Archive for October 1st, 2011

Kenya breaking news – Update to developments along the Kenya – Somalia border where a French citizen was abducted from Manda Island / Lamu

Update 2:

Latest information from Kenya says that Kenyan coast guard and navy vessels have cornered the abductors of a French tourism from Manda Island last night and that presently there seems to be a standoff. It is understood that this is still in Kenyan waters and that the abductors have failed to reach the Somali border and cross it. 

Update:
Additional information has been received from usually well informed sources in Nairobi that a large contingent of Kenyan military personnel has been deployed along the common border with Somalia after some hit and run attacks by suspected Al Shabab militias and other militants, which in a shift of position may see Kenya actively enter the conflict across its border. Serious fighting had broken out in Somali but apparently also spilled over to Kenyan territory where in particular refugee camps are affected and UN and other aid organizations are scrambling for safety. Kenya had long stayed out of the conflict and while hosting Somalia talks and politically supporting the TFG in Mogadishu had not contributed troops to the African Unions peace keeping force so far. However, the murder of a British tourist and the abduction of his wife three weeks ago had prompted a rethink and the overnight reports of the added abduction of a French tourist and the ensuing hot pursuit by Kenyan security forces had probably now turned the tide with Nairobi thinking enough is enough. Al Shabab too is becoming aware of these developments and from again usually well informed sources it is understood that large numbers of fighters are moving towards the Kenyan border, where if they do not stop they will undoubtedly get a hot reception. If any of these developments have a direct connection to the abductions, so as to have hostages as bargaining chips, cannot be at this stage ascertained but from past experience it would be very well within the tactical thinking of Somali militants to have human shields standing between them and Kenyan forces now finally ready to engage militarily with Al Shabab.

News are emerging from a range of sources in Mombasa and Nairobi that a second tourist kidnapping has taken place from the Manda Bay Resort near Lamu, when apparently a French woman was abducted in similar style as the recent kidnapping of a British woman from the Kiwayu Safari Resort three weeks ago.
There is no confirmation at this stage that any shots were fired, unlike at Kiwayu where the husband of the British tourist was killed in the abduction, but this latest development, and in fact nearer to the much better protected Lamu, has the tourism industry in jitters now.
A local member of parliament and the Lamu police chief appear to have confirmed the abduction last night to a Reuters correspondent in Kenya and police and security services are reportedly in pursuit of the abductors who fled by speed boat towards the Somali border in a near repeat of the same pattern three weeks ago.
Tourism sources in Kenya are presently not willing to make any public comments on the matter, citing lack of reliable information though have promised to go on record just as soon as they have been given all the details, but more likely waiting for clearance from government in view of this rather sensitive and potentially very damaging development.
One regular source from Mombasa though did off the record say: if this is true than we, our security forces have failed to blanket the coast from the Somali border to Lamu and towards Malindi with surveillance. Only a few weeks ago we had the case of a British woman being taken, her husband was shot, and now again and from right under our noses in Lamu? It may be the same group who was behind the first kidnapping and all searches in Somali from ground and air have failed to trace them so far and get the British lady back. If we are to survive this incident, if it is at all true because our media in Kenya are not saying anything about it, we need to reassure our tour operators that Kenya is safe, not by words but by action. Still I need to find out if this really is true from my colleagues in Lamu and Malindi. This strip of coast has always been sensitive and we know that Somali groups can stage hit and run attacks. That area should be full of our navy boats and our army on the ground to give us a sense of safety.
Watch this space for forthcoming updates at a later stage when more information has become available from sources on the ground or else through formal statements by the Government of Kenya.

Kenya news update – Stakeholders say no to new proposed fee on air tickets

AIRLINES AND TOURISM STAKEHOLDERS SAY NO TO EXTRA FEE
The coming into effect of the new Kenya Tourism Bill last week, when President Kibaki made it law by putting his signature to it, will also usher in an era of additional public bodies to be created, and more important to be financed. The now mandatory formation of such new bodies as the Kenya Tourism Authority, the Kenya Tourism Finance Corporation and others is driving home the final recognition that all of this will require funding, something the sector has been short of in recent years already.
Tourism marketing alone is asking for a multi billion budget allocation, and while certainly paying back by bringing in ever more tourists, creating jobs, investments and contributing to the national coffers by a range of assorted fees, charges and taxes, the ministry of finance has not given enough financial support in the past to allow the Kenya Tourist Board to fully implement their ambitious plans, even though regionally they do spend the most money to lure tourists to the country.
The new bodies however are now equally looking at the treasury and are hoping to get their slice of the money cake set aside for the tourism sector, something which has not amused the marketing gurus, one of them saying overnight to this correspondent this is our money, we are fighting hard for our budget and cannot share it with other new bodies. They must also learn to find funding but please not by cutting our already limited funding.
Minister Balala, normally an outspoken advocate of higher government funding for his sector, has now opened another can of worms when earlier in the week proposing a new fee on airline passengers of 10 US Dollars, something which immediately drew a mixed reaction from the industry.
A regular aviation source said: Our government thinks this industry is a cow which gives butter cream and milk without feeding it. KCAA are already looking at increasing some of our fees by as much as 400 percent. Now if Balala wants to find money for marketing, and I bet you it is not for that alone but to finance his new empire building with all those additional bodies no one knows even what they are supposed to do, he should look elsewhere. They could increase the Catering and Training Levy for instance, which is specifically to finance the sector. Why add again more charges for air tickets. Germany and Austria have done that with their eco taxes, the UK too is moving that way and aviation there is suffering from dropping demand. The EU emission trading scheme of next year will load a lot more financial burden on airlines and this makes flying to Kenya more expensive again. Now we also want to add 10 more Dollars to that? Our government should cut down on size and not hide behind the new constitution that everything has to expand in public service. If there is not money they should shelve it, trim fat cat benefits for parliament and procure services competitively. We in the private sector have to tighten our belts and the public sector is growing fatter.
Other tourism sources too have expressed their dismay over loading tourist with yet higher cost and one regular contributor said: and then there is the Eurozone crisis. We do not know how this will affect us. If this spreads around the globe like in 2007/8 we might see another downturn. Into this climate of uncertainty let us not increase cost but seek to be competitive. And we must be sure, absolutely sure, that any additional money by taxes, levies and fees from tourism comes directly to tourism and not goes to the treasury. Once money goes there it never comes out again, or only a portion, so that is something we in the private sector will not budge on. If money must be raised for tourism marketing, let it be for marketing not other administration expenses, strictly.
Mixed feelings then over the ministers attempt to find more funding, a lot more funding in fact and the ongoing debate which is undoubtedly going underway now will be closely monitored as it unfolds between Kenyas private and public sectors. Watch this space.

Kenya breaking news – Another abduction reported from Lamu’s Manda island

SECOND KIDNAPPING OF TOURIST NEAR LAMU SHOCKS KENYAS TOURISM SECTOR
News are emerging from a range of sources in Mombasa and Nairobi that a second tourist kidnapping has taken place from the Manda Bay Resort near Lamu, when apparently a French woman was abducted in similar style as the recent kidnapping of a British woman from the Kiwayu Safari Resort three weeks ago.
There is no confirmation at this stage that any shots were fired, unlike at Kiwayu where the husband of the British tourist was killed in the abduction, but this latest development, and in fact nearer to the much better protected Lamu, has the tourism industry in jitters now.
A local member of parliament and the Lamu police chief appear to have confirmed the abduction last night to a Reuters correspondent in Kenya and police and security services are reportedly in pursuit of the abductors who fled by speed boat towards the Somali border in a near repeat of the same pattern three weeks ago.
Tourism sources in Kenya are presently not willing to make any public comments on the matter, citing lack of reliable information though have promised to go on record just as soon as they have been given all the details, but more likely waiting for clearance from government in view of this rather sensitive and potentially very damaging development.
One regular source from Mombasa though did off the record say: if this is true than we, our security forces have failed to blanket the coast from the Somali border to Lamu and towards Malindi with surveillance. Only a few weeks ago we had the case of a British woman being taken, her husband was shot, and now again and from right under our noses in Lamu? It may be the same group who was behind the first kidnapping and all searches in Somali from ground and air have failed to trace them so far and get the British lady back. If we are to survive this incident, if it is at all true because our media in Kenya are not saying anything about it, we need to reassure our tour operators that Kenya is safe, not by words but by action. Still I need to find out if this really is true from my colleagues in Lamu and Malindi. This strip of coast has always been sensitive and we know that Somali groups can stage hit and run attacks. That area should be full of our navy boats and our army on the ground to give us a sense of safety.
Watch this space for forthcoming updates at a later stage when more information has become available from sources on the ground or else through formal statements by the Government of Kenya.

Tanzania news update – Councillor changes his mind, JV agreement between Serengeti District Council and Grumeti now ready to be signed

SERENGETI COUNCIL NOW SUDDENLY READY TO SIGN JV AGREEMENT
In a strange turn of events, following earlier reports that the signing between Grumeti Reserves and the Serengeti District Council had bounced did news emerge overnight that the councilor who had raised the concerns appears to have changed his mind when the matter, according to his request, was tabled at the meeting of the committee to which he had wanted the entire JV document referred for review.
Information availed from Arusha now seems to indicate that the Joint Venture Agreement, verbally in place already for almost a decade, will now finally be signed next week, filling the councils coffers with some 200 million Tanzania Shillings annually for halting hunting permits in the area around Grumetis sphere of interest and influence as the source put it.
There is now of course intense speculation over the reasons of the sudden change of mind, leaving all options open of how to interpret this development, either that he has been heavily leaned on by his colleagues and in particular the council chairman who had apparently guaranteed the deal would be signed last week or else. Watch this space, should ever the truth emerge.

Uganda news update – Where did the allegations against the Minister come from?

IS A MEMBER OF THE UWA COMMISSION BEHIND THE MUD THROWN AT MINISTER?
There is speculation that a source from within the Commission of Enquiry could have deliberately leaked unsubstantiated allegations that Prof. Kamuntu, now the Minister for Tourism, has accessed UWA money to inoculate his cattle against foot and mouth disease. Prof. Kamuntu denied any such charges while he answered to the media over his directive to the commission of enquiry to wind up their work and immediately submit their report, something which clearly did not go down well with the commission chair, retired and ever more controversial Supreme Court Justice George Kanyeihamba. He in turn seems to have cast aside the ministers directive and directly written to the office of the president asking for yet another extension of his commissions term, after the expiry of a concessional extension by already three months earlier in the year.
Usually well informed sources said on condition of anonymity: we cannot rule out that such attempts to smear our ministers name could have come from there. It seems that someone found something in their files and could have used it. We just dont know. But as for me, this would be a clear violation of their mandate. They should write the report and bring it for study. They should not release any such information at this stage when witness hearings are long over and try damage someones reputation because he might be opposed to some of their requests.
For more twists and turns in this long running and damaging saga, watch this space.

Rwanda news update – US Senate unanimously ratifies BIT with Rwanda

RWANDA US BILATERAL INVESTMENT TREATY RATIFIED
The US Senate has during the week in a unanimous vote ratified and sanctioned the bilateral investment treaty signed between Rwanda and the United States. This move further underscores the progress made in economic development by The New Rwanda since the 1994 genocide which has left the country in ashes, only to rise like the proverbial Phoenix to become one of Africas role models for transparent and accountable government.
Promoting investments, trade and tourism in a holistic manner under the Rwanda Development Board, Rwanda has managed to capture the attention of many investors from around the world and spurring additional interest in the countrys tourism attractions, boosting visitors numbers and foreign exchange earnings in the process while opening markets for Rwandan produce abroad such as coffee and tea.
Only last week was it reported here that OECD has ranked Rwanda at the top of their performer scale for the best use of development support and bilateral aid, showing the world that it can be done in Africa as long as good governance rules.
Trade volumes between the United States and Rwanda are bound to sharply increase this year with the purchase of two B737-800 by national airline RwandAir, which has reportedly also committed to the purchase of two B787 Dreamliners in 2015. In turn, Rwanda exports quality coffee to the United States where the establishment of a branch of the Bourbon Coffee Shop has greatly aided the exposure for tourism and trade opportunities amongst the US business community. The Land of a Thousand Hills undoubtedly going places.

Uganda conservation news – Rafting for Rhinos raises 23+ million Shillings

RAFTING FOR RHINOS RAISES 23 MILLION AND AWARENESS

(Rafting for Rhinos 2011 book your own date for 2012)

The Raft for Rhinos races on the upper Nile last weekend have according to Angie Genade, Executive Director of the Rhino Fund Uganda and the Ziwa Rhino Sanctuary raised about 23 million Uganda Shillings, a significant boost for the sanctuarys ability to reach financial self sustainability.
The races were won by a team from the Peace Corps, with their supporters proudly waving the American flags, while runners up were the Rhino Rangers Ziwas own team followed by the team fielded by adventure company G&C Wild Frontiers and The Kjongs coming in fourth overall.
Hundreds of expatriates, company executives and many spectators from the area around Jinja came to witness the spectacle. Representatives from the Uganda Wildlife Authority, the Uganda Wildlife Education Centre and Ngamba Island our national chimpanzee refuge were also present as were senior members of the tourism fraternity who had helped to promote the event.

(Competing teams making their way to the rapids / Picture courtesy of Angie Genade, RFU)

Equally important though from the conservation standpoint, was the raising of awareness across the country of the presence of the prized animals in Uganda and the breeding programme which the Rhino Fund Uganda has made possible with the construction and establishment of the Ziwa Rhino Sanctuary, strategically located en route to the Murchisons Falls National Park where literally all of Ugandas tourists pass.
The initially imported 6 adult Southern White Rhinos, three male and three female were since then joined by 4 babies, three male and the latest birth a few weeks ago a much celebrated female, while the two other female adults are also due to give birth again between October and the end of the year.
Protection measures for the rhinos have been significantly stepped up by the sanctuary and the armed guards, under the disciplinary supervision and operational guidance of the Uganda Wildlife Authority, are deployed 24 / 7 to protect the growing herd. Adds this correspondent in closing: in my capacity as the immediate past chairman of the Rhino Fund Uganda this makes me particularly proud, to see Ugandas business and NGO community rally around RFUs objectives and extending such splendid support, financially and morally. RFU has now demonstrated that the breeding programme we established many years ago has been successful and it is time for our international friends and supporters to assist us in bringing in a breeding stock of Eastern Black Rhinos, a species originally found in Uganda, so that both species can eventually be restored to the national parks when the numbers in Ziwa so permit.
Well done to Angie and her entire team at the sanctuary for a superb job. Visit angie on details how to assist and support the rhino breeding programme in Uganda.

Uganda news update – Inflation now stands at 28+ percent, shocks business community

INFLATION RUNS AWAY WITH 28.3 PERCENT IN SEPTEMBER
Ugandans will wake up today to the shock news of a 28.3 percent inflation figure, published yesterday afternoon through the relevant departments of the Bank of Uganda and the Uganda National Bureau of Statistics. Last months figure, now looking relatively modest, was 21.4 percent and it was generally expected that the doubling of phone charges might push the annualized inflation to 25 percent but not to over 28 percent. Food prices, the key item for ordinary Ugandans, when taken as a standalone figure and not in a weighed basket of goods and services rose in fact by 50 percent compared with a year ago, pushing the absolute limits now for making salaries last through a month, feeding families, paying utilities bills and affording transport to work for millions of wananchi.
Economic observers and analysts feel that this latest data alone is almost bound to drive inflation even faster, as traders and businesses will try to push the use of hard currencies for their local transactions, likely to cause a further devaluation of the Uganda Shilling, similar to the neighbouring Kenya Shilling last week falling for some time through the psychologically important 100 mark.
Fundamentals are also not in favour of Ugandas economy now as the countrys import bill by far exceeded its export earnings and increased production becoming literally impossible with the ongoing sharp power rationing by monopolist distributer UMEME, which earlier in the week reverted again to a 24 hour no power cycle when independent power producers failed to get paid their contractually agreed subsidies and had to switch off their plants for lack of cash. Earlier in the week did the Uganda National Chamber of Commerce and Industry together with the Private Sector Foundation Uganda held a key dialogue and electricity rationing, together with the weak shilling and runaway inflation were indeed amongst the key issues raised by participants representing the business community.
While there has been no official communiqué issued by government as yet, the bombshell news has overnight certainly rocked the political establishment in the country, as a key component of the NRM government, economic stability, has been put to serious questions now and although parliament is presently in recess it is expected that the opposition will make the most of it and lay blame squarely on governments doorsteps for failing to arrest the slide of the Ugandan currency and halt inflation.
Bank sources have also indicated that they expect a further rise in Bank of Uganda interest rates as one of the available measures to take liquidity out of the market and make borrowing more expensive, thought to be a fine balancing act between combating inflation and strangulating economic activity. Notably was Ugandas Bank of Uganda Governor Prof. Tumusime Mutebile recognized last week as Best African Central Bank Governor for his work, but fighting this battle on behalf of the countrys economy will take very likely all he got to bring the ship back on level keel. The country has not seen such inflation figures since back in 1992/3, i.e. some 19 years ago when this correspondent moved from Kenya to Uganda.
Regular tourism sources were unwilling to neither go on record nor speak off the record when asked to comment late last night, also giving an indication of how the latest release of inflation data has shocked the business community. Watch this space.

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