Connect with us

News

Kenya’s Coal Mining Criticized By Climate Activists.

Inversk Review

Published

on

The United Nations Environment Programme (UNEP) Assembly has turned their focus on Kenya concerning flouting of climate change mitigation policies as it hosts the One Planet Summit in Nairobi today.

Emmanuel Macron from French and President Uhuru are most likely to be confronted by protests from civil society groups, which have accused Kenya of having double standards in pursuing policies that are against climate change mitigation efforts.

Pan African Climate Justice Alliance which is a continental coalition of non-governmental organisations, had groups under its umbrella point out that while Kenya has been announcing its success in banning use of plastic bags it at the same time encourages the mine of coal in Kitui County and also build a coal-fired power plant in Lamu County. The Executive Director of PACJA Mithika Mwende says the projects will have a worse effect on the environment that plastics would have. “This is a huge contradiction. Kenya should abandon the coal mining project because that’s not good for a country that wants to be an African example in promoting climate change mitigation,” said Mwende on Wednesday.

He explains that Kenya has vast sources of energy that are renewable, inclusive of geothermal, wind and solar and therefore does not need to exploit fossil fuels that could be harmful to both humans and the environment.

Mwende was speaking at a high-end mini-summit that had delegates from 120 countries in attendance. Some of the representatives were from UNEP, The African Union, The African Development Bank, Universities and Business leaders. He assured that the matter will be presented in the main summit.

It was said that undertaking the coal project goes against the UN Sustainable Development goals, the African Union Agenda on energy, multilateral environmental agreements and the Paris Declaration, to which Kenya is a signatory.

Kenya being the headquarters for UNEP, they are required to show commitment to scaling up environmental protection and providing good leadership to the rest of the African countries. “Kenya is the leading African country in geothermal power production and the ninth in the world. It is also blessed with enormous solar and wind power potential. Pursuing coal mining reflects some hypocrisy on part of the government,” he said.

He mentioned that South Africa, which had begun stepping out of coal mining despite the fact that people have lost their jobs should prompt Kenya to take up the decision and move towards green energy and save the environment.

PROTEST

The PACJA is the largest alliance of civil society organisations, with more than 1,000 members drawn from 45 countries.

The civil society groups said they will denounce the One Planet Summit, where President Kenyatta will launch the call to action to prevent, halt and reverse the loss of forests in Africa, as a protest to Kenya’s contradictory policies.

Kenya is the first African country to host the One Planet Summit, launched by President Macron in December 2017.

The summit will showcase Africa’s strengths as a vibrant place for climate innovation and investments, with advances in sustainable business models, climate-smart agriculture, green bonds, and renewable energy.

The regional principal officer for Climate Change and Green Growth Programme at the African Development Bank, Mr Somorin Olufunso, mentioned that environmental challenges cut across borders, and leaders should formulate common positions to address the challenges.

The director of the Nairobi-based Environment and Climate Change Institute Mr. Jacob Olonde said the One Planet Summit will be unachievable because is business oriented and as such its main aim will be to make profit and not necessarily to conserve the environment.

He said the resolutions made at the summit will be difficult to implement because the need to protect the environment has been replaced by the greed for money.

Officials in government were not represented in the meeting, but Environment  Cabinet Secretary Keriako Tobiko had earlier made it known that adopting cutting-edge technologies and innovations will be fundamental in solving environmental challenges.

 

 

Comment using Facebook

Inversk Live is Kenya's most incisive and informative platform to learn about business news, technology, markets, companies, startups, leadership advise, curated business and industry opinion, and affluent lifestyles.

Companies

National Bank Issues A Profit Warning Due To Higher Loan Impairment And Restructuring Costs

News Team

Published

on

The National Bank of Kenya (NBK) has issued a profit warning for the financial year ended December 2018 citing higher loan impairment charges and restructuring costs. The bank which is a listed lender of The Nairobi Securities Exchange will now be expected to post at the very least  25% lower earnings for the year ending December 2018 than the previous year. The anticipated drop means its net profit for the period is unlikely to surpass Sh308 million. “(This is) primarily due to increased loan impairment charges beyond initial projections due to a revision of valuations and values recoverable from the non performing loan portfolio,” said the firm in a cautionary statement.

“During the year the group incurred a one off restructuring cost (voluntary early retirement programme) as part of wider business alignment, the full benefit will be realized in 2019,” the statement added. NBK has in the recent past registered a series of poor performance that has pushed its survival into an uncertainty mode.

The lender is in the grip of an operational crisis, stuck in a negative liquidity position as at the end of the first nine months of the year even as plans to sell it remain in limbo. The NBK’s nine-month profit dipped by 84 per cent to Sh21.97 million as a result of reduced lending.

Loans and advances to its customers dropped by Sh9.9 billion or 17 percent to Sh48 billion compared to last year’s nine month position of Sh57.88 billion. The Treasury has approved for sale of NBK among other two State owned lenders who are, Consolidated Bank (CBKL) and the Development Bank of Kenya (DBK) along with a number of other parastatals.

The plans are, however, yet to take off even after the State sought to hire a chief manager in charge of transactions as it moved to unlock the stalled sale. The NBK’s core capital stood at Sh2.34 billion at the end of September 2018, about four times thinner than the Sh9 billion it had in September last year, leaving it significantly in breach of regulatory capital ratios and therefore constrained in its ability to lend.

Although its liquidity ratio is above the minimum requirement of 20 percent, the NBK’s total capital to total risk-weighted assets stood at a deficiency of or negative 10.4 percent as at the end of the first nine months of the year. The NBK’s core capital to total deposit liabilities stood at a negative or deficiency of 5.5 percent while core capital to total assets stands at negative 7.9 percent.

Faced with such a dicey situation, the lender has a constrained room to take in more deposits. The Treasury has injected limited amounts of capital into the lender which has not been sufficient to put the banks in the right legal position on the ratios. The NBK was compelled to continue running on constrained capital after the Treasury and National Social Security Fund (NSSF) missed own-imposed deadline of injecting Sh4.2 billion fresh capital.

The NBK said late last year that it was still awaiting the money that ought to have come in by end of September, according to the formal commitments made by the Treasury and the National Social Security Fund (NSSF) in March last year. “In March 2018, the principal shareholders gave formal commitment for a comprehensive capital solution. The board notes that this process is ongoing,” said CEO Wilfred Musau. “The capital injection will unlock and bolster the key pillars of our growth and place the bank in even a better probability path in the long-term.”

But the delay leaves the NBK in a precarious situation given that the same government has for long been mulling over merging the bank with DBK and Consolidated Bank. The NSSF owns 48.1 percent of the NBK while Treasury holds 22.5 percent stake, making them the two principal shareholders.

Comment using Facebook

Continue Reading

Local News

Kenyan Government Saves Sh700M By Buying Police Uniforms Locally

Inversk Review

Published

on

The Kenyan government will save a total of Sh700m by manufacturing of police uniforms locally. This is according to Interior CS Fred Matiang’i.

Matiang’i spoke on Monday when he led top government officials to inspect the production progress Police Uniform making at NYS.. “I am happy and proud to be a Kenyan and we are supporting our own. The money we use for these goods and services is not our money… isn’t it wise to support local content?” he posed.

The CS was impressed with the progress so far where 1000 pairs being produced per day and urged government departments who make their uniforms to do so locally.

Sewing the uniforms locally was part of government’s initiative to support local industries through #BuyKenyaBuildkenya initiative.

Comment using Facebook

Continue Reading

Local News

Open Doors and Offer Mentorship to Fresh Graduates, SMEs Urged

Kimani Patrick

Published

on

Speaking during the first Business Clinic by Optiven Group at Barlays Plaza 15th floor, Mr. George Wachiuri on Friday evening urged other business owners to give opportunities for learning and mentorship for fresh graduates.

The businessman who has investments in real estate, construction and hospitality noted that most SMEs are reluctant in offering internship opportunities for fresh graduates while at the same time ask for experience before hiring them. Mr. Wachiuri, advised that if the over 800,000+ annual graduates from local universities are offered opportunities to turn their learned skills into practical experience, they’d steer small businesses into giants.

The Optiven Group Founder & Chief Executive also urged the government to assist in formalising the 5.3M informal businesses into formal business as well as give them tax exemptions for at least 5 years as they build their brands. “By exempting these business from the tax burden, these businesses will use their revenues to create more employment for our youth thereby solving the problem of unemployment,” Mr. Wachiuri observed. “Every year, about 400,000 businesses die due mainly due to poor management skills, lack of operational resources/capital as well as taxation.” He added.

Mr. Wachiuri reported that his organisation is leading by example and through their graduate trainee program, 50 graduates get trained each year. This is in line with the company’s mission to provide 30,000 direct jobs by the year 2030.

Comment using Facebook

Continue Reading

Trending

Copyright © 2019 INVERSK GROUP. Developed by ITIPS

shares