MD Terry Davidson announced last week that Kenya Commercial Bank (KCB) would open a branch in Rumbek, Southern Sudan, within three months.
You’re not a real Minister, until you put up a mansion in Mombasa
Notice how foreign Banks pay a higher percentage of their earnings as dividends than local banks?
Barclays Kenya: Earned 18 shillings per share, paid dividend of 14 per share (78%)
Standard Chartered: EPS 6.75, Div 6.5 (96%)
Diamond Trust EPS 1.3. Div .7 (53%)
NIC EPS, 3.1, div 1.4 (45%)
The reason? This is how they repatriate profits abroad to their parent banks.
So as a shareholder, you‘ll get a higher year-to-year dividend payment with a foreign bank stock on the NSE.
Kenya Commercial Bank
in 2004 KCB posted a net-profit Kshs. 793 million, slight increase from 713 million in 2003. It’s loan portfolio was 33 billion (up by 8b) while customer deposits were 52 billion (up by 4b) Staff costs increased by 15% to 3.4 billion and the bank still has a non-performing loan portfolio of 15 billion. Shareholders will be asked to approve payment of a 2 shillings per share dividend at the Bank’s AGM at KICC on June 17
NIC
As expected NIC'’s successful MOVE did not improve profits much in 2004, during the year. The benefits will be seen in 2005/06. The Bank recorded an 8% profit increase to 261 million. Deposits increased by 57% to 12.5 b and loans to customer increased by 67% to 11.5 billion thanks to various MOVE loan packages. – however operating expenses increased by 35% to 782 million, including a 30% increase in staff costs. NIC’’s AGM will be on May 27th at Intercontinental Hotel and a dividend of 2.4 shillings/share for the year will be paid
Diamond Trust
Net profit for the year increased by 6% to 131 million. The Bank increased its loans to customer by 46% (to 7.1b) while reducing its investment in government securities by 50% (to 1.2b) the bank introduced 3 flat fee accounts (imitating NIC’s MOVE) and also launched an ATM network during the year – this increased deposits by 35% to 8 billion, but operating costs also increased by 30% to 578 million. The directors declared a dividend of 70 cents.
Project Manager (new software implantation): Nile Bank (Uganda)
Graduate in business administration, or any IT field, also project management & banking experience apply by march 4th to hr@nilebank.co.ug
Credit Officers: Kenya Women's Finance Trust
Must have B.com marketing, business admin or equivalent diploma
Apply by March 11th to the Recruitment Committee, 55919 Nairobi
Fast growing local Bank, must have B.com, AKIB qualification and a years experience and be not more than 30 years.
apply by March 8th to DN/A 118, 49010-00100 Nairobi for (i) cashiers (2) (ii) clerks (3) for branch back office
Wananchi Online (Kenya’s leading ISP): Various positions, apply by March 10th to applications@wananchi.com for Manager Client Services (MBA, 5yrs exp), Finance/Cost Management Accountant (B.com CPA/ACCA, 3 years exp) Account Executives (B.com, sales exp) Personal Assistant to CEO (Bus degree, secretarial experience)
Huawei Technologies
Apply by March 10th to liuxiangzhao@huawei.com for tax manager (5 years exp) 2 assistant accountants (diploma and year exp)
Manager: Galileo (Technical Services & Support): Kenya Airways
Graduate in telecommunications, computer science, electronic engineering or other. CISCO CCNA and previous experience in air transport sector and 5 years tech exp
Apply by March 7th to the Group Director, HR, 19002 Nairobi
Kenya Football Federation. Apply by March 13th to the National Chairman, KFF, 40234 Nairobi
(i) Chief Finance Officer: Must be fully qualified accountant with commerce (or business) degree and 5 years experience
(ii) Chef Operations Officer: Must have business administration degree and football management/administration experience
Internal Auditor: Kenya Tourism Board
B-com (accounting), CPA (K), certificate in information systems audit (CISA), 5 years audit experience, preferably in public sector and good knowledge of government audits, aged 30 – 40
Apply to the MD, KTB, 30630-00100 Nairobi, by March 11th
Executive Director: Children's Legal Action Network (CLAN)
Masters in law or social sciences, 5 years management experience, aged 35-45 and have an interest in children’s rights
Apply by March 9th to DN/A 120, 49010-00100 Nairobi
Special Assistant: To CEO of un-named company
Applicants must have MBA (rated in top 5 academically)
Apply by March 3rd to the HRM, 73146-00200 Nairobi
Accounts Assistant: Eveready Kenya
b-com accounting, CPA 3 apply to apps@eveready.co.ke by March 10
Management Trainees: Kenchic
Much have degree in veterinary medicine, animal health or animal production (2nd class honours) and be below 29 years. Apply to the HRM, 20052-00100 or e-mail hr@kenchic.com by March 18th
Mugoya Construction & Engineering Co. Ltd has filed a notice though its advocates (Oluoch Olunya & Co) to wind up its business as per the Companies Act. This will bring an end to the pre-eminent construction company of the Moi-era. Mugoya was contracted for virtually all major construction projects running into billions of shillings and put up many landmark buildings around Kenya. However the company was also associated with cost over-runs and disputes over stalled projects. A hearing will be held on March 15th at the Milimani Commercial Courts, and creditors/parties wishing to be heard must notify the advocates in writing by March 10th. (Notice appears in EA Standard, February 24, 2005)
The National Social Security Fund (NSSF) is seeking to dispose of some prime properties. While this will raise some cash for the fund, it will also improve the firm’s compliance with the Retirement Benefit Authority (RBA) Act, which limits the amount of cash the NSSF, and other pension bodies can invest in land and real estate. If you have some millions lying idle you can write to The Managing Trustee of the NSSF, P. O. Box 30599 Nairobi.
Some of the gems include: 5 acres between GPO and the Grand Regency Hotel (now a parking lot), .9 acre on State House road, 1.3 acres on state house road with an old executive house & pool, 50 acres near Karen shopping centre, 2.5 acres on Hospital Rd (Upper Hill), 2 acres on Bishops Rd (opp. Fairview Hotel), 20 acres on Langata Road, 10 acres on the Mombasa-Malindi Rd (near Giriama Hotel), Three 21 acre plots in Kikambala (Mtwapa) with beach front and 1,300 acres behind Mlolongo (Athi River area)
The Anglican Church of Kenya School of Language & Orientation offer language courses in Kikuyu, Dholuo, Kimaasai, Kimeru, Kiembu, Kitaita, Kalenjin, Kamba, Luhya, French, Spanish, German, Swahili, Arabic and sign languages. Costs are Kshs. 32,000 for a 14-week course and it presently has students from 27 countries.
NIC Bank Warning
NIC Bank which does a lot of vehicle and asset financing, has issued a warning that it is not associated with NIC Microfinance (K) Ltd a company that also purports to offer vehicle finance
Now Uchumi franchises
In a novel restructuring move, that may further dilute and confuse a brand which seems to have no strategic direction, Uchumi supermarkets invites individuals to set up and run their own Uchumi franchises. You must: have working capital of Kshs. 5m, a bank guarantee of Kshs. 5m, be prepared to manager your site on a day-to day bases, have proof that you own/lease property, and turn over 1% of net sales to Uchumi.
For further information, contact the Company Secretary, Uchumi P. O. Box 73167-00200 Nairobi, Tel: 550200 or e-mail franchise@uchumi.com
Econet Decision
The fate of Kenya’s third licensed mobile operator, Econet, may be known on March 1, when Justice Mohammed Ibrahim delivers his verdict. Econet appealed when Information Minister Tuju had cancelled their license on the grounds that the company awarded the license, was not the same one that had applied.
Eve Magazine has put an advert out for their Woman of the Year award and has invited the public to submit names of women of distinction for consideration. In 2005, it appears that it will be a slam-dunk for Wangari Maathai. However I beg to differ. Wangari was awarded in recognition of her lifetime of work fighting for the environment. But as an MP and Minister, she has not much done recently. She should have been honoured with the Nobel Prize in the early to mid-nineties when she single-handedly saved Uhuru Park and later saved Karura Forest from destruction. Awarding her then would have been much more significant, and energized the Nation the way it did for Myanmar (Burma) in 1991 when Aung San Suu Kyi was awarded for her non-violent struggle for democracy and human rights. In 2004 awarding Wangari appears to be an afterthought.
For sheer courage in the last year, Njeeri Wa Ngugi must be considered - for bringing her husband back from exile, and for her strenth after their journey took a horrifying turn. She went public with her story, against all advice that she remain silent, and later identified her attackers and returned from America to testify and pursue a case against them.
But my nominee is Gladwell Otieno of Transparency International. At a time when member’s of the civic society have been co-opted into government and become willing participants in the NARC, she single-handedly came out and shamed the dozen government anti-graft bodies with her singular crusade against corruption, while counter-checking all moves to silence her. The government has recognized the futility of fighting a woman, and has therefore picked women to battle her – PS Dorothy Angote and First Lady Lucy Kibaki. You can e-mail your suggestions to Eve magazine.
Local authorities with outstanding debts will not be awarded disbursements from teh Local Authorities Transfer Fund (LATF). This is to stop them from diverting funds meant for development projects into salaries and other debts, says the Minister for Local Government, Musikari Kombo.
According to local authorities transfer fund requirements, a town council must prepare service delivery plan (LASDAP) before it can receive funds. Nairobi, has its 2005/2006 LASDAP posted randomly on walls as follows:
+ A1 Total allocation LATF 692 million
+ A2 Fuel levy (for roads) 300 million
+ B- Poverty reduction grant 25 million
B Estimated 2005/06 revenue 4.1 billion
- C debt resolution 380 million
- D1 est. 2005/06 salary 2.5 billion
- D2 est. councillor costs 81 million
- A2 fuel levy (for roads) 300 million
- D3 est. operations/maintenance costs 05/06 1.6 billion
- D4 poverty reduction grant 25 million
Money available for service delivery action plan 198 m (poverty reduction grant 25m)
= (Total envelope 223 million)
That notice invited Nairobians to submit their comments to the Town Clerk, and not surprisingly, a lot of them expressed a desire to see actual specifics of projects to be undertaken.
Replying in a paid advertisemtnt in the newspapers of Feb 22, the Town Clerk listed some 62 projects now completed amounting to about 140 million shillings, to allay fears that the money is being misappropriated. The projects include purchase of computers (1m), construction of ngundu bridge embakasi (1m), construction ruai health centre (4.5m) water supply to utawala embakasi (3.9m), street lighting in California and biafra estates (1.9m), construction of matatu terminus @ kariokor market (5m), construction perimeter wall at pumwani dispensary (1.7m), rehabilitation of city market (5m), and construction of a public toilet @ riruta market (1.4m). Of the 62 projects listed, 9 have been to rehabilitate social halls, 7 to rehabilitate health centres, and 6 to rehabilitate roads and bridges.
Postbank Modernises
Postbank has earmarked 230 million shillings for expansion including an online payment and ATM network. They are also seeking to amend the KPOSB Act 493 of 1978 that set up and governs the Bank. The Bank, which was set up to encourage Kenyans to save, is not allowed to give loans, and they would like to offer micro-finance and consumer loans at their 47 branches nationwide.
Bank to auction land
Bank of Baroda will auction off the 8,300-acre farm that used to be Chemelil Sisal Estate in South Nandi at a cost of 78 million shillings. This stems from 3 loans the directors of the company took between 1971 and 1988, that were never paid and accrued huge interest arrears. The farm has 2,000 squatters who are demanding the right to buy sections of the farm, as they have lived there for many years.
Privatisation in Kenya
(The People Feb 21) The government is considering selling its stake in three banks which it controls. National Bank, which is valued at 4 billion shillings, has attracted offers from several investors, the highest being only 500 million. This is mainly because the Bank has non-performing loans of 17 billion, 11 of which is owed by the government. Other Banks on the list are Consolidated Bank and Industrial Development Bank. The newspapers urges the government not to sell these Banks below their value, despite their various problems.
Privatisation in Tanzania
After a review of technical and financial bids, three banks - Radobank Nederland, Standard Bank (SA) and Akiba Commercial Bank - have been short-listed to bid for a 49% stake in the National Micro Finance Bank of Tanzania. (East African Feb 21)
More SMS
Prime Bank is the latest bank to offer SMS banking to its customers.
Safaricom Sale
The Government will sell 11% of Safaricom to raise funds to restruture Telkom Kenya. It (through Telkom) owns 60% of Safaricom, with Vodaphone (UK) owning the other 40%. (Nation Feb 22)
LSK Lunch
The Law Society of Kenya (LSK) will have its quarterly luncheon on February 24th at the Stanley Hotel. The Chief Guest will be Hon. Justice Aaron Ringera, who will speak on “Milestones in the Fight Against Corruption in Kenya.”
Micro Finance Officers
CARE Kenya (to be based in Dadaab, Garissa)
Must have business, commerce or economics degree and 3 years experience at a credit institution. CPA, ACCA or CIMA qualification would be an advantage. Apply by Feb 28th to The Human Resource & Development Manager, CARE International in Kenya, P. O. Box 43864-00100
Commercial Officer
French Economic Department
Must be university graduate, fluent is French, English and Swahili, with 5 years experience and aged 28 – 35. Complete CV in French language and apply by 1st March to French Economic Department in Kenya, P. O. Box 30374-00100 or e-mail nairobi@missioneco.org
Assistant Secretary General (admin & finance)
Common Market for Eastern & Southern Africa (COMESA)
Must have postgraduate business, management, finance or economics degree, 12 years executive management experience at a large institution, and be fluent in English & French. Apply by Feb 25 to the Permanent Secretary, Ministry of Trade & Industry, P. O. Box 30430-00100, Nairobi.
Chief Financial Officer/Financial Controller
At an award winning manufacturer and exporter of jams and juices
Should have 10 years in food processing industry, CPA, CA or ACCA qualification, and must be presently heading a finance & accounts department. Apply to The Advertiser, P. O. Box 1165-00606, or e-mail manguru@manguruplus.com / afrisuccess@yahoo.com by Feb 28th
Sports Stadia Management Board
Apply by March 2 to The Chief Executive, Sports Stadia Management Board, Private Bag – Kasarani, Nairobi for the following two positions:
(i) Deputy Director - Finance, Human Resources & Administration (Ref: DD/F&A/037/SB2)
Must have MBA, CPA and 8 years senior management experience.
(ii) Assistant Director - Business Development (Ref: AD/BD/038/SB3)
Must have business degree (marketing option), 5 years experience and good knowledge of IT
Graduate Management Trainees
Postal Corporation of Kenya
Must be fresh university graduates, and aged below 26 years. Will train in various departments for up to 2 years, after which they will be appointed to management jobs. Apply by March 19th, to The Postmaster General, General Management Training Program, Postal Corporation Of Kenya, P. O. Box 34567-00100 Nairobi
Graduate Management Trainees
At a multinational corporation
Must be fresh graduates aged below 30 years. Apply by March 5th, to The Advertiser, P. O. Box 45242-00100, Nairobi
Kengeles is inviting investors to apply to open new resturants. You are required to have the capability of investing 9 - 14 million shillings, as well as 4 million in liquid capital. Kengeles will assist you with site selection, leasing agreements, personnel development, advertising and quality control etc. - and in exchange you get to launch a resturant/bar with established brand and a ready market & customer base, at low risk to yourself. Apply to Kengeles Management Group at kmg@kengeles.com or 572314/4349311
Move to convert Kenya Laws to Electronic form (internet)
The Ministry of Justice & Constitutional Affairs has invited a tender for the conversion of the Laws of Kenya into electronic form. This is part of the Governance, Justice, Law and Order Sector reform project (GJLOS) and will involve: scanning laws into editable text, develop software to enable easy access and hypertext searches and be able to save queries. The package must disable copying, printing & saving of text. It must also allow for easy updating, administrator accounts, and allow for monitoring of usage. The project will be funded by GJLOS and submissions must be received by March 21 at: The Fund Manager, GJLOS Reform Program, KPMG Kenya, P. O. Box 40612-00100 Nairobi – reference T000012/05/02
Comments invited on ICT Policy
The Kenyan draft ICT Policy is ready and the Ministry of information and communication has extended the deadline to March 10th for Kenyan to submit comments to the Permanent Secretary, Eng. James Rege, Ministry of Information & Communications P. O. Box 30025-00100 or kenyaictpolicy@yahoo.co.uk
ICDC Tender Cancelled
The Industrial & Commercial Development Corporation (ICDC) has cancelled its tender that was to close on Feb. 24 for the provision of an integrated finance and loan management software solution.
In 2004, Standard Chartered posted a 1.8 billion shilling profit, down 33% from 2.8 billion in 2003. Much was blamed on the low interest rates and during year, the bank transferred much of its lending away from the government and toward the public. Loans to the public increased from 19 to 27 billion shillings, while government securities held by Stanchart fell from 32 to 24 billion. Commission and fee income reduced by 166 million, while other income also dropped by 700 million. Unlike Barclays, which reduced its staff costs by 40%, Stanchart staff costs increased by 8% to 1.6 billion.
The Bank closed the year with deposits of 57 billion, and even though earnings and dividends have reduced from 2003, shareholders will still be happy with a 6.50 per share dividend (on earnings of 6.74 per share) as their share prices have almost dipped to their 12 month low of 130 shillings.
Kenya Social Forum and Transparency International held a public debate on the War on Corruption on Feb 17th at Lillian Towers. Speakers included Gladwell Otieno, MP’s Omingo Magara & Billow Kerow, David Makali of the Standard and Patrick Kiage of the LSK.
MP Magara said
- Even though donors offered parliament free Internet connectivity, and computerization of all parliamentary processes, nothing has happened for four years.
- He has to use a cyber café in parliament.
- As a former tax collector, he’s now shocked now that he can see how taxpayers money is spent by the government.
- A bill he introduced to make the parliamentary process open to the public was defeated. He promised to submit to TI a list of all MP’s who voted down his motion.
MP Kerrow said
- Says parliament is hampered by what it can do
- Media reporting of parliament is poor; 5 hours of debate is reduced to 1 minute on the nightly news
- Government motions and bills take up 90% of parliamentary debate time
- Parliament must publicise all that it does
- Says he asked Mwiraria about two of the phantom payments (Universal Satspace: internet bandwidth & Silversonic: police vehicles) in July 2004 that Clay spoke about – the Minister was unable to explain what the payments were for, or why he had for two years paid for a bogus deal set up by KANU
- Claims that, just before he retired, Githongo had received the Kroll Report on assets abroad held by Kenyans, including ministers. He will push for the report to be tabled in parliament.
Kenya Breweries has launched a new premium beer, White Cap Light, on the Kenyan market. New drink was announced by Patricia Ithau, the Marketing Director of KBL (former Ms. Kenya who was previously at Unilever, and driving force behind the Kenya National Dress 2004 and new Omo). Light beers account for 40% of the beers sold in the U.S. Also Nairobi Bottlers, in conjunction with Appetiser International, have introduced a new juice, that’s a blend of 6 blends of apple that is aimed at stylish and independent women.
Sun & Sand Beach Resort has been awarded 5 star status by the Ministry of Tourism.
Barclays Bank of Kenya and Commercial Bank of Kenya have each donated one million shillings to the Kenya open golf tournament that begins on March 9th at Karen Country Club
2, not 3 Nakumatt’s in CBD: Nakumatt will close Nakumatt Checkpoint (on Kenyatta Ave, next to I&M Towers) when they open Nakumatt Lifestyle (on Monrovia/Moktar Daddah Street) on Sunday Feb 20th
National Council of NGO’s chaired by Orie Rogo-Manduli will hold its 18th general assembly on April 15 at Ufungamano House. Pay 500/= at the door.
Meru Park upgrade
Meru National Park will get a facelift that will cost 1 billion shillings. It will involve construction of roads, buildings, fencing, and the movement of wildlife. It will be funded by the Government of Kenya, with the support of the French Development Agency
Ouko no cash
The Ouko Commission in London is caught in a cash crunch, as the Clerk of the National Assembly, has ordered them to wind up work and return to Kenya, as their stay is proving to be too expensive. Nation TV estimates that airfare cost 1 million shillings, living expenses have cost 2.7 million, and contingency costs have amounted to 1.7 million during the one, and only planned for, week the Commission has been in London. They have been holding sessions at the Kenya High Commission, interfering with their work, and have requested a second week there. Surely the video link would have been cheaper
Men: beware of short calls
The Nairobi City Council is now arresting people seen urinating in bushes/road sides. They say they are enforcing a by-law, but is truly a money-making grab by a city that provides almost no services, yet collects taxes in so many novel ways – people caught are thrown into a council truck and taken to court where they are fined 1,000 or 2 weeks in jail if they can’t afford. However, the cost of enforcement, prosecution and punishment is likely to exceed any gains.
1. Favourite Kenyan food:
(a) Nyama choma
(b) Fried fish and ugali
(c) Kachumbari I can use it on almost any meal)
2. Favourite Kenyan drink:
Club special (a non-alcoholic drink found at most sports clubs). Previously was mild Tusker
3. Favourite Kenyan TV programme:(Crossfire on radio) don't watch much local TV, but Nation's Wingu La Moto is a guilty pleasure (don't know if it's on anymore)
4. Top Four Kenyan hang outs:
(a) Caesar's Palace & Sundowner (owned by friends & I get a tab sometimes)
(b) Kengeles West, for soccer
(c) Pizza Garden, best value for pizza
(d) Choices for sports, music, and surprisingly great food
5. Top Kenyan holiday destination: Mombasa: Missed it for 11 years, and nothing has changed - still watch the sunrise, then take a dawn swim - it's so therapeutic being on the edge of the world, I'm going to retire on a boat and fish forever
6. 3 Kenyan phrases you use a lot
(a) Beeeeeeeeeep! (Use my horn ALOT when driving)
(b) Sh*t! and WTF!
(c) Safaricom ya mia
7. Three/ Four things about Kenya/Kenyans that make you go 'hmmm'
(a) The amazing rich-poor lifestyle gap. You can buy a soda on Lenana road for 15 shillings, then cross the road into Casablanca and get charged 450 shillings for a vodka tonic.
(b) The obsession with news - bar patrons tune in to the 7 p.m. newscast, and newspapers are borrowed and re-read well into the night
(c) We are all hawkers - you can put up anything anywhere as all zoning regulations are ignored. From hawkers on the street to kiosks, Chinese restaurants, salons, bars, to 6-storey apartments can all co-exist on a single block.
(d) Kids emulating bling-bling lifestyle after watching three R. Kelly or Nelly videos
8. Three things non-Kenyans say about Kenya/Kenyans that make you go 'hmmm'
(a) Are you kikuyu or kalenjin? Cause you’re not Masai!
(b) You got tigers and sh*t?
(c) Is it hot over there?
9. Three things about Kenya/Kenyans, which non-Kenyans ought to know.
(a) Working for an NGO, or donor body, helping the poor is not supposed to be that lucrative
(b) We speak better English than you (Aussie's, Brits, and Americans)
(c) Haircare is cheap. I pay 70 shillings (93 cents) for a haircut, down from the $10 I used to pay in Michigan - and my sisters in DC pay $200 for braids, while here it’s about $20.
10. Complete this sentence: I am Kenyan because...I came back
And finally list 3 members of the Kenyan Blog Ring you would like to see complete this quiz.
Chanuka, Afromusing, and Au Lait
At Suntra Investment Bank
General Manager Operations (MN1602)
Masters degree in finance, and 5 years experience in investment/merchant banking
Manager Stockbroking Operations (MN1603)
Bachelors’ degree in business, marketing, finance, 3 years experience, and professional qualification or specialised training an advantage
Manager Investment (Merchant) Banking (MN1604)
Bachelors’ degree, professional qualification such as CFA or in banking an advantage
At a local Bank
Marketing Manager (MN1609)
MBA, Five years marketing experience and preferably experience marketing bank products, aged 30-35
Manager Operation (MN1610)
MBA, 5 years operations management experience, professional banking qualification an advantage, aged 35 – 40
Manager Operations Rigour (MN1611)
Branch Manager(s) (MN1612)
Graduate with experience as branch managers or assistant branch managers
Apply by Feb 28 2005 to Executive Selection Division, Manpower (K) Services, Ltd, P. O. Box 50736-00200 Nairobi. Check the Nation Feb 16 for more details.
In the East African this week, Credit Reference Bureau (CRB) Kenya Country Manager Wachira Ndege, expects more bank’s to use expert evaluation before making lending decisions especially when advancing (unsecured) personal loans. He reveals that Barclays, NIC, Stanbic, KCB card, Fina, and Southern Credit use CRB services.
Also a CRB subsidiary, Collection Africa, is bidding alongside Transunion and Metropol to purchase the bad loan portfolio of National Bank of Kenya at a discount’s of 60%o. Collection Africa has been contracted by collect bad debts by Stanbic Kenya, Stanchart Tanzania and Barclays (in Kenya, Uganda, Tanzania, Botswana, Zamia and Ghana)
The Kenya Electricity Generating Company (KENGEN) placed an advertisement in the Nation (Feb 16) seeking a legal advisor to assist it float 30% of its shares on the Nairobi Stock Exchange. Kengen is the leading electric power generation company in Kenya, producing about 80 percent of electricity consumed in the country, and is a LLC wholly by the Government of Kenya.
Other companies who have recently expressed interest in listing on the NSE are Mabati Rolling Mills, Equity Bank, and Safaricom
(In an interview in the financial post (Feb. 14) Safaricom MD admits that he hopes that one day, Safaricom (Owned 60% by Kenya Govt/Telkom, 40% by Vodaphone) will go public and that Econet does not have much of a chance, especially if they have to build their own network. He also admits to some failures such as GPRS and a phone re-cycling project. Also, 98% of Safaricom’s customer base are pre-paid, and while he wishes to lower the cost of making calls, he points out that 26% of airtime goes to taxes.
The government should sell out of safaricom and use the cash to restructure Telkom and invest in other communication or development areas. Of Telkom’s 16 billion debts, a significant amount is owed to Safaricom and Kencell, and those can be re-negotiated. Telkom is losing out, as it can’t afford to compete in de-regulated markets as more competitors are licensed. There are investors willing to partner with Telkom but only after it undertakes a costly retrenchment and restructuring in which can be funded with cash from a safaricom public offering.
In 2002, Safaricom had revenue of 9 billion (753m profit), and in 2003 it was 14 billion (with 2 billion profit). According to Joseph, in first 6 months of 2004, the government received 1.2 billion in corporate income tax from Safaricom as well as 3.5 billion in duties and fees (on phone calls, SMS, new lines etc). Safaricom has paid over 25 billion in taxes to date and the government will continue to earn between 5 billion and 10 billion a year from safaricom in annual taxes even after privatisation.
The government is sitting on value and goodwill of its share of Safaricom and should use this opportunity to invite the public to also invest in the sector. Safaricom will probably be the most over-subscribed offering in the history of East Africa (surpassing Kenya Airways and Kenya Commercial Bank) and will enable the government to restructure Telkom Kenya.
The African Development Bank will fund construction of a road linking Mombasa to Addis Ababa as a cost of $55 million…Bank of India marks 50 years of banking in Kenya this month with the opening of a Westlands Branch …Imperial Bank has introduced VISA credit cards for its customers…Consolidated Bank of Kenya has introduced ATM services, under the Kenswitch consortium, as well as e-cell banking (via mobile phones)…a bank known as Osienala Beach Bank (friends of the lake) has been opened by an NGO to enable 5,000 fishermen along Lake Victoria to bank their savings... Fishermen at the Kenyan coast are now eligible to receive loans from the Agriculture Finance Corporation (AFC)…Stanbic employees handed out flowers and choclate to their customers to mark Valentine’s Day…and the National Housing Corporation will sell 850 housing units to recover Kshs. 1 .3 billion owed to it by the Nairobi City Council.
We must all applaud members of the 3rd progressive force for declaring their wealth. Assistant Minister Dunson Mungatana (23 gross 9.8 m MP earnings, 2.8m ministerial earnings, 1.8m from law practice, liabilities of 13.5m, 5 cars, two houses in Nairobi and 1 in Garsen), Assistant Minister Kivutha Kibwana (Net worth: 15m, 8m MP salary, 2 plots, 1 house, 4 cars, 2.3m in SACCO shares), MP Koigi wa Wamwere (Net worth: 15 million, 3 plots, 2 houses, 2 cars, 4 bank accounts with 1.8m, 600,000 in SACCO shares), and MP Kalembe Ndile (Net worth: 15 million, 8m salary as MP, 4 cars, 2 plots, 1.5 in SACCO shares) read out their wealth declaration form and laid down a challenge to members of the cabinet to do the same. [Kibwana and Mungatana were re-deployed to other ministries later in the day, but remain assistant ministers]
Their move was cautiously supported by Communications Minister Raphael Tuju and Justice Assistant Minister Robinson Githae.
There’s a backlash against colourful/media-friendly personalities right now: COTU Secretary General Francis Atwoli and NGO Council chairlady Orie-Rogo Manduli are both under-fire by members of their respective organizations – who believe that their motor mouths are damaging the credibility of the organizations they lead. John Githongo has become the Kenyan Dick Cheney – who now lives at an “undisclosed location,” while Ezekiel Mutua of the KUJ is under fire from all sides. Meanwhile it appears that the media has given Martha Karua blackout following her erratic behaviour when they show up, and Mutava Musyimi has gone underground since it was revealed that his anti-corruption body had received their 200 million-budget allocation (hopefully they are putting it to work)
While NIC Bank is well known for its MOVE banking concept, its asset finance scheme has also been very popular for the Kenyan’s eager to enter the matatu business. The Michuki rules have made it easier for new entrants to break into what used to be a murky sector – and NIC has been the financier of choice. The Bank has allocated the PSV sector 35% of its asset finance portfolio. According to the Bank’s head of asset finance, Edna Kihara, the minimum loan amount is 300,000 and with loans processed within 48 hours, has proved to be very popular.
Other terms are that: (1) only new matatu’s financed - no used or ex-Japan vehicles (2) owner deposits 40% (3) 1-3 year loan (4) insure comprehensively (5) joint registration with NIC (6) commitment fee of 2%
Civil suit no. 151 of 2003 to be heard at Milimani commercial courts of February 25, 2005 pits four (4) mortgage borrowers against the Housing Finance Company of Kenya (HFCK) and seeks to challenge “default charges,” ”penalty interest, ”interest on arrears,” and other charges that HFCK has debited against these borrowers account. Through an initiative spearheaded by the Interest Rates Advisory Centre (associated with former MP Joe Donde), 60 other borrowers have been enjoined in the class action suit against HFCK. IRAC is also seeking to register other borrowers by February 20th to participate in the suit against HFCK.
The 2005 Kenyan edition of the V monologues was held at the Carnivore grounds on Saturday. However, the Ugandan show will not take place as it has been banned by First Lady, Janet Museveni, says one of the organizers.
Coming Soon: From Sunday Nation 13/2 Buzz mag p4A new play called ‘Simbi Nyaima’ opened at the Kenya National Theatre over the weekend, produced by Alwan Communications and directed by Alfred Wandago, who also directed ‘Naliaka is going.’ However, Government spokesman, Dr. Alfred Mutua, was not impressed with the film – describing it “mediocre, and needed to be polished before being screened,” also that ”it was marked with poor lighting and actors appear as though they were on stage, not screen”. Adds, Dr. Mutua, “I am soon releasing a classic movie I did in Dubai and I believe many producers will want to borrow a leaf to tighten this stuff”
Information (and acting tourism) Minister Raphael Tuju appeared on Nation TV last night to defend the government against allegations of corruption. Sounding very much like the government spokesman (Dr. Mutua), he said that there was corruption in parliament and in the media so they had no right to jusge minister’s - and that the president would take action against corrupt ministers once he had seen evidence, and not to please a corrupt lynch mob. He said Kenyans spend too much time politicking, and ignore the good that the government has done – e.g. farmers (dairy, sugar) are getting paid on time, constituencies have received funding (for AIDS treatment, bursary, development), police salaries doubled, peace in Sudan & Somalia, matatu’s are comfortable, free primary education and took personal credit for the 18% growth in tourism.
On his controversies in his ministries, he said that he did the right thing in cancelling the second national operator and third mobile licenses (even as he acknowledged that he did not have those powers) and that he inherited the KWS hiring fiasco from his predecessor (the late Karisa Maitha).
Barclays Bank Kenya announced profits this week, and in 2004 their profits increased to Kshs. 3.7 billion, up from 3.3 billion in 2003. Looking though the number, loans increased from 56 to 63 billion and deposits increased from 77 to 80 billion. However with income remaining flat at 13 billion, the main source of profits appears to be from a 40% reduction in staff costs - from 3.1 billion in 2003 to Kshs. 1.9 billion in 2004. Still shareholders will not be complaining when they convene at KICC on April 8th for the Bank’s AGM where they will be asked to approve a dividend payment of 11 shillings per share.
The Economist is a great magazine to read,and has lot of stuff about Kenya that you won’t find elsewhere. This week:
Legal Work
1. Consultant to the Republic of Kenya and GJLOS
Law firm to review the Companies Act (Cap 486) of the Laws of Kenya
The law firm must have at least 15 years experience with company laws in the commonwealth
Apply to gjlosfma@kpmg.co.ke by 1st March
2. Consultant to the Republic of Kenya and FLSTAP
Law firm to advice on the restructuring and privatisation of banks owned (or influenced) by the government of Kenya. The law firm must have prior experience in bank privatisation and financial restructuring, preferably in developing countries. This will be an 18 month bank restructuring and privatisation project beginning in April 2005
Apply to manpowerkenya@kenyaweb.com by 16th Feb
Jobs
1. Chief Executive: African Trade Insurance Agency
Apply by March 18th to recruitment@africa-eca.com and check www.africa-eca.com/recruitment for more details
2. Head of Africa Program: Saferworld
Saferworld is an NGO that works to prevent armed violence is recruiting a senior manager to head the Africa program who will be based in Nairobi.
Apply by March 9th to abrowne@saferworld.org.uk referring to “HeAP” and check out www.saferworld.org.uk for more details
Deloitte Consulting
Three positions for Kenya/Tanzania operations
(1) Senior consultant (Business management and operations): Must have MBA, also CPA, CFA or ACCA, 3 – 5 years experience in investment banking, corporate strategy etc, and be aged 30 – 36 years.
(2) Business analyst (Business management and operations): Must have MBA, financial management experience and be aged less than 33 years
(3) Business analyst (Information technology): Must have bachelors’ degree in computer science or engineering and at least 2 years experience. MCSE or MCSD or similar qualifications an advantage.
Apply by Feb 25 to The Regional Human Resource Manager, Deloitte P. O. Box 40092 Nairobi or admin@deloitte.co.ke
Dyer & Blair
Investment bank Trainees
Must have business bachelors degree plus other qualifications such as CFA
Apply to training@dyerandblair by Feb. 18
PriceWaterhouseCoopers, Kenya
Office Services Manager
Must have university degree in Business Administration, Business or ICT, and at least five years senior administration experience in a service-oriented organization. Good knowledge of telecommunications, ICT, intranet, extranet, distributed computing, e-document, back office systems, and supply chain systems
Apply by Feb. 25, quoting reference ESS 385 to Executive Search & Selection, PricewaterhouseCoopers Ltd, P. O. Box 43963-00100 or ess.ke@ke.pwc.com
The World Bank
Human Resources Officer based in Kenya
Must have masters’ degree in HR and a minimum 5 years experience in HR – recruiting, training, performance management coaching and HR consulting. – Must be willing to travel frequently around Africa
Apply by Feb. 23 2005, referring to “Application For Human Resources Officer” more info can be found on Vacancy #R200502E003 at www.worldbank.org/careers
Treasury Dealer
At a Kenyan Banker (assume in Nairobi)
Business bachelors’ degree and three years banking experience, with at least one year in direct FX/MM, treasury or sale. Also good knowledge of Kenya’s and world economic and financial systems, treasury operations and ability to analyse financial data. Proficient in dealing systems and be below 35 years.
Apply by Feb. 21 to DN.A/89, P. O. Box 49010-00100 Nairobi
Kenya Airways
Internal Auditor
Must have commerce degree and four years in audit risk management, CPA (K) and knowledge of CAATTS, IFRS, and IIA
Apply by Feb 18 to the Group Director, Human Resource/Security Services
Kenya Airways, Embakasi Old Airport, P. O. Box 19002 Nairobi
CARE International Kenya (based in Dadaab, Garissa)
Program Support Manager
Business administration degree and prior experience in programme support, managing donor funds, and NGO operations
Apply by Feb. 23 to The Human Resource And Development Manager, CARE International Kenya, P. O. Box 43864, Nairobi
DanChurchAid
Finance Administrator
1 year post beginning March 15, must have financial degree, finance skills in NGO sector, good IT and book-keeping skills
Apply by Feb. 25, to dca@africaonline.co.ke referring to “DCA part time finance administrator”
‘Anon’ institute
Local institute, owned by professionals, that promotes public participation in public policy development is seeking three senior program officers – all require willingness to travel, and experience in designing programs and project proposals
(1) Research & advisory (budget information programme): must have masters in econ and 2 years research experience in policy public finance
(2) Networks support (budget information programme) masters degree in development, public policy or political economy and two years research/advocacy experience in public finance issues
(3) Trade information programme officer: must have masters in econ, international trade or law and at lest 2 years research exp on international trade
Apply by Feb. 25 to The Chief Executive, Programme Officer Search, P. O. Box 53989-00200, Nairobi
The African Women Agribusiness Network East Africa (AWAN-EA)
Business Support Officer, beginning April 2005, one year renewable
Must have masters’ degree in finance, econ or business, accounting experience also desirable. Three years experience in a business support organization, financial institution or consultant practice, experience managing donor funds and knowledge of USAID financial management regulations
Apply by Feb. 14 to C/o Program Manager, P. O. Box 76390-00508 Nairobi or coordinator@awan-ea.net
On Feb 9th, Uchumi closed 10 stores (including six stores in Nairobi) 580 staff have been put on 30-day notice to be laid off, and also four directors resigned. Over the last few years it has been unprofitable, but with each annual loss announcement, previous MD Thairu used to announce that Uchumi had reached rock-bottom and was on the up-swing. Uchumi will remain with 18 stores they hope to save Kshs. 200 million though the moves.
Sport Guy: Would you believe me if I told you that the city of Jacksonville (Florida, US, and site of the 2005 super bowl) changed all the ATMs (excluding the ones in actual banks) so that A) it costs $5.00 for every ATM transaction fee, and B) you can only take out $100 at a time, and nothing more than that? Well, it's true. In other words, if you want to take out $300, it costs you an extra $15. Great city. Don’t give Nairobi Mayor Waithika any more bad ideas
H. E. Sir Edward Clay, the British High Commissioner to Kenya, and renowned emetophobiac, will be the Guest Speaker at the Nairobi Central Business District Association’s (NCBDA) 1st quarterly luncheon for 2005, to be held on March 16. His topic: "Diplomacy, Politics and Investment - Kenya at the Crossroads". The function should be a sell-out if it is not canceled or NCBDA are persuaded to invite a different speaker.
Emetophobia: fear of vomiting/those who fear seeing others being sick/fear being near people who are ill.
Prime Bank account holders will be able to access their money, locally and aboard, from any of the 800,000 ATM’s or use their cards at 12 million merchants worldwide that bear the VISA logo in more than 150 countries (EAS 10/2)
It is quite common to see the same story appear word for word in two or three Nairobi tabloids (this week story on Luo paper millionaires runs in both the Weekly Citizen and Independent) but you rarely expect to find this in the major papers. However both the Nation and Standard, have the same story on telecommunication sector in the February papers, Standard on page FS5 and Nation on page B9 – word for word, except with minor alterations.
Anyone driving to Nakuru should be aware that there is a speed trap. It’s situated just before Naivasha as you descend on the last section of good road (many people cruise at above 140 Kmh) You have to pay a bond of Kshs 3,000 (not a bribe) to enable you to continue with your journey, otherwise you car will be impounded and you will go to jail till you case is heard. The operation is manned by a special police unit (not Naivasha cops) and if you live in the US or Canada, check out http://www.speedtrap.org/speedtraps/stetlist.asp for speed traps in your area
This somwhat racist article, in Salon magazine, points out that Kenya throws million of shillings at a sport we are ‘terrible at’[soccer]and that we should instead concentrate on sports where we clearly excel [athletics] - We’re so good at athletics, that we are even exporting athletes for dollars
No amount of political correctness can obscure the reality that a large part of Kenyans' mediocre record in soccer and sprinting comes down to genetics: They just don't have the body or physiology for those sports. They are ectomorphs, short and slender, with huge natural lung capacity and a preponderance of slow twitch muscles, the energy system for endurance sports. It's a perfect biomechanical package for distance running, but a disaster for sports that require anaerobic bursts of speed -- like sprinting and soccer.
Also, despite the relative success of the Harambee Stars, Kenya has effectively outsourced its soccer craze to the Premiership and other European leagues since satellite TV was established in Kenya. If Harambee Stars are playing the Africa Cup final against Tunisia, simultaneously with an Arsenal-Chelsea game, TV’s will be euqlly split between both games. Meanwhile Dennis Oliech plays his professional soccer in Doha, Qatar earning 640,000 shillings a month (and 60,000 allowance per week)
Telkom Kenya to be privatised
Telkom SA is keen to take a stake in Telkom Kenya if if Kenya implements a retrenchment program for which funding has been pledged by the World Bank. Telkom must go digital, and become a leaner profit making institution before it can be privatised – and at present it can’t compete profitably in an open market while 60% of it’s budget is spent on salaries for its 20,000 workers. James Rege, the PS for Information confirmed that talks have taken place and a consultant will soon be hire to implement the scheme.
lost opportunity however Telkom is unlikely to be offered as much as the 380 million shillings it was offered by Mount Kenya Communications/Econet in 2001.
The February African Business also has lengthy stories on drug trafficking in Malindi/Mombasa and small-scale gold mining in Kakamega.
Fibre Optic Nairobi
As part of the first phase of a national fibre optic backbone, Kenya Data Networks (KDN) is installing a metropolitan fibre ring around Nairobi. They put a notice in the papers indicating that their crews around upper hill, community, westlands and the CBD may disrupt traffic, but they expect to have completed by March. Also, while 10 applicants applied to compete with Jambonet, only two, KDN and Jamii Telcom have paid the licence
Virgin Nigeria
UK billionaire Richard Branson recently launched Virgin Nigeria airline that will replace Nigeria’s national carrier, which ceased operations a few years ago. Virgin own 49% of the airline, and it will domestic, regional and international flights to the Far East. Nigerian investors own 51%, and the airline enjoys the support of the Nigerian government and public, so far. However an application to fly the Lagos-New York was turned down by American authorities, because of Virgin’s opposition to allowing more American flights to Britain’s Heathrow. Meanwhile, Continental Airlines (American) is due to begin flights to Lagos in April.
Ethiopian vs. Kenyan airlines
Ethiopian Airlines, Kenya Airways (KQ) nemesis has placed an order for 10 Boeing 7E7 Dreamliners, a concept jet that will be created in the next few years. The ‘order’ worth 1.3 billion, comes as KQ has bet its future on the tried and tested 777 – Kenya was the first African country to fly the aircraft, and Ethiopian have since ordered some, and have now upped the stakes. Will KQ, who also have a mostly Boeing fleet follow suit? . Ethiopian also has a code-share agreement with South African Airways, KQ’s other major business rival.
Last month a Nairobi citizens group WECANDOIT (We Care About Nairobi DO IT) filed a lawsuit accusing the Nairobi City Council of (i) NCC has not provided services to Nairobi (ii) NCC’s move to raise its rates in 2005 was done illegally
The lawsuit was field through the organizations Justice Fund that is now appealing to Nairobians for financial support. The timing is unfortunate since the KUJ misused donations and sponsor money last week and is still a hot topic. However cash/check donations can be made to “we can do it” - kinanda@wananchi.com, P. O. Box 14170-00800 Nairobi Telephone: 521828/9 [bank account: CFC 670012514]
Nakumatt over-expanding?
As Uchumi has sunk ever deeper into debt and losses (financial and customers) the Nakumatt chain has grown by adding new lines such as automotive, housing, cars, furniture into their supermarkets – and making their brand “all under one roof.” But of late Nakumatt has added new stores in Nairobi such that they may fall into the trap of Uchumi where new stores eat into old store sales. There are now two Nakumatt’s on Ngong Road (within two kilometres of each other. And with two Nakumatt’s on Kenyatta Avenue and signs of a third one going up on Moktar Daddah street (between Jevanjee and K street), to be known as "Nakumatt Lifestyle", there will be three Nakumatt’s in downtown Nairobi within a square kilometre of each other.
Kenya losing the peace dividend in Sudan
The Sunday Standard (Feb 6) identified how in-fighting and incompetence at the Kenyan Ministry of Foreign Affairs will lead to Kenyan companies losing business opportunities in the new Sudan to other countries. Britain and Denmark now have liaison offices in Southern Sudan, and South Africa has launched a massive program to bring their businesspeople to both Khartoum and Rumbek.
EABL cross listing
East African Breweries, who are the pre-eminent presence on the Nairobi Stock Exchange, have announced plans to also be listed on the Dar es Salaam stock exchange in a few months. Kenya Airways was the first company to do this, late in 2004, and its stock price doubled within weeks as Tanzanian investors bought into the stock. Will this happen to EABL? They did a 5:1 stock split late in 2004 that made their high-flying share price (500+ shillings a share) more affordable. It now trades at about 100 shillings/share.
My take on Corruption is that, it is clear and present danger and it will continue for decades to come, unless Kenyans change their thinking regarding corruption. To understand the prevalence of corruption today, it is useful to look at the corruption of years past (Moi years) - from which one can see that (i) there are no consequences of corruption to a minister - no Minister who had corruption allegations about him ever lost a parliamentary seat or was charged in court/resigned, and if they were voted out/sacked it was for reasons that had nothing to do with corruption. (ii) That Kenyans care more about development, In fact such ‘tainted’ ministers brought more development to their constituents than their less controversial counterparts (iii) therefore Ministers today expect Kenyans to be as docile about corruption as they were during Moi days and wait for development. (Kibaki to Ndwiga: kwani umekula mbuzi yanani?)
So perhaps the Government, perhaps rightly feels, that development matters more to voters than corruption – and voters rarely see the correlation between corruption and their lives. While they applauded Ministers who build hospitals and roads, they failed to realise that corruption left their hospitals without medicine, and their new tarmac roads soon collapsed as they were sub-standard.
Githongo resigned because he was serving a Government that had no interest in his work or and was in fact sabotaging his work (they actually cancelled his anti-corruption office in the 2004 reshuffle before restoring him hours after diplomats raised a fuss)
Following Gladwell Otieno and John Githongo, next to resign should be Mutava Musyimi, the entire Constitution Review Committee, Ali Mwakwere, and we should give Ringera time to prove whether he’s serving Kenyans or paying lip service.
Also to resign should be the public communications (propaganda) secretary, Dr. Alfred Mutua. The real government spokesman, with the access, and authority to speak for the president, is the less eloquent, but all-powerful Amb. Francis Muthaura. He issued a statement accepting Githongo’s resignation from State House, while Dr. Mutua issued a statement on a vague radio station implying that Githongo had left for greener pastures. You can catch Dr. Mutua wax poetic on Citizen TV on Saturday afternoon
Gor Sunguh, Chairmn of the Ouko Parliamntary Committee has announced that the committee would travel to London (at our expense of course) to hear the testimony of Inspector Troon. He said that a video conference of the witness (at 400,000 an hour) was too expensive and that Kenya could not guarantess Troon’s secutiry. Considering what happened to State guest, Ngugi wa Thiongo, last year, I would not blame him. But Sunguh’s excuse is lame – video conferencing is not that expenseive, and it is being used by immigrants to see/talk to family members to communicate with family members. The Committee will probably blow out their budget with hotel, per diems, entertainment, and special sitting allowances. Cmmittee members who have otherwise boycotted the hearings or resigned will probably take this trip. The committee should insist on hearing Troon here, by having the Police take charge of his security – instead of taking an expensive London holiday (what if he resused to talk to them?)
Meanwhile the MP of Bumula, Mr. Wakoli Bifwoli stumbled upon a meeting and vowed not to sign any future loan agreements with the World Bank, arguing that his constituency was one of the most underdeveloped in the country. "Bumula remains underdeveloped, with little economic activity, and my people are poor.”
Kenya Commercial Bank will sponsor the 2005 Kenya national rally series, which will cover nine events, including the Kenya, round of the African Rally Championship – which will be called the KCB Safari and be held on July 16-17. The Bank’s Chairlady, Mrs. Susan Mudhune, presented a cheque for Kshs. 18.5 million to Kenya Motorsports Limited/Kenya Motorsports Foundation at the Carnivore on Feb 3.
All jobs appear in the Nation of Friday February 4, 2004 – please see it for comprehensive requirements, details and contacts for these jobs.
ICDC Investments
(1) Finance Manager/Company Secretary (REF FM/CS-001)
Requirements are business degree and 3 years experience in financial management/audit/accounting and 2 years exp in company secretary work, also CPA (K) and CPS (K)
(2) Investment Manager (REF: IM-001)
Business university degree, 2 years financial analysis experience, investment banking, corporate finance, consulting, MOA would be an advantage. Also qualification like CFA, CPA, ACCA or CIMA
Apply by Feb 25 to Managing Director, ICDC Investments Co. Ltd., P. O. Box 10518-00100 Nairobi or jobs@icdci.co.ke
Internal Auditor: Jubille Insurance Company
Bachelors degree, CPA/ACCA or equivalent and five years audit management experience
Apply by Feb. 22 to The Group Human Resource Manager, The Jubille Insurance Co. Ltd, P. O. Box 30376-00100 Nairobi or personnel@jubileekenya.com
Finance and IT Director: Cadbury Kenya (REF: F/ID/05)
Must have b.com degree with ACCA or CPA - an MBA would be an advantage. Also must have six years experience in strategy/analysis
Apply by 18 Feb. 2005 to Executive Selection Division, KPMG Kenya, P. O. Box 40612-00100 Nairobi or esd@kpmg.co.ke
Propert Manager: For a leading agriculture based corporation in Nairobi
Must have land economics degree, and a clear understanding of property management, and be a Kenyan aged 30-45
Apply by Feb. 18 to DNA 77. P. O. Box 49010-00100 Nairobi
Power Engineer/Operations Officer: The World Bank Africa Energy Unit, based in Nairobi Kenya (one year consultant contract)
Must haves 5 years experience and MSc in electrical engineering (or equivalent) or BSc in electrical and postgraduate degree in business or economics. Also knowledge of power sector and ability to collaborate with government and NGOs.
Quoting “Application for Power Engineer/Operations Officer,” apply by Feb. 25 to Country Director, World Bank – Kenya, P. O. Box 30577-00100 Nairobi or infoke@worldbank.org
Bank profits lower in 2004
Banks have started to report their 2004 results: At First American Bank (owned by Sameer investments), despite a sizeable drop in net interest income, managed to increase its pre-tax profit by 43% - from 150 million to 214 million (a 43% increase), thanks to increased other income (commission and fees). This will be the situation at most bank as the low interest rates forced them to seek non-traditional income streams in 2004.
KPA crisis
Staff are on a go slow to protest the treatment of their (suspended/not-suspended but barred from the premises) MD, Mr Brown Ondengo, as well as non-payment of a promised bonus.
Mukhisa vs. Bretton Woods
At the Davos World Economic Forum, Minister Mukhisa Kituyi has urged the World Bank & IMF to stay away from global trade negotiations, and leave them to the World Trade Organization (Standard Feb 4)
Nairobi-Miami Flights on Hold
Titus Naikuni, the Kenya Airways MD now says that Kenya Airways will not be flying to Miami, saying “he does not see a commercial justification for it at this point in time” (Standard Feb 4)
A380 Welcome in Nairobi
Meanwhile the Managing Director of the Kenya Airports Authority, Mr. George Muhoho, said that Jomo Kenyatta Airport would be able to receive the new Airbus A380 giant double-decker aircraft in Nairobi when it begins operations, he said, “a suitable passenger bridge has been identified, and lounges will be redesigned to accommodate departing passenger. Also the runway and taxiways will be strengthened and widened.” (Nation Feb 3)
We are primitive tribes (in 2005) fighting over water and cattle: “IT WAS a great war. We killed many people with our spears and bows and arrows,”
According to Jaindi Kisero, the Nation business editor, many local companies are doomed to fail if they continue using overdrafts and short-term borrowing for their long term plans (as the the Hillcrest schools apparently did). It is a result of the failure of Kenyans to develop appropriate sources of capital for growth such as long-term loans or taking in new shareholders.
Of late Safaricom leave me feeling ripped off. Their increase their already high tariffs, citing costs, even as they double their profits each year. In 2003 they were Kenya’s biggest tax payer – bigger than EABL or any oil company. They keep coming up with new services that mostly serve post-paid customers, while I’m sure the vast majority of their customers use pre-paid. In the last year, they have stopped their 2 shilling SMS, and late night (after 11 p.m.) cheap calls - as they roll out Safaricom online, Safaricom Office, stock exchange updates from GET iT 411 etc.
My beef mostly started with what Kenyan Pundit said about the inner-workings of the company. For some reason, I can’t use my Telkom calling card from my Safaricom (who are 60% by Telkom) cell phone, I have to find a phone booth to use it FREE.
Still, I’m getting my sister a phone line next week, and it will be Safaricom because most of her friends have Safaricom numbers, and hence it will be cheaper for her to communicate.
I don’t know if Celtel is better, but I’d like to have a choice of five or more mobile companies one day (true competition) I am yet to use simu ya jamii, but it appears that’s what Safaricom wants me to do.
Dr. Alfred Mutua clearly needs to be re-directed. The problem is that he does not speak for the president, the government or his minister – he has to hunt for news to give at his press conference, and he ducks controversial topics because he knows as little as the public that he’s informing.
The President, diplomats, Minister’s and for the most part the public at large do not take him seriously. Plus in Kenya, if you stick a camera before anyone’s face, for the most part anyone can give a press conference – a chief who has confiscated bhang or arrested a witchdoctor does not feel that he needs someone else to explain his heroics – he can explain it to KTN himself. But like other officials e.g. allegations of corruption, it is not in his nature to resign – he feels he has done nothing wrong – so he’ll continue to have the government cut a large check for him each month. And there’s no one to rescue him from a job that is harming his credibility and future. How will appear in history books?
Anyway I have some advice for him so he does not slide into irrelevance and have to be nudged out like Dee Dee Myers, Clinton’s first (female) press secretary, who was clearly overwhelmed by the job
(1) Somehow get close to someone, powerful who’ll get your access to the president (last year it was Amb. Muthaura, this year it appears to be the First Lady)
(2) The president is the one person Kenyans want to hear from, and he’s mostly silent i.e. he needs an articulate spokesman (you) to communicate on his behalf- convince him that you are that person
(3) Insist on attending cabinet meetings, or that you are briefed immediately after and/or receive minutes of each cabinet meeting – and read the Kenya gazette, foreign press and street tabloids
(4) Now that you’re a State House insider, throw your weight around; ask minister’s to desist from making statements at rural rallies, ask them to check with you before making policy statements (which you are supposed to coordinate) - tell them investor’s don’t like confusion created y minister’s who contradict each other. And above all don’t be afraid to contradict a Minister.
(5) Give a press conference every day. Answer all question’s posed by the media – there’s nothing wrong with saying “I can’t comment on that” “I’ll get back to you,” or “I have no information” or even “I was not in the RAV4” – but above all don’t avoid the press. If you have no news that day, reporters will provide the questions and, you might make the news. E.g. PS Kinyua did not mean to criticize extravagant ministers last week - he was at an NSE function, and was responding to a journalist’s question, – still it became the business news story of the day. So answer question’s that the public wants to know about e.g. Ndwiga, NARC elections, corruption, the Constitution,
In short, become the White House spokesman for Kenya. George Bush rarely give press conferences, but the White House spokesman/communications director appears each day, and answers questions on Congo, Kazakhstan, Tax cuts, abortion etc. – Taking flak for his inarticulate boss. The job is distasteful, and you might get fed up with the lies, bile, backstabbing – which is why most press secretaries tend to burn up and resign before their boss’s term ends.
Faster cheque clearing
Omingo Magara, a Kenyan MP, and an institution known as Accountability International are lobbying to expedite clearing of cheques at Kenyan Banks from the current four (working) days to 24 hours in an initiative known as “T+1”
Who wants to be a billionaire?
Stanbic (Standard Bank of South Africa) and Equity Bank have both raised their share capital recently. Stanbic by a $10 million capital injection and Equity by converting 725m in deposits into shares. Stanbic was disclosed fully in South Africa as they intend to diversify into new areas; however the Equity is a bit strange troubling for its new shareholders. The mode of conversion is similar to what Daima is attempting - what will happen if any of Equity’s 2,216 depositors wants to dispose of their shares? (The shares are expected to be floated on the Nairobi Stock Exchange by June 2005
Utility Service (Water Bills)
Kenyan can now pay their bills at branches of Co-operative Bank – just take your water bill and the cash payment, or you can have the amount automatically deducted from your C-op account. However with their long lines in the banking halls, and especially at their ATM’s, Co-op seems to be biting off more than they can chew. They may need to review their account requirement to ensure better service to the customers they desire.
Hillcrest Schools to be sold
Hillcrest School and Hillcrest Secondary School will be sold to settle a Kshs. 620 million loan to Barclays Bank according to the Nation (Feb 1). The Receiver Manager, DCDM firm will sell the school as a going concern and the new owner will have to grapple with high costs at the schools, including a monthly salary bill of Kshs 16 million at one school.
1. Head of Marketing Stanbic Bank Uganda
Must have good undergrad degree in marketing or related business (CIM qualifications an advantage). Also must have relevant marketing experience in a bank or large commercial enterprise as well as an understanding of brand management.
Apply by Feb. 11 2005 to Head of Human Resource, Stanbic Bank Ltd, 6th Floor Crested Towers – Short Tower, P. O. Box 7131, Kampala Uganda. (The East African)
2. Managing Director Jomo Kenyatta Foundation (they fired the previous MD late in January)
Must have a bachelor’s degree, be versatile in IT, familiar with the education sector and have experience managing a large organization. Apply by Feb. 11 to Chairman, Staff Recruitment Committee P. O. Box 30533-00100 Nairobi.
3. Finance Manager (for a midsize cellular distributor)
Must have at least five years managing cash operations. Salary is 120,000 shillings p.m. and a company vehicle is provided. Apply by Feb. 14 to P. O. Box 45897-00100 Nairobi.
Having taken a few days off and with a car in for repairs, I am getting a new perspective on the Nairobi transport system and here are my findings (ranking by *stars *)
Car ****
Despite the high fuel and running costs (licensing, finance, insurance, maintenance), having one’s own car is still the best way of travelling around Nairobi despite. A personal car gives one the freedom to stay out late at night, and visit parts of town not served by public transport.
Pro: Go wherever, whenever you want – if you have a reliable car, and a model not desired by thieves
Con: Very frustrating driving during rush hour, with some people spending two hours PER DAY in traffic.
Verdict: Nairobi is too congested, with few roads added in 20+ years – so pick your driving times, office and house location, carefully to beat traffic jams.
Metro Shuttle ****
A novel concept that has revived the larger matatu sector that had almost been finished off by Nissans. Staff and service are still very good though some vehicle starting to age.
Pro: comfort and service still the best in public sector
Con: High-ticket prices and too few routes served
Verdict: need more routes – in fact all Bustrack (KBS) should convert to metro shuttles
Nissan matatu’s (14 seats) ***
Appears to be the second most common vehicle in Nairobi, after the Toyota Corolla and responsible for about 90% of the bad image in the matatu sector.
Pro: they will come to your doorstep when they are looking for passengers in the morning.
Con: change fares and routes according to traffic patterns, uncomfortable as they drive up on pavements, footpaths or the wrong side of the road to jump traffic queues.
Verdict: Quickest way around town, ferrying passengers who sit like innocent sheep as their driver break every known traffic law.
Big matatu’s (25 seats) ***
Pro: generally more comfortable than Nissans – bigger seats, more cargo and legroom
Con: take longer to fill than smaller Nissan, and also drive slower
Verdict: Expect to see more of them, as they are more profitable to operate than Nissan’s. General Motors Kenya has had record sales of Isuzu matatu’s since the Michuki rules were introduced.
City Hoppa **
New kid on the block, whose mandate seems to be to frustrate KBS
Pro: access to city centre (Kencom and Ambassador)
Con: Greed - they installed school-bus size seats in a 3 X 2 formation and with little leg-room (it’s impossible to stand upright between rows)
Verdict: They seem to shadow KBS buses, arriving at bus stops simultaneously – and passengers usually prefer to board City Hoppa
Taxi **
Transport model favoured late at night and by short-term visitors (tourists) who think and dollar terms and proclaim how cheap taxi’s are in Nairobi
Pro: they are so many of them - choking prime parking spots in town
Con: inconsistent pricing, some are really old vehicles
Verdict: needs some Michuki rules to regulate prices and ensure that all taxis are roadworthy
Bustrack (Kenya Bus)*
Old faithful is getting really long in the tooth - I am yet to see a new bus model in the last five years (even thought they have KAP plates)
Pro: serve the city centre; Nairobian’s are still loyal
Con: old rickety, noisy buses, you’re afraid they won’t climb some hills
Verdict: they also responded to Michuki rules by squeezing in an extra column of uncomfortable seats thereby making the ride even worse. They will launch some new double decker buses soon, but they should scrap this old fleet and re-discover
Tuk tuk (three wheel scooters) --
This concept imported from India by Klubhouse and some taxi companies
Pro: cheaper than a taxi?
Con: slow, smoky dangerous
Verdict: Overtaken by ten drivers a minute five of who almost run you over. Washindwe!
Passenger trains (Kenya Railways) --
Pro: not enough known
Con: sitting on a roof or hanging on doors can lead to injury
Verdict: passengers seem to only remember them whenever matatu’s go on strike
Other modes of transport are walking or cycling.
Walking: Is mostly and good for your heart, but not your health – because you need an MJ like mask to filter the smoke and dust, and also you’re very likely to be mugged or worse
Cycling: Would be the best option for majority of Nairobians if (i) special bicycle paths/pavements were set-up alongside major roads (ii) more bicycles with gears were made available cheaply – except in Western Kenya, the typical bicycle rider is not able to climb a hill with the typical black mamba bike that is common to Nairobi (iii) dedicate police to reduce mugging and prevent matatu’s from using bicycle paths
