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Analysis

Changing generation sources to bring down electricity costs
OBG
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The idea is simple: increase capacity, use cheaper generation sources for new power plants and this will reduce prices for the end user. The only problem is that prices are actually rising. Questions remain surrounding issues, such as whether the 5000 MW of planned additional capacity can actually be realised in the short 40-month timeframe, whether there will be enough demand to absorb new supply…

Analysis

Clear regulation will ease private sector entry into the water sector
OBG
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In September 2013 a major discovery ensured Kenya’s water security for generations. A 248bn-cu-metre underground reservoir of water was discovered in Turkana in north-west Kenya. Given that the country uses 3bn cu metres annually, politicians are celebrating a discovery that will last more than 70 years at current rates of consumption. The government plans to use 70% of the 3.4bn cu metres of annual…

Analysis

Infrastructure and security are being bolstered
OBG
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Despite a 2013 fire that gutted the arrivals terminal at Jomo Kenyatta International Airport (JKIA), Kenya is poised to become a dominant regional aviation hub, following years of investment in upgrades at regional airports, the launch of JKIA’s greenfield terminal construction project, and fleet investment that has seen national carrier Kenya Airways expand its routes to offer direct services to…

Analysis

Addressing non-tariff barriers to trade in tandem with infrastructure upgrades
OBG
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While significant public and private investment in new transportation projects will make a major impact on Kenya’s road, rail, aviation and maritime networks, one of the most significant challenges facing the efficient flow of goods and people in the country currently is non-tariff barriers (NTBs). Delays at Customs, excessive paperwork, and misaligned legal and regulatory frameworks within East…

Analysis

Regulatory and legislative reforms are providing more equitable land access
OBG
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Prior to the 2009 National Land Policy (NLP), Kenya’s real estate sector had been governed by complex and often incompatible administrative mandates. A consequence of the 2004 UN-HABITAT reform initiative, the 2009 NLP is the government’s first attempt to streamline national laws. It is also the first policy to provide a single and clearly defined national land policy since independence and has…

Analysis

New regulations encourage foreign companies to partner with local firms
OBG
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Kenya has a fragmented domestic construction industry, mainly populated by small and medium-sized contractors who may not always have the capacities and capabilities required for large infrastructure projects. As a result, foreign contractors have long played a sizeable role. In East Africa, European and US contractors make up roughly half of the market in terms of current project build, according…

Analysis

Key partnerships are helping more Kenyans access the internet
OBG
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Broadband connectivity has emerged as a major focus in Kenya, and is seen as a catalyst for inclusive economic growth and the transition to a knowledge-based economy. The country has seen a significant increase in connectivity, in particular in 2010, when three international cables were connected. The cost of connectivity fell by 80% in 2011, according to a report by the “Broadband Strategies Toolkit”,…

Analysis

Acquisitions and exits alter the sector’s landscape
OBG
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The main group of telecommunications providers in Kenya is certain to see a change in 2014, as one of the four major network operators, Indian Essar Telecom’s yuMobile brand, announced plans to exit the market, opening up potential avenues for foreign investment, and another was rumoured to be considering an out. Finding buyers for assets on sale has been trickier given government concerns about…

Analysis

The country has a thriving mobile money culture
OBG
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In a textbook example of synergy, Kenya leads Africa in terms of both mobile money take-up and financial inclusion: it has the highest usage rates on the continent, with more than 61% of adults counted as users, according to an IMF report on the topic. And in no other African country does a larger share of the population enjoy access to financial services of any type (75%), which the IMF attributes…

Analysis

The switchover to digital broadcasting has been delayed as a result of legal challenges
OBG
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A migration from analogue to digital broadcasting is on the cards in Kenya, although in March 2014 it was delayed, calling into question both when the reform would happen and how the new service would be provided. Legal challenges have pushed back the change several times from an original deadline of the end of 2012, and the issue has been appealed to the Supreme Court of Kenya. Due Process A…