Economy Archives - Nairobi-Times

EAC approves funds for Lake Victoria biodiversity

admin — Fri, 10 Oct 2025 10:25:58 +0000

East African Community (EAC) member states have endorsed a joint plan to strengthen maritime safety and curb pollution in Lake Victoria.
The resolution was reached during the first extraordinary council of ministers’ meeting of the Lake Victoria Basin Commission (LVBC) convened in Kisumu, where senior officials from partner states charted new measures to enhance safety, environmental protection, and sustainable use of the shared resource.
The meeting, chaired by Kenya’s Principal Secretary (PS) for East African Community (EAC) Dr. Caroline Karugu, on behalf of Cabinet Secretary Beatrice Askul, reached consensus on two key issues — the operationalization of the Lake Victoria Maritime Rescue Coordination Centre (MRCC) and the allocation of €15 million (Sh2.2 billion) from the Government of Germany through KFW Development Bank to support pollution control and environmental sustainability efforts across the basin.
Dr. Karugu said the initiative marks a major milestone in ensuring the safety of communities that depend on the lake for transport, trade, and livelihoods.
“According to the International Federation of Red Cross and Red Crescent Societies, we lose nearly 5,000 East Africans annually on Lake Victoria. One death is one too many especially when these are preventable. Our collective goal is to make Lake Victoria safe for transport, for our fishermen, and for all who depend on it,” she said.
The meeting attended by representatives of ministers from Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan resolved that the main Maritime Rescue Coordination Centre will be headquartered in Mwanza, Tanzania, with two subsidiary centres in Kisumu, Kenya, and Entebbe, Uganda.
The centers will coordinate a network of 16 search and rescue stations—nine in Uganda, three in Tanzania, and four in Kenya to improve emergency response times and ensure faster rescue operations in the event of accidents and emergencies in the lake.
Dr. Karugu said that a toll free number has been secured adding that the partner states were engaging telecommunications operators in Kenya, Uganda and Tanzania to integrate it on their respective networks to aid in the search and rescue operations within the lake.
“The idea is that anyone navigating Lake Victoria should have a number to call and the assurance that help will come. We want the lake to be safe to spur economic growth,” she said.
The council also approved the use of €15 million (Sh2.2 billion) from Germany’s KFW Bank to implement measures aimed at reducing pollution, rehabilitating wetlands, and strengthening waste management systems around the lake.
LVBC Executive Secretary, Dr. Masinde Bwire, lauded the ministers for their decisive guidance, describing the resolutions as a new chapter for regional cooperation.
“Pollution remains one of the greatest threats to the lake’s survival. By allocating these funds to combat it, the partner states have taken a bold step towards reversing years of environmental degradation,” he said.
He added that the LVBC Secretariat has been directed to fast-track staffing and operational arrangements for the Mwanza centre to make it fully functional.
Uganda’s Permanent Secretary for Water and Environment, Mr. Alfred Okidi, who represented the Minister for Water and Environment, said the agreement underscored the essence of regional integration.
“Lake Victoria binds us, sustains us, and reminds us of our shared destiny. This project will not only improve safety on the lake but will also strengthen our management of water as a critical resource. Protecting it requires united action, and what we have witnessed in this meeting is exactly that,” he said.
He urged citizens across the basin to support pollution control efforts by adopting environmentally friendly practices and safeguarding water resources for future generations.
From South Sudan, Undersecretary for Water Resources and Irrigation, Achier Manyuat, termed the meeting as a model of regional cooperation, saying the safety of one partner state translates into safety for the entire community.
“The €15 million resource will benefit all of us, especially the three countries bordering the lake. The safety of one member state is the safety of all,” Manyuat said. “We deeply appreciate Kenya’s leadership and the chair’s moderation of this successful session.”
Rwanda’s representative, Glory Mbabazi, the Second Counsellor at the Rwandan High Commission in Nairobi, lauded the establishment of the maritime rescue centres as a historic milestone for the region.
“We have lost lives before, but this initiative brings renewed hope. It shows what we can achieve when we come together as East Africans. Integration gives us unity, social cohesion, and collective strength. This is a proud moment for the community,” she said.
Tanzania’s Deputy Permanent Secretary in the Ministry of Transport, Ludovick Nduhiye, reiterated his country’s commitment to hosting the regional rescue coordination centre in Mwanza.
He added that the government of Tanzania will second staff to the maritime center to ensure that operations kick off at the earliest opportunity possible.
“Tanzania welcomes the responsibility to host the MRCC and will ensure its full operationalization. Lake Victoria is central to our people’s livelihoods and trade. Strengthening safety and reducing pollution are priorities we share with all partner states,” he said.

by Chris Mahandara

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Government seeks expanded investment in dryland development

admin — Thu, 02 Oct 2025 12:35:39 +0000

The government has called for robust investment in building resilience and inclusivity in pastoralist and dryland communities, urging policymakers and development partners to view the regions as national assets rather than marginalized areas.State Department for Arid and Semi-Arid Lands (ASALs) and Regional Development Principal Secretary (PS), Kello Harsama said Kenya’s drylands remain central to the country’s growth.“Kenya’s ASALs cover 80 per cent of our landmass, support millions of livelihoods and are home to rich cultures and ecosystems. These landscapes are not marginal; they are strategic national assets,” said Harsama.In a speech read on his behalf by Acting Secretary in the State Department for Arid and Semi-Arid Lands (ASALs) and Regional Development, Ambrose Lorre during a forum on pastoralism and resilience in Nairobi, Harsama explained that pastoralism, rooted in dryland communities, is a dynamic and forward-looking system contributing significantly to food security, economic growth and ecological balance.

He noted that last year’s pastoralist policy dialogue in Wajir marked a turning point in Kenya’s approach, with bold commitments made on restoring rangelands, safeguarding pastoralist values and addressing land degradation.“This forum is not just another meeting in a city hotel, but a platform for deep reflection, collaboration and co-creation of solutions that are locally-led and globally relevant,” he said, adding that its outcomes will align with global discussions such as the 2026 International Year of Drylands and Pastoralism and the UNCCD COP17 in Mozambique.Harsama urged participants to ensure no community is left behind and no rangeland lost to degradation, stressing that inclusive dryland investment remains a government priority under the Sectoral Policy Framework.The PS further suggested that future meetings should be held in locations of pastoralist communities rather than in capital cities.Intergovernmental Authority on Development (IGAD) Deputy Executive Secretary, Mohamed Abdi Ware, underscored the importance of shifting perceptions about pastoralist communities.“For IGAD, pastoralism is central because much of our landmass is arid or semi-arid.

These regions are where peace, security and regional integration converge,” said Ware.He challenged governments and partners to change the narrative from viewing pastoralists as marginalized or conflict-prone to recognizing them as resilient and resourceful.Ware also highlighted IGAD’s flagship programmes on pastoralism and the Drought Disaster Resilience, which has attracted significant investment from member states.“Pastoralists occupy some of the most valuable land in our region. Without strong governance, these communities face enormous pressure from commercial and external interests. We must safeguard their rights and ensure pastoralist land use is sustainable,” Ware added.Executive Director of ENDA Energie and Chair of the Global Network for Disaster Reduction, Emmanuel Seck, emphasized the human dimension of resilience, cautioning against approaches that exclude local communities.“Beyond research and resilience, there is humanity. If we do not put people at the center, then our work only benefits academics and policymakers without action on the ground,” said Seck.He observed that marginalization, lack of infrastructure and exclusion from political decision-making remain major challenges for dryland communities.Seck called for stronger cross-border cooperation through IGAD, the Great Green Wall and other regional frameworks to secure sustainable development.He praised initiatives such as Supporting Pastoralism and Agriculture in Recurrent and Protracted Crises (SPARC) for advancing political dialogue on pastoralism and influencing global policy declarations linking climate change, conflict and peace.Seck cited practical innovations including solar-powered milk chilling units, drought-resistant farming and agroforestry as examples of resilience at the community level.“Drylands are not barren. They are rich in biodiversity, culture and solidarity. Where communities may appear to have little, they share everything. That is true wealth,” he said.He however, warned of the risks posed by declining international aid and shrinking climate finance, stressing that development risks becoming extractive and exclusionary if it ignores the socio-ecological realities of drylands.The forum is expected to lay the groundwork for joint strategies to strengthen food security, promote regional integration and build a sustainable future for communities living in arid and semi-arid areas.

By Naif Rashid & Darlene Kuria

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Government remains on course in revitalizing the economy

admin — Tue, 30 Sep 2025 12:56:52 +0000

The Deputy Chief of Staff in charge of Performance and Delivery Management, Eliud Owalo, has lauded the ongoing government efforts in revitalizing the country’s economy, citing reduced inflation, stronger revenue collection and improved foreign exchange reserves as key indicators of recovery.

Speaking during the Economists Society of Kenya’s (ESK) annual conference at a Kwale hotel, Owalo says the economy, which was “on its deathbed” in 2022, was now on a firmer footing, following deliberate fiscal and monetary interventions by the Kenya Kwanza regime.

The Deputy Chief of Staff, noted that inflation has dropped significantly from 9.2 per cent in 2022 to 4.5 per cent in 2025, while the shilling has strengthened against the dollar, appreciating from an average of Sh160 to Sh129 during the same period. “Revenue collection has grown from Sh1.9 trillion in 2022 to Sh2.9 trillion today, while the fiscal deficit has narrowed from 6.2 per cent to 5.8 per cent,” he said.

Owalo further stated that foreign exchange reserves rose from $7.7 billion in 2022 to $10.9 billion by August 2025, while on lending rates, he acknowledged the challenges posed by the tight monetary policy, but said stability has now been restored, with the rates currently standing at 15.24 per cent after spiking to over 20 per cent in the past year.

Addressing public debt concerns, Owalo said Kenya’s debt rose from Sh8.76 trillion in October 2022 to Sh11.81 trillion by June 2025. However, he emphasised that the debt-to-GDP ratio has slightly improved, falling from 68.7 per cent to 67.8 per cent. “You cannot look at debt in isolation. What matters is how borrowed funds are used to expand the economy and increase the value of goods and services,” he explained.
Looking ahead, the Deputy Chief of Staff, pledged more efficiency, transparency and accountability in government.

He revealed that an Office of Government Efficiency had been established under his portfolio to streamline processes, enhance service delivery and curb revenue leakages.
“We want to seal loopholes that allow revenue loss and stop public officials from dipping their hands into the public jar,” he said

Furthermore, Owalo added that only recently, the government carried out a midterm review of its development plan and will introduce targeted interventions to address lagging areas, while consolidating progress made so far.

By Sadik Hassan

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Co-op Bank bets on Naivasha horticultural fair to power Kenya’s Sh137.3b agribusiness sector

admin — Thu, 25 Sep 2025 10:00:42 +0000

Under the three-year sponsorship agreement, the bank says it is deepening its commitment to the horticulture industry which earned $1.06 billion (Sh137.3 billion) in export revenue in 2024 and employs over 40 per cent of Kenya’s population, according to the state department for agriculture.

Co-operative Bank head agribusiness Olive Ong’ele said that as Kenya’s leading agribusiness financier, it is a strategic investment in Kenya’s economic future.

“We’re directly engaging with 12,000 industry stakeholders because we understand that the success of Kenya’s horticulture sector requires dedicated financial leadership and innovative solutions tailored to this critical industry,” said Ong’ele.

According to the lender, the sponsorship aligns with its long-term goals of strengthening support across key sectors including horticulture, tea and coffee. Kenya’s horticulture sector is a significant contributor to the country’s export earnings, through the export of flowers, fruits and vegetables to international markets.

Flower exports alone are projected to reach Sh110 billion (US$851 million) in 2025 as per forecasts from the Kenya Flower Council.

The Naivasha Horticultural Fair serves as a crucial networking platform where exporters, growers, suppliers, and service providers converge to explore business opportunities and share industry insights; and their significance cannot be overstated for Kenya’s economy.

According to Kenya National Bureau of Statistics (KNBS) data, agriculture contributes 21.3per cent to GDP and accounts for 65 per cent of national export earnings, making events that strengthen industry networks and showcase innovations directly impact millions of livelihoods.

Co-operative Bank’s participation in the fair highlighted its specialised agribusiness banking solutions, including export financing, supply chain financing, and tailored loan products for horticultural enterprises.The bank’s representatives engaged with fair participants to discuss customized financial solutions that address the specific challenges facing the sector.

” Our specialised solutions address the sector’s most pressing challenges: from seasonal cash flow management for smallholder farmers to sophisticated export credit facilities for major flower exporters shipping to Europe. When Kenya’s horticulture exports grow, we ensure our clients have the financial infrastructure to capitalize on every opportunity,” added Ong’ele.

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KeNHA announces temporary closure of a section of Mombasa-Nairobi Highway

admin — Thu, 25 Sep 2025 09:45:23 +0000

The Kenya National Highways Authority (KeNHA) has announced a temporary closure of a key section of the Mombasa–Nairobi Highway

The road will be closed between Makupa Bridge and Changamwe Interchange, starting Tuesday through Saturday this week.

In a public notice, KeNHA stated that the closure is necessary to facilitate ongoing road construction and drainage improvement works, which are part of a broader plan to enhance connectivity and safety along the critical corridor.

“KeNHA advises motorists to follow the proposed traffic management plan and cooperate with police and traffic marshals on site,” the statement read.

The authority emphasised that the short-term disruption is aimed at achieving seamless road connectivity between the island and mainland sections of Mombasa, a region notorious for traffic congestion and periodic flooding.

This latest closure extends earlier restrictions implemented in August, when KeNHA announced a two-week partial closure of the same stretch, citing similar reasons.

That phase of work began on August 23 and was initially scheduled to end by September 7, 2025.

The Makupa–Changamwe section is considered one of the most strategic transport corridors in the country. It serves as a primary gateway for goods entering and leaving the Port of Mombasa, making it vital for Kenya’s import-export economy and regional trade.

In addition to commercial freight, the road also supports high volumes of commuter and passenger traffic, linking Mombasa Island to mainland towns and beyond.

As part of the A109 Mombasa–Nairobi Highway, the section plays a crucial role in connecting the coastal region to Kenya’s interior and neighboring countries such as Uganda, Rwanda, and South Sudan.

Delays or disruptions along this corridor can have ripple effects across supply chains, trade logistics, tourism, and local commuting. KeNHA has, however, assured the public that the project will be executed efficiently, with minimal inconvenience, and called on all road users to exercise patience and cooperation during the construction period.

The authority has not indicated whether further closures will follow, but ongoing upgrades are expected to continue as part of broader efforts to modernise infrastructure in the region.

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