Women’s Only Bank has outstanding success

(From Pakistan): First Women lends mostly to women without collateral and has a 96% loan-recovery rate. It was founded in 1989 by then Prime Minister, Benazir Bhutto, as a vehicle of female empowerment. The literacy rate among Pakistani women is barely 30%, about half those of men. Just 10% of Pakistani women participate in the non-domestic workforce, and when they do, their salaries are half those of men.

Local corporate briefs

New newspaper
Royal Media Services launched The Leader a new weekly newspaper today (July 29). The first issue doesn’t really break any news, but has analysis of events that have been in the news this week such as the constitutional referendum, KACC investigation of the Kenya Navy ship (has an interview with Justice Ringera), the split in LDP and debt relief for Kenya.

The first issue has some major advertisers, who are extensions on their radio stations such as British American Tobacco, CFC Bank, Kenya Revenue Authority, Keroche, and the Windsor Country Club. The paper joins the Royal Media stable which also includes: Citizen TV (the people’s channel), Radio Citizen Tosha, Ramofi FM (kar chuny jaluo), iNooro FM (muugi ni mutaare), Mulembe FM (omwoyo kwa baluhya) and YFM (live it, love it). It retails for 40 shillings and can be e-mailed here.

Bank IPO preparations
Equity Bank will be fresh capital through a listing at the Nairobi Stock Exchange by November, and this week, the Bank’s MD talked to the Standard to dispel anxiety that that it could the next big bang in the financial sector.

New ADB president
Rwanda's Finance Minister Donald Kaberuka was elected as the new President of the African Development Bank Group (ADB) during the extraordinary Meeting of ADB Governors held in Tunis. The Rwandan Minister faced fierce competition from a Nigerian candidate.

Postbank gets new MD
Mrs Nyambura Koigi is the new Kenya Post Office Savings Bank (Postbank) Managing Director. Prior to the appointment, she was the company’s Director of Operations and has been the acting MD for almost a year. Nyambura, who holds a Masters degree in Business Administration from the University of Nairobi, has over 23 years experience in banking. Last month, Nyambura said Postbank would pursue its dream of converting into a full-fledged commercial bank, but the bank’s ambitious conversion plan has met stiff resistance from the World Bank.

Globalisation affects terrorism

At one time the IRA used to bomb the British mainland with impunity while enjoying some local sympathy and receiving funds from Irish-American causes. But now that other terrorists have taken over, bombing it is no longer ‘acceptable’ and the IRA has now decided to end violent actions against Britain. It’s like when a new bully shows up in a school, who’s stronger, badder and crazier than the reigning school bully, the incumbent bully realizes that he doesn’t scare and no one fears/cares about him anymore - and so goes and gets a haircut, cleans up his act and tries new things such as becoming a better student.

What's New

Last week we attended a seminar on HIV situation in Kenya today. It was sponsored by an (ACU) - AIDS Control Unit (that’s probably part of the giant National AIDS Control Council ) – which is a paid kitty to educate as many workers about HIV. Here’s what I found new, but maybe many of you already know.

Economy
- AIDS is related to trade, and follows routes of productive trade; trading places like Salgaa and Mlolongo in Kenya, which are popular stops for truck drivers, are known as pandemic centres in the medical community.
- A human has about 36 years of productive life, but 22 of those can be lost to HIV
- Globalisation, social mobility, conflict and war have also contributed greatly to the spread of AIDS around Africa.
- HIV costs the economy greatly through loss of manpower, increased medical costs, replacement staff, funeral expenses, increased dependency etc.

Video
They started the session by showing a very moving 20-minute video on STD’s and HIV that I first saw in 2002. The video’s narrator was unknown to most people a few years ago when the video was shot, but is today the Kenya’s Minister for Communications - MP Raphael Tuju.

Stats
You learn lots of new statistics and facts:
- 80 - 90% of those who die are in the 15 – 49 age category (most productive years)
- STD’s facilitate the spread of HIV and are responsible for 80% of infertility in Kenya (and Chlamydia, is rarely detected as it causes no discomfort)
- 70 – 80% of transmission in Kenya is through sex, 5 – 10% is mother to child, smaller percentages are from drug use, or blood transmission
- 90% of adults who get tuberculosis are likely to have HIV (remember, we are immunized at birth against TB)

It get’s scary
- Wives in (rural) Kenya are highly susceptible to the virus and STD's because they often have sex, when not in an aroused state, leading to bruising, and bleeding which facilitate infections.
- The second phase of the HIV, known as the asymptomatic (silent) phase, can last from 0 to perhaps 15 years; a person carrying the virus, may not display any symptoms or illness.
- HIV is mostly discovered in the third phase, when someone suffers many illnesses; but it’s often too late for any meaningful treatment
- The daily papers are full of obituaries of young people who passed away after short illnesses that are normally curable
- HIV can be passed to a baby through breast milk (also during pregnancy and the birth process)

Drugs are scary
- Anti-retro-viral drugs (for treatment of HIV) have very bad side effects which have even led to the death of some patients
- One you start a particular drug cocktail, it is not advisable to switch to a cheaper, generic one
- Overuse of antibiotics during pregnancy can cause fungal infections.

Bad traditions
- “We were circumcised on the same day, with the same knife” is a call to brotherhood that men often use. But such practices need to be updated, so that, perhaps, one knife per boy is used on that special day.
- While the Luo are chastised for their wife inheritance customs, in other communities (all over the country) young widows (whose husbands may have died from AIDS, and don’t know their own HIV status) have silent affairs, cohabit, or even re-marry.
- The Church is still very negative towards potentially useful practices such as contraceptives and is also not very supportive of HIV+ people.
- Many family members still show very little sympathy or support to their HIV+ relatives
- Many employers still show very little sympathy or support to HIV+ workers.
- Many government programs relating to AIDS are carried out without involving the views or efforts of HIV+ people
- Many hospital workers, who are not AIDS specialists, show very little sympathy to HIV+ patients.

There’s hope
- The cost of drugs has come down from about 50,000 shillings a month in the mid-90’s to about 10,000 a month today (even 100 shillings for some generic doses at Kenyatta Hospital and other public hospitals)
- Hospital’s now test pregnant mothers for the virus - and with drugs and caesarean operations, they have a 40% success rate in delivering HIV negative babies from mothers who are positive.
- Behaviour change (i.e. eating a balanced diet, avoiding re-infection, and living healthy) can prolong the life of a HIV+ person
- Many employers now provide contraceptives (free condoms) in the workplace, enable discussion (such as this seminar)
- There are many free VCT (voluntary counselling & testing) centres around the country that offer anonymous services. There are over 6 different HIV tests available now from the simple & cheap (which take some minutes) to the complex.
- A person with HIV can officially retire on medical grounds and get their full benefits. Also, under the law, they may continue to work, without hindrance.
-(Cynical but true) HIV has spawned a massive industry of NGO’s and community-based organizations that provide donor-supported employment and livelihoods for thousands of Kenyans. (We all got paid 500 shilling to attend the seminar and each speaker received a couple of thousand for their talk)

Corporate Briefs

Telecommunications
From Nation 7/22/2005: Safaricom is seeking an international gateway licence from the Communication Commission of Kenya, "which, if granted, will see a significant reduction in international calling charges", says CEO Michael Joseph. And he hopes the CCK will speed up the processing of the licence for the benefit of the subscribers. Responding to a query , Joseph says his company's tariffs "are not exploitative and have actually been designed to be as competitive as possible".

Shareholder services
The Kenya Airways 2005 AGM will be held on August 12 at Bomas. But the company’s share registrars, Barclays Advisory Services, are proving to be somewhat inefficient which is understandable given that they are servicing over 86,000 KQ shareholders. It takes forever to immobilize the airline’s shares, and it's proving to almost impossible to change an address – I think I have given them my Nairobi address three times, and my mail, including invitation for this years AGM, and possible dividend, are still being sent upcountry.

Radio
In the radio sector, KISS FM is hiring presenters, a news anchor, feature writer and sports writer. Applications to be e-mailed by August 5 along with an MP3 or tape recording.

Also Metro FM (101.9 Nairobi) will become a reggae station from August 1. It currently does R&B and soft pop.

It was inevitable

Kenya has been ordered to play a World-Cup qualifier soccer match against Tunisia behind closed doors in September after a fan was killed during crowd trouble at their match against Morocco last month. This will give organizers a chance to reflect on what went wrong in June with tickets (which ran out, and new ones were re-printed and sold even after the stadium was full, uninvited guests both unofficial (the crowd who bum-rushed the stadium, and destroyed one gate as they forced their way in) & official (what was the mayor’s car and about 20 taxis and vehicles doing inside the stadium besides enabling the dignitaries they brought to bypass bothersome ticket and security checks?)among other issues. No fans will be allowed in, but you can be sure that there will a significant number of officials and observers in the stadium to monitor the match.

Around again at Telkom

From Balancing Act Africa: What the Government will get from a Safaricom sale will not be enough to fund a restructuring at Telkom.

Scholarships available

The Africa America Institute has announced scholarships for up to $10,000 for students in Africa.

Deadline for application is July 31. For more details see: http://www.aaionline.org/webzine/news.asp

Banks named

From Haliburton through Kenya: Africa Confidential claims that illegal payments for Nigeria' $10 billion gas export plant, built by Halliburton, Technip, Snamprogetti and the Japanese Gas Corporation appear to have been channeled through Kenya's Transnational Bank and on to major international financial institutions, such as Bankers Trust, Citicorp and Deutsche Bank, who have all been asked to help the investigators with their enquiries.

NSE for Beginners

Prices are as at end of June 2005.

Agricultural
Unilever Tea (115.00)
Pro: tea is hot sector
Con: expensive share

Kakuzi (61.50)
Pro
Con

Rea Vipingo (21.25)
Pro:Largest producer of African sisal (Thanks to Kuoasan for correction)
Con: Focus mainly on sisal and yet textiles is a difficult sector.

Sasini (34.25)
Pro: tea is hot sector
Con: Trade dispute with Pakistan - main Tea destination

Commerc.and Allied
Car & General (30.00)
Pro
Con

CMC(50.00)
Pro: stong fleet sales, expanding into Sudan & Tanzania
Con: strong competition from vehicle importers

Hutchings Biemer (20.25)
Pro:
Con: Inactive share

Kenya Airways (63.50)
Pro: Solid management, dominant in parts of Africa
Con: airline sector unpredictable, with rising oil prices

Marshalls (26.50)
Pro: Strong government sales
Con: Peugeot eclipsed by cheaper Toyota & other Japanese brands
Nation Media Group (199.00)
Pro: leading regional media house
Con: Expensive stock

Tourism Promotion Services (Serena)(86.50)
Pro: Soon to merge with Serena Tanzania & Zanzibar
Con: very competitive sector

Uchumi Supermarkets (19.95)
Pro: restucuring under a strong management team
Con: cash flow and creditor problems still unresolved

Finance & Invest
Barclays Bank(251.00)
Pro: Kenya's leading & most profitable bank
Con: high share price

CFC Bank (66.50)
Pro: Large insurance business
Con: few branches

Diamond Trust (28.50)
Pro: Affordable share for a clean Bank
Con: few branches

Housing Finance Company of Kenya(12.65)
Pro: Restructuring/merger talks ongoing
Con: Not fully provided for bad debts

ICDC (67.00)
Pro: diversified portfolio
Con: not much share movement

Jubilee (69.50)
Pro: potential as Kenya is an under-insured country
Con: difficult selling insurance in Kenya

K.C.B(70.00)
Pro: largest branch network in Kenya
Con: still separating the good book from the bad

National Bank (20.75)
Pro: Speculation on a restructuring deal
Con No dividend likely for many more years

National Industrial Credit (NIC)(54.50)
Pro: MOVE network has greatly increase customers, and loans
Con: MOVE costly

Pan Africa Insurance Holdings Ltd (32.50)
Pro: potential as Kenya is an under-insured country
Con: Not much share activity

Standard Chartered Bank (130.00)
Pro: pays high dividend, costs half as much as Barclays
Con Still a pricey share

Indust. & Allied
Athi River Mining Ltd (25.75)
Pro: Cement is a hot & they have expanded to fertilizer (another hot sector)
Con have only 10% share of cement market

BOC (K) (142.00)
Pro
Con: expensive share

Bamburi (122.00)
Pro Cement is hot sector because of increased building activity
Con: expensive share

British American Tobacco (224.00)
Pro: leading producer and market share growing despite legislative threats
Con: expensive share

Carbacid (124.00)
Pro
Con: Expensive share

Crown Berger(29.75)
Pro
Con

Olympia Capital Holdings (23.50)
Pro: large rubber operation
Con: had a tough year

E.A.Cables (145.00)
Pro: solid management and dividend payout
Con: Expensive share

E.A.Portland (105.00)
Pro Cement is hot sector because of increased building activity
Con: A strong Yen will eat into profits

E.A.Breweries (149.00)
Pro: we are a drinking nation
Con: rural beer sales dropping owing to illicit, cheap alternatives

Sameer Africa (18.00)
Pro: Now free to sell/distribute all tyres in Africa
Con: No longer Bridgestone exclusive, and shares will be offloaded later

Kenol (115.00)
Pro: very active shares, price passed 600/= before split in 2004
Con: relatively low dividend

Mumias (26.50)
Pro: Most efficient Kenyan sugar company, and can export to EU
Con: Sugar is produced more cheaply in neighboring COMESA countries

K.Power & Lighting (110.00)
Pro: High tariffs lead to high profits
Con: A strong Euro will eat into profits, and drought will affect production

Total (44.75)
Pro: Higher earnings & dividends per share than KENOL
Con: Shares not as active as KENOL

Unga (19.55)
Pro
Con: no significant share activity

ALTERNATIVE INVESTMENT MARKET SEGMENT (AIMS)
A.Baumann (10.70)
Pro
Con

City Trust (57.00)
Pro
Con

Eaagads (17.00)
Pro
Con: no significant share activity

Express (15.80)
Pro: Huge currency transport contract with Central Bank
Con: Recent losses make dividend unlikely soon

Williamson Tea (144.00)
Pro: Tea is hot
Con: Expensive share

Kapchorua (185.00)
Pro tea is hot sector
Con: Expensive share

K.Orchads (4.55)
Pro
Con

Limuru Tea (365.00)
Pro tea is hot sector
Con: Very expensive share

Standard Group Ltd (40.50)
Pro: rumored to be for sale
Con: High operational costs in bid to catch Nation media group

Poor Governance

For over a year, local tabloids have splashed stories about mismanagement at the Central Bank and various attempts to remove Governor Andrew Mullei. A Standard editorial has summarized the accusations including, among other things; maintenance of special pets owned by some high-ranking bank officials, special consultants being commissioned to perform on-site inspections of financial institutions at exorbitant rates, nepotism in the awarding of lucrative consultancies, and unnecessary foreign training trips.

Work for the World Bank

The World Bank is accepting applications for its Young Professionals Program. One must be 32 years or younger, i.e. born on or after January 1 1974, have masters degree and at least 3 years professional working experience in one of the sectors concrened with WB activities. Also must be fluent in English, but other language skills are helpful. Apply through the WB site by August 31 2005.

For Sale?

The Standard Group stock has risen 45% over the last month (closing at 53 on Friday), and rumors of an imminent sale have now hit Parliament. It’s largest sharegolder is SNG Holdings with 69%, so a deal can easily be made with a new buyer, if true.

The Standard newspaper still trails the Nation, and while their KTN is still the top television station, it appears to be standing still while NTV (Nation TV) is creeping up on them.

No Day Trading

One unintended effect of the introduction of CDS (electronic trading) at the Nairobi Stock Exchange is an attempt by people to engage in day trading. Unfortunately, stocks have to be still bought through stock brokers who must make the actual deals on the floor of the exchange. E.g. Someone who requests a broker to sell Kenya Airways at 81 and use the proceeds to buy Mumias at 31 may get mixed results. Sometimes the broker can’t make the deal that day, or for the next few days (in the volume specified), or commits the transaction at a time when the price has changed significantly. Also it is not cost effective, since each transaction costs 2% in commissions.

Leaving at the Top

Mr Isaac Omolo Okero will step down as Chairman of the Board of the Kenya Airways Group at the airline’s annual general meeting on August 12 2005.

He has steered the airline which has grown and expanded to unimaginable heights after a few rocky years as it tried to shed its parastatal management and outlook from which it emerged as one of Africa’s leading airlines, winner of multiple awards, and a model for privatization in Kenya.

Of course, the last time he was up for re-election in 2003, he was not the favoured candidate of the new government, who voted for Joe Wanjui. However KLM voted for former central Bank Governor Micah Cheserem, and also for Okero, who then continued as Chairman. The race is on for his replacement, and we’ll see if it again pits the government against KLM.

Mid-week Mix

Extraordinary Equity
Equity Bank who have said that they will list on the Nairobi Stock Exchange later this year will hold an extraordinary general meeting (EGM) on August 10th where shareholders are expected to increase the Bank’s share capital from 250 to 500 million shillings, by creating 50 million new shares of equal rank. Also the owners will convert 362 million shillings in share premium into 27 million shares which will be distributed to members (as at June 30th 2005) in a 4 (new) for 1 (old) share ratio.

The 50 million new shares will be availed to new shareholders in the IPO, but the bonus means that the owners are pocketing some gains before the IPO. Equity is 84% owned by over 2,400 indigenous shareholders (managers have a significant stake alongside customers and staff) and 16% by AFRICAP (a consortium of international development investors principally International Finance Corporation - the private sector arm of the World Bank - and the European Investment Bank). There’s no prospectus yet and no investment Bank has yet publicly associated itself with the Equity IPO.

6 Month Results & Dividends
British American Tobacco’s (January to June) turnover increased to 5.3 billion shillings, from 4.5 billion in 2004. Profit before tax went up from 883 to 957 million and the firm will pay an interim dividend of 4.5 shillings pr share (same as last year)

East African Cables six month turnover increased from 313 to 454 million, and profit before tax doubled from 51 to 100 million. They will pay an interim dividend of 1.5 shillings per share (up from .75)

More half year results are expected soon from BAT, EA Portland, Sameer, Firestone, Kakuzi, Nation, Limuru Tea, Total, Serena, Unilever Tea and all comemrcial banks.

Still Interested?
Five years ago, HSBC, was among the front-runners in the battle to takeover KCB. Now that the Government has announced that it will exit the Banking sector, could HSBC, now linked with new Kenyan investor Prince Alwaleed of Saudi Arabia still be interested in the Government’s 26% (and controlling) stake in the Bank?

Clinton to Kenya
Former President Clinton will Clinton be in Kenya next week as part of an African trip. He is expected to visit President Kibaki and praise the free primary education program.

Minister asks donors to stop funding NGOs

Planning minister Anyang’ Nyong’o said funding Non-Governmental Organisations had failed to produce desired results such as the Millennium Development Goals (MDGs)and wants donors to stop funding development through NGOs.

African Bullets & Honey has written along that theme recently.

NSE mania

The current rise of stocks at the Nairobi Stock Exchange is spreading like a fever and everyone seems to be catching the bug. I got a bit worried when five ladies in the office filled out CDS forms (to start trading in stocks) - all intending to buy Kenya Airways stock. I guess they got tired of one person in the office who, against my advice, bought KQ at a then high of 48 shillings per share about a month ago, and has been bragging to all, but especially to me, now that it has passed the 75 shilling mark.

I’d be surprised if Kenya Airways and Titus Naikuni don’t win Company and Executive of the Year awards at tonight’s COYA Awards.

Money to Burn?

Unbelievable: The Japanese Bank for International Co-operation (JBIC) may be willing to lend to Japanese and other firms wishing to invest in Kenya.

Loose Ends

Nairobi Olympics
The 2012 Olympics will be held in London, and Kenya will be bidding for the 2016 Olympics according to Sports Minister Ochillo Ayacko
How does Nairobi rank alongside yesterday's finalists?

NAIROBI
Population: not sure (1991 said 1.5 million, but NGO’s claim that Kibera alone has 1 million residents)
Previous Olympics: None, but have hosted All-Africa games, various regional soccer matches, some cricket World Cup games and sports rallies
Pros: Treat VIP’s well, we are able to imagine and build anything huge.
Cons: Treat athletes badly, poor current infrastructure & olympic facilities,
Slogan: Coming Soon
Status: Realistically, we should settle for hosting the announcement ceremony of the real venue of the 2016 Olympics (yesterday it was done in Singapore)
VIPs who will represnt us: Kipchoge Keino, Catherine Ndereba, and half the cabinet

Tax Refund
I completed my tax return three days before the June 30th deadline, and according to my accountant I am owed about 6,000 shillings. I filled out my bank details on the form, and will see how long it takes KRA to send me my refund.

Book Paradise
I finally joined the book library that I wrote about earlier. So far, it’s the real deal and I am on my 2nd bestseller in this week after starting with Nelson DeMille’s Night Fall. I feel like some kind of addict who has been given a free supply for one year as there are so many books in the store. At this rate, I will have read over 50 bestsellers by next June, all for the price of one (1,000 shillings).

Top Gun

You can usually tell when President Kibaki returns from an international trip as his official jet will buzz over the city on its way to its Eastleigh base, and after dropping him off at JKIA.

Rediscovering KTN
Earlier I got pissed off when KTN stopped showing the Sopranos at the end of season three. They have now resumed and repeated the last episode they showed where Jackie Jr. gets bumped off. Also Season 2 of “24” ended, and they now have “Alias” on Wednesday nights where unfortunately its at the same time as Nation’s “Wingu La Moto.” They have also replaced the “X-Files” (season 6 or 7) with “Millennium.”

Cheap Cellphone customers put new technologies on hold

Across Europe, most customers refuse to do anything except talk and send text messages with their phones, and the average European consumer is now spending just about half what he spent in the late 1990s for mobile service.

Balancing Act-Africa this Week

- Interview with Kenya Telkom's new MD Sammy Kirui who promises explosive growth and action on revenue leakage
- On-going battle over the sale and distribution of Kenyan music over the Internet.
- The recent Chaotic ICTe-Africa event in Nairobi

Half way through 2005

69 and rising
Three companies going through significant times:

EABL
East African Breweries (1/5 of the value Nairobi Stock Exchange) ended its year on June 30th. Looking at its half year numbers, it is on track to have ended the year with 22 billion in sales and a profit before tax of 9 – 10 billion shillings, with beer consumption up over 20% in 2004/5. During the year the company did a 5 for 1 stock split and also got listed on the Dar es Salaam stock exchange in June.

Kenya Airways
Was the first company Kenyan company on the Dar es Salaam, and it can be argued that Tanzanian investors are the ones who kick-started the stunning appreciation of KQ shares. The company started the year at 17 shillings a share, and six months later the shares are at 69 shillings per share, a 300% increase.

Safaricom
All was not rosy despite the super-profits (6.9 billion from sales of 27 billion) that they announced last week. Negotiations will begin on July 12 between the government and Vodaphone over their 1998 shareholders agreement. Despite his desire to continue as MD Michael Joseph’s contract was renewed for only six months, making it likely that Government will push to have a Kenyan MD by year end.

Thieves in the Temple

Over the weekend, Kobil Oil took over the management of 3 fuel stations owned by retired President Daniel arap Moi that had been making losses for several years – and also replaced managers, security and other staff. I hear this sad tale is actually a reflection of many of his businesses, schools, and farms where his own employees have been robbing him blind for many years through phoney billing, unnecessary purchases and repairs and outright theft of property. It is said that farmers around Kabarak don’t have to buy supplies in town, as they simply buy off seed and fertilizer cheaply from his farm managers and workers that is meant for his crops.

Airline News

How high can Kenya Airways share price go after it crossed the 60 shilling mark this week? KQ will soon face a competitor on its West African routes in the form of a joint venture between Richard Branson's Virgin Air and a revived Nigerian Airways. The first A340 in full Virgin Nigeria colours rolls out into the sunshine after a full repaint now with a white fuselage.

In other airline news;
- Sudan Airways resumed flights to Nairobi from Khartoum, via Juba
- East African Safari Air Express now flies three times a week to Rumbek, the new capital of Southern Sudan.
- Aero Kenya has passenger flights to Eldoret 13x a week for about 5,000 one way
- Qatar Airways is spreading its wings in Africa this winter with the launch of scheduled flights from Doha to Nairobi from November 2005 which will operate 5x a week

Super-Profitable Safaricom

Safaricom had another record year in 2004. Turnover (sales) increased from 19 billion to 27 billion, resulting in after tax profits of 5.9 billion up from 3.5 billion in 2003.

Long term debt reduced from 9.5 to 6.8 billion and on news reports, MD Michael Joseph was quoted as saying that Safaricom’s debt agreements don’t allow it to pay any dividends until the debt is fully paid.

However in the directors’ comments, you can almost hear the company crying out to the government “how much blood (tax) do you need from us?” Safaricom paid almost 10 billion (9.69 billion in duties, taxes and licence fees) last year and over 30 billion since the company was launched with taxes accounting for 26% of airtime cost for phone users.

Political Class under attack

In an editorial in the Standard by Jerry Okungu lashes out at Speaker Francis Ole Kaparo for being just as responsible for the rot in Parliament that the Speaker lamented about last week. Specifically;
- Kaparo, chairs the Parliamentary Service Commission, which has enabled MP’s to raid the treasury, arm-twist the Finance minister and literally amassed massive wealth for themselves. The commission has awarded obnoxious salaries, allowances and benefits to 220 Kenyans who hardly do a day’s job worth paying for.
- Turned a blind eye (until recently) to the numerous all expenses paid parliamentary trips to the Coast, to discuss matters that could easily have been discussed in Nairobi. Public funds have been misappropriated by the same National Assembly to buy the MPs air tickets, hotel accommodation and allowances, all under the pretext that they had to go away from Nairobi to be able to understand parliamentary bills and constitutional consensus issues.
- Yet, several times, Kaparo come out strongly in defence of the dignity of the House and its MPs.

Earlier, Sunday Nation columnist Gitau Warigi commented Kenya gone from a presidential dictatorship to a parliamentary dictatorship and that;
- The ordinary Kenyan is finding it too expensive to finance the proclivities of this political class
- Financing the political process is also getting too exorbitant. The constitutional review process has already gobbled upwards of Sh4 billion. The upcoming referendum will consume something like that, too.
- And we should ask ourselves whether we really need the score of additional constituencies Electoral Commission of Kenya Chairman Samuel Kivuitu wants to create.