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The 2019 Fishrot scandal was a moment of epiphany for many Namibians; a coming to terms with the unpleasant reality that Namibia’s public service has been a hotbed for corruption for many years.

And the recently hatched Walvis Bay Port syndicate indicates that, that unfortunate reality remains the status quo.

In 2019, DP World, a Dubai-owned port operator, under the aegis of Sultan Bin Sulayem, with support from the former Transport Executive Director, Willem Goeimann orchestrated a plan to gain control of the newly constructed N$4.2 billion Walvis Bay container terminal through a direct agreement for a period of 50 years.

DP World’s strategy included extending unwarranted generosity to several Namibian decision makers, some of whom were completely oblivious of their true intent; to avoid a competitive process that would most probably undercut their chances of controlling this strategic asset.

To bypass Namibia’s procurement laws and justify a direct agreement, DP World’s agents pushed for a largely farcical Government-to-Government agreement between UAE and Namibia, which was a mere smokescreen, hiding DP World’s real motive.

This deception was clearly manifested when they signed an MOU with Nara Namib to develop a Free Economic Zone in Walvis Bay.

Notwithstanding their well-orchestrated scheme, in a real show of patriotism, a number of government officials and members of the Board of Directors of Namport turned down DP World’s direct agreement proposal.

It was considered dangerous and inimical to the interest of Namibia. Following the rejection of DP World’s direct agreement proposal, the expectation from all stakeholders, both local and international, was that the Government of Namibia would revert to the due process by instituting a fair and transparent tender process to award the concession of the strategic Walvis Bay Container Terminal, in the interest of the Namibian people.

DUBAI Namport Walvis bay futuristic transport

Alas, doing something as noble as that would have been completely out of character for the current Namibian government.

Instead, it was Sultan bin Sulayem, the senior management of DP World and their local associates that quickly adapted to the new situation and came up with a new plan to achieve their unscrupulous agenda.

Under the pretext of a transparent process facilitated by the Namibia Investment Promotion and Development Board (NIPDB) run by the capable CEO (some would say pawn) Nangula Uaandja, invitations for the Expressions of Interest (EOI) were sent out to a large number of potential operators, selected by NIPDB.

However, this was just a ruse to give the impression that the country’s procurement laws are being complied with.

Several sources disclosed that DP World managed to influence and manipulate the evaluation criteria in such a manner that it will disqualify all other offers save theirs and those of sister companies.

They simply managed to get NIPDB to combine three different components (container terminal, free zone and a custom’s single window), which in reality requires completely different skills and criteria, under the fancy marketing name of “Walvis Bay Industrial Development Initiative (WIDI”).

Combining these components will most likely prove detrimental to the country, but it seems no one made the effort to analyse it in detail.

The process was structured in such a way that only the Government of Dubai, which owns DP World, Jebel Ali Free Zone and the Dubai customs, could comply with the selection and evaluation criteria.

All the other companies were only invited to legitimise the process and make it look transparent and credible. With that pseudo legitimacy, NIPDB, which has ultimate control over the process, will be able to evaluate the proposals against the selected criteria, eliminate the rest of the companies and enter into direct negotiations with DP World.

In a blatant disregard and contravention of the laws of Namibia, Namport, which according to the Namibian Ports Authority Act, 1994 is the only authority that has jurisdiction over the port of Walvis Bay, was completely excluded from the process.

Sources close to Namport intimated that it had been engaging a number of potential partners who were prepared to offer much better terms than DP World yet; their hands are tied as a result of the processes that are being facilitated by NIPDB.

As a result, the road is clear for DP World to gain control of these critical and vital assets at the expense of Namibia and its people.

Institutions such as the IMF, the World Bank and the African Development Bank (who financed the construction of the container terminal) should step in and make sure that their assistance and contributions are serving the people of Namibia and not DP World, a company owned by the Government of Dubai.

It seems as if there is no end when it comes to Namibia’s strategic resources and unscrupulous foreign opportunists.

As with the Fishrot saga, all you need is the opportunity, an architect to draft the master plan, a local agent that knows how to manipulate the system, a few key officials and the unscrupulous foreign investor to exploit Namibia and deprive it of real economic development.

One would think that President Geingob and his government would by now have resolved to do everything in their power to avoid another N$ billion corruption scandal, which could undermine his and the ruling party’s credibility, but alas, they remain unperturbed.

They remain so even as the scourge of corruption continues to ravage the lives of ordinary Namibians.

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An electrician involved in a legal battle with a flower firm in Naivasha wants it ordered to pay him Ksh 9 million for unfair dismissal.

David Njite filed a suit at the Employment and Labor Relations Court in Nakuru and claims that he was employed by Rainforest Farmlands on permanent and pensionable basis in September 2014.

However, he claims he was sacked on April when he returned to work after two weeks of isolation after contracting Covid-19.

The company in defense said that in a disciplinary meeting held on April 6, 2021, and attended by Human Resource Manager, General Manager, Regional Technical Representative and Njite; it said that it had satisfactorily proven issues of laxity and negligence agaisnt him.

Reports say that the electrician was accused of failing to maintain an electric fence to the required standards, failing to reconcile electrical items sent for repairs, delaying to recover items from repair suppliers among others.

A letter signed by General Manager Camilo Serrano showed that Njite was ordered to vacate the staff quarters within 14 days. Njite, however, claims that the reasons for termination of his employment were outside his job description

“In April 2021, the claimant fell sick, and upon tests, it was confirmed that he had contracted Covid-19. That meant he would isolate from work. Upon getting back to work, he was issued with a termination letter,” read a part of the petition .

Njite accuses the Regional Technical Representative of convincing the General Manager to terminate his employment and that the reason for termination was baseless.

Njite said that a plot to terminate his employment started when he was issued a memo on March 14. It directed him to return all company tools to their store, and he complied.

He added that as he was returning the tools, the Regional Representative, without notice, searched his office and collected some machines, terming them tools not returned.

The firm denied allegations raised against it and claimed the termination of Njite’s employment was fair and based on valid grounds. ” The claimant’s (Njite) sit as pleaded is misconceived and should be dismissed with cost to the respondent (flower company).” read the response.

The company claims Njite, during his employment, was given a laptop and its bag, which he did not return upon dismissal.

It further claims that Njite is liable to it for damages of Sh 100,572 for the laptop, the bag, a wireless mouse, and foregone rent of Sh 60,000 for the period he had been in illegal occupation of cottage since April. The case will be mentioned on October 19.

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Farmers in Bomet must be a happy lot after their governor, Dr. Hillary Barchok struck a deal in Iran to export 200 metric tons of tea per month.

This deal has attracted various interested parties as it is expected to boost the earnings of the small scale tea growers in the South Rift region.

This comes as Dr. Hillary Barchok came out to calm tension and fear that it would be hard to remit money to Kenyan traders after the US imposed sanctions in the Islamic Republic of Iran.

The governor came in defense that the imposition by the US government on Iran does not affect foodstuffs and drugs. As such, the trade will be accomplished by paying money to farmer’s cooperative societies and private tea factories.

The direct sale of tea through Mombasa Tea Auction is more lucrative to the participants as a kilogram of CTC tea selling for a minimum of 3 US dollars (Ksh 300).

According to Nation, the tea exported from Bomet is stocked at Etka Organization Company Limited chain stores, which is a leading chain store for food products in Iran.

The 86 metric tons of tea exported by Bomet County on June this year, was sold for 27.7 million which translates to sh 90 per kilogram more than what is got at Mombasa Tea Auction.

A delegation while addressing the press at the Bomet County headquarters, said once the Food and Drugs Association (FDA) certifies that the tea is safe for consumption and sale in Iran, the purchase price will be raised with tea currently retailing at sh 900 per kilogram in the outlets of Tehran.

Amidst this deal, agriculture CS Peter Munya disagreed with Bomet governor over the deal claiming that it was not approved by the national government and other relevant bodies. CS Munya argued that the direct sale of tea to Iran would open opportunities for brokers to hide their total earnings from farmers, thus further impoverishing them.

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The struggling Kenya Power and Lighting Company (KPLC) is now a special project for the government.

The government on Thursday decided to take over the company in a bid to deal with the mess that is choking the energy giant; by ordering detectives to uncover the mess in the parastatal.

The mismanagement affecting the national power supplier threatens to affect the fundamental sectors of the economy as electricity prices in Kenya becomes on of the highest in the world.

The government’s intervention seeks to save the company from the brink of bankruptcy and see all its operations from recruitment, management to procurement come under close watch.

This decision came shortly after a three-hour crisis meeting chaired by Interior CS Fred Matiang’i, led by Kenya Power board Vivienne Yeda and acting Kenya Power acting managing director Rosemary Oduor.

Others are Energy Principal Secretary Gordon Kihalangwa, his Treasury counterpart Julius Muia and Anne Erickson a member of the presidential taskforce on the Review of Power Purchase Agreements (PPAs).

Dr. Matiang’i ordered a forensic audit to unearth financial dealings that are similar to fraud and sabotage.

Given the task is a multi agency team comprising of detectives from the Directorate of Criminal Investigations, Financial Reporting Agency, Asset Recovery Agency and others.

This investigation comes after allegations that some workers are colluding with large electricity consumers to either lower or evade paying electricity bills.

The team will also investigate power purchase agreements that have punished consumers to expensive electricity bills, notorious multi-billion shillings tenders, inside trading, conflict of interests by top management of the company and other illegal dealings by its workers.

This comes several weeks after President Uhuru Kenyatta created a taskforce to investigate and bring recommendations that would see reduction in the cost of electricity. The government ordered the company to reduce the bills by 33 percent within four months.

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According to World Bank’s latest report dubbed Africa Plus Report, Kenya’s economy is going to improve by five percent this year as a result of improved construction and ICT sectors and the continued roll out of COVID-19 vaccines.

The report indicates that the county’s economy is set to improve faster than Sub-Saharan Africa’s growth average of 3.5% this year.

This means that Kenya’s economy is set to rebound from 0.3 percent improvement in 2020 to 5.0 percent in 2021, and it is expected to grow at an average of 4.8 percent in 2022.

This positivity is attributed to the improvement s in the construction, education, information and communication and real estate sectors.

World Bank also said Kenya’s improvement in the economy would have been faster this year were it not for the third wave of COVID-19 fueled by the Delta variant.

The restrictions imposed hurt the external economy in Kenya which led to a decrease in the export of coffee, tea and roses which exerted pressure on the current account which led to a deficit.

This projection by the World Bank is different from that of the Treasury that had said Kenya’s economy would improve by 6 percent in the medium term caused by a turnaround in trade, increased agricultural output and the general improvement in world’s economy.

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Businesses are hopeful as they wait the Kenya Revenue Authority (KRA) to refund money it collected as minimum tax. The tax body argued that the High Court ruling that Section 12D of the Income Tax unconstitutional means that the taxman has to start refunding the collected revenues.

KRA has however moved to the Court of Appeal to challenge the High Court’s judgement made on September 20, 2021; that stopped it from collecting the minimum tax at the rate of 1% of the gross turnover.

This minimum turnover is based on gross turnover and not gains or profits, and that all businesses even those making loses are required to pay.

High Court Judge Justice George Odunga ruled that the government’s plan to impose a minimum tax on businesses even when the business reports loss is illegal.

The minimum tax took effect in January 2021 after changes were made on the Income Tax Act in 2020. KRA’s move to the Court of Appeal shows its attempt to enforce the collection of Ksh 21 billion from businesses in the year to June, 2022 an effort to plug its revenue shortfalls.

Treasury CS Ukur Yatani told Parliament that the High Court’s judgement left KRA with sh 22 billion budget deficit.

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Fuel prices could be reduced this week as the government conducts a crisis meeting with stakeholders in the energy sector.

The meeting will be chaired by CS Fred Matiang’i and will focus on the high cost of electricity according to the findings of the report of the presidential task force on the review of Power Purchase Agreements (PPAs).

The team will discuss the challenges facing the energy sector and create a strategy to reduce the prices that have increased the cost of living.

Details of the meeting were revealed by the Super CS on Sunday when he stated the overhaul of scandalous Kenya Power will be among the key issues to be discussed.

While presiding over a fundraiser in support of Seventh-day Adventist Church in Isinya Kajiado County, Matiang’i said, “In light of the challenges facing the Ministry of Energy announced by the President, we shall this week start an aggressive programme to reduce the cost of fuel and electricity.”

The announcement comes a day after ODM leader Raila Odinga, while addressing a crowd in Bungoma hinted that the government would reduce the cost of fuel this week.

Dr. Matiangi’i said he would ensure the recommendations of the stakeholders’ meeting are implemented. The task force which is chaired by John Ngumi suggested an overhaul of Kenya Power and review of the PPAs between the company and private firms.

The task force noted the great difference between KenGen and IPP tariffs and electricity dispatch allocations and and lack of proper demand forecasting and planning as some some of the issues contributing to losses at Kenya Power.

Last week, Preident Uhuru Kenyata directed the Ministry of Energy to establish a path towards the reduction of the cost of electricity by over 33 percent within four months. In this anyone who spent Sh 500 per month for electricity shall by end of December 2021, pay shillings 330 per month.

On Wednesday, the President redeployed Energy CS Charles Keter and his PS Joseph Njoroge hours after receiving the report of the task force.

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The Energy and Regulatory Authority (EPRA) has released a list of 14 fuel stations that sells adulterated fuel in various town of the country. The authority has also released names of Liquefied Petroleum Gas dealers who have been operating illegally.

EPRA began a 3-month investigation in July 2021, carrying out over 5000 tests. As a result, they discovered 1151 petroleum sites were selling fuel meant for exportation. The sites were identified after a close monitoring of the quality of petroleum motor fuels on sale, storage and transport throughout the country.

The various stations are located in Nakuru, Homa Bay, Nairobi, Bungoma, Busia, Marsabit and Kakamega. The stations situated in Nairobi include; Spareman Trading Limited Home Gas found along Enterprise Road, Alfa Gs Limited in Makadara, Easi Cooking Gas Limited off Lunga Lunga Road, Unregistered Site along Rangwe Road, More Gas Limited in Indistrial Area and Menengai Engeneering and Petroleum in Makadara.

Others are Tydes General Merchants Limited at Nyeri Ragati in Market, Depar Limited in Sagana town, Kirinyaga, Saxiib Filling Station in Murang’a, Street Travellers SACCO Filling Station at Kanu Street in Nakuru, Jasho Filling Station in Homa Bay, Saifa Filling Station in Kemera, Nyamira and Nyang’inja Filling Station in Kendu Bay.

The rest are Homa Bay, Ola Energy Kakamega A service station in Kakamega, Geoffery Omenda Filling Station at Kimwanga Kanu in Bungoma.

Also those who didn’t miss out are; Bahari Filling Station in Wundanyi, Taita Taveta, Habiba Adan Fuel Samples at Moyale Police Station in Marsabit, Mariam Ibrahim Adan Fuel Sample at Moyale and Fatuma Hassan Adan Fuel Sample at Moyale Police Station.

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Fly 748 Air Services (K) Ltd, a reliable aviation company that provides both air charter services and scheduled services has launched cheap daily flights from Nairobi to Malindi.

The flights will be taking off from Jomo Kenyatta International Airport (JKIA) to the Kenya’s Coastal town.

The route will now see passengers enjoy a very competitive return ticket cost starting from as low as KEs 10,700.

Fly 748’s fast and versatile Dash 8-Q400 fleet with a capacity of 78 passengers will be flying the route.

The new Nairobi-Malindi route comes just a month after the airline opened its Mombasa offices.

The opening of the Mombasa offices aimed at supporting recovery of hospitality sector that bore the biggest brunt of COVID-19 pandemic.

According to 748 Air Services Chairman Ahmed Jibril, the new route will help more domestic travellers experience the best of Malindi at very competitive rates.

Speaking during the launch of the Nairobi-Malindi route on Friday October 1, 2021, Mr. Jibril said 748 Air will also be contributing significantly to full recovery of hotel establishments in the Coastal areas by boosting their foot traffic.

The new routes first flight departed JKIA in Nairobi at 12:00p.m. on Friday for Malindi and left the coastal city for the capital at 02:00 p.m.

To allow you plan well ahead and have much more time to enjoy the splendour of Malindi, 748 Air Services Managing Director Moses Mwangi said the airline will work to ensure zero flight cancellations and delays.

Malindi now brings the airline’s domestic routes to five, having already operations to Mombasa, Kisumu, Ukunda and Maasai Mara.

The airline started its aggressive expansion of its domestic scheduled flights in May, with two daily flights between Nairobi and Kisumu and later on started operations in Mombasa and Diani.

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In the year ending March 2021, Teleco Company Safaricom PLC fired 28 of its staff over various fraud related allegations.

This was an increase compared to 16 dismissals in 2020.

According to the company’s latest sustainability report released on Wednesday, it indicated that 36 investigations were conducted into the alleged fraud and made 28 dismissals.

All the same, 19 employees were warned. One of the cases was forwarded to government agencies for further action.

Most of these cases, 22, involved data privacy while eight was breach of policy and four SIM swap and two cases of asset misappropriation.

The Teleco Company has said that it has established fraud management team specializing in analytics, customer awareness and process reviews to drive safety of its clients.

Data protection has become a vital area since the government instituted rules restricting the State and companies handling information from misuse, imposing a fine of up to 5 million or one percent of annual turnover for corporations.

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As Kenya is struggling with the high costs of fuel, drivers in Britain encountered frustrations as they hunted petrol for hours or sat stuck in queues wanting to fill their tanks in gas stations. This is was as a result of major gas stations running dry as a result of trucker shortage, this compelled the government to deploy the army to out the army on standby.

According to Reuters, dozens of forecourts had been closed with signs that saying they had no petrol or diesel. This was exasberated by a shortage of lorry drivers and a halt to truck-driving license testing during COVID-19 lockdowns. This has resulted in chaos through supply chains and increasing the spectre of shortages and increase in prices up to Christmas.

Kwasi kwareteng, the Business Secretary said that a limited number of military tanker drivers are ready to be deployed to deliver fuel if necessary.

Reports say that fights broke out in some fuel stations as drivers struggled for fuel. Medics have said that health workers should be given a priority to fill their cars.

Chaos erupted in the world’s fifth largest economy as shortage of truck drivers grio the nation, straining the supply chain and an increase in European wholesale natural gas prices tipped energy companies into bankruptcy.

Retailers, truckers and logistics companies have warned that prices for everything from energy to Christmas gifts ought to rise.

Ministers in the country, fuel companies and petrol stations claim that there are sufficient supply of fuel but the lack of drivers coupled with panic buying has drained the system.

On Sunday, the government announced that it was making plans to issue 5000 visas to foreign truck drivers. Polish hauliers have however seen this as a joke arguing that only fee might take it up. Hauliers and petrol dealers in Britain have argued that there are no quick solutions as the shortage of drivers is estimated at 100,000, they said this is serious and transporting fuel needs extra training and licensing.

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Infinix today announced the new ZERO X Pro smartphone in Kenya featuring a remarkable camera and visual capabilities that allow users to create a masterpiece out of every moment captured. The ZERO X Series includes three variants – the ZERO X Pro, ZERO X and ZERO X NEO – which all include breakthrough visual technologies such as a Dual-Chip flagship gaming processor, 60X periscope moonshot camera and Infinix’s Galileo Algorithm Engine, a top-notch software feature allowing a high resolution looking shot of the Moon.

Infinix Zero X

“Infinix is not only a brand that combines quality performance, cutting-edge technology and innovative design at accessible prices in comparison to other smartphone devices in today’s market but also known for creating devices to cater to the needs of consumers in the emerging markets.” shared Charles Ding, Deputy Product Director of ZERO X Series at Infinix Mobility. “The ZERO X Pro will feature the latest camera technology and image optimization to inspire young adults and emerging professionals to explore their creativity and place the power of professional photography firmly in their hands.”

Shoot the Moon

The ZERO X Series offers users a high-performing full focal length camera technology through a complete end-to-end imaging system that enhances any visual content.

Infinix equipped the ZERO X Pro with the 108MP OIS ultra-night Venti camera comprising of an 8MP periscope moonshot lens with 5X optical zoom and 60X hybrid zoom and a 120° field of view (FOV) 8MP ultra-wide & macro lens. The cameras are enhanced with Quad-LED flash and Infinix’s innovative Hybrid Image Stabilization (including OIS+EIS) solution to capture every detail in a larger field of view smoothly while reducing blurred images.

The ZERO X Pro features a 64MP super-night camera lens.

The ZERO X Pro also comes equipped with the Super Moon Mode, which combines a 60X periscope moonshot camera and the Galileo Algorithm Engine developed by Infinix. The Galileo Algorithm Engine combines lunar exposure and focus locking systems to quickly adjust the focus motor to the clearest predicted position, while revolution elimination algorithms calculate and eliminate the influence of natural tidal forces enabling a clear shot of the Moon. Simultaneously, lunar detail protection algorithms retain detailed textures and artificial intelligence (AI) deep learning enhancement algorithms improve the details and effects of the image subject. When turned on, users can achieve one of the clearest and detailed smartphone images of the night sky.

For the selfie camera, the ZERO X Pro offers a 16MP dual front flash and enhanced AI shooting technology to capture the perfect selfies. In addition, all ZERO X Pro smartphones offer high-quality videos with 960 FPS super slow-motion and 4K time-lapse. 

Much More Power with Dual-Chip Technology

To power the smartphones with efficient in-game accelerations and data processing, the ZERO X Series features a Dual-Chip flagship gaming processor, which combines the MediaTek Helio G95 chipset with the MediaTek Intelligent Display chipset.

The MediaTek Helio G95 processor is a 64-bit octa-core processor with two performance core ARM Cortex-A76, six power-efficient core Cortex-A55 CPUs clocked at 2.05GHz and 2GHz respectively and one of the fastest GPUs, the ARM Mali-G76 MP4(-900 MHz). The processor integrates MediaTek’s HyperEngine Technology to enable a faster response between smartphone and cell-tower, while also enabling connection to two Wi-Fi bands or routers simultaneously for lower game latency and reduced lag. The MediaTek Helio G95 chipset is paired with an individual Intelligent Display chipset to create the Dual-Chip flagship gaming processor that further boosts the smartphone’s visual capabilities. 

Consumers can also enjoy a comfortable and immersive viewing experience day and night with the ZERO X Pro and ZERO X’s 6.67” active matrix organic light-emitting diodes (AMOLED) display with 240Hz touch sampling rate and 120Hz refresh rate. With low blue light eye comfort certification, accredited by TÜV Rheinland, users can enjoy hours of use with less eye fatigue no matter the time of day. 

Other key features of the Infinix ZERO X Series include:

  • 4500mAh Battery with 45W Fast Charge Technology: The ZERO X Pro and ZERO X are equipped with a 4500mAh battery with 45W quick charge technology and TÜV Rheinland safe fast-charge technology, which charges the device to 40% in 15 minutes with added safety and assurance. The ZERO X NEO has a large 5000mAh battery with fully optimized TÜV Rheinland 18W Safe Fast-Charge Technology empowering today’s youth to do more on their smartphones.
  • Universal Flash Storage (UFS) 2.2 with Write Booster: Infinix’s Write Booster feature improves the writing and reading speed to accelerate application and cache loading and reduce delay or lag when switching and opening different apps.  
  • Audio Technology: The powerful combination of Smart PA and DTS technology enhances the amplitude and loudness to create a surround sound experience. 
  • Infinix’s Dar-Link 2.0: The software improves the image stability and the sensitivity of touch control that is based on an AI algorithm, while simultaneously bringing down the temperature of the device to provide a fully immersive gaming experience.
  • XOS 7.6 Software: Infinix’s latest operating system integrates applications designed for a smarter life, such as the Phone Cloner to transfer all data to a new device with ease, Game Zone to intelligently manage games by blocking distractions like incoming messages and calls and Doc Correction to auto-correct documents and adjust as needed for easier viewing. Infinix keeps software regularly updated so stay tuned for future updates.

Availability

ZERO X Pro, is available in Infinix outlets countrywide and online on Xpark here https://bit.ly/3AtqHT. The ZERO X Pro will be available in two colors in Kenya: Nebula Black and Starry Silver, at a retail price of Ksh 36,999. 

Infinix also released the XE25 Earbuds and XE20 Earbuds. The XE20 Earbuds offers 60ms super low latency, 10mm high efficiency composite diaphragm and auto-pairing to your mobile phone. The XE25 Earbuds pumps out high-quality sound with a graphene diaphragm, ENC(Environmental Noise Cancellation), super low-latency, over 100 hours playback time, LCD display and more. 

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Sugar factories in Kenya have for a long time struggled to revive, with mismanagement and lack of funds being pointed out as the main hurdle.

Kakamega Governor Wycliffe Oparanya has opened up on why these factories have been struggling all along.

The county chief who spoke spoke on Thursday at Bukura Agricultural Training Collage while meeting sugarcane farmers said efforts to revive the factories are hindered by cartels with selfish interests.

“They want to ensure the factories don’t revive. They want the industry dead so that they can continue smuggling cheap imports into the country,” he said.

He added that the cartels have been using their illegally acquired money to ensure revival efforts don’t succeed.

He revealed that these cartels are working with elected leaders to further their selfish interests at the expense of the industry and farmers.

Oparanya accused some local leaders of working with cartels to kill the local sugar sector.

He said that politics have contributed to the collapse of Mumias Sugar Factory and the government currently has no say in the management of the company after it was put under receivership.

He has urged members of the public to avoid electing leaders who have selfish interests.

Oparanya served as a co-chairman to a task force created by Uhuru Kenyatta to investigate what was ailing the sector and suggest solutions.

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Lloyd’s of London reported pre-tax profit of £1.4 billion (US$1.9 billion) for the first half of 2021 compared to a £400 million (US$550.8 million) loss during H1 2020.

The market’s profit was driven by a “substantially improved” underwriting result of £1 billion ($1.4 billion), compared to an underwriting loss of £1.3 billion ($1.8 billion) in H1 2020.

Lloyd’s combined ratio of 92.2% was described as a “solid improvement” over H1 2020 when it reported a combined ratio of 110.4%. (A combined ratio below 100% indicates an underwriting profit).

The market has paid €2.2 billion ($3.04 billion) in COVID-19 claims, which represents 80% of the notified validated gross claims, according to Burkhard Keese, Lloyd’s CFO, during a media briefing to discuss the results. “The majority of the losses are first party property and event cancellation.”

During H1, Lloyd’s paid £9.4 billion ($12.9 billion) for overall claims.

Gross written premiums increased to £20.5 billion, (US$28.2 billion), compared to £20.0 billion ($27.5 billion) in H1 2020.

The growth in GWP was attributed to an increase in premium rates, high customer retention and new growth for the first time in four years.

During H1, premium rates increased by 9.9%, continuing the trend of 15 consecutive quarters of positive rate movement.

Improvements to the combined ratio were driven by notable reductions to both the attritional loss ratio and the expense ratio, said Lloyd’s.

An attritional loss ratio of 50.5% (H1 2020: 52.6%), is a 2.1 percentage point reduction from the ratio reported for the first six months of 2020.

The expense ratio of 35.8% (H1 2020: 37.7%) is a 1.9 percentage point improvement, and 3.7 percentage points improvement since 2017, said Lloyd’s, noting that the reduction in operating expenses remains a focus of its digital transformation program.

Lloyd’s said it maintains strong capital and solvency positions, with net resources increasing by £2.6 billion ($3.6 billion) to £36.5 billion ($50.3 billion), with central solvency and market solvency ratios of 218% and 170%, respectively. (Full-year 2020: 209% and 147%).

“Lloyd’s has successfully repositioned the market for sustainable, profitable growth as evidenced in this strong set of financial results,” said John Neal, Lloyd’s CEO, in a statement.

“I am encouraged to see that market performance has improved as a result of our ongoing remediation efforts. This, as well as our exceptionally strong balance sheet, brings Lloyd’s performance in line with our global peer group,” he added.

“Alongside performance, we are making great strides on all our strategic priorities which focus on improving the culture in the market, the Future at Lloyd’s digital transformation, and sustainability, climate and inclusion which underpin our purpose,” he said.

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Although there are many factors that may affect coverage for flood claims under the Standard Flood Insurance Policy (“SFIP”) forms, coverage issues typically fall into two categories: 1) is the property for which a claim is being made considered “covered property” under the policy; and 2) has there been “direct physical loss by or from flood.

Determining whether property is considered “covered property” under the SFIP is a matter of verifying the list of covered property in Section III of the SFIP.

While Section III sets forth the list of covered property, policyholders should be aware that there are some specific provisions which function to exclude or limit coverage based on the property’s location, age, and even design.

The second category, determining whether there has been “direct physical loss by or from flood,” carries the most potential for policy interpretation disputes.

The SFIP defines “direct physical loss by or from flood” as being “[l]oss or damage to insured property, directly caused by a flood.”

Generally, definitions which use or restate the phrases that they define are not particularly helpful—and this SFIP definition is no exception.

The SFIP further explains, however, that in order for there to be “direct physical loss by or from flood,” “[t]here must be evidence of physical changes to the property.”

The fact that the SFIP stops short of defining “physical changes” should not scare policyholders. Rather, the open-ended definition allows policyholders to make the argument in favor of coverage using other National Flood Insurance Program (“NFIP”) resources such as the NFIP Claims Manual.3

The NFIP Claims Manual is designed to “improve clarity of claims guidance” for the benefit of policyholders.

In fact, FEMA intends for the NFIP Claims Manual to “assist NFIP insurers, adjusters, vendors, and policyholders apply applicable statutory and regulatory requirements, as well as the terms and conditions of the Standard Flood Insurance Policy.”

 So, does the most recent publication of the NFIP Claims Manual clarify what is considered “evidence of physical changes?”

The answer is…not entirely. The May 2020 NFIP Claims Manual does, however, include a variety of factors that adjusters must generally consider in determining coverage for flood claims.

Two factors are particularly helpful in assisting adjusters and policyholders apply the SFIP “direct physical loss by or from flood” language.

First, the NFIP Claims Manual acknowledges that certain materials are not salvageable once they have come in contact with floodwaters. For instance, the NFIP Claims Manual classifies certain types of perimeter wall sheathing based on the amount of damage presumed once the sheathing has come into contact with floodwaters.

 Specifically, the NFIP Claims Manual indicates that Class 1 or 2 Sheathing is “damaged directly by contact with floodwaters” and thus “is not salvageable.”

Although this guidance is for specific types of wall sheathing, a more general application of the principle—focusing on the type of material that was damaged—provides policyholders and adjusters with the clarity that the NFIP Claims Manual is designed to achieve.

Second, the NFIP Claims Manual recognizes the effect that floodwater contact has on the useful lifespan of certain items.

The NFIP Claims Manual provides adjusters with guidance on calculating depreciation and instructs them to remember that “[b]uilding materials and personal property have a certain useful life or life expectancy.”

 Notably, this instruction falls within Section 5 of the Claims Manual, which is titled “Claims Adjustment.” Section 5 states that an adjuster “must understand what factors may be involved with the claim that may or may not affect the covered scope of loss and the dollar amount to repair or replace an item . . . .”

A proper adjustment of a flood claim requires an adjuster to assess the “useful life” or “life expectancy” of an item not just for purposes of calculating “the dollar amount to repair or replace an item,” but also as a factor which affects “the covered scope of loss.”

If you are a policyholder uncertain as to whether your claim under such a policy was wrongfully denied, reach out to an attorney at Merlin Law Group to take a look.

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AXIS Insurance, the specialty insurance business segment of AXIS Capital Holdings Limited (“AXIS Capital”) (NYSE:AXS), has announced three appointments within its US Renewables team, effective immediately.

Becky Nace-Grover joins AXIS as a Senior Underwriter, Kamran Hameed joins as a Cross-Class Underwriter, and German Torres joins as an Underwriter.

Their responsibilities will include strengthening new and existing broker and partner relationships, as well as developing new business opportunities to continue delivering high-level customer service.

“Given the continued growth of wind, solar and battery energy storage projects in the United States, we are expanding the size of our underwriting team to meet the needs of our insureds and broker partners alike. With their combined industry knowledge and expertise, Becky, Kamran and German will play a vital role in helping us meet the demands of the growing renewable energy market. I am delighted to welcome them to the team,” said Sam Walsh, Head of US Renewable Energy.

Ms. Nace-Grover was previously President of Niche Underwriting at ProSight Specialty Insurance where she oversaw various specialty portfolios, including the Solar Contractor program.

Prior to that, she spent six years at GCube Insurance Services as an Underwriter focusing on Wind and Solar clients. She will be based in New York and report to Mr. Walsh.

Mr. Hameed was most recently a Senior Underwriter at Alta Risk LLC, where he worked with an array of renewable energy contractors.

Prior to that, he was an Underwriter at AIG for six years. In his new role, Mr. Hameed will be based in Kansas City and report to Mr. Walsh.

Mr. Torres is transferring internally from the AXIS Property and Energy team, where he has underwritten property, political risk and renewable energy business based in Latin America.

Prior to joining AXIS in 2019, Mr. Torres was a Property Underwriter at Hannover Re for five years. He is based in San Francisco and also reports to Mr. Walsh.

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