Thursday, June 30, 2005
KCC changes hands (once again)
In a political changeover long expected, KCC (Kenya Co-operative Creameries) and KCC 2000 have been taken over by New Kenya Co-operative Creameries. - and a notice to that effect was posted in the daily papers this week. This raises a lot of focus as it legitimised the KANU deal that controversially converted KCC into KCC 2000 and this new deal will provide quite a windfall for whoever has just sold KCC 2000. However the sale is likely to be challenged in court as it does not transfer any liabilities from the original collapsed (and debt ridden) KCC.
Investors hot for tourism
The number of tourists in Kenya has been increasing over the last two years. In addition to these foreign visitors, hotels have seen increased local business owing to parliamentary retreats, political parties strategising on elections & the constitution, cultural nights, corporate events and various international conferences.
This has manifested itself in a lot of investor activity. This week the Sarova Group [Stanley, Panafric Whitesands Hotel (an MP’s favourite), Sarova Mara)] declared their intention to list on the Nairobi Stock Exchange. Earlier, TPS Serena, announced a plan at their AGM to consolidate their Kenyan and Tanzanian operations later this year. T.P.S. Serena traded at 53 shillings per share during the May 2005 AGM and now trades at 86 shillings (up 62% in a 2 months)
Saudi billionaire Prince Alwaleedbought all Lonrho hotel properties in Kenya, and the Nairobi Intercontinental is ‘getting a facelift’ as part of an expansion program to increase revenue.
This has manifested itself in a lot of investor activity. This week the Sarova Group [Stanley, Panafric Whitesands Hotel (an MP’s favourite), Sarova Mara)] declared their intention to list on the Nairobi Stock Exchange. Earlier, TPS Serena, announced a plan at their AGM to consolidate their Kenyan and Tanzanian operations later this year. T.P.S. Serena traded at 53 shillings per share during the May 2005 AGM and now trades at 86 shillings (up 62% in a 2 months)
Saudi billionaire Prince Alwaleedbought all Lonrho hotel properties in Kenya, and the Nairobi Intercontinental is ‘getting a facelift’ as part of an expansion program to increase revenue.
Tuesday, June 28, 2005
End of month psychology – part 2
After fifth call to your contact at the Bank SMS’s you back to announce that your salary has been posted to your account. You leap up, hi-five everyone, then dash down to make the first of what will be many withdrawals. You don’t mind the queues for once, and even say hi to the branch manager to bankers. Suddenly you are eager to renew acquaintances and buy a 500-shilling scratch card. “Hi Faith, let’s do lunch,” “Chris let’s catch one on Friday”, “Paul see you at GP Karting on Sunday.” You call home, and say “don’t cook, because we are eating out tonight.” Also make plans to watch Batman on weekend (why is it only at far flung theatres like Sarit Center and Village Market?) followed by a visit to a new joint in the suburbs. Then suddenly you cross over to the other side and you visit Nakumatt, buy everything you need for a month, even ice cream for everyone. You full up the car with petrol and call the mechanic to discuss the various knocking sounds coming from under the car. Unfortunately impulse plans and impulse spending will lead back to psychology state I in about 15 days at this rate.
Monday, June 27, 2005
End of the month psychology – part I
Your Bank account is empty; you stay home more and eat ugali and greens. Soccer/sports are not that important anymore, and you’d rather stay home and watch whatever is on TV. You discover how boring daytime TV is, even if you have DSTV.
Bills are piling up, and you’re outraged at the rising cost of electricity, water, and petrol. You snarled at two up-country relatives, who visited your office today – they came to the city to beg for money because they believe anyone earning a living in an office, is not really working and therefore doesn’t deserve the money – and should instead give it to his struggling relatives up-country (it costs just as much to get to Nairobi and return). They leave your office, to go and hit up other working relatives, not knowing that we are mostly paid at about the same time.
You discover what your bank account minimum balance is. And when you have 1,300 in the bank and can’t make a withdrawal (the minimum is 1,000), you’re tempted to deposit 201 and withdraw 500 shillings. You skip Batman, and run your car till the empty fuel light shows, then buy 200 shillings worth of fuel and move on. You don’t call anyone, and you don’t SMS either – but since you have too much dignity to flash people, you only use your phone as an alarm clock, organizer, calculator and camera. Meanwhile you make 101 resolutions, to ensure you’re not broke by this time next month.
Bills are piling up, and you’re outraged at the rising cost of electricity, water, and petrol. You snarled at two up-country relatives, who visited your office today – they came to the city to beg for money because they believe anyone earning a living in an office, is not really working and therefore doesn’t deserve the money – and should instead give it to his struggling relatives up-country (it costs just as much to get to Nairobi and return). They leave your office, to go and hit up other working relatives, not knowing that we are mostly paid at about the same time.
You discover what your bank account minimum balance is. And when you have 1,300 in the bank and can’t make a withdrawal (the minimum is 1,000), you’re tempted to deposit 201 and withdraw 500 shillings. You skip Batman, and run your car till the empty fuel light shows, then buy 200 shillings worth of fuel and move on. You don’t call anyone, and you don’t SMS either – but since you have too much dignity to flash people, you only use your phone as an alarm clock, organizer, calculator and camera. Meanwhile you make 101 resolutions, to ensure you’re not broke by this time next month.
Friday, June 24, 2005
Harvard Business School in Kenya
Be the next Harvard pundit: HBS will have an open house in Nairobi next month for MBA applicants wishing to join the Fall 2005 class.
The Nairobi event, tentatively set for Monday August 15, is invitation only, and since space is limited, one must apply at this site for a place.
The Nairobi event, tentatively set for Monday August 15, is invitation only, and since space is limited, one must apply at this site for a place.
Wednesday, June 22, 2005
Kisumu Rural has Kenya’s first constituency web site
Once you get past the header (that looks like an error), you'll find an an unbelievably good page - with info. on constituency leaders, campaigns fund, news & views, a district profile, tourist attractions, projects, demographic characteristics, socio-economic profile, HIV/AIDS constituency campaign, development fund and harambee funds etc. It also links to other sites, has an online forum and gives a full breakdown on how the 6 million shillings CDF funds and harambee funds (1.9 million) will be used.
This is likely to cause a stampede as other MP’s, flush with CDF cash, rush out to build the jazziest sites seen in Kenya, reminiscent of the mid-90’s when every company in the world was deteremined to build the biggest and best web site.
Hon. Prof. Peter Anyang' Nyongo, (M.P.) is way ahead of his time. Can we just elect this guy president tomorrow? (Hat tip to the Standard 20/6/05 - not online)
This is likely to cause a stampede as other MP’s, flush with CDF cash, rush out to build the jazziest sites seen in Kenya, reminiscent of the mid-90’s when every company in the world was deteremined to build the biggest and best web site.
Hon. Prof. Peter Anyang' Nyongo, (M.P.) is way ahead of his time. Can we just elect this guy president tomorrow? (Hat tip to the Standard 20/6/05 - not online)
Safaricom’s future?
There’s no slowing down the Nation’s Jaindi Kisero, even after he moved on to the East African. He reveals that Vodaphone has offered to buy 11% in Safaricom for $100 million to give them a majority 51%. His commentary is naturally back in the Nation today where he points out that the offer is unlikely to receive a positive response from the Government amid complaints of how a "Kenyanisation" programme for key positions in Safaricom, which had been spelt out in an agreement at the company's inception, has been ignored and how the company has a high expatriate dose. (is this (i) another Broken MOU, this time by Vodaphone or (ii) a move to force out top expatriates at Safaricom or (iii) a final FU to Sir Edward Clay?)
Tuesday, June 21, 2005
No more Golden handshakes
Chris Rock used to joke that Black people should get their pensions at age 30, because they have a lower life expectancy than Whites and never live to retire at age 55
The new Retirement Benefits Act was the talk of the town last week as it had some stunning revelations. It was revealed that retirees would not get most of their pension until they turn 55 - they can only access what they contributed, which is in many cases only a fraction of the employer’s contribution
It was shocking that this decision was made as there are about to be a number of retrenchment packages e.g. at Kenya Railways, Telkom and Kenya Ports Authority. Previously retrenched employees walked away with some nice payments packages – golden handshakes – and invested in restaurants, buildings, matatus or other businesses (and of course, others drank/wasted the money away)
The new Retirement Benefits Act was the talk of the town last week as it had some stunning revelations. It was revealed that retirees would not get most of their pension until they turn 55 - they can only access what they contributed, which is in many cases only a fraction of the employer’s contribution
It was shocking that this decision was made as there are about to be a number of retrenchment packages e.g. at Kenya Railways, Telkom and Kenya Ports Authority. Previously retrenched employees walked away with some nice payments packages – golden handshakes – and invested in restaurants, buildings, matatus or other businesses (and of course, others drank/wasted the money away)
Monday, June 20, 2005
No more Metro Shuttle
The popular metro shuttle is no more and there are no more lines of faithful passengers queuing at Kencom House for travel to Karen, Lavington, Westlands, South B, JKIA and a few other destinations. General Motors Kenya has impounded 83 Metro Shuttle, Msafiri and KBS vehicles while financiers ICDC Corporation and Imperial Bank have claimed another 30 and 4 more repectively, following the failure of KBS to pay some major bills with these creditors.
KCB AGM
Kenya Commercial Bank held its AGM at KICC on Friday June 17th at KICC. Started sharp at 11 a.m., after registration and handing out of umbrella’s and meal vouchers to shareholders. But there were some timing issues that affected the meeting. After registration, got my gift umbrella
Chairlady?
Susan Mudhune was referred to as Chairman throughout the meeting, without any awkwardness. This must have been an issue before, but not anymore as there’s no discomfort with the term. The Swahili translation of her title is appropriate ambiguous “mwenye kiti” (owner of the Chair) Kenyans will have to confront these issues in future with job titles such as fireman, linesman.
2004 Performance
Mrs, Mudhune introduced the Board and gave a speech on the bank performance and invited Terry Davidson, the Chief Executive who also gave a more added more depth to the operations of the Bank up to December 2004, and how it has performed halfway into 2005, HIV, anti-corruption training etc. They also invited an official of Suntra Investment Bank to explain aspects of the electronic share trading (CDS) However their combined speeches ran for an hour and it was 12 noon by the time the Company Secretary read the notice and formally convened the meeting.
After the company secretary, and recognising some uneasiness, the MC announced that they had plenty of food for all shareholders
During 2004 the Bank’s EPS went from 3.06 shillings per share to 3.94 and share price increase from about 54 in December 03 to 64 in December 04. However the most significant event for KCB (and perhaps the entire banking sector) in 2004, was its successful rights issue in which shareholders were invited and bought new shares in the bank - raising about 2.3 billion shillings for the banks operations, expansion and improve its compliance with banking regulations following heavy provisions and losses a few years ago. Dividend payout was 3%, which was comparable to Kenya Airways 3.3% according to the CEO.
As a result of the hour-long introduction, the Chairman was forced to take only a limited number of shareholder questions, leading to some angry exchanges. Still they led to some vital information coming out. Examples:
- Government will divest from KCB and all banks and parastatals, as it recognizes that its mandate is to provide services. Their 26% share in the Bank will be sold to private people in "the best interests of the Bank."
- The Bank is hiring a No. 2 or Deputy CEO who will be in charge of strategy, marketing, research, subsidiaries and regional operations. Also KCB has changed from geographic management structure to a functional one and also implemented balanced scorecard and performance management system.
- Kencom house will revert to the Bank following an out of court settlement. As a result of this, the Bank’s pension fund is now in a surplus – and will now consider changing from a defined benefit to a defined contribution system. However this will only affect current staff of the Bank.
- Western Union money transfer is now available at 10 branches, and will be at 36 by year-end.
- The Bank has the largest ATM network in Kenya (87) and will increase to 119 by year-end. The 350,000 Quickserve ATM card users can also use their cards as debit cards at major shopping outlets
- The Bank refurbished 35 branches at a cost of about 500 million and will complete about 45 more. This makes one wonder about Kenya's Parliament refurbishing one building at a cost of 800 million shillings
- Abandoned a new (and controversial) IT system, and instead upgraded their existing one
- Operating expenses increased by 1 billion – all due to the increased cost of doing business, such as processing 70,000 new loans in 2004.
Ownership
- Government is the largest shareholder of the Bank with 26% (52 million shares) followed by ICDCI (5%) and KCB staff pension (4.55%), and NSSF (3.8). Bank Director Sunil Shah is the largest individual shareholder with 2.3% - from 4.86 million shares. At one dull point of the AGM, I calculated my dividend payment (Kshs. 2,533) and that of Mr. Shah (Kshs. 9,234,224)
Director Elections
It was announced that two sitting directors, William Gitobu and Francis Ojany, would not seek re-election – so there were 4 director seats being contested, by 9 applicants. Election ballot forms not been handed out, and were quickly dished out as candidates spoke stating why they should be elected director. I predict that the new directors will be Joseph Kinyua (Treasury Permanent Secretary), Susan Mudhune (current Chairman) James Koome (ex-UNGA) and Joseph Adongo (ex Kenya Airways) as (I believe) they enjoy the support of the Government (largest shareholder by far) and the other 5 candidates will have no chance despite their passionate speeches. The Bank’s auditor Ernst & Young supervised the election portion of the AGM and results should be out by Tuesday.
Lunch
It was now past 2 p.m. and shareholders stood to deposit ballots in voting boxes, and then immediately proceeded to line up for lunch at the ends of the hall. Despite repeated calls that the meeting was still on and that they should return to their seats, the sight of some shareholders already eating discouraged others from sitting down. IMHO the meeting was over so I took my lunch box (cold roast chicken, potato cuts, bread bun, banana and some fruit and soda – and went back to office, as another representative of Suntra stocks explained more on the CDS.
Chairlady?
Susan Mudhune was referred to as Chairman throughout the meeting, without any awkwardness. This must have been an issue before, but not anymore as there’s no discomfort with the term. The Swahili translation of her title is appropriate ambiguous “mwenye kiti” (owner of the Chair) Kenyans will have to confront these issues in future with job titles such as fireman, linesman.
2004 Performance
Mrs, Mudhune introduced the Board and gave a speech on the bank performance and invited Terry Davidson, the Chief Executive who also gave a more added more depth to the operations of the Bank up to December 2004, and how it has performed halfway into 2005, HIV, anti-corruption training etc. They also invited an official of Suntra Investment Bank to explain aspects of the electronic share trading (CDS) However their combined speeches ran for an hour and it was 12 noon by the time the Company Secretary read the notice and formally convened the meeting.
After the company secretary, and recognising some uneasiness, the MC announced that they had plenty of food for all shareholders
During 2004 the Bank’s EPS went from 3.06 shillings per share to 3.94 and share price increase from about 54 in December 03 to 64 in December 04. However the most significant event for KCB (and perhaps the entire banking sector) in 2004, was its successful rights issue in which shareholders were invited and bought new shares in the bank - raising about 2.3 billion shillings for the banks operations, expansion and improve its compliance with banking regulations following heavy provisions and losses a few years ago. Dividend payout was 3%, which was comparable to Kenya Airways 3.3% according to the CEO.
As a result of the hour-long introduction, the Chairman was forced to take only a limited number of shareholder questions, leading to some angry exchanges. Still they led to some vital information coming out. Examples:
- Government will divest from KCB and all banks and parastatals, as it recognizes that its mandate is to provide services. Their 26% share in the Bank will be sold to private people in "the best interests of the Bank."
- The Bank is hiring a No. 2 or Deputy CEO who will be in charge of strategy, marketing, research, subsidiaries and regional operations. Also KCB has changed from geographic management structure to a functional one and also implemented balanced scorecard and performance management system.
- Kencom house will revert to the Bank following an out of court settlement. As a result of this, the Bank’s pension fund is now in a surplus – and will now consider changing from a defined benefit to a defined contribution system. However this will only affect current staff of the Bank.
- Western Union money transfer is now available at 10 branches, and will be at 36 by year-end.
- The Bank has the largest ATM network in Kenya (87) and will increase to 119 by year-end. The 350,000 Quickserve ATM card users can also use their cards as debit cards at major shopping outlets
- The Bank refurbished 35 branches at a cost of about 500 million and will complete about 45 more. This makes one wonder about Kenya's Parliament refurbishing one building at a cost of 800 million shillings
- Abandoned a new (and controversial) IT system, and instead upgraded their existing one
- Operating expenses increased by 1 billion – all due to the increased cost of doing business, such as processing 70,000 new loans in 2004.
Ownership
- Government is the largest shareholder of the Bank with 26% (52 million shares) followed by ICDCI (5%) and KCB staff pension (4.55%), and NSSF (3.8). Bank Director Sunil Shah is the largest individual shareholder with 2.3% - from 4.86 million shares. At one dull point of the AGM, I calculated my dividend payment (Kshs. 2,533) and that of Mr. Shah (Kshs. 9,234,224)
Director Elections
It was announced that two sitting directors, William Gitobu and Francis Ojany, would not seek re-election – so there were 4 director seats being contested, by 9 applicants. Election ballot forms not been handed out, and were quickly dished out as candidates spoke stating why they should be elected director. I predict that the new directors will be Joseph Kinyua (Treasury Permanent Secretary), Susan Mudhune (current Chairman) James Koome (ex-UNGA) and Joseph Adongo (ex Kenya Airways) as (I believe) they enjoy the support of the Government (largest shareholder by far) and the other 5 candidates will have no chance despite their passionate speeches. The Bank’s auditor Ernst & Young supervised the election portion of the AGM and results should be out by Tuesday.
Lunch
It was now past 2 p.m. and shareholders stood to deposit ballots in voting boxes, and then immediately proceeded to line up for lunch at the ends of the hall. Despite repeated calls that the meeting was still on and that they should return to their seats, the sight of some shareholders already eating discouraged others from sitting down. IMHO the meeting was over so I took my lunch box (cold roast chicken, potato cuts, bread bun, banana and some fruit and soda – and went back to office, as another representative of Suntra stocks explained more on the CDS.
Saturday, June 18, 2005
TASK Launch
I went for the official launch of The Actuarial Society of Kenya (TASK) at 6 PM at the Hilton on Thursday.
Rare Air
One thing about actuaries is that they are among the brightest people in the world. I only know two people in the profession – one is my (very wealthy) landlord and another is a classmate of mine from primary school who rarely finished below no. 1 in class (tops in all subjects except Kiswahili for 8 years).
There are only 5 qualified practicing actuaries in Kenya, but they expect to have ten by next year. There are also about 600 Kenyan students taking actuarial sciences studies in Kenya and abroad. JKUAT and the University of Nairobi both have programs and some their students attended the cocktail – and Kenya is the only country in East & Central Africa that offers actuarial study programs. Most of the guests were sharp and well dressed, like some over-grown (or ex) Strathmore boys & girls.
The Hilton
Society officials said that revival of the Society had been planned over a four month period, but planning for the event had take only ten days – leading to the selection of the Hilton. This is only the second cocktail event I have attended at the Hilton. After registration, guests lined up for a complementary drink – soda or juice. At other Hotels, the complementary drink could be anything, and many guests use that as an opportunity to order the largest, most potent drink that can think of, as they don’t intend to pay for anything afterwards. Today there was a stocked bar next to the soda/juice table, with a bartender and cash register at the ready. My glass of juice tasted, and smelt of the can it no doubt came from. Still I sipped it all evening, as a second glass would have cost 180 shillings ($2.40). Also notice how there’s no air conditioning in the building, leading to more drink sales to thirsty guests.
The Event
- The Society’s motto is “turning risk into opportunities”
- One task the Society needs to do is update Kenya’s mortality (life expectancy) tables: The country still uses UK tables from the 1940’s
- The Chairman of the Society explained that the Society will seek to create awareness for the profession: actuaries are not just needed at pension and insurance firms, but by all large corporations and especially in the government.
- Will seek to come up with a Kenyan exam for actuaries
- You can e-mail the Society at actuaries@kenya.com
Kenya’s Growth Rate
Minister Nyongo announced that he will lead a statistical briefing session on Thursday next week (June 23) where statisticians will explain how Kenya’s controversial 4.3% growth rate was arrived at.
No Wi Fi
On the internet the Hilton is listed as one of two Wi Fi locations (i.e. with wireless 802.11b Internet access) in Kenya, the other being Jomo Kenyatt Airport. However Hotel staff say it is not yet available.
WSK?
And why not convert Kenyans Unlimited into the Weblog Society of Kenya.
Rare Air
One thing about actuaries is that they are among the brightest people in the world. I only know two people in the profession – one is my (very wealthy) landlord and another is a classmate of mine from primary school who rarely finished below no. 1 in class (tops in all subjects except Kiswahili for 8 years).
There are only 5 qualified practicing actuaries in Kenya, but they expect to have ten by next year. There are also about 600 Kenyan students taking actuarial sciences studies in Kenya and abroad. JKUAT and the University of Nairobi both have programs and some their students attended the cocktail – and Kenya is the only country in East & Central Africa that offers actuarial study programs. Most of the guests were sharp and well dressed, like some over-grown (or ex) Strathmore boys & girls.
The Hilton
Society officials said that revival of the Society had been planned over a four month period, but planning for the event had take only ten days – leading to the selection of the Hilton. This is only the second cocktail event I have attended at the Hilton. After registration, guests lined up for a complementary drink – soda or juice. At other Hotels, the complementary drink could be anything, and many guests use that as an opportunity to order the largest, most potent drink that can think of, as they don’t intend to pay for anything afterwards. Today there was a stocked bar next to the soda/juice table, with a bartender and cash register at the ready. My glass of juice tasted, and smelt of the can it no doubt came from. Still I sipped it all evening, as a second glass would have cost 180 shillings ($2.40). Also notice how there’s no air conditioning in the building, leading to more drink sales to thirsty guests.
The Event
- The Society’s motto is “turning risk into opportunities”
- One task the Society needs to do is update Kenya’s mortality (life expectancy) tables: The country still uses UK tables from the 1940’s
- The Chairman of the Society explained that the Society will seek to create awareness for the profession: actuaries are not just needed at pension and insurance firms, but by all large corporations and especially in the government.
- Will seek to come up with a Kenyan exam for actuaries
- You can e-mail the Society at actuaries@kenya.com
Kenya’s Growth Rate
Minister Nyongo announced that he will lead a statistical briefing session on Thursday next week (June 23) where statisticians will explain how Kenya’s controversial 4.3% growth rate was arrived at.
No Wi Fi
On the internet the Hilton is listed as one of two Wi Fi locations (i.e. with wireless 802.11b Internet access) in Kenya, the other being Jomo Kenyatt Airport. However Hotel staff say it is not yet available.
WSK?
And why not convert Kenyans Unlimited into the Weblog Society of Kenya.
Kenya Gazette
The Kenya Gazette is an interesting read, if only it was placed online. Here are some bits this week:
People
The Director of the Kenya Wildlife Services has revoked the appointment of Honorary Warden, Tom Cholmondeley.
Kenya has awarded the Elder of the Golden Heart (EGH) Second Class to Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud of the Kingdom of Saudi Arabia – who last month bought several hotel properties in Kenya.
Aviation
Several previous applicants have now been granted air licences in Kenya. Regional Air will move on after their partnership with British Airways ended and have had their license renewed for 3 years for flights to Malindi, Kisumu and Mombasa, and internationally from JKIA. Other licences issued were to 3 airlines for Eldoret – Dubai cargo flights, 2 to operate hot air balloons in Kedong (Naivasha) area, 7 airlines for Tanzania-Kenya routes, and 3 for Europe–Kenya charter flights (from Gatwick, Brussels & Madrid).
Communications
Several companies have applied for communication licences. Musimba Investments and Market Edge have applied to be premium rate service providers, Internet Africa have applied for an internet backbone and gateway licence, 3 companies have applied for ISP licences, and Africall Voice & Data has applied to set up a call centre - this will be the third call centre operation in Kenya.
Mining
2 companies have been issued mining licences to search for “base metals” in Kenya. Bwayokar Enterprises will search an 8 sq. km area in Nandi while Sundown Amalgamated will search 800 sq. km in Turkana.
People
The Director of the Kenya Wildlife Services has revoked the appointment of Honorary Warden, Tom Cholmondeley.
Kenya has awarded the Elder of the Golden Heart (EGH) Second Class to Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud of the Kingdom of Saudi Arabia – who last month bought several hotel properties in Kenya.
Aviation
Several previous applicants have now been granted air licences in Kenya. Regional Air will move on after their partnership with British Airways ended and have had their license renewed for 3 years for flights to Malindi, Kisumu and Mombasa, and internationally from JKIA. Other licences issued were to 3 airlines for Eldoret – Dubai cargo flights, 2 to operate hot air balloons in Kedong (Naivasha) area, 7 airlines for Tanzania-Kenya routes, and 3 for Europe–Kenya charter flights (from Gatwick, Brussels & Madrid).
Communications
Several companies have applied for communication licences. Musimba Investments and Market Edge have applied to be premium rate service providers, Internet Africa have applied for an internet backbone and gateway licence, 3 companies have applied for ISP licences, and Africall Voice & Data has applied to set up a call centre - this will be the third call centre operation in Kenya.
Mining
2 companies have been issued mining licences to search for “base metals” in Kenya. Bwayokar Enterprises will search an 8 sq. km area in Nandi while Sundown Amalgamated will search 800 sq. km in Turkana.
Thursday, June 16, 2005
Africa Round-Up
GM Food
Kenyans and Africans are set to benefit from genetically modified maize.
Kofi Out?
Kofi Annan may resign in September as Secretary-General of the United Nations to halt investigation in the Oil-for-Food scandal – which he has personally been linked to through Kojo, one of two children by his Nigerian first wife.
Nyama Choma is hot!
New Yorkers discover tasty goats while elsewhere, four men are arrested for stealing a goat to trade its meat for crack cocaine (from Drudge Report).
Oprah Zulu
Oprah Zulu has tested her DNA and discovered that she is a South AfricanZulu. "I'm crazy about the South African accent," she said. "I wish I had been born here."
No Respect
Tension is high between Rwanda and Uganda after Rwandan security forces detained and searched Ugandan President Museveni’s motorcade.
Kenyans and Africans are set to benefit from genetically modified maize.
Kofi Out?
Kofi Annan may resign in September as Secretary-General of the United Nations to halt investigation in the Oil-for-Food scandal – which he has personally been linked to through Kojo, one of two children by his Nigerian first wife.
Nyama Choma is hot!
New Yorkers discover tasty goats while elsewhere, four men are arrested for stealing a goat to trade its meat for crack cocaine (from Drudge Report).
Oprah Zulu
Oprah Zulu has tested her DNA and discovered that she is a South AfricanZulu. "I'm crazy about the South African accent," she said. "I wish I had been born here."
No Respect
Tension is high between Rwanda and Uganda after Rwandan security forces detained and searched Ugandan President Museveni’s motorcade.
Wednesday, June 15, 2005
Black Pastors Criticize Bush on Aid to Africa
Several influential black pastors who were recently courted by Bush administration officials as potential partners in crafting African relief policies are now questioning the White House commitment to the continent.They called on the president to give his "ardent" support to a proposal by British Prime Minister Tony Blair under which industrialized nations would double their aid to Africa by 2010. Bush rejected the proposal last week and announced that the United States would release a smaller sum, already appropriated by Congress, for aid to Africa.
Tuesday, June 14, 2005
(Non) Banking Challenges in Kenya
In an interview with the Financial Post, Kenya Commercial Bank’s Chief Executive Terry Davidson lists the four main challenges facing the banking sector as:
(i) Uncertainty over the Banking Bill: Implementation of the “in-duplum” rule, which, if applied retroactively for several years back will wipe out many local Banks.
(ii) Infrastructure: the expensive and poor conditions power, roads and communications needs to be addressed – this will reduce the cost of banking and eventually lead to banking costs for account holders
(iii) Insecurity: KCB spends Kshs. 15 million a month on security guards, which is not prudent. If the security situation improved, Kenyan banks would not have to pay as much for security.
(iv) Judiciary: It takes years for cases to be heard, and all banks have backlogs of pending cases, while others are postponed endlessly.
(i) Uncertainty over the Banking Bill: Implementation of the “in-duplum” rule, which, if applied retroactively for several years back will wipe out many local Banks.
(ii) Infrastructure: the expensive and poor conditions power, roads and communications needs to be addressed – this will reduce the cost of banking and eventually lead to banking costs for account holders
(iii) Insecurity: KCB spends Kshs. 15 million a month on security guards, which is not prudent. If the security situation improved, Kenyan banks would not have to pay as much for security.
(iv) Judiciary: It takes years for cases to be heard, and all banks have backlogs of pending cases, while others are postponed endlessly.
Mending Fences at MSK
In-coming Chairperson of the Marketing Society of Kenya (MSK) Fatima Alimohamed has entered office determined to mend fences and bridges burned by past councils of the society. In an interview with the Financial Post, she expressed her wish to address divisions that led to the breakup of the publication of Sokoni by Rollout publishers amid court cases, and allegations of fistfights, bribes and threats.
Rollout were the original publishers (they say creators) of "Sokoni," the councils official magazine, until they were forced out two years ago. They have since continued to organize successful Quiz Nite’s and also publish their own version called "Sokoni Africa" – later changed to "Marketing Africa" after a judge ruled that they were infringing on the Sokoni brand. Sokoni is currently published Oakland Media
She also mentioned working with the Chartered Institute of Marketers (CIM), a parallel marketing fraternity in Kenya.
Rollout were the original publishers (they say creators) of "Sokoni," the councils official magazine, until they were forced out two years ago. They have since continued to organize successful Quiz Nite’s and also publish their own version called "Sokoni Africa" – later changed to "Marketing Africa" after a judge ruled that they were infringing on the Sokoni brand. Sokoni is currently published Oakland Media
She also mentioned working with the Chartered Institute of Marketers (CIM), a parallel marketing fraternity in Kenya.
My Week
15th June
Panari Centre opens
Panari Center, a $16 Million (1.3 billion shilling) ultra-modern airport hotel complex complete with ice-skating facilities which was originally set to open in August 2004. This project is a joint venture between a Kenyan construction company and foreigner investors and is located on Mombasa Road.
16 – 18th June
E-World Expo at the Sarit Center
17th June
KCB AGM
Following an out of court settlement, Shareholders will be asked to reverse the sale of Kencom House, which was sold in 2000 to the staff pension fund.
17-19th June
10th Safari Sevens Rugby tournament
18th June
Kenya vs Morocco (World Cup qualifier)
30th June
Income Tax Deadline
Must get forms from the Kenya Revenue Authority and avoid the last minute lines.
Panari Centre opens
Panari Center, a $16 Million (1.3 billion shilling) ultra-modern airport hotel complex complete with ice-skating facilities which was originally set to open in August 2004. This project is a joint venture between a Kenyan construction company and foreigner investors and is located on Mombasa Road.
16 – 18th June
E-World Expo at the Sarit Center
17th June
KCB AGM
Following an out of court settlement, Shareholders will be asked to reverse the sale of Kencom House, which was sold in 2000 to the staff pension fund.
17-19th June
10th Safari Sevens Rugby tournament
18th June
Kenya vs Morocco (World Cup qualifier)
30th June
Income Tax Deadline
Must get forms from the Kenya Revenue Authority and avoid the last minute lines.
Monday, June 13, 2005
Banks cutting back on personal loans
The enthusiasm with which banking institutions marketed personal loans in 2003/4 has now waned.
Sources in the banking industry say the large number of defaulters in the unsecured loans category have shored up the long standing problem of non-performing loans (NPLs), forcing most banks to review their lending rules.
Sources in the banking industry say the large number of defaulters in the unsecured loans category have shored up the long standing problem of non-performing loans (NPLs), forcing most banks to review their lending rules.
MEGA Plan to buy Parastatals
The recently relaunched ethnic caucus, Mega, will bid to purchase parastatals when the privatisation process kicks off.
Mega's bank of choice Equity Bank, MD James Mwangi has told his staff that they plan to buy National Bank of Kenya (NBK).
Lee Njiru wrote a very harsh critique of the group, warning the Meru and the Embu, not to get taken for a ride.
Mega's bank of choice Equity Bank, MD James Mwangi has told his staff that they plan to buy National Bank of Kenya (NBK).
Lee Njiru wrote a very harsh critique of the group, warning the Meru and the Embu, not to get taken for a ride.
Friday, June 10, 2005
Bad Timing
Just 24 hours after the Government announced that they would cut back on buying monster trucks the Ministry of Justice received ten new ones for its governance and justice program.
Westlands Roundabout
The much-derided traffic lights will be re-activated by the Nairobi City Council this month. They are part of a study being funded by a Japanese firm. Traffic jams up to 1.5 kilometres long and caused by the lights were measured during February/March when the lights were last used. No indication how long the study will continue, but maybe KISS FM will probably start another campaign to shut them down, as they did before.
Thursday, June 09, 2005
Budget 2005/06
The budget is over-rated speech, but it communicates the direction the government intends to take. As usual, it calls on MP’s to pass several bills that are crucial for the government to meet its stated goals.
Numbers
- In the Minister’s first sentence he mentioned the controversial new 4.3% economic growth rate of the country.
Higher Interest Rates
To control inflation monetary policy will be tightened to bring credit expansion to a more sustainable pace. These echoes sentiments by the Central Bank Governor who has repeatedly said that the level of bank borrowing by the private sector has been worrying, and that he intends to raise interest rates to slow it down. In March 2005, bank lending to the private sector increased by 25% and half of that was to households (compare that to a 7% decrease in lending to the government)
Donors
Expecting net external financing from both bilateral and multilateral development partners of Kshs.23.4 billion. In the event that the bilateral partners provide any budgetary support it will be used to reduce government domestic borrowing and to upscale spending on core poverty programmes. The government will borrow 25.3 billion from the domestic market this year
For Investors
- Fewer licences to start business following the abolition of 17 licences. Currently, there are about 600 licences in Kenya that directly affect trade and investments. The government will also amend 30 others.
- To encourage more investors at the Nairobi Stock Exchange, newly listed companies will pay corporation tax at a lower rate of 20%, for a period of 5 years, provided these companies offer at least 40% of their shares to the Kenyan public. (corporate tax is 30% now)
- Investment income from Special Purpose Vehicles (SPVs) for purposes of issuing asset backed securities will be exempt from income tax.
For Mwananchi
- Minimum income to be taxed in a year raised from 24,000 to 36,000 shillings
- No duty on medicine, diapers, sanitary pads, cooking gas coal, media containing computer software, safety belts, and speed governors,
- Beer, spirits and cigarettes up 10%
- Duty on mitumba (used clothing) be 45% or US 30 cents per kg, whichever is higher
- Maize flour, milk and kerosene will be cheaper since they will be zero-rated
- Refrigerated trucks and hotel equipment exempted from duty.
Women
A married woman can now file a separate tax return to report all her sources of income without exception. Before she could only file on certain sources of income
Car Owners
- Computation of wear and tear (depreciation) for private motor vehicles increased from 1 million to 2 million
- No duty on safety belts and speed governors
- Excise duty, which used to range from 20% to 60% will now be a flat 20% regardless of engine capacity.
Home Owners
- Mortgage interest relief increased from Kshs.100,000 to Kshs.150,000.
Government Expenses
Wages
- The Government wage bill consumes up to 40% of ordinary revenues, or over 8% of GDP.
- Wages, together with other non-discretionary expenditures such as debt service payments and pensions obligations, take up two-thirds of revenues, leaving only a third to fund priority areas.
- Minimum wage will be adjusted once every two years in line with productivity increases.
Monster Trucks
- Government will reduce expenditures on motor vehicle purchases - as a first step, the number of cars allocated to senior government officials will be restricted to two
- The Government will adopt prepaid telephone services .
Services
Governance, Law and Order
- Will release wealth declarations of public officers
- Will implement the recommendations of the Goldenberg commission once report is done and also of the land commissions.
- Also implement community policing to other urban centres
- Build 500 houses to improve the living conditions of police officers at a cost of 750 million
- Government will recruit more Magistrates and Kadhis to cope with the increased cases
- automate court registries to enhance information flows.
Banking sector
- state-owned banks will be restructured and privatised
- a SACCO Bill is under preparation
- Government will soon be tabling a Micro Finance Bill
Education
- The Government will continue to allocate the bulk of its resources, (28%) to education
- Will also redistribute teachers and redeploy resources
- Higher university fees: Universities to be made more self-reliant, to reduce their dependence on exchequer
Agriculture
- AFC, KFA and KCC will be supported, but not KMC, which is a pet project of one Minister
- Allow direct sale of Coffee outside the auction.
- Kshs.250 million allocated to facilitate revival of the cotton/textile sector to benefit from AGOA.
- Simply the exports of livestock by introducing a single permit system for cattle movement.
Infrastructure
Roads
- A 44% increase in resource allocation for public works
- Steps made to minimize bureaucratic delays
- Government will also enforce standards and quality specifications for all road maintenance and reconstruction works
Railway
- To raise investment funds necessary to improve rail services, a joint process to concession the Kenya and Uganda Railways is ongoing and is expected to be completed by December 2005.
- Government will partner with the private sector to explore the possibility of constructing railways to Sudan and Ethiopia
Air
Major modernization programme for JKIA is in progress.
Ports
Mombasa Port will be converted into a landlord port to facilitate further private sector participation in such areas as container terminal, bulk handling and conventional cargo.
ICT
- Government will facilitate development of adequate ICT capacity in the country and encourage improved ICT usage.
- Efforts will also be made to complete implementation of e-government during the year to improve service delivery and promote accountability.
Housing
Implementation of slum upgrading in partnership with UN-HABITAT and other development partners at Kibera, which will result in the construction of 600 housing units at a cost of 500 million shillings
Privatisation
- KShs.8 billion from privatization proceeds expected during the year
- Speedy enactment of the Privatisation Bill is critical to the success of reforms
- State-owned banks will be restructured and privatized.
KRA
- To reduce backlog the period to file an objection to income tax has been reduced from 60 to 30 days
- KRA will provide addresses of borrowers of student loans to universities to assist them recover loans faster
- To clear the delay in VAT refunds, KRA has been given enough resources to pay current claims
- Controversial roll out of electronic tax registers to continue
- Also continue the tax amnesty program (which netted Kshs 4.8 billion last year)
Numbers
- In the Minister’s first sentence he mentioned the controversial new 4.3% economic growth rate of the country.
Higher Interest Rates
To control inflation monetary policy will be tightened to bring credit expansion to a more sustainable pace. These echoes sentiments by the Central Bank Governor who has repeatedly said that the level of bank borrowing by the private sector has been worrying, and that he intends to raise interest rates to slow it down. In March 2005, bank lending to the private sector increased by 25% and half of that was to households (compare that to a 7% decrease in lending to the government)
Donors
Expecting net external financing from both bilateral and multilateral development partners of Kshs.23.4 billion. In the event that the bilateral partners provide any budgetary support it will be used to reduce government domestic borrowing and to upscale spending on core poverty programmes. The government will borrow 25.3 billion from the domestic market this year
For Investors
- Fewer licences to start business following the abolition of 17 licences. Currently, there are about 600 licences in Kenya that directly affect trade and investments. The government will also amend 30 others.
- To encourage more investors at the Nairobi Stock Exchange, newly listed companies will pay corporation tax at a lower rate of 20%, for a period of 5 years, provided these companies offer at least 40% of their shares to the Kenyan public. (corporate tax is 30% now)
- Investment income from Special Purpose Vehicles (SPVs) for purposes of issuing asset backed securities will be exempt from income tax.
For Mwananchi
- Minimum income to be taxed in a year raised from 24,000 to 36,000 shillings
- No duty on medicine, diapers, sanitary pads, cooking gas coal, media containing computer software, safety belts, and speed governors,
- Beer, spirits and cigarettes up 10%
- Duty on mitumba (used clothing) be 45% or US 30 cents per kg, whichever is higher
- Maize flour, milk and kerosene will be cheaper since they will be zero-rated
- Refrigerated trucks and hotel equipment exempted from duty.
Women
A married woman can now file a separate tax return to report all her sources of income without exception. Before she could only file on certain sources of income
Car Owners
- Computation of wear and tear (depreciation) for private motor vehicles increased from 1 million to 2 million
- No duty on safety belts and speed governors
- Excise duty, which used to range from 20% to 60% will now be a flat 20% regardless of engine capacity.
Home Owners
- Mortgage interest relief increased from Kshs.100,000 to Kshs.150,000.
Government Expenses
Wages
- The Government wage bill consumes up to 40% of ordinary revenues, or over 8% of GDP.
- Wages, together with other non-discretionary expenditures such as debt service payments and pensions obligations, take up two-thirds of revenues, leaving only a third to fund priority areas.
- Minimum wage will be adjusted once every two years in line with productivity increases.
Monster Trucks
- Government will reduce expenditures on motor vehicle purchases - as a first step, the number of cars allocated to senior government officials will be restricted to two
- The Government will adopt prepaid telephone services .
Services
Governance, Law and Order
- Will release wealth declarations of public officers
- Will implement the recommendations of the Goldenberg commission once report is done and also of the land commissions.
- Also implement community policing to other urban centres
- Build 500 houses to improve the living conditions of police officers at a cost of 750 million
- Government will recruit more Magistrates and Kadhis to cope with the increased cases
- automate court registries to enhance information flows.
Banking sector
- state-owned banks will be restructured and privatised
- a SACCO Bill is under preparation
- Government will soon be tabling a Micro Finance Bill
Education
- The Government will continue to allocate the bulk of its resources, (28%) to education
- Will also redistribute teachers and redeploy resources
- Higher university fees: Universities to be made more self-reliant, to reduce their dependence on exchequer
Agriculture
- AFC, KFA and KCC will be supported, but not KMC, which is a pet project of one Minister
- Allow direct sale of Coffee outside the auction.
- Kshs.250 million allocated to facilitate revival of the cotton/textile sector to benefit from AGOA.
- Simply the exports of livestock by introducing a single permit system for cattle movement.
Infrastructure
Roads
- A 44% increase in resource allocation for public works
- Steps made to minimize bureaucratic delays
- Government will also enforce standards and quality specifications for all road maintenance and reconstruction works
Railway
- To raise investment funds necessary to improve rail services, a joint process to concession the Kenya and Uganda Railways is ongoing and is expected to be completed by December 2005.
- Government will partner with the private sector to explore the possibility of constructing railways to Sudan and Ethiopia
Air
Major modernization programme for JKIA is in progress.
Ports
Mombasa Port will be converted into a landlord port to facilitate further private sector participation in such areas as container terminal, bulk handling and conventional cargo.
ICT
- Government will facilitate development of adequate ICT capacity in the country and encourage improved ICT usage.
- Efforts will also be made to complete implementation of e-government during the year to improve service delivery and promote accountability.
Housing
Implementation of slum upgrading in partnership with UN-HABITAT and other development partners at Kibera, which will result in the construction of 600 housing units at a cost of 500 million shillings
Privatisation
- KShs.8 billion from privatization proceeds expected during the year
- Speedy enactment of the Privatisation Bill is critical to the success of reforms
- State-owned banks will be restructured and privatized.
KRA
- To reduce backlog the period to file an objection to income tax has been reduced from 60 to 30 days
- KRA will provide addresses of borrowers of student loans to universities to assist them recover loans faster
- To clear the delay in VAT refunds, KRA has been given enough resources to pay current claims
- Controversial roll out of electronic tax registers to continue
- Also continue the tax amnesty program (which netted Kshs 4.8 billion last year)
No Respect
The Budget speech is given ahead of time, to accounting firms and media houses so that their experts can present instant analysis immediately the speech is read. Not so for bloggers though who can only read the speech once it is availed at the treasury website.
Speech is now Online
Speech is now Online
Tuesday, June 07, 2005
'Nation' makes staff changes
Mr Jaindi Kisero, who has been associate editor in charge of Business on the Daily Nation, moves to The East African as managing editor - and will be replaced by Mr Nicholas Wachira who was previously a business editor at the Standard.
I hope it’s not like other Arthur Andersen who removed auditors who were too vigilant at Enron. Wachira was a good business writer at Standard, but will have to prove himself in the wake of Kisero who wrote insightful business articles on both the government and private sector, highlighting important issues that the rest of the media chose to ignore or were unable to understand.
I hope it’s not like other Arthur Andersen who removed auditors who were too vigilant at Enron. Wachira was a good business writer at Standard, but will have to prove himself in the wake of Kisero who wrote insightful business articles on both the government and private sector, highlighting important issues that the rest of the media chose to ignore or were unable to understand.
Banking News
ADB
The New head of the African Development bank ADB will be elected on 22. This was after USA and France combined to scuttle Nigeria’s bid for the presidency - according to the Business Day (SA) newspaper. Donors threw their weight behind the Rwandan candidate, Donald Kaberuka. Kaberuka met the criteria on total votes polled but did not meet the regional vote percentage required, while Bisi Ogunjobi, the Nigerian candidate, likewise met the criteria on regional votes but missed that of the total votes polled. According to the East African (Kenya), most countries are determined that the president should not be from a French speaking country.
KCB
- Kenya Commercial Bank will begin offering Western Union services at all branches soon.
EIB
The European Investment Bank (EIB) has opened the first of three first regional office in Sub-Saharan Africa in Nairobi – to cover Central And East Africa.
NBK
National Bank of Kenya is carrying out a retrenchment package that will cost over 80 million shillings ($1m). It is being done in three phases: employees who are over 50 years, followed by non-performing staff. After that it will be voluntary retirement for anyone wishing to leave the Bank.
Executive Changes
- NIC Bank has a new Managing Director James Macharia.
- Robert Barry, the CFC Group MD has resigned for personal reasons.
- Mr Albert Ruturi, the Chief operating officer at KCB is retiring. The Bank, which is searching for a deputy CEO, has placed an advertisement in the Economist magazine, leading to the possibility that a non-Kenyan will be picked.
The New head of the African Development bank ADB will be elected on 22. This was after USA and France combined to scuttle Nigeria’s bid for the presidency - according to the Business Day (SA) newspaper. Donors threw their weight behind the Rwandan candidate, Donald Kaberuka. Kaberuka met the criteria on total votes polled but did not meet the regional vote percentage required, while Bisi Ogunjobi, the Nigerian candidate, likewise met the criteria on regional votes but missed that of the total votes polled. According to the East African (Kenya), most countries are determined that the president should not be from a French speaking country.
KCB
- Kenya Commercial Bank will begin offering Western Union services at all branches soon.
EIB
The European Investment Bank (EIB) has opened the first of three first regional office in Sub-Saharan Africa in Nairobi – to cover Central And East Africa.
NBK
National Bank of Kenya is carrying out a retrenchment package that will cost over 80 million shillings ($1m). It is being done in three phases: employees who are over 50 years, followed by non-performing staff. After that it will be voluntary retirement for anyone wishing to leave the Bank.
Executive Changes
- NIC Bank has a new Managing Director James Macharia.
- Robert Barry, the CFC Group MD has resigned for personal reasons.
- Mr Albert Ruturi, the Chief operating officer at KCB is retiring. The Bank, which is searching for a deputy CEO, has placed an advertisement in the Economist magazine, leading to the possibility that a non-Kenyan will be picked.
Monday, June 06, 2005
National Bank AGM
I missed the best AGM of the year, so far. I wish I had the courage to buy NBK shares.
- The Government has confirmed in writing it will make this payment," the auditors told skeptical shareholders during the bank’s annual general meeting held yesterday.
- The bank’s management was also at pains to control shareholders’ anger over reports that it will not payout dividend.
- "We are not interested in the glossiness of this book (financial statements. All we want is the information contained in it"
- The Government has confirmed in writing it will make this payment," the auditors told skeptical shareholders during the bank’s annual general meeting held yesterday.
- The bank’s management was also at pains to control shareholders’ anger over reports that it will not payout dividend.
- "We are not interested in the glossiness of this book (financial statements. All we want is the information contained in it"
3 Problems with multi-media messaging
From the Safaricom MMS User Guide
1. The subscriber must be a Safaricom Advantage customer. i.e. post-paid customers, who are less than 3% of subscribers
2. Each MMS message will cost Kshs. 20. Too expensive; Normal SMS cost 5 shillings and international are 10 shillings each
3. International MMS cannot be received. Why not?
1. The subscriber must be a Safaricom Advantage customer. i.e. post-paid customers, who are less than 3% of subscribers
2. Each MMS message will cost Kshs. 20. Too expensive; Normal SMS cost 5 shillings and international are 10 shillings each
3. International MMS cannot be received. Why not?
The Streets of Nairobi
"When permitted, Kenyans respond rapidly and effectively to new opportunities, bringing technical skills to bear in providing new services and lower costs to their fellow citizens." - says Bernard Wasow who returns as a visitor to Nairobi after 35 years, and discovers reasons to be optimistic.
Movie Blog
1. Total number of films I own on DVD/video:
None
2. The last film I bought:
Two years ago, I made the mistake of buying a bootleg VCD of Men In Black II. The picture was so unclear and bad, that I vowed never to buy another bootleg (which is pretty much everything sold in Nairobi)
3.The last film I watched:
Godfather on some Arabic satellite channel in Nakuru yesterday.
4.Five films that I watch a lot or that mean a lot to me:
Godfather series, Matrix, Pulp fiction, Glengary Glenross (everyone in sales must watch this), When We Were Kings
None
2. The last film I bought:
Two years ago, I made the mistake of buying a bootleg VCD of Men In Black II. The picture was so unclear and bad, that I vowed never to buy another bootleg (which is pretty much everything sold in Nairobi)
3.The last film I watched:
Godfather on some Arabic satellite channel in Nakuru yesterday.
4.Five films that I watch a lot or that mean a lot to me:
Godfather series, Matrix, Pulp fiction, Glengary Glenross (everyone in sales must watch this), When We Were Kings
Friday, June 03, 2005
Lower mobile tariffs
Even as the industry regulator (CCK) urges mobile operators to lower their tariffs the need for cheaper call costs must be apparent to the companies themselves - who have had to lower costs of many items except phone calls. Safaricom which launched their online office at 19,000 shillings, now sell it for 2,500, while the cost of new phone lines has dropped from 2,500 to 200 shillings now. Both Safaricom and Celtel now sell minimum airtime at 50 shillings, down from 250 and 300 respectively.
Thursday, June 02, 2005
June 8
This year’s budget speech will be keenly watched when the Minister for Finance delivers it before a sleepy parliament next week. Unlike with past speeches where declarations made are subsequently forgotten, so much has been pegged on this years speech: Teachers, doctors & nurses, police and civil servants are all waiting for massive pay increments, while donors are looking for a reduced government wage bill through cuts to the civil service combined with concrete plans and timetables for restructuring and privatization of money-losing parastatals. Also, motor dealers and other business people are looking for tax cuts while it remains to be seen if all the East African countries will harmonize their tax structures (budget speeches in Tanzania and Uganda are also read on the same day).
Who's Blair?
President Bush refused on Wednesday to budge on his administration's opposition to doubling aid for Africa, a major proposal on the agenda for a summit meeting of industrial nations next month in Scotland. The long-simmering dispute could culminate next week when Prime Minister Tony Blair of Britain, who has advocated the plan, visits Washington in advance of the July session, a meeting of the Group of 8.
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