Thursday, February 9, 2023 / PEOPLE DAILY BUSINESS HUB 15

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PARTNERSHIP: Real Estate
Investment Trust (Reit) firm Acorn
has partnered with Absa Bank Ke-
nya in a Sh6.7 billion finance deal
to develop 12,000 housing units for
the increasing number of university
students.
Acorn Holding CEO Edward Ki-
rathe said the new units will cater
for public and private universities
within Nairobi and its environment,
while his counterpart at Absa Kenya
Yusuf Omari reckoned the facility
will go a long way in reducing the
200,000 units deficit for students in
the country.
“The deal we are announcing
today brings 12,000 student beds
to three public universities—Jomo
Kenyatta, Kenyatta, University of
Nairobi—and quite a number of
private universities and colleges,”
said Kirathe.
The deal, when complete, will
increase Acorn’s total student bed
portfolio to 21,000.
Housing crisis
He said they are working together
with Absa Kenya on a long term
finance deal allowing for the scaling
up on the current units across the
country, in order to prevent a stu-
dent accommodation and generally
housing crisis Kenya is staring at.
“In the next 10 years, young Ke-
nyans will be turning 18 years old
every year. When they turn 18 they
go to college, after that they start
working so if we are not thinking
about how we are going to meet
their needs, we are going to have a
housing crisis,” added Kirathe.
Omari said the facility will con-
tribute both social and environ-
mental outcomes, as the properties
to be developed will be green build
certified, with 70 per cent of raw
materials procured locally.
Cabinet Secretary for Lands,
Housing, Public Works and Urban
Development Zacharia Njeru said
the government was working on
policy incentives to support similar
ventures to support Kenya’s hous-
ing deficit, currently estimated at
2 million units annually. “Part of
these measures include creating a
supportive environment for private
sector participation and making it
easier to access financing,” Njeru
said who unveiled the project.
Banking strategy
Omari said the deal highlighted
Absa’s structuring, project manage-
ment and collaborative capabilities
and serves as a catalyst to Absa
corporate banking strategy to con-
tinue growing its operations in key
regions in Africa.
– Noel Wandera


Equity Group Associate Director
International Banking and Payments
Robert Kiboti (left) and Equity Bank
Kenya MD Gerald Warui discuss the
introduction of new services.
Equity integrates
Western Union on
its banking suites
TRANSFERS: Equity Bank has in-
tegrated Western Union services on its
Equity Mobile App and Equity Online
banking suites as part of its efforts to
enhance its digital banking offering.
This partnership now allows cus-
tomers to conveniently send and
receive international money transfers,
through Western Union, straight from
their devices.
Equity Bank Kenya Managing Direc-
tor, Gerald Warui said the bank is de-
termined to continue leveraging part-
nerships and technology to improve
consumer experiences at all our cus-
tomer touchpoints. “This integration
with Western Union is aligned to our
goal of making banking a lifestyle, giv-
ing customers convenience, freedom
of choice and control as they carry out
their transactions,” he added.
Digital strategy
The bank’s aggressive digital
strategy has also seen it enhance
digital banking, focusing on mobile
technologies, internet, and artificial
intelligence to drive safety and online
channel experience.
Mohamed Touhami El Ouazzani,
Regional Vice President of Africa at
Western Union said the company con-
nects people by enabling them to send
and receive money through one of the
world’s most expansive, flexible, and
versatile financial networks.
“We are excited to expand our ser-
vices with Equity, so that customers can
move money conveniently, reliably and
at speed - providing them with that es-
sential link across economies and geog-
raphies, to their loved ones,” he added.
By offering Western Union money
transfer services, Equity further extends
its digital service offering enabling mil-
lions of customers to send and receive
cross-border payments.
– PD Reporter
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The windfall comes at a
time the growers have
lauded ongoing reforms
and want more of such
by Lewis Njoka
@PeopleDailyKe
Kenya Tea Development Agency (KTDA)
has dispatched money to banks to small-
holder tea farmers for the green leaf they
delivered last month. The agency said
farmers should be able to access the mon-
ey from today.
Farmers are to receive Sh2.47 billion be-
ing payment for 120 million kilogrammes
of green leaf delivered to KTDA-managed
factories. The payment which was slightly
delayed by a system hitch which has since
been rectified follows Sh5.5 billion pay-
ment made last month for the mini-bonus
and December 2022 green leaf deliveries.
The financial boost comes at a time
the farmers have lauded the ongoing tea
reforms and called on government to fast-
track the enactment more changes to re-
vive the once lucrative sub-sector.
Farmers from Kiambu, Murang’a, Keri-
cho and Kisii counties said the reforms
have improved their earnings, increased
transparency in the management of tea
affairs and given previously marginalized
groups a voice. This stamp of approval
comes barely a month after President Wil-
liam Ruto tasked his deputy, Rigathi Ga-
chagua, with overseeing reforms in the tea,
coffee and milk sub-sectors.
Easier for women
Betty Chelang’at, a tea farmer from
Rwandit in Kericho County said the re-
forms have now made it easier for women
to participate in the management of KTDA
tea factories. Her factory, Momul Tea fac-
tory, now has two women directors, a first
in its history.
“Before reforms it was almost impossi-
ble for a woman to become a tea factory di-
rector. We now have two women directors;
Gladys Cherono and Betcy Koskei,” she
said. Her view is shared by Francis Ngugi,
a tea farmer from Kagwe, Kiambu County
who observed that the reforms have em-
powered ordinary farmers by giving them
a chance to lead their tea factories.
“They removed voting per shares, now
we are voting one-man, one-vote. That has
Small-scale tea farmers from Kiambu, Murang’a, Kericho and Kisii counties say the reforms have improved
their earnings. PD/FILE
made me very happy because an ordinary
man like me can now vie and get elected.
Previously I could not,” he said.
According to the farmers, reforms have
increased transparency at the Mombasa
tea auction as well as in the management
of KTDA tea factories.
“Previously, you were considered both-
ersome if you tried asking question about
tea prices. These days you can easily talk
to either managers or directors about such
matters,” said Dominic Marita, a farmer
from Ogembo, Kisii County.
Prior to the enactment of Tea Act (2020),
a farmer’s voting strength depended on the
number of shares one held at the tea facto-
ry, meaning that a few large farmers could
determine who became a factory director
with little or no input from the rest.
With brokers now bidding via an online
platform that is accessible to all stake-
holder, it is now easier for the farmers to
monitor trading activities at the Mombasa
auction. The farmers said they were happy
that the percentage earnings for brokers at
the auction have been reduced to 0.7 per
cent of total sales down from the previous
2.25 per cent. “You can now know in real
time who has bought your tea and at what
price,” said Samuel Nguro, a tea farmer
from Kiru, Murang’a County.
Reforms in the tea sub-sector have re-
sulted in improved earnings, according
to the farmers. Ogembo Tea Factory, for
instance, has seen the latest monthly pay-
ment jump from Sh17 to Sh20 per kilo of
green leaf while that of Momul Tea Fac-
tory jumped from Sh18 to Sh20. Similar
improvements were reported in Kiambu
and Murang’a where Kagwe and Kiru tea
factories paid out Sh21 per kilo of green leaf
in their latest monthly payout.
Improved earnings
A tea factory manager who spoke on
condition of anonymity attributed the Z ) \ ` " a^ m "d
improved earnings to the introduction
of a minimum reserve price at the auc-
tion where each factory is not allowed to
sell made tea below a specified minimum
price. “The biggest gain that we’ve had YFGPSF

from the current reforms is minimum
price. That guarantees that the tea we sell is SFGPSNT
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able to meet production cost and generate
some income. Previously, any time there kBT
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was an upsurge in crop production, prices
would dip,” he said.
Additionally, the reforms have seen tea
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factories pay farmers in a timely manner
with factories issuing payments not later
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than the 5th of every month. “Previously we
used to receive our payment around 28th
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or 29th of the following month. This made
it difficult to even pay labourers,” said
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Chege Gichimu, a tea farmer from Kagwe
in Kiambu county.
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