MONEYINAFRICA

Kenya Airways has more morning slots at the country’s airports for domestic flights than its rivals, giving it an unfair advantage in winning customers and setting ticket prices.

The Competition Authority of Kenya (CAK) says the national carrier and its wholly-owned subsidiary Jambojet are best placed to serve customers who mostly prefer morning flights for business or leisure travel.

“Landing and take-off time-slots have an effect on the average daily prices in the domestic market. Therefore, equitable allocation of time slots is essential for price competition,” the regulator said in a report under the auspices of the African Competition Forum (ACF).

“Jambojet and Kenya Airways have more morning slots in comparison to other players in the domestic market, which raises competition concerns.”

The regulator did not, however, say how many morning slots Kenya Airways and Jambojet have. The two airlines have a combined 36 percent market share of domestic flights.

Morning flights are the most popular among travellers and are sometimes priced higher by hundreds of shillings compared to other flights.

Most of the domestic flights originate or terminate at the Jomo Kenyatta International Airport (JKIA) where Jambojet and KQ, as the national carrier is known by its international code, operate from.

“In the domestic air commercial passenger market, the JKIA has the largest share with 32 percent domestic departures, 37 percent domestic arrivals, 94 percent international arrivals and 89 percent international departures,” the report says.

KQ and Jambojet’s rivals include Fly540, AirKenya, Slverstone Air and Skyward Express.

The cross-country airlines study by ACF found that KQ charges the highest fares on average for both domestic and international flights compared to other carriers operating in Africa.

KQ had higher fares on most routes where it has competition, though there are a few instances where its rivals charge more.“Kenya Airways has the highest average passenger price per kilometre (APPK) for all its domestic, regional and international routes,” the report by the ACF says.“In addition, the routes for the Tanzania markets from Nairobi have higher APPK than international routes, which are longer distances.”Kenya Airways’ average price per kilometre on the Nairobi-Johannesburg route, for instance, was Sh23.8 compared to Sh22 charged by South African Airways (SAA).The report found that many factors influence the setting of ticket prices including competition, government support and bilateral agreements.

Full Article at www.businessdailyafrica.com

NAIROBI, Kenya October 25 – Equity Bank has clinched Africa’s best bank for Small and Medium Enterprises (SMEs) title during the 2021 Euromoney awards.

East African banks were commended for leading the way in SME financing in Africa with Equity Bank hailed for its continued support of its clients with lending rising by 30 percent to USD 4.8 billion in 2020.

“Lately, Equity Bank’s SME lending has focused on unsecured working capital financing, with a specific focus on supply chain financing in agriculture, manufacturing, fast-moving consumer foods, and healthcare,” a statement issued read in part.

Euromoney said that Equity has “continued to access credit-risk guarantees as well as senior and subordinated funding from the International Finance Corporation (IFC) and development finance institutions in Europe – arrangements specifically designed for SMEs, including female entrepreneurs and agricultural value chains.”

Equity Group Managing Director and CEO, Dr. James Mwangi, said that the award reinforces and cements the Bank’s vision, of championing the socio-economic prosperity of the people of Africa.

“With support from various partners, Equity Group has strongly positioned itself to support SMEs (Small and Medium Enterprises) to keep their lights on during the prevailing COVID-19 pandemic which slowed down the economy and negatively impacted the cashflows of enterprises.

He said that the bank demonstrated its commitment to walking the journey with its customers, and its empathy with their socio-economic situation necessitated by the pandemic.

“Equity has fortified its product offerings by providing them with customized, flexible, and integrated banking solutions, for both business owners and employees,” the bank said.

In 2020, Equity received 3 Euromoney awards in the Best Bank in Africa, Best Digital Bank, and Excellence in Leadership award categories.

Full Article at www.capitalfm.co.ke

African aviation is going through a period of notable transition. With this shift, analysts have been looking at the market’s pricing. As a result, a report has shown that in Africa, Kenya Airways charges the most for its tickets. The Competition Authority of Kenya (CAK) is one of the authorities that took part in the study. Photo: Getty Images. The top of the crop

The African Competition Forum (ACF) has shared a report that studied the aviation industries of 24 countries in Africa. The study looked at which airlines charged the highest average fares on domestic and international operations.

The conclusion was that Kenya Airways charged the highest on most routes where it has competition. In the vast majority of cases, it charged higher than the likes of South African Airways, Ethiopian Airways, and Air France.

Kenya Airways held the highest average passenger price per kilometer (APPK) for all its national, regional, and international routes. Moreover, Tanzanian routes had higher APPK than services routes, which traveled farther. The study looked at data between the months of November 2019 and March 2020. Photo: Getty Images. Looking at the figures

Taking a route as an example, the average price per kilometer on the Nairobi-Johannesburg route was Sh23.8. Meanwhile, South African Airways (SAA) charged Sh22. (1 Kenyan Shilling is 0.0090 US Dollar)

“Prices charged by two operators on this route are visibly different for both economy and business class categories. Kenya Airways prices are 21 percent higher than SAA prices for economy class tickets,” ACF’s report highlights, as shared by Business Daily .

“The Nairobi-Paris route is served by Air France and Kenya Airways, their prices have a difference of Sh5,000, Kenya Airways price being more. KQ charged Sh15.6 per kilometer on the Nairobi-Addis Ababa route, higher than Ethiopian Airlines’ Sh13.2.” South African Airways charged higher than Kenya Airways when it came to business class, with the flag carrier of South Arica charging at around 39% higher than its competitor. Photo: Getty Images Get your boarding pass to the flight of the year. The Future Flying Forum is taking off soon! All eyes on Africa

Kenya Airways has been showing its intention of expanding its presence in fellow African nations in recent months. For instance, Congo Airways has begun wet leasing two Embraer E190 aircraft. Kenya Airways has also been in talks with South African Airways about forming a pan-African carrier .

The likes of […]

Full Article at simpleflying.com

A KQ Dreamliner aircraft. FILE PHOTO | NMG Kenya signed the deal with the US on February 5, 2020 proposing to revise an earlier agreement inked in Washington DC on June 8, 2008.

The pact will also allow national airlines such as Kenya Airways to access US routes and the American carriers to access the Kenyan market.

FedEx is seeking to establish an operation base at the Jomo Kenyatta International Airport.

Parliament has backed a Cabinet decision to amend the air services agreement between Kenya and America that will see Kenya Airways expand its route network beyond New York.

Kenya Airways is currently operating scheduled passenger air services between Nairobi and New York.

Kenya signed the deal with the US on February 5, 2020 proposing to revise an earlier agreement inked in Washington DC on June 8, 2008.

The pact will also allow national airlines such as Kenya Airways to access US routes and the American carriers to access the Kenyan market.

Transport Cabinet Secretary James Macharia told MPs that no airline from the US is flying into Kenya.

He said ratification of the agreement will allow the Federal Express Corporation (FedEx) of the US which had expressed interest in starting cargo operations and establish a base in Kenya.

FedEx is seeking to establish an operation base at the Jomo Kenyatta International Airport.

“It is in the interest of the country to ratify the agreement to allow the airlines to expand their route network and engage in commercial arrangements as well as create job opportunities,” Mr Macharia said in a memo.Transport ministry said ratification of the agreement will enhance trade and commerce, tourism, market access and connectivity, investment interests and mutual cooperation between the two States.The National Assembly’s Transport committee, in a report to the House said commencement of FedEx cargo operations and a base in Kenya would have a multiplier effect on the Kenyan economy as it will open up immense opportunities for Kenyans.The team said the agreement will open expanded operations and markets for Kenya and US air operators, facilitate the movement of goods, passengers and mail, offering more flexibility in meeting demands and customer needs.The committee resolved to recommend to the National Assembly to approve the ratification of the treaty as it is in Kenya’s best interest.

Full Article at www.thecitizen.co.tz

Internal

Allianz SE

Group Communications and Reputation

Media Release

Allianz completes acquisition of majority stake in Jubilee Insurance Company of Uganda Limited Transaction is part of agreement signed with Jubilee Holdings Limited (JHL) in September 2020

Kenya transaction also completed. Tanzania, Burundi and Mauritius to follow, subject to regulatory approvals.

Kampala, Uganda, October 25, 2021

On Friday October 22, 2021, Allianz, one of the world’s leading insurers and asset managers, became the majority shareholder in Jubilee Insurance Company of Uganda Limited after completing the transaction to acquire a 66% stake in the company from Jubilee Holdings Limited (JHL), East Africa’s largest insurance group . The stake acquired by Allianz represents 29,700,000 ordinary shares of Jubilee Insurance Company of Uganda. JHL will retain a 34% stake, or 15,300,000 ordinary shares, in the company.

The General Business of Jubilee Insurance Company of Uganda Limited will change its name in due course to Jubilee Allianz General Insurance Company Limited , subject to approvals.

This is the second acquisition to be completed as part of an agreement announced on September 29, 2020 wherein Allianz agreed to acquire the majority shareholding in the short- term general (property and casualty) insurance business operations of JHL in five countries in Africa, namely Kenya, Uganda, Tanzania, Burundi and Mauritius. The first acquisition, in Kenya, was completed on May 4, 2021. The closing of the transactions in Tanzania, Burundi and Mauritius will follow shortly, subject to regulatory approvals.

Coenraad Vrolijk, the Regional CEO of Allianz Africa, says: "We are really proud of this acquisition and we are looking forward to working together with Jubilee to build out the best general insurance company in Uganda and in East Africa."The partnership, which combines Allianz’s 130 years plus of experience in insurance and asset management with Jubilee’s regional knowledge and network, aims to bring world -class insurance to the East African markets. Allianz SE Chairman of the Superv isory Board: Michael Diekmann. Board of Management: Oliv er Koeniginstr. 28 Bäte, Chairman; Sergio Balbinot, Andreas Wimmer, Dr. Barbara Karuth-Zelle, 80802 Munich; Germany Dr. Klaus-Peter Röhler, Iv an de la Sota, Giulio Terzariol, Dr. Günther Thallinger, Phone: +49 89 3800 18475 Christopher Townsend, Renate Wagner (Release / Stand 10.2021). For VAT-Purposes: Fax: +49 89 3800 2114 VAT-Registration Number: DE 129 274 114; Insurance serv ices are exempt f rom VAT. www.allianz.com/news Allianz SE, Munich, Comm.Reg.: Munich HRB 164232 InternalNizar Juma, Chairman of JHL, says: "The successful completion of the […]

Full Article at www.marketscreener.com

A KQ Dreamliner aircraft. FILE PHOTO | NMG Kenya Airways has the most expensive tickets among airlines operating in Africa, charging more on average than carriers such as Ethiopian Airlines, South African Airways and Air France.

The finding shows the national carrier risks losing market share to cheaper rivals like Ethiopian Airlines and new entrants, including Uganda Airlines.

KQ had higher fares on most routes where it has competition, though there are a few instances where its rivals charge more.

Kenya Airways has the most expensive tickets among airlines operating in Africa, charging more on average than carriers such as Ethiopian Airlines, South African Airways and Air France.

A new study by competition authorities representing a total of 24 African countries found that KQ, as the airline is known by its international code, charges the highest average fares on domestic and international flights.

The finding shows the national carrier risks losing market share to cheaper rivals like Ethiopian Airlines and new entrants, including Uganda Airlines.

KQ had higher fares on most routes where it has competition, though there are a few instances where its rivals charge more.

“Kenya Airways has the highest average passenger price per kilometre (APPK) for all its domestic, regional and international routes,” the report by the African Competition Forum (ACF) says.

“In addition, the routes for the Tanzania markets from Nairobi have higher APPK than international routes, which are longer distances.”

Kenya Airways’ average price per kilometre on the Nairobi-Johannesburg route, for instance, was Ksh23.8 ($0.22) compared to Ksh22 ($0.2) charged by South African Airways (SAA).

“Prices charged by two operators on this route are visibly different for both economy and business class categories. Kenya Airways prices are 21 percent higher than SAA prices for economy class tickets,” the report says.“For business tickets, SAA prices are significantly higher than Kenya Airways prices. Kenya Airways on average charges R14,089 ($963) for a business class ticket, while SAA charges R22,954.93 ($209) for the same class. SAA’s upper-end tickets sell at around 39 percent more than Kenya Airways prices.”The Kenyan carrier charged an average of Ksh9.4 ($0.085) per kilometre on the Nairobi-Paris route compared to Air France’s Ksh8.3 ($0.075).“The Nairobi-Paris route is served by Air France and Kenya Airways, their prices have a difference of Ksh5,000 ($45) Kenya Airways price being more,” the report says.KQ charged Ksh15.6 ($0.14) per kilometre on the Nairobi-Addis Ababa route, higher than Ethiopian Airlines’ Ksh13.2 ($0.12).The Competition Authority of Kenya […]

Full Article at www.theeastafrican.co.ke

Nairobi — Nairobi was named Africa’s Leading business travel destination during the World Travel Awards, Africa and Indian Ocean 2021 trouncing Accra, Cairo, Cape Town, Durban, Johannesburg, Lagos and Pretoria.

Kenyatta International Convention Centre also bagged the ‘Africa’s Leading Meetings & Conference Centre’ title during the awards which are held annually to celebrate top brands and services across the tourism and hospitality sector

Cape Town clinched Africa’s leading city destination award defeating Durban, Johannesburg, Kigali, Luxor, Marrakech, Nairobi and Sharm El Sheikh.

In the aviation sector, Kenya Airways was named as Africa’s Leading Airline 2021 and Africa’s Leading Airline in the Business Class category while Cape Town was named Africa’ leading airport.

Ethiopia Airlines won Africa’s leading airline brand and Africa’s leading Airline- economy class categories.

Four Points by Sheraton was named Africa’s leading airport hotel.

The brands are selected by qualified executives working within the travel and tourism industry and the consumer buyer.

"Our winners represent the very best of travel and hospitality in Africa and the Indian Ocean and my congratulations to each of them. They are all playing starring roles in spearheading the travel and tourism recovery," said Graham Cooke, founder, World Travel Awards.

Fairmont Mount Kenya Safari Club bagged Africa’s Leading Hotel award while Hemingways Watamu was named Kenya’s Leading Beach Resort.

The Norfolk was named as Africa’s Leading City Hotel 2021 with Olare Mara winning the award for Africa’s Leading Luxury Tented Safari Camp.

The award for Africa’s Leading Sports Resort was won by Ocean Sports Resort located in Watamu.Kenya Tourism board was named Africa’s leading board for the eighth time in ten years.KTB Chief Executive Officer (CEO) Betty Radier, while commenting on the award, said it would help the board market the country better and bring forth more revenue for the country.

Full Article at allafrica.com

The Kenya Mortgage Refinancing Company (KMRC) plans to raise Sh10 billion from investors at the capital markets through a bond by December to finance low-cost housing.

The proceeds from the bond issue will go to banks and saccos for onward lending to homeowners at an annual interest of five percent.

“We are looking at a medium-term note of about Sh10 billion,” said KMRC chief executive Johnstone Oltetia told the Business Daily.

“We will issue tranches over time to raise the money that we need.”

The mortgage refinancing firm, which got a permit to formally start operations in September 2020 said it is awaiting approvals from the Capital Markets Authority to roll out the bond plan.

“We’ve not got approvals from the regulator. We will provide more information as soon as we receive approvals,” he said.

The KMRC has raised nearly Sh40 billion including Sh2.2 billion in equity capital, Sh25 billion committed by the World Bank and Sh10 billion from African Development Bank.

The State agency offers funds to banks and saccos for onward lending at an annual interest of five percent.

The recipient lenders are, in turn, expected to lend out the cash at a single-digit interest rate — lower than the average market rate of 12.06 percent as of May 2021. It offers loans to workers earning less than Sh150,000 and whom banks had locked out from the mortgage market.

Prospective home buyers, who qualify for home loans under the KMRC framework, access up to Sh4 million for property in Nairobi metropolitan area and Sh3 million elsewhere, with a repayment period of up to 20 years.

KCB Group — the largest mortgage financier by market size — received more than three-quarters of the Sh2.748 billion issued in the year ended June 2021, which covered about 1,400 mortgages that met conditions on size, interest and tenure under the KMRC disbursement criteria.Other beneficiaries were HF Group (Sh515 million), Stima Sacco (Sh69million) and Tower Sacco (Sh30 million).The average size for the 1,400 home loans refinanced by KMRC last fiscal year is Sh2.6 million — more than three times smaller than the banking industry’s average mortgage size of Sh8.6 million last year.Mortgage firms have shied away from writing housing loans mainly due to a lack of long-term deposits in the industry to match them.

Full Article at www.businessdailyafrica.com

Kenya Airways has the most expensive tickets among airlines operating in Africa, charging more on average than carriers such as Ethiopian Airlines, South African Airways and Air France.

A new study by competition authorities representing a total of 24 African countries found that KQ, as the airline is known by its international code, charges the highest average fares on domestic and international flights.

The finding shows the national carrier risks losing market share to cheaper rivals like Ethiopian Airlines and new entrants, including Uganda Airlines.

KQ had higher fares on most routes where it has competition, though there are a few instances where its rivals charge more.

“Kenya Airways has the highest average passenger price per kilometre (APPK) for all its domestic, regional and international routes,” the report by the African Competition Forum (ACF) says.

“In addition, the routes for the Tanzania markets from Nairobi have higher APPK than international routes, which are longer distances.”

Kenya Airways’ average price per kilometre on the Nairobi-Johannesburg route, for instance, was Sh23.8 compared to Sh22 charged by South African Airways (SAA).

“Prices charged by two operators on this route are visibly different for both economy and business class categories. Kenya Airways prices are 21 percent higher than SAA prices for economy class tickets,” the report says.

“For business tickets, SAA prices are significantly higher than Kenya Airways prices. Kenya Airways on average charges R14,089 (Sh106,000) for a business class ticket, while SAA charges R22,954.93 (Sh172,796) for the same class. SAA’s upper-end tickets sell at around 39 percent more than Kenya Airways prices.”

The Kenyan carrier charged an average of Sh9.4 per kilometre on the Nairobi-Paris route compared to Air France’s Sh8.3.

“The Nairobi-Paris route is served by Air France and Kenya Airways, their prices have a difference of Sh5,000, Kenya Airways price being more,” the report says. KQ charged Sh15.6 per kilometre on the Nairobi-Addis Ababa route, higher than Ethiopian Airlines’ Sh13.2.The Competition Authority of Kenya (CAK) is among the regulators that participated in the cross-country study of airlines.The ticket pricing data was gathered in October 2019 from airline websites for 12 dates between November 2019 and March 2020.To ensure consistency of the data, the prices for each route was collected from the websites on the same day for all the airlines operating on the selected routes.The study noted that some airlines have since exited a number of the routes due to Covid-19 pandemic or other reasons. The regulators say the study […]

Full Article at www.businessdailyafrica.com

Even before the first Covid-19 case was confirmed in South Africa, SAA was in as bad shape as it gets. (Delwyn Verasamy/M&G) Union members picketed recently resuscitated national airline SAA on Tuesday, complaining about working conditions less than three weeks after the carrier resumed flights following bankruptcy proceedings.

South African Airways (SAA) emerged from a 17-month business rescue this year with hundreds of jobs slashed and a fleet slimmed from 46 to six planes.

It was grounded for a year-and-a-half and only resumed services at the end of September.

But remaining staff are disillusioned with the company, prompting action from their representatives.

Staff and unionists protested outside the airline’s offices in Johannesburg on Tuesday.

“So many of the old SAA’s problems have been carried over into the new airline,” said a joint statement by the National Union of Metalworkers of South Africa and the South African Cabin Crew Association.

The unions claim workers placed on a “training layoff scheme” were not re-hired, while others have seen their salaries and employment benefits cut.

SAA did not immediately respond to requests for comment.

Once Africa’s second-largest airline after Ethiopian Airlines, SAA had survived for decades on government bailouts and was shedding routes even before the pandemic hit.

It was hit by a crippling strike in November 2019, with workers demanding higher wages and protesting against planned job cuts, and placed under a state-approved business rescue plan the following month.

Two weeks ago SAA signed a cooperation agreement with Kenya Airways for a long-term plan to create a pan-African airline.© Agence France-Presse Subscribe for R500/yearThanks for enjoying the Mail & Guardian , we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them and get a 57% discount in your first year.

Full Article at mg.co.za