KENYA: Biwott is back again
Three anti-corruption campaigners have left the scene as Total Man returns - The drive against corruption has run out of steam. President Mwai Kibaki's National Rainbow Coalition was elected in January 2003 on a straightforward anti-corruption platform. Today, independent analysts estimate corruption has reached the levels of the preceding government under Daniel arap Moi. Now Kibaki is regularly seen alongside the central figure in the government he defeated, Nicholas Kipyator Biwott. Investigation of the multimillion dollar Goldenberg export subsidy scandal, in which witnesses accused Biwott of playing a leading role, has been shelved indefinitely.
BANKS
Banking bust-up
Egypt wants its own man to run an all-Africa bank everyone else is angry. Leadership in Africa is an old Egyptian dream. It looks a lot less solid since President Hosni Mubarak's government expelled Jean-Louis Ekra, the new Ivorian president of Afreximbank, a multilateral African trade bank based in Cairo. Ekra is temporarily running Afreximbank from London; Egypt has written to its correspondent banks there, urging them not to follow Ekra's instructions. The Bank's board threatens to move it to another African state and wants the Egyptian government both to rescind the expulsion order on Ekra and to reverse instructions from the Central Bank of Egypt that two state-owned banks must default on loans worth US$40 million.
AFRICAN DEVELOPMENT BANK - Race for the presidency
The race to choose a new president for the African Development Bank is becoming increasingly bitter and political ahead of its annual meeting, due in Abuja, Nigeria, on 17-19 May. With the African Union now negotiating peace treaties and running peacekeeping operations and the New Partnership for Africa's Development (NePAD) managing development projects and recruiting investors, there is a much bigger role for the ADB.
Friday, April 29, 2005
Weekend Wrap
Non-performers
This week our Members of Parliament were ranked by a lobby group and came out as having performed very poorly. Even though they condemned the survey, most Kenyans feel the results are true – but all want to get a ticket of their own to Parliament next time round.
MP for Hire?
The top ranked MP in the survey, Kitutu Chache MP Jimmy Angwenyi was caught on Nation TV in a highly suspicious tea break with disgraced officials of the Ministry of Health causing him not to ask a sensitive question in Parliament. Last week he kept lobbing soft balls until Information Minister Raphael Tuju to hit a home run against Econet Wireless.
Transparency International moves on
On Friday April 29th, TI advertised the vacant post of executive director. Applicants must be Kenyans citizens of integrity who can demonstrate project development, fund-raising, local & international interface skills as well as recruit, manage and motivate other TI staff. Apply to recruit@adeptsystems.co.ke by 13th May.
Plant A Tree
Today (Friday) is national tree planting – unfortunately no one noticed and Kenya’s forests are being rapidly depleted. Since the entire Nyayo era is being revived by Narc, I‘d like to encourage them to re-introduce Moi’s 1980 tree project of “kata moja, panda mbili” to encourage tree planting among rural communities who depend on firewood for fuel
Upcoming Debate
On Tuesday May 3rd (6.p.m) at the Stanly Hotel, the Media Council of Kenya has arranged a forum entitled “Is the media abusing freedom of the press?” Members of the public are invited to share their views with Standard Associate Editor Kwamchetsi Makokha and Public Communication Secretary, Dr. Alfred Mutua, among others.
Prosecutors scoring zero
As Tom Delamere entered the court system to be charged with murder, out walked three suspects who had been charged with killing Professor Mbai last year (yes they are innocent, but who are the real killers? Also walking out of jail this week was Ketan Somaia, following in the golden footsteps of Kamlesh Pattni who was acquited last month. And even as Kenyans this week discovered how rotten the National Aids Control Council was, former director Dr. Gachara is sitting at home, courtesy off a Presidential Pardon last Jamhuri Day. With a high-powered legal team (led by Fred Ojiambo) already assembled against a Nakuru prosecutor, Delamare's ordeal will be over in a few months.
This week our Members of Parliament were ranked by a lobby group and came out as having performed very poorly. Even though they condemned the survey, most Kenyans feel the results are true – but all want to get a ticket of their own to Parliament next time round.
MP for Hire?
The top ranked MP in the survey, Kitutu Chache MP Jimmy Angwenyi was caught on Nation TV in a highly suspicious tea break with disgraced officials of the Ministry of Health causing him not to ask a sensitive question in Parliament. Last week he kept lobbing soft balls until Information Minister Raphael Tuju to hit a home run against Econet Wireless.
Transparency International moves on
On Friday April 29th, TI advertised the vacant post of executive director. Applicants must be Kenyans citizens of integrity who can demonstrate project development, fund-raising, local & international interface skills as well as recruit, manage and motivate other TI staff. Apply to recruit@adeptsystems.co.ke by 13th May.
Plant A Tree
Today (Friday) is national tree planting – unfortunately no one noticed and Kenya’s forests are being rapidly depleted. Since the entire Nyayo era is being revived by Narc, I‘d like to encourage them to re-introduce Moi’s 1980 tree project of “kata moja, panda mbili” to encourage tree planting among rural communities who depend on firewood for fuel
Upcoming Debate
On Tuesday May 3rd (6.p.m) at the Stanly Hotel, the Media Council of Kenya has arranged a forum entitled “Is the media abusing freedom of the press?” Members of the public are invited to share their views with Standard Associate Editor Kwamchetsi Makokha and Public Communication Secretary, Dr. Alfred Mutua, among others.
Prosecutors scoring zero
As Tom Delamere entered the court system to be charged with murder, out walked three suspects who had been charged with killing Professor Mbai last year (yes they are innocent, but who are the real killers? Also walking out of jail this week was Ketan Somaia, following in the golden footsteps of Kamlesh Pattni who was acquited last month. And even as Kenyans this week discovered how rotten the National Aids Control Council was, former director Dr. Gachara is sitting at home, courtesy off a Presidential Pardon last Jamhuri Day. With a high-powered legal team (led by Fred Ojiambo) already assembled against a Nakuru prosecutor, Delamare's ordeal will be over in a few months.
Odds and Ends
In a rare settlement, the federal government has agreed to pay $87,500 to a woman from Kenya who was denied entry into the United States even though she says she expressed fears for her life in Kenya.
Thursday, April 28, 2005
A380 Welcome in Nairobi: (Daily Nation Feb 3 2005) Managing Director of the Kenya Airports Authority, Mr. George Muhoho, said that Jomo Kenyatta Airport would be able to receive the new Airbus A380 giant double-decker aircraft in Nairobi when it begins operations, he said, “a suitable passenger bridge has been identified, and lounges will be redesigned to accommodate departing passengers. Also the runway and taxiways will be strengthened and widened.
Bankelele
HFCK Boss Out
Peter Lewis Jones is out as Managing Director of Housing Finance Company of Kenya.
Earlier this month, the Nation reported that CBK wantd him out because HFCK was for violating Prudential regulation no. 10 which deals with provision for bad and doubtful loans and advances. HFCK has been making too little provisions as defined by CBK.
In their auditor’s letter at the end of 2003, KPMG made a point about future operations at HFCK noting that "a significant portion of their mortgage portfolio is non-performing, and low interest rates in the country have also lowered interest margins at HFCK. Also further growth is constrained by existing capital under the Bank Act and CBK act. The current licence does not allow for diversification, and the banks ability to make profits depends on recovery of non-performing assets."
The bank was supposed to make efforts to comply with PR10 and consult with shareholders by December 2004. - and these efforts have not borne much fruit, which is why CBK has forced the MD out.
In 2004, net interest income fell to 900 milliom, down from 1.6 billion in 2003 (and 2.0 b in 2002). HFCK ended the year with a pre-tax profit of 98 m (down from 112m in 03). HFCK has a bad debt portfolio of 4 b, but they also have 5 b as realizable value of securities (i.e. if they re-possess and sell houses of people who have defaulted)
Earlier this month, the Nation reported that CBK wantd him out because HFCK was for violating Prudential regulation no. 10 which deals with provision for bad and doubtful loans and advances. HFCK has been making too little provisions as defined by CBK.
In their auditor’s letter at the end of 2003, KPMG made a point about future operations at HFCK noting that "a significant portion of their mortgage portfolio is non-performing, and low interest rates in the country have also lowered interest margins at HFCK. Also further growth is constrained by existing capital under the Bank Act and CBK act. The current licence does not allow for diversification, and the banks ability to make profits depends on recovery of non-performing assets."
The bank was supposed to make efforts to comply with PR10 and consult with shareholders by December 2004. - and these efforts have not borne much fruit, which is why CBK has forced the MD out.
In 2004, net interest income fell to 900 milliom, down from 1.6 billion in 2003 (and 2.0 b in 2002). HFCK ended the year with a pre-tax profit of 98 m (down from 112m in 03). HFCK has a bad debt portfolio of 4 b, but they also have 5 b as realizable value of securities (i.e. if they re-possess and sell houses of people who have defaulted)
Wednesday, April 27, 2005
To Quote
Dr. Martin L. King quote I found on ESPN: “A man that doesn't stand for something will fall for anything.”
How to say "no comment" in Kenya: “The matter is in court and therefore sub judice” - Latest to use the phrase is Dr Alfred Mutua when asked to comment on the legality of the opposition members being brought into the government.
How to say "no comment" in Kenya: “The matter is in court and therefore sub judice” - Latest to use the phrase is Dr Alfred Mutua when asked to comment on the legality of the opposition members being brought into the government.
KTN: Asleep at the wheel
KTN (Kenya Television Network), Kenya’s leading news station, has made two programming errors in the last two days that have greatly disappointed me:
(1) They ran some new show in place of the Sopranos on Monday night. They are right in the middle of showing Season 3 of the Soprano’s - and with no notice they ran some drama program (i think it was about a deaf FBI agent - I was too traumatized to remember the name, or even watch) Shame!
(2) This morning, they were showing CNN as usual, and the New Airbus 380 was lined up on the runway, about to take off on its maiden flight. 5 minutes before this historic flight, someone at KTN flipped the channel away from CNN and they showed a comedy (again I am too shocked to remember the name – it has some smart kid who drives his parents mad). I changed to Sky News who showed the plane taking off until it flew into the horizon before they resumed their normal news - and BBC did the same things also (shown on KBC). Nation TV and Citizen get a pass because they were already showing something else, but some producer at KTN consciously cut out this once in a lifetime viewing experience. Damn, Shame!
(1) They ran some new show in place of the Sopranos on Monday night. They are right in the middle of showing Season 3 of the Soprano’s - and with no notice they ran some drama program (i think it was about a deaf FBI agent - I was too traumatized to remember the name, or even watch) Shame!
(2) This morning, they were showing CNN as usual, and the New Airbus 380 was lined up on the runway, about to take off on its maiden flight. 5 minutes before this historic flight, someone at KTN flipped the channel away from CNN and they showed a comedy (again I am too shocked to remember the name – it has some smart kid who drives his parents mad). I changed to Sky News who showed the plane taking off until it flew into the horizon before they resumed their normal news - and BBC did the same things also (shown on KBC). Nation TV and Citizen get a pass because they were already showing something else, but some producer at KTN consciously cut out this once in a lifetime viewing experience. Damn, Shame!
Up and Down
Two corporations going in different directions:
Kenya Airways
Going up is Kenya Airways, which has too much business and is at maximum capacity on some routes. Even before Regional Air stopped flights, KQ to Mombasa was always difficult to find seats. Now it is virtually impossible, and travel agents are calling people with Mombasa tickets to see if they will surrender them to others with more urgent travel plans. The airline, which routinely bumps passengers off flights, has just received its new 322 seat Boeing 777. Their stock price has tripled in the last year from 8 shillings to 25 shillings and – only the blip is its poor human resource management: while low morale as signified by numerous drug trafficking cases involving airline staff, the notoriously unprofessional hiring and placement of staff has not been addressed.
Also, success is not without difficulty - At the 777 launch on Monday, KQ management appealed to the Government to provide Visa’s for West African (Nigerian) travellers who connect at Jomo Kenyatta Airport (Nairobi) for flights to Dubai and Asia. Last year, it was the Nigerian High Commissioner to Kenya who lamented the poor treatment of his citizens and requested KQ and the Kenya government to treat them better. The Government has however not been very helpful in this regard, and is still reluctant to issue even emergency visas - and most of these transit passengers have to sleep in the airport on uncomfortable plastic chairs. A new hotel is being built at the airport, hopefully that will settle the matter and prevent this becoming an full-blown diplomatic incident.
Uchumi Supermarkets
Going down is Uchumi, who yesterday Uchumi announced that they had hired a new Finance and Strategy Director, Richard Henry. Uchumi shares have lost half their value (now 14 down from 30) and they have closed almost half their stores. Staff at most of the remaining open stores are an unhelpful, de-moralized lot, and their shelves are bare – while rival Nakumatt have opened new lines of home products, restaurants, book shops, which Uchumi doesn’t have - they probably can’t entice new suppliers with their poor payment record. And except for the Ngong Road Hyper store, most of the others are just lifeless, with staff seeming unsure about their jobs (some don't even wear uniforms). Uchumi needs a whole new re-birth, and to update their blood red colours which don't scream "cool supermarket with great products." They didn't have sugar yesterday, so I bought a kilo at a the neighbourhood police canteen.
Meanwhile the new Nakumatt Lifestyle (in downtown Nairobi) doesn’t appear to have caught the public’s attention yet. Nakumatt has now launched a blitz of television advertisements, something I can’t recall them doing for any of their other stores, that have found successes by wowing Nairobians with their product and service range. I suspect the problem is the location of the store, which is near one corner of the city in the University Area. Because of the proximity of the very busy (in a good way) Koinange Street, driving to the new store through the endless traffic jams in the area is a hassle that many motorists are not ready to go through. Even though they have basement parking, shoppers have shown a preference for avoiding shopping within the city specially on weekends - also the store doesn’t have the eateries, amusement and entertainment shops that have made other Nakumatt’s very popular.
Kenya Airways
Going up is Kenya Airways, which has too much business and is at maximum capacity on some routes. Even before Regional Air stopped flights, KQ to Mombasa was always difficult to find seats. Now it is virtually impossible, and travel agents are calling people with Mombasa tickets to see if they will surrender them to others with more urgent travel plans. The airline, which routinely bumps passengers off flights, has just received its new 322 seat Boeing 777. Their stock price has tripled in the last year from 8 shillings to 25 shillings and – only the blip is its poor human resource management: while low morale as signified by numerous drug trafficking cases involving airline staff, the notoriously unprofessional hiring and placement of staff has not been addressed.
Also, success is not without difficulty - At the 777 launch on Monday, KQ management appealed to the Government to provide Visa’s for West African (Nigerian) travellers who connect at Jomo Kenyatta Airport (Nairobi) for flights to Dubai and Asia. Last year, it was the Nigerian High Commissioner to Kenya who lamented the poor treatment of his citizens and requested KQ and the Kenya government to treat them better. The Government has however not been very helpful in this regard, and is still reluctant to issue even emergency visas - and most of these transit passengers have to sleep in the airport on uncomfortable plastic chairs. A new hotel is being built at the airport, hopefully that will settle the matter and prevent this becoming an full-blown diplomatic incident.
Uchumi Supermarkets
Going down is Uchumi, who yesterday Uchumi announced that they had hired a new Finance and Strategy Director, Richard Henry. Uchumi shares have lost half their value (now 14 down from 30) and they have closed almost half their stores. Staff at most of the remaining open stores are an unhelpful, de-moralized lot, and their shelves are bare – while rival Nakumatt have opened new lines of home products, restaurants, book shops, which Uchumi doesn’t have - they probably can’t entice new suppliers with their poor payment record. And except for the Ngong Road Hyper store, most of the others are just lifeless, with staff seeming unsure about their jobs (some don't even wear uniforms). Uchumi needs a whole new re-birth, and to update their blood red colours which don't scream "cool supermarket with great products." They didn't have sugar yesterday, so I bought a kilo at a the neighbourhood police canteen.
Meanwhile the new Nakumatt Lifestyle (in downtown Nairobi) doesn’t appear to have caught the public’s attention yet. Nakumatt has now launched a blitz of television advertisements, something I can’t recall them doing for any of their other stores, that have found successes by wowing Nairobians with their product and service range. I suspect the problem is the location of the store, which is near one corner of the city in the University Area. Because of the proximity of the very busy (in a good way) Koinange Street, driving to the new store through the endless traffic jams in the area is a hassle that many motorists are not ready to go through. Even though they have basement parking, shoppers have shown a preference for avoiding shopping within the city specially on weekends - also the store doesn’t have the eateries, amusement and entertainment shops that have made other Nakumatt’s very popular.
Tuesday, April 26, 2005
Running Through Kenya
A Slate magazine writer visits Iten (near Eldoret) to discover how Kenyans produce so many great athletes [a week long writing series]
Medical Insurance Crisis
Many insurance companies are refusing the opportunity to provide medical insurance for some huge state corporations: Why? Because of fraud and abuse of the system. Other providers such as Madison and UAP are not taking new clients, but will continue to service their previous customers. In past years, some insurance companies received premiums of over 100 million shillings for the year, only to realise that this amount has been exhausted within six months. They have now become vigilant and examine each cost item and refuse to pay for frivolous or fraudulent cases.
This is because the doctors and lawyers have colluded with staff of these corporations and come up with fraudulent costs that have been submitted for payment. Members of staff have given membership cards to relatives/friends to use. Once a hospital knows you’re a senior official covered by the government, they will often recommend their own doctors who will ask for a whole battery of unnecessary tests and operations and observation by other “specialist doctors ” who are hurriedly summoned by the hospital to attend to a very important patient. These doctors then all invoice the medical service provider at their own rates.
Parliament’s next multi-million scam
According to the East African, members of parliament will now have expanded medical coverage for two wives/spouses and eight children (up from 4) from a joint package by insurer's AON Minet & ICEA who will receive Kshs. 32 million a year in premiums from the National Assembly. Other bidders were Madison (33m) Great Five (66m) and Jubilee (75). The previous provided AAR, which covered all 222 MP’s for 32 million last year (and says it lost 8 m) now wanted 92 million shillings. Don’t be surprised if AON/ICEA come crying after 3 months saying MP’s have exhausted their premiums because the package provides that an MP can be admitted to any hospital in the world as long as it is recommended by their doctor for specilaised treatment. Since the scheme is not contributory, you can expect the insurers to come and ask Kenyan taxpayers to top up the MP’s medical pool.
New thought on NSHIS
I have been opposed to the new medical scheme (Ngilu’s NSHIS) because it’s an extra huge tax out or my pocket and it gives me less coverage than I already have. However doctors are vehemently opposed to the new scheme because their costs will be controlled. Right now they can invoice whatever they want to the National Hospital Insurance Fund.
A medical insider told me that in the long run, the only two insurer's will survive, AAR and Resolution. AAR - because they control a great percentage of costs by having their own clinics, generic drugs and also have their own doctors who are the only ones authorized to allow patients to be operated on.
This is because the doctors and lawyers have colluded with staff of these corporations and come up with fraudulent costs that have been submitted for payment. Members of staff have given membership cards to relatives/friends to use. Once a hospital knows you’re a senior official covered by the government, they will often recommend their own doctors who will ask for a whole battery of unnecessary tests and operations and observation by other “specialist doctors ” who are hurriedly summoned by the hospital to attend to a very important patient. These doctors then all invoice the medical service provider at their own rates.
Parliament’s next multi-million scam
According to the East African, members of parliament will now have expanded medical coverage for two wives/spouses and eight children (up from 4) from a joint package by insurer's AON Minet & ICEA who will receive Kshs. 32 million a year in premiums from the National Assembly. Other bidders were Madison (33m) Great Five (66m) and Jubilee (75). The previous provided AAR, which covered all 222 MP’s for 32 million last year (and says it lost 8 m) now wanted 92 million shillings. Don’t be surprised if AON/ICEA come crying after 3 months saying MP’s have exhausted their premiums because the package provides that an MP can be admitted to any hospital in the world as long as it is recommended by their doctor for specilaised treatment. Since the scheme is not contributory, you can expect the insurers to come and ask Kenyan taxpayers to top up the MP’s medical pool.
New thought on NSHIS
I have been opposed to the new medical scheme (Ngilu’s NSHIS) because it’s an extra huge tax out or my pocket and it gives me less coverage than I already have. However doctors are vehemently opposed to the new scheme because their costs will be controlled. Right now they can invoice whatever they want to the National Hospital Insurance Fund.
A medical insider told me that in the long run, the only two insurer's will survive, AAR and Resolution. AAR - because they control a great percentage of costs by having their own clinics, generic drugs and also have their own doctors who are the only ones authorized to allow patients to be operated on.
Buy this book or we sh*t in your car
Coming Soon is a novel “Last Orders at Harrods: An African Tale” by Michael Holman, that is about two and is set in a fictional country, but is actually Kenya. It will be launched in Nairobi in May and 1,000 special copies will be made available to be sold by Nairobi street kids at a discounted price of 200 shillings (down from £10) that is more affordable for Kenyans - and street kids will keep the proceeds of the books they sell.
Tomorrow will see the first flight of the world's biggest airliner, the Airbus 380 (which should be live on both CNN and Sky news)
Kenya Airways new 777 arrived with less fanfare than the first one last year, which was the first to operated in sub-Saharan Africa.
In the Kenya gazette, several air licenses have been applied for including 5 (from various airlines wanting to fly to/from Tanzania) 2 to use Eldoret airport (one Eld-Sudan, and one for Eld-Dubai) and also four airlines to fly from Europe to Mombasa (avoiding Nairobi) – these are Monarch (Gatwick-Msa), Euro Atlantic (Brussels-Msa), African Safari Air (based in Msa and Air Plus Comet (Madrid-Nairobi)
Bankelele
Are Safaricom and Celtel the new Telkom?
Cellphone companies are no longer new kids on the block in Africa; they are now showing some grey hairs:
- Even with two or three operators in a country market, there is surprisingly little price competition.
- Prices for local mobile calls are between five to ten times higher than their fixed line equivalents. You pay a premium for the advantages of mobility even though the cost of connecting a mobile subscriber is between a quarter to a third of its fixed line equivalent.
- Even with two or three operators in a country market, there is surprisingly little price competition.
- Prices for local mobile calls are between five to ten times higher than their fixed line equivalents. You pay a premium for the advantages of mobility even though the cost of connecting a mobile subscriber is between a quarter to a third of its fixed line equivalent.
Celeb watch
- Safaricom MD Michael Joseph: front seat of a range-rover (un-tinted) reading the newspaper as he was driven toward Westlands. No bodyguard, no chase car (how cool is that?)
- President Kibaki: arriving at KICC for a function. Much smaller motorcade (about 20 cars) and Police only stopped traffic as he was driving past – a big improvement from a few months ago when they would shut roads 20 minutes before he passed.
- Singer Eric Wainaina getting in to a lift at Quuensway House. Still has those baby dreadlocks
- Nation TV reporter, Rita Tinina entering Nation Centre as she returned from the field.
- Former MP, Kimani Wanyoike, walking up Standard Street near Trattoria, still wearing a bowtie
- Former TI Boss, Gladwell Otieno: having a quiet evening out at Kengeles Lavington with some friends on Saturday night.
- Assistant Minister, Mwangi Kiunjui walking past Lonrho House.
- President Kibaki: arriving at KICC for a function. Much smaller motorcade (about 20 cars) and Police only stopped traffic as he was driving past – a big improvement from a few months ago when they would shut roads 20 minutes before he passed.
- Singer Eric Wainaina getting in to a lift at Quuensway House. Still has those baby dreadlocks
- Nation TV reporter, Rita Tinina entering Nation Centre as she returned from the field.
- Former MP, Kimani Wanyoike, walking up Standard Street near Trattoria, still wearing a bowtie
- Former TI Boss, Gladwell Otieno: having a quiet evening out at Kengeles Lavington with some friends on Saturday night.
- Assistant Minister, Mwangi Kiunjui walking past Lonrho House.
Monday, April 25, 2005
Info for shareholders
At the end of the E A Cables AGM, Peter Waiyaki, chief executive of the Central Depository & Settlement Corporation answered questions on the new system of trading shares on the Nairobi Stock Exchange (See linked article: NSE's New Way of Doing Business) He mentioned that:
- Even if you don’t intend to trade your shares, you should open a CDS account. You can open an account, and not put your share in, as you wait for new opportunities to trade
- The Kengen IPO and future new offerings will be done though CDS only (no more paper share certificates)
- With CDS trading is faster (if you sell shares you broker should have your cheque within five days)
- one day you’ll be able to trade though internet, but now
- is confidential: only you, your broker and CDSC know what’s in your account
- if you want to transfer shares to a friend or relative, you still have to go though your broker and fill out transfer forms
- you can get old certificate back after immobilization, (some people like to hang share certificates in their office) at a cost of 500 shillings each
- with CDS, it is easier for you to pledge shares as collateral for a bank loan
- Even if you don’t intend to trade your shares, you should open a CDS account. You can open an account, and not put your share in, as you wait for new opportunities to trade
- The Kengen IPO and future new offerings will be done though CDS only (no more paper share certificates)
- With CDS trading is faster (if you sell shares you broker should have your cheque within five days)
- one day you’ll be able to trade though internet, but now
- is confidential: only you, your broker and CDSC know what’s in your account
- if you want to transfer shares to a friend or relative, you still have to go though your broker and fill out transfer forms
- you can get old certificate back after immobilization, (some people like to hang share certificates in their office) at a cost of 500 shillings each
- with CDS, it is easier for you to pledge shares as collateral for a bank loan
Friday, April 22, 2005
Kenyan version of the OJ trial
Tom Gilbert Delamere grandson of Lord Delamere will be charged with murdering a wildlife ranger who was conducting an investigation on the illegal sale of bushmeat by Delamere's farm.
It will be interesting to see how the case will play out. Kenyan prosecutors have proved to be so inept in high-profile cases and are frequently let down by poor police investigations. It’s like Christoper Darden vs. Johnnie Cochran as high-priced and polished defence lawyers make mince meat of state prosecutors. In the past, (White) Kenyan Minister Bruce Mackenzie killed a Kenyan at the Coast and was acquited I believe on manslaughter charges, while some American sailors were were released after been found guilty of murdering a prostitute in the early 80's in Mombasa.
Now we’ll see if it is possible to convict a white Kenyan for murdering a black government official in the line of duty.
It will be interesting to see how the case will play out. Kenyan prosecutors have proved to be so inept in high-profile cases and are frequently let down by poor police investigations. It’s like Christoper Darden vs. Johnnie Cochran as high-priced and polished defence lawyers make mince meat of state prosecutors. In the past, (White) Kenyan Minister Bruce Mackenzie killed a Kenyan at the Coast and was acquited I believe on manslaughter charges, while some American sailors were were released after been found guilty of murdering a prostitute in the early 80's in Mombasa.
Now we’ll see if it is possible to convict a white Kenyan for murdering a black government official in the line of duty.
EA Cables AGM
East African Cables Ltd. held their 40th annual general meeting at Holiday Inn, Westlands on the morning of Thursday April 21st. About 70 shareholders showed up, in an 80 capacity room, which is about par with previous years.
The AGM was a no-nonsense affair, as shareholders were genuinely happy with the company whose share price has shot up from 13 shillings to 67 shillings within a year since a change of ownership and management in 2004. The company’s earnings per share increased from 0.46 to 6.11 shillings per share and it also paid a total dividend in the year of 3.5 shillings. Most questions dealt with the company’s main customer (Kenya Power & Lighting Company) and the previous majority owner (Sameer Group). Official matters concluded in about 30 minutes, and were followed by a buffet lunch, poolside at the Holiday Inn (for once, there wasn’t any major food drama)
Interesting note
After attending a few AGM’s, you start to notice some familiar faces i.e. people who own shares in all these companies and have time to attend them. Allegedly there’s one gentleman who owns a few shares in most of the 47 NSE companies and attends these functions for the perks and prestige (always gets to ask a question). Also there are some other men who are reputed to own significant shares in some of these companies - and who are even listed in the company accounts as being among the top 10 shareholders.
Best move
The Board of EA Cables invited the head of the central depository system to talk about the new way of trading shares and shareholders had tons of questions for him. (making it worthy of a separate blog entry - coming soon)
The AGM was a no-nonsense affair, as shareholders were genuinely happy with the company whose share price has shot up from 13 shillings to 67 shillings within a year since a change of ownership and management in 2004. The company’s earnings per share increased from 0.46 to 6.11 shillings per share and it also paid a total dividend in the year of 3.5 shillings. Most questions dealt with the company’s main customer (Kenya Power & Lighting Company) and the previous majority owner (Sameer Group). Official matters concluded in about 30 minutes, and were followed by a buffet lunch, poolside at the Holiday Inn (for once, there wasn’t any major food drama)
Interesting note
After attending a few AGM’s, you start to notice some familiar faces i.e. people who own shares in all these companies and have time to attend them. Allegedly there’s one gentleman who owns a few shares in most of the 47 NSE companies and attends these functions for the perks and prestige (always gets to ask a question). Also there are some other men who are reputed to own significant shares in some of these companies - and who are even listed in the company accounts as being among the top 10 shareholders.
Best move
The Board of EA Cables invited the head of the central depository system to talk about the new way of trading shares and shareholders had tons of questions for him. (making it worthy of a separate blog entry - coming soon)
Am-Ex: Don’t leave for shags without it
American Express has signed a deal with Barclays (Barclaycard) and the A-Ex will be available in Kenya from May 1. Barclays currently issues Visa cards, but so many banks (KCB, NBK, Co-op, CBA, Prime etc) now have cards from Visa that they no longer have the prestige and exclusivity that Barclays wants to project. Operations will be process via Barclaycard centre, Nairobi and teh Am-Ex card will later be rolled out in eight other African countries.
Mis-used Police
In the month of March, the police collected 29.3 million from traffic enforcement, with 15.4 million coming from Nairobi drivers. While most of the 17,966 violators in Nairobi were matatu’s (or PSV), the police also booked 328 drivers for speeding, 1,095 for double parking, and 281 for reflective material (tinted windows).
Meanwhile the LSK points out that there is no Kenyan law banning tinted windows (only reflective as seen on some minister’s cars) and Nation TV also points out that most new cars these days are built with dark windows. Withing government, there are conflicting views on tinted windows (the Transport PS and Govt. spokesman have denied the law exists - and in true government style, have formed a committee to look into teh matter) and it appears that the Police have no idea why they have been asked to enforce this law. In Kenya you can be car-jacked in a convertible, and probably drive past a police roadblock, so the idea that it’s stop criminals does not hold water.
Also on Wednesday night while watching the Arsenal Chelsea game, we had an audience of at least ten policemen who arrived in two police patrotrucks to settle a midnight verbal dispute (not a fight) at a Nairobi West bar - surely there’s enough crime elsewhere in the city to occupy their time better.
Meanwhile the LSK points out that there is no Kenyan law banning tinted windows (only reflective as seen on some minister’s cars) and Nation TV also points out that most new cars these days are built with dark windows. Withing government, there are conflicting views on tinted windows (the Transport PS and Govt. spokesman have denied the law exists - and in true government style, have formed a committee to look into teh matter) and it appears that the Police have no idea why they have been asked to enforce this law. In Kenya you can be car-jacked in a convertible, and probably drive past a police roadblock, so the idea that it’s stop criminals does not hold water.
Also on Wednesday night while watching the Arsenal Chelsea game, we had an audience of at least ten policemen who arrived in two police patrotrucks to settle a midnight verbal dispute (not a fight) at a Nairobi West bar - surely there’s enough crime elsewhere in the city to occupy their time better.
The Kibaki MemeBlogThis! (tHiNkEr's rOoM)
1 a. Do u think Kibaki is LAZY?
By all indications yes he is lazy. It’s his nature, countless articles have been written about his fence sitting, shying from battles over the last 20 years. He has an enormous office with so much power, doesn’t have the confidence to use them – but is happy to let his minions step up to bat for him. Or he probably doesn’t want to exert himself for health reasons. But Lucy clearly enjoys the office more than he does, and has upped her energy level to a point where it appears she’s the one dragging him around.
2 a. What trait do u find the single most detrimental to the national cause?
Our political system
2 b. Comment on it
No politician has a grasp on national issues, except for maybe Anyang Nyongo but he’s a voice in the wilderness. Actually politicians are quite smart, but they must play to the masses – and so go about delivering incoherent statements while grabbing what they can. They haven’t realised that the Kenyan electorate is younger, more intelligent, and ready for dialogue on the economy, jobs and development.
Also politics is a dirty game, and smart intelligent people will rarely demean themselves by getting into expensive bruising campaigns – so come election time voters can only choose between Neanderthal A or Neanderthal B. So one feature I like about the new constitution will be that ministers will not be members of parliament.
3. What is the most embarrassing thing, in your opinion, Lucy Kibaki has done?
Believing her own hype (reminds me of a certain lady on the Muppet show)
4. Do you wonder where Wambui, the Hillary Rodham of Kenya, ever went?
Lying low, she knows better than to cross Lucy.
5. Do you care how much influence the First Lady has over decisions made by the president?
One day, about 25 years ago, somebody poured a beer on the vice president’s head, in front of strangers - so yes, I do care. On a positive note, Kenyans will now take a look at candidate’s spouse before elections.
6. What is the single most critical issue facing the Kenyan presidency today?
Getting accurate intelligence information about the Country.
7. Did you vote in 2002 General Elections? (must answer). No excuses required.
No, I was not registered – now I am
8 a. Do you care?
yes
8 b. Who else would you like to complete this meme
Kenyan Pundit, Guessaurus, Ms K, Afromusing, everyone really
By all indications yes he is lazy. It’s his nature, countless articles have been written about his fence sitting, shying from battles over the last 20 years. He has an enormous office with so much power, doesn’t have the confidence to use them – but is happy to let his minions step up to bat for him. Or he probably doesn’t want to exert himself for health reasons. But Lucy clearly enjoys the office more than he does, and has upped her energy level to a point where it appears she’s the one dragging him around.
2 a. What trait do u find the single most detrimental to the national cause?
Our political system
2 b. Comment on it
No politician has a grasp on national issues, except for maybe Anyang Nyongo but he’s a voice in the wilderness. Actually politicians are quite smart, but they must play to the masses – and so go about delivering incoherent statements while grabbing what they can. They haven’t realised that the Kenyan electorate is younger, more intelligent, and ready for dialogue on the economy, jobs and development.
Also politics is a dirty game, and smart intelligent people will rarely demean themselves by getting into expensive bruising campaigns – so come election time voters can only choose between Neanderthal A or Neanderthal B. So one feature I like about the new constitution will be that ministers will not be members of parliament.
3. What is the most embarrassing thing, in your opinion, Lucy Kibaki has done?
Believing her own hype (reminds me of a certain lady on the Muppet show)
4. Do you wonder where Wambui, the Hillary Rodham of Kenya, ever went?
Lying low, she knows better than to cross Lucy.
5. Do you care how much influence the First Lady has over decisions made by the president?
One day, about 25 years ago, somebody poured a beer on the vice president’s head, in front of strangers - so yes, I do care. On a positive note, Kenyans will now take a look at candidate’s spouse before elections.
6. What is the single most critical issue facing the Kenyan presidency today?
Getting accurate intelligence information about the Country.
7. Did you vote in 2002 General Elections? (must answer). No excuses required.
No, I was not registered – now I am
8 a. Do you care?
yes
8 b. Who else would you like to complete this meme
Kenyan Pundit, Guessaurus, Ms K, Afromusing, everyone really
Thursday, April 21, 2005
Family Finance in 2004
Family Finance Building Society (FFBS) has announced several times their intent to follow in the footsteps of Equity Building Society, (EBS) and become a Bank. Family Finance ended the year with assets of 2.45 billion (up from 2.2) which is bigger than some small banks. It has 2 billion in deposits (compared to Equity's 5 billion), of which it has placed 800m in other banks, and advanced 1.1 billion as loans to customers.
But, they had a very poor 2004, with net interest income of 55m (down from 174), fee income of 87m(compared to 287 m in 2003) and total operating income of 143m (down from 479m in 2003). The Bank dealt with this reduced income by reducing staff costs to 42m (from 103m), leases 17m (from 94m) and other expenses 19m (down from 10m) resulting in an overall reduction of total operating expenses of 94 million (down from 388 million) - thus they ended the year with a profit of 49 million which was down from 91 million in 2003.
But, they had a very poor 2004, with net interest income of 55m (down from 174), fee income of 87m(compared to 287 m in 2003) and total operating income of 143m (down from 479m in 2003). The Bank dealt with this reduced income by reducing staff costs to 42m (from 103m), leases 17m (from 94m) and other expenses 19m (down from 10m) resulting in an overall reduction of total operating expenses of 94 million (down from 388 million) - thus they ended the year with a profit of 49 million which was down from 91 million in 2003.
more mortgage
Investment & Mortgages Bank (I&M) Home Loan
Use it to purchase home, develop home on previously purchased land, renovations, buy a home under construction by a reputable developer, or refinance an existing mortgage
- Who’s eligible?: Senior corporate managers & employees, self-employed professional of good repute, or owners of stable businesses
- Loan: minimum 1 million, maximum 10, million, and I&M will finance up to 80% of property value or purchase price. – can be repaid between 1 and 15 years
Interest is on reducing balance at base +3%
- Fees include: (1) before approval application (5,000), valuation fee (between 4,000 and 10,000) (2) after approval: processing fee (0.5%, legal fees (22,000 – 40,000) mortgage insurance (5,000 – 36,000) and processing fee (1%)
- Typical loan: To buy your 6 million shilling ($75,000) home, I&M will finance 4.8 million ($60,000), and typical annual repayment at 16% will go from 450,000 ($5,625) in year 1 to 70,000 ($875) in year 15 [base rate at most banks now is 13%]
Use it to purchase home, develop home on previously purchased land, renovations, buy a home under construction by a reputable developer, or refinance an existing mortgage
- Who’s eligible?: Senior corporate managers & employees, self-employed professional of good repute, or owners of stable businesses
- Loan: minimum 1 million, maximum 10, million, and I&M will finance up to 80% of property value or purchase price. – can be repaid between 1 and 15 years
Interest is on reducing balance at base +3%
- Fees include: (1) before approval application (5,000), valuation fee (between 4,000 and 10,000) (2) after approval: processing fee (0.5%, legal fees (22,000 – 40,000) mortgage insurance (5,000 – 36,000) and processing fee (1%)
- Typical loan: To buy your 6 million shilling ($75,000) home, I&M will finance 4.8 million ($60,000), and typical annual repayment at 16% will go from 450,000 ($5,625) in year 1 to 70,000 ($875) in year 15 [base rate at most banks now is 13%]
Wednesday, April 20, 2005
To Quote
“the individual and collective sacrifices made by the family members, the strength on which these successes were built, will be easily diluted if the business is floated to the public on the stock exchange,” -- comments Manoj Shah, MD Kingsway Group [(Village market, Charterhouse Bank, Kingsway Tyres, Digital World (Samsung)] on why many family run businesses do now want to go public by selling shares through the Nairobi Stock Exchange.
For better or for worse: How politicians can shape ICT and a country's future
Once a leader in Internet innovation, the United States has fallen far behind Japan and other Asian states in deploying broadband and the latest mobile-phone technology.
Tuesday, April 19, 2005
Mortgage 2005
The 2005 Homes Expo was held at Sarit Centre over the weekend. Various financial institutions were represented at the fair all offering various mortgage products. While HFCK and Savings & Loan (KCB) have been in the mortgage business for years, low interest rates beginning in 2003 caused Barclays, Standard Chartered and other banks to enter this market.
Others mortgage players not represented at the fair include: Credit Unions, East Africa Building Society (about to merge with Akiba Bank), Commercial Bank of Africa, I&M Bank and NIC Bank.
Some general facts
- For comparison purposes, I used a typical 6 million shilling ($75,000) property such as a 3 bedroom flat in Kilimani or a 4 bedroom maisonette in South C
- The longer the mortgage period, the higher the interest rate
- While most loans are variable rates, recently some banks have introduced fixed-rate mortgages
- Banks finance less (i.e. higher down payment) if you don’t live in the property
- Banks finance less for properties out of major towns (or not at all)
Barclays
Barclays will finance up to 85%, loan repayable over 15 years at a variable rate of 12.5%. You can use the facility to build new home, transfer your current mortgage, or borrow against your property (an equity release) to meet other financial obligations.
To buy your 6 million home, your down payment is 900,000 ($11,250) and Barclays will finance 5.1 million ($63,750). Annual repayments on the 5.1 million will range from 445,000 ($5,600) in year 1 and reduce to 62,000 ($775) in year 15.
Housing Finance Company of Kenya (HFCK)
Has a 3-plan mortgage scheme;
(1) Startup Plan mortgage: 10 to 15 year mortgage designed for 1st time borrowers
(2) House Plan mortgage: 5 to 10 year mortgage – for those who want to repay mortgage faster e.g. are closer to retirement
(3) Ace Plan mortgage: less than 5 years for those who have higher disposable incomes or are making investments
You can use HFCK loans for owner-occupied (you live there), investment residential (you don’t live there) equity release, construction loans & residential plots (maximum of 2 years for development to begin) purposes. Generally they finance up to 80% if you live there, 70% if you don’t.
- Interest rate is what gets some HFCK borrower into trouble. Their current base rate is 13.75 p.a. and in the StartUp Plan (for the 6 million shilling house) you pay Base +4% p.a. If you prove to be a good with your repayments, you get a discount of 1% p.a., but if you fall behind on repayments, you arrears attract an interest rate of base +5%.
- Closing costs are at least 5% of market value (including 4% stamp duty, 1% commitment fee, and other fees)
- Your 6 million house for 1st time borrowers falls into the Start up mortgage and after a down payment of 1.2 million ($15,000), HFCK will finance 4.8 million ($60,000)
KCB through their subsidiary “Savings & Loan Kenya Ltd.”
- Loans are charged 12.5% for up to 15 years for residential house or flats, and 12% for estate development.
- They finance up to 80% of property in Nairobi, Mombasa, Kisumu, Nakuru and Thika and only 70% if it is a property you’re not living in or are located in another town (i.e. you increase your down payment from 20% to 30%)
- Their loans are available to any borrower with repayment ability, but for salaried people the loan maximum is such that repayments must not exceed more than 2/3 of your net monthly salary
- Typical fees include: appraisal fee (1%), ledger fees 350 shillings/month, legal fees, stamp duty (4%), registration fee (0.2%)
- Typical repayment: To buy your 6 million shilling house, your down payment is 1.2 million ($15,000) and KCB will finance the remaining 80% (4.8 million $60,000). Repayment in year 1 will be about 450,000 (5,625) in year 1, and reduce to 70,000 ($875) in year 15
Standard Chartered
With Stanchart, you can build new home, transfer your current mortgage or borrow against your property (an equity release) to meet other financial obligations and the Bank says that loans are approved within 48 hours.
- This is at a fixed interest rate for up to 10 years is 14.5%, up to 15 years is 15.5%, and they finance up to 85% of property financed i.e. you put 15% down payment
- To buy your 6 million home, down payment is 900,000 ($11,250) and Stanchart will finance 5.1 million ($63,750) – and over the 15 years, repayments on the 5.1 million loan will be 72,000 per month.
- They also have a variable rate mortgage, which will result in monthly repayments of about 68,000 per month over 15 years to but your 6 million shilling home.
Others mortgage players not represented at the fair include: Credit Unions, East Africa Building Society (about to merge with Akiba Bank), Commercial Bank of Africa, I&M Bank and NIC Bank.
Some general facts
- For comparison purposes, I used a typical 6 million shilling ($75,000) property such as a 3 bedroom flat in Kilimani or a 4 bedroom maisonette in South C
- The longer the mortgage period, the higher the interest rate
- While most loans are variable rates, recently some banks have introduced fixed-rate mortgages
- Banks finance less (i.e. higher down payment) if you don’t live in the property
- Banks finance less for properties out of major towns (or not at all)
Barclays
Barclays will finance up to 85%, loan repayable over 15 years at a variable rate of 12.5%. You can use the facility to build new home, transfer your current mortgage, or borrow against your property (an equity release) to meet other financial obligations.
To buy your 6 million home, your down payment is 900,000 ($11,250) and Barclays will finance 5.1 million ($63,750). Annual repayments on the 5.1 million will range from 445,000 ($5,600) in year 1 and reduce to 62,000 ($775) in year 15.
Housing Finance Company of Kenya (HFCK)
Has a 3-plan mortgage scheme;
(1) Startup Plan mortgage: 10 to 15 year mortgage designed for 1st time borrowers
(2) House Plan mortgage: 5 to 10 year mortgage – for those who want to repay mortgage faster e.g. are closer to retirement
(3) Ace Plan mortgage: less than 5 years for those who have higher disposable incomes or are making investments
You can use HFCK loans for owner-occupied (you live there), investment residential (you don’t live there) equity release, construction loans & residential plots (maximum of 2 years for development to begin) purposes. Generally they finance up to 80% if you live there, 70% if you don’t.
- Interest rate is what gets some HFCK borrower into trouble. Their current base rate is 13.75 p.a. and in the StartUp Plan (for the 6 million shilling house) you pay Base +4% p.a. If you prove to be a good with your repayments, you get a discount of 1% p.a., but if you fall behind on repayments, you arrears attract an interest rate of base +5%.
- Closing costs are at least 5% of market value (including 4% stamp duty, 1% commitment fee, and other fees)
- Your 6 million house for 1st time borrowers falls into the Start up mortgage and after a down payment of 1.2 million ($15,000), HFCK will finance 4.8 million ($60,000)
KCB through their subsidiary “Savings & Loan Kenya Ltd.”
- Loans are charged 12.5% for up to 15 years for residential house or flats, and 12% for estate development.
- They finance up to 80% of property in Nairobi, Mombasa, Kisumu, Nakuru and Thika and only 70% if it is a property you’re not living in or are located in another town (i.e. you increase your down payment from 20% to 30%)
- Their loans are available to any borrower with repayment ability, but for salaried people the loan maximum is such that repayments must not exceed more than 2/3 of your net monthly salary
- Typical fees include: appraisal fee (1%), ledger fees 350 shillings/month, legal fees, stamp duty (4%), registration fee (0.2%)
- Typical repayment: To buy your 6 million shilling house, your down payment is 1.2 million ($15,000) and KCB will finance the remaining 80% (4.8 million $60,000). Repayment in year 1 will be about 450,000 (5,625) in year 1, and reduce to 70,000 ($875) in year 15
Standard Chartered
With Stanchart, you can build new home, transfer your current mortgage or borrow against your property (an equity release) to meet other financial obligations and the Bank says that loans are approved within 48 hours.
- This is at a fixed interest rate for up to 10 years is 14.5%, up to 15 years is 15.5%, and they finance up to 85% of property financed i.e. you put 15% down payment
- To buy your 6 million home, down payment is 900,000 ($11,250) and Stanchart will finance 5.1 million ($63,750) – and over the 15 years, repayments on the 5.1 million loan will be 72,000 per month.
- They also have a variable rate mortgage, which will result in monthly repayments of about 68,000 per month over 15 years to but your 6 million shilling home.
Other News (non political)
New Celtel Service
Me2U service allows a Celtel subscriber to share airtime with another Celtel user. I.e. you can transfer credit, already in your phone of any amount (from 50 to 10,000 shillings) to another celtel user. (Unlike with Safaricom, where you have to buy new airtime/Credit, in order to send it so eomeone else). This is a new way of money transfer, it can also be a new way of fleecing as many corporate customers get credit sent to their phones, and have no choice but to talk till hey drop, but now they can offload some of their excess airtime to friends and relatives, or even sell them at discounts to other people.
Ringera hiring staff
In the papers of April 19th, the Kenya Anti-Corruption Authority (KACA) has advertised for at least 38 job openings. These include auditors, valuers, engineers, researchers, and legal assistants, but with the bulk being administrative positions. Deadline is May 5th.
Broadband Kenya
In the space of a week, two companies have introduced broadband services.
(1 Access Kenya: Launched Broadband Max incorporates a 64k uplink and 128k downlink at the same price targeted at corporate customers and access guarantees. AK say deregulation of the market place has brought about extra bandwidth
(2) Telkom Kenya: Launched Broadband Access via “optic fibre” for voice and data services and can be used for broadband internet access, VOIP, Cable TV, video conferencing, distance learning and high speed data transfer. It is available in Nairobi only
Kenya Airways strike?
The problem is that there are two competing union – one who the airline is negotiating with, and the other who have declared a strike effective 20th April (both claim to represent all Kenya airways workers except pilots i.e. engineers, ground handling, staff, baggage checkers, others)
Triple A Sues
Triple A sued Kenya Pipeline for 685 million shillings. This is more fallout from one of the 40 corrupt deals cited by Sir Edward Clay and which got the previous MD and Chairman fired from Kenya Pipeline and raised questions of the origin and competence of (finance firm) Triple A. KPC got into a controversial agreement with Triple A to finance a debt of Kshs 2 billion, with the money to be borrowed from Standard Chartered Bank. Triple A would have repaid among others Export Development Corporation (Canada) 1.2 billion at 0.88% per month, Japan Board for International Cooperation 398 million at 0.88% per month over 3 years, JFE Engineering 11.4 million at 0.91%, and Engineering Consultants 136 million over 3 years.
Me2U service allows a Celtel subscriber to share airtime with another Celtel user. I.e. you can transfer credit, already in your phone of any amount (from 50 to 10,000 shillings) to another celtel user. (Unlike with Safaricom, where you have to buy new airtime/Credit, in order to send it so eomeone else). This is a new way of money transfer, it can also be a new way of fleecing as many corporate customers get credit sent to their phones, and have no choice but to talk till hey drop, but now they can offload some of their excess airtime to friends and relatives, or even sell them at discounts to other people.
Ringera hiring staff
In the papers of April 19th, the Kenya Anti-Corruption Authority (KACA) has advertised for at least 38 job openings. These include auditors, valuers, engineers, researchers, and legal assistants, but with the bulk being administrative positions. Deadline is May 5th.
Broadband Kenya
In the space of a week, two companies have introduced broadband services.
(1 Access Kenya: Launched Broadband Max incorporates a 64k uplink and 128k downlink at the same price targeted at corporate customers and access guarantees. AK say deregulation of the market place has brought about extra bandwidth
(2) Telkom Kenya: Launched Broadband Access via “optic fibre” for voice and data services and can be used for broadband internet access, VOIP, Cable TV, video conferencing, distance learning and high speed data transfer. It is available in Nairobi only
Kenya Airways strike?
The problem is that there are two competing union – one who the airline is negotiating with, and the other who have declared a strike effective 20th April (both claim to represent all Kenya airways workers except pilots i.e. engineers, ground handling, staff, baggage checkers, others)
Triple A Sues
Triple A sued Kenya Pipeline for 685 million shillings. This is more fallout from one of the 40 corrupt deals cited by Sir Edward Clay and which got the previous MD and Chairman fired from Kenya Pipeline and raised questions of the origin and competence of (finance firm) Triple A. KPC got into a controversial agreement with Triple A to finance a debt of Kshs 2 billion, with the money to be borrowed from Standard Chartered Bank. Triple A would have repaid among others Export Development Corporation (Canada) 1.2 billion at 0.88% per month, Japan Board for International Cooperation 398 million at 0.88% per month over 3 years, JFE Engineering 11.4 million at 0.91%, and Engineering Consultants 136 million over 3 years.
Monday, April 18, 2005
you may never read a book or watch a movie again
A writer featured in the NY Times is going to make your life more boring, as he reveals that all books and movies tell one of seven stories/plots and can’t deviate from formula. The seven plots are: 1. Overcoming the Monster, 2. Rags to Riches, 3. The Quest, 4. Voyage and Return, 5. Rebirth, 6. Comedy and 7. Tragedy.
Visa appointment system
Applications for visits to the US Embassy in Nairobi can only be made online from now on.
Your Car is an ATM
Traffic Commandant Daudi Kyalo announced that police will crack down on speeding drivers and vehicles with tinted windows – and that motorists will have to pay a fine of 4,000 shillings on the spot or have their vehicle impounded.
This directive compelling motorists to carry huge amounts of cash in their car is wrong. Not many drivers can afford to carry 4,000 shillings, and those that can afford to rarely carry large sums of cash, and instead rely on Bank ATM’s, fuel cards and credit cards for their convenience and relative safety.
It is unfortunate that the Police want motorists to risk losing money. The directive will also have unfortunate consequences in that (1) encourages crime: assures car-jackers that each car they target has some cash (2) encourages corruption: ensures that motorists always have enough to bribe police and make the charges disappear.
The Police should not enforce spot fines: A motorist who is sober and driving a road-worthy vehicle should only be ticketed and summoned to appear in court on a given day to answer the Police charge.
This directive compelling motorists to carry huge amounts of cash in their car is wrong. Not many drivers can afford to carry 4,000 shillings, and those that can afford to rarely carry large sums of cash, and instead rely on Bank ATM’s, fuel cards and credit cards for their convenience and relative safety.
It is unfortunate that the Police want motorists to risk losing money. The directive will also have unfortunate consequences in that (1) encourages crime: assures car-jackers that each car they target has some cash (2) encourages corruption: ensures that motorists always have enough to bribe police and make the charges disappear.
The Police should not enforce spot fines: A motorist who is sober and driving a road-worthy vehicle should only be ticketed and summoned to appear in court on a given day to answer the Police charge.
Saturday, April 16, 2005
Friday, April 15, 2005
Good to be Kenyan
One reasons employers in the US like Kenyan [and other (il)legal African] workers is that they have the basis "soft skills" to functions as employees, something that many Americans lack - e.g. punctuality, a willingness to accept supervision, ability to work in a group, reading and math skills and speaking & listening habits.
Corporate Brief's this Week
Banking Bill dead?
The Banking (Amendment) Bill 2004 which has been deferred, may be doomed, in that politicians have taken the rhetoric down to imperialist (foreign banks destroying indigenous business) and tribal (banks are persecuting Central Province mainly) levels. After Finance Minister David Mwiraria heard the views of Members, he decided to defer debate to a later day. The House was unanimous it would not be in the interest of the nation for banks to retain the "illegal" interest they have been charging Kenyans. MP’s want the ‘in duplum’ rule to be back-dated to 1990, while the President wants it to begin in 2004. This will wipe out entire bank portfolios and cause several of them to shut down.
Mystery Solved
2004 Profit at Transnational Bank jumped to an astounding 1 billion shillings from 100 million in 2003. This came about from the sale of Alico Insurance to Heritage AII earlier in the year – and Transnational Holdings owned 1/3 of Alico netting a profit of 1.034 billion from the sale.
Name Change
Firestone Ltd shareholders approved a name change and the company will now operate as "Sameer Africa Ltd." Does this mean new business ventures?
Fibre Nairobi
Walking around Nairobi, you may have tripped or almost fallen into a ditch that cuts across the pavement. It's just Kenya Data Networks (a Sameer company) continuing to build its fiber-optic network around Nairobi.
Missing taxes
Nakumatt stores are being investigated for tax evasion, according to a Minister in Parliament.
No Sugar
A sugar shortage is taking hold around Kenya. Meanwhile all Kenyan sugar factories are shut for annual maintenance and imported sugar is rotting at the Mombasa port as traders argue with KRA over how much duty is to be paid. Shoppers are being limited to 1 or 2 kg per person, per day.
You don't have to swim
Kenya Ferry Services assures Kenyans that their ferries crossing Likoni (Mombasa) never capsize and are 100% buoyant despite the frequent mechanical breakdowns.
Fare increase
Kenya Railways have announced that they will raise their freight costs by 20% and passenger fares by 30% effective May 2005. However the move has been opposed by the Kenya Association of Manufacturer's and other groups who say that the poor service that KR currently provides does not warrant an increase in fares.
Calendar
April 21: East African Cable AGM at Holiday Inn, Westlands
April 26: (AGM) British American Tobacco AGM
April 29: (TPS) Serena AGM
The Banking (Amendment) Bill 2004 which has been deferred, may be doomed, in that politicians have taken the rhetoric down to imperialist (foreign banks destroying indigenous business) and tribal (banks are persecuting Central Province mainly) levels. After Finance Minister David Mwiraria heard the views of Members, he decided to defer debate to a later day. The House was unanimous it would not be in the interest of the nation for banks to retain the "illegal" interest they have been charging Kenyans. MP’s want the ‘in duplum’ rule to be back-dated to 1990, while the President wants it to begin in 2004. This will wipe out entire bank portfolios and cause several of them to shut down.
Mystery Solved
2004 Profit at Transnational Bank jumped to an astounding 1 billion shillings from 100 million in 2003. This came about from the sale of Alico Insurance to Heritage AII earlier in the year – and Transnational Holdings owned 1/3 of Alico netting a profit of 1.034 billion from the sale.
Name Change
Firestone Ltd shareholders approved a name change and the company will now operate as "Sameer Africa Ltd." Does this mean new business ventures?
Fibre Nairobi
Walking around Nairobi, you may have tripped or almost fallen into a ditch that cuts across the pavement. It's just Kenya Data Networks (a Sameer company) continuing to build its fiber-optic network around Nairobi.
Missing taxes
Nakumatt stores are being investigated for tax evasion, according to a Minister in Parliament.
No Sugar
A sugar shortage is taking hold around Kenya. Meanwhile all Kenyan sugar factories are shut for annual maintenance and imported sugar is rotting at the Mombasa port as traders argue with KRA over how much duty is to be paid. Shoppers are being limited to 1 or 2 kg per person, per day.
You don't have to swim
Kenya Ferry Services assures Kenyans that their ferries crossing Likoni (Mombasa) never capsize and are 100% buoyant despite the frequent mechanical breakdowns.
Fare increase
Kenya Railways have announced that they will raise their freight costs by 20% and passenger fares by 30% effective May 2005. However the move has been opposed by the Kenya Association of Manufacturer's and other groups who say that the poor service that KR currently provides does not warrant an increase in fares.
Calendar
April 21: East African Cable AGM at Holiday Inn, Westlands
April 26: (AGM) British American Tobacco AGM
April 29: (TPS) Serena AGM
Thursday, April 14, 2005
5 billion profit at Safaricom?
Any day now, Safaricom will announce their results for the year ended March 31 2005, and they should be a bonanza. Barclays bank earned 3.7 billion profit last year and East African Breweries made 3 billion. Meanwhile Safaricom was already at 2.7 billion profits after only six months this year - will Safaricom pass the 5 billion profit mark? Maybe.
Good news yes, but bad because they don’t share their good fortune with Kenyan shareholders - unlike Barclays or East African Breweries.
Good news yes, but bad because they don’t share their good fortune with Kenyan shareholders - unlike Barclays or East African Breweries.
Parastatal Reforms
Parsatatal reforms are one way in which the government is honouring its pledges to Donors, however getting privatization bills passed in a divided Parliament will not be easy. The government has identified corporations it intends to retain and it will dispose of 59 others.
To be retained include National Cereals and Produce Board (agree), Kenya Broadcasting Corporation (absolutely not), while shares in Kenya Ports authority (KPA), Kenya Railways Corporation, Kenya Airport Authority and the Mombasa-Malaba road will be made available to the public.
On a positive note, the Government has, so far, admirably demonstrated the transparent process in its privatization (sale of 30%) of Kengen.
To be retained include National Cereals and Produce Board (agree), Kenya Broadcasting Corporation (absolutely not), while shares in Kenya Ports authority (KPA), Kenya Railways Corporation, Kenya Airport Authority and the Mombasa-Malaba road will be made available to the public.
On a positive note, the Government has, so far, admirably demonstrated the transparent process in its privatization (sale of 30%) of Kengen.
Jobs at Safaricom for Kenyans abroad ONLY
Start the journey of transforming your life, working for Kenya's hottest company.
Are you a Kenyan student studying Engineering, Telecommunications and Information Technology abroad? Click on the link below to send us your CV and Contact details at
kenyansabroad@safaricom.co.ke
Are you a Kenyan student studying Engineering, Telecommunications and Information Technology abroad? Click on the link below to send us your CV and Contact details at
kenyansabroad@safaricom.co.ke
Kenyan Heroes
Congratulations to (1) Wangari Maathai and (1/2) Barack Obama for making the 2005 Time Magazine Heroes list. However I fear this achievement will be overshadowed by the drama surrounding Presidential wives.
NSSF wants its cash from collapsed banks
However the amounts they are seeking are pennies, compared to what depositors actually lost when these banks collapsed.
Wednesday, April 13, 2005
From Balancing Act Africa (No. 252)
FOUR MORE NATIONAL OPERATORS JOIN EASSY PROJECT: BURUNDI, ZAMBIA AND LESOTHO
Tanzania Telecommunications Company Limited (TTCL) and three other national
operators from Burundi, Zambia and Lesotho will soon join the East African
Submarine Cable System (EASSy) project - bringing to 18 from 14 that signed earlier on. Together the operators will soon be required to raise USD100 million half of the amount of money required for the fiber optic cable on the east African coast. Other Telecom companies that signed under the project include Telecom Kenya. The 8,840 km undersea cable that will run from Djibouti to South Africa will cost over USD200 million, but its operation and maintenance will require funds that EASSy project officials say will be generated from voice and data traffic generated by telecom operators in the region.
KENYAN REGULATOR CCK SLAMS TELKOM OVER UNMET GOALS
Fixed line telecommunications service provider Telkom Kenya has failed to meet its licensing obligations, the sector regulator has said. In its latest annual report the Communications Commission of Kenya (CCK) says Telkom Kenya failed to translate its long time monopoly into increased number of fixed line connections over the past three years. Consequently, CCK says Telkom¹s failure will hamper efforts to encourage other players in the market to lower the cost of Internet and mobile phone use charges.
new licences
The Communication Commission of Kenya (CCK) has gazetted nine companies for various licences in the telecom sector. The latest issue of the Kenya Gazette Notice indicates that CCK has lined-up Comtec Intergration Systems and Lanbase Communications Limited for Internet Backbone and Gateway services operator's licence. Two other companies linked with Comtec and Lanbase have been gazetted for
three different licences. Comtec Training and Management Services has been lined up for a local loop operator's licence while Lanbase Communications is gunning for a leased circuit resale licence. Comtec has also applied for a Private Data Network Operator (PDNO) licence.Also gazetted are KTIG Consulting Limited and Africa Spinoff Limited for a Local loop operator's licence. Africa Spinoff Limited has also applied for a PDNO licence.Callkey (East Africa) Limited and EDP Limited have been lined up for an Internet Service Provider (ISP) licence while Scandinavia Express Kenya Limited is currently waiting for a regional courier operator's licence.
Tanzania Telecommunications Company Limited (TTCL) and three other national
operators from Burundi, Zambia and Lesotho will soon join the East African
Submarine Cable System (EASSy) project - bringing to 18 from 14 that signed earlier on. Together the operators will soon be required to raise USD100 million half of the amount of money required for the fiber optic cable on the east African coast. Other Telecom companies that signed under the project include Telecom Kenya. The 8,840 km undersea cable that will run from Djibouti to South Africa will cost over USD200 million, but its operation and maintenance will require funds that EASSy project officials say will be generated from voice and data traffic generated by telecom operators in the region.
KENYAN REGULATOR CCK SLAMS TELKOM OVER UNMET GOALS
Fixed line telecommunications service provider Telkom Kenya has failed to meet its licensing obligations, the sector regulator has said. In its latest annual report the Communications Commission of Kenya (CCK) says Telkom Kenya failed to translate its long time monopoly into increased number of fixed line connections over the past three years. Consequently, CCK says Telkom¹s failure will hamper efforts to encourage other players in the market to lower the cost of Internet and mobile phone use charges.
new licences
The Communication Commission of Kenya (CCK) has gazetted nine companies for various licences in the telecom sector. The latest issue of the Kenya Gazette Notice indicates that CCK has lined-up Comtec Intergration Systems and Lanbase Communications Limited for Internet Backbone and Gateway services operator's licence. Two other companies linked with Comtec and Lanbase have been gazetted for
three different licences. Comtec Training and Management Services has been lined up for a local loop operator's licence while Lanbase Communications is gunning for a leased circuit resale licence. Comtec has also applied for a Private Data Network Operator (PDNO) licence.Also gazetted are KTIG Consulting Limited and Africa Spinoff Limited for a Local loop operator's licence. Africa Spinoff Limited has also applied for a PDNO licence.Callkey (East Africa) Limited and EDP Limited have been lined up for an Internet Service Provider (ISP) licence while Scandinavia Express Kenya Limited is currently waiting for a regional courier operator's licence.
Media Absurdities
(Un)licensed Broadcasts?
At night and when they have no programs, local TV stations turn on their satellite remote controls and beam programs from DSTV (satellite service) - Nation TV will broadcast the Cartoon channel in the morning and Turner Classic Movies at, KBC will broadcast BBC news early in the morning, STV broadcasts Sky News (UK) about 20 hours a day, KTN and Citizen broadcast CNN overnight, and sometimes Metro will broadcast a week-old UK premiership soccer game. [sometimes the satellite fails and you get to see the black screen as the decoder tries to re-connect with the signal]
Hatuta Chill
While NACADA (National Campaign Against Drug Abuse) and religious leaders have gone out and shut down alcohol and cigarette outdoor advertising around schools (which kids don't notice) and all over Nairobi, they seem oblivious to the fact that kids get so much stimulation and are addicted to daily music video shows on Nation, KTN, Citizen, KBC and 24-hours on East Africa television channels that have disturbing images and lyrics.
Jackson Case
While US media stations don’t name names, Sky News uses the name of Michael Jackson’s accuser and past accusers’ each time they cover the day’s events.
Soap Craze
American sopas have been replaced by South American soaps which are being replaced by locally-produced Swahili soaps. But the Nigerian soaps on Sunday afternoon are to weird - with witchcraft, forced sex, actual wife-beating etc. scenes actually broadcast.
At night and when they have no programs, local TV stations turn on their satellite remote controls and beam programs from DSTV (satellite service) - Nation TV will broadcast the Cartoon channel in the morning and Turner Classic Movies at, KBC will broadcast BBC news early in the morning, STV broadcasts Sky News (UK) about 20 hours a day, KTN and Citizen broadcast CNN overnight, and sometimes Metro will broadcast a week-old UK premiership soccer game. [sometimes the satellite fails and you get to see the black screen as the decoder tries to re-connect with the signal]
Hatuta Chill
While NACADA (National Campaign Against Drug Abuse) and religious leaders have gone out and shut down alcohol and cigarette outdoor advertising around schools (which kids don't notice) and all over Nairobi, they seem oblivious to the fact that kids get so much stimulation and are addicted to daily music video shows on Nation, KTN, Citizen, KBC and 24-hours on East Africa television channels that have disturbing images and lyrics.
Jackson Case
While US media stations don’t name names, Sky News uses the name of Michael Jackson’s accuser and past accusers’ each time they cover the day’s events.
Soap Craze
American sopas have been replaced by South American soaps which are being replaced by locally-produced Swahili soaps. But the Nigerian soaps on Sunday afternoon are to weird - with witchcraft, forced sex, actual wife-beating etc. scenes actually broadcast.
What is Econet?
Information & Communications Minister Raphael Tuju came out with both guns blazing from behind the safety of Parliament immunity and basically called Econet a snake oil sales company or the equivalent of Anglo-Leasing (a ghost) incapable of setting up a mobile phone network in Kenya.
What Impact will Econet have on Kenya? Here is a breakdown of the products and services that they offer in Zimbabwe (1 Kenya shilling = 80 Zimbabwe dollars – and all prices have already been converted)[info from their web site]
Products
Buddie: instant pre paid mobile phone connection from Econet wireless. With Buddie, you get NO hassles, NO credit checks, NO subscriptions, NO monthly bills and of course, an instant connection. Buddie is affordable because it offers you total control over your cell phone usage. It’s up to you how much you want to spend.
Sounds like a typical pre-paid Safaricom or Celtel number so far. So what’s different? You can have a buddy inner circle, which consists of five other Econet numbers of your friends/relatives – and you get 20% savings on each call. Initial Registration is free, subsequent change of numbers will cost 60 shillings
IMHO savings offered by Econet should be more – maybe even up to 50%. Within Safaricom, on a given day, once caller may pay 32 shillings per minute (with Tarific) to call safaricom, while another customer pays 16 shillings (Jambo tariff) –NOTE Celtel already has a package like this for corporate customers who can call select Celtel numbers at discounted rates
Libertie: Flexible service that offers value added services - customers have a choice and can select a package that is convenient and affordable for them, as each package has a different tariff and method of payment. Typical post-paid service as from Safaricom and Celtel Different top ups: With Libertie lines you can only use the subscription or top up vouchers to top up your account and not the Buddie recharge cards. Top up denominations are 250, 500 750 1,000 and 1,500 shillings and you can top up to 25,000 shillings. Any airtime that is not used by the end of the month is carried forward to the next month – and at the end of your 30 days, if you have not paid the next month’s subscription you will be barred from making calls even if you still have money in the account.
Business Partna: Contract package designed for corporate organizations, and gives the customer the real advantage of a wide range of value-added services. It includes unlimited access to airtime, access to mobile e-mail (send and receive e-mails on your cell phones at the cost of an SMS), access to mobile bill enquiries, electronic bills (receive your bill statement via e-mail).
Txt – Short Message Service: Short Message Service (SMS) including Txt – Classifieds (place classified advertising in newspapers via SMS), Txt n’ Score (predict the score of a particular soccer match and stand to win airtime prizes), Txt – Ring tones, Logo’s and Picture messages (provides subscribers with ring tones, logos and picture messages). There is no charge for receiving an SMS from another subscriber. To send an ordinary TXT costs only 2.5 shillings or 12.5 shillings for a ring tone, logo or picture message. already available in Kenya from both mobile companies
Services
Roaming: Use your Econet SIM card whenever you cross borders by connecting to our roaming service – no need to worry about paying your bill in foreign currency for any calls you make while away from home as you will pay when you return from travel. But you must notify Econet a week before travel and a refundable deposit may be required already available to some Safaricom subscribers – they even have a special Traveller tariff
Crisis Centre (Emergency Services) Econet mans a 24-hour emergency service centre in the country and you have automatic access to the Fire Brigade, Ambulance, Police, Safeguard and Rescue services on your fingertips. sounds like Safaricom’s 911 service, but no idea if its free for all – which it should be
Ecomail (Voice mail)
A personal answering service that works for you 24 hours a day. Kenyans rarely use voicemail, preferring to send SMS messages which are cheaper (5 shillings as opposed to a full minute charged for leaving voice mail) and clearer
Call Centre
Econet runs a 24-hour Call Centre that gives advice, directory services, and information to subscribers on products and services. nothing to brag about
Value Added Services
Executive Briefing: This is a value added service available only to contract subscribers. It is SMS based and provides wide range of information ranging from local news to international news. Charges per month are News (63 shillings), Sport (63 sh), Business news (38 sh) ZSE – stock exchange (38 sh) Weather Report (25 sh) or all the above services for 190 shillings per month. Included FREE are a daily inspirational quote, bible verse and breaking news. Safaricom offers these services to all subscribers at 7 shillings per message
News on Demand
Allow subscribers to listen to the latest local, regional and international news through their Econet lines not viable as Kenyans always turn on TV’s at news time
Electronic Bills
Subscribers can receive account invoices electronically instead of having to wait for the post office to deliver. Something Celtel should introduce. this is a good idea, even Celtel should do this, but it’s only for post-paid customers
What Impact will Econet have on Kenya? Here is a breakdown of the products and services that they offer in Zimbabwe (1 Kenya shilling = 80 Zimbabwe dollars – and all prices have already been converted)[info from their web site]
Products
Buddie: instant pre paid mobile phone connection from Econet wireless. With Buddie, you get NO hassles, NO credit checks, NO subscriptions, NO monthly bills and of course, an instant connection. Buddie is affordable because it offers you total control over your cell phone usage. It’s up to you how much you want to spend.
Sounds like a typical pre-paid Safaricom or Celtel number so far. So what’s different? You can have a buddy inner circle, which consists of five other Econet numbers of your friends/relatives – and you get 20% savings on each call. Initial Registration is free, subsequent change of numbers will cost 60 shillings
IMHO savings offered by Econet should be more – maybe even up to 50%. Within Safaricom, on a given day, once caller may pay 32 shillings per minute (with Tarific) to call safaricom, while another customer pays 16 shillings (Jambo tariff) –NOTE Celtel already has a package like this for corporate customers who can call select Celtel numbers at discounted rates
Libertie: Flexible service that offers value added services - customers have a choice and can select a package that is convenient and affordable for them, as each package has a different tariff and method of payment. Typical post-paid service as from Safaricom and Celtel Different top ups: With Libertie lines you can only use the subscription or top up vouchers to top up your account and not the Buddie recharge cards. Top up denominations are 250, 500 750 1,000 and 1,500 shillings and you can top up to 25,000 shillings. Any airtime that is not used by the end of the month is carried forward to the next month – and at the end of your 30 days, if you have not paid the next month’s subscription you will be barred from making calls even if you still have money in the account.
Business Partna: Contract package designed for corporate organizations, and gives the customer the real advantage of a wide range of value-added services. It includes unlimited access to airtime, access to mobile e-mail (send and receive e-mails on your cell phones at the cost of an SMS), access to mobile bill enquiries, electronic bills (receive your bill statement via e-mail).
Txt – Short Message Service: Short Message Service (SMS) including Txt – Classifieds (place classified advertising in newspapers via SMS), Txt n’ Score (predict the score of a particular soccer match and stand to win airtime prizes), Txt – Ring tones, Logo’s and Picture messages (provides subscribers with ring tones, logos and picture messages). There is no charge for receiving an SMS from another subscriber. To send an ordinary TXT costs only 2.5 shillings or 12.5 shillings for a ring tone, logo or picture message. already available in Kenya from both mobile companies
Services
Roaming: Use your Econet SIM card whenever you cross borders by connecting to our roaming service – no need to worry about paying your bill in foreign currency for any calls you make while away from home as you will pay when you return from travel. But you must notify Econet a week before travel and a refundable deposit may be required already available to some Safaricom subscribers – they even have a special Traveller tariff
Crisis Centre (Emergency Services) Econet mans a 24-hour emergency service centre in the country and you have automatic access to the Fire Brigade, Ambulance, Police, Safeguard and Rescue services on your fingertips. sounds like Safaricom’s 911 service, but no idea if its free for all – which it should be
Ecomail (Voice mail)
A personal answering service that works for you 24 hours a day. Kenyans rarely use voicemail, preferring to send SMS messages which are cheaper (5 shillings as opposed to a full minute charged for leaving voice mail) and clearer
Call Centre
Econet runs a 24-hour Call Centre that gives advice, directory services, and information to subscribers on products and services. nothing to brag about
Value Added Services
Executive Briefing: This is a value added service available only to contract subscribers. It is SMS based and provides wide range of information ranging from local news to international news. Charges per month are News (63 shillings), Sport (63 sh), Business news (38 sh) ZSE – stock exchange (38 sh) Weather Report (25 sh) or all the above services for 190 shillings per month. Included FREE are a daily inspirational quote, bible verse and breaking news. Safaricom offers these services to all subscribers at 7 shillings per message
News on Demand
Allow subscribers to listen to the latest local, regional and international news through their Econet lines not viable as Kenyans always turn on TV’s at news time
Electronic Bills
Subscribers can receive account invoices electronically instead of having to wait for the post office to deliver. Something Celtel should introduce. this is a good idea, even Celtel should do this, but it’s only for post-paid customers
Tuesday, April 12, 2005
Corporate Brief’s
Barclays
The whole saga of the Matiba schools vs. Barclays is spinning out of control. Current MP’s and former MP’s have stepped up and urged the government to tame rogue foreign banks that are destroying Kenya entrepreneurs. Meanwhile, over the weekend, threats were made to Barclays and staff working for the receiver manager of the schools. Hopefully these are just prank calls.
HFCK
Al is well or not well with Housing Finance’s proposed merger with Development bank (DBK) .It appears that, not only is DBK management opposed to the deal, but also Central Bank of Kenya which now also wants to remove the managers of HFCK
Central Bank
Meanwhile deputy governor Sambili’s term is coming to an end. The office comes with security of tenure.
Econet
According to Ministry of Information PS, James Rege, Econet will not be allowed to operate in Kenya because it has only paid $15 million of the $27 million license fee. This was on KTN, but after attending a few functions and seeing some wild news coverage, I’d like to see the actual remarks, and the context in which he made them.
Telkom
Telkom will lay off 12,000 of its 18,000 workers. This will save 400 million shillings a month – Telkom earns 1.2 billion shillings a month, but half of that goes to salaries (according to media reports on Monday). The company has about 250,000 lines, and according to PS Rege, a Senegalese telephone operator serves the same number of lines with just 2,000 employees.
The whole saga of the Matiba schools vs. Barclays is spinning out of control. Current MP’s and former MP’s have stepped up and urged the government to tame rogue foreign banks that are destroying Kenya entrepreneurs. Meanwhile, over the weekend, threats were made to Barclays and staff working for the receiver manager of the schools. Hopefully these are just prank calls.
HFCK
Al is well or not well with Housing Finance’s proposed merger with Development bank (DBK) .It appears that, not only is DBK management opposed to the deal, but also Central Bank of Kenya which now also wants to remove the managers of HFCK
Central Bank
Meanwhile deputy governor Sambili’s term is coming to an end. The office comes with security of tenure.
Econet
According to Ministry of Information PS, James Rege, Econet will not be allowed to operate in Kenya because it has only paid $15 million of the $27 million license fee. This was on KTN, but after attending a few functions and seeing some wild news coverage, I’d like to see the actual remarks, and the context in which he made them.
Telkom
Telkom will lay off 12,000 of its 18,000 workers. This will save 400 million shillings a month – Telkom earns 1.2 billion shillings a month, but half of that goes to salaries (according to media reports on Monday). The company has about 250,000 lines, and according to PS Rege, a Senegalese telephone operator serves the same number of lines with just 2,000 employees.
Total AGM
Intro
Total Kenya Limited held it’s 51st annual general meeting (AGM) at the French Cultural Centre on Monday April 11. The company ended the year with sales of 37 billion shillings and a profit of 938 million before tax. This translated to earnings per share of 3.31 shillings and the firm declared a dividend of 2.50 shillings per share, payable after this meeting. Total is 78% owned by parent Total, and 21% by Kenyan shareholders ( 4,450 shareholders, 1,800 of whom own fewer than 1,000 shares) and 1% by employees.
The meeting began promptly at 3 p.m. Earlier shareholders had been given the annual reports, minutes (of 2004 meet), sheet to write questions and a goody bag (with an umbrella, polo shirt and baseball cap)
best part
This was the most interactive meeting I have seen. After Chairman (& Executive VP East Africa & Indian Ocean) Momar Nguer read his speech, and the auditor’s read their statement, he proceeded to go though most of the written questions submitted by shareholders after they had been seated. The number of questions was large, as people are less intimidated writing their questions, as opposed to being handed a microphone in a hall full of stranger. Anyway it led to a very insightful debate on Total; it’s competitors, the oil sector in Kenya. Here are some of the answers
Total
- Chairman Nguer showed that Total had been gaining, was 18 shillings two years ago, 27 a year ago, now 40
- Under Nguer, has gone from the no. 4 company in Kenya in 1997 when he arrived to no. 1
- The company will not cut corners. A 28-year-old tanker ship used by a rival company caused an oil spill in Mombasa last week. Nguer said that ships over 20 years old are not widely used anymore, and are not allowed in European ports.
- Said there was no need for bonus shares as long as the company was giving dividends
- The company’s main social project is the “Total Eco Challenge” which seeks to plant 100 million trees a year in Kenya to restore forest cover while meeting demand for charcoal and other wood products (which provide for 80% of Kenya’s annual fuel requirements) in 2004 Total spearheaded the planting of 10 million trees
Kenol (Kenya Oil)
Competitor Kenol has been one of the hottest companies on the NSE and it’s share priced passed the 500 shilling mark, before it was split 10 to 1 – bringing the price to more affordable 50 shillings, from where it has risen to 64 (equivalent 640)
Chairman Nguer was put to task by some shareholders for posting lacklustre results compared to Kenol, having a flat share prices and generally being left 10 steps behind by Kenol. Nguer forcefully defended his company (he must have expected such questions because he had the 2004 accounts of Kenol with him) and tried to prove that Total was a better choice for shareholders.
- Nguer poured cold water on Kenol’s plans to expand into Ethiopia and Zambia. He’s the Total Chairman in those countries and said that any operation in (price-controlled) Ethiopia is very unprofitable while he’s never seen any presence of the company in Zambia.
- Claimed Kenol made a lot of non-oil income, including 226 million from the sale of commercial paper, while Total focused on its core operations only
- Said Total was giving a better return: 2.5 shilling dividend on a 40 shillings share versus Kenol’s 2 shillings on a 60 shilling share
- Admitted that he was confused by the Kenol’s accounts system and urged their shareholders to look at their books
Government of Kenya
- Has been detrimental to Total and the Oil Industry, and consumers of their products
- It is cheaper for Total and oil companies to import petrol and diesel into the country, but they are required to import crude and refine 70% at the government refinery in Mombasa. Unfortunately this also means higher fuel prices for motorists
- The government reneged on a deal to waive all taxes on cooking gas and cylinder’s (as it is with kerosene). Nguer believes that his is the only way to reduce the cost of cooking gas in Kenya.
- Government also reneged on an agreement it signed to mandate the use of low-sulphur diesel and unleaded petrol by 2006. Our Mombasa refinery cannot produce these fuels yet - and this has also prevented willing governments like Rwanda & Uganda (who import though Mombasa) from implementing the same.
Oil Industry
- Said contrary to public perception fuel prices go up and down, not just up.
- OPEC has proved ineffective in managing the price of oil
- Does not expect oil prices to go down any time soon owing to the great demand of China and Asia
- Oil is a low margin business, and profit come from increasing volumes, not prices
- Network fuel stations only contribute 1/6 of Total’s sales
- Is a tricky business to finance: $ interest rates are 3%, while shilling rates are 10%, and most suppliers have to be paid in $
Other shareholder questions
- asked why meeting were held in the afternoon causing people to get home late
- asked for umbrellas (which had got finished)
- asked for extra umbrella for wife at home
- asked for a job
- asked for a promotion for a certain worker
- asked Total to pay shareholder travel expenses
All the question session took up more than an hour, after which all the voting matters – dividend, auditor & director fees and re-election (the actual purpose of the meeting) were concluded in about ten minutes. The Chairman then invited shareholders for refreshments
worst moment
Refreshments after the meeting
Today, churches like All Saints Cathedral are honest enough to admit that they have thieves in their service and advise worshippers to watch their own pockets and not to leave bags unattended when they go for communion. Likewise Kenyan corporate giants should accept the fact that some of their shareholders only attend meetings to grab food and gift bags. The smash and grab scene in the food court of the French Cultural Centre was a sad spectacle. I suspect that some of the grabbers were no shareholders, since the registration and security at the meeting was quite lax.
I recommend that in future:
(i) give individual lunch bags (apologies for criticizing Barclays)
(ii) If they must serve meals at the meeting, employ ushers and arrange for groups to be served in sequence. It’s tough enough serving 1,000 civil guests at a wedding, so why should Total expect 1,000 strangers to behave themselves wedding- Total should have done the same as they dished out a limited supply of wine, juice, beer and bitings such as samosas, beef cuts, mini pizzas etc.
(iii) or give vouchers for meals and gifts – to be claimed on a day after the meeting e.g. vouchers for pizza at Total food courts
(iv) or don’t serve any food at the event.
Total Kenya Limited held it’s 51st annual general meeting (AGM) at the French Cultural Centre on Monday April 11. The company ended the year with sales of 37 billion shillings and a profit of 938 million before tax. This translated to earnings per share of 3.31 shillings and the firm declared a dividend of 2.50 shillings per share, payable after this meeting. Total is 78% owned by parent Total, and 21% by Kenyan shareholders ( 4,450 shareholders, 1,800 of whom own fewer than 1,000 shares) and 1% by employees.
The meeting began promptly at 3 p.m. Earlier shareholders had been given the annual reports, minutes (of 2004 meet), sheet to write questions and a goody bag (with an umbrella, polo shirt and baseball cap)
best part
This was the most interactive meeting I have seen. After Chairman (& Executive VP East Africa & Indian Ocean) Momar Nguer read his speech, and the auditor’s read their statement, he proceeded to go though most of the written questions submitted by shareholders after they had been seated. The number of questions was large, as people are less intimidated writing their questions, as opposed to being handed a microphone in a hall full of stranger. Anyway it led to a very insightful debate on Total; it’s competitors, the oil sector in Kenya. Here are some of the answers
Total
- Chairman Nguer showed that Total had been gaining, was 18 shillings two years ago, 27 a year ago, now 40
- Under Nguer, has gone from the no. 4 company in Kenya in 1997 when he arrived to no. 1
- The company will not cut corners. A 28-year-old tanker ship used by a rival company caused an oil spill in Mombasa last week. Nguer said that ships over 20 years old are not widely used anymore, and are not allowed in European ports.
- Said there was no need for bonus shares as long as the company was giving dividends
- The company’s main social project is the “Total Eco Challenge” which seeks to plant 100 million trees a year in Kenya to restore forest cover while meeting demand for charcoal and other wood products (which provide for 80% of Kenya’s annual fuel requirements) in 2004 Total spearheaded the planting of 10 million trees
Kenol (Kenya Oil)
Competitor Kenol has been one of the hottest companies on the NSE and it’s share priced passed the 500 shilling mark, before it was split 10 to 1 – bringing the price to more affordable 50 shillings, from where it has risen to 64 (equivalent 640)
Chairman Nguer was put to task by some shareholders for posting lacklustre results compared to Kenol, having a flat share prices and generally being left 10 steps behind by Kenol. Nguer forcefully defended his company (he must have expected such questions because he had the 2004 accounts of Kenol with him) and tried to prove that Total was a better choice for shareholders.
- Nguer poured cold water on Kenol’s plans to expand into Ethiopia and Zambia. He’s the Total Chairman in those countries and said that any operation in (price-controlled) Ethiopia is very unprofitable while he’s never seen any presence of the company in Zambia.
- Claimed Kenol made a lot of non-oil income, including 226 million from the sale of commercial paper, while Total focused on its core operations only
- Said Total was giving a better return: 2.5 shilling dividend on a 40 shillings share versus Kenol’s 2 shillings on a 60 shilling share
- Admitted that he was confused by the Kenol’s accounts system and urged their shareholders to look at their books
Government of Kenya
- Has been detrimental to Total and the Oil Industry, and consumers of their products
- It is cheaper for Total and oil companies to import petrol and diesel into the country, but they are required to import crude and refine 70% at the government refinery in Mombasa. Unfortunately this also means higher fuel prices for motorists
- The government reneged on a deal to waive all taxes on cooking gas and cylinder’s (as it is with kerosene). Nguer believes that his is the only way to reduce the cost of cooking gas in Kenya.
- Government also reneged on an agreement it signed to mandate the use of low-sulphur diesel and unleaded petrol by 2006. Our Mombasa refinery cannot produce these fuels yet - and this has also prevented willing governments like Rwanda & Uganda (who import though Mombasa) from implementing the same.
Oil Industry
- Said contrary to public perception fuel prices go up and down, not just up.
- OPEC has proved ineffective in managing the price of oil
- Does not expect oil prices to go down any time soon owing to the great demand of China and Asia
- Oil is a low margin business, and profit come from increasing volumes, not prices
- Network fuel stations only contribute 1/6 of Total’s sales
- Is a tricky business to finance: $ interest rates are 3%, while shilling rates are 10%, and most suppliers have to be paid in $
Other shareholder questions
- asked why meeting were held in the afternoon causing people to get home late
- asked for umbrellas (which had got finished)
- asked for extra umbrella for wife at home
- asked for a job
- asked for a promotion for a certain worker
- asked Total to pay shareholder travel expenses
All the question session took up more than an hour, after which all the voting matters – dividend, auditor & director fees and re-election (the actual purpose of the meeting) were concluded in about ten minutes. The Chairman then invited shareholders for refreshments
worst moment
Refreshments after the meeting
Today, churches like All Saints Cathedral are honest enough to admit that they have thieves in their service and advise worshippers to watch their own pockets and not to leave bags unattended when they go for communion. Likewise Kenyan corporate giants should accept the fact that some of their shareholders only attend meetings to grab food and gift bags. The smash and grab scene in the food court of the French Cultural Centre was a sad spectacle. I suspect that some of the grabbers were no shareholders, since the registration and security at the meeting was quite lax.
I recommend that in future:
(i) give individual lunch bags (apologies for criticizing Barclays)
(ii) If they must serve meals at the meeting, employ ushers and arrange for groups to be served in sequence. It’s tough enough serving 1,000 civil guests at a wedding, so why should Total expect 1,000 strangers to behave themselves wedding- Total should have done the same as they dished out a limited supply of wine, juice, beer and bitings such as samosas, beef cuts, mini pizzas etc.
(iii) or give vouchers for meals and gifts – to be claimed on a day after the meeting e.g. vouchers for pizza at Total food courts
(iv) or don’t serve any food at the event.
Sunday, April 10, 2005
Barclays AGM
Barclays Bank of Kenya held its annual general meeting on Friday morning. I arrived at KICC at quarter to 11, which I figured was enough time for the registration process - perfect - I entered the Hall at 10:59 and the AGM started at 11 a.m. sharp - finally a public event that begins on time - with a minute's silence for the Pope.
Out-going Chairman
Today's AGM turned into a love-fest as grateful shareholders bade farewell to Chairman Sam Ambundo. He joined Barclays in 1948 (57 years ago) as a clerk at the Nairobi branch, earning 83 shillings and rose through the Bank to the top - as General Manager. After resigning form there, he then joined the Board and has served for 22 years, with the last 9 as Chairman.
Barclays runs a tight ship
The Chairman stopped shareholder questions that veered off topic and voting was by "show of hands" acclamation (KANU style) even the election of directors. Unlike at the annual Kenya Airways meeting, there were no alternates - i.e. outside people seeking to join the board. Directors and auditors are re-confirmed in a matter of minutes, as shareholders appeared unsure of their rights, or were unwilling to rock this very profitable boat.
Ghost of Matiba
The first two shareholder questions to the Board, asked why Barclays was persecuting and torturing Matiba by trying to sell his school and hotel properties. These early questions were deferred to later session. But even as the Chairman mentioned that he could not comment about a matter that was in Court, he was adamant that money advanced as loans to borrowers, must be rapid since it belonged to depositors and that shareholders would bear the brunt if such loans were written off. Barclays MD, Adan Mohammed, also stressed that the Bank typically sells someone's property strictly as a last resort, and only after all other options of repayment have been discussed with the borrower. i.e. Matiba's Group have been difficult customers.
Other questions
Shareholders asked:
- For bonus shares to be given instead of dividend
- Called for a special dividend of 22 shillings to recognize the Chairman's 22 years on the Board
- The Bank to support St. John's ambulance
- The Bank to buy a bicycle for the retiring Chairman
- How does one process dividends of shareholders who have died?
- Best question: Pointed out that 10% of Barclays loans are non-performing (i.e. may turn bad and never be repaid) and this was confirmed by the Chairman. However Barclays is doing quite well, given than the average amount of non -performing loans in the Kenyan banking sector is about 25%.
- The Chairman put a halt to questions of a personal nature (and which usually are the most entertaining)
In-coming Chairman
Francis Okomo Okello was presented as the new Chairman of the Bank and proceeded to give a long winding speech - he spent about 5 minutes introducing his speech, then used about 19 big-worded adjectives such as "disarmingly modest, persuasive debater, insightful, perceptive, indelible footprints" to describe his first meeting with Chairman Ambundo some 10 years ago. Chairman sat there with an embarrassed grin on his face as some directors took catnaps during the 30-minute speech and most shareholders counted the minutes to lunch. Also, while the Ambundo had kept repeating pertinent matters into Swahili, Okello made no such effort and stuck to his written speech. The poor speech was made more glaring, given that the Adan Mohammed, had just given an impromptu and witty brief speech about the Chairman a few minutes before.
Still there's hope: Bill Clinton's first major appearance to the American public was a long boring speech he gave at the 1988 Democratic National Convention that appeared to doom his chances of leading the party - and yet 4 years later he was his party's candidate and President-elect. For Barclays, by next year, Okello should have a competent personal assistant to review his speech beforehand and he'll also be more comfortable performer in front of shareholders.
Barclays is a model company
The best-ranked companies in Kenya are all lean and efficient operations - Barclays has 1,800 employees, Safaricom has 700 and Kenya Breweries has 1,000 (down from 6,000 about ten years ago) - Compare this to government departments that employ tens of thousands of workers
Best moment
When Chairman Ambundo presented senior managers of the Bank to the audience - they were all young, Kenyan (miro's)men and women - the future and succession planning at Barclays is assured. I.e. Okello was named vice chairman last year, and Ambundo groomed him to take over the Chair this year. Also during the meeting, MD, Adan Mohammed, also announced that he aspires to rise from management to be the Barclays Chairman one day - as Ambundo did.
Worst moment
Cheap Blue Chip: The richest Bank in Kenya had a very stingy AGM - compare this to other AGM's where directors sit and eat a sumptuous lunch with shareholders who also receive gift bags, t-shirt's umbrella's, company products etc. Lunch was a bit of a let down - after lining up for 20 minutes at one of the four lines, I got my lunch box which consisted of egg, banana, cake, sausage, samosa, and a piece of chicken with a bottle of soda or water. Despite giving a healthy dividend of 14 shillings, Barclays should do more for shareholders - as they only meet once a year.
Lesson of the Day: Buy Shares
Barclays has 33,000 shareholders - 11,000 of whom own less than 500 shares. Most of the shareholders who attended the Friday AGM were rural, elderly folk - who looked like retirees, many of whom didn't speak English - but they all made a decision to buy shares.
If someone had invested 1,600 in 1986 when Barclays launched on the Nairobi Stock Exchange, those shares would be worth over 230,000 shillings today. Plus, over the last five years, they have received dividends of 14 shillings a share, except 2002 when it was 12 sh. per share. Barclays even pays dividends when its earning drop - as in 2000 the bank earned 11 sh. per share, it paid a 14 sh. dividend, while in 2002 it paid 12 sh. on earnings of 10 sh. per share. I.e. owning 500 shares gives you a cheque of 7,000 every year for the last five years, and in some years
Out-going Chairman
Today's AGM turned into a love-fest as grateful shareholders bade farewell to Chairman Sam Ambundo. He joined Barclays in 1948 (57 years ago) as a clerk at the Nairobi branch, earning 83 shillings and rose through the Bank to the top - as General Manager. After resigning form there, he then joined the Board and has served for 22 years, with the last 9 as Chairman.
Barclays runs a tight ship
The Chairman stopped shareholder questions that veered off topic and voting was by "show of hands" acclamation (KANU style) even the election of directors. Unlike at the annual Kenya Airways meeting, there were no alternates - i.e. outside people seeking to join the board. Directors and auditors are re-confirmed in a matter of minutes, as shareholders appeared unsure of their rights, or were unwilling to rock this very profitable boat.
Ghost of Matiba
The first two shareholder questions to the Board, asked why Barclays was persecuting and torturing Matiba by trying to sell his school and hotel properties. These early questions were deferred to later session. But even as the Chairman mentioned that he could not comment about a matter that was in Court, he was adamant that money advanced as loans to borrowers, must be rapid since it belonged to depositors and that shareholders would bear the brunt if such loans were written off. Barclays MD, Adan Mohammed, also stressed that the Bank typically sells someone's property strictly as a last resort, and only after all other options of repayment have been discussed with the borrower. i.e. Matiba's Group have been difficult customers.
Other questions
Shareholders asked:
- For bonus shares to be given instead of dividend
- Called for a special dividend of 22 shillings to recognize the Chairman's 22 years on the Board
- The Bank to support St. John's ambulance
- The Bank to buy a bicycle for the retiring Chairman
- How does one process dividends of shareholders who have died?
- Best question: Pointed out that 10% of Barclays loans are non-performing (i.e. may turn bad and never be repaid) and this was confirmed by the Chairman. However Barclays is doing quite well, given than the average amount of non -performing loans in the Kenyan banking sector is about 25%.
- The Chairman put a halt to questions of a personal nature (and which usually are the most entertaining)
In-coming Chairman
Francis Okomo Okello was presented as the new Chairman of the Bank and proceeded to give a long winding speech - he spent about 5 minutes introducing his speech, then used about 19 big-worded adjectives such as "disarmingly modest, persuasive debater, insightful, perceptive, indelible footprints" to describe his first meeting with Chairman Ambundo some 10 years ago. Chairman sat there with an embarrassed grin on his face as some directors took catnaps during the 30-minute speech and most shareholders counted the minutes to lunch. Also, while the Ambundo had kept repeating pertinent matters into Swahili, Okello made no such effort and stuck to his written speech. The poor speech was made more glaring, given that the Adan Mohammed, had just given an impromptu and witty brief speech about the Chairman a few minutes before.
Still there's hope: Bill Clinton's first major appearance to the American public was a long boring speech he gave at the 1988 Democratic National Convention that appeared to doom his chances of leading the party - and yet 4 years later he was his party's candidate and President-elect. For Barclays, by next year, Okello should have a competent personal assistant to review his speech beforehand and he'll also be more comfortable performer in front of shareholders.
Barclays is a model company
The best-ranked companies in Kenya are all lean and efficient operations - Barclays has 1,800 employees, Safaricom has 700 and Kenya Breweries has 1,000 (down from 6,000 about ten years ago) - Compare this to government departments that employ tens of thousands of workers
Best moment
When Chairman Ambundo presented senior managers of the Bank to the audience - they were all young, Kenyan (miro's)men and women - the future and succession planning at Barclays is assured. I.e. Okello was named vice chairman last year, and Ambundo groomed him to take over the Chair this year. Also during the meeting, MD, Adan Mohammed, also announced that he aspires to rise from management to be the Barclays Chairman one day - as Ambundo did.
Worst moment
Cheap Blue Chip: The richest Bank in Kenya had a very stingy AGM - compare this to other AGM's where directors sit and eat a sumptuous lunch with shareholders who also receive gift bags, t-shirt's umbrella's, company products etc. Lunch was a bit of a let down - after lining up for 20 minutes at one of the four lines, I got my lunch box which consisted of egg, banana, cake, sausage, samosa, and a piece of chicken with a bottle of soda or water. Despite giving a healthy dividend of 14 shillings, Barclays should do more for shareholders - as they only meet once a year.
Lesson of the Day: Buy Shares
Barclays has 33,000 shareholders - 11,000 of whom own less than 500 shares. Most of the shareholders who attended the Friday AGM were rural, elderly folk - who looked like retirees, many of whom didn't speak English - but they all made a decision to buy shares.
If someone had invested 1,600 in 1986 when Barclays launched on the Nairobi Stock Exchange, those shares would be worth over 230,000 shillings today. Plus, over the last five years, they have received dividends of 14 shillings a share, except 2002 when it was 12 sh. per share. Barclays even pays dividends when its earning drop - as in 2000 the bank earned 11 sh. per share, it paid a 14 sh. dividend, while in 2002 it paid 12 sh. on earnings of 10 sh. per share. I.e. owning 500 shares gives you a cheque of 7,000 every year for the last five years, and in some years
Saturday, April 09, 2005
Celtel Update
According to this article (subscribers only) in the Economist:
- Celtel is still not profitable in East Africa (Kenya, Uganda and Tanzania)
- Even after earning about $700 million after selling the company this month, Celtel founder Mohamed Ibrahim will still be in charge of African operations
- Ibrahim relations with in Kenya are not as good these days
- Meanwhile Celtel Kenya emploees are salivating over the $18m award to staff from the sale. They have calculated that, if awarded evenly, they will all receive at least 200,000 shillings.
- Celtel is still not profitable in East Africa (Kenya, Uganda and Tanzania)
- Even after earning about $700 million after selling the company this month, Celtel founder Mohamed Ibrahim will still be in charge of African operations
- Ibrahim relations with in Kenya are not as good these days
- Meanwhile Celtel Kenya emploees are salivating over the $18m award to staff from the sale. They have calculated that, if awarded evenly, they will all receive at least 200,000 shillings.
Wednesday, April 06, 2005
Econet Wants You
Freed (for now) by the Kenyan Court system, Econet Wireless is wasting no time and has gone ahead and advertised for jobs in the Nation and Standard virtually every day of the week:
They invited applicants for network engineers – 6 jobs (Friday April 1) transmission engineers - 19 jobs (Sunday April 3 newspapers), sales & marketing – 17 and information systems - 12 (April 5), and customer service – 13 and interconnect & international 6 jobs (April 6).
They invited applicants for network engineers – 6 jobs (Friday April 1) transmission engineers - 19 jobs (Sunday April 3 newspapers), sales & marketing – 17 and information systems - 12 (April 5), and customer service – 13 and interconnect & international 6 jobs (April 6).
Tuesday, April 05, 2005
2004 Banking Summary
March 31st was the deadline for all Kenyan Banks to publish their annual reports for the year ended in a daily newspaper. This is a commendable requirement of the Banking Act, that the government should also extended - and require all commissions of inquiry, constituency development funds, special projects, catering and fuel levy, city councils, ministry and all government body budgets etc to publish their 2004 income vs. expenditure and budgets for 2005. Sure it will make a lot of money for newspapers, but the greater good is an informed public with a greater awareness of how their taxes are spend.
Banking is Good
Anyway as for Bank's, 2004 was a good year, despite the lower interest rates. Most of Kenya's 43 Bank's were profitable, with few exceptions posting losses. Only 4 (Consolidated, Akiba, Fina & Oriental) of Kenya's 43 banks posted losses - the rest had profits that varied from 23 million at Middle East Bank to 5.4 billion shillings (before tax) at Barclays.
Barclays, will distribute its 5.3b as follows: (1) Barclays plc (UK) 36.2% (2) Kenya government 31.5% as taxes (3) 15.6% will retained profits, and (4) local shareholders will received 16.7% (a dividend of 14 shillings per share for 2004)
Banking is Good
Anyway as for Bank's, 2004 was a good year, despite the lower interest rates. Most of Kenya's 43 Bank's were profitable, with few exceptions posting losses. Only 4 (Consolidated, Akiba, Fina & Oriental) of Kenya's 43 banks posted losses - the rest had profits that varied from 23 million at Middle East Bank to 5.4 billion shillings (before tax) at Barclays.
Barclays, will distribute its 5.3b as follows: (1) Barclays plc (UK) 36.2% (2) Kenya government 31.5% as taxes (3) 15.6% will retained profits, and (4) local shareholders will received 16.7% (a dividend of 14 shillings per share for 2004)
Monday, April 04, 2005
Banker’s Holiday
Have not left Nairobi this year, and the stink of the heat is getting to me. Office had a retreat this weekend and they picked Naivasha for the trip. It’s a working holiday, but I need the re-charge so am taking the trip. Feel so re-charged, thoughts are running
Raila Should Resign
This is not a political statement, it’s a logical . Our destination today is Lake Naivasha, which is surrounded by resort hotels and flower farms (big exports of Kenya) and the road from Naivasha town is a 10 kilometre long pothole full of rocks. Two years into Narc’s term no significant urban or national road has been built, let alone repaired (but when I was in Mombasa in November, I visited some relatives in Shanzu, who showed me the late minister Maitha’s homestead which had got a new and very smooth road when he became minister – and I assume it’s the same in other ministers and leaders home areas, as these things are expected in Kenya) Raila’s political wars have damaged his relations within government to an extent that there’s no way they (i.e. Finance Minister) will give him cash to build any roads – and which he can use as future election ammunition. So he’s been reduced to making promises about roads to Sudan and Ethiopia that will never be completed. He should step aside now as this will lead to a win-win situation for all – Raila can focus his energies on the Constitution and 2007, he’ll get mileage for being the first minister to resign, and Kenyans will get roads built overnight – as the toadie, politically-correct minister who replaces him will be given all cash and resources to repair all major roads - and to embarrass Raila at the same time. Otherwise, if Kibaki ever wakes up tomorrow and decided to fire ministers’ for non-performance, not many tears would be shed for current Roads minister - Raila
Kenya is Beautiful
Our destination is a Lodge on the shores of Lake Naivasha. The place is beautiful, expensively done resort, which few Kenyans have ever heard of - It used to be called Safariland Lodge and was previously one of Somaia or Pattni's properties. The hotel is first class, quite full of tourists, pricey (rooms are about 10k($130)/night), - so they probably don’t have to market themselves to Kenyans. Of the 8 satellite TV channels, 3 are in Hindi.
Celeb Watch
Glanced at the visitor’s book while at the reception, which was signed by one Kamlesh M. Pattni (Paul) two days before I arrived. He has acquired one bad habit that our parliamentarians have – while hotel guest sign and comment on a single line of the visitor’s book, MP’s - like wekesa, wetangula, uhuru, ruto, godana, njoki, kiraitu – all sign an entire page of the visitors’ book, making their rhetorical lame comments on the hotel service visible to all.
I want to be Minister
I’d never have visited this resort and paid out of my pocket, but the company is paying – so am here. I now realise the beauty of being a Kenyan cabinet minister. You acquire mysterious wealth, people forget briefcases of cash in your office, you have all your bills paid for (limousine, bodyguards, house, cell phone, fuel, other benefits), you get a bonus every two years for being loyal to your boss, and most important whenever you need to go on holiday, there’s always someone (taxpayer or lobbyist) willing to pay you for that (first class accommodation & airfare, daily pocket allowances)
Blogless
There was so much to write about over the weekend, but I’ll have to wait till mid-week. The hotel has no internet access, though I did see one complaint (4 pages long) by a French tourist in the visitor’s book – he was mad about the room& dining service, he hadn’t seen a hippo during his stay, his bathroom floor was wet bathroom and he was charged $1 for two minutes internet access. .
Dumbest Move
Going swimming alone after sunset in the Hotel Pool – swimming in the deep end, I forgot that I had my glasses on and they sunk to the bottom of the pool. I had to spend 15 minutes searching the bottom of the pool until the pool boy was called – he found my glasses after about 3 dives.
Best move
Taking a one-hour boat-ride across Lake Naivasha. Saw dozens of hippo herds and birds, and learnt so much about life around the beautiful lake from our boat pilot. One day, Kenyans will stop building houses in shags, and they will come and build waterfront houses around Lake Naivasha.
Overall
Was a great weekend with beautiful sight, despite some office politics. I even came up with an idea for a new company – hopefully it will provide my retirement package in 30 years – then I can return here.
Raila Should Resign
This is not a political statement, it’s a logical . Our destination today is Lake Naivasha, which is surrounded by resort hotels and flower farms (big exports of Kenya) and the road from Naivasha town is a 10 kilometre long pothole full of rocks. Two years into Narc’s term no significant urban or national road has been built, let alone repaired (but when I was in Mombasa in November, I visited some relatives in Shanzu, who showed me the late minister Maitha’s homestead which had got a new and very smooth road when he became minister – and I assume it’s the same in other ministers and leaders home areas, as these things are expected in Kenya) Raila’s political wars have damaged his relations within government to an extent that there’s no way they (i.e. Finance Minister) will give him cash to build any roads – and which he can use as future election ammunition. So he’s been reduced to making promises about roads to Sudan and Ethiopia that will never be completed. He should step aside now as this will lead to a win-win situation for all – Raila can focus his energies on the Constitution and 2007, he’ll get mileage for being the first minister to resign, and Kenyans will get roads built overnight – as the toadie, politically-correct minister who replaces him will be given all cash and resources to repair all major roads - and to embarrass Raila at the same time. Otherwise, if Kibaki ever wakes up tomorrow and decided to fire ministers’ for non-performance, not many tears would be shed for current Roads minister - Raila
Kenya is Beautiful
Our destination is a Lodge on the shores of Lake Naivasha. The place is beautiful, expensively done resort, which few Kenyans have ever heard of - It used to be called Safariland Lodge and was previously one of Somaia or Pattni's properties. The hotel is first class, quite full of tourists, pricey (rooms are about 10k($130)/night), - so they probably don’t have to market themselves to Kenyans. Of the 8 satellite TV channels, 3 are in Hindi.
Celeb Watch
Glanced at the visitor’s book while at the reception, which was signed by one Kamlesh M. Pattni (Paul) two days before I arrived. He has acquired one bad habit that our parliamentarians have – while hotel guest sign and comment on a single line of the visitor’s book, MP’s - like wekesa, wetangula, uhuru, ruto, godana, njoki, kiraitu – all sign an entire page of the visitors’ book, making their rhetorical lame comments on the hotel service visible to all.
I want to be Minister
I’d never have visited this resort and paid out of my pocket, but the company is paying – so am here. I now realise the beauty of being a Kenyan cabinet minister. You acquire mysterious wealth, people forget briefcases of cash in your office, you have all your bills paid for (limousine, bodyguards, house, cell phone, fuel, other benefits), you get a bonus every two years for being loyal to your boss, and most important whenever you need to go on holiday, there’s always someone (taxpayer or lobbyist) willing to pay you for that (first class accommodation & airfare, daily pocket allowances)
Blogless
There was so much to write about over the weekend, but I’ll have to wait till mid-week. The hotel has no internet access, though I did see one complaint (4 pages long) by a French tourist in the visitor’s book – he was mad about the room& dining service, he hadn’t seen a hippo during his stay, his bathroom floor was wet bathroom and he was charged $1 for two minutes internet access. .
Dumbest Move
Going swimming alone after sunset in the Hotel Pool – swimming in the deep end, I forgot that I had my glasses on and they sunk to the bottom of the pool. I had to spend 15 minutes searching the bottom of the pool until the pool boy was called – he found my glasses after about 3 dives.
Best move
Taking a one-hour boat-ride across Lake Naivasha. Saw dozens of hippo herds and birds, and learnt so much about life around the beautiful lake from our boat pilot. One day, Kenyans will stop building houses in shags, and they will come and build waterfront houses around Lake Naivasha.
Overall
Was a great weekend with beautiful sight, despite some office politics. I even came up with an idea for a new company – hopefully it will provide my retirement package in 30 years – then I can return here.
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