail network with 20 pump stations to bring the total regional network to more than 60 stations.  

Apart from Uganda, the firm has operations in Dar es Salaam owing an oil depot with a capacity of 40 million litres.

Toyota and Vision 2030 board sign MOU

Japanese automaker Toyota to fund national flagship projects, Vision 2030

Toyota’s trade, investment and logistics arm, Toyota Tsusho Corporation (TTC) and the Vision 2030 delivery board, on Wednesday signed a memorandum of understanding where Toyota will intensify investments in automobile, logistics, power and energy, mineral resource, environmental infrastructure, and food production and processing.

Currently TTC has an agreement with the Government of Kenya to build an oil pipeline linking Kenya’s Lamu to South Sudan as part of the multi-billion dollar Lamu Port Southern Sudan and Ethiopia Transport Corridor (LAPSSET). The corridor is part of Kenya’s Vision 2030 flagship projects.

In promoting food production, TTC in collaboration with the Japanese International Cooperation Agency (JICA) will supply machinery to farmers in Mwea, the largest rice irrigation scheme in the country, located in Kirinyaga County.

Logistics centre 

The automaker is also set to establish a 1.28 billion-shilling logistics centre in Nairobi, which will serve 13 nations in the sub-Saharan region with direct sourcing of vehicles from Japan. The regional vehicle logistics centre and parts depot will be situated in South C, Nairobi.

The facility will also offer both managerial and mechanical courses for prospective employees, through an in-house technical teaching centre said Toyota Kenya’s chairperson Amb. Dennis Awori.

Kenya becomes the first country in Africa to sign a formal agreement to cooperate in the development of major investments.

TTC is a fully-fledged Japanese trading house operating diverse businesses spanning exploration, mining, distribution, processing, automotive, chemicals, electronics, machinery, and energy. 

Olkaria IV Geothermal Project launched

Olkaria IV will increase the total electricity output by 25 per cent.

Monday morning, President Kibaki commissioned the groundbreaking ceremony at Okaria IV that is expected to generate 280 megawatt of geothermal power in Naivasha.

Olkaria project, considered the largest geothermal power plant in Africa, seeks to raise geothermal contributions to 35 per cent from the current 10 per cent. The construction of the new plant, estimated to cost Ksh 82 billion is expected to be operational in 2014.

Olkaria IV, a flagship project of Vision 2030 is co-financed by KenGen and various development partners including World Bank, German Development Corporation, Japan International Cooperation Agency (JICA), the French Development Agency (FDA), and the European Investment Bank (EIB).

Companies that will carry out the construction of the plant include; Toyota Tsusho Corporation of Japan, KEC (Kamani Engineering Corporation) of India, New Zealand’s Sinclair Knight Mertz, and Hyundai Engineering Company Limited of South Korea.

Kenya signs cooperation agreements with China

By PMPS, KBC

 

Prime Minister Raila Amolo Odinga on Saturday witnessed the signing of cooperation agreements leading Chinese firms, covering energy and road construction projects meant for various parts of Kenya.

The agreements signed in Nanchang, China on Saturday include an MOU with China Jiangxi Corporation for International Economic and Technical Cooperation to develop a solar and diesel engine power plant in the country.
The agreement also provided for a concessional loan for the construction of the Mbita-Sindo-Magunga-Karungu-Masara Road and Sindo-Nyandiwa-Sori Road in both counties of Homa Bay and Migori.
Another MOU between the Government of Kenya and Zhongmei Engineering Group Ltd provides for a concessional loan for the construction of Narok-Masai Mara (C12) road to connect with Narok-Mau-Narok (C57) Road.
Engineer Maingi Mwangi, Director General Kenya Rural Roads Authority, and Engineer Meshack Kiddenda of the Kenya Highways Authority signed the agreements for Kenya.
During the ceremonies, the Prime Minister also presented to the governor of Jiangxi Province of China the power plant agreement with the Government of Kenya, signed in Nairobi on 16 July.
The Chinese Government has also accepted to extend to Kenya a concessional loan of US$ 72 million, for the National Optic Fibre Backbone Infrastructure Project and E-Government, which will provide fibre-optic, linking all urban areas in the country.

For the entire story visit: Kenya Broadcasting Corporation