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Our guide to the issues likely to impact businesses and the key measures taken by African governments in response to COVID-19.
Kenyans have been in a state of panic since the outbreak of the novel coronavirus. From a projects perspective, contractors have been a particularly worried lot, seeing as the pandemic has affected supply chains and their ability to meet their contractual obligations.
In the wake of the spread of the COVID-19 global pandemic, the real estate and loan markets in Kenya are bound to be affected. On 16 March 2020, H.E. Uhuru Kenyatta, the President of Kenya revealed that three (and now 25) patients had tested positive for the virus culminating in presidential directives towards preventing its spread to the rest of the population
In his Mashujaa Day speech, President Uhuru Kenyatta promised that as part of the Government’s economic stimulus plan, there would be a reduction in the cost of electricity by 30% before the Christmas holiday. The President made reference to the John Ngumi led Taskforce on Review of Power Purchase Agreements that was set up to address concerns about the high cost of electricity, and which recently submitted its recommendations as to how the envisaged reduction of electricity costs could be achieved. The recommendations of the Taskforce include a raft of other reforms, some of which will likely have a ripple effect on investments in other sectors.
Naana Frimpong, a Litigation and Regulatory partner based in Atlanta, has been appointed to the DLA Piper Africa Board effective from 1 September 2021.
Many governments are increasing their borrowing to pay for infrastructure and the recent bipartisan US infrastructure bills worth an eye-watering USD3.5 trillion are a case in point.
The second phase of the COVID-19 vaccination in Kenya is underway and available statistics show that approximately 3.34 Million doses of the vaccine have been administered so far.
The Business Laws (Amendment) (No.2) Act, 2021 received Presidential assent on 30 March 2021 and brought amendments to several statutes into effect, many of which are geared towards improving the ease of doing business in Kenya. One of the affected statutes is the Insolvency Act, 2015 and this article explores the impact of some of the changes on businesses and creditors.