Monthly Archives: April 2011

Kenya Green Energy Farm Initiative

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“The future of agriculture is to increase productivity and conserve the environment,” said Dr. Ephraim Mukisira, the director of Kenya Agricultural Research Institute (KARI). KARI forecasts to complete a Shs. 32 billion solar powered facility in June, to “pave way for an agrarian system that is less dependent on rain-fed agriculture,” Mukisira said.

Developing nations of Africa have been noted for the application of renewable energy technologies. Kenya in particular has taken a huge leap forward and could be Africa’s first country to “establish a green farm that uses renewable energy.” allAfrica.com reported. Solar powered technologies have high potential to generate renewable energy in Africa, based on the fact that many African countries receive on average 325 days per year of bright sunlight. The KARI facility at Kari Muguga, Kiambu District, will accommodate both crops and livestock. Dr. Mukisira was reported saying “this is a new concept that demonstrates that research and science is moving away from traditional to more exciting settings like the green villages.”

“Kenya has more enlightened policies on renewable energy compared to other developing countries, but the sector is not vibrant due to lack of financing,” said Ajay Marayanan-the Head of Climate Financial Unit, IFC.Local banks should savor the opportunity to invest in green energy projects to ensure a gradual shift to more sustainable energy sources. The International Finance Corporation (IFC) and European Investment Bank (IEB) plan to set up a fund to be accessed by local banks for onward lending to individual green projects is a step in the right direction moving forward, following Kenyan government’s effort to fast-track revision of most green energy policies.

 

References:

Country Pioneers Solar Farms in Africa , 11/04/2011

Banks Told to Review Lending Policies on Green Energy Projects 31/03/2011

Renewable Energy in Africa (As of 11/04/2011)

 

 

Country Pioneers Solar Farms in Africa

Prerequisite Reforms in Run-Up to 2012 Elections

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On 22nd March 2011, H.E. President Mwai Kibaki addressed a special sitting of parliament to urge the members of the August House to pass at least 10 legislations and other several crucial reforms required to implement the new constitution which will ensure that the 2012 elections are, “conducted within a framework that guarantees the freedom and fair exercise of people’s choices.”httpv://www.youtube.com/watch?v=2eM-ARMrUmk

According to The National Accord and Reconciliation Act, 2008, “a coalition must be a partnership with commitment on both sides to govern together and push through a reform agenda for the benefit of all Kenyans.” The Grand Coalition Government was anticipated to boost the process of constitutional reform-which has been done, now shifting focus to its implementation. In his address, the President said, “the Grand Coalition Government is determined to systematically implement the new constitution.” However, the government is falling behind schedule in implementing the prerequisite reforms, “which must have been passed according to the Fifth Schedule (the fifth schedule lays out the table of implementation) of the constitution, within one year of the promulgation of the constitution,” stated the President. He also highlighted bills relating to judicial reforms and electoral systems, which will be intended to; strengthen accountability, administration of justice, rule of law and ensure checks and balances in governance.”

To be able to conduct a free and fair elections-process is undoubtedly a challenging task, however, it should be noted that, “the sum of parts is greater than the whole.” The August House has a great responsibility of setting up the necessary prerequisite legislations and civil education prior to the 2012 elections. These call for; unity within the Coalition partners, and the prioritization of the process of the implementation of the constitution. Thus any decision to be made and acted upon should follow thorough dialogue and scrutiny such that the end will be seen to justify the means.

References:

Kibaki Urges MPs to Pass Reform Bills 22/03/2011
Kibaki Urges Reforms in Run-Up to Kenyan Elections 23/03/2011

Pres. Kibaki’s Address During a Special Sitting Of Parliament 22/03/2011

 

Raise in Oil Prices, Weak Shilling

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The volatile situation in Libya and the unrest in other Arab States have seen crude oil prices shoot upwards on the global market. These recent developments have inflicted a budgetary shock on Kenya’s oil import projections. The effect of the rising oil prices has been manifested in a weakening Kenyan shilling, compounded by increased political activity over the nomination of key state jobs.

Prime Minister Raila Odinga, in a statement made in parliament said that, “Kenya’s oil import bill could rise by $700 million or 2% of GDP.” The Central Bank of Kenya, increased its key interest rate in an effort to defend the weak shilling and curb rising inflation, saying, “temporary rises in oil and food prices linked to unrest in North Africa and drought at home, were becoming embedded and the inflation rate was set to creep up from 6.5 percent over the next two months.” In reference to a paper commissioned by the Energy Sector Management Assistant Programme (ESMAP) ,“as part of an investigation on energy security issues from the perspective of developing countries…”, the study found out that, “oil importers immediately face a larger import bill and unless the country is already running a surplus, or has extremely large foreign exchange reserves, this must be met by a reduction in total demand for all imported goods, so as to restore balance of payments equilibrium.”

This situation will without doubt exert more pressure on household final consumption expenditure, and in the long-run may lead to a slowdown on investment, thus reduced domestic production. httpv://www.youtube.com/watch?v=y_1JIPxUKEw  Maybe it is high time to embrace the benefits of East African Community common market as this will greatly strengthen the local monetary unit due to enhanced productivity and efficiency in allocation of the factors of production, as well as safeguard against the far reaching effect of budgetary shocks fueled by rise in costs of essential imports.

References:

Kenya raises rates to defend shilling,curb inflation 22/03/2011

Kenya’s shilling weaker vs dollar; politics weighs 4/02/2011

Shilling in loosing streak against major currencies 25/02/2011

The Macroeconomic Effects of Higher Oil Prices (As of March, 2005)