The Weekly Brief, by The Kenyan Wall Street, is a newsletter that goes out to 20k+ subscribers every Monday morning at 9 am (EAT).

Welcome to the first newsletter of February 2024, and therefore Christmas Eve 2024.

A timely reminder that the day after Valentine’s Day is fuel review day, as per EPRA’s calendar. There will be flowers, and then there will be fuel.

In this issue, Uganda’s SafeBoda returns to Kenya, Namibia’s President dies, and why February is a good month for conferences in Nairobi.

SafeBoda is Back in Kenya

Ugandan mobility startup SafeBoda will resume operations in Kenya on February 5 2024 pausing operations in the country since November 27th 2020.

• This decision comes after SafeBoda temporarily suspended its operations during the COVID-19 pandemic. 

• SafeBoda had established itself as a key player in the Kenyan market, offering customers several benefits such as rider safety through mandatory helmet use and discounts.

• The departure impacted over 4,000 SafeBoda riders, highlighting the broader repercussions of such decisions on stakeholders within the industry.

Despite making significant strides in the market, the company faced difficulties sustaining its operations, leading to its exit in 2020. Many riders expressed discontent with the company’s business practices. They claimed that the Ugandan based startup prioritized customer satisfaction by offering numerous discounts and lower prices to their customers, while neglecting the riders who bore the expenses of maintaining and fueling the bikes.

In response to reduced profit margins due to low fares, riders reportedly resorted to canceling ride requests between January and March 2020. This period saw significant reductions in trip fares on SafeBoda compared to its competitors.

Alastair Sussock, Co-founder and CEO of SafeBoda, underscored Uganda’s substantial market potential, with over 1.5 million rides occurring daily in greater Kampala alone. This success serves as a testament to SafeBoda’s ability to thrive in markets with favorable conditions and strategic partnerships.

• While the Kenyan market posed challenges for SafeBoda, the company’s expansion into other African countries has encountered varying degrees of success.

• In 2020, SafeBoda ventured into the Nigerian market with ambitious goals, but ultimately withdrew in 2022, citing economic viability concerns.

• Its operations in Uganda have been largely successful, thanks to a supportive business ecosystem that has bolstered its activities.

New Products

As SafeBoda prepares to re-enter the Kenyan market, the company is poised to introduce a new product called SafeCar. It is still unclear whether SafeCar will offer a cashless payment system, as it does in Nigeria.

There is also some speculation about whether the company will expand its services to include food delivery, akin to its competitors such as Bolt Food and Uber Eats. The burgeoning demand for food delivery services, presents a lucrative opportunity for ride-hailing companies to diversify their offerings and capitalize on evolving consumer preferences.

Headlines You Might Have Missed

• The National Gender and Equality Commission (NGEC) wants time inequality in the workplace addressed by creating a public childcare system.

• KRA, ICPAK plan to work together to target professional tax malpractices.

• More than 1000 football clubs globally spent $9.63 billion in last year’s transfers registering a 48.1% increase in figures from 2022. 

• Investors should anticipate more stability in lending rates, even as expected fluctuations in forex and the tax environment continue to shape the operating environment, Standard Chartered in the latest global Market Outlook Report for 2024 advises.

• High performance shoemaker Enda Athletic acquired by NVH Studios.

NEWS SNAPSHOT: President Hage Geingob of Namibia Dies

Hage Gottfried Geingob, President of Namibia since 2015, has died. He was 83.

• Geingob was a member of the Central Committee and the Politburo of SWAPO party for decades.

• A liberation and anti-apartheid hero, Geingob was renown for his strategic politics, even losing position for not supporting his predecessor Sam Nujoma’s presidency-for-life ambitions in 2002.

• He was elected president of the party by an overwhelming majority-87%-at its 6th Congress in 2014.

Uganda’s New Aviation Law

Uganda’s parliament has passed the Civil Aviation Authority (Amendment) Bill, 2024 that will bring Uganda’s aviation authority in conformity with the Convention on International Civil Aviation.

• This follows the approval of eight amendments under the proposed Bill, which will now be forwarded to the President for assent.

• The Bill was passed on Thursday, 01 February 2024 at a sitting chaired by Deputy Speaker Thomas Tayebwa.

• It also prohibits the chief investigator from disclosing any investigation records like cockpit records, recordings and transcripts of recordings

The new law will give powers to a chief investigator to cause an investigation to be carried out where an aircraft accident or serious incident happens in Uganda or in any contracting state that does not intend to carry out an investigation.

The chief investigator will also lead investigations into an accident or serious incident that occurs in Uganda or outside Uganda involving an aircraft registered in Uganda or an aircraft operated by an operator in Uganda.

“The chief investigator must be a highly qualified person who has been in the airline industry for a long time and we normally screen them and look at their CVs. It may a retired pilot or an engineer,” said Gen. Katumba Wamala, the Minister for Works and Transport.

• He added that this is intended for compliance with requirements of the International Civil Aviation Organization (ICAO) standards.

• The law also prohibits the chief investigator from disclosing any investigation records like cockpit records, recordings and transcripts of recordings from air traffic control units, while carrying out an investigation.

• The new law will enable the CAA to recognise agreements of third party states.

While the government was not clear about all the hard-hitting recommendations of a September 2023 ICAO audit report that triggered the speed with which it asked for amendments to the aviation laws, it was clear in the need to process the amendments before the end of an ongoing audit that ends on 8th February.

Upcoming Events

• Digital Retail Africa 2024: Johannesburg, 31 Jan.

• 7th Annual CEOs Breakfast: Nairobi, 8 Feb.

• Africa Tech Summit Nairobi: Sarit Expo Center, 14-15 Feb.

• Africa Agri Expo: Nairobi, 19-20 Feb.

• Africa Media Festival: National Museum, 21-22 Feb.

• Global Black Impact Summit: Dubai, 27 Feb.

Interview of the Week

Interview with Kenneth Kamwetsa Mbewe, Country Manager, Mukuru Zambia.

Have a great week!