Post by Onyango Oloo on Aug 13, 2015 12:46:35 GMT 3
www.dw.com/en/many-kenyans-shocked-by-sugar-deal-with-uganda/a-18644884
James Shimanyula contributed to this article
Many Kenyans shocked by sugar deal with Uganda
Kenyans have reacted to trade deals with Uganda with shock and skepticism. A number of deals were reached during a three-day state visit to the neighboring country by Kenyan President Uhuru Kenyatta.
a spoon holding loose sugar and sugar cubes
One of the deals agreed by President Kenyatta and his Ugandan counterpart Yoweri Museveni will allow Ugandan sugar back on to the Kenyan market, ending a long-running dispute over the trading of the commodity across their common border. In 2012, Kenya slapped a ban on sugar imports from Uganda when claims emerged that traders from that country were repackaging cheap sugar from the Common Market for Eastern and Southern Africa (COMESA) for resale in other markets.
Kenyan opposition leader Raila Odinga was quick to criticize the new deal, saying it could bring about the collapse of local millers.
"This deal on sugar is sour," Kenya's Daily Nation quoted Odinga as saying. "It comes at a time when Kenya's leading sugar manufacture Mumias Sugar is struggling to get back on its feet. Sugar cane farmers across the country are equally struggling as a result of lack of payments."
Raila Odinga
Raila Odinga says Kenyans need to know the full details of the trade deals
The government had earlier allocated one billion Kenyan shillings (8.9 million euros, $9.9 million) to help Mumias - money which may have been spent in vain if, as critics predict, the market will now be swamped by cheap sugar from Uganda.
Odinga also questioned a beef and dairy products pact, saying that Kenya could not produce enough for local consumption let alone for export. He called on President Kenyatta to release details of the deals so that members of the public could make up their own minds.
Deal 'could boost competition'
Speaking to DW, opposition member of parliament Fatima Ibrahim Ali described the agreement with Uganda as "very unfortunate." She said Kenya (which is East Africa's largest economy) was able to fulfill its sugar requirements through domestic production "and even has a surplus to export to Uganda."
Margaret Kerubo, a sugar cane producer from western Kenya asked: "Why should we get sugar from Uganda when we are farming sugar here in Kenya? It is not fair."
Nairobi tradesman Abdallah Juma said Kenyan producers had previously called on the government to help some companies that were in difficulties but instead the government had taken the decision "to import cheap sugar."
More optimistically, 38 year-old teacher Jonathan Muthengi hopes the deal will open up competition in the sugar sector that would benefit consumers, while businessman John Mbiyu believes "the business community will definitely benefit," since the deal would protect Kenya against the effects of a shortage of domestic sugar production.
But, "from an economic point of view it does not make sense to have this agreement," independent economic analyst Janet Okatch told DW's Nairobi correspondent. "This agreement harms farmers in a big way – when you have cheap sugar imports, of course our own sugar will be too expensive for the market."
Security concerns
There have also been mixed reactions to the news that the two leaders had reached agreement on the route for a pipeline intended to take crude oil from both countries to the Kenyan coast.
A statement said Kenyatta and Museveni had decided in favor of the northern route from Hoima, near Uganda's border with DRC, via Lokichar in western Kenya to the Kenyan port of Lamu which is under construction.
Lamu is not far from the border with Somalia and security experts had expressed concerns for the safety of a pipeline there, prompted by attacks by al-Shabab militants in the region. However, Bashir Hangir, communications officer for the Directorate of Petroleum in Uganda said the two countries had examined feasibility studies and had come to the conclusion that the northern route was the least costly and most viable. "The deal unlocks the potential of Uganda's oil and gas export options," Hangir told DW, adding that further financial and security aspects had yet to be discussed. The pipeline currently has a price tag of 400 billion Kenyan shillings.
A second proposed route further south ending in the port of Mombasa was rejected.
A map showing Uganda, Kenya and Somalia
The new pipeline will run close to the border with Somalia
Uganda has an estimated 6.5 billion barrels of crude in fields in the west of the country, while Kenya has around 1 billion barrels.
Joseph Njoroge, principal secretary at the Kenyan Ministry of Energy and Petroleum, said in June that once a decision on the route was taken, construction of the pipeline could be completed by 2019.
James Shimanyula contributed to this article
Many Kenyans shocked by sugar deal with Uganda
Kenyans have reacted to trade deals with Uganda with shock and skepticism. A number of deals were reached during a three-day state visit to the neighboring country by Kenyan President Uhuru Kenyatta.
a spoon holding loose sugar and sugar cubes
One of the deals agreed by President Kenyatta and his Ugandan counterpart Yoweri Museveni will allow Ugandan sugar back on to the Kenyan market, ending a long-running dispute over the trading of the commodity across their common border. In 2012, Kenya slapped a ban on sugar imports from Uganda when claims emerged that traders from that country were repackaging cheap sugar from the Common Market for Eastern and Southern Africa (COMESA) for resale in other markets.
Kenyan opposition leader Raila Odinga was quick to criticize the new deal, saying it could bring about the collapse of local millers.
"This deal on sugar is sour," Kenya's Daily Nation quoted Odinga as saying. "It comes at a time when Kenya's leading sugar manufacture Mumias Sugar is struggling to get back on its feet. Sugar cane farmers across the country are equally struggling as a result of lack of payments."
Raila Odinga
Raila Odinga says Kenyans need to know the full details of the trade deals
The government had earlier allocated one billion Kenyan shillings (8.9 million euros, $9.9 million) to help Mumias - money which may have been spent in vain if, as critics predict, the market will now be swamped by cheap sugar from Uganda.
Odinga also questioned a beef and dairy products pact, saying that Kenya could not produce enough for local consumption let alone for export. He called on President Kenyatta to release details of the deals so that members of the public could make up their own minds.
Deal 'could boost competition'
Speaking to DW, opposition member of parliament Fatima Ibrahim Ali described the agreement with Uganda as "very unfortunate." She said Kenya (which is East Africa's largest economy) was able to fulfill its sugar requirements through domestic production "and even has a surplus to export to Uganda."
Margaret Kerubo, a sugar cane producer from western Kenya asked: "Why should we get sugar from Uganda when we are farming sugar here in Kenya? It is not fair."
Nairobi tradesman Abdallah Juma said Kenyan producers had previously called on the government to help some companies that were in difficulties but instead the government had taken the decision "to import cheap sugar."
More optimistically, 38 year-old teacher Jonathan Muthengi hopes the deal will open up competition in the sugar sector that would benefit consumers, while businessman John Mbiyu believes "the business community will definitely benefit," since the deal would protect Kenya against the effects of a shortage of domestic sugar production.
But, "from an economic point of view it does not make sense to have this agreement," independent economic analyst Janet Okatch told DW's Nairobi correspondent. "This agreement harms farmers in a big way – when you have cheap sugar imports, of course our own sugar will be too expensive for the market."
Security concerns
There have also been mixed reactions to the news that the two leaders had reached agreement on the route for a pipeline intended to take crude oil from both countries to the Kenyan coast.
A statement said Kenyatta and Museveni had decided in favor of the northern route from Hoima, near Uganda's border with DRC, via Lokichar in western Kenya to the Kenyan port of Lamu which is under construction.
Lamu is not far from the border with Somalia and security experts had expressed concerns for the safety of a pipeline there, prompted by attacks by al-Shabab militants in the region. However, Bashir Hangir, communications officer for the Directorate of Petroleum in Uganda said the two countries had examined feasibility studies and had come to the conclusion that the northern route was the least costly and most viable. "The deal unlocks the potential of Uganda's oil and gas export options," Hangir told DW, adding that further financial and security aspects had yet to be discussed. The pipeline currently has a price tag of 400 billion Kenyan shillings.
A second proposed route further south ending in the port of Mombasa was rejected.
A map showing Uganda, Kenya and Somalia
The new pipeline will run close to the border with Somalia
Uganda has an estimated 6.5 billion barrels of crude in fields in the west of the country, while Kenya has around 1 billion barrels.
Joseph Njoroge, principal secretary at the Kenyan Ministry of Energy and Petroleum, said in June that once a decision on the route was taken, construction of the pipeline could be completed by 2019.
www.forbes.com/sites/mfonobongnsehe/2015/06/01/kenyas-2nd-richest-man-sells-dairy-firm-to-to-kenyatta-family-owned-business/
By Mfonobong Nsehe, Forbes Contributor
Brookside Dairy Limited, Kenya’s largest milk processor, has acquired Sameer Agriculture and Livestock Limited (SALL), an Ugandan dairy company.
Brookside Dairy is majority-owned by the Kenyatta Family, of which President Uhuru Kenyatta is a key member, while SALL is a subsidiary of Sameer Group, a Kenyan conglomerate with interests in financial services, property, agriculture and offshoring. Sameer Group is owned by Naushad Merali who is the 2nd richest Kenyan with a fortune FORBES estimates at $550 million.
According to a report by Kenya’s Standard Newspaper, the deal will involve Brookside taking over the management of SALL’s contracted farmers and assets, including production of its fresh dairy products, which enjoy significant market share in Uganda. Brookside will also upgrade all SALL’s milk cooling and processing facilities in Uganda. Terms of the deal were not disclosed and executives from both Sameer and Brookside were not available to comment as at press time.
Brookside, which was founded in Kenya in 1993, produces and markets fresh milk, yoghurt and butter in Kenya, Tanzania and Uganda. The company controls more than 45% of the Kenyan processed milk market (by intake). Recently, the company has been deepening its Africa expansion with acquisitions in the East Africa region, and is currently working to establish a dairy plant in Nigeria. Last year French food group Danone acquired a 40% stake in Brookside for several million dollars. The Kenyatta family still remains the dominant shareholder in Brookside with a 50% stake, while Abraaj Capital, a Dubai-based private equity firm, owns 10% of the company.
The Kenyatta family is one of the wealthiest families in Africa. Apart from their holdings in Brookside, they own extensive land holdings across Kenya, as well as controlling stakes in Heritage Hotels, media firm Mediamax and Commercial Bank of Africa. In 2011, President Uhuru Kenyatta featured in FORBES’ inaugural ranking of Africa’s richest people with a fortune we estimated at $500 million but was dropped off subsequent lists because of new information regarding the complex distribution of business assets among the Kenyatta family members.
Brookside Dairy Limited, Kenya’s largest milk processor, has acquired Sameer Agriculture and Livestock Limited (SALL), an Ugandan dairy company.
Brookside Dairy is majority-owned by the Kenyatta Family, of which President Uhuru Kenyatta is a key member, while SALL is a subsidiary of Sameer Group, a Kenyan conglomerate with interests in financial services, property, agriculture and offshoring. Sameer Group is owned by Naushad Merali who is the 2nd richest Kenyan with a fortune FORBES estimates at $550 million.
According to a report by Kenya’s Standard Newspaper, the deal will involve Brookside taking over the management of SALL’s contracted farmers and assets, including production of its fresh dairy products, which enjoy significant market share in Uganda. Brookside will also upgrade all SALL’s milk cooling and processing facilities in Uganda. Terms of the deal were not disclosed and executives from both Sameer and Brookside were not available to comment as at press time.
Brookside, which was founded in Kenya in 1993, produces and markets fresh milk, yoghurt and butter in Kenya, Tanzania and Uganda. The company controls more than 45% of the Kenyan processed milk market (by intake). Recently, the company has been deepening its Africa expansion with acquisitions in the East Africa region, and is currently working to establish a dairy plant in Nigeria. Last year French food group Danone acquired a 40% stake in Brookside for several million dollars. The Kenyatta family still remains the dominant shareholder in Brookside with a 50% stake, while Abraaj Capital, a Dubai-based private equity firm, owns 10% of the company.
The Kenyatta family is one of the wealthiest families in Africa. Apart from their holdings in Brookside, they own extensive land holdings across Kenya, as well as controlling stakes in Heritage Hotels, media firm Mediamax and Commercial Bank of Africa. In 2011, President Uhuru Kenyatta featured in FORBES’ inaugural ranking of Africa’s richest people with a fortune we estimated at $500 million but was dropped off subsequent lists because of new information regarding the complex distribution of business assets among the Kenyatta family members.
www.mondaytimes.co.ug/details.php?option=acat&a=3654#.VcxiJn1-hkj
Where Museveni’s wealth is hidden
The rumors surrounding Museveni's wealth forced us to investigate this wealth that he keeps talking about and which the public speculates about.
Written by Peter Mukasa
Last Friday President Yoweri Museveni again boasted that he is a rich man. For sometime Museveni has been speaking about his wealth and not a single item of wealth is clearly known by the public.
The town is loaded with claims about different property being owned by Museveni but no single document has surfaced to that effect. Where does Museveni hide his wealth?
When Museveni said he had borrowed money from a bank and serviced it back in three months, he raised eyebrows. The question was "how could a whole president who has the state coffers to himself go to a commercial bank to borrow money?” We set out to investigate.
Our investigations have discovered that Museveni’s core wealth is in agriculture, particularly livestock. The president owns over 10,000 cows which are each valued at 2,000,000 (two million) shillings each. The total value of his ranches (Rwakitura and Kisozi) therefore is 20 billion shillings.
However these cows are not static. He is reported to provide thousands of litres of milk to different industrial milk processors in the country. In a single month, a presidential aide tells us, Museveni makes at least 300,000,000 (three hundred million) shillings in milk supply.
The president also sells beef (from his cattle) to different establishments that use beef for minced meat, sausages and so on.He is a major supplier to hotels in Kampala that use his beef to serve clients.
How Museveni manages his farm income
It is obvious that the rigorous demands of business cannot be handled by a man as busy as Museveni. Other sources tell us that Janet Museveni is at the centre of managing these cows and their supplies to the different places where Museveni sells his cattle products.
Museveni is also known to staff his farms with veterinary doctors and accountants, most of whom are relatives. For this reason it is hard for fraud to take place in those farms.
