Andrew Stegmann

Kenyan Closures of Government Offices and Registries: COVID-19 Update

Following President Kenyatta’s directives on Sunday 15 March 2020 on the coronavirus (COVID-19) interventions, a number of the Government offices and registries have scaled down their operations and in some cases completely shut down.

Please see a high level summary below, courtesy of DLA Piper Africa, IKM Advocates.

Land Offices and Registries

Directorate of Immigration Services (DIS)

Business Registration Service

To read President Kenyatta’s March 15th speech, click here.

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.
Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

TradeMark East Africa and Mombasa County Ink $2.7 Million Financing Deal for Critical Kenyan Road

TradeMark East Africa (TMEA) and the Mombasa County Government have inked a $2.7 million financing deal towards construction of the Mbaraki-Nyerere Road.

The amount will cover design, building and supervision consultancy for the project. TMEA will provide US$2.3 million for the project.

The funding is provided through TMEA donors, with the UK Department for International Development (DFID) contributing US$ 1.7 million while Denmark’s development co-operation agency (DANIDA) contributing US$ 0.5 million. The Mombasa County Government will fund the balance amounting to US$ 0.4 million.

The project is expected to unclog the Mbaraki Wharf region and the adjacent Likoni Ferry area, which suffer frequent traffic snarl ups as a result of cargo trucks offloading cargo from oil tankers and clinker ships.

The project scope will entail tarmacking the 1.2 kilometer road, constructing a parking bay for trucks waiting to collect cargo at the oil terminal, paths for non-motorized transport, proper road drainage systems and a road solar lighting component.

The Mbaraki-Nyerere Road Project has been hailed as a ‘Green-Road Project’ by transport experts, due to the significant reduction of the carbon footprint anticipated. Speaking during the deal signing ceremony Mombasa Governor Hassan Joho noted that the project would greatly improve traffic flow in the region.

‘As a government we are committed to improving both the lives and business competitiveness of Mombasa. This project is going to tackle congestion in a short yet extremely critical and busy section of Mombasa. We are grateful for the strong support by TradeMark East Africa and its partners in this project and look forward to the project’s ground-breaking’ said Joho.

On his part, TMEA Country Director Ahmed Farah explained that the project is expected to enhance service delivery to the residents of Mombasa, tourists and most importantly the business community especially while evacuating cargo from the port of Mombasa.

‘By modernizing this road, cargo will leave the port faster, translating into reduced transport costs and ultimately reduced cost of business in one of the leading ports in the region. Further, by providing a safe and adequate parking bay for trucks in the area, we will eliminate roadside parking, which itself contributes to traffic congestion’ noted TMEA Country Director Ahmed Farah.

Head of UKs Department for International Development in Kenya, Julius Court said: “The UK Government is committed to supporting Kenya’s economic growth and this includes good infrastructure which not only provides access to basic services but also creates jobs and boosts business. Our support to this road will complement existing projects that the UK Government is funding through UK Aid and benefiting the population of Mombasa.”

Mette Knudsen, Ambassador of Denmark to Kenya said: “By combining trade facilitation with a reduction of the carbon footprint this ´Green-Road Project’ is both innovative and very important for DANIDA as well as an inspiration for the continued collaboration between Kenya and Denmark.”

Following the financing agreement signing ceremony today, design works are expected to be completed by early 2020, paving way for ground-breaking in March 2020. A construction period of 10 months is envisioned.

Over the next few days there will conclusion of the formation of KPA and Mombasa County joint technical committee to spearhead partnership and collaboration that will pave way for the two entities move this port City to new heights of global competitiveness and make Mombasa a World class Port City it ought to be.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann
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UK Partners With Kenyan Fintech Companies to Increase Financial Inclusion

The Lord Mayor of the City of London, Peter Estlin, has announced £10 million of UK Aid support towards financial technology (fintech) accelerator Catalyst Fund during a visit to Nairobi.

His visit comes ahead of the first UK-Africa Investment Summit next year, which will bring together businesses, governments and international institutions to encourage investment in a range of sectors, including fintech.

The Catalyst Fund supports business development and investor opportunities for early stage fintech companies in emerging markets. With support from the UK Department for International Development, the Catalyst Fund will help connect a further 30 local fintech companies with international investors and mentors, including Kenyan fintech companies.

Speaking during the launch at the Nairobi Garage, the Lord Mayor said, “Today’s announcement highlights the mutual benefits of closer financial co-operation to both the UK and Kenya. By forging partnerships across Africa, the UK’s financial services sector can turbocharge national economies and empower individuals financially, creating thousands of jobs and enriching lives across the continent”.

The Catalyst Fund offering combines bespoke Venture Building support from fintech and emerging markets experts, patient capital in the form of flexible grants, and curated, 1:1 connections with our circles of investors, corporates and universities.

The British High Commissioner to Kenya Jane Marriott said: Kenya’s FinTech sector is strong, diverse and growing quickly. The innovators we met today show the future of Kenya’s economic growth and I am proud that the UK is able to support their work, helping create growth, jobs and the achievement of the Global Goals in partnership between our two countries.

Amolo Ng’weno, CEO of BFA Global who manages the Catalyst Fund, added: In Kenya, access to digital financial services is no longer the major issue – today we need to work toward ordinary citizens improving their financial health, gaining new access to opportunity and accessing basic services. At BFA, we see a significant opportunity for inclusive fintech startups to play this role. However, in order to succeed, they require early stage capital, partnerships which can enable pathways for scale, and access to a high potential talent pool. Our mission at the Catalyst Fund is to accelerate these startups and strengthen the inclusive fintech ecosystem, and we look forward to working toward this goal with the support of UK Aid.

The Lord Mayor also announced through the City of London Corporation that five startups under the Catalyst Fund will be selected to attend the Innovate Finance Global Summit, taking place during UK Fintech week in 2020, helping to strengthen the links between UK and African fintech sectors.

 

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

New Kenyan Retirement Benefit Regulations

This information is courtesy of Iseme, Kamau & Maema Advocates (IKM).

The Government of Kenya, through the Cabinet Secretary for the National Treasury and Planning, published Legal Notice Number 88 of 2019 dated 13th June, 2019 which amended the Retirement Benefits (Occupational Retirement Benefits Schemes) Regulations, 2000 (the “Regulations”). Regulation 19 (5) (a) (ii) was amended to read as follows: “the scheme rules shall provide that: where a member leaves employment after vesting of his benefits but before attaining the specified early retirement age, he may opt for payment of his own contribution where he is a member of a defined contribution scheme.

The effect of this amendment was that where the employment relationship came to an end and the employee had not reached the retirement age provided for in the Trust Deed and/or the Pension/Provident Fund Rules, he/she would no longer be entitled to the employer’s portion of contributions and the investment income gained from the contributions until he attained the retirement age.

The Regulations were, however, challenged on a number of grounds including absence of public participation. The Parliamentary Committee on Delegated Legislations, upon further consideration, proposed through the attached report that the amendments be annulled. The Report was tabled and adopted by Parliament on 2nd October, 2019, thereby annulling the proposed amendments.

Consequently, employees are now entitled to 100% of their contributions and 50% of the employer’s contributions upon termination of employment.

To view the government’s document on the amendment, click here.

 

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: Snowmanradio [1], [2].