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How posh lifestyles are hurting savings among youth of Kenya

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The young are quick to borrow in search of instant pleasure

The urge for instant gratification among the young is the biggest blow to a savings culture in Kenya. Worse, are those borrowing to finance their expensive lifestyles.

Founder and chief executive of software firm Compulynx Limited Sailesh Savani, says, “young people getting into well-paying jobs move fast to acquire a good car and live in exclusive neighbourhoods with an eye on expensive holidays and binge parties.

“In case, they get a better paying job, they change employers very fast, denying themselves an opportunity to grow their careers. Such lives funded by costly loans have eroded the savings culture that every Kenyan needs to inculcate early in life.”

Enwealth chief executive Simon Wafubwa says that a Sh5,000 a month saving for 40 years could see an astute person receive a minimum of Sh24 million upon attainment of the mandatory 60 year retirement age.

“This is due to compounded interest accrued over time. Young people must plan early for a happy retirement or risk falling into the heavy spending stretch that leaves them with big loans to service at extremely high interest rates,” he says.

Successful careers

This has condemned many to a loan-laden working life with little retirement savings, he says.

While the two CEOs affirm the need to save and grow into successful careers over time, formal sector employees, who have saved up to Sh1.2 trillion with pension schemes, could soon enjoy higher returns after a new law allowing use of pension cash to fund infrastructure projects was passed.

Retirement Benefits Authority (RBA) chief executive Nzomo Mutuku said Kenyans in 14 ‘big’ pension schemes had provided Sh254 billion for investment in public infrastructure bonds.

Addressing a one-day symposium attended by managers and trustees of 40 US pension schemes visiting Nairobi, Mr Nzomo said this was after laws were reviewed introducing infrastructure bonds where pension schemes could pool resources via a public private partnership (PPP) arrangement.

“Studies show Americans are better savers than Kenyans and passionately plan for their retirement via pension savings. Kenyans are learning fast, which has seen pension savings rise four-fold in the last decade to stand at Sh1.2 trillion,” he said.

source:Daily Nation

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Barclays Bank Sh14m ATM heist was an inside job – DCI Kinoti

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The Directorate of Criminal Investigations (DCI) boss George Kinoti has confirmed that the theft of sh14 million at various Automatic Teller Machines (ATM) operated by Barclays Bank was an inside job.

According to the DCI, an initial investigation has revealed that the daring heist was executed by employees attached to the bank.

Kinoti said his team of detectives was concluding its probe in readiness to hand over the investigation file to the Director of Public Prosecutions Noordin Hajji’s office for prosecution of those found culpable.

“What happened at Barclays Bank is what we call constructive robbery which is a type of theft committed by employees of an organization. Look at the precision and exactly what was targeted. We are talking about a place that has CCTV cameras. However, those cameras were smeared with some substance,” he said.

On Wednesday detectives arrested a taxi driver and impounded a Probox vehicle suspected to have been used in the theft.

Five Barclays bank officials and a group of G4S security guards were earlier this week taken into custody to aid the police with the investigation.

A string of robberies in the long Easter weekend left Barclays Bank short of more than Sh14 million after four teller machines were broken into in Mutindwa, Mater Hospital, Kenyatta National Hospita and Kenya Cinema all in Nairobi County.

source:nairobinews

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Kenyan avocados cleared to enter the expansive Chinese market

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enyan farmers will now export their popular hass avocados to China following a trade deal signed when President Uhuru Kenyatta met his Chinese counterpart Xi Jinping in Beijing today.

The signing of the agreement which makes Kenya the first African nation to export avocados to the Asian nation with a market of over 1.4 billion consumers comes after a long and comprehensive approval process that included Chinese experts visiting Kenyan farmers.

It is estimated that when the agreement is fully implemented, the Chinese market will absorb over 40 percent of Kenya’s avocado produce, making it one of the largest importers of the fruit. Other famous destinations of Kenyan avocado include Europe and the US.

The signing of the protocol on sanitary and phytosanitary (an agreement relating to the health of plants, especially with respect to the rules of international trade) requirements for the export of frozen avocado was the last major hurdle for the Kenyan crop to be accepted in the highly regulated but lucrative Chinese market.

Avocado becomes the second farm produce from Kenya to access the expansive Chinese horticultural market after Stevia and will be followed by 13 other priority farm produce among them flowers, mangoes, French beans, peanut, vegetables, meat, herbs, bixa and macadamia.

The meeting between Presidents Kenyatta and Xi Jinping and their delegations focused on promoting economic and trade exchange in 8 key initiatives identified during the Forum on China-Africa Cooperation (FOCAC) meeting held in Beijing last year.

These initiatives include industrial promotion, trade facilitation, infrastructure connectivity, green development and people-to-people exchange. Others are capacity building, healthcare, and peace and security.In addition to the avocado deal, President Kenyatta witnessed the signing of an agreement on Economic and Technical Cooperation covering all sectors of mutual interest and an MOU on joint promotion of the implementation of the 8 FOCAC priority areas.

President Kenyatta is in Beijing, China for a three-day working tour where he will also attend the Second Belt and Road Forum (BRF) for International Cooperation that will be officially opened by President Xi Jinping on Friday.The President is accompanied by Cabinet Secretaries Peter Munya (Trade), Dr.Monica Juma (Foreign Affairs) and James Macharia (Infrastructure) among other senior government officials.

source:standard.co.ke

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69-Year-Old Dutchman alleges estranged Kenyan Wife’s Plot to Illegally Inherit His Vast Estate

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A Nairobi-based Dutchman has written to the Director of Public Prosecutions (DPP) and the Inspector General of Police over harassment by his estranged Kenyan wife.

Tob Cohen, the CEO of Tobs Company accuses his estranged Kenyan wife of using police and the justice system to harass and intimidate him.

Cohen claims that his partner Sarah Wairimu is colluding with some government officers to illegally deport him so that she can take over his vast estate.

“There has been a curious excitement to have our client prosecuted for allegedly assaulting her despite insufficiency of evidence, which intended prosecution is aimed not only at soiling his reputation but also having him deported from Kenya so that his properties become free and available to Sarah Wairimu Kamotho and her accomplices,” Cohen’s lawyer Danstan Omari says.

Cohen says Wairimu is using all means in an attempt to inherit his properties after he filed for divorce early this year.

Cohen, 69, has lived in Kenya since 1987 and married Wairimu in 2007 but soon after, their marriage became rocky after she began demanding a 50 percent stake of his property.

“The said Sarah Wairimu Kamotho has expressly been disrespectful to our client by being scornful and by use of emotional blackmail well demonstrated by the denial of our client’s conjugal rights,” the letter reads in part.

He also accuses Wairimu of storming into his office and throwing a glass of water at his face, threatening him, and pushing him downstairs, sustaining serious injuries on his forehead.

He says he was treated and later reported the matter at Parklands Police Station but that Wairimu filed a report at Gigiri police station claiming to be the one who was assaulted.

“That our client is astonished at the discriminatory manner in which the law is being applied to his disadvantage since no step has been taken by police officers at the Parklands police station to prosecute Wairimu despite a preponderance of evidence demonstrating her guilt, yet the same law enforcers are keen on prosecuting our innocent client.”

Cohen says he will continue to suffer humiliation, discrimination, and persecution if the DPP and IG fail to take action.

Source: Mwakilishi.com

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