Heavy rainfall that has been pounding various parts of the country is expected to intensify in the next five days, fresh weather forecast indicates.
The Kenya Meteorological Department says rainfall intensity will start increasing throughout the country with more than 30mm expected in Siaya, Kisumu, Homa Bay and Migori counties.
“The rains will also pound areas such as Kisii, Nyamira, Trans Nzoia and Baringo,” said Kenya Meteorological Department director Stella Aura in a statement yesterday.
Ms Aura warned of floods in Budalang’i, Kano, and Murang’a from November.
She noted that Nairobi, the coastal strip, Nyandarua, Nyeri, Laikipia, and Moyale will experience light rains during the same period.
The five-day forecast, however, says that northeastern and northwestern regions, which cover West Pokot, Garissa, Isiolo, Turkana, West Pokot, Mandera, Samburu as well as Isiolo counties will have depressed rainfall.
The regions are also expected to have an average temperatures of 33 degrees Celsius with Marsabit and Wajir having temperatures as high of 38 degrees.
“There is need for contingency plans and strategies to avert conflict that might occur in northwestern and northeastern due to the scramble for limited resources caused by poor rains,” she said.
Landlords stare at massive dip in rentals incomes : The Standard
Joe sells bootleg movies out of a stall on a building along Moi Avenue. Before the coronavirus pandemic hit the country, when Kenyans walked around without caution, he would easily sell about 200 movies, making enough cash to pay rent for the stall.
He could easily take care of his livelihood and even send something back home.
As the reality of Covid-19 settles and subsequent measures such as the government advisory on social distance and a curfew, he is lucky if he can sell 20 movies.
Previously, he used to close shop at 9pm but today, his hours have been disrupted following the curfew. He closes early, at 3pm to get a matatu back home on time.
He says making rent this coming few months will be hard, almost certain that he will default on his April rent. His landlord hasn’t communicated anything despite noting most businesses in the building have shut down.
Joe says the landlord should brace himself for massive defaults. “Honestly I can’t make the rent. This means it will be rolled over and I’ll be working to pay debts,” he said, adding that paying taxes to Nairobi County government will also be a tall order.
While Joe’s landlord appears to bury his head in the sand, delayed rent payment is something that he has to confront in the coming weeks.
It remains a tough period for landlords in the country as coronavirus scare continues to wreak havoc on incomes, hence eroding tenants’ ability to pay rent. So far, more than 60 people have been confirmed to have the virus.
So tough is the going for homeowners that several landlords’ associations in the country estimate that by June, the strain on rental yields will have hit between 60 and 70 per cent for the low-cost rents and between 10-30 per cent for the middle-income earners.
This as the impact of unpaid leaves or the slowdown in business for the self-employed hits home.
Different firms across sectors last month sent employees home, with the lucky ones being on paid leave. But for many who are engaged on a casual basis, this might mean several months of unemployment.
While sectors such as tourism, aviation and horticulture stand out as among the most affected, the impact of Covid-19 cuts across all sectors.
The overall impact will be high default rates on rental payments. This will further hurt property owners, many of them already living on the edge, going by a large number of defaults on loans advanced to property owners as well as the number of houses being put on auction.
Landlords who spoke to Home&Away admitted that they have now resigned to fate as they join the nation in hoping for recovery from the crisis – that a quick reprieve visits the country sooner.
SEE ALSO: Iachini appointed Fiorentina coach
The unique challenge in meeting rental obligations in some areas is cited to be premised in the barmaids and commercial sex workers legion that has been struck hard by bar closures and the national curfew – effectively locking them out of income.
According to Urban Tenants Association of Kenya Secretary General Ephraim Murigo, landlords will have to face reality that “it is not business as usual”. “The going is tough and as everyone is being called upon to belt up, landlords are not exempted,” he noted.
He says the strife on rental yields is premised on the closure of most economic avenues that earn tenants some income. The closure of major businesses and firms, he noted, has driven many workers into temporary poverty.
“It is in light of this that we as an association anticipate that the low-end housing units might suffer as high as 70 per cent rental defaults by May if the situation does not subside, with the mid-level rental segment suffering up to 30 per cent default by the same period,” Murigo preempts.
He says most jua kali sector work stations have been closed, with many low-cadre jobs in industries locked. Small Medium Enterprises (SMEs) have also been starved off workforce and markets.
“When this happens, both national and county gross produce suffers and the prevailing economic environment is that of poverty. At the social front, what Covid-19 scare has induced is panic. All these are serious economic forces that erode both investments and returns,” Murigo said.
He urged all landlords to “exercise patience, humaneness and be willing to make concessions that offer tenants a reprieve”.
Maragua MP Mary Wa Maua urged landlords to give tenants rental rebates.
“I propose that all tenants who can meet their rental obligations to pay up. Those who have genuinely suffered economic setbacks be given the rebates in form of rental reductions or total waivers for the period the country will remain under siege by this global scourge,” she says.
Wa Maua promised to moot a National Crisis Relations Bill-19 that provides legal guidelines on how the economic front should relate with the social front in times of a crisis. She says the proposals should compel all multinationals in the country to channel 100 per cent of their social corporate responsibility budgets to the crisis.
She said the proposed bill could require that all landlords who are subjected to land rate taxes be given a 100 per cent waiver to cushion them on rental strains while basic amenities like water, electricity and internet bills for their buildings be zero-rated.
Senate Majority Deputy Chief Whip Irungu Kang’ata says most Murang’a born landlords have since admitted that the going is tough and will offer a reprieve to their tenants.
“As Murang’a Senator who also is aware of the big share my native investors in major towns real estate enjoy, it is good news that so far, there are many who have since placed notices that they have halved or waived rents for the period running from March to May,” he said.
He urged the State to subsidise the real estate sector so that landlords can reciprocate by also extending rental subsidies to tenants in times of crisis.
Council of Governors Deputy Chair Mwangi Wa Iria told landlords at county levels to be lenient to their tenants.
“We as county governments will be interested parties in how relations between landlords and tenants play out during this difficult period. We will be interested to know what will be happening in all arbitration sittings involving rental defaulters. We must safeguard the vulnerable in such times of distress,” he said.
According to Nairobi Regional Coordinator Wilson Njenga, rental panic has been caused by the confirmation of Covid-19 in Nairobi, increasing panic among households.
Limited economic activities and restricted movements have also seen many urban families flock to villages where economic pressures are less, given low rental and dietary budgets.
“As a result, many families have either abandoned their rental homes and retreated to the countryside to get bigger space necessary in combating this scourge as well as give themselves economic reprieve,” he says.
Rift Valley Regional Coordinator George Natembeya told Home&Away that Kenyans are also contributing to rental flight owing to their tendencies to stigmatise others in a humanitarian crisis.
Both administrators called upon landlords to be sensitive to families facing restricted earning avenues and constrained budgets.
Mr Natembeya urged landlords to extend tenancy arbitration on rent defaulters to eight months instead of the usual three.
Last week, it emerged that more than 120,000 flower farm workers were last month sent home on paid leave owing to lack of market for flowers. The situation could change into a long unpaid leave if the situation remains.
Dozens of hotels have also suspended operations as occupancy levels plunge, leaving their staff idle. Some have indicated that it will be months before they reopen as it will take time to get bookings even after the world has been able to contain Covid-19.
And it is not just the tourist hotels but also the ordinary eateries that cannot sustain operations because of reduced human traffic.
With little travel locally and a total ban on flights to and from Kenya, the aviation industry is also bleeding.
The impact that coronavirus will have on the economy this year comes after 2019 that was also difficult for the economy and numerous companies saw their profit fall.
Additional reporting by Wainaina Wambu and Macharia Kamau
Do not miss out on the latest news. Join the Standard Digital Telegram channel HERE.
Trade unionist calls For 3-month Rent Exemption for Tenants
NAIROBI, Kenya April 2 – Central Organization Trade Union (COTU) Secretary General, Francis Atwoli has urged landlords to exempt Kenyans from paying rent for the next three months as the country battles COVID-19 pandemic which has already scuttled numerous businesses.
Atwoli said the Union will appeal to the Government to ensure rental issues for the low income and lower-middle-income earners are considered for the next three months.
“I would appeal to employers,entrepreneurs and landlords to heed to our call that for the coming three months, let them not ask rents from poor Kenyans who have mostly been sent on unpaid leaves,” he told Citizen Television.
He said this will be the only way for them to show solidarity in the wake of the pandemic which has so far infected 81 people in Kenya and seen more than 1,000 placed under quarantine.
Atwoli’s statement echoes that of the Landlords and Tenants Association of Kenya who Wednesday called for a three-month rent waiver for tenants.
“There should be a waiver for rent for the month of April, May, and June so that the common citizen can actually work on putting food on the table.”
The tenants-lobby said the government should assist landlords who are servicing loans to get a six-month moratorium from commercial banks.
“The government should come up with a compensation package for the landlords. We know very well that most landlords depend on the rents they receive to service their loans. We are asking the government to institute the moratorium so that they can have that ample time to put food on their tables now that they are not going to get that income for the months of April, May, and June,” the association posed in a statement.
In his interview, Atwoli further opposed calls for a total lockdown saying it would affect Kenyans who rely on daily wages.
“I do not fully support a lockdown, with our fragile economy, many people cannot survive within it. But if need be, we can do it for not more than 14 days or seven days and by that time we should be testing people,” he added.
He also wants the Government to support civil societies so that they provide relief food for those who are unable to earn during this period as well as those living in abject poverty in order to avert any death due to hunger.
Is this the right time to invest in stock markets? : The Standard
Dear Dr Pesa,
Is this a good time to invest in stock markets? I mean we are living in tough times with the coronavirus pandemic, many businesses may not be doing very well especially with the lockdowns and quarantine stipulations. But I am still looking to make an investment and I have my eye on the stocks, hoping the prices will go down and rise again after the hurdle. Is this a reasonable plan? Please advice.
Indeed, with the Coronavirus pandemic, businesses may not be doing well especially with the lockdowns and interruption of supply chains. As you may be aware, stocks represent ownership interest in a company, which provides investors with the opportunity to make profits either through dividends or capital appreciation. Investing in the stock markets is risky since the performance of the stock affects the investment of the shareholder. In other words, when the stock’s value decreases, the investment also loses its value.
Kenya’s equities market has been on a downward trend ever since the country confirmed its first case of Coronavirus on March 13, 2020, causing most stock prices to decline. The question on investors’ minds is, is it a good idea to invest in the equities market with the continued price decline? Will they recover after the crisis is over?
The continuous price decline has presented investors buying opportunities, since they can acquire the stocks more cheaply. However, the stocks might take a longer time to recover. Therefore, if you are buying into the stocks, do it for the long term. You have indicated that there are stocks you are looking to invest in. This means that you have a watch list. Watch lists help investors monitor and spot investing opportunities in the stock market.
Before buying a stock, look at its historic price performance. Ask yourself, “Is the price of the stock I am considering buying stable, or has it been declining over time?” It is normal for stock prices to decline; it does not necessarily mean that the company is performing badly. The price decline might be attributable to price corrections like the one we saw for banking stocks earlier in the year, after they rallied following the repeal of interest rate caps, which in turn boosted investor sentiments.
On the other hand, stocks whose prices have continuously been declining while its peers are stable or appreciating are a red flag. If you are interested in the stock, understand why the price has been declining and ask yourself what other investors are seeing that you’re not. Buy a stock whose price you think will improve after the crisis. A common mantra among investors is “buy low, sell high”. You should also look at the returns you stand to gain with the stock once the situation improves.
Although investing in the stock market is risky, it is a good move. Even so, you should not invest your money all at once. It may be more prudent to buy the stock at every price dip because it is difficult to accurately anticipate price declines in the market. Do not try to estimate that in the coming days the prices of the stock will continue to decline. For example, if the price for stock A is trading today at Kshs 33.0 shillings, down from Kshs 36.0 recorded yesterday, buy the stock today with a portion of the money you intend to invest. If prices take a dip again tomorrow or in a few hours, buy more shares. However, only buy shares you have done your due diligence in and whose performance you have confidence in.
In case you wish to make gains through dividends, look at the performance of the company whose stock you are buying as well as the dividend they pay out. Dividends provide investors a stable stream of income as well as capital appreciation. Look for a company with high payout ratio and understand the price to earnings ratio of the stock before the prices started declining. Price to earnings ratios help investors know how much they stand to gain per every share they purchase. Bailing out of a market when the prices take a hit is not sustainable as you will never reach your long term or short term financial goals.
If you are an investor in the stock market, with the prices continuing to decline, you may be tempted to bail on the equities market and sell your shares. Research has shown that during the 2008–2009 financial crisis, those who held onto their shares doubled their investments after the crisis was over. Warren Buffett, one of the most successful investors in the world is known to have profited when stock prices were down.
In conclusion, this is the best time to invest in the stock market, if you are looking to buy for the long term and after considering all the above factors. Understanding the stock you want to buy is the first step into making a good investment decision and having a stock watch list, which will help you track the performance of a stock over time.
Dr Pesa is Ann Wacera, who is part of the investments team at Cytonn Investments.
Are you suspecting that you have coronavirus? Before you rush to the hospital, do this quick easy self-assessment test. #StayHome #WashYourHands HERE.
Coronavirus: Lenku waives taxes for Kajiado traders – KBC
IEBC postpones all scheduled by-elections over Coronavirus pandemic
Government approves Kitui factory to supply preventive gear
Six ways to prevent pregnancy stretch marks
Nyandarua County moves to secures medics in Coronavirus prevention – KBC
Esther Passaris bashed for donating sanitary pads branded with her photo – Nairobi News
Biashara lazima! Tanasha Donna to work with Diamond even after dumping him
Landlords stare at massive dip in rentals incomes : The Standard
Caddies in the rough as virus halts potential branding deals
“All you Wasafi artistes seem to be s#x addicts” Queen Darleen calls out Lava Lava in new jam
Abdu Kiba’s viral sex tape now on Pornhub – Nairobi News
Diamond steps out in weird outfit after breaking up with Tanasha
Alex Mwakideu’s wife celebrates her husband with emotional message as he turns 40 years!
Mombasa tycoon in lucrative gas industry – Weekly Citizen
Hawkers selling face masks pour onto the streets of Nairobi » Capital News
Take no chance! Protect yourself from coronavirus » Capital News
UK health minister tests positive for coronavirus – Nairobi News
Betty Kyallo’s sister leaves no room for imagination with new thirst trap photos
Double life? Search for Mwitiki takes new twist : The Standard
Billnass disputes claims he is dating Nandy, says he moved on
General2 weeks ago
Double life? Search for Mwitiki takes new twist : The Standard
Entertainment2 weeks ago
Mungu mpe nguvu! Meet Aurlus Mabele’s only child, Liza Monet
Entertainment1 week ago
Did Mwana FA lie about his Coronavirus positive status? He speaks!
Entertainment2 weeks ago
Coronavirus: Legendary singer Aurlus Mabele dead
General6 days ago
South Africa begins ‘unprecedented’ military-patrolled lockdown
Tech1 week ago
How 5G can help fight against Coronavirus
Sports1 week ago
Prince Charles tests positive for Coronavirus
General1 week ago
German army loses 6 million face masks in Kenya : The Standard