Good morning! Let’s dive into today's top stories from Business Daily. || Dec 24, 2024
Kenya oil block licences expiry rekindles Somalia border row
The expiration of Eni's oil exploration licenses in the disputed Lamu Basin waters this month has reignited the maritime boundary dispute between Kenya and Somalia.
The contested area, covering 100,000 square kilometers in the Indian Ocean, is believed to be rich in oil and gas reserves, making it a significant point of contention between the two nations.
Portland Cement factory shut as workers protest against new boss
The East Africa Portland Cement Company (EAPCC) halted operations on December 23, 2024, as employees protested the appointment of new managing director Bruno O. Obodha, citing concerns over his qualifications and potential conflicts of interest.
The protesting workers claimed that during the November interviews, acting MD Mohammed Adan emerged as the best candidate, scoring 88.15 percent, while Obodha scored 64 percent.
Job losses deepen as more firms go into liquidation
The number of Kenyan companies entering liquidation has surged, leading to significant job losses and economic challenges.
The increase in liquidations is attributed to factors such as high operational costs, reduced consumer spending, and limited access to credit, which have strained businesses' financial stability.
Stronger shilling takes shine off gold listing on NSE
The recent appreciation of the Kenyan shilling has diminished investor interest in the NewGold Exchange Traded Fund (ETF) on the Nairobi Securities Exchange (NSE), as the stronger currency reduces the local returns from gold investments.
The NSE has observed a decline in trading volumes for the NewGold ETF, indicating that the currency's strength is impacting demand for gold-backed securities.
Gains from NSE dead stocks beat blue-chip firms in 2024
In 2024, several penny stocks on the Nairobi Securities Exchange (NSE) outperformed blue-chip firms, with East Africa Portland Cement (EAPC) leading the market with a share price gain of 306.9%, followed by Kenya Orchards at 259%, and Kenya Power at 182.4%.
The surge in these stocks is attributed to speculative trading, a return to profitability, and dividend payouts, attracting local investors seeking bargain opportunities.
Safaricom has launched Safaricom Insurance Agency Limited (Sial) to offer mobile phone insurance, covering risks like accidental screen damage, theft, and liquid damage.
In the pilot phase, Sial issued 117,000 policies, collecting premiums worth Sh22 million, with a sum assured of Sh975 million.
Kenyan Members of Parliament are pressuring independent power producers (IPPs) to disclose financial details, aiming to renegotiate Power Purchase Agreements (PPAs) to lower electricity costs.
The Energy Committee has set a 12-month deadline for IPPs to comply, warning of potential PPA terminations for non-compliance.
Kenya's plan to establish industrial parks aligns with China's successful use of such zones to boost economic growth and job creation.
Collaborating with China through initiatives like the Forum on China-Africa Cooperation (FOCAC) can provide Kenya with financial assistance, expertise, and infrastructure support to develop these industrial parks effectively.
Supreme Court’s death blow to commercial lease law
Tenants can now exit commercial leases early due to financial distress, even without a termination clause.
Landlords must mitigate losses by finding new tenants instead of demanding full rent. — Explore the full story
County workers face broke Christmas over pay hitches
County workers face delayed December salaries due to migration to a new payroll system.
Governors urge swift action to resolve payroll issues for timely payments. — Explore the full story
Coffee Cherry Fund advances to farmers hit Sh6.7 bn on cash thirst
The Coffee Cherry Fund has disbursed KSh6.7 billion in low-interest loans to 497,221 smallholder farmers.
Nyeri and Kirinyaga farmers received the highest allocations, at KSh943.4M and KSh845.6M respectively. — Explore the full story
Top hardware firm ordered to pay Sh2.2m to ex-staffer denied leave for 22 years
A Kenyan hardware store has been ordered to pay a former employee for denying him leave for 22 years.
The court's decision underscores the importance of adhering to labor laws regarding employee leave entitlements. — Explore the full story
What CEOs appreciate most about Christmas and gifting
Family Time: CEOs cherish Christmas as a period to unwind and spend quality time with family, often traveling or visiting their hometowns.
Childhood Memories: Many recall festive traditions like special meals, new clothes, and family gatherings, highlighting the holiday's role in fostering togetherness. — Explore the full story
🎄 From all of us at Business Daily, we wish you a Merry Christmas 🎅 and a prosperous New Year! 🎆✨
