Home Afrika bucks bond boom trend

Home Afrika has decided to borrow Sh500 million from banks through a private placement. This has happened after their initial corporate bond offer realized less than Sh500 million, the minimum required for the Capital Markets Authority-approved note to be declared a success. This had marked the first issue to miss the minimum borrowing target. The public offer had flopped since the market felt the firm was relatively young and the sector is not as established as the banking and insurance sectors. Therefore, the firm opted for a private placement. 80 per cent of the proceeds from the private placement are to go towards completion of infrastructure at the Migaa mixed development in Kiambu County. Llango Development in Kwale County and Lakeview housing project in Kisumu County will receive Sh50 million each. NIC Capital was the lead transaction advisor [...]

Cairo developer invests Sh2bn in Migaa clubhouse

An Egyptian private clubs developer, Wadi Degla, will invest Sh2 billion in Home Afrika’s Migaa mixed development. The joint venture will see the Cairo firm build a clubhouse, fund the completion of a golf course and construct a sports academy at Migaa in Kiambu. The construction is expected to start this quarter with completion of the golf course set for the end of the year. The sports academies should be completed in the next two to three years. Local club members will also be allowed to use Wadi Degla facilities in other countries [...]

Lobby groups push for sin tax to tackle lifestyle diseases

Lobbyists are requesting the Treasury to impose a sin tax of two percent for the health sector to mitigate ailments linked to alcohol and cigarette consumption. Sin taxes are levies on fatty and processed foods that expose people to certain conditions or ailments, including obesity and heart disease. This tax could target establishments offering foods such as broiler chicken, pizza and sugary drinks. Farmers of broiler chicken would also be included in this list [...]

Informal sector retirement savings hit Sh100 million

Data from the Retirement Benefits Authority has shown that savings under the Mbao Pension Scheme stood at Sh102 million at the end of last year with some 67,000 contributors. The number of contributors has doubled in the last two years, with employees from the formal sector also joining the scheme structured for jua kali workers who receive daily wages. Contributions to the scheme has risen by 13.4 per cent last year to Sh32.8 million, buoyed by new contributors. Employees in the informal sector save a minimum of Sh20 daily under the scheme, through M-Pesa or Airtel Money [...]

Galana-Kulalu irrigation scheme to see first planting this month
Initial planting of maize in the one-million-acre Galana/Kulalu irrigation scheme is set to begin this month so that the first harvest can be done by end of May. The project will assist in boosting food security in the country by producing more than 40 million bags of maize, to add to the current maize production of 40 million bags which is produced in other parts of the country

Apart from boosting the country's food basket, the project is expected to lower food prices, and increase food exports. Last year, the Government signed a Sh14.5 billion deal between the National Irrigation Board (NIB) and Green Arava (GA), an Israel fresh produce export company in Nairobi. The deal would fast-track the setting up of a 10,000-acre model farm to serve as a demonstration unit of the project's opportunities and achievements [...]

Mining firms to file returns online

Mining companies are now required to make regulatory filings online, a move expected to ease the process of obtaining permits in the country’s mining industry. This follows the Government’s completion of the digitization of the mining with an aim of developing capacity in the country’s nascent mining industry. Mining firms and mineral right holders will also be required to get fresh accreditation from the Government, on or before the March 2015, before being granted access to the system [...]