Kenya Roundp: Environmental sustainability, fuel import, Kenya-UK partnership

Digital currency taxes

In the 2023-24 financial year, Kenya has successfully collected $78 million in digital currency taxes from 384 asset traders, marking a significant achievement that surpasses initial projections, Coin Geek reports. The Kenya Revenue Authority (KRA) has set an ambitious target of $466.3 million for the forthcoming year as it seeks to leverage the burgeoning digital asset sector characterised by high adoption rates and widespread peer-to-peer trading. Nonetheless, the evolution of taxation faces hurdles, chiefly due to the absence of a robust regulatory framework and the implementation of a controversial 3% digital asset tax. In response, the Blockchain Association of Kenya is advocating for more tailored tax structures and clearer regulations to facilitate smoother operational and compliance processes for traders.

Agricultural advancement

A Chinese-funded bamboo project in western Kenya is revolutionising agricultural practices for smallholder farmers affected by flooding along the Nzoia River. Retired public works official Francis Mayobo, who previously struggled with significant crop losses due to frequent floods, has reaped the benefits of bamboo farming following thorough training provided by the initiative. According to China Daily, this project not only focuses on flood protection but also aims at soil rejuvenation and generating income through bamboo cultivation. With support from the Chinese Academy of Sciences and implementation by the United Nations Environment Programme, the initiative has empowered over 200 farmers with training and resources necessary for sustainable bamboo farming. It specifically aims to revive the degraded Nzoia River basin, improve food security, and create economic opportunities for women, particularly in traditional weaving and selling bamboo products. Researcher Dennis Otieno Ochuodho praises the project as a nature-based solution addressing climate-induced flooding while promoting biodiversity and carbon sequestration.

Environmental sustainability

Kenya Airways has embarked on an innovative project aimed at converting plastic waste into diesel fuel, a strategic move designed to reduce fuel costs while simultaneously addressing pollution concerns. This initiative underscores the airline's commitment to sustainability and environmental stewardship, VOA News reports.

Kenya-UK AI partnership

In a significant step for technological advancement, Kenya has forged a partnership with the UK to launch the UK-Kenya AI Challenge Fund, steered by the African Centre for Technology Studies (ACTS). This initiative aspires to create a responsible artificial intelligence ecosystem by endorsing projects that align with Kenya's national AI strategy across various sectors, including healthcare, agriculture, and education. CIO Africa reports that the fund prioritises ethical development, safety, and inclusion, with the goal of ensuring widespread benefits from AI advancements for all Kenyans. As articulated by Ali Hussein Kassim of KICTANet, it further aims to bolster partnerships and enhance institutional capacity related to AI governance within the country, positioning Kenya as a key player in AI research and innovation across the African continent.

Fuel import

Despite a recent decline in global oil prices, the Kenyan government has extended its fuel import deal with Gulf oil suppliers, leading to sustained high fuel prices for consumers. Originally expected to conclude in 2023, this extension is predicated on pre-agreed fuel volumes rather than a specified timeframe, resulting in a disconnect between international price fluctuations and local fuel pricing, The Eastleigh Voice reports. Consequently, Kenyans are experiencing higher costs per litre compared to prevailing open market rates, with a recent audit revealing a premium of Sh7.21 per litre under this government-supported agreement, in contrast to Sh4.51 under the Open Tender System. The International Monetary Fund has expressed concerns regarding potential financial liabilities for Kenya in light of Uganda's recent exit from the arrangement.