KENYA

Kenya’s Q1 food import bill rises 58.4pc to Sh80 billion

Kenya’s food import bill in the first quarter of the year rose 58.4 percent to hit Sh80.2 billion, nearly matching what was fetched from exporting food.

The latest data from the Kenya National Bureau of Statistics (KNBS) shows the imports rose from Sh50.6 billion in a similar period last year as the country shipped in more volumes of commodities such as rice, wheat and processed food.The rise came in the period food imports increased by 10.4 percent to Sh87.5 billion, leaving the gap between exports and imports at Sh7.3 billion—one of the narrowest in the recent past.Kenya’s spending on food imports in the first three months of 2021 was about 64 percent of the money received from food exports, with the difference between the two at Sh28.6 billion. However, food imports have been growing at a faster pace than that food exports to cut the difference to Sh7.3 billion in the three months ended March 2023.

The value of food imported was equivalent to about 92 percent of the money earned from food exports, raising fears Kenya could become a net food importer.The KNBS data showed the value of imported unmilled wheat rose by 70.5 percent to Sh26.9 billion while that of rice increased by 96.5 percent to Sh12.7 billion. The value of processed food and beverage imports rose by 84.4 percent from Sh20.6 billion to Sh38 billion, adding to the overall rise in food shipped in.

(Source: Business Daily)

 TANZANIA

What new reduction in fuel prices means for Tanzanians

The reduction of fuel pump prices, propelled by a drop in global charges, offers hope that Tanzanians will feel only a minimal impact of a recently introduced TSh100 per litre levy on petrol and diesel. The Energy and Water Utilities Regulatory Authority (Ewura) cut the price cap for a litre of petrol and diesel imported through the Dar es Salaam port by 4.7 percent and 4.4 percent respectively, thanks to a reduction in global prices. The new rates mean that petrol and diesel imported via the Dar es Salaam port will go down by Sh137 and Sh118 respectively. 

(Source: The Citizen)

UGANDA

Khat should be removed from list of prohibited narcotic drugs

The government is seeking to remove khat (miraa) from the list of prohibited narcotic drugs in the statute books of Uganda. Khat is a flowering plant native to eastern and southern Africa. A dried preparation of the flowering tops or other parts of the cannabis plant, smoked or consumed, generally illegally, as a psychoactive or psychostimulant drug among consumers.

While meeting Parliament’s Committee on Defence and Internal Affairs that is reviewing the Narcotic Drugs and Psychotropic Substances (Control) Bill, 2023 on Thursday, Maj Gen (Rtd) Kahinda Otafiire, the Minister of Internal Affairs said Khat should be considered as a cash crop and medicinal substance. In comparison with coffee and alcohol, Otafiire argued that khat is not as dangerous, and therefore, Parliament should consider decriminalizing it to enable Uganda like neighbouring Kenya, Ethiopia, Djibouti, and Somalia among others. 

Kepher Kuchana Kateu, the Director of the Government Analytical Laboratory – GAL said that Khat belongs to “cannabis” and refers to all products derived from the plant Cannabis sativa which has about 540 chemical substances. Kuchana told the Committee chaired by Wilson Kajwengye, the Nyabushozi County Member of Parliament in Kiruhura District that khat is widely grown on the African continent for medical values, adding that though harmful when abused, the plant provides raw material for textiles industries.

(Source: The Independent)

RWANDA

Mixed reactions as EAC govts roll out budgets

East African governments in June presented their most ambitious budgets yet, which are expected to take effect this month, seeking to strengthen their economies, finance key government operations and repay existing debts.

However, despite a notable increase, economists are warning the region’s citizens to brace for tough times as the fiscal measures proposed in the 2023/24 budgets show little to no signs of further lowering the cost of living and some measures causing investor flight in the region’s biggest economies. Kenya, the region’s biggest economy, has proposed a $26.3 billion spending plan, while Tanzania has a $19.2 billion budget.

 (Source: The New Times)

ETHIOPIA

Kenya electricity highway to receive boost with new transmission line

The African Development Bank (AfDB) has granted a loan of Euro 26.1 million to construct an underground power transmission line as part of the Ethiopia-Kenya electricity highway. The project aims to boost the power supply to Kenya’s Laikipia Airbase and surrounding areas.

The 132-kilovolt underground cable network will stretch 16.5 kilometres and connect Nanyuki and Rumuruti substations in Kenya. The substation is targeted to be completed before the end of next year.The transmission line is part of the Ethiopia-Kenya Power Interconnection project, which is designed to increase electricity imports from Ethiopia to Kenya. The line is also critical to linking the Southern Africa Power Pool and Eastern Africa Power Pool to Egypt and Sudan in the north.

Kenya sought the loan due to underestimations made in the feasibility study on power demand growth, and an increase in electrification rate and generation capacity, which resulted in an overrun of the initial project cost estimates. Kenya started importing power from Ethiopia in November last year after the two countries entered a 3-year power purchase agreement for 25 years. The price of 1KW is agreed to be USD 6.5 cents per hour.

During the first phase of the agreement, Ethiopia will export 65MW of electricity during off-peak hours and 200MW of electricity during peak hours. The second phase of the agreement will see the sale of 150MW of electricity during off-peak hours and 400MW during peak hours while in the third phase of the agreement, 400MW of electricity will be exported to Kenya at all hours. 

(Source: 2Merkato.com)

SUDAN

Tribal alignment in Sudan raises concerns over civilian involvement in armed conflict

Recent developments in Sudan have caused the emergence of a tribal mobilisation effort, as well as an alignment between certain tribes, particularly in the war-scarred regions of Darfur and South Kordofan. Arab groups such as the Fallata tribe in South Darfur state have openly backed the paramilitary Rapid Support Forces (RSF). The Fallata’s recent alignment has raised alarms, as it potentially spells the renewal of tribal mobilisation which has espoused ethnic and inter-communal divisions for decades in the region. 

In a coordinated statement on Monday, Arab tribes in Darfur expressed their support for the RSF saying, “We announce our support for the Rapid Support Forces in their current battle to achieve the will of the Sudanese people and their aspiration for democratic, civil rule. We also call on our sons in the armed forces to join the Rapid Support Forces.” In response, the RSF welcomed the statement, highlighting its promise to the Sudanese people’s choice for democratic rule and peace, adding that they will “confront the forces of the remnants and the putschists”. 

While some ventured that the war would progressively diminish due to the devastation of the Sudanese Armed Forces (SAF), both sides seem determined to exacerbate the conflict, leading to attempts from the SAF and RSF to mobilise civilians and fan the flames of war.

(Source: Dabanga)