- Published on Tuesday, 28 March 2017 10:40
Local clothing manufacturers plan to have a "mega sale" of their products this week in Nairobi.
The event has been dubbed the first-ever super sale of local clothing brands in the country.
Going under the hashtag #BuyKenyaSuperSale on Twitter, the sale will run for three days starting Wednesday at the Kenyatta International Conference Centre, (KICC). Prices will range from Sh50 to Sh600.
The sale has been organised by the Ministry of Industry, Trade and Cooperatives to promote local brands.
According to State House Spokesman Manoah Esipisu, quality brand new clothes made in Kenya at its export processing zones (EPZ) under key designer labels will be up for sale at "low and affordable prices".
“They are making them available to this market so that Kenyans can have a sense and feel of what it is that is being produced here and being worn in major cities in the world but which by the time Kenyans see it again it’s like its already been worn in other markets and coming back under the used clothes' category,” he said on Sunday.
Industry, Trade and Cooperatives Cabinet Secretary Adan Mohammed says some of the world's biggest inner wear brands like Calvin Klein, Tommy Hilfiger & Victoria's Secrets are being made in Kenya.
The Ministry of Trade is calling it the first super sale, which is expected to promote the local textile sector.
The sector supports 179,000 jobs according to the government, out of which 22,000 are said to have been created over the last three years.
It has potential of creating another 100,000 jobs according to the government.
“It is a demonstration of the importance accorded to the sector by President Uhuru Kenyatta’s administration,” Mr Esipisu said.
Economic Processing Zones in the country are a major economic driver for Kenya, with total investments of Sh74 billion and employing more than 50,000 people, according to the Ministry of Industry and Trade.
Speaking at State House, Nakuru, on Sunday, Mr Esipisu said there will be subsequent sales in other cities and towns in the country "so that Kenyans can see some of the fruits and works they are investing in."
“This is one of the pledges that has been fulfilled by the government through the Ministry of Industry and Trade,” he said.
He cited the industrial transformation programme that focused on creating a strong manufacturing base, with a goal to increase its contribution to 15 per cent of the GDP from the current 10-11 per cent.
Mr Esipisu said the strategy has seen initial focus around labour intensive sectors of textile and apparels, leather and agro-processing.
“Over this period new investment in production facilities have been made in Mombasa, Nairobi and Nakuru leading to exports to the United States under the Africa Growth and Opportunity Growth programme (Agoa) to exceed 400 million US dollars making Kenya the leading apparel exporter to the US, in sub-Saharan Africa under Agoa,” he said.
He said the government has deliberate ensured access to affordable clothing that is duty free and VAT free, for the first time since independent.
Source: Business Daily
- Published on Tuesday, 28 March 2017 10:35
The International Finance Corporation (IFC) says it is willing to make an additional investment of up to $60 million (Sh6 billion) in insurance group Britam in the next 12 months.
IFC has already committed to invest Sh3.5 billion in the Nairobi Securities Exchange-listed firm, making it the second-largest shareholder with a 10.3 per cent stake.
Britam’s shareholders approved the deal at a general meeting on Friday.
IFC says it could invest more should the insurer seek to raise new capital on terms that are more favourable than the ones offered to the international financier in the Sh3.5 billion deal.
“Subject to the IFC’s rights to require that any more favourable terms agreed with another investor be offered to IFC, an issue of shares to the value of a maximum of $60 million of additional capital,” reads part of the conditions set out by the IFC in a Britam circular.
This means that Britam is limited to raising up to Sh6 billion of new capital in a year after IFC has been allotted the 10.3 per cent stake, with the international financier keen to ensure its deal sets the base for new fundraising in the short term.
IFC says no new shares shall be issued at a price lower than Sh15.85 apiece at which it has bought into Britam during the 12-month period.
Should the insurer seek to raise new capital on other conditions that are better than those offered to IFC in the first transaction, the international financier wants to be given those same terms.
IFC says it will also amend its current deal with Britam to reflect those better terms. Britam is also restricted from issuing new stock except bonus shares or rights issues in the same period.
The company’s largest shareholders have also agreed to retain ownership of at least 20 per cent in the company.
The firm reported a net profit of Sh2.4 billion in the year ended December, reversing a net loss of Sh1 billion the year before as claims fell by Sh5.2 billion on adoption of a new valuation methodology.
Source: Business Daily
- Published on Tuesday, 28 March 2017 10:28
Oman Air yesterday launched direct flights between Nairobi and Muscat, targeting travellers to and from the Middle East.
The airline will run a promotional return fare of $450 (Sh46,350) until May 31. Oman Air, the flagship carrier of the Sultanate of Oman, will fly four times each week from Muscat to the Kenyan capital starting yesterday. “This new Oman Air route to Nairobi is a significant development for both countries,” said the airline’s deputy chief executive and executive vice president (commercial), Abdulrahman Al Busaidy.
Source: Business Daily
- Published on Friday, 24 March 2017 09:51
Mumbai-based hotelier Sarovar plans to open its first-ever budget hotel under the Hometel brand in Nairobi after signing a deal with a city lawyer to put up the facility.
The upcoming Tetezi Hometel Nairobi is owned by lawyer John Mburu, and targets business travellers and holidaymakers on a shoestring budget.
Sarovar will manage the hotel’s day-to-day operations, earning a fee for its brand and services.
The 80-room hotel is located on Riverside Drive and its construction has already started with the opening set for 2019.
A typical Hometel hotel development cost in Kenya (excluding cost of land) is estimated at $60,000 (Sh6.1 million) per room.
“There is a growing demand for good value for money hotels across the country and abroad. This is the largest demand segment. We aim to cater to these markets with our hotels by offering best value to business and leisure travellers,” said Ajay Bakaya, managing director at Sarovar Hotels in a statement.
“Tetezi Hometel Nairobi will be the first in Africa,” he said, adding that the “brand delivers profitable hotels to owners.”
Mr Mburu will invest about Sh480 million in the construction, Sarovar said.
The budget hotel brings to four the total number of properties managed by Sarovar in Kenya including Heron Portico and Zehneria Portico.
Lazizi Premiere located near the Jomo Kenyatta International Airport, is set to open next month.
The Indian hotelier has three brands: Premiere (luxury), Portico (midscale) and budget offering Hometel. There are 10 Hometel hotels worldwide, Sarovar said.
Sarovar presence in Africa will now total to eight hotels including New Africa Hotel and Casino in Dar-es-Salaam, the 73-roomed Panorama Sarovar Portico in Juba, Sarovar Premiere in Lusaka, and Sarovar Premiere Addis Ababa.
Source: Business Daily Newspaper.