I just returned from a “Public Form on Inequality” hosted by Institute of Economic Affairs and the Society for International Development http://www.sidint.org/ who produced a shocking report on inequality in Kenya.
The most shocking statistic of the evening was the declaration by Mr. Bett, the MD of Investment Promotion Center, that our Members of Parliament (who earn 500,000 to 1 million shillings a month) have only one passed one (1) bill in 2004, which was in fact an amendment. The Parliamentary year ends on Thursday, and this is down from the four (4) bills they passed in 2003. He was wondering when they would ever get round to discussing investement and privatization bills as a way to spur investment in the country.
Tuesday, November 30, 2004
Happenings at the nairobi Stock Exchange
(1) East Africa Breweries effected a 5 for 1 share split yesterday to make it’s stock more affordable. It closed yesterday at 114 shillings/share down from 530 the previous day. It is the second company in the to do a stock split this year – Kenya Oil Corporation (KENOL) did the 1st ever with a 10 for 1 split earlier this year – and it’s share price has already climbed back to 60 which is the highest price 9equivqlent of 600 shillings – before the split).
(2) In a related matter the Financial Post (a new weekly paper in Nairobi) has an article, which says that 14 companies plan to be listed on the NSE once their over the counter (OTC) market is operational. Companies will only have to display two years of profits unlike the NSE where you have to show five years – or they also don’t have to show good profit industry, only the potential to turn round! Companies lined up include Kenya Cooperative Creameries and Cooperative Bank, Tim Sale, Hutchins Biemer and Orion - an agro chemical company.
This OTC market will target the cooperative movement. Just the fact that a company cannot meet listing requirement for the NSE, make these much riskier investment vehicles – especially for the cooperative sector which is riddled with mismanaged giant societies. I think small investors can participate in the NSE-proper as the KQ AGM showed. It’s stock trades for 19 shillings, and there are several other companies that trade for below 50 shillings.
(2) In a related matter the Financial Post (a new weekly paper in Nairobi) has an article, which says that 14 companies plan to be listed on the NSE once their over the counter (OTC) market is operational. Companies will only have to display two years of profits unlike the NSE where you have to show five years – or they also don’t have to show good profit industry, only the potential to turn round! Companies lined up include Kenya Cooperative Creameries and Cooperative Bank, Tim Sale, Hutchins Biemer and Orion - an agro chemical company.
This OTC market will target the cooperative movement. Just the fact that a company cannot meet listing requirement for the NSE, make these much riskier investment vehicles – especially for the cooperative sector which is riddled with mismanaged giant societies. I think small investors can participate in the NSE-proper as the KQ AGM showed. It’s stock trades for 19 shillings, and there are several other companies that trade for below 50 shillings.
Monday, November 29, 2004
Rising Interest Rates
In Today's newspapers, interest rates are going up: Victoria Bank 13%, I&M Bank 13% (up from 11%), and CFC Bank 13.5% effective 1st December.
In line with the Finance Bill of 2003, Bank's must notify their customers when changing rates or charges.
In line with the Finance Bill of 2003, Bank's must notify their customers when changing rates or charges.
NIC Bank looking for a new Managing Director
http://www.spencerstuart.co.uk/yourcareer/opportunities/teaser/1000039183/
Managing Director
Opportunity Number: 33832-002
NIC bank is one of Kenya’s leading commercial banks. Incorporated in 1959, the bank has a market capitalization of US$50million and assets of US$160million and is publicly quoted. Initially established as an asset finance provider, the bank diversified into mainstream commercial banking in the 1990’s with a particular focus on corporate and consumer banking.
Apply by November 28th, to begin work by 1 May 2005. You must be a university graduate with 15 years banking experience in Africa or internationally at senior executive level, among other requirements.
To view more Log-in or Register Now!
Managing Director
Opportunity Number: 33832-002
NIC bank is one of Kenya’s leading commercial banks. Incorporated in 1959, the bank has a market capitalization of US$50million and assets of US$160million and is publicly quoted. Initially established as an asset finance provider, the bank diversified into mainstream commercial banking in the 1990’s with a particular focus on corporate and consumer banking.
Apply by November 28th, to begin work by 1 May 2005. You must be a university graduate with 15 years banking experience in Africa or internationally at senior executive level, among other requirements.
To view more Log-in or Register Now!
Sunday, November 28, 2004
New Player on the Banking Scene
Equity Building Society, which has experienced rapid grwoth over the last two years has filed notice to convert from a building society into a banking institution.
This is an interestign development considering that there has been a moratorium on Banking licenses at th CBK over the last few years - although earlier this year, Credit Agricole Indosuez quietly became Bank Africa (or something like that)
Back to Equity they have called for two meetings on Saturday 11th December at the Grand Regency - one at 10 a.m. is a special general meeting for members and the second at 11 a.m. will be for depositors and creditors. Both will be asked to (i) approve convesrion from a building society to a banking institution (ii) approve the transfer of assets & liabilities of the society to those of a company.
This is an interestign development considering that there has been a moratorium on Banking licenses at th CBK over the last few years - although earlier this year, Credit Agricole Indosuez quietly became Bank Africa (or something like that)
Back to Equity they have called for two meetings on Saturday 11th December at the Grand Regency - one at 10 a.m. is a special general meeting for members and the second at 11 a.m. will be for depositors and creditors. Both will be asked to (i) approve convesrion from a building society to a banking institution (ii) approve the transfer of assets & liabilities of the society to those of a company.
Saturday, November 27, 2004
Kenya Airways Cacophonic AGM
http://www.eastandard.net/hm_news/news.php?articleid=6796
The writer is quite generous in his assesment of the meeting which was well organized by the Airline.To quote Kiraitu "the level of dialogue was very low".
80% of the questions I saw were personal and nonsensical, with shareholders asking for among other things bonus shares, extra dividends, jobs for their kids, hotel accomodation, free flights and bus fare to go home after the meeting. One shareholder advised management to stop buying big expensive planes and give more dividends instead. ha?! Intelligent answers by management sailed over teh heads of most of the crowd.
Meanwhile there was a mini-stampede outside as shareholders who came late queued to receive gift bags which had got finished earlier in the morning. what was inside? a t-shirt and key ring.
I predict that next year, KQ will hold the meeting as far away as it can from Nairobi - possibly in Tanzania or Uganda, where Kenya Airways shares are listed.
The writer is quite generous in his assesment of the meeting which was well organized by the Airline.To quote Kiraitu "the level of dialogue was very low".
80% of the questions I saw were personal and nonsensical, with shareholders asking for among other things bonus shares, extra dividends, jobs for their kids, hotel accomodation, free flights and bus fare to go home after the meeting. One shareholder advised management to stop buying big expensive planes and give more dividends instead. ha?! Intelligent answers by management sailed over teh heads of most of the crowd.
Meanwhile there was a mini-stampede outside as shareholders who came late queued to receive gift bags which had got finished earlier in the morning. what was inside? a t-shirt and key ring.
I predict that next year, KQ will hold the meeting as far away as it can from Nairobi - possibly in Tanzania or Uganda, where Kenya Airways shares are listed.
Friday, November 26, 2004
Closing the stable door long after the Horse (Power) has gone
But since the Office of the President is exempt, nothing will change
Banned: Large luxury vehicles for ministers
http://www.nationmedia.com/dailynation/nmgcontententry.asp?category_id=2&newsid=20550
Cabinet ministers will be barred from buying and using fuel guzzling vehicles at the expense of tax-payers. The ministers will be restricted to saloon cars not exceeding 2,600 c.c. and four wheel-drive cars with a capacity of 3,000 c.c., as per a Bill passed in Parliament yesterday.
But an exception will be made for vehicles bought for official use by the President and the Vice-President.
Banned: Large luxury vehicles for ministers
http://www.nationmedia.com/dailynation/nmgcontententry.asp?category_id=2&newsid=20550
Cabinet ministers will be barred from buying and using fuel guzzling vehicles at the expense of tax-payers. The ministers will be restricted to saloon cars not exceeding 2,600 c.c. and four wheel-drive cars with a capacity of 3,000 c.c., as per a Bill passed in Parliament yesterday.
But an exception will be made for vehicles bought for official use by the President and the Vice-President.
Thursday, November 25, 2004
NSE Golden Jubilee
The Nairobi Stock Exchange celebrates its Golden Jubilee (50th anniversary) at Kenyatta International Conference Center (KICC) Nairobi from November 23 – 26 2004.
Entry is 100/= and you can meet stock brokers, investment bankers and money managers and learn about investment options since deposit rates at banks are still very low.
On a realted matter, KICC has become a beehive of activity since the former ruling party was evicted from the premises last year. There are exhibitions and congferences every other week and the place has been spruced up. With with the Goldenberg inquiry meeting in the basement, KICC should have a very profitable year (if only they would publish their annual results). KICC's low point this year was in October, when the Kenyan government spokesman kicked out a clinic that had been there for 20 years, because he needed "more office space, and patients were a threat to his secutity."
Entry is 100/= and you can meet stock brokers, investment bankers and money managers and learn about investment options since deposit rates at banks are still very low.
On a realted matter, KICC has become a beehive of activity since the former ruling party was evicted from the premises last year. There are exhibitions and congferences every other week and the place has been spruced up. With with the Goldenberg inquiry meeting in the basement, KICC should have a very profitable year (if only they would publish their annual results). KICC's low point this year was in October, when the Kenyan government spokesman kicked out a clinic that had been there for 20 years, because he needed "more office space, and patients were a threat to his secutity."
About Me
Am a Banker in Nairobi Kenya. This blog will focus on events in the banking and financial sector in this part of Africa.
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