A trade unionist in Nairobi makes it clear how he intends to vote in the referendum on Kenya's proposed constitution.
A trade unionist in Nairobi makes it clear how he intends to vote in the referendum on Kenya's proposed constitution.
A trade unionist in Nairobi makes it clear how he intends to vote in the referendum on Kenya's proposed constitution.
A trade unionist in Nairobi makes it clear how he intends to vote in the referendum on Kenya's proposed constitution.

Christian leaders in Kenya resist democratic constitution


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NAIROBI // Church leaders in Kenya have threatened to scupper a proposed constitution that enhances democracy but contains measures that they say go against Christian values. Anglican bishops want to remove clauses from the constitution that allow for Islamic courts in Muslim regions of the country and permit women to seek abortions in some cases. Kenyans will vote on the constitution in a referendum in July. Politicians are backing the bill, which they say strengthens democracy. However, the abortion issue could become contentious in a country that is mostly Christian and conservative.

The drafting of a new constitution is part of the deal that ended Kenya's bloody post-election violence of 2008. Politically motivated mobs slaughtered more than 1,300 people in two months of clashes. A power sharing deal struck between Mwai Kibaki, the president, and Raila Odinga, his chief rival, ended the violence and created the post of prime minister for Mr Odinga. The draft constitution limits the executive's power, reforms the judiciary, deals with land ownership issues and seeks to eliminate the problems that led to the post-election violence. Mr Odinga and other politicians have encouraged voters to adopt the constitution.

"It is my conviction that the new constitution will strengthen our gains," Mr Odinga said in a speech over the weekend. "Let us not be scared of change. I urge you to stay the course." But church leaders, who hold sway in this religious country where the majority of the population is Christian, said they are willing to forgo the political gains. Christian groups, backed by American conservative organisations, ramped up their campaign to defeat the constitution.

"The current constitution isn't an option for Kenya," said Peter Karanja, the secretary general of the National Council of Churches of Kenya, the main umbrella group of Protestant churches. Government and church leaders have been holding talks to work out differences in the draft charter. Those talks recently broke down after church leaders learnt that the constitution could not be amended before the referendum.

Abortions are illegal in Kenya under current law, but hundreds of thousands of women still seek them each year. The existing law, however, does allow a doctor to perform an abortion if a woman's life is in danger. The proposed constitution remains the same as the old one on abortion. But church leaders fear a failure to change the phrasing will open the door to legalising abortion, saying that defining a threat to a woman's health could be interpreted broadly.

"It opens the door to abortion on demand, which is why Christian organisations who are pro-life are so opposed to that provision," said Jordan Sekulow, director for international operations at the anti-abortion American Center for Law and Justice based in Washington. The centre, one of the American groups now involved in Kenya's debate, was founded by Pat Robertson, the controversial American evangelical preacher.

A 2005 African Union protocol requires member states to protect a woman's right to abortion in the case of sexual assault, rape, incest or when a pregnancy endangers the mother's health. Many African countries have outlawed abortion except in those cases, though abortion is legal in South Africa. Last month, the Center for Reproductive Rights, a New York-based group, wrote to Hillary Clinton, the US secretary of state, asking her to call on Kenya to ensure the draft constitution does not undermine access to abortions.

The group says at least 2,600 women die each year from unsafe abortions in Kenya. Abortion rights advocates feel the limits in both the current and proposed legislation go too far. The draft constitution also keeps in place Islamic courts, known as kadhis courts in Kenya. The courts arbitrate on personal matters such as inheritance and marriage for members of the country's Muslim minority. Kenya is in the middle of a drive to register voters ahead of the referendum, which is to be held before the end of July. An opinion poll released last week by the Kenyan firm Synovate showed that 64 per cent of Kenyans support the draft constitution. Newspaper columnists have also weighed in on the debate.

"Dear men and women of the cloth," wrote Lucy Oriang, a columnist for the Daily Nation. "Now that you have formally declared war on the draft constitution from the pulpit, it is to be hoped that you will get your act together and come up with more convincing answers to the hard questions you must field." In an editorial, the influential newspaper blasted a US anti-abortion group for butting into Kenya's affairs.

"The decision by a right-wing Washington-based lobby to get directly involved in the campaign on the proposed constitution is both wrong and unwelcome," the newspaper said on Sunday. "It is the underlying concept of a foreign lobby directly influencing the outcome of a poll in a sovereign state that is most troubling." mbrown@thenational.ae

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While you're here
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The story of Edge

Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, established Edge in 2019.

It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.

Edge has an annual revenue of $5 billion and employs more than 12,000 people.

Some of the companies include Nimr, a maker of armoured vehicles, Caracal, which manufactures guns and ammunitions company, Lahab

 

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
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  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
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How will Gen Alpha invest?

Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

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Tearful appearance

Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday. 

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow. 

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.

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Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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How to become a Boglehead

Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.

•   Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.

•   Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.

•   Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.

•   Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.

•   Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.

•   Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.

•   Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.

•   Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.

Ad Astra

Director: James Gray

Stars: Brad Pitt, Tommy Lee Jones

Five out of five stars 

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