We want more expensive fuel.

⛽ Kenya Pipeline asks EPRA to hike fuel tariff by 38%

‘We want more expensive fuel.’ That’s not exactly how they put it but it has come to light that Kenya Pipeline Company is lobbying the EPRA to increase per liter fuel tariffs by ~38%, proposing that instead of 0.45 cents, this should be 0.62 cents. While the EPRA is trying to persuade oil traders that this will not impact oil prices, traders are saying that this will directly impact the price of fuel for consumers. KPC is hoping the hike in tariffs will help increase its revenues amid a severe cash crunch in order to help upgrade its storage and handling infrastructure particularly to speed up its unloading process at the ports which will help decrease demurrage fees. Why might fuel increase? 

😵‍💫 Agriculture industry choking on over-regulation

Kenya’s agriculture industry stakeholders are telling the government to stop passing laws governing the sector, citing that the over-regulation is making local players less competitive. During this year’s National Agriculture Summit, players in the industry said there was a complete lack of coordination with different institutions competing to come up with rules and regulations which in the end choke local companies. Livestock Bill, Mung Beans Bill, Horticulture Crops Authority Bill… Can the ag industry keep up with over-regulation? 

📉 Inflation hits lowest rate in a long time

3.6%. That’s the new official annual inflation rate according to the Central Bank of Kenya - the lowest inflation the country has seen in years. While items like Irish Potatoes, Beef, and Onions have gotten more expensive, this increase has been watered down by a cheapening of essentials such as Maize, Flour, and Sugar. In its latest meeting, the Monetary Policy Committee of the CBK stated that it expects inflation to remain mild - below its 5% target - amid a strengthening Shilling. What does inflation even mean? 

✈️ What is KQ doing in the water bottling and diesel industries?

Kenya Airways is busy cutting its operational costs and it seems their answer to sustained losses is to become more vertically integrated. It’s no secret that KQ has had financial challenges for several years and with both regional and global airlines becoming more competitive (Ethiopian & Qatar), Kenya’s airline is keen for answers. KQ’s bottling plant is expected to produce 4,500 liters of water per day while its Pyro-Diesel Plant can produce 700-1,000 liters per day, these are expected to have a considerable impact on the airline’s bottom-line while also making the company more sustainable. Dive deeper. 

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