Citibank N.A. Kenya 25.1 billion assets
Citibank’s overall performance dipped significantly compared to 2003 – the bank returned a profit after tax of 124 million, down from 524 million the year before. Citibank earned 350 million less from government securities, other income reduced by 80 m and the provisions for bad debts increased by 50 m – all contributeing to its drop from 2003 numbers despite reducing its staff costs from 602 to 465 million during the year. The Bank had customer deposits of 19.5 billion which it invested as loans - 9.6 billion and government securities – 4 billion (down from 9.3b in ’03) Citibank ended the year with a huge cash position - 8.1 billion placed in other banks and 2.1 billion in their accounts.
Dubai Bank 0.9 billion assets
The Bank ended the year with customer deposits of 477m and loans of 550m. Shockingly the bank has interest income of 127 m and interest expense of only 2 million – leading to 126 million in net interest income – don’t their depositors care about interest?
Bank of Baroda 8.3 billion assets
The bank had customer deposits of 7.1 billion, customer loans of 2.7 b and government securities of 4.6 b. The Bank ended the year with profit after tax of 202 million, which was up from 97m in 2003.
Habib Bank AG Zurich 4.45 billion assets
The Bank increased its customer deposits from 3.4 to 3.8 billion – and advanced 1b in customer loans, 2b in government securities. Profit after tax was 39 million, down from 53m in 2003.
Middle East Bank Kenya 4 billion assets
The Bank increased its customer deposits from 2.4 to 3 billion – and had customer loans of 1.6 b, with 1b placed in other banks. It had net interest income of 135 million, but a foreign exchange loss of 7 m (2003 gain was 35m) contributed to a 60% reduction in net profit for the year – 23 million (down from 56m profit in 2003).
Oriental Commercial Bank 1.6 billion assets
formerly Delphis Bank, and before that BCCI
The Bank’s position worsened this year with a pre-tax loss of 368 million (268 million after tax) compared to a 230 million loss in 2003. The Bank had no net interest income in 2004 (a loss of 627, 000 shillings) compared to 31 million in 2003. Also the insider loans position changed from 521m in ‘03 to 12 m in 2004 and the Bank had to provide 295 million for bad debts during the year – leaving a total non –performing portfolio of 1.12 billion.
Thursday, March 31, 2005
Football Accounting 101: 1 + 1 + 1 – (20%) = 1
Even as Kenya defeated Botswana in a World Cup soccer qualifier on Saturday, a war was being waged by three organizations over who would count and take charge of cash raised from tickets sold at the game.
Can’t wait for 2007
• Parliament met for 120 days last Session, discussed and passed a total of 12 bills. Of these, three were returned by President Kibaki, citing various anomalies and asking Members to scrutinise them afresh. During that period, South Africa's parliament, for example, passed 38 Bills, while Tanzania's disposed of 24.
• It is now common knowledge that Kenya's Parliament is among the poorest performers within the Commonwealth.
• The delay in the process of legislation begins when some committees take too long to return their reports to allow for publication and subsequent tabling in Parliament for debate and adoption.
• MPs performed poorly last week. Having been out on recess for three months, it was a shame that quorum lacked three times on the Tuesday, the first day of House business. This must change if MPs are to justify their keep.
• It is now common knowledge that Kenya's Parliament is among the poorest performers within the Commonwealth.
• The delay in the process of legislation begins when some committees take too long to return their reports to allow for publication and subsequent tabling in Parliament for debate and adoption.
• MPs performed poorly last week. Having been out on recess for three months, it was a shame that quorum lacked three times on the Tuesday, the first day of House business. This must change if MPs are to justify their keep.
Tuesday, March 29, 2005
Who’s Who?
If Minister has 750 million shillings in a single bank account abroad, and Transparency International won’t say who it is, and the Kenya Anti-Corruption Commission won’t investigate, and parliamentary wealth declarations are kept secret, perhaps we can figure out who he/she is by logic.
Clear
1. Anyang Nyongo – not in this league
2. Linah Jebii Kilimo – not in this league
3. William Ole Ntimama – not in this league
4. Kalonzo Musyoka – not in this league
5. Maurice Dzoro – not in this league
6. Raphael Tuju – not in this league
7. Musikari Kombo – not in this league
8. Newton Kulundu – not in this league
9. Ochillo Ayako – not in this league
10. Charity Ngilu – not in this league
11. Joseph Munyao – not in this league
12. Martha Karua – not in this league
13. Ali Chirau Mwakwere
Long Shots
14. Kiraitu Murungi – not in this league
15. David Mwiraria – not in this league
16. Simeon Nyachae – has the money, but invests visibly in Kenya
17. John Michuki - has the money, but invests visibly in Kenya
18. Raila Odinga – he would have been named
19. Moody Awori –
20. Najib Balala -
21. Njenga Karume – has the money, but invests visibly in Kenya
22. Amos Kimunya -
Short List
23. George Saitoti – probably the wealthiest Minister
24. Chris Murungaru – fabulous nouveau riche
25. Mukhisa Kituyi – fabulous nouveau riche
26. Kipruto arap Kirwa – fabulous nouveau riche
27. Njeru Ndwiga
28. Mwai Kibaki
Clear
1. Anyang Nyongo – not in this league
2. Linah Jebii Kilimo – not in this league
3. William Ole Ntimama – not in this league
4. Kalonzo Musyoka – not in this league
5. Maurice Dzoro – not in this league
6. Raphael Tuju – not in this league
7. Musikari Kombo – not in this league
8. Newton Kulundu – not in this league
9. Ochillo Ayako – not in this league
10. Charity Ngilu – not in this league
11. Joseph Munyao – not in this league
12. Martha Karua – not in this league
13. Ali Chirau Mwakwere
Long Shots
14. Kiraitu Murungi – not in this league
15. David Mwiraria – not in this league
16. Simeon Nyachae – has the money, but invests visibly in Kenya
17. John Michuki - has the money, but invests visibly in Kenya
18. Raila Odinga – he would have been named
19. Moody Awori –
20. Najib Balala -
21. Njenga Karume – has the money, but invests visibly in Kenya
22. Amos Kimunya -
Short List
23. George Saitoti – probably the wealthiest Minister
24. Chris Murungaru – fabulous nouveau riche
25. Mukhisa Kituyi – fabulous nouveau riche
26. Kipruto arap Kirwa – fabulous nouveau riche
27. Njeru Ndwiga
28. Mwai Kibaki
2004 Bank Round-Up
Investment & Mortgages Bank (I & M)
The Bank increased its after tax profit to 255 million (up from 195 million) It had customer deposits of 11.6 billion (up from 10.1 b) and advanced 8.2 billion in loans to customers (up from 5.3b). It’s net interest income increased 217 million (up from 160) and staff costs increased to 217 Million (from 160m) but which was probably offset by an increase in rental income when the Standard/KTN Group moved into the Bank’s I&M Towers (other income increased from 57 to 116 million)
Equity Bank (formerly Equity Building Society)
Equity is on an expansion binge to correct an anomaly according to their MD James Mwangi, who has expressed a desire to expand the Bank’s loan book to increase income. The bank has 5 billion in customer deposits, but has only advanced 2.87 billion to customers – at year end they had 1.9 billion at other banks and 580 million in government securities. Net interest income was 396 million (up from 257m), while other income was 640 (306m) - staff costs were 286 million (up from 167 million)
Commercial Bank of Africa (CBA)
The Bank which this month announced a merger with sister Bank, First American, ended the year with a net after tax profit of 282 million, which was down from 380 million in 2003. Despite having customer deposits of 17.6 billion (up from 15 billion) the bank only has advanced of 5.3 billion as loans to customers (up from 4.3 billion) – it ended the year with 5.5 as cash in other Banks and 6 billion in government securities (down from 8.5) The Ban earned 401 million in net interest income, 304 million from government securities and 312 million from commissions.
Akiba Bank
Akiba Bank is only the second major bank to record a loss in 2004 (after Fina Bank) still the loss of 42 million was a vast improvement from a 550 million loss the bank reported in 2003. Its main problem is non-performing loans as the Bank had to provide 153 million for bad debts (877 million in 2003) .The Bank has 3 billion in deposits and 2.3 billion in customer loans.
Guardian bank
Another bank with a huge bad loan book is Guardian Bank. The Bank ended 2004 with a profit of 36 million ((37 m in 03) and it has customer deposits of 3.2 billion and loans of 2.5 billion – however the Bank has a total non-performing loan portfolio of 910 million.
The Bank increased its after tax profit to 255 million (up from 195 million) It had customer deposits of 11.6 billion (up from 10.1 b) and advanced 8.2 billion in loans to customers (up from 5.3b). It’s net interest income increased 217 million (up from 160) and staff costs increased to 217 Million (from 160m) but which was probably offset by an increase in rental income when the Standard/KTN Group moved into the Bank’s I&M Towers (other income increased from 57 to 116 million)
Equity Bank (formerly Equity Building Society)
Equity is on an expansion binge to correct an anomaly according to their MD James Mwangi, who has expressed a desire to expand the Bank’s loan book to increase income. The bank has 5 billion in customer deposits, but has only advanced 2.87 billion to customers – at year end they had 1.9 billion at other banks and 580 million in government securities. Net interest income was 396 million (up from 257m), while other income was 640 (306m) - staff costs were 286 million (up from 167 million)
Commercial Bank of Africa (CBA)
The Bank which this month announced a merger with sister Bank, First American, ended the year with a net after tax profit of 282 million, which was down from 380 million in 2003. Despite having customer deposits of 17.6 billion (up from 15 billion) the bank only has advanced of 5.3 billion as loans to customers (up from 4.3 billion) – it ended the year with 5.5 as cash in other Banks and 6 billion in government securities (down from 8.5) The Ban earned 401 million in net interest income, 304 million from government securities and 312 million from commissions.
Akiba Bank
Akiba Bank is only the second major bank to record a loss in 2004 (after Fina Bank) still the loss of 42 million was a vast improvement from a 550 million loss the bank reported in 2003. Its main problem is non-performing loans as the Bank had to provide 153 million for bad debts (877 million in 2003) .The Bank has 3 billion in deposits and 2.3 billion in customer loans.
Guardian bank
Another bank with a huge bad loan book is Guardian Bank. The Bank ended 2004 with a profit of 36 million ((37 m in 03) and it has customer deposits of 3.2 billion and loans of 2.5 billion – however the Bank has a total non-performing loan portfolio of 910 million.
Job Watch
Anon company:
Finance & Administration Manager FKE/ES/09/05
Must have 10 years experience in finance, 5 of which as head of finance & accounts department in a commercial company. Also, applicants must be aged between 35 – 45, have a bachelors of commerce degree, CPA qualification and have a good knowledge of government and donor financial reporting systems.
Apply by 12th April to fke@wananchi.com to the Executive Director, Executive Search and Selection, Federation of Kenya Employers, P. O. Box 48311-00100 Nairobi
A public sector Corporation is looking to fill the following positions:
Economist EC/01
Must have post graduate degree in economics and at least 4 years experience in macro-economic research. Applicants must also have a professional qualification in accounts or finance
Financial Analyst FA/01
Must have post graduate degree in finance, and 4 years experience in financial analysis, with excellent research skills
Internal Auditor IA/01
Must have bachelor’s degree in accounts or finance and also be a fully qualified accountant with 5 years audit experience
Management Information Systems (MIS) Officer IT/01
Must have computer sciences or MIS degree with 5 years experience (2 of which at management level)
Apply by April 15th to eyrecruit@ke.ey.com or Ernst & Young Recruitment Advisory Services, P. O. Box 44286-00100 Nairobi
Finance & Administration Manager FKE/ES/09/05
Must have 10 years experience in finance, 5 of which as head of finance & accounts department in a commercial company. Also, applicants must be aged between 35 – 45, have a bachelors of commerce degree, CPA qualification and have a good knowledge of government and donor financial reporting systems.
Apply by 12th April to fke@wananchi.com to the Executive Director, Executive Search and Selection, Federation of Kenya Employers, P. O. Box 48311-00100 Nairobi
A public sector Corporation is looking to fill the following positions:
Economist EC/01
Must have post graduate degree in economics and at least 4 years experience in macro-economic research. Applicants must also have a professional qualification in accounts or finance
Financial Analyst FA/01
Must have post graduate degree in finance, and 4 years experience in financial analysis, with excellent research skills
Internal Auditor IA/01
Must have bachelor’s degree in accounts or finance and also be a fully qualified accountant with 5 years audit experience
Management Information Systems (MIS) Officer IT/01
Must have computer sciences or MIS degree with 5 years experience (2 of which at management level)
Apply by April 15th to eyrecruit@ke.ey.com or Ernst & Young Recruitment Advisory Services, P. O. Box 44286-00100 Nairobi
Saturday, March 26, 2005
Kenya: Little progress made towards MDG
2005 is a make or break year for Kenya, and future elections are to be won or lost on the MDG platform.
In: Wangari, Out: Wolfowitz
US Civil Rights leader, Jesse Jackson, proposes Wangari Maathai, Nelson Mandela, or some other leader from a poor nation to the head the World Bank – not Paul Wolfwitz
New UN
Kofi Annan has proposed some radical changes in order for the United Nations to be more relevant in today’s world.
- He is calling for an expansion of the Security Council, so that it better reflects the global realities of today
- The Commission on Human Rights would, he proposes, be replaced by a smaller human-rights council, on which it would be harder for tyrants to get seats.
- The UN would agree a definition of “terrorism”, which would be incorporated in a new anti-terror treaty.
- It would also adopt clearer principles on when military force is justified.
- Mr Annan has also called on the UN to embrace the principle that member countries have a “responsibility to protect” civilians suffering atrocities when their own government is failing to act.
- Annan asks every developing country (Kenya) to adopt and begin to implement, by next year, a comprehensive national strategy bold enough to achieve the Millennium Development Goals by 2015; and to mobilise all its resources behind that strategy.
- He also asks developing countries (Kenya) to improve their governance, uphold the rule of law, combat corruption and adopt an inclusive approach to development, making space for civil society and the private sector to play their full part. The challenge of development is too big for governments to face it alone.
- On reducing world poverty: "There is no longer any excuse for leaving well over a billion of our fellow human beings in abject misery. All that is needed is some clear decisions by the governments of both rich and poor countries."
- Asks every developed country to support these strategies, by increasing the amount it spends on development and debt relief, and doing whatever it can to level the playing-field for world trade. Specifically, to commit themselves, this year, to complete the Doha round of trade negotiations no later than 2006, and as a first step to give immediate duty-free and quota-free market access to all exports from the Least Developed Countries.
How will Kenya vote at a Special Summit of the General Assembly in September to approve the reform package? A 2/3 majority will be required to approve the most weeping reform package in the history of the UN - Of course any reforms will be dependent on the United States and without Washington's assistance, Annan is sure to fail.
- He is calling for an expansion of the Security Council, so that it better reflects the global realities of today
- The Commission on Human Rights would, he proposes, be replaced by a smaller human-rights council, on which it would be harder for tyrants to get seats.
- The UN would agree a definition of “terrorism”, which would be incorporated in a new anti-terror treaty.
- It would also adopt clearer principles on when military force is justified.
- Mr Annan has also called on the UN to embrace the principle that member countries have a “responsibility to protect” civilians suffering atrocities when their own government is failing to act.
- Annan asks every developing country (Kenya) to adopt and begin to implement, by next year, a comprehensive national strategy bold enough to achieve the Millennium Development Goals by 2015; and to mobilise all its resources behind that strategy.
- He also asks developing countries (Kenya) to improve their governance, uphold the rule of law, combat corruption and adopt an inclusive approach to development, making space for civil society and the private sector to play their full part. The challenge of development is too big for governments to face it alone.
- On reducing world poverty: "There is no longer any excuse for leaving well over a billion of our fellow human beings in abject misery. All that is needed is some clear decisions by the governments of both rich and poor countries."
- Asks every developed country to support these strategies, by increasing the amount it spends on development and debt relief, and doing whatever it can to level the playing-field for world trade. Specifically, to commit themselves, this year, to complete the Doha round of trade negotiations no later than 2006, and as a first step to give immediate duty-free and quota-free market access to all exports from the Least Developed Countries.
How will Kenya vote at a Special Summit of the General Assembly in September to approve the reform package? A 2/3 majority will be required to approve the most weeping reform package in the history of the UN - Of course any reforms will be dependent on the United States and without Washington's assistance, Annan is sure to fail.
Friday, March 25, 2005
Corporate Briefs
Kenya Bus trouble
Kenya Bus Services is going through some turbulent times as creditors have tried to sell some of their buses during the busy Easter weekend. General Motors Kenya moved to Court to attach 17 Msafiri buses over a 198 million shilling debt, and last week Kenya Grange Vehicle Industries tried to ‘sell’ 10 of KBS newest vehicles (the double decker buses?) over a 6 million shilling debt – but both moves were halted by the Courts.
Braeburn (school) buys Hillcrest (school)
The Saga of the Hillcrest schools formerly owned by Kenneth Matiba’s Alliance Investments took a new turn when the schools were sold to the Braeburn Group to settle a Kshs. 620 million debt owed to Barclays Bank. Earlier this week MP’s and some lobby groups launched a campaign to urge the Government to save the Matiba group from predatory foreign banks
SMS Banking
National Bank has launched SIM-ple banking which will enable customers to check balances, verify salaries make utility payments and about 30 other services. This Nation article said that there’s a vast potential for mobile banking that is not being exploted. It’s probably due to the cost as both Prime and Co-operative banks already offer mobile banking at 30 shillings per SMS request, but the service is currently free at Dubai Bank .
No to a Strong Shilling
Central Bank has announced that it will move to weaken the Kenyan Shilling if it gets too strong against the US dollar. The shilling hit a 21-month high of 72.9, and bank forex dealers expect the dollar to fall below the 70-shilling mark soon. However a strong shilling makes Kenya’s principal exports like coffee, tea and flowers, more expensive
US: No to Africa
The US will not finance recommendations made in the Commission for Africa Report.
Interest Rates inch up
Barclays Bank base lending rate is now 13.75%. In 2003 lending rates at most banks were about10%. The new rates at major banks of 13 - 14% are still far below the 25 - 28% rates that they charged customers in the late 90's.
Kenya Bus Services is going through some turbulent times as creditors have tried to sell some of their buses during the busy Easter weekend. General Motors Kenya moved to Court to attach 17 Msafiri buses over a 198 million shilling debt, and last week Kenya Grange Vehicle Industries tried to ‘sell’ 10 of KBS newest vehicles (the double decker buses?) over a 6 million shilling debt – but both moves were halted by the Courts.
Braeburn (school) buys Hillcrest (school)
The Saga of the Hillcrest schools formerly owned by Kenneth Matiba’s Alliance Investments took a new turn when the schools were sold to the Braeburn Group to settle a Kshs. 620 million debt owed to Barclays Bank. Earlier this week MP’s and some lobby groups launched a campaign to urge the Government to save the Matiba group from predatory foreign banks
SMS Banking
National Bank has launched SIM-ple banking which will enable customers to check balances, verify salaries make utility payments and about 30 other services. This Nation article said that there’s a vast potential for mobile banking that is not being exploted. It’s probably due to the cost as both Prime and Co-operative banks already offer mobile banking at 30 shillings per SMS request, but the service is currently free at Dubai Bank .
No to a Strong Shilling
Central Bank has announced that it will move to weaken the Kenyan Shilling if it gets too strong against the US dollar. The shilling hit a 21-month high of 72.9, and bank forex dealers expect the dollar to fall below the 70-shilling mark soon. However a strong shilling makes Kenya’s principal exports like coffee, tea and flowers, more expensive
US: No to Africa
The US will not finance recommendations made in the Commission for Africa Report.
Interest Rates inch up
Barclays Bank base lending rate is now 13.75%. In 2003 lending rates at most banks were about10%. The new rates at major banks of 13 - 14% are still far below the 25 - 28% rates that they charged customers in the late 90's.
Bank Jobs
Managing Director: PostBank
Previous MD, Esther Koimett, was appointed the new Investment Secretary, and now the Kenya Post Office Savings Bank is looking for new managing director. The Bank is seeking a banking license to enable it to lend money to the public and also wants to sever its links to the Post Office network in Kenya.
Applicants must have bachelor’s degree in business, finance or accounts, with an MBA in Finance or Strategic Management. Also 5 years senior management experience in a bank, finance or micro-finance institution. Apply by April 8, ref MDBP/32/05, to esd@kpmg.co.ke or Executive Selection Division, KPMG Kenya, P. O. Box 40612-00100
Branch Manager: Transnational Bank
Reporting to the CEO candidate must be aged 35 – 45 years with professional banking qualifications as well as 7 years senior management experience (incl. 4 years in corporate credit)
Apply by April 1 to the Human Resource Manager, P. O. Box 75840-00200, Nairobi
Previous MD, Esther Koimett, was appointed the new Investment Secretary, and now the Kenya Post Office Savings Bank is looking for new managing director. The Bank is seeking a banking license to enable it to lend money to the public and also wants to sever its links to the Post Office network in Kenya.
Applicants must have bachelor’s degree in business, finance or accounts, with an MBA in Finance or Strategic Management. Also 5 years senior management experience in a bank, finance or micro-finance institution. Apply by April 8, ref MDBP/32/05, to esd@kpmg.co.ke or Executive Selection Division, KPMG Kenya, P. O. Box 40612-00100
Branch Manager: Transnational Bank
Reporting to the CEO candidate must be aged 35 – 45 years with professional banking qualifications as well as 7 years senior management experience (incl. 4 years in corporate credit)
Apply by April 1 to the Human Resource Manager, P. O. Box 75840-00200, Nairobi
Wednesday, March 23, 2005
Kenya Airways Says NO Miami
As he announced a new flight to China (Nairobi – Dubai – Shanghai), Senegal (Dakar), and other countries by August, MD Titus Naikuni stated that Kenya Airways not be flying to Miami. They received an invitation to fly there from the City of Miami, but after crunching their numbers, and looking at the competition KQ concluded that it would not make financial sense to fly to the US at the present time
Also a KQ workers union (Kenya Aviation & Allied Worker’s Union) issued a 21 day strike notice to the airline. So it’s possible that some workers at the airline may go on strike in mid-April.
Also a KQ workers union (Kenya Aviation & Allied Worker’s Union) issued a 21 day strike notice to the airline. So it’s possible that some workers at the airline may go on strike in mid-April.
Bank Round-Up
National Bank of Kenya
NBK’s net profit went down from 404 million to 383 million, mainly as a result of increased provision for bad debts - the bank provided 1.7 billion, up from 1.6 billion in 2003. The Bank has so far provided for 12 billion of its 17 billion bad debts portfolio.
The main component of their profit was an increase in foreign exchange income from 92 to 274 million. During the year loans to customers increased from 21 to 24 billion, and customer deposits increased from 20 to 22 billion. It is still not an efficient Bank – given that with assets of 30 billion, it only returned a profit of 300 million – and still can’t pay a divided as it must re-coup its losses of previous years first. The Bank received capital from the Government of 500 million, but has zero shillings in government securities. Shares in NBK are trading at 19 shillings (in the last year, low has been 13, & high has been 36 shillings) on the Nairobi Stock Exchange.
Transnational Bank
The most unusual result comes from TNBL where after tax profit increased 10X from 118 million to 1.04 billion in 2004. Customer deposit s more than doubled, from 523 million to 1.2 billion, while loans increased from 685 to 876 million. The staggering profit comes from other income of 837 million during the year - probably a write back as someone paid of a big political loan that had been written off.
Fina Bank
Fina is the only major bank, so far, to declare a loss for the year ended (42 million, down from a 75 million profit in 2003). The main component of the loss was an increase provision for bad debts from 88 to 205 million. Also staff costs and operating expenses increased by 33 and 50% respectively (both at about 130 m), while deposits and loans remained relatively unchanged at 5 and 2.6 billion respectively.
Stanbic
Standard Bank of South Africa, which was the only major bank to declare a loss in 2003 (104 million), turned things round in 2004 to return a profit of 118 million. It appears to have been saddled with some unprofitable loans in 2003, because in 2004, interest income increased from 183 to 368 million. Also it reduced is investment in government from 3.1 to 1 billion during the year, and shifted the funds to customer loans, which went up from 4 to 7 billion at the end of 2004; however deposits remained flat at 8 billion.
Development Bank of Kenya
DBK which is going to merge with HFCK, had a reduced profit during the year of 65 million, down from 92 million in 2003. Customer deposits decreased from 613 to 469 million. The bank which is supposed to be a development finance institution, doubled its investment in government securities from 646 million to 1.2 billion
NBK’s net profit went down from 404 million to 383 million, mainly as a result of increased provision for bad debts - the bank provided 1.7 billion, up from 1.6 billion in 2003. The Bank has so far provided for 12 billion of its 17 billion bad debts portfolio.
The main component of their profit was an increase in foreign exchange income from 92 to 274 million. During the year loans to customers increased from 21 to 24 billion, and customer deposits increased from 20 to 22 billion. It is still not an efficient Bank – given that with assets of 30 billion, it only returned a profit of 300 million – and still can’t pay a divided as it must re-coup its losses of previous years first. The Bank received capital from the Government of 500 million, but has zero shillings in government securities. Shares in NBK are trading at 19 shillings (in the last year, low has been 13, & high has been 36 shillings) on the Nairobi Stock Exchange.
Transnational Bank
The most unusual result comes from TNBL where after tax profit increased 10X from 118 million to 1.04 billion in 2004. Customer deposit s more than doubled, from 523 million to 1.2 billion, while loans increased from 685 to 876 million. The staggering profit comes from other income of 837 million during the year - probably a write back as someone paid of a big political loan that had been written off.
Fina Bank
Fina is the only major bank, so far, to declare a loss for the year ended (42 million, down from a 75 million profit in 2003). The main component of the loss was an increase provision for bad debts from 88 to 205 million. Also staff costs and operating expenses increased by 33 and 50% respectively (both at about 130 m), while deposits and loans remained relatively unchanged at 5 and 2.6 billion respectively.
Stanbic
Standard Bank of South Africa, which was the only major bank to declare a loss in 2003 (104 million), turned things round in 2004 to return a profit of 118 million. It appears to have been saddled with some unprofitable loans in 2003, because in 2004, interest income increased from 183 to 368 million. Also it reduced is investment in government from 3.1 to 1 billion during the year, and shifted the funds to customer loans, which went up from 4 to 7 billion at the end of 2004; however deposits remained flat at 8 billion.
Development Bank of Kenya
DBK which is going to merge with HFCK, had a reduced profit during the year of 65 million, down from 92 million in 2003. Customer deposits decreased from 613 to 469 million. The bank which is supposed to be a development finance institution, doubled its investment in government securities from 646 million to 1.2 billion
Business Brief's
Bye, Bad Cheques
It is now a criminal act to write a bouncing cheque in Kenya.
Bye, Makhtar Diop
World Bank Country Director, for Kenya, (and Eritrea & Somalia), Makhtar Diop will leave Kenya after his term ends on April 30. He will move on to Washington DC to work on term ends in April.
Faulu Kenya Bond
Micro-financier, Faulu Kenya launched a bond to raise 500 million shillings which will be used to expand its operations around the country.It is 75% guaranteed by the French Development Agency and was arranged by Stanbic Bank.
Former KWS Director wants $20 million
Evans Mukolwe has sued the Government for 1.6 billion shillings (US$ 20 million). He was unceremoniously dumped by Minister Tuju after the fiasco where the Kenya Wildlife Services recruited politically connected individuals.
It is now a criminal act to write a bouncing cheque in Kenya.
Bye, Makhtar Diop
World Bank Country Director, for Kenya, (and Eritrea & Somalia), Makhtar Diop will leave Kenya after his term ends on April 30. He will move on to Washington DC to work on term ends in April.
Faulu Kenya Bond
Micro-financier, Faulu Kenya launched a bond to raise 500 million shillings which will be used to expand its operations around the country.It is 75% guaranteed by the French Development Agency and was arranged by Stanbic Bank.
Former KWS Director wants $20 million
Evans Mukolwe has sued the Government for 1.6 billion shillings (US$ 20 million). He was unceremoniously dumped by Minister Tuju after the fiasco where the Kenya Wildlife Services recruited politically connected individuals.
Monday, March 21, 2005
Banking & Health Care: Parliament vs. President
During his December 2004 Christmas holiday, President Kibaki gave his assent to the few Bills that Parliament had passed during the year, with two notable exemptions – the Banking Bill and the Health Insurance Bill.
Now populist MP’s eager to show that they represent poor Kenyans are clamoring for a fight to see that these two bills are passed.
The president objected to the National Social Health Insurance Bill 2004, because of the monstrous cost of the plan. He indicated that it should be implemented in financially feasible phases. MP's are arguing that the rich (excluding themselves) should pay for the health care of the poor through taxes under the new scheme.
And his objection to the Banking (Amendment) Bill 2004, is because it contains a controversial clause known as the “in duplum rule” – which basically caps the amount that someone has to repay on a loan they default. I.e. if you take a loan of 1 million shillings and default on it, a Bank can only charge interest and penalties up to 1 million shillings – capping the amount you may be asked to repay at 2 million shillings. MP's insist that the clause will stop poor Kenyans from being ripped off by foreign Banks.
Under the current law, there are people who defaulted on 1 million shilling loans, and have paid several million in penalties, and still owe more million in penalties to the Bank. Donors and the major Banks and donor organizations have objected to the clause, insisting that a free market can set its own rates.
Now populist MP’s eager to show that they represent poor Kenyans are clamoring for a fight to see that these two bills are passed.
The president objected to the National Social Health Insurance Bill 2004, because of the monstrous cost of the plan. He indicated that it should be implemented in financially feasible phases. MP's are arguing that the rich (excluding themselves) should pay for the health care of the poor through taxes under the new scheme.
And his objection to the Banking (Amendment) Bill 2004, is because it contains a controversial clause known as the “in duplum rule” – which basically caps the amount that someone has to repay on a loan they default. I.e. if you take a loan of 1 million shillings and default on it, a Bank can only charge interest and penalties up to 1 million shillings – capping the amount you may be asked to repay at 2 million shillings. MP's insist that the clause will stop poor Kenyans from being ripped off by foreign Banks.
Under the current law, there are people who defaulted on 1 million shilling loans, and have paid several million in penalties, and still owe more million in penalties to the Bank. Donors and the major Banks and donor organizations have objected to the clause, insisting that a free market can set its own rates.
Big Story
The talk of the town this weekend was the apparent firing of Alfred Getonga, the President's Personal Assistant.
I saw the story on Nation TV story early in their news bulletin at 9 P.M. om Satudary night, then nothing since – i.e. a complete blackout. Did Nation TV goof, or has Getonga clawed his way back into office – and if so, who will he hold accountable for damaging his name in the business community?
I saw the story on Nation TV story early in their news bulletin at 9 P.M. om Satudary night, then nothing since – i.e. a complete blackout. Did Nation TV goof, or has Getonga clawed his way back into office – and if so, who will he hold accountable for damaging his name in the business community?
Building Societies Move into Banking
Two months ago, Equity Building Society converted into a Bank. And now there are more moves in the same direction:
East African Building Society
According to the East African newspaper, East African Building Society (EABS) will merge with Akiba Bank to form EABS Bank Limited. The new bank will have assets in excess of 10 billion shillings and 11 branches that operate Kenswitch ATM’s and Western Union money transfer locations.
Family Finance Building Society
In a rush to keep up with Equity Bank, FFBS has announced that they will not sell out to foreign investors who are keen to buy them. They also intend to convert into a Bank and float their shares on the stock exchange.
East African Building Society
According to the East African newspaper, East African Building Society (EABS) will merge with Akiba Bank to form EABS Bank Limited. The new bank will have assets in excess of 10 billion shillings and 11 branches that operate Kenswitch ATM’s and Western Union money transfer locations.
Family Finance Building Society
In a rush to keep up with Equity Bank, FFBS has announced that they will not sell out to foreign investors who are keen to buy them. They also intend to convert into a Bank and float their shares on the stock exchange.
Weeknd Wrap
This weekend, we had the first days of the long rains – and in typical KPLC, there were three blackouts during the day, including one just as the Malaysian Grand Prix started on TV at 10 a.m. – and almost making me abandon the family and dash to the bar on Sunday morning to watch.
Read that fuel prices in the UK are approaching £1 per litre (i.e. 143 shillings) per litre. In Nairobi fuel is around 70 per litre. If the price doubled, we’d have riots.
According to the Sunday Standard, barter trade is still common in Western Kenya (Kisii) where maize or millet are exchanged for organic salt (which is used as a salt lick for livestock and for cooking)
Breaking News (the Onion): Neverland Ranch investigators discover corpse of real Michael Jackson
Read that fuel prices in the UK are approaching £1 per litre (i.e. 143 shillings) per litre. In Nairobi fuel is around 70 per litre. If the price doubled, we’d have riots.
According to the Sunday Standard, barter trade is still common in Western Kenya (Kisii) where maize or millet are exchanged for organic salt (which is used as a salt lick for livestock and for cooking)
Breaking News (the Onion): Neverland Ranch investigators discover corpse of real Michael Jackson
Job Watch
Africa Development Bank – Uganda Office (http://www.afdb.org)
(01) investment officer: applicants must have graduate business degree and 5 years experience in project analysis preferably in the private sector
(02) disbursement assistant: applicants must have bachelors degree in business and 5 years experience
(03) procurement assistant: applicants must have bachelors degree in engineering, procurement, management, business or architecture and 5 years experience
(04) telecommunications assistant: applicant must have bachelors degree in electronic and 5 years experience
Apply by April 5 to the Resident Representative, ADB Uganda Country Office, P. O. Box 28509 Kampala
KETEPA (Kenya Tea Packers Ltd)
Managing Director
Must have post graduate qualification and at least 10 years senior management experience preferably with a fast moving goods company (FMGC) and be aged between 35 – 50 years
Apply by April 2nd, quoting MD/03.01 to esd@deloitte.co.ke (or The Director, Executive Selection Division, Deloitte Consulting, P. O. Box 40092-00100 Nairobi)
GJLOS (Governance, Justice, Law and Order Sector)
Information and Communications Specialist
Applicants must be Kenyans with degrees in communications, P.R. Marketing or social sciences – with at least 7 years experience in communications/P.R. and good knowledge of IEC (information education and communication)channels and governance & justice issues
Apply by April 4th, quoting ICS-GJLOS 2005 to The Fund Manager, GJLOS Reform Programme, KPMG Kenya, P. O. Box 40612-00100 Nairobi
Ministry of Finance
Senior Auditor – internal audit (48 positions) V/No.41/2005 salary of 17 – 23,000 shillings per month
Must have CPA II and 3 years audit experience or relevant university degree and 4 years experience
Senior Principal Finance Officer – budgetary supply department (4 posts) V/No.42/2005 salary of 49 – 55k p.m.
Must have served in senior finance position for 3 years, or have an MBA and CPA III or served in the civil service at job group N for 3 years in financial management
Office of the Government Spokesman a.k.a. public communications secretary
Senior deputy public communications secretary V/No.29/2005 salary 59 – 73k per month
Must have masters degree in social sciences or mass communications and two years relevant experience in communications/P.R. (deputy to Dr. Alfred Mutua)
Senior communications officer (video and photography) V/No.30/2005 salary 17 – 23k p.m. – must have diploma in mass communications and clear proven experience as a videographer
Senior communications officer (desktop publisher and graphic designer) V/No.31/2005 salary 17 – 23k p.m. – must have diploma of higher in arts and clear proven experience in desktop publishing (e.g. adobe PageMaker, Photoshop illustrator, quark xpress etc)
Senior communications officer (web designer) V/No.32/2005 salary 17 – 23k p.m. – must have diploma of higher in arts and clear proven experience in desktop publishing (e.g. adobe PageMaker, Photoshop illustrator, quark xpress etc) and web design skills
Librarian (research & archival) V/No.33/2005 salary 15 – 21k p.m. – must have diploma or bachelors degree in library, information sciences diploma in mass communications and computer skills, especially library software knowledge
Apply by 15th April to the Secretary, Public Service Commission of Kenya, P. O. Box 30095 Nairobi. (No-email, but jobs from other ministries also appear in the Nation of Friday March 18)
(01) investment officer: applicants must have graduate business degree and 5 years experience in project analysis preferably in the private sector
(02) disbursement assistant: applicants must have bachelors degree in business and 5 years experience
(03) procurement assistant: applicants must have bachelors degree in engineering, procurement, management, business or architecture and 5 years experience
(04) telecommunications assistant: applicant must have bachelors degree in electronic and 5 years experience
Apply by April 5 to the Resident Representative, ADB Uganda Country Office, P. O. Box 28509 Kampala
KETEPA (Kenya Tea Packers Ltd)
Managing Director
Must have post graduate qualification and at least 10 years senior management experience preferably with a fast moving goods company (FMGC) and be aged between 35 – 50 years
Apply by April 2nd, quoting MD/03.01 to esd@deloitte.co.ke (or The Director, Executive Selection Division, Deloitte Consulting, P. O. Box 40092-00100 Nairobi)
GJLOS (Governance, Justice, Law and Order Sector)
Information and Communications Specialist
Applicants must be Kenyans with degrees in communications, P.R. Marketing or social sciences – with at least 7 years experience in communications/P.R. and good knowledge of IEC (information education and communication)channels and governance & justice issues
Apply by April 4th, quoting ICS-GJLOS 2005 to The Fund Manager, GJLOS Reform Programme, KPMG Kenya, P. O. Box 40612-00100 Nairobi
Ministry of Finance
Senior Auditor – internal audit (48 positions) V/No.41/2005 salary of 17 – 23,000 shillings per month
Must have CPA II and 3 years audit experience or relevant university degree and 4 years experience
Senior Principal Finance Officer – budgetary supply department (4 posts) V/No.42/2005 salary of 49 – 55k p.m.
Must have served in senior finance position for 3 years, or have an MBA and CPA III or served in the civil service at job group N for 3 years in financial management
Office of the Government Spokesman a.k.a. public communications secretary
Senior deputy public communications secretary V/No.29/2005 salary 59 – 73k per month
Must have masters degree in social sciences or mass communications and two years relevant experience in communications/P.R. (deputy to Dr. Alfred Mutua)
Senior communications officer (video and photography) V/No.30/2005 salary 17 – 23k p.m. – must have diploma in mass communications and clear proven experience as a videographer
Senior communications officer (desktop publisher and graphic designer) V/No.31/2005 salary 17 – 23k p.m. – must have diploma of higher in arts and clear proven experience in desktop publishing (e.g. adobe PageMaker, Photoshop illustrator, quark xpress etc)
Senior communications officer (web designer) V/No.32/2005 salary 17 – 23k p.m. – must have diploma of higher in arts and clear proven experience in desktop publishing (e.g. adobe PageMaker, Photoshop illustrator, quark xpress etc) and web design skills
Librarian (research & archival) V/No.33/2005 salary 15 – 21k p.m. – must have diploma or bachelors degree in library, information sciences diploma in mass communications and computer skills, especially library software knowledge
Apply by 15th April to the Secretary, Public Service Commission of Kenya, P. O. Box 30095 Nairobi. (No-email, but jobs from other ministries also appear in the Nation of Friday March 18)
Saturday, March 19, 2005
Friday, March 18, 2005
No Safaricom shares for you/Telkom update
The Ministry of Information has applied to the Government for a waiver to privatize Telkom Kenya prior to the passage of the privatization bill by parliament. The question is, will any serious investor trust the government with Minister Tuju running amok in the sector?
Also despite an earlier indication that Telkom would dispose of 11% of its Safaricom shares to the public, it now appears that they will be sold to Vodaphone, giving the UK phone giant a majority 51% stake in Safaricom. So once again, the public is shut out of buying shares in the hottest company in Kenya. It appears that the only money that Safaricom wants from Kenyans is for airtime, not equity.
Also despite an earlier indication that Telkom would dispose of 11% of its Safaricom shares to the public, it now appears that they will be sold to Vodaphone, giving the UK phone giant a majority 51% stake in Safaricom. So once again, the public is shut out of buying shares in the hottest company in Kenya. It appears that the only money that Safaricom wants from Kenyans is for airtime, not equity.
Big Bank Updates
CFC
CFC Bank posted a net profit of 665 million, up from 415 million in 2003 (60% increase) and will pay a dividend of .84 shillings/share (same dividend as 2003). During the year, customer deposits grew from 10.1 to 12.9 billion, while loans to customers also increased from 7.8 to 11 billion. They also reduced their government securities from 3.5 to 3 billion, while their non-performing assets also reduced from 422 to 394 million. Only odd point was an increase in investment in subsidiary companies o from 166 to 691 million, related to purchase of Alico insurance.
Co-op
Cooperative Bank bucked a trend by investing more in government securities - During the era of low interest rates, Bank’s have been transferring funds from the government from the government to the private sector, but Co-op increased government securities by almost 3 billion shillings to 3.3 billion at year end up from 459 million in 2003 (and earned 558 million, up from 272 million on govt. securities) Also provisions for bad debts almost doubled from 464 to 886 million
The bank increased its customer deposits from 26 to 35 billion, and also loans to the public from 18 to 35 billion. The Bank ended the year with after tax profits increased by 32% - from 156 million to 206 million
KCB
KCB has announced that they will add 36 more ATM outlet’s by the end of they year. They currently have 83 in operation.
World Bank
This week, George W. Bush gives the World the finger by nominating Paul Wolfowitz, the Chief architect of the US War in Iraq to head the World Bank
(and speaking fingers, watch Nation TV this weekend for a re-cap of the opening of Parliament - and don’t blink or you’ll mist a clip of Chris Murungaru flipping the bird at someone)
CFC Bank posted a net profit of 665 million, up from 415 million in 2003 (60% increase) and will pay a dividend of .84 shillings/share (same dividend as 2003). During the year, customer deposits grew from 10.1 to 12.9 billion, while loans to customers also increased from 7.8 to 11 billion. They also reduced their government securities from 3.5 to 3 billion, while their non-performing assets also reduced from 422 to 394 million. Only odd point was an increase in investment in subsidiary companies o from 166 to 691 million, related to purchase of Alico insurance.
Co-op
Cooperative Bank bucked a trend by investing more in government securities - During the era of low interest rates, Bank’s have been transferring funds from the government from the government to the private sector, but Co-op increased government securities by almost 3 billion shillings to 3.3 billion at year end up from 459 million in 2003 (and earned 558 million, up from 272 million on govt. securities) Also provisions for bad debts almost doubled from 464 to 886 million
The bank increased its customer deposits from 26 to 35 billion, and also loans to the public from 18 to 35 billion. The Bank ended the year with after tax profits increased by 32% - from 156 million to 206 million
KCB
KCB has announced that they will add 36 more ATM outlet’s by the end of they year. They currently have 83 in operation.
World Bank
This week, George W. Bush gives the World the finger by nominating Paul Wolfowitz, the Chief architect of the US War in Iraq to head the World Bank
(and speaking fingers, watch Nation TV this weekend for a re-cap of the opening of Parliament - and don’t blink or you’ll mist a clip of Chris Murungaru flipping the bird at someone)
Thursday, March 17, 2005
Lunch with Sir Clay
Sir Edward Clay was the guest at the Nairobi Central Business District Association (NCBDA) 1st quarterly luncheon of 2005. He first came to Nairobi in 1970, and is now the UK’s High Commissioner to Nairobi 30 years later. He’s been in the news a lot lately and the lunch was eagerly anticipated - following his crusade against corruption that makes a mockery of the government’s ‘war on corruption.’
He didn’t drop any bombs today, but he dismissed claims that Britain was losing business in Kenya. He said that Kenya’s economy was improving, despite the bureaucracy and corruption, and also encouraged everyone to read the just released, Commission for Africa Report as well as the government’s Economic Recovery Strategy that was released in 2003. And of course threw a few barbs at the government’s non-war on corruption.
About the lunch
- A week ago, I vowed to get organized especially around official events. I got my invitation card the morning of the luncheon, but when I arrived at the Stanley Hotel Ballroom at 12:30 sharp as indicated on the card, I found a very empty room.
- Basically, it still pays to be late in Nairobi: the chief Guest arrived at 12:35, the function/soup started at 12:55, dining room was full at 1:10, lunch was served at around 1:15 and the function ended as soon as Clay left at 2:15 p.m.
- No one wanted to miss Clay’s speech. After lunch, and while the NCBDA Chairman was speaking, half the room rushed to get dessert and so they could be comfortably seated by the time Clay started.
- To save time and get back to their offices, guests ‘shortened’ the plenary session from a planned 45 minutes to 3 minutes by not asking questions. Only one question was asked - a rambling jumbled question by ‘a freelance journalist’ who wondered if Europe was so pure that it’s Ambassador’s could not help but preach governance to poor Africans (even African Ambassadors don’t criticize their host African counties)
- We miro’s are still learning: At my table, we ate properly with knives and up-turned forks while odiero’s and chute’s used single forks and their hands to eat their chicken and lamb. Later we (miro’s) also up-turned our forks and used our hands to eat more comfortably.
He didn’t drop any bombs today, but he dismissed claims that Britain was losing business in Kenya. He said that Kenya’s economy was improving, despite the bureaucracy and corruption, and also encouraged everyone to read the just released, Commission for Africa Report as well as the government’s Economic Recovery Strategy that was released in 2003. And of course threw a few barbs at the government’s non-war on corruption.
About the lunch
- A week ago, I vowed to get organized especially around official events. I got my invitation card the morning of the luncheon, but when I arrived at the Stanley Hotel Ballroom at 12:30 sharp as indicated on the card, I found a very empty room.
- Basically, it still pays to be late in Nairobi: the chief Guest arrived at 12:35, the function/soup started at 12:55, dining room was full at 1:10, lunch was served at around 1:15 and the function ended as soon as Clay left at 2:15 p.m.
- No one wanted to miss Clay’s speech. After lunch, and while the NCBDA Chairman was speaking, half the room rushed to get dessert and so they could be comfortably seated by the time Clay started.
- To save time and get back to their offices, guests ‘shortened’ the plenary session from a planned 45 minutes to 3 minutes by not asking questions. Only one question was asked - a rambling jumbled question by ‘a freelance journalist’ who wondered if Europe was so pure that it’s Ambassador’s could not help but preach governance to poor Africans (even African Ambassadors don’t criticize their host African counties)
- We miro’s are still learning: At my table, we ate properly with knives and up-turned forks while odiero’s and chute’s used single forks and their hands to eat their chicken and lamb. Later we (miro’s) also up-turned our forks and used our hands to eat more comfortably.
Wednesday, March 16, 2005
Heineken in Kenya
Heineken has now been officially launched in Kenya. It will be imported and distributed by Kenya Breweries and may eventually be brewed in Nairobi, if sales are impressive. This is the second premium beer launched by KBL in a month (after White Cap Light, a low carb and alcohol beer, targeted at female executives). Review’s of White Cap Light by people I know have not been good – saying the beer is just water.
However Heineken is a great beer, but I wish they had launched it in bigger bottles. In most of the US, Heineken is sold in 12 ounce (oz.) bottles and cans, but in poor (minority) communities, it is sold in 24. oz. bottles to compete better against cheaper 40-ounce malt liquor brands.
While KBL admits that most Kenyan are migrating towards illicit and cheaper brands these days, they have still continued to focus on the premium brand segment that is only growing at 2%. Still, it’s a great addition to the market and will be sold at 100/=
However Heineken is a great beer, but I wish they had launched it in bigger bottles. In most of the US, Heineken is sold in 12 ounce (oz.) bottles and cans, but in poor (minority) communities, it is sold in 24. oz. bottles to compete better against cheaper 40-ounce malt liquor brands.
While KBL admits that most Kenyan are migrating towards illicit and cheaper brands these days, they have still continued to focus on the premium brand segment that is only growing at 2%. Still, it’s a great addition to the market and will be sold at 100/=
Tuesday, March 15, 2005
Tuju vs. CCK saga takes another turn
- The move has full Cabinet backing and is said to relate to investigations into improprieties in the selection of a Second National Operator.
- Unfortunately no evidence has yet been produced as to what these improprieties are and unless legal action follows, DG Sammy Kirui will have in effect been judged guilty without any formal evidence being presented.
- The losing bidders for the SNO licence included a group of wealthy diaspora Kenyans based in the USA.
Industry in Disarray
- The CCK Board plays such a crucial role that now no further licenses can be issued, no disputes can be settled and no formal regulatory interventions can take place and there is no clear communication from the Government as to how affairs within the sector are to be managed".
- If you were of a paranoid turn of mind, you might think that this is just what the Government might want. It means that there is no-one who can order Telkom Kenya to behave in a competitive fashion. The near-bankrupt Telkom Kenya can stagger forward without significant competition. And illegal call diversion within Telkom Kenya may or may not be continuing but there is no way of telling because any investigation has now been halted.
- Unfortunately no evidence has yet been produced as to what these improprieties are and unless legal action follows, DG Sammy Kirui will have in effect been judged guilty without any formal evidence being presented.
- The losing bidders for the SNO licence included a group of wealthy diaspora Kenyans based in the USA.
Industry in Disarray
- The CCK Board plays such a crucial role that now no further licenses can be issued, no disputes can be settled and no formal regulatory interventions can take place and there is no clear communication from the Government as to how affairs within the sector are to be managed".
- If you were of a paranoid turn of mind, you might think that this is just what the Government might want. It means that there is no-one who can order Telkom Kenya to behave in a competitive fashion. The near-bankrupt Telkom Kenya can stagger forward without significant competition. And illegal call diversion within Telkom Kenya may or may not be continuing but there is no way of telling because any investigation has now been halted.
(Not Quite) A Bank Merger
Commercial bank of Africa, the No. 3 Bank in Kenya took over First American Bank, the No. 12 in a deal announced this week.
It’s not quite a merger, but more a realignment of business divisions since the two banks have a common shareholding among prominent wealthy families in Kenya and the deal will consolidate the shareholding of the two banks in one entity. Both the Jomo Kenyatta and the Naushad Merali families have a substantial interest in the two banks.
Merali owns a 14 per cent minority stake in CBA and bought out First American Bank of Kenya from First Bank of Chicago in 1987 in addition to also owning Equatorial Commercial Bank through his Sameer Group which is ranked No. 17.
(Rankings from the Market Intelligence 2003 Banking Survey)
It’s not quite a merger, but more a realignment of business divisions since the two banks have a common shareholding among prominent wealthy families in Kenya and the deal will consolidate the shareholding of the two banks in one entity. Both the Jomo Kenyatta and the Naushad Merali families have a substantial interest in the two banks.
Merali owns a 14 per cent minority stake in CBA and bought out First American Bank of Kenya from First Bank of Chicago in 1987 in addition to also owning Equatorial Commercial Bank through his Sameer Group which is ranked No. 17.
(Rankings from the Market Intelligence 2003 Banking Survey)
World Bank in Africa
The World Bank has welcomed the release of the Commission for Africa Report which calls for doubling of aid to Sub-Saharan Africa, including $150 billion investment in infrastructure over the next decade.
However, former staff of the Bank and the US Congress are accusing the World bank of "cooking the books" when it comes to Africa - one allegation is that problems in a World Bank accounting system produced tens of millions of dollars in errors, which were then offset by ad hoc adjustments.
However, former staff of the Bank and the US Congress are accusing the World bank of "cooking the books" when it comes to Africa - one allegation is that problems in a World Bank accounting system produced tens of millions of dollars in errors, which were then offset by ad hoc adjustments.
Monday, March 14, 2005
Driver’s Beware
The Traffic Police Department collected 25.7 million shillings from traffic enforcement in the month of February, which was up by 2 million from the previous month.
About half (13 million shillings) was from Nairobi motorists from a total of 24,000 offences – with most of them being matatu-related. Nyanza, Coast, Rift Valley, Central, and Eastern provinces all recorded over 8,000 offences and fines of 2 million each, while drivers in North Eastern province had the lowest number of traffic police incidents – 227 (60,000 shillings in fines)
Non-compliance offences included matatu conductors (1,600), passengers not wearing seatbelts in both public and private vehicles (3,000), speeding (98) and various driver offences (6,400).
Vehicles were detained for obstruction (2,750), double parking (1,500) windscreens with reflective materials (1,500), loud music (400) and other traffic offences (3,600)
Surprisingly there have been zero incidents of drunken driving recorded across Kenya in 2005. Of course, it's possible, that such incidents are turnoved over to another department of the Police force.
We commend the transparency of the Police in bringing this to our attention, however I’d prefer if they focused primarily on fighting violent crime around the Country.
About half (13 million shillings) was from Nairobi motorists from a total of 24,000 offences – with most of them being matatu-related. Nyanza, Coast, Rift Valley, Central, and Eastern provinces all recorded over 8,000 offences and fines of 2 million each, while drivers in North Eastern province had the lowest number of traffic police incidents – 227 (60,000 shillings in fines)
Non-compliance offences included matatu conductors (1,600), passengers not wearing seatbelts in both public and private vehicles (3,000), speeding (98) and various driver offences (6,400).
Vehicles were detained for obstruction (2,750), double parking (1,500) windscreens with reflective materials (1,500), loud music (400) and other traffic offences (3,600)
Surprisingly there have been zero incidents of drunken driving recorded across Kenya in 2005. Of course, it's possible, that such incidents are turnoved over to another department of the Police force.
We commend the transparency of the Police in bringing this to our attention, however I’d prefer if they focused primarily on fighting violent crime around the Country.
Political interference in Banks?
Industrial Development Bank
The takeover of IDB’s current account business leaves more questions than answers. On what basis was Equity selected? Was there a tendering process open to all banks and financial institutions? Given that the assets of a public (state-owned) bank are being transferred to a private Bank, is this not a form of privatisation – that must be approved by Parliament?
Consolidated Bank
Also the previous owners of collapsed banks that were folded into consolidated Bank are pushing the Ministry of Finance to turn over the Bank to them – claiming they are the true owners of the Bank.
The takeover of IDB’s current account business leaves more questions than answers. On what basis was Equity selected? Was there a tendering process open to all banks and financial institutions? Given that the assets of a public (state-owned) bank are being transferred to a private Bank, is this not a form of privatisation – that must be approved by Parliament?
Consolidated Bank
Also the previous owners of collapsed banks that were folded into consolidated Bank are pushing the Ministry of Finance to turn over the Bank to them – claiming they are the true owners of the Bank.
Media Bias: Bad for Democracy
Alleged presidential speech writer, and advisor, Jean Njeri Kamau says there is "a carefully orchestrated campaign of disinformation designed to make the current presidency and power networks appear to be illegitimate.”
Were MP’s pregnant?
Parliament resumes today after a three-month recess. What other job gives you a three-month holiday every year? You have to get pregnant every year or be a primary school student to achieve that. I don't mean to give our MP’s any more ideas, but here's what their colleagues in the European Parliament get:
- Has 732 members, many of whom say that they have problems with the benefits, but in the meantime, they deposit the checks.
- Travel expenses: members are reimbursed at the highest economy price, meaning that a Finnish member could receive about 10 times the cost of the trip.
- Generous pension plan: any member over 60 who has served at least five years about $1,500 a month.
- No ban on relatives working as Parliament aides, and relatives of at least two-dozen members do.
- Taxi allowances
- Free car service to take them from the airport to the Parliament building.
$6,000-a-year payment for language lessons in addition to two free flights to European countries for members who want to take immersion lessons.
- Daily expense stipends, even on days when no official business is conducted.
- Daily stipend of $314 a day that members get when the Parliament is in session.
- Most benefits are tax-free.
- When the benefits are added up, a Parliament member on the low end of the pay scale, who earns $40,000 a year, can bring in benefits worth three times that.
- Has 732 members, many of whom say that they have problems with the benefits, but in the meantime, they deposit the checks.
- Travel expenses: members are reimbursed at the highest economy price, meaning that a Finnish member could receive about 10 times the cost of the trip.
- Generous pension plan: any member over 60 who has served at least five years about $1,500 a month.
- No ban on relatives working as Parliament aides, and relatives of at least two-dozen members do.
- Taxi allowances
- Free car service to take them from the airport to the Parliament building.
$6,000-a-year payment for language lessons in addition to two free flights to European countries for members who want to take immersion lessons.
- Daily expense stipends, even on days when no official business is conducted.
- Daily stipend of $314 a day that members get when the Parliament is in session.
- Most benefits are tax-free.
- When the benefits are added up, a Parliament member on the low end of the pay scale, who earns $40,000 a year, can bring in benefits worth three times that.
Saturday, March 12, 2005
Rant
The Dettol Heart Run is being held today and caused some traffic jams around Nairobi West. The traffic was not as bad as the Stanchart Nairobi marathon late last year, but still many cars drove though the shopping area to get away from the long queue on Langata Road.
I was walking on the dusty sidewalk passing frustrated drivers, when a horn blew behind me and I jumped out of the way just as a huge 4 X 4, drove past on the sidewalk, blowing dust, with the driver yakking on his phone.
I recognized the car, a Nissan Patrol GK A257E, and the driver, a short balding, bespectacled, Church man I believe, who’s one of the constitution commissioners who fought Yash Pal Ghai at the conference last year.
His driving habits were bad enough, driving on the wrong side of the road, up the sidewalk, using a cell phone are typical matatu driver habits - but he was driving one of the huge GK trucks that were controversially issued to Constitution Commissioners (and yet the Bomas constitutional conference ended almost a year ago)
Commissioners are not doing any work and yet they still have these gas-guzzling monster trucks fueled and insured by taxpayers to use for a personal Saturday morning drive. I don’t think this driver has to work about filling out a vehicle work sheet that all government drivers must fill out to record each journey – if he does, he’ll probably use it to claim a mileage allowance.
How long will this go on? According to the Constitution Act, commissioners will get paid (and drive Nissan monster trucks) until, a new constitution is enacted.
I was walking on the dusty sidewalk passing frustrated drivers, when a horn blew behind me and I jumped out of the way just as a huge 4 X 4, drove past on the sidewalk, blowing dust, with the driver yakking on his phone.
I recognized the car, a Nissan Patrol GK A257E, and the driver, a short balding, bespectacled, Church man I believe, who’s one of the constitution commissioners who fought Yash Pal Ghai at the conference last year.
His driving habits were bad enough, driving on the wrong side of the road, up the sidewalk, using a cell phone are typical matatu driver habits - but he was driving one of the huge GK trucks that were controversially issued to Constitution Commissioners (and yet the Bomas constitutional conference ended almost a year ago)
Commissioners are not doing any work and yet they still have these gas-guzzling monster trucks fueled and insured by taxpayers to use for a personal Saturday morning drive. I don’t think this driver has to work about filling out a vehicle work sheet that all government drivers must fill out to record each journey – if he does, he’ll probably use it to claim a mileage allowance.
How long will this go on? According to the Constitution Act, commissioners will get paid (and drive Nissan monster trucks) until, a new constitution is enacted.
Friday, March 11, 2005
World Bank and IMF "increasingly irrelevant"
From Bretton Woods Project blog, a statement which certain Kenyan ministers and leaders will be happy to hear.
Overseas Kenyan's want to, but can't, bank in Kenya
Local financial institutions are missing out on a billion dollar business due to their failure to cater for the needs of the Kenyan community abroad, a recent survey of the banking sector indicates.
The survey, however, noted that banks such as Commercial Bank of Africa and National Industrial Credit (NIC) Bank have launched products that target Kenyans living abroad.
A lot of Kenyan’s abroad have asked me about how they can open, and operate, bank accounts in Kenya from overseas. It’s not an easy thing to do, as most Banks’ open account following face-to-face meetings where you draw signatures in their presence and they inspect you ID and other documents. So it’s best to open an account when you visit Kenya
The survey, however, noted that banks such as Commercial Bank of Africa and National Industrial Credit (NIC) Bank have launched products that target Kenyans living abroad.
A lot of Kenyan’s abroad have asked me about how they can open, and operate, bank accounts in Kenya from overseas. It’s not an easy thing to do, as most Banks’ open account following face-to-face meetings where you draw signatures in their presence and they inspect you ID and other documents. So it’s best to open an account when you visit Kenya
Business Briefs
Equity expansion continues
Equity Bank will take over the Harambee Avenue Branch of Industrial Development Bank. IDB will completely divest from commercial banking, and focus on its core business of long-term lending.
Bank at City Hall
Cooperative Bank has opened a branch at city hall annexe with 4 ATM’s. This should ease the congestion and queues that are typical at Co-op ATM’s especially at month end.
Carnivore tragedy bosses freed
Nine managers of United Distillers and Vintners (UDV), Carnivore Restaurant and East African Breweries Ltd, were set free after Attorney General Amos Wako dropped charges of negligence against them. Instead, Nairobi chief magistrate Aggrey Muchelule will hold an inquest into the deaths, which occurred at the Carnivore in December.
KRA hits a few roadblocks
Kenya Revenue Authority (KRA) wants the army to pay import duty saying duty exemptions on imported military goods are discriminatory.
Meanwhile, a Mombasa Court has stopped KRA from collecting revenue on behalf of the Mombasa Municipal Council following a suit filed by the North Coast Residents and Ratepayers Association, which comprises 380 residents of up-market Nyali. A similar case has been filed in Nairobi.
Moi, Biwott offer defense
Following a refusal by the Gor Sunguh circus to admit their evidence on the Ouko murder, retired President Moi and former Minister Nicholas Biwott have issued statements in the Friday (11/3) newspapers in their own defense though their lawyers Mutula Kilonzo and Shapley Barrett advocates respectively. Now if only the lawyers would also post these lengthy statements online.
Uchumi Sells Land
Following their closure of 10 stores last month, Uchumi supermarkets has advertised to sell land and buildings at Nairobi (City market, Langata Rd, Jogoo Rd, Ngong Rd) Eldoret, Bombolulu, and Thika.
Equity Bank will take over the Harambee Avenue Branch of Industrial Development Bank. IDB will completely divest from commercial banking, and focus on its core business of long-term lending.
Bank at City Hall
Cooperative Bank has opened a branch at city hall annexe with 4 ATM’s. This should ease the congestion and queues that are typical at Co-op ATM’s especially at month end.
Carnivore tragedy bosses freed
Nine managers of United Distillers and Vintners (UDV), Carnivore Restaurant and East African Breweries Ltd, were set free after Attorney General Amos Wako dropped charges of negligence against them. Instead, Nairobi chief magistrate Aggrey Muchelule will hold an inquest into the deaths, which occurred at the Carnivore in December.
KRA hits a few roadblocks
Kenya Revenue Authority (KRA) wants the army to pay import duty saying duty exemptions on imported military goods are discriminatory.
Meanwhile, a Mombasa Court has stopped KRA from collecting revenue on behalf of the Mombasa Municipal Council following a suit filed by the North Coast Residents and Ratepayers Association, which comprises 380 residents of up-market Nyali. A similar case has been filed in Nairobi.
Moi, Biwott offer defense
Following a refusal by the Gor Sunguh circus to admit their evidence on the Ouko murder, retired President Moi and former Minister Nicholas Biwott have issued statements in the Friday (11/3) newspapers in their own defense though their lawyers Mutula Kilonzo and Shapley Barrett advocates respectively. Now if only the lawyers would also post these lengthy statements online.
Uchumi Sells Land
Following their closure of 10 stores last month, Uchumi supermarkets has advertised to sell land and buildings at Nairobi (City market, Langata Rd, Jogoo Rd, Ngong Rd) Eldoret, Bombolulu, and Thika.
Thursday, March 10, 2005
Kenya Comparisons
Singapore was ranked the most efficient user of information technology by the World Economic Forum. Kenya was ranked No. 75, out of 104 - with Tunisia at 31, South Africa at 34, and Botswana at 50 leading the African brigades. The Global Information Technology Report assigned countries scores by looking at how well positioned they were to take advantage of information technology to develop their economies. Singapore, a Southeast Asian island state with a population of four million, ranked first in a number of categories, including quality of math and science education, affordability of telephones, and the government's efforts to promote information technology.
Meanwhile the New York Times believes Nigeria is improving. Hopeful, and familiar, signs of this in Nigeria are: (i) two, albeit flawed, democratic elections, have given themselves a reformist government with the right intentions (ii) President Olusegun Obasanjo has taken up the mantle of anticorruption - or, at least, slightly reduced corruption. He established an Economic and Financial Crimes Commission, whose chairman, Alhaji Nuhu Ribadu, at risk to his life, has been terrifying current and former officials with his investigations. (iii) three purported e-mail crime leaders have been arrested (iv) Nigeria has made huge strides in promoting regional security – with Nigerian peacekeepers are in Liberia, Sudan and Sierra Leone.
Meanwhile the New York Times believes Nigeria is improving. Hopeful, and familiar, signs of this in Nigeria are: (i) two, albeit flawed, democratic elections, have given themselves a reformist government with the right intentions (ii) President Olusegun Obasanjo has taken up the mantle of anticorruption - or, at least, slightly reduced corruption. He established an Economic and Financial Crimes Commission, whose chairman, Alhaji Nuhu Ribadu, at risk to his life, has been terrifying current and former officials with his investigations. (iii) three purported e-mail crime leaders have been arrested (iv) Nigeria has made huge strides in promoting regional security – with Nigerian peacekeepers are in Liberia, Sudan and Sierra Leone.
Get Organized
Nairobi has a cliquish mentality that can drive one crazy. Walk into a Bank/office and a guard will ask you to leave, if you don’t look like you have any business there. Most corporate events are invitation only - This is out of an obsession with security, and preventing gate crashers, job-seekers, mistresses, cocktail guests who eat till they are full, and other unwanted visitors creating unpleasant scenes.
- I have been denied access to two corporate ‘public’ meetings this month – one because I was not on the list, the second because I did not RSVP in time (even though I had an invitation).
- It’s my fault in both cases, because I think we have a mentality that a boring seminar rarely gets full, and the organizers will let in any warm body to fill empty seats so it doesn’t look like a failure on TV.
- A few weeks ago, I did not enter the draw for a golf tournament, but walked up on the day of the event and played. This is perfectly acceptable in golf because there are a lot of no-shows. But the organizers had only brought enough goodie bags for the registered entrants – so I missed out on a polo shirt, sports bag and umbrella (branded by D. T. Dobie) that would have been rightfully mine, almost free of charge, if only I had made a phone call three days before.
- Over the weekend I had to borrow cash because all the ATM’s erroneously had my balance -1,000 shillings (insufficient funds)
- I have an old generation ID, which I have never renewed out of the principle, if it ain’t broke, don’t fix it – the ID is still legal and never expires. It has been accepted 99% of the time, but one bank told me I could not open an account using it (new ID or Passport only). Another Bank told me to get a PIN card as well.
- Without the right kind of ID, you don’t get into buildings or even get to receive your own documents.
- One time I was stopped by a policeman for a traffic violation – and he was the one who pointed out to me that my Driver’s license expired two days before.
So I will try and get more organized: I will ensure that I renew my documents and cards, long before they expire. I will carry proper ID and all documents, even those I don’t need, before a meeting. I will keep some cash in the house for late nights and weekends. For meetings & events, I will make sure I am on the invited list, and then call ahead of time to ensure I get my card, directions and other instructions. I will arrive before time, even though I know the meeting will not start on time – sometimes it will start on time, and if it doesn’t I can spend some valuable time with the important, smart people who are on time. And yes, I will have eaten something ahead of time, so that I am not at the mercy of my hosts for some bitings, and I won’t crave the 200 shilling juice served at the hotel.
- I have been denied access to two corporate ‘public’ meetings this month – one because I was not on the list, the second because I did not RSVP in time (even though I had an invitation).
- It’s my fault in both cases, because I think we have a mentality that a boring seminar rarely gets full, and the organizers will let in any warm body to fill empty seats so it doesn’t look like a failure on TV.
- A few weeks ago, I did not enter the draw for a golf tournament, but walked up on the day of the event and played. This is perfectly acceptable in golf because there are a lot of no-shows. But the organizers had only brought enough goodie bags for the registered entrants – so I missed out on a polo shirt, sports bag and umbrella (branded by D. T. Dobie) that would have been rightfully mine, almost free of charge, if only I had made a phone call three days before.
- Over the weekend I had to borrow cash because all the ATM’s erroneously had my balance -1,000 shillings (insufficient funds)
- I have an old generation ID, which I have never renewed out of the principle, if it ain’t broke, don’t fix it – the ID is still legal and never expires. It has been accepted 99% of the time, but one bank told me I could not open an account using it (new ID or Passport only). Another Bank told me to get a PIN card as well.
- Without the right kind of ID, you don’t get into buildings or even get to receive your own documents.
- One time I was stopped by a policeman for a traffic violation – and he was the one who pointed out to me that my Driver’s license expired two days before.
So I will try and get more organized: I will ensure that I renew my documents and cards, long before they expire. I will carry proper ID and all documents, even those I don’t need, before a meeting. I will keep some cash in the house for late nights and weekends. For meetings & events, I will make sure I am on the invited list, and then call ahead of time to ensure I get my card, directions and other instructions. I will arrive before time, even though I know the meeting will not start on time – sometimes it will start on time, and if it doesn’t I can spend some valuable time with the important, smart people who are on time. And yes, I will have eaten something ahead of time, so that I am not at the mercy of my hosts for some bitings, and I won’t crave the 200 shilling juice served at the hotel.
Wednesday, March 09, 2005
E Bay discovers Swahili
EBay launched an online classified ad site for international markets, called Kijiji, which means "village" in Swahili.The Kijiji services, which will be available across multiple cities in 50 countries to start, is designed to be a place where people can trade services that are local in nature, such as finding renters or buyers for apartments or homes, finding a babysitter, posting job listings, selling goods and even placing personal ads.
Tuesday, March 08, 2005
Business Briefs
KISS FM firings
Another round of media musical chairs, this time at KISS FM. Most of them should land jobs at other media houses, further confusing listeners who tend to associate the personalities with particular stations. Last month it was Nation TV which poached several personalities from KTN.
Kenya Railways Privatization Plan
Seven bidders have been given till June 15 to submit their proposals to the government to manage KR, and the winner will be announced December 15th. The government has asked the bidders to consider the following in their proposals; (i) retain KR’s 9,000 worker until a WB retrenchment plan is adopted (ii) double the volume of cargo carried by KR within 5 years (iii) sign a performance management contract. The bidders have in turn agreed to increase KR’s capacity by 20% a year, and have all expressed no interest in continuing any passenger traffic on KR.
Nation Media Group
Turnover at the NMG increased from 4.5 billion in 2003 to 4.9 billion in 2004, and net profit increased from 602 to 641 million shillings (12 shillings EPS). They will pay a 100% divided (5 shillings per share?) and in addition shareholders will receive one bonus share for each three they hold as at May 2005.
Unilever Tea Kenya
Posted a 360m profit, up from 62 million in 2003, attributing it to better tea sales, improvements in production and favorable exchange rates. The profit comes to an earning per share (EPS)of 7.39 for the year, of which they will pay 6 shillings as a dividend. In 2003, they also paid 6 shilling divided, but on earnings per share 1.27 shillings only.
Uchumi
Uchumi lost 632 million in the last six months of 2004, compared to a loss of 217 million in the same period last year. Their turnover also reduced from 4.3 billion to 3 billion. They are renewing their inventory, and will dispose of land, buildings & non-core assets to raise 900 million shillings for debt and creditor repayments.
Another round of media musical chairs, this time at KISS FM. Most of them should land jobs at other media houses, further confusing listeners who tend to associate the personalities with particular stations. Last month it was Nation TV which poached several personalities from KTN.
Kenya Railways Privatization Plan
Seven bidders have been given till June 15 to submit their proposals to the government to manage KR, and the winner will be announced December 15th. The government has asked the bidders to consider the following in their proposals; (i) retain KR’s 9,000 worker until a WB retrenchment plan is adopted (ii) double the volume of cargo carried by KR within 5 years (iii) sign a performance management contract. The bidders have in turn agreed to increase KR’s capacity by 20% a year, and have all expressed no interest in continuing any passenger traffic on KR.
Nation Media Group
Turnover at the NMG increased from 4.5 billion in 2003 to 4.9 billion in 2004, and net profit increased from 602 to 641 million shillings (12 shillings EPS). They will pay a 100% divided (5 shillings per share?) and in addition shareholders will receive one bonus share for each three they hold as at May 2005.
Unilever Tea Kenya
Posted a 360m profit, up from 62 million in 2003, attributing it to better tea sales, improvements in production and favorable exchange rates. The profit comes to an earning per share (EPS)of 7.39 for the year, of which they will pay 6 shillings as a dividend. In 2003, they also paid 6 shilling divided, but on earnings per share 1.27 shillings only.
Uchumi
Uchumi lost 632 million in the last six months of 2004, compared to a loss of 217 million in the same period last year. Their turnover also reduced from 4.3 billion to 3 billion. They are renewing their inventory, and will dispose of land, buildings & non-core assets to raise 900 million shillings for debt and creditor repayments.
Education Briefs
Egerton/Western Michigan (Universities) joint program
Under the (2 plus 2) study arrangement, a student will study for two years at Egerton University (Nakuru, Kenya), and the final two at Western Michigan University in Kalamazoo, Michigan. Eligible programs are B. Business Administration, B. Sc Computer Science, and B. Sc Engineering (16 majors available) and should begin in May 2005. Academic fees range from 45,000 – 65, 000 shillings per semester with an additional US$300 per semester paid when at Michigan. Each program will register 50 participants, who w ill have attained a minimum C+ in KCSE. Email ssp@egerton.ac.ke for more information
University Bill
When parliament passes an education bill later this year, university students will be able to transfer academic credits from one institution to another. This will reduce the cost of education, as well as enable students to complete studies faster.
US VISA fees up
US Embassy has increased Visa fees yet again.
Under the (2 plus 2) study arrangement, a student will study for two years at Egerton University (Nakuru, Kenya), and the final two at Western Michigan University in Kalamazoo, Michigan. Eligible programs are B. Business Administration, B. Sc Computer Science, and B. Sc Engineering (16 majors available) and should begin in May 2005. Academic fees range from 45,000 – 65, 000 shillings per semester with an additional US$300 per semester paid when at Michigan. Each program will register 50 participants, who w ill have attained a minimum C+ in KCSE. Email ssp@egerton.ac.ke for more information
University Bill
When parliament passes an education bill later this year, university students will be able to transfer academic credits from one institution to another. This will reduce the cost of education, as well as enable students to complete studies faster.
US VISA fees up
US Embassy has increased Visa fees yet again.
Lawsuit against Nairobi City Council Continues
The Nairobi stakeholders association, WE Care About Nairobi DO- IT (a.k.a (WECANDOIT) held a meeting at Sarit Centre on Monday, to update residents on their two lawsuits against the Nairobi City Council (NCC). In case No. 1 they claim the City’s 2005 rate increase is arbitrary and illegal, and in Case No. 2 they charge that, since NCC is not providing services to Nairobian's it is not entitled to collect rates from them. These cases will be heard later this month. Other titbits from the Q&A session that followed:
- NCC may be in contempt of Court since it placed and avert asking residents to pay their rates by June 2005, in exchange for a 3% discount, which only applies if you pay the disputed 2005 rates. The NCC has also contracted the Kenya Revenue Authority to collect land rates from them in exchange for a 1.5% fee. When the initial lawsuit was filed, the Judge issued a 'stay order' halting the increase until the case was heard.
- City valuations are arbitrary: The Chairlady’s neighbour had his land valued, and pays rates at Kshs. 5 million an acre, even though he’s been unable to sell any of it at 1m/acre. She herself has been asked to pay 300,000 for her Kitusuru land valued at 36 million, even though it does not have a serviceable road to it. She’s willing to pay her land rates, but wants to see some basic services come out of that money.
- Sellers and developers of land are not getting approval for their plans, until they pay the new rates.
- To dispute a land rate, a resident must first pay a non-refundable 500-shilling fee, regardless of the amount he’s disputing. WECANDOIT is also challenging this. Rates are .6% for residential and 1.5% for commercial land, per year – but the NCC has the power to arbitrarily raise them to 4%.
- There’s actually a non-functioning “ward committee” who are supposed to regulate and license any kiosk before it can operate anywhere in the City. WECANDOIT also supports devolution of powers, and revenue collection, to wards since that has proven to be more effective
- So far the association’s Justice Fund has received contributions amounting to 750,000 from residents shillings to fund the lawsuits. They also have some top-notch lawyers working on the case and have also received complementary advertising and meeting space from the Nation and Sarit Centre respectively.
- Good news: Even though some residents have been charged for garbage collection and sewerage on their bills (services they NEVER ever receive), a visit/complaint to City Hall can get the charge stopped.
- Bad news: Nairobi Water Corporation staff are going round claiming, they have ‘power to arrest’ residents who have (they say) tampered with water meters – in order to induce bribes
- Worse news: Policemen are stopping & threatening to arrest Nairobi drivers who drive without seatbelts or shoes, with tinted windows or bull bars on their cars, or for over-speeding – in order to induce bribes
- Quote of the day: from the Chairlady In Kenya today, the government is using 1st world laws to govern a 6th world country. We didn’t mind when they used 3rd world laws to govern what was then a 3rd world county
- Unfortunate fact: In a room of about 100 people, there were only about 5 Miro’s.
You can contact WECANDOIT at kinanda@ wananchi.com
- NCC may be in contempt of Court since it placed and avert asking residents to pay their rates by June 2005, in exchange for a 3% discount, which only applies if you pay the disputed 2005 rates. The NCC has also contracted the Kenya Revenue Authority to collect land rates from them in exchange for a 1.5% fee. When the initial lawsuit was filed, the Judge issued a 'stay order' halting the increase until the case was heard.
- City valuations are arbitrary: The Chairlady’s neighbour had his land valued, and pays rates at Kshs. 5 million an acre, even though he’s been unable to sell any of it at 1m/acre. She herself has been asked to pay 300,000 for her Kitusuru land valued at 36 million, even though it does not have a serviceable road to it. She’s willing to pay her land rates, but wants to see some basic services come out of that money.
- Sellers and developers of land are not getting approval for their plans, until they pay the new rates.
- To dispute a land rate, a resident must first pay a non-refundable 500-shilling fee, regardless of the amount he’s disputing. WECANDOIT is also challenging this. Rates are .6% for residential and 1.5% for commercial land, per year – but the NCC has the power to arbitrarily raise them to 4%.
- There’s actually a non-functioning “ward committee” who are supposed to regulate and license any kiosk before it can operate anywhere in the City. WECANDOIT also supports devolution of powers, and revenue collection, to wards since that has proven to be more effective
- So far the association’s Justice Fund has received contributions amounting to 750,000 from residents shillings to fund the lawsuits. They also have some top-notch lawyers working on the case and have also received complementary advertising and meeting space from the Nation and Sarit Centre respectively.
- Good news: Even though some residents have been charged for garbage collection and sewerage on their bills (services they NEVER ever receive), a visit/complaint to City Hall can get the charge stopped.
- Bad news: Nairobi Water Corporation staff are going round claiming, they have ‘power to arrest’ residents who have (they say) tampered with water meters – in order to induce bribes
- Worse news: Policemen are stopping & threatening to arrest Nairobi drivers who drive without seatbelts or shoes, with tinted windows or bull bars on their cars, or for over-speeding – in order to induce bribes
- Quote of the day: from the Chairlady In Kenya today, the government is using 1st world laws to govern a 6th world country. We didn’t mind when they used 3rd world laws to govern what was then a 3rd world county
- Unfortunate fact: In a room of about 100 people, there were only about 5 Miro’s.
You can contact WECANDOIT at kinanda@ wananchi.com
Monday, March 07, 2005
Avoid Clichés
Avoid using these 15 of the most annoying clichés in your workplace. Whenever I hear the ones in bold, I know someone is blowing hot air, filling space and has nothing to say:
At the end of the day
Solution
Thinking outside the box
Synergy
Paradigm
Metrics
Take it offline
Redeployed people
Core Competency
Win-win
Value-added
Get on the same page
Customer-centric
Generation X
Alignment
identified by the Accountemps survey of 150 senior executives
At the end of the day
Solution
Thinking outside the box
Synergy
Paradigm
Metrics
Take it offline
Redeployed people
Core Competency
Win-win
Value-added
Get on the same page
Customer-centric
Generation X
Alignment
identified by the Accountemps survey of 150 senior executives
Village Market
Had not been to Village Market in years, but it’s become a must see location for visitors to Nairobi. It was cool to see the World Bank Country Director, and jazz aficionado, Makhtar Diop play bass guitar on Saturday night as he backed Mercy Myra and other local musicians at Club Cork, Village Market. Coming soon to Nairobi is Panari Center, a shopping center/5-star hotel with an ice skating rink near JKIA.
Friday, March 04, 2005
World Bank 2005 Essay Competition
The World Bank invites you to participate in an International Essay Competition by responding to the two following questions:
1) What are the biggest obstacles you face in your daily life?
2) What practical solutions would you propose to build a secure future for yourself and others?
Calendar
April 15, 2005 Deadline for submissions
May 1, 2005 Announcement of finalists
May 2005 Jury selects winners
May 23-24, 2005 Finalists invited to present their essay to the Jury during the ABCDE conference
[TOPIC] Entrants are specifically requested to avoid general statements, and are asked to discuss specific experiences and develop concrete solutions that could be implemented, using one of three following approaches: a)Personal Reflection, b) Policy Analysis or c) Academic Inquiry
[AWARDS] $5,000 prize for the winner!!!
Prizes of s $1,000 euros
1) What are the biggest obstacles you face in your daily life?
2) What practical solutions would you propose to build a secure future for yourself and others?
Calendar
April 15, 2005 Deadline for submissions
May 1, 2005 Announcement of finalists
May 2005 Jury selects winners
May 23-24, 2005 Finalists invited to present their essay to the Jury during the ABCDE conference
[TOPIC] Entrants are specifically requested to avoid general statements, and are asked to discuss specific experiences and develop concrete solutions that could be implemented, using one of three following approaches: a)Personal Reflection, b) Policy Analysis or c) Academic Inquiry
[AWARDS] $5,000 prize for the winner!!!
Prizes of s $1,000 euros
MP’s Will Get Paid
Early in 2003, David Mwiriaria was a clean but green Finance Minister who succumbed to MP’s demands and gave them a hefty salary increase and car loan package. The move was ill-advised as it was the first move by parliament in the "newly-liberated" Kenya and led to teachers, police, healthcare and other workers all demanding their own salary increments from the new government, which Mwiraria said he could not afford.
Now two years later, Mwiraria is a tougher, but scarred Minister facing questions about his integrity & competence, with demands that he resign, and his only solace is the loyalty of his boss keeping him in his office. But since the President always takes the easy way out, he will instruct his Minster to accede to whatever parliament demands, so they vote his way
With MP’s asking for a Sh1.5 million Winding Allowance for each of the 222 MPs as a gratuity when the Ninth Parliament folds in 2007, it’s very hard to drum up sympathy for our broke MP’s.
Now two years later, Mwiraria is a tougher, but scarred Minister facing questions about his integrity & competence, with demands that he resign, and his only solace is the loyalty of his boss keeping him in his office. But since the President always takes the easy way out, he will instruct his Minster to accede to whatever parliament demands, so they vote his way
With MP’s asking for a Sh1.5 million Winding Allowance for each of the 222 MPs as a gratuity when the Ninth Parliament folds in 2007, it’s very hard to drum up sympathy for our broke MP’s.
Masai Mara dispute
Tourists visiting Kenya’s world-famous Masai Mara game reserve, are denied entry following a dispute between ranches and the county council.
Thursday, March 03, 2005
Finance Minister Resigns
Ministers do resign, except those in Kenya, the latest: French Finance Minister Hervé Gaymard resigned Friday after 12 weeks on the job after revelations that he and his family were renting a €14,000-a-month luxury apartment in Paris paid for by the state. In addition to the high rent, about $18,500 a month, there was an additional €2,500 a month for maintenance and three parking spaces, €32,000 to renovate the apartment and the parking area and €12,000 for real estate fees.
- He has pledged to pay back the costs incurred for renting the apartment, including the renovation costs and fees for breaking the lease.
- What was particularly unsettling for many public critics was his claim in a magazine interview that if he had been the son of rich bourgeois and not of a shoe repairman, there never would have been a problem because he would own his own apartment
- Gaymard, 44, and his wife, Clara, 45, who is France's ambassador-at-large to attract foreign investment, broke no laws in choosing a 600-square-meter duplex apartment close to the Élyseé Palace that would accommodate them and their eight children. According to French tradition, the government provides free housing for ministers in their ministries or other state-owned buildings or in rental apartments.
- It was Gaymard's loyalty to Chirac that catapulted him from Agriculture Minister to Finance Minister after the presidential hopeful Nicolas Sarkozy resigned from the post in November.
- With his smooth, non-confrontational approach, Gaymard had been confident that he would survive the storm. He told the newspaper Le Figaro in an interview published Thursday that he enjoyed the confidence of Chirac and his government
- Earlier, he had said that as someone who worked "120 hours a week," he had not had the time to check on the amount of the rent for the apartment.
- He has pledged to pay back the costs incurred for renting the apartment, including the renovation costs and fees for breaking the lease.
- What was particularly unsettling for many public critics was his claim in a magazine interview that if he had been the son of rich bourgeois and not of a shoe repairman, there never would have been a problem because he would own his own apartment
- Gaymard, 44, and his wife, Clara, 45, who is France's ambassador-at-large to attract foreign investment, broke no laws in choosing a 600-square-meter duplex apartment close to the Élyseé Palace that would accommodate them and their eight children. According to French tradition, the government provides free housing for ministers in their ministries or other state-owned buildings or in rental apartments.
- It was Gaymard's loyalty to Chirac that catapulted him from Agriculture Minister to Finance Minister after the presidential hopeful Nicolas Sarkozy resigned from the post in November.
- With his smooth, non-confrontational approach, Gaymard had been confident that he would survive the storm. He told the newspaper Le Figaro in an interview published Thursday that he enjoyed the confidence of Chirac and his government
- Earlier, he had said that as someone who worked "120 hours a week," he had not had the time to check on the amount of the rent for the apartment.
Telkom: Late to the party again
Telkom will launch ‘mzalendo’ a service to compete with the popular “simu ya jamii” that offers by-the-second calls, without the need of a scratch card or line. Simu ya Jamii has already spawned thousand of clones that are now found on every street corner, kiosk, on bicycles, hand carts, and now Mzalendo which will be like a phone booth for making mobile calls.
Wednesday, March 02, 2005
Bureaucratic Day
Scene One:
Went to the Post office yesterday, bought two envelopes and also stamps to send them at 21 shillings each. Got home and saw on the evening news that stamps had been raised to 25/= per letter w/immediate effect.
* Am partly to blame as the notice appeared in the newspapers yesterday – but I didn’t read them till evening. But surely the post office clerk who sold stamps should have known! Fortunately, just now, am told that the new tariffs become effective March 14th, not immediately
Scene Two:
Trying to open a savings account with a certain Bank, I was told that I required a PIN card (Kenya’s attempt to replicate a social security numbers)
Since I know my PIN number, but no card, I went to Times Tower (Kenya Revenue Authority headquarters) to get a PIN card printed.
• Arrive for obligatory body search (00:30)
• Enter building 2 of Times Tower, wisely ask for directions at information desk, told to go to other building (1:00)
• At other building stop at information desk, told to go to desk 18 with my national ID only (3:00)
• Desk 18 has two men chattering excitedly in vernacular as they point excitedly at a computer screen (5:00)
• After a minute, am told to see lady at desk 17 who’s making entries in her computer. Join her line (6:00)
• line ends & it’s my turn: she looks at me and tell me ID’s are presented at desk 15 (7:00)
• At desk 15, gentleman takes my ID, enters it in computer. Finds and scribbles my PIN (10:00)
• He takes it over to lady at desk 17 and disappears back into the staff office area (11:00)
• Another lady take over at desk 15. She says she can’t answer about things she didn’t handle (15:00)
• Line up back at 17. She tells crowd at her desk to line up straight, and not crowd her desk (17:00)
• Guard walks up and merges the two lines that have formed into one (19:00)
• My turn, she enters my data and the printer clutters. She asks me to wait (22:00)
• She removes two printouts and read names not mine (25:00)
• The line is finished, am all alone. So she manually feeds the printer to get my card. (27:00)
• I get a copy of my PIN card (28:00)
Otherwise the office was ok and KRA staff were helpful but seemed tired.
My main complaint was that I had to go thorugh desks 15, 17, and 18 when one person could have taken my ID, checked it in the system and against my picture, and printed me a card (This would have taken maybe 2 minutes at most, not 28 minutes)
Went to the Post office yesterday, bought two envelopes and also stamps to send them at 21 shillings each. Got home and saw on the evening news that stamps had been raised to 25/= per letter w/immediate effect.
* Am partly to blame as the notice appeared in the newspapers yesterday – but I didn’t read them till evening. But surely the post office clerk who sold stamps should have known! Fortunately, just now, am told that the new tariffs become effective March 14th, not immediately
Scene Two:
Trying to open a savings account with a certain Bank, I was told that I required a PIN card (Kenya’s attempt to replicate a social security numbers)
Since I know my PIN number, but no card, I went to Times Tower (Kenya Revenue Authority headquarters) to get a PIN card printed.
• Arrive for obligatory body search (00:30)
• Enter building 2 of Times Tower, wisely ask for directions at information desk, told to go to other building (1:00)
• At other building stop at information desk, told to go to desk 18 with my national ID only (3:00)
• Desk 18 has two men chattering excitedly in vernacular as they point excitedly at a computer screen (5:00)
• After a minute, am told to see lady at desk 17 who’s making entries in her computer. Join her line (6:00)
• line ends & it’s my turn: she looks at me and tell me ID’s are presented at desk 15 (7:00)
• At desk 15, gentleman takes my ID, enters it in computer. Finds and scribbles my PIN (10:00)
• He takes it over to lady at desk 17 and disappears back into the staff office area (11:00)
• Another lady take over at desk 15. She says she can’t answer about things she didn’t handle (15:00)
• Line up back at 17. She tells crowd at her desk to line up straight, and not crowd her desk (17:00)
• Guard walks up and merges the two lines that have formed into one (19:00)
• My turn, she enters my data and the printer clutters. She asks me to wait (22:00)
• She removes two printouts and read names not mine (25:00)
• The line is finished, am all alone. So she manually feeds the printer to get my card. (27:00)
• I get a copy of my PIN card (28:00)
Otherwise the office was ok and KRA staff were helpful but seemed tired.
My main complaint was that I had to go thorugh desks 15, 17, and 18 when one person could have taken my ID, checked it in the system and against my picture, and printed me a card (This would have taken maybe 2 minutes at most, not 28 minutes)
Business Briefs
Econet Licence Good: Econet is Back (for now at least) on track - But I won’t believe it till I see the launch, and a kiosk selling Econet airtime.
KRA is no IRS: The Kenya Revenue Authority is unable to pay 2.2 billion in VAT refunds it owes to corporations. They blame the Minister (Treasury) for giving away to many incentives and waivers.
Daima Bank: Depositors and Creditors of Daima Bank are invited to a meeting at 680 Hotel on 4th March at 10 a.m. where they will be given an update on attempts to revive the Bank that is now under statutory management by CBK.
Serena Profits: In a sign of the recovery in the tourism sector, Tourism Promotion Services (the Serena Hotels Group) announced a 420% increase in profits – from 25m in 03 to Kshs. 130 million in 2004.
Media: After reviving True Love and Drum Magazines, the Nation Media Group will now also revive the Weekly Review after taking over the name from Hillary Ngweno.
Meanwhile the Standard will launch a Coast magazine pullout in its Thursday paper, starting tomorrow, to compete against the Nation’s Coast Express which is published on Friday’s (as a separate weekly newspaper).
Supermarkets: Uchumi plans to do a share rights issue (similar to KCB in 04) in June 2005 to raise Kshs. 750 million.
Meanwhile Nakumatt management confirmed plans to open 2 stores every year.
Airlines: An Official of Miami Dade Aviation wrote a letter to the Standard to clarify that (i) their recent visit to Kenya was to assist JKIA upgrade from a category II to Category I status which would enable direct flight to America, and also to promote a trade conference which will take place in the US later this year( ii) denied that they (Miami) had insisted that KLM/KQ alliance be dissolved (iii) confirmed that there were no plans yet for KQ to fly to Miami, at this stage they have only presented a proposal to the KQ MD
Meanwhile Al-Etihad Airlines will fly from Abu-Dhabi to Nairobi
KRA is no IRS: The Kenya Revenue Authority is unable to pay 2.2 billion in VAT refunds it owes to corporations. They blame the Minister (Treasury) for giving away to many incentives and waivers.
Daima Bank: Depositors and Creditors of Daima Bank are invited to a meeting at 680 Hotel on 4th March at 10 a.m. where they will be given an update on attempts to revive the Bank that is now under statutory management by CBK.
Serena Profits: In a sign of the recovery in the tourism sector, Tourism Promotion Services (the Serena Hotels Group) announced a 420% increase in profits – from 25m in 03 to Kshs. 130 million in 2004.
Media: After reviving True Love and Drum Magazines, the Nation Media Group will now also revive the Weekly Review after taking over the name from Hillary Ngweno.
Meanwhile the Standard will launch a Coast magazine pullout in its Thursday paper, starting tomorrow, to compete against the Nation’s Coast Express which is published on Friday’s (as a separate weekly newspaper).
Supermarkets: Uchumi plans to do a share rights issue (similar to KCB in 04) in June 2005 to raise Kshs. 750 million.
Meanwhile Nakumatt management confirmed plans to open 2 stores every year.
Airlines: An Official of Miami Dade Aviation wrote a letter to the Standard to clarify that (i) their recent visit to Kenya was to assist JKIA upgrade from a category II to Category I status which would enable direct flight to America, and also to promote a trade conference which will take place in the US later this year( ii) denied that they (Miami) had insisted that KLM/KQ alliance be dissolved (iii) confirmed that there were no plans yet for KQ to fly to Miami, at this stage they have only presented a proposal to the KQ MD
Meanwhile Al-Etihad Airlines will fly from Abu-Dhabi to Nairobi
KCSE Results are out
Kids are cheering and mugging for news cameras and I’m thinking:
(i) Why aren’t these kids in class? These are not their results (these are of students now out of school)
(ii) What really goes on at Kisii schools each November?
(iii) Will the same student ever top standard 8, and then do it again in form IV exams?
(iv) Private secondary schools don’t shine as much as they do in primary exams (or maybe they teach British, IB or other education systems)
(v) When did physics become an optional, not compulsory subject? Only 60,000 of the 220,000 sat for a physics exam
(vi) One day, maybe in 2008, the Ministry will have a website where students will get their complete results, by entering in their index number and a PIN. That way, anxious parents and kids wont have to spend a fortune making frantic phone calls to schools for results.
(i) Why aren’t these kids in class? These are not their results (these are of students now out of school)
(ii) What really goes on at Kisii schools each November?
(iii) Will the same student ever top standard 8, and then do it again in form IV exams?
(iv) Private secondary schools don’t shine as much as they do in primary exams (or maybe they teach British, IB or other education systems)
(v) When did physics become an optional, not compulsory subject? Only 60,000 of the 220,000 sat for a physics exam
(vi) One day, maybe in 2008, the Ministry will have a website where students will get their complete results, by entering in their index number and a PIN. That way, anxious parents and kids wont have to spend a fortune making frantic phone calls to schools for results.
Tuesday, March 01, 2005
My 100-shilling dilemma
Kenya Breweries made a 5 for 1 stock split late in 2004 to make their high-flying stock more affordable. Now, each time I have a 100/= beer as I watch sports or socialise, my inner selfish guide asks me why don’t I buy of their shares instead of the next round of beers?
Over the last four years, EABL's share price has grown from 50 shillings to 600, and now trades at about 500 (actually 100 after the split). Whether this growth rate can be continued in future is questionable and risky. The company has fought and continues to face many battles – it ran Castle out of Kenya, and when underground liquors threatened its dominance, they contrived to have the government ban the sale of alcohol in sachets.
By 2008 the stock could go to 1,000 shillings or be down to 200, but it's still a better return than the 0% return I get on Monday morning after dinking several 100/= beers. In addition, I’ll be assured of a healthy dividend each year as a good chunk of profit is repatriated abroad each year through dividends.
Over the last four years, EABL's share price has grown from 50 shillings to 600, and now trades at about 500 (actually 100 after the split). Whether this growth rate can be continued in future is questionable and risky. The company has fought and continues to face many battles – it ran Castle out of Kenya, and when underground liquors threatened its dominance, they contrived to have the government ban the sale of alcohol in sachets.
By 2008 the stock could go to 1,000 shillings or be down to 200, but it's still a better return than the 0% return I get on Monday morning after dinking several 100/= beers. In addition, I’ll be assured of a healthy dividend each year as a good chunk of profit is repatriated abroad each year through dividends.
Nyama nyama nyama! Ya ____ ni nyama!
In the last week we have seen on the nightly news instances of villagers feasting on a hippo (that was stuck crossing the road) and a buffalo (that was shot by rangers).
Yesterday I had a quick lunch at Kenchic (Kimathi) and as I picked away at my rather dry fries and chicken, a man with a clean colourful shirt sat next to me. I didn’t really notice that he wasn’t eating, as I picked at my food and read the “Weekly Advertiser.” But after I finished, and rolled up the remains of my lunch to throw in the trash, he "shhh'd me," and indicated that I should leave them on the counter. I was shocked, as I understood that he wanted my leftover lunch. I gathered my newspaper and went to queue at the washbasin, and when I looked over my shoulder he was gone, and so were my chicken bones and dry fries!
This got me thinking – if a typical (non-working) Nairobian is hungry enough to camp at a fast food place for leftovers (can’t do it at a restaurant which has fewer patrons), how many wild animals are being eaten in the rural areas away from TV cameras and how much bush meat is being supplied to urban areas disguised as beef. The pictures on TV were fascinating and disturbing, until I realised that humans are omnivores, and Africans used to eat all sorts of animals until the missionaries came and told us about which split-hoof animals were acceptable to eat.
At this rate its only a matter of time before the US State Department advises travellers to Kenya to carry their own PH or anti-serum detectors, which they should use to jab to jab their nyama choma or pepper steak, to confirm the source animal of their lunch. Read a full report on how common bush meat is in the country here
Yesterday I had a quick lunch at Kenchic (Kimathi) and as I picked away at my rather dry fries and chicken, a man with a clean colourful shirt sat next to me. I didn’t really notice that he wasn’t eating, as I picked at my food and read the “Weekly Advertiser.” But after I finished, and rolled up the remains of my lunch to throw in the trash, he "shhh'd me," and indicated that I should leave them on the counter. I was shocked, as I understood that he wanted my leftover lunch. I gathered my newspaper and went to queue at the washbasin, and when I looked over my shoulder he was gone, and so were my chicken bones and dry fries!
This got me thinking – if a typical (non-working) Nairobian is hungry enough to camp at a fast food place for leftovers (can’t do it at a restaurant which has fewer patrons), how many wild animals are being eaten in the rural areas away from TV cameras and how much bush meat is being supplied to urban areas disguised as beef. The pictures on TV were fascinating and disturbing, until I realised that humans are omnivores, and Africans used to eat all sorts of animals until the missionaries came and told us about which split-hoof animals were acceptable to eat.
At this rate its only a matter of time before the US State Department advises travellers to Kenya to carry their own PH or anti-serum detectors, which they should use to jab to jab their nyama choma or pepper steak, to confirm the source animal of their lunch. Read a full report on how common bush meat is in the country here
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