Archive for April 2012

Kenyans must embrace progressive leadership - George N Kimani

The country is now set for the next general election probably in March 2013. It will be the first general election under the new constitution.

It shall be imperative that Kenyans give chance to emergency of new brand of leaders and style of governance. This onus must be exercised in voting of leaders at all levels, from the counties representatives to the presidency

Kenyans must stamp their constitutional authority in determining the calibre of leadership they deserve. They must interrogate the aspirant’s integrity, moral values, and academic qualifications, past engagements, performance and competence.

Kenyans must discard traditional retrogressive considerations such as negative ethnicity,nepotism, regionalism, violence, materialism and general corrupt tendencies while electing their leaders. These vices have been a curse to the country and a major enemy to realization of a just, equitable and progressive society for all.

A golden opportunity to reject political manipulations, brinkmanship and conman ship by political brokers is in the hands of Kenyans. Wananchi must redefine the political destiny the country navigates to achieve cohesion, economic development, technological advancement and quality life for all.

Rejecting outdated leaders who have patronized the political arena courtesy of corruption, tribalism, nepotism and negative isms will be the turning for the rebirth of the nation. The existing clique of selfish elitist politicians must be dismantled and monopolization of political
power by a few shall be history.

It is imperative that Kenyans of all walks of lives take the time prior to the voting day to reflect soberly on the political events this country has witnessed. It would be worthy to recall regrettable political betrayals and injustices occasioned to Kenyans and vow never to have the same repeated.

Excommunication of leaders who have in the past used unorthodox means to earn power is not debatable. Leaders who court leadership riding on primitive considerations should be disowned.

Voters must discuss amongst themselves and realize that poverty, unemployment, denial of national opportunities, landlessness, disease, illiteracy, underdevelopment, infrastructure backwardness and other maladies have not spared them on the basis that their tribesmen have
been in power. Tribal chief’s leaders elevated to big offices on platform of negative isms benefits their kith and kin .They only run back to their cocoons when their interests are threatened or faced with extinction.

There is absolutely no sense to elect a governors, senators, and legislators etc who have no capacity to spearhead social economic development for betterment of lives of the citizens. Leadership must be rated on basis of achievements and development track record

I have not heard of anyone who inquired of the tribal, racial, financial muscle or such irrelevant attributes of founders or managers of vital public institutions as preconditions to seeking services thereat.The value of the services offered by such institutions overshadows any other partisan considerations.

One would be crazy to decline treatment at Kenyatta hospital on the basis that it came up during rule of a Kikuyu linguistic president. Moi University an idea of a Kalenjin speaking president continues to make positive contribution to many, irrespective of their affiliations. Russia Hospital in Kisumu a brain child of Jaramogi Oginga has rendered medical care to all irrespective of their tribes. Similarly Thika road is for all tribes irrespective of ethnic histories of the leaders who initiated and oversaw its construction

The celebrated Hire Purchase Act, CDF Act, Donde Bill etc were initiative of gallant former legislators JM Kariuki, Muriuki Karue and Joe Donde. The innovativeness and visionary leadership of these legislators dwarfs any partisan considerations or enquiries about their ethnicity or persuasions.

The bottom line is that Kenyans must demand service oriented leadership and not tribal chiefs or money baggers. Empty political rhetoric and panganga should be rubbished in the next elections. It will be backward to vote a presidential, gubernatorial, senate, parliamentary candidate etc on the basis of ethnic semblance.

In the final analysis Kenyans must embrace leaders who appreciate the country heritage and are committed to sustain it. This heritage revolves around our nation hood and the mistakes the nation has made with a view to correct the same. Kenyans must resolve to elect leaders who
sincerely talk of us instead of me, me and my people. They must be strong leaders of conviction, who will courageously talk of the mutual interests of the citizens.

The country has no shortage of men and women of honor to provide the much needed leadership. The media, religious institutions, interest groups and the general public must partner in identifying individuals who the country future shall rest. Constitutional demand for integrity
and the recent enacted Political Parties Act 2010 must be treated sacredly. Honest men and women must step forward and reclaim the public offices.

George N Kimani, the writer is an Advocate of the High Court of Kenya-gkihingo @

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Nation Media Group Guidelines for Political Advertising


Candidates, Political parties, support and lobby groups and agencies intending to take out political advertising in any Nation Media Group medium are advised that the following guidelines shall apply:

1. Any political ad/advertorial submitted for publication or as an infomercial for TV, radio, or Online, shall be vetted and published or aired only when it passes Nation Media Group’s Guidelines for Political Advertising.

2. Any material designed as advertorials or infomercials shall be clearly branded or signposted as Advertising Feature or Advertiser’s Announcement or Advertising Documentary. If the advertisement is from a political party, it shall carry an identifying logo for the party that has been registered with the Electoral Commission of Kenya, or is being used consistently by the party. The logo or other identifier should be displayed in a clearly visible or legible manner in print and online, and for at least three seconds, either at the beginning or end of each television message.

3. Advertisement scripts must provide contact details, i.e. name of sponsoring individual, group, organization or institution and an address.

4. In the event that NMG has any doubts about the identity of the sponsoring organization or group, it will insist on a telephone contact to verify sponsors’ bon fides. A letter of authority from the party accompanying the advertisement will suffice.

5. Advertisements shall be rejected outright if they contain the following:

(a) Obscene or profane language or pictorial representation that, when taken in context, tends to or is likely to expose an individual or a group or class of individuals to hatred or contempt on the basis of race, national or ethnic origin, colour, religion, sex, sexual orientation, age or mental or physical disability.

(b) Unwarranted attacks on the election agendas of rivals. Candidates/parties, sponsors, lobbyists shall, however, be allowed to promote their own election agendas.

(c) If they are obscure and touting bizarre messages, and invoking the name of God.

(d) Press cut-outs/rug-outs and archived footage shall be rejected except where they are used to rebut or clarify claims that have been made publicly and were reported in mainstream media.

6. Advertisements shall avoid exposing innocent relatives or friends of candidates to unwarranted political ridicule or hostility.

7. Political advertisements shall avoid projecting material out of context for purposes of driving a propagandist point home.

8. Reasoned and factual comments on parties’ or candidates manifestos should confine themselves to the issues actually raised by rivals, and maintain a moderate tone and language.

9. Placement: Political advertisements in NMG newspapers shall only appear after the Opinion – Editorial pages.

10. Advertisements should be sent to NMG for at least 24 hours in advance, but certainly no less than 12 hours before the time of the scheduled broadcast or print.

11. Political advertising shall not be aired or published in NMG outlets 24 hours prior to Election Day, and most definitely not on polling date itself.

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Africa Oil Corp Petroleum Exploration Activities in Kenya

Africa Oil Corp Petroleum Exploration Activities in Kenya

Africa Oil wishes to extend congratulations to the people of Kenya on the recent discovery of oil at the Ngamia prospect in Northwestern Kenya. We believe this may be the start of a significant development in the economic future of the country. Following recent speculation in the press, we are today issuing a short synopsis of our history in Kenya over the past 6 years.

Africa Oil Corp. entered the East African oil exploration industry in 2006. Over the course of the intervening years, Africa Oil acquired additional interests in Kenya and Ethiopia, but quickly focused on the East African Rift Valley in the Northern Turkana region.

During 2009, Africa Oil gained an interest in Block 10BB by acquiring Turkana Energy Inc., a private Canadian company, through a corporate transaction. Africa Oil paid for this transaction by issuing 8.3 million shares of Africa Oil to the shareholders of Turkana Energy Inc. No cash was paid in relation to the transaction, nor were any payments made to the Government of Kenya or any Kenyan Government officials or ministers.

The transaction was approved by the Kenyan Government and the TSX Venture Exchange in Canada and publicly disclosed in accordance with the disclosure requirement of the TSX Venture Exchange.

In addition to the acquisition of Block 10BB, Africa Oil has added 5 additional Kenyan properties to the portfolio including a 100% working interest in Block 9, a 30% working interest in Block 1OA and a 50% interest in Blocks 10BA, 13T, 12A.

As is customary in the international oil and gas exploration industry, Africa Oil has been able to attract additional industry participants to form joint venture partnerships in order to draw on enhanced technical and financial capabilities. Most significantly, during 2010 and 2011, Africa Oil was able to attract Tullow Oil a highly successful
Africa-focused oil company, to Kenya. Tullow acquired a 50% working interest and became the Operator of Blocks 10BB, 10BA, 12A, 13T and 10A. Tullow acquired these interests in a competitive farm-out process, which is also customary in the international oil and gas exploration industry.

Tullow agreed to pay a portion of the costs previously incurred on the blocks and to partially fund a portion of Africa Oil's future costs on the blocks. All of the proceeds Africa Oil received from the Tullow farmout have been reinvested in its Kenyan oil and gas exploration efforts.

Since its 2007 entry into the Kenyan upstream oil and gas exploration industry, Africa Oil has arguably been the most active industry participant. The Company has spent over $40 million dollars funding its share of exploration activities which include:
  • the drilling of the CNOOC-operated Bogal-1 well on Block 9, which was a major step in Kenya's renewed search for oil and gas. Prior to drilling the Bogal well, there had not been an exploration well drilled in the country for over 20 years. The Company believes it may have discovered a potentially commercial gas field at Bogal, which remains to be confirmed by further work. Africa Oil elected to enter the next exploration period on the Block, while the past Operator and other partner elected to exit Kenyan exploration altogether. Furthermore, Africa Oil has committed to the drilling of a second exploration well in Block 9 before the end of 2013;
  • the acquisition of Full Tensor Gravity data, a new cutting edge technology which allows exploration companies to accelerate their efforts and locate the most prospective portions of the exploration blocks. These FTG surveys acquired by Africa Oil and Tullow form the largest contiguous FTG survey ever acquired.
  • the acquisition of vast surveys of 2D seismic, a geologic tool used to identify prospective areas for exploratory drilling;
  • the drilling of the Ngamia-1 well on Block 1OBB, which has led to the discovery of oil for Kenya;
  • Africa Oil and its partners maintain robust community development programs in all blocks where we are active. Projects are designed and agreed in conjunction with the communities and typically focus on education, water, and buman/animal health.
As President Kibaki rightly pointed out in his speech on March 26th, 2012, when he announced the first discovery of oil in the northern Turkana region, this discovery is a first crucial step towards the possible production of oil in Kenya and associated revenues for the country.

It is just the first-step, however, and a great deal more work is required before we can confirm the full potential of what we have found. The next phase will be the appraisal of the discovery and the drilling of additional exploration prospects and we and our partners will provide operational updates accordingly.

Africa Oil and its partners are committed to continuing their exploration and potential development activities in Kenya to adequately explore, evaluate and potentially develop the petroleum resources of the country.

Be assured that Africa Oil and its partners will work closely with the Kenyan Government and all stakeholders to ensure that the benefits of this project are enjoyed by all.

Donald Mahaga
General Manager
Africa Oil Kenya B.V.

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The Raila Odinga for President Secretariat Statement on GEMA and KAMATUSA Tribal Politics

The Raila Odinga for President Secretariat


1. We note with profound concern the return of the politics of hostile ethnic polarisation -through Gema and Kamatusa.

2. We have watched in keen silence as the leaders of these organizations have rapidly and dangerously postured in public for a return to their conceptual and injurious roots of the early 1970s and 1990s.

3. From the start, Gema has always been a hegemony outfit. It has been an exclusivist organization, keen on protecting narrow sectarian interests, disguised as community interests, while marginalizing everybody else.

4. In the 1970s, Gema attempted to enforce loyalty through a narrow, stringently imposed, ethnic agenda. It engaged in coercive and widespread oathing of its members. It planted terror and fear in everybody, both within and outside the'so-called Gema communities. This history is well documented.

5. Kamatusa, for its part, came into existence in 1991 in opposition to the democratization of Kenya. In particular, it was stridently opposed to the removal of Section 2A from the Constitution and the opening up of Kenya to multiparty democracy. It demonized the search for good and accountable governance.

6. Kamatusa is notoriously remembered for the Kapkatet Declaration of 1991. This declaration was an edict to the non-Kamatusa communities to leave parts of Rift Valley Province or be forcefully evicted. This was followed by systematic ethnic cleansing in Rift Valley Province. Kamatusa committed heinous crimes against innocent Kenyans. There has been no restitution to date.

7. Over the years, Kenyans who rightfully own property in Rift Valley Province have been steadily traumatized. They have been disinherited of their property by the architects of Kamatusa. Some of these leaders have not hesitated to "inherit", personally, land belonging to evictees. It is appalling that such unjust leaders nurse ambitions of higher national office, including Office of the President.

8. If leaders can rally tribes under dangerous organizations whose history is well known, how more dangerous could they get, should the country suffer the misfortune of having them as President? How many more people would they dispossess of their property and displace, now they brazenly flaunt potentially violent ethnicity with impunity?

9. Gema and Kamatusa were never about representing the poor. Instead, both have oppressed the poor people from the communities they purport to speak for. Both are regrouping themselves around precisely the wicked old objectives and ways.

They are still protecting narrow sectarian interests. In the case of Kamatusa, the injustice of forced evictions and dispossession is once again on the cards. The big irony is that some of those targeted for the next wave of eviction are from the same communities that Kamatusa leaders fraternize with in daytime. They laugh together and hug each other during the day and plot evictions in the night.

Both Gema and Kamatusa are still attempting to enforce loyalty through a narrow ethnic agenda.They are beginning to look like cults that everybody in the tribe must kneel before.

Those who refuse are demonized and terrorized.

10. It is instructive that both Gema and Kamatusa leaders have threatened to take away the right of the people of Kenya to go to free and fair democratic elections. One speaker after the other at the Gema meeting in Limuru last month stated that there would be no peaceful elections in Kenya if Uhuru Kenyatta's name was not on the presidential ballot paper.

This is overt incitement to violence and a threat to the rest of the country. We call upon the Minister for Internal Security to assure Kenyans that they can continue to feel comfortable, at peace, and safe in the belief that they can approach the forthcoming elections without being afraid.

11. Equally instructive is the threat by Kamatusa leaders to disrupt the election calendar (read the elections). They have promised to engage in dangerous ethnic based mobilization to ensure that there will be no elections. Alternatively, they intend to unleash violence during the elections.
The Minister for Internal Security needs to reassure Kenyans against threats of this kind. We have the history of threats of this kind. It informs us that these are not idle threats. Are we safe?

12. We hail leaders from Central Kenya and the greater Mt. Kenya region, as well as those from the North and South Rift who have distanced themselves from the ruinous intentions of the two sinister organizations. This is Kenya's time. It is not a tribal moment. We cherish the pursuit of the Kenyan dream of one people, one nation, one voice.

13. Finally, the time has come when we must say a firm NO to the shameless and cheap propaganda and hate speech that has been spewed against the Prime Minister. The politics of lies, hostility and threat to violence have no room in the democracy that we crave. Democracy must be digniSed.

We are keeping a keen eye on the captains of violent lies and propaganda. We know their history very well. We know the history of Kenya. From now on, we shall no longer quietly stand by as they spin lies and use them to prepare communities for tribal violence. We shall robustly expose them for what they are.

14. Kenyans have the chance to save this wonderful country that God has given us from slipping into the culture of hate and violence of the kind we saw in 2008. It is a culture that has sunk other countries. We have no need for it. We want our children to grown up in a peaceful society where people respect and love each other.

We must begin by rejecting the captains of hate and injustice. We must reject cheap propaganda and dangerous ethnic mobilization. We must reject thos,e with no respect for citizens' rights to life and property; those who believe you have no right to live in some part of the country. This is not a tribal moment. This is Kenya's moment. Let us not lose the moment to tribal chieftains.

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Ministry of Energy Facts on Recent Oil Discovery in Turkana County

Republic of Kenya

Ministry of Energy

Facts on Recent Oil Discovery in Turkana County

Following the announcement by the Government last week of the oil find in Turkana, the media has been awash with articles on this important discovery.

The Ministry of Energy is, however, concerned about misinformation and false allegations that have been passed on to the public through some of the articles, which if not rectified could reverse the hard-earned gains so far made in oil and gas exploration in this country.

It is of paramount importance that information disseminated to the public is factual and objective. This can only be achieved through counterchecking facts with all parties concerned.

In this regard, it is noted that the Ministry of Energy was not contacted by any of the originators of the articles with false and malicious information which have been published. The Ministry therefore would like to provide the information hereunder to set the records right.

Kenya has four petroleum exploration basins namely: Lamu, Anza, Mandera and Tertiary Rift with a combined surface area of about 500,000 square kilometres.

For effective petroleum exploration these basins have been divided into smaller units called Blocks. Depending on progress made in exploration, these Blocks are revised from time to time to include new ones created to meet the increasing demand by oil prospecting companies.

Currently there are 46 of them from an initial 21 blocks in 2005.

Oil exploration which includes drilling of exploratory wells is an extremely capital intensive undertaking and for countries such as Kenya without any proven commercial discoveries (otherwise defined as frontier exploration areas), it is usually difficult to attract major oil prospecting companies.

Kenya status as a frontier exploration area, therefore, is a key disincentive to major international oil companies who have the requisite resources for underwriting attendant high petroleum exploration risks. Such major and high profile oil prospecting companies usually divert their risk capital to countries with proven and delineated hydrocarbon reserves and where production is on-stream or being negotiated.

As at 2005 only three companies, Star Petroleum, Afrex Ltd. and Pancontinental Oil & Gas were carrying out exploration in seven of the 21 Blocks. Due to the high investment risk, both Star Petroleum partnered with Dana Petroleum and invited and signed participation agreements for a number of blocks with Woodside Energy of Australia, a multi-billion dollar natural gas company.

Under these agreements, Woodside Energy became the principal partner and operator of these oil and gas exploration Blocks among them Block L5 where they sunk a dry well at a cost of more than US$90 million. Woodside Energy left Kenya after sinking that well.

Similarly in 2006 China National Offshore Oil Corporation (CNOOC), a fortune 100 company signed six oil exploration and production contracts with Ministry of Energy. To reduce its high risk exposure CNOOC invited and signed a partnership agreement with Africa Oil, Lion Energy and China National Petroleum Corporation (CNPC) for Block 9, but CNOOC remained the operator. The consortium drilled Boghal 1 well in Isiolo County which hosts the largest portion of Block 9, Anza Basin, at a cost of about US$ 26 million in 2010. However, the well was dry despite gas shows and consequently both CNOOC and CNPC pulled out of Kenya.

Africa oil took over the interests in the Block and has since then continued with exploration activities in the Block, because the Boghal 1 well has natural gas shows.

It should be noted that Formation of such consortia for oil and gas exploration is a standard common practice in the oil industry which is crucial for pooling resources to minimize exploration
risks which are usually very capital intensive.

It is encouraging that currently, 29 out of 46 Blocks are licensed to 14 foreign oil and gas exploration companies and one (1) to National Oil Corporation of Kenya (NOCK), thus making a total of 30 licenses granted. Plans are underway to drill an additional five oil wells in five Blocks; two onshore and three offshore between June 2012 and December 2013.

The entry by major foreign oil companies such as Anadarko, BG Group, Total, Tullow Oil, Africa Oil and Ophir, is a major breakthrough for confidence building in Kenya’s exploration portfolio and this is highly likely to attract more major oil firms to engage in oil and gas exploration in Kenya.

The efforts by smaller oil companies to bring on board the majors has accelerated acquisition of high quality data due to deployment of advanced data acquisition technologies such as three dimensional (3D) seismic and Full Tensor Gravity (FTG) which have since increased chances of oil and gas discoveries in the country.

The current cost of shooting 3D seismic is about US$40,000 per km square and minimum
coverage is 200 square km. The oil discovery in Block 10BB in Turkana County announced on Monday, 26th March 2012 is attributed largely to the advanced data acquisition technologies deployed by Tullow Oil, which is an equal equity partner with Africa Oil.

The history of oil discovery in the large Block B dates back to 1992 when the Block licensee, Shell, drilled two wells in Turkana County. One well, Elliye Springs 1 turned out to be dry while the second one, Loperot 1 well, intercepted about 10 litres of waxy crude oil.

Shell, however, pulled out of the Block because in their assessment there were no viable commercially viable deposits.

Exploration activities in Block B, subsequently divided into Blocks 10BA and 10BB, became dormant from 1992 until 25th October 2007 when Turkana Drilling Consortium was granted a Production Sharing Contract for Block 10BB in which Loperot 1 well is currently located. The discovery oil well, Ngamia 1 well is located about 25 Kms from Loperot 1 well.

On 15th June 2009, Africa Oil entered into a farm-in agreement with Turkana Drilling Consortium where the Consortium would transfer 100% working interest in Block 10BB to Africa Oil.

Africa Oil issued 7,499,934 common shares to the shareholders of Turkana Drilling Consortium (based on an exchange ratio of 0.20647 Africa Oil share for one Consortium share).

In addition, Africa Oil issued 787,400 common shares at a deemed price of Canadian Dollars (CAD$) 1.27 per share to the holders of convertible loans of Turkana Drilling Consortium in the amount of CAD$1million. On the basis of an exchange rate of Ksh.69.0338 to CAD$ on 15th June 2009, the final maximum share transaction amounted to Ksh.726,574,820.512.

Pursuant to the above information from Africa Oil, it should be noted that on paper this was a cashless transaction which is provided for in sub-clause 35(2) of the Subsidiary Legislation issued under Section 6 of the Petroleum Exploration (Production and Exploration) Act, Cap 308 of the Laws of Kenya which states “the contractor may assign to a person other than an affiliate part or all of its rights and obligations under this contract with the consent of the Minister which shall not be unreasonably withheld and which shall be granted or refused within 30 days of receipt by the Minister of notice from the contractor (in this case Turkana Drilling Consortium) that it intends to make such an assignment….”

The allegations in the media that the Ministry was involved in the sale of land in Block 10BB is false and utterly misplaced and appears to have been calculated to portray the Ministry in bad light. It is common knowledge that all land transactions must be processed through the Ministry of Lands and this being community land the local County Council would have been involved.

These are facts that can be easily ascertained from the Ministry of Lands and Turkana County Council.

Further, a section of the weekend press made serious allegations to the effect the Ministry had withheld Chemical analysis results of a liquid substance which was submitted by Interstate Mining Co. Ltd in 2005.

This is far from the truth as the company was handed the results at the Ministry headquarters in Nyayo house. This was after the analysis by Kenya Petroleum Refineries Limited (KPRL) as per its records dated 15th July 2006 which concluded that the sample was characteristic of Fuel Oil with no light ends. Interstate went ahead and sued the Ministry and oil companies that were conducting oil exploration in the Turkana area but lost the case.

It is, therefore, malicious to claim that the Permanent Secretary and therefore, the Ministry withheld and used the results of the analysis of the substance submitted by Interstate for other purposes.

It should be noted that Interstate Mining Co. did not disclose to the Ministry of Energy the location in which the Company had obtained the samples. Moreover, crucial scientific and geological information on the oil exploration data produced by Shell was and still remains available at the data centre of the National Oil Corporation of Kenya.

Regarding licensing of petroleum exploration blocks, the Ministry of Energy wishes to point out that this is governed by the Petroleum Exploration and Production Act Chapter 308 of the Laws
of Kenya. All contracts are based on a Model Production Sharing Contract (PSC) issued as a schedule to the Regulations issued under Section 6 of the Petroleum Exploration (Production and Exploration) Act, Cap 308 of the Laws of Kenya.

Licensing of blocks is conducted on basis of an open door policy whereby interested oil companies send in their applications directly to the Ministry. Other methods of licensing blocks such as bidding rounds will apply in future when Kenya will no longer be classified as a frontier area. This is when the petroleum potential of the country’s sedimentary basins will have been delineated and commercial reserves ascertained.

The procedure for licensing of Blocks begins with the promotion and marketing of the potential of the country’s basins and blocks to prospective investors at conferences and workshops.

Interested companies at their expenses visit the national data base at NOCK and upon undertaking some review, send written applications to the Ministry to express interest in specific block or set of blocks.

Received applications are analysed by the Ministry, after which offers are made to the applicants. An Investor has 30 days within which to accept or decline the terms contained in the offers. If the terms are acceptable the contract is processed in accordance with the provisions of the Petroleum Exploration (Production and Exploration) Act, Cap 308 of the Laws of Kenya.


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Targeting Price and Interbank Market Stability - Monetary Policy Committee Meeting, 4th April, 2012 Press Release





The Monetary Policy Committee met on 4th April, 2012 to review the relevant market developments in order to evaluate the outcome of its monetary policy stance.

The Committee observed that the monetary policy measures in place continue to yield the desired results: inflation has declined; exchange rate stability sustained; and private sector credit growth has slowed down gradually.

Detailed information provided to the Committee on recent relevant market developments shows that:
  • Exchange rate stability has been sustained thereby dampening the risks of imported inflation. The exchange rate against the US Dollar ranged between Ksh.82.27 and 83.36 in March 2012 compared with a range of between Ksh.82.65 and 83.93 in February 2012.
  • Overall month-on-month inflation continued to decline, falling from 16.69% in February 2012 to 15.61% in March 2012. In addition, non-food-non-fuel inflation remained stable at about 11.2%.
  • There was, on an annual basis, a further slowdown in private sector credit growth from 27.7% in January 2012 to 25.8% in February 2012. This has dampened demand pressure on inflation.
  • Interest rates on Government securities and certain commercial bank loan products have been declining reflecting the impact of Government fiscal measures as well as the measures announced by the Kenya Bankers Association in December 2011 to reduce any threat of loan defaults.
  • The 2011 published annual accounts of commercial banks show that the banking sector remains sound and stable.
  • Confidence in the economy remains strong as indicated by the increasing diaspora remittances that stood at USD103.98 million in February 2012.
However, the Committee noted that there were still potential risks in the economy attributed to the following drivers:

Non-food-non-fuel inflation, an inflation measure that reflects the impact of the monetary policy stance being pursued, is still above the Government short-term inflation target of 9% for the fiscal year 2011/12.

Although the growth in private sector credit has been declining, it is still above target. In particular, the demand for credit to finance consumer durables increased in February 2012.

The wide current account deficit and rising crude oil prices attributed to a geo-political risk premium remain a threat to both continued exchange rate stability and further easing of inflation pressure.

The forecast of a delay in the onset of the long rains, which may also be depressed in the main water catchment areas, could affect electricity generation and agricultural production thereby exerting pressure on domestic food and energy prices. Food currently accounts for 56.3% of the observed overall inflation up from 54.9% in December 2011.

The interbank rate has been relatively high and volatile.

In view of the above considerations, the Committee maintained its monetary policy stance by retaining the Central Bank Rate (CBR) at 18.0%.

This will ensure that inflation continues to decline towards the Government target while exchange rate stability is maintained.

Furthermore, the CBK will continue its interventions through Open Market Operations more actively to reduce the volatility in the interbank rate and bring it closer to the CBR, while ensuring consistency with the current monetary policy stance.

41h April, 2012

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Statement by the Kenya Airports Authority (KAA) on Illegal Strike Called by the Aviation and Allied Workers Union

This is to inform all our esteemed customers and the general public that all Kenya Airports Authority (KAA) facilities are operating at full capacity and there has been no disruptions of any operations due to an illegal strike called by the Aviation and Allied Workers Union (AAWU).

Kindly note that the Industrial Court via an order dated 3rd April 2012 issued an injunction against the said strike by AAWU. It is important to note that the court has declared the alleged strike illegal and all employees and the union have been served with the court order.

KAA wishes to further state that it has positioned enough personnel at all the key facilities including security screening, fire services, ground flight safety, engineering and maintenance.

In addition to this, government security agencies who ordinarily operate at all our airports are supporting the various services.

All scheduled flights have taken off and landed on time. We do not foresee any disruption of operations in our airports. Moreover, a significant number of unionisable staff have reported to work despite intimidation by those taking part in the illegal strike.

KAA prides itself in being an employer of choice. The average entry level salary and emoluments for typical unionisable stall with a KCSE qualification of grade C without any additional academic and professional qualification is Ksh 63,000 broken down as follows:
  • Basic entry salary of KShs 33,000,
  • Housing allowance of KShs 17,000,
  • Meals and shift allowance KShs 13,000.
This is way above the average in both the private and public sector salaries for officers with the same qualifications.

In addition, employees enjoy the following benefits:
  • Free transportation to and from work,
  • Medical cover for self plus spouse and up to four children,
  • Out-patient cover of Ksh 75,000 and in-patient cover of Ksh 750,000.
  • Pension employer contribution 15% with employee contributing 7.5%.
  • Additional facilities include mortgage and car loans at subsidized rates of 6% interest rate.
KAA management and union have been engaged in the Collective Bargaining Agreement negotiations up to and including Tuesday 27th March 2012 with further meetings planned.

The management was therefore perturbed that the union walked out of the negotiations process and on Wednesday 28th of March 2012, issued a strike notice.

Managing Director
Kenya Airports Authority

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Arbitration between Panafrica Builders & Contractors Ltd (PABCO) and Board of Trustees National Social Security Fund (NSSF)

NSSF Board of Trustees





Pan Africa Builders & Contactors Ltd herein referred to as PABCO entered into a building contract with the Fund to construct houses, apartments and shopping Centre on the Fund’s property Block No. 101 Kitisuru Estate at the value of Kshs.1,949,729,740/=. The contractual completion date scheduled as 11 May, 2000. The Fund hired Project Architects and Quantity Surveyors to act as consultants of the project.

Around 1999, the project was restructured and the scope of works scaled down to the value of Kshs.822,469,991/=. As a result of El nino rains and financial difficulties on the part of the Fund as well as other factors, the certificate of practical completion was issued on 23 August 2003 and official hand over of the site was done around February 2007.

After practical completion, PABCO rendered their final accounts to the Fund’s Consultants, but the accounts were never settled.

PABCO sued the Fund for a total of Kshs.1,333,545,013/=.

After the hearing by the Joint Arbitrators the award was made on 22 July 2010 and summarized as follows:-
  • Unpaid certificate of Kshs.6,676,035.00 and interest thereon of Kshs.317,079.00.
  • Loss and expenses for extension of time
  • Head office overheads of Kshs.6,947,139.00
  • Plant and Equipment of Kshs.34,559,605.00
  • Inflation of cost of building materials of Kshs.3,454,018.00
  • Loss of restructuring of the project
  • Unrecovered head office overheads of Kshs.1,474,479.00
  • Unrecovered site overheads of Kshs.1,752,255.00
  • Under-utilization of plant and equipment Kshs.7,319,596.00
  • Additional cost of remaining works of Kshs.39,316,900.00
  • Loss of profit of Kshs.120,891,968.00
  • Failure to honour payment certificate in time in the sum of Kshs.969,697.00
  • Handling charges for unfixed materials in the sum of Kshs.304,350.00
  • Interest on the aggregate amount of 14% per annum from 17th January 2003 initial payment in full.
On 31 August, 2010 Hon Lady Justice Koome confirmed the award and issued decree for Kshs.667,993,986.96 plus costs and interest. The said amount of Kshs.667,993,986.96 was to continue accruing interest at 14% per annum until payment in full.

Sometimes on 3 October 2010 PABCO obtained Court Warrant to attach movable property of the Fund in execution of the award . On 5 October 2010 Garam Investments Auctioneers proclaimed property belonging to the Fund by way of inventory. The Fund obtained a stay of execution and also applied to have the award set aside by the High Court.

On 27 January, 2011, Hon Justice Muga Apondi rejected the Fund’s application and confirmed the award given by the arbitrators.

Further to the award and the amount indicated above, the Fund received a Garnishee Order absolute issued by Hon. Lady Justice Martha Koome dated 6 September 2010 ordering the Fund to pay Kshs.170,000,000.00 Speedwings Mercantile Co. Ltd, a subcontractor of Pan Africa Builders and Contractors Limited . The said amount was to be paid on behalf of the contractor and it was to be deducted from the award.

At the time, the Fund had also received decree nisi orders in favour of Liteline Enterprises Limited, also a subcontractor of Pan Africa Builders. The High Court later confirmed the decree and ordered the Fund to pay the subcontractor.

The Board evaluated the chances of success in the Court of Appeal, the interest rate that was accumulating at approximately Kshs.7 million per month and decided to negotiate with Pan Africa Builders & Contractors Ltd. As at March 2011, the sum had accumulated to approximately Kshs.771209,686/=. After negotiations, the contractor accepted to be paid Kshs.590 million in full and final settlement of the claim.

The Garnishee Court Order to pay Speedwings Mercantile Company Ltd was initially confirmed at Kshs.170,000,000/= but PABCO instructed the Fund to pay Kshs.121,000,000/= as negotiated between them.

The Fund therefore, settled the claim pursuant to Court Orders which Pan Africa Builders confirmed. In settling the claim, the Fund paid Kshs.590 million down from the claimed sum Kshs.1.3 billion as claimed before the arbitrators.

The Board, in negotiating the matters out of court, have substantially reduced the contingent liabilities which are a burden to the members in the long term and also obtained cost savings.

We reiterate that the reforms embarked on since 2004 are still on course.

The Transformation Bill was published in 2005 and 2007. However, on both occasions, Parliament was dissolved and the Bill lapsed. It is now revamped in line with the New Constitution and seeks to enhance governance structures in the management of workers’ funds.

The process is ongoing and the Board held the Stakeholders’ Forum to discuss the Bill on 8 March, 2012 and it will now be presented to the Parliamentary Committee on Social Security and Welfare.

Indeed, as part of compliance with the RBA Investments guidelines and in a bid to invest prudently, the Fund commenced the process of recruiting Fund Managers and Custodians in 2008. The Manager/Custodians are now in place.

The Fund is currently paying a return of 7.5% on member accounts and will continue improving the rate of return on its investments for the benefit of members.

3 April, 2012

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New Trustees of the Kenya Railways Staff Retirement Benefits Scheme

Following the recent resignation of the Trustees of the Kenya Railways Staff Retirement Benefits Scheme (the Scheme), appointed by the Sponsor, (Kenya Railways Corporation), the Board of Directors of the Corporation has appointed the following persons as Trustees of the Scheme in line with the provisions of the Trust Deed and Rules establishing the Scheme for a term of three years:

1. Capt. (Rtd.) Ahmed Mumin Abdille (A retired Senior Military Officer).

2. Mrs. Rhoda Kemunto Muriungi (A prominent Nairobi Advocate and a member of the KRC Board of Directors)

3. Mr. Johnstone K. Mwinzi -(A retired Chief Government Valuer)

4. Mrs. Josephine Masibo - (Head of Human Resources at KRC)

5. Mr. Arthur Runyenje Namu — (A Financial Services Consultant).

6. Ms. Josephine Kabura Gichuhi — (An expert in Finance and Administration).

The appointments made by the Board of the Corporation are to ensure that the Scheme fully meets its mandate as specified in the Trust Deed establishing it and fully complies with the Retirement Benefits Authority Act and Regulations.

It is also noted that the election of three Trustees by the members of the Scheme will take place on 27th April 2012 after which the full Board of Trustees of the Scheme will be in place.

Background Information

The Kenya Railways Staff Retirement Benefits Scheme was formed in 2006 to take care of the retirement benefits for approximately 9,500 pensioners and 2021 active members (deferred members).

The pension Liability at the time of the formation of the scheme was Ksh. 12.6 Billion and to cover for this liability, the Government of Kenya approved the transfer of assets worth Ksh. 12.4 Billion from Kenya Railways Corporation to the Scheme.

Kenya Railways being the Sponsor of the Scheme is obliged to ensure that the Scheme succeeds for the benefit of its past and current workers.


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Ministry of Agriculture Long Rains Planting Season Message to the Farming Community





With the delayed onset of the 2012 long rains and the weather forecast of normal to below normal especially in lower parts of Eastern, North Eastern, parts of Coast, Rift Valley and Central provinces, farmers are advised to plant certified seeds of drought tolerant crops.

These include early maturing varieties maize, millets, sorghum (gadam, sila, seredo and serena), pulses (cowpeas, green grams, dolichos, beans, pigeon peas), root crops (cassava and sweet potatoes) and vegetables for food and nutrition security.

We strongly advise against planting of maize in agro-ecological zone III and above in North Eastern, Eastern, Central, Rift Valley and Coast Provinces.

We advise the use of certified seeds all the time.

Certified seeds are packed in containers/packets which clearly indicate the following; Seed lot number; Packaging date; Name of the crop species; Weight of the seeds and Seed merchant/ company.

In addition, labelling and sealing of the containers/packets are done in such a way that seeds cannot be removed without damaging the seal and label.

You are also advised to use fertilizer and/or manure as recommended for your respective zone.

For more information, please contact:

Ministry of Agriculture Offices in your respective districts.
Permanent Secretary
Ministry of Agriculture

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Kenya Wildlife Service Statement on Rhino Translocation and Elephant Poaching

Over the last couple of weeks, misleading statements have been made on the various aspects of wildlife conservation, especially the recent translocation of a white rhino to Kisumu Impala Sanctuary as well as the extent of poaching.

Contrary to these unfounded statements, Kenya has had a steady recovery of key endangered species, especially elephants, rhinos and the big cats.

Sound conservation strategies

Kenya Wildlife Service and partners have developed and are implementing management and conservation strategies for key species especially elephants, lions, hyaenas, cheetahs, wild dogs, Grevy’s zebras, hirolas and sea turtles.

We are also completing conservation strategies for giraffes, bongos and roan. These efforts are bearing fruit and we are ready to share this information with interested individuals and groups.

We take pride in the fact that despite pressure on land by growing human population and competing land uses, we have secured at least one million acres of land for wildlife through community conservancies and private ranches across the country.

Challenges of conservation

At the outset, we recognise that conservation is facing challenges including poaching, loss of habitat, adverse effects of climate, wild fires and livestock incursions into protected areas. Indeed, we are experiencing worrying trends in wildlife crime though this must be understood in its global context. We keep our Government and other partners informed about these trends, formulate appropriate strategies and seek the necessary support to implement them.

Therefore, it’s not true that poaching is worse than it was at the peak of poaching in the late 1980s.

National and international obligations

As a institution conscious of its national and international obligations, KWS provides scientifically sound and accurate statistics on elephant poaching and other wildlife to the public, the media, government and other interested local and international organisations.

Indeed, we take pride that as an institution overseeing a critical public resource; our decisions are based on sound science and are verified by stakeholders. Kenya is internationally acknowledged for its robust wildlife data collection and recording systems.

Regular wildlife censuses

The information we provide is collected and shared in consultation with stakeholders, both local and international.

We conduct regular censuses for various key species of wild animals and share results with the public and stakeholders. The presence of independent stakeholders and the media to verify the census process and results is a testament to our transparency.

Therefore, poaching can’t be worse than it was in 1989 given that Kenya’s elephant population has been growing at a healthy rate of 4 per cent per annum as evidenced by our census results.

When KWS was formed poaching was at its peak with the elephant population estimated at barely 16,000 from a high of 167,000 in the 1960s. Kenya’s population has steadily recovered to the current 37,000 individuals, thanks to the efforts of KWS and stakeholders.

It is important that the public appreciates that frequent seizures of ivory on transit at Kenya’s main airports does not necessarily originate from local illegal killing of elephants. We have tightened controls at all our airports and regularly report trophy seizures.

Our records indicate that Kenya lost 278 elephants to illegal killings last year. This is factual. KWS will continue offering accurate and timely information on wildlife population dynamics to the public. Kenya has also registered remarkable success in its rhino programme despite incredible demand for rhino horns in some Asian countries.

Kenya’s rhino, both black and white, has doubled since early 1990s from an estimated 500 to the current slightly over 1,000. In the last five years, Kenya has recorded average of 4.5 per cent growth.

Unfounded allegations

As an institution, we have robust systems of sharing information on conservation activities and developments with the public.

In particular, we widely shared the reasons for the white rhino translocation on our website We also issued a media release on the same matter. We are ready to provide further clarification on the translocation.

Translocation any species of wildlife is informed by clearly spelt out internationally and nationally accepted protocols, criteria and guidelines.

So far, no conservationist has approached us to dispute the logic behind the action nor offered an alternative. Any criminal activities, within or without KWS, are swiftly dealt with as provided for by the law. This should be reported to KWS and other law enforcement agencies.

White rhino translocation

The background which necessitated the translocation of the white rhino to Kisumu and has been widely shared is as follows:

The white rhino released recently in Kisumu Impala Sanctuary was raised at Ol Jogi Ranch in Laikipia and was then relocated to Mugie Ranch in Laikipia. However, because he had been hand raised he proved a security risk as he constantly sought human company. As such, KWS was compelled to transfer the rhino to Nairobi National Park.

Here again, in search of people he took to frequently leaving the park to residential areas of Kitengela and Ongata Rongai where he caused unnecessary panic, despite the efforts of the rangers to keep him in the park.

There was a very high likelihood that he would be poached as he was frequently near the fence-line. Besides, the likelihood of the rhino injuring or killing people could not be ruled out. Significant security resources were thus being diverted to protect a single animal.

Options Considered

KWS considered various options including placing him in the Safari Walk but there is already a rhino there.

Moving him to a fenced area such as Lake Nakuru National Park would have almost certainly led to him fighting with other dominant white rhino bulls or to him walking the fence-line once more (which would have meant that a number of KWS rangers would have had to walk with him, thereby being diverted from their wider duties).

Intense Rhino Poaching

The decision to send him to Kisumu Impala Sanctuary was guided by Kenya’s policy concerning the protection of white rhino, which is: to manage the species for community conservation, education and tourism and as a conservation resource for restocking white rhino ranges outside of Kenya.

KWS has a duty and a fundamental commitment to protecting and conserving Kenya’s wildlife heritage. However, inevitably there are certain individual wild animals that cannot be successfully returned to the wild, especially when they have been hand-reared, rescued or injured. KWS has genuinely evaluated the available options for this particular rhino but his previous history has made a wild life simply far too risky, particularly during these challenging
times when rhino poaching is so intense.

Welcome public participation

We appreciate the concerns for the rhino’s welfare that have been expressed and believe his relocation to Kisumu is in his best interests. Kisumu Impala is a welfare facility dedicated to the care of sick, injured and orphaned wildlife.

As a responsive public institution, we welcome stakeholders and the general public to raise whatever concerns they have on wildlife conservation with us.

Our doors are open for consultation as we discharge our mandate as provided by the law.

Corporate Communications Manager
Kenya Wildlife Service
+254 20 2379407-15/ 0771 058006

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The GEMA Cultural Association (GCA) Limuru II Declaration

The GEMA Cultural Association (GCA), an organisation committed to working towards a united
Kenya by promoting understanding and cooperation among the Kenyan people, convened a
Strategic Leaders Forum on 23rd day of March 2012 at the Jumuiya Conference Centre, Limuru
to explore ways of ensuring the realization of the unity of members, to deliberate on issues
affecting their welfare, and to enhance harmonious co-existence with their brothers and sisters
all over the country.


1. THAT efforts be redoubled to ensure that all remaining Internally Displaced Persons (IDP’s) are settled without any undue delay, and that this resettlement be concluded by end of June 2012, and reparations be accorded to these unfortunate victims of the Post- Election Violence;

2. RECOGNIZING that there is a real threat to peace and stability if Kenyans are not guaranteed Free, Fair and all-inclusive Elections:

i) We unreservedly express our support for the decision by the Independent Elections and Boundaries Commission (IEBC), as the only constitutionally mandated institution to set 4th March, 2013 as the date of the next general election;

ii) GCA re-affirms its respect for the Rule of Law, including the ICC process, and recognizes the constitutional rights and fundamental freedoms guaranteed to all Kenyans in our Constitution and in the Universal Declaration of Human Rights including the presumption of innocence until one is proven guilty

iii) It is a stated objective of the International Criminal Court (ICC) that it does not wish to interfere with our constitutional right to elect a candidate of our choice, GCA therefore petitions the ICC to reorganise its diary and schedule the trial so that it does not run concurrently with the Kenya’s campaign and election calendar. This will ensure that Kenyans are not deprived of their constitutional right to elect leaders of their choice in free, fair and all-inclusive elections.

iv) In this regard, we petition the ICC through the Government machinery to SCHEDULE trial dates which do not coincide with the Kenya’s electoral calendar in the interest of having peaceful elections. The trial should be done after the forthcoming General Elections.

v) In support of this petition, GCA commits itself to collect over 2 million signatures to support this appeal before the ICC and if necessary, to take this matter before the United Nations General Assembly for adjudication.

3. APPRECIATING the benefit of working in an organized, coordinated and harmonious way, both intra & inter community, the GCA APPOINTS, EMPOWERS AND MANDATES Deputy Prime Minister, Hon. Uhuru Kenyatta to:

i) offer the GCA community political leadership and to work with all like-minded Kenyans driven by compassion and passion to bring reconciliation, peace, and justice for all Kenyans

ii) to convene a national coalition of other like-minded leaders and political parties from all parts of our country to unite and work together in solidarity AND within the framework of the Political Parties Act, to PROTECT the interests of our community and to SAFEGUARD the future our nation.

iii) It was noted and underlined that the best way to achieve this noble goal is through one political vehicle which shall provide united leadership going into in the forthcoming General Elections.

iv) It was affirmed that the agreed upon political vehicle shall be named within the next 30 days upon consultation with all shades of national political leadership across the country

4. GCA express its GRATITUDE and APPRECIATION to H.E. the President of the Republic of Kenya Hon. Mwai Kibaki for his wisdom and leadership in steering this nation to unfathomable heights and specifically for the enormous progress that has been realised, the revitalisation of our economy, the realisation of a new constitutional dispensation, enviable growth of infrastructure and achieved regional peace security and stability.

i) In this regard, we particularly express SOLIDARITY all our Kenyan sons and daughters in our National Defence Forces currently engaged in safeguarding our borders and ensuring that we have peace and security in the region.

5. GCA salutes the entire community and all Kenyans of good-will, and expresses it gratitude and appreciation to the organisers and all delegates to this the Limuru II Leadership Forum.

6. The meeting resolved to open an account to help in legal fees for the ICC process and to assist the IDPs.

7. The meeting resolved as a matter of urgency to form a committee made up of GCA officials and members of Parliament to steer the implementation of the resolutions.

Bishop Dr Lawi Imathiu
Chairman, GEMA Cultural Association

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