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Tightening the leash...
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Howdy 🤗
It's Brian. Bringing you the latest from the world of business.
We delve into the government's latest object of concern : Social Media. Why are organs of the state prepared to deal harshly with ‘proponents of incendiary content’?
We look at why farmers are abandoning wheat cultivation, opting for other food Crops…
We understand why Treasury Bills are undersubscribed and why a company that has operated for 40 years in Kenya faces a regretful exit.
Top Stories
TECH & REGULATION
State Mulls Tougher Social Media Regulations
Social Media apps
The government is planning to make social media platforms establish physical offices locally, as part of a broader strategy to combat what it calls ‘digital abuse’.
On Thursday, the Principal Secretary in the Interior Ministry – Raymond Omollo – convened a meeting with representatives from telcos and social media companies. The PS described the rampant hostility against the regime and its officials online as ‘harassment’ and ‘incitement to violence’. The establishment of physical presence would give the government an edge in actively restricting dissenters online. Google and Microsoft are the only giant tech companies with local offices in Kenya.
The government, which has long perceived social media platforms, as a remedy to unemployment - is now brandishing its gun towards digital spaces as activism evolves.
Today's Poll
Do you think the government is doing the right thing by seeking more regulation for social media platforms? |
Yesterday's Poll Results
Do you think the new sugar development levy will achieve its aim in revitalizing the Kenyan sugar industry?
🟨⬜️⬜️⬜️⬜️⬜️ Yes, it is a good plan (18.18%)
🟩🟩🟩🟩🟩🟩 No, it will flop (81.82%)
AGRICULTURE
Wheat Farmers Switch to Maize as Value of the Grain Dips
A wheat farm
The area under cultivation of wheat in Kenya has been falling since 2019 as farmers shift to maize farming, according to data from the KNBS.
In 2023, the area under wheat cultivation was 104,440 hectares compared to 2022 when it was 119,554 hectares, with production decreasing as a result.
On the flip side, maize cemented its position as a staple food crop with the area dedicated to maize cultivation increasing from 2,113,520 hectares in 2022 to 2,430,013 hectares in 2023.
Kenya remains a net importer of wheat, with over 80% of the consumed produce being sourced from Russia, Ukraine, and Canada.
Other Food Crops :
🔸Maize production increased by 38.8%. In 2023, it recorded 4.29 million tonnes up from 3.09 million tonnes in 2022
🔸Rice produced under the Mwea irrigation scheme saw an increase from 137,769.3 tonnes in 2021/2022 financial year to 153,653.6 tonnes in the 2022/2023 financial year.
🔸Sorghum production rose from 120,422 tonnes in 2022 to 198,923 tonnes in 2023.
🔸The production of Irish potatoes increased from 1.8 million tonnes in 2022 to 2.3 million tonnes in 2023.
MARKETS
Treasury Bills Undersubscribed as Rates Fall
The Central Bank of Kenya
Treasury bills were undersubscribed for the first time in two weeks as rates continued downwards after progressive interest rate cuts by the Central Bank of Kenya (CBK).
This week, the government raised KSh 18.9 billion against a targeted KSh 24 billion – a 78.6% under subscription, lower than the 138.1% oversubscription registered a week earlier. Only the 364-day paper was oversubscribed owing to the slightly higher returns offered on the paper compared to the other shorter term papers. The CBK however accepted 96.1% of the total bids received amounting to KSh 18.1 billion, rejecting expensive bids.
COMPANIES
CMC Motors Shuts Down After Four Decades
CMC Motors
Economic uncertainty, currency depreciation, and bloated operational costs have pushed vehicle manufacturer CMC Motors Group out of the East African markets after 40 years of operations.
The subsidiary of CMC Holdings announced on Friday that it had complied with local regulations and distributorship agreements before winding up its operations in Kenya, Uganda, and Tanzania. The company tried to restructure its operations in 2023 - by laying off 169 employees and exited the passenger vehicle market - but the business environment has not improved.
CMC, which was previously listed on the Nairobi Securities Exchange (NSE), is wholly owned by the Al-Futtaim Group after the Dubai-based company acquired it for KSh 7.9bn in 2014.
Opinion and Commentary
WEALTH INEQUALITY
FINTECH
Stories you should read
Video of the Day
What I'm also watching…
It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong
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Have a lovely weekend!