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Daily Nation : February 21st 2014
34 | BUSINESS DEVELOPMENT | Be careful of what you say or do Wrangles could stall economic growth, warns the World Bank Global lender says the power fight will have effect on development momentum as it will delay project implementation at both levels BY LILIAN OCHIENG’ email@example.com sion 2030, the World Bank has cautioned. The bank Warned that the cur- P rent wrangles between national and county governments on one side, and governors and senators on the other will tear the country apart and render its set policies useless. Speaking during an ac- countants’ annual symposium yesterday, World Bank country director Diariétou Gaye said this has led to too many master plans being formulated for developments in the country without execution. Taken centre stage “Talks on county government Power sharing talks are likely to disrupt plans and businesses” Ms Gaye expenditure, power sharing and procurement probes have taken centre stage in Parliament, leaving critical issues unattended to,” Ms Gaye said. “Power-sharing talks are likely to disrupt programmes, affect county businesses and prolong time-lines for execution of set development strategies,” she said. The call come as the National Assembly supports senators for ordering interrogation of governors over spending and rebuking the court for interfering with summons to the county chiefs. “It is critical for Kenya to direct attention towards development talks; the disputes come at a time when Kenya is struggling to reduce the current Sh450 billion wage bill,” Ms Gaye said. Institute of Certified Public DELIBERATIONS The other major issues at parley The bank noted that disruptions in devolved governments might further result to underperformance in key economic indicators causing Kenya to lag behind among its peers in Sub Saharan Africa. Inflation is a pointer to hard times to come, warns the bank The year Kenya plans to have attained a middle income status according to the country’s blue print 2030 DIANA NGILA | NATION World Bank country director Diariétou Gaye fields at a press briefing during a grant-signing ceremony with the Institute of Certified Public Accountants of Kenya at the bank’s offices in Upperhill on January 27. Accountants of Kenya chairman Benson Okundi said wrangles will stall attainment of middleincome status by 2030. “Kenya needs to wake up and implement outlined strategies; ICT master plan is taking too long to implement, yet it is the key to Kenya’s growth; it bears iconic projects like Konza City plan, devolved government ICT centres,” Mr Okundi said, adding, “These are the game changers in this country.” The bank predicted in De- cember last year that Kenya’s economy would grow slower than expected in 2014, rising from 5 per cent in 2013 to 5.1 per cent in 2014. “The growth momentum was lost in the second and third quarters of 2013, due to lack of government spending and inadequate transmission of the monetary policy stance to the real economy,” the Banks December Kenya Economic Update report stated. Constant bickering At, the same time, the Church yesterday warned that devolution was at risk of being derailed by the constant bickering between governors and senators. It also criticised legislators for disregarding courts, saying, such actions were a “recipe for anarchy.” Sacco to offer members current account services BY NATION CORRESPONDENT A savings and credit cooperative society in Kirinyaga County will now start offering current account services to its customers, following partnership with ABC Bank. The deal will now see Fortune Sacco use ABC Bank’s banking platform to issue cheques to its members and offer a range of financial services to enable them participate in government procurement. By law, savings and credit cooperative societies (Saccos) and non-deposit taking microfinance institutions are not allowed to offer trade finance services like bid bonds, performance bonds (instrument issued by a bank or financial institution guaranteeing the fulfilment of a particular contract), and foreign currency transactions. They are also not part of the clearing house, thus have no access to the national payment system. “We are now able to satisfy the demands of our members who have historically maintained multiple accounts to enable them access all the services they need under one roof,” Fortune Sacco chief executive Amos Kimotho said during the signing ceremony in Kirinyaga. “We will also aggressively pursue new markets and opportunities which have been created for youth and women in our county,” Mr Kimotho said. GEORGE MUNENE | NATION ABC Bank group MD Shamaz Savani (right) and Fortune sacco CEO Amos Kimotho signing the deal. ower wrangles within the devolved government could derail Kenya’s Vi- DAILY NATION Friday February 21, 2014 DATE SET FOR LAUNCH Samsung to unveil its latest smartphone on Monday Page 36 BRIEFLY DAIRY New KCC seeks to serve poor consumer New KCC has introduced a 100 millilitre packet of milk selling at Sh14. The normal 500 millilitre packet retails at Sh45. The new package known as Kabambe targets those who can’t afford the half litre pack and the mass market dominated by raw milk. This is bound to intensify competition in an industry dominated by Brookside Dairy. According to KCC’s managing director Kipkirui Langat, Kabambe has been introduced to provide safe, nutritious and affordable milk. ICT Firms partner to give advisory services Thomas Reuters has partnered with an audit and tax firm to provide a mix of software and advisory services targeting firms in East Africa in the wake of increasing regulatory scrutiny. The alliance will see KPMG give guidance and means while Thomas Reuters, a global source of intelligent information for businesses and professionals, will provide technology support. The move has been informed with growing regulatory checks within African markets, and the pair will address risk, compliance, internal audit and governance issues. VOCATION General Motors sets up youth skills centre Youth in Embakasi constitu- ency in Nairobi will are set to receive information and economic resources to better prepare them for the job market. This will be done at a centre to be set up. The centre will offer vocational training, increased access to data as well as technology transfer in a bid to reduce the prevalence of HIV and Aids among the youth. The centre is funded by General Motors East Africa. The Sh1.8 million centre was handed over yesterday by General Motors East Africa managing director Rita Kavashe.
February 20th 2014
February 22nd 2014