Wednesday, August 31, 2005
The 46 million shilling question
Is 46 million shillings a year ($600,000) enough to live on? A successful NY investment hedge fund manager says he’s barely making ends meet with that kind of income.
End of August Updates
Indian Bank to acquire Giro?
The State Bank of India (SBI), is poised to acquire Giro Bank, a mid-size Kenyan Bank. The deal has already received approval from the Reserve Bank of India and is expected to be completed by October 2005. SBI, which has a balance sheet size of $145 billion, has a market share of over 25 per cent in the Indian banking system, while Giro is about the 23rd largest bank in Kenya, with assets of 4.5 billion shilling ($60 million).
Update on stockbrokers
It appears some of the stockbrokers I wrote about earlier may be inactive, have not renewed their licences or the information provided by the NSE may be outdated. Here now is an updated list of stockbrokers from the Capital Markets Authority as at April 2005.
Stockbrokers: Address, Telephone
Sterling Securities Limited P.O. Box 45080–00100, Nairobi
Ashbhu Securities Limited P.O. Box 41684–00100, Nairobi 020210178
Crossfied Securities Limited P.O. Box 34137–00100,Nairobi 020246036
Discount Securities Limited P.O. Box 42489–00100, Nairobi 020219552
Faida Securities Limited P.O. Box 45236–00100, Nairobi 020243811
Francis Thuo and Partners Ltd P.O. Box 46524–00100, Nairobi 020228498
Ngenye Kariuki and Company Ltd P.O. Box 12185–00400, Nairobi 020220052
Nyaga Stockbrokers Ltd P.O. Box 41869–00100, Nairobi 020332783
Reliable Securities Ltd P.O. Box 50338–00200, Nairobi 020241350
Solid Investment Securities Ltd P.O. Box 43046–00200, Nairobi 020244272
Bank Profits
As at June 30 2005, all commercial banks in Kenya were profitable except;
Oriental (formerly Delphis) 36 million loss
Bank of Africa 10m
Paramount Universal 2m
The State Bank of India (SBI), is poised to acquire Giro Bank, a mid-size Kenyan Bank. The deal has already received approval from the Reserve Bank of India and is expected to be completed by October 2005. SBI, which has a balance sheet size of $145 billion, has a market share of over 25 per cent in the Indian banking system, while Giro is about the 23rd largest bank in Kenya, with assets of 4.5 billion shilling ($60 million).
Update on stockbrokers
It appears some of the stockbrokers I wrote about earlier may be inactive, have not renewed their licences or the information provided by the NSE may be outdated. Here now is an updated list of stockbrokers from the Capital Markets Authority as at April 2005.
Stockbrokers: Address, Telephone
Sterling Securities Limited P.O. Box 45080–00100, Nairobi
Ashbhu Securities Limited P.O. Box 41684–00100, Nairobi 020210178
Crossfied Securities Limited P.O. Box 34137–00100,Nairobi 020246036
Discount Securities Limited P.O. Box 42489–00100, Nairobi 020219552
Faida Securities Limited P.O. Box 45236–00100, Nairobi 020243811
Francis Thuo and Partners Ltd P.O. Box 46524–00100, Nairobi 020228498
Ngenye Kariuki and Company Ltd P.O. Box 12185–00400, Nairobi 020220052
Nyaga Stockbrokers Ltd P.O. Box 41869–00100, Nairobi 020332783
Reliable Securities Ltd P.O. Box 50338–00200, Nairobi 020241350
Solid Investment Securities Ltd P.O. Box 43046–00200, Nairobi 020244272
Bank Profits
As at June 30 2005, all commercial banks in Kenya were profitable except;
Oriental (formerly Delphis) 36 million loss
Bank of Africa 10m
Paramount Universal 2m
Tuesday, August 30, 2005
A Nightmare
Yesterday I finished reading Michael Crichton’s “Jurassic Park” and immediately started reading its sequel “Lost World” which I found in the house. I didn’t get very far into it, before I went to bed. Naturally, I wondered what it would be like, and how much better than the movie it would be like. I went to sleep, and had this dream:
I was part of a group of dinosaur hunters, somewhere in the Sahara desert tracking down missing dinosaurs from the Park. We had found a fort in an oasis with a few trees, and had set up a camp and a trap there to catch the last surviving, reptile, a t-rex. The trap was actually a cow which was tied and grazing near some trees in which we hunters were hiding with a whole lot of guns.
At some point during the night, I felt I had to answer a long call of nature and I went to the pit latrine, which was next to cow. As I was doing my business I heard the cow scream, and looked up to see it dangling from the jaws of the t-rex which had appeared out of nowhere. I finished up, and ran into the trees yelling to my fellow hunters to start shooting, which they did. They came out of the trees guns blazing firing at the dinosaur.
T-Rex seemed confused by all the flashing lights, noise and smoke for a moment as it finished its meal. Then it calmly pulled out a six-shooter pistol and started firing back at us. We were all stunned at the intelligence of this reptile which was using our own human weapon against us. We figured it only knew how to use a small pistol. Next thing, he pulled out a shotgun, loaded it one-handed like Arnold in Terminator and continued firing at us. We then put down our arms and started running away, but all in the same direction. We had to keep our own guns away from the reptile, since he would gain another weapon for each one of us he caught.
At this point we were reduced to running about, only pausing to throw empty coca cola bottles, - (the Gods had gone crazy), at him as he continued firing his shotgun and roaring at us though the dust storm. Then I woke up.
Bank Rankings
For the half year, as at June 30th 2005:
all figures in millions of shillings
Profit Before Tax
Barclays 2.1 billion
Standard Chartered 1.6 billion
Kenya Commercial 859 million
Citibank Kenya 574 million
National Bank of Kenya 432
Commercial Bank of Africa 482 million
Cooperative 380 million
Equity 233 million
Investment & Mortgages 208 million
NIC 193 million
Return on Assets
Development Bank of Kenya 4.06%
Dubai 3.38%
Equity 2.61%
Charterhouse 2.48%
Standard Chartered 2.35%
Barclays 2.05%
Citibank 2.04%
Commercial Bank of Africa 2.03%
Customer Deposits
Barclays 83 billion
Standard Chartered 59 billion
Kenya Commercial 57 billion
Cooperative 41 billion
National Bank of Kenya 25 billion
Citibank 21 billion
Net Loans
Barclays 63 billion
Kenya Commercial 33 billion
Cooperative 30 billion
Standard Chartered 28 billion ,461
National Bank of Kenya 23 billion
NIC 12 billion
Citibank Kenya 12 billion
CFC 11 billion
Tier 1
Tier 1 are banks whose assets exceed 25 billion shillings ($333 million)
Assets (profit before tax)
Barclays 102,802 (2,103) i.e. 103 billlion in assets, 2.1 billion in six month profits
Kenya Commercial 70,898 (859)
Standard Chartered 68,829 (1,618)
Cooperative 50,982 (380)
National Bank of Kenya 31,701 (432)
Citibank Kenya 28,174 (574)
Tier 2
Tier 1 are banks whose assets range from 6 to 24.9 billion shillings ($80 – 333 million) Note that CBA has gone from being a mid tier 2 bank to almost tier 1 since its merger with First American Bank.
Assets (profit before tax)
Commercial Bank of Africa 23,742 (482)
NIC 19,023 (193)
CFC 17,616 (70)
Investment & Mortgages 15,995 (208)
Diamond Trust 13,429 (146)
Stanbic 12,525 (144)
Housing Finance 9,719 (29)
Equity 8,925 (233)
Baroda 8,840 (163)
Imperial 7,542 (128)
Bank of India 6,301 (65)
Prime 6,048 (49)
Tier 3
Banks whose assets are below 6 billion shillings ($80 million)
Fina 5,865 (36)
Guardian 4,597 (34)
Giro 4,568 (23)
Habib 4,450 (56)
ABC 4,236 (65)
Akiba 4,157 (48)
Middle East 4,156 (48)
Southern Credit 3,945 (25)
Victoria 3,827 (67)
Equatorial 3,070 (61)
Charterhouse 3,067 (76)
K-Rep 3,026 (43)
Consolidated 2,650 (14)
Development Bank of Kenya 2,412 (98)
Chase 2,270 (27)
Transnational 2,140 (35)
Oriental (formerly Delphis) 1,629 (-36)
Fidelity 1,568 (13)
Dubai 1,095 (37)
City Finance 564 (8)
all figures in millions of shillings
Profit Before Tax
Barclays 2.1 billion
Standard Chartered 1.6 billion
Kenya Commercial 859 million
Citibank Kenya 574 million
National Bank of Kenya 432
Commercial Bank of Africa 482 million
Cooperative 380 million
Equity 233 million
Investment & Mortgages 208 million
NIC 193 million
Return on Assets
Development Bank of Kenya 4.06%
Dubai 3.38%
Equity 2.61%
Charterhouse 2.48%
Standard Chartered 2.35%
Barclays 2.05%
Citibank 2.04%
Commercial Bank of Africa 2.03%
Customer Deposits
Barclays 83 billion
Standard Chartered 59 billion
Kenya Commercial 57 billion
Cooperative 41 billion
National Bank of Kenya 25 billion
Citibank 21 billion
Net Loans
Barclays 63 billion
Kenya Commercial 33 billion
Cooperative 30 billion
Standard Chartered 28 billion ,461
National Bank of Kenya 23 billion
NIC 12 billion
Citibank Kenya 12 billion
CFC 11 billion
Tier 1
Tier 1 are banks whose assets exceed 25 billion shillings ($333 million)
Assets (profit before tax)
Barclays 102,802 (2,103) i.e. 103 billlion in assets, 2.1 billion in six month profits
Kenya Commercial 70,898 (859)
Standard Chartered 68,829 (1,618)
Cooperative 50,982 (380)
National Bank of Kenya 31,701 (432)
Citibank Kenya 28,174 (574)
Tier 2
Tier 1 are banks whose assets range from 6 to 24.9 billion shillings ($80 – 333 million) Note that CBA has gone from being a mid tier 2 bank to almost tier 1 since its merger with First American Bank.
Assets (profit before tax)
Commercial Bank of Africa 23,742 (482)
NIC 19,023 (193)
CFC 17,616 (70)
Investment & Mortgages 15,995 (208)
Diamond Trust 13,429 (146)
Stanbic 12,525 (144)
Housing Finance 9,719 (29)
Equity 8,925 (233)
Baroda 8,840 (163)
Imperial 7,542 (128)
Bank of India 6,301 (65)
Prime 6,048 (49)
Tier 3
Banks whose assets are below 6 billion shillings ($80 million)
Fina 5,865 (36)
Guardian 4,597 (34)
Giro 4,568 (23)
Habib 4,450 (56)
ABC 4,236 (65)
Akiba 4,157 (48)
Middle East 4,156 (48)
Southern Credit 3,945 (25)
Victoria 3,827 (67)
Equatorial 3,070 (61)
Charterhouse 3,067 (76)
K-Rep 3,026 (43)
Consolidated 2,650 (14)
Development Bank of Kenya 2,412 (98)
Chase 2,270 (27)
Transnational 2,140 (35)
Oriental (formerly Delphis) 1,629 (-36)
Fidelity 1,568 (13)
Dubai 1,095 (37)
City Finance 564 (8)
Monday, August 29, 2005
The Constitution
Kenyans have been asked to read the new draft constitution for themselves, which is now available (1.2 MB PDF) at the State House Kenya Website
Thursday, August 25, 2005
Year ends in June for some
Uchumi
Just two days after closing the register to commence a rights issue, Uchumi issued profit warning indicating that profits will fall short of previously expected levels or losses will be larger than expected for their year which ended on June 30 2005.
Portland Cement
The nationwide housing & building construction boom combined with the availability of constituency development funds led to an after tax profit of 608 million at the East African Portland Cement. But turning a foreign currency loss of 638m 04 to a 200m shilling gain in 2005 is the main reason for shareholders to be happy for their Kshs 2.50 dividend.
Banks
Banks must publish their half-year results by August 31 and so far the top banks are as follows, with CBA, CFC, Imperial, Paramount, HFCK and Stanbic and Universal still waiting for the deadline.
Six-month results:
Bank (profit before tax in millions of shillings)
Barclays 2,103
Stanchart 1,618
KCB 859
Citibank 574
NBK 432
Coop 380
Equity 233
I&M 208
NIC 193
Baroda 163
Others
Mumias will announce their annual results tomorrow, after which will come results from East African Breweries and ICDCI
Just two days after closing the register to commence a rights issue, Uchumi issued profit warning indicating that profits will fall short of previously expected levels or losses will be larger than expected for their year which ended on June 30 2005.
Portland Cement
The nationwide housing & building construction boom combined with the availability of constituency development funds led to an after tax profit of 608 million at the East African Portland Cement. But turning a foreign currency loss of 638m 04 to a 200m shilling gain in 2005 is the main reason for shareholders to be happy for their Kshs 2.50 dividend.
Banks
Banks must publish their half-year results by August 31 and so far the top banks are as follows, with CBA, CFC, Imperial, Paramount, HFCK and Stanbic and Universal still waiting for the deadline.
Six-month results:
Bank (profit before tax in millions of shillings)
Barclays 2,103
Stanchart 1,618
KCB 859
Citibank 574
NBK 432
Coop 380
Equity 233
I&M 208
NIC 193
Baroda 163
Others
Mumias will announce their annual results tomorrow, after which will come results from East African Breweries and ICDCI
Good Sports News Day
Cricket
An Indian newspaper reports that Kenya may be among six countries that could start playing one-day international cricket by the end of the year against Test Nations to give them more international exposure.
Soccer
Even though spectators will be barred from attending the Kenya vs. Tunisia World Cup qualifier, the match will be shown on Super Sport (confirmed: Saturday 03 September 15:45 - 18:00 SS3) and perhaps on NTV or KBC.
Motor Rallying
The 2006 Kenya Safari rally will be held in March 2006. It will be classified as a round of the African Rally Championships (ARC), and if successfully and profitably staged, could lead to the Safari being a World Rally Championships (WRC) event in 2008.
An Indian newspaper reports that Kenya may be among six countries that could start playing one-day international cricket by the end of the year against Test Nations to give them more international exposure.
Soccer
Even though spectators will be barred from attending the Kenya vs. Tunisia World Cup qualifier, the match will be shown on Super Sport (confirmed: Saturday 03 September 15:45 - 18:00 SS3) and perhaps on NTV or KBC.
Motor Rallying
The 2006 Kenya Safari rally will be held in March 2006. It will be classified as a round of the African Rally Championships (ARC), and if successfully and profitably staged, could lead to the Safari being a World Rally Championships (WRC) event in 2008.
Tuesday, August 23, 2005
Where to buy Shares
These are the results of an informal research survey on stock brokers. It is the by-products of three different queries on information; one from a friend who asked me where to buy shares, second from Omani who had asked me to compare the various stockbrokers and third was a request from Afromusing who had asked how one could buy NSE shares while living in the US.
One first needs to open a CDS account which is free; by filling and signing a CDS 1 form, and providing two passport size photographs and a copy of your ID/Passport. The CDS 1 form are available at all stockbrokers and can usually be mailed to applicants upon request.
Here are the survey results in reverse order:
E-mail not working
Ashbhu Securities Ltd. Finance House, 10th Floor, P.O. Box 41684 Nairobi Tel. 210178/212989 Fax. 210500 E-Mail: ashbhu@net2000ke.com
Nyaga Stockbrokers Ltd. Nation Centre, 12th Floor P.O. Box 41868 Nairobi Tel. 315628/9 Fax. 315630/315748 E-Mail: nyagastk@users.africaonline.co.ke
E-mail and web site not working
Suntra Investment Bank Ltd. Nation Centre, 10th Floor P.O. Box 74016 Nairobi Tel. 337220 Fax. 224327 E-Mail: info@suntrastocks.co.ke WEB: http://www.suntrastocks.co.ke
Francis Thuo & Partners Ltd. International Life House, 13th Floor P.O. Box 46524 Nairobi Tel. 226531/2/3 Fax. 228498 E-Mail: ftbrokers@wananchi.com WEB: http://www.ftbrokers.com
Kestrel Capital (Ea) Limited Hughes Building, 7th Floor P.O. Box 40005 Nairobi Tel. 251758 Fax. 243264 E-Mail: info@kestrelcapital.com WEB: http://www.kestrelcapital.com
No response to e-mail within 24 hours and web site not working
Discount Securities Ltd International House, 3rd Floor P.O. Box 42489 Nairobi Tel. 219552/38 Fax. 230987 E-Mail: discount@dsl.co.ke WEB: http://www.e-bsolutions.biz/discount
Solid Investment Securities Ltd Contrust House, 6th Floor P.O. Box 63046 Nairobi Tel. 244272/9 Fax. 244280 E-Mail: sisl@solidkenya.com http://www.solidkenya.com site under construction but not active
Standard Investment Bank Ltd. Hazina Towers, 17th Floor, P.O. Box 13714 Nairobi Tel. 220225/240296/227004 Fax. 240297 E-Mail:info@standardstocks.com WEB: http://www.standardstocks.com site under construction
No response to e-mail within 24 hours
Ngenye Kariuki & Co. Ltd: Travel (UTC) House, 5th Floor, P.O. Box 12185 Nairobi Tel. 224333/226250 Fax. 241825 E-Mail: ngenyekari@wananchi.com
Crossfield Securities Ltd IPS Building, 5th Floor , P.O. Box 34137 Nairobi Tel. 246036/245971 Fax. 245971 E-Mail: crossfield@wananchi.com
Reliable Securities Ltd. Standard Building, 3rd Floor P.O. Box 50338 Nairobi Tel. 241350/4/79 Fax. 241392 E-Mail: reliable@gt.co.ke
African Alliance Kenya Ltd Kenya Re Towers, Ground Floor, Upper Hill, P.O. Box 27639, 0506 Nairobi Tel. 2735013/2735154/2735138 Fax. 2731162 E-Mail: otienol@africanalliance.co.ke
Sterling Securities Ltd. Finance House, 10th Floor P.O. Box 45080, 00100 Nairobi
Tel. 213914/244077 Mobile: 0723153219/0734219146 Fax. 218261 E-Mail: info@sterlingstocks.com
CFC Financial Services - Stockbroking Division Corner House, Ground Floor P.O. Box 47198 - 00100 Nairobi Tel. 221452/3 Fax. 218813 E-Mail: cfcfs@cfcgroup.co.ke FYI: These are the brokers I use
Top Firms:
4. APEXAFRICA INVESTMENT BANK LTD
Rehani House, 4th Floor P.O. Box 43676,Nairobi Tel. 242170/220517 Fax. 215554
E-MAIL: invest@apexafrica.com 3 hours to respond to my e-mail
WEB: http://www.apexafrica.com site is a bit basic, and not updated much
Costs: 2.1% if transaction is worth less than 100,000 and 1.8% if above 100,000
3. DYER & BLAIR INVESTMENT BANK LTD
Loita House, 10th Floor P.O. Box 45396 Nairobi Tel. 227803/4/5 Fax. 218633
E-MAIL: admin@dyer.africaonline.co.ke 25 hours to respond to e-mail
WEB: http://www.dyerandblair.com Web site allows online account management, is up to date, but rather slow
Minimums: 100 shares per transaction
Commission: 2.1% for any deal less than 100,000 shillings and 1.8% for any transaction amount above that. Also charge revenue stamp duty of two shillings for every ten thousand shillings.
2. FAIDA SECURITIES LTD
Windsor House, 1st Floor P.O. Box 45236 Nairobi Tel. 243811/2/3 Fax. 243814
E-MAIL: faidastocks@wananchi.com 24 hours to respond to e-mail
WEB: http://www.faidastocks.com Have online account management and their web site is up to date
Minimums: 100 shares per transaction
Commission: 2.1% for transactions below Kshs100,000 and 1.8% for transactions above Kshs 100,000.
1. FRANCIS DRUMMOND & CO. LTD.
Hughes Building, 2nd Floor P.O. Box 45465, Nairobi Tel. 318690/318689 Fax. 223061
E-MAIL: info@francisdrummond.com e-mail response in 2 hours.
WEB:http://www.francisdrummond.com The web site is updated daily with company news and disclosures. They also have online account management features enabling clients to trade and manage their accounts through the web site, at no extra charge and many Kenyans in the diaspora are already using this service.
Minimums: starting trade is 100 shares for new clients
Commission: For purchases above 100,000 shillings, charges are 1.8% and below 100,000, charges are 2.1%.
One first needs to open a CDS account which is free; by filling and signing a CDS 1 form, and providing two passport size photographs and a copy of your ID/Passport. The CDS 1 form are available at all stockbrokers and can usually be mailed to applicants upon request.
Here are the survey results in reverse order:
E-mail not working
Ashbhu Securities Ltd. Finance House, 10th Floor, P.O. Box 41684 Nairobi Tel. 210178/212989 Fax. 210500 E-Mail: ashbhu@net2000ke.com
Nyaga Stockbrokers Ltd. Nation Centre, 12th Floor P.O. Box 41868 Nairobi Tel. 315628/9 Fax. 315630/315748 E-Mail: nyagastk@users.africaonline.co.ke
E-mail and web site not working
Suntra Investment Bank Ltd. Nation Centre, 10th Floor P.O. Box 74016 Nairobi Tel. 337220 Fax. 224327 E-Mail: info@suntrastocks.co.ke WEB: http://www.suntrastocks.co.ke
Francis Thuo & Partners Ltd. International Life House, 13th Floor P.O. Box 46524 Nairobi Tel. 226531/2/3 Fax. 228498 E-Mail: ftbrokers@wananchi.com WEB: http://www.ftbrokers.com
Kestrel Capital (Ea) Limited Hughes Building, 7th Floor P.O. Box 40005 Nairobi Tel. 251758 Fax. 243264 E-Mail: info@kestrelcapital.com WEB: http://www.kestrelcapital.com
No response to e-mail within 24 hours and web site not working
Discount Securities Ltd International House, 3rd Floor P.O. Box 42489 Nairobi Tel. 219552/38 Fax. 230987 E-Mail: discount@dsl.co.ke WEB: http://www.e-bsolutions.biz/discount
Solid Investment Securities Ltd Contrust House, 6th Floor P.O. Box 63046 Nairobi Tel. 244272/9 Fax. 244280 E-Mail: sisl@solidkenya.com http://www.solidkenya.com site under construction but not active
Standard Investment Bank Ltd. Hazina Towers, 17th Floor, P.O. Box 13714 Nairobi Tel. 220225/240296/227004 Fax. 240297 E-Mail:info@standardstocks.com WEB: http://www.standardstocks.com site under construction
No response to e-mail within 24 hours
Ngenye Kariuki & Co. Ltd: Travel (UTC) House, 5th Floor, P.O. Box 12185 Nairobi Tel. 224333/226250 Fax. 241825 E-Mail: ngenyekari@wananchi.com
Crossfield Securities Ltd IPS Building, 5th Floor , P.O. Box 34137 Nairobi Tel. 246036/245971 Fax. 245971 E-Mail: crossfield@wananchi.com
Reliable Securities Ltd. Standard Building, 3rd Floor P.O. Box 50338 Nairobi Tel. 241350/4/79 Fax. 241392 E-Mail: reliable@gt.co.ke
African Alliance Kenya Ltd Kenya Re Towers, Ground Floor, Upper Hill, P.O. Box 27639, 0506 Nairobi Tel. 2735013/2735154/2735138 Fax. 2731162 E-Mail: otienol@africanalliance.co.ke
Sterling Securities Ltd. Finance House, 10th Floor P.O. Box 45080, 00100 Nairobi
Tel. 213914/244077 Mobile: 0723153219/0734219146 Fax. 218261 E-Mail: info@sterlingstocks.com
CFC Financial Services - Stockbroking Division Corner House, Ground Floor P.O. Box 47198 - 00100 Nairobi Tel. 221452/3 Fax. 218813 E-Mail: cfcfs@cfcgroup.co.ke FYI: These are the brokers I use
Top Firms:
4. APEXAFRICA INVESTMENT BANK LTD
Rehani House, 4th Floor P.O. Box 43676,Nairobi Tel. 242170/220517 Fax. 215554
E-MAIL: invest@apexafrica.com 3 hours to respond to my e-mail
WEB: http://www.apexafrica.com site is a bit basic, and not updated much
Costs: 2.1% if transaction is worth less than 100,000 and 1.8% if above 100,000
3. DYER & BLAIR INVESTMENT BANK LTD
Loita House, 10th Floor P.O. Box 45396 Nairobi Tel. 227803/4/5 Fax. 218633
E-MAIL: admin@dyer.africaonline.co.ke 25 hours to respond to e-mail
WEB: http://www.dyerandblair.com Web site allows online account management, is up to date, but rather slow
Minimums: 100 shares per transaction
Commission: 2.1% for any deal less than 100,000 shillings and 1.8% for any transaction amount above that. Also charge revenue stamp duty of two shillings for every ten thousand shillings.
2. FAIDA SECURITIES LTD
Windsor House, 1st Floor P.O. Box 45236 Nairobi Tel. 243811/2/3 Fax. 243814
E-MAIL: faidastocks@wananchi.com 24 hours to respond to e-mail
WEB: http://www.faidastocks.com Have online account management and their web site is up to date
Minimums: 100 shares per transaction
Commission: 2.1% for transactions below Kshs100,000 and 1.8% for transactions above Kshs 100,000.
1. FRANCIS DRUMMOND & CO. LTD.
Hughes Building, 2nd Floor P.O. Box 45465, Nairobi Tel. 318690/318689 Fax. 223061
E-MAIL: info@francisdrummond.com e-mail response in 2 hours.
WEB:http://www.francisdrummond.com The web site is updated daily with company news and disclosures. They also have online account management features enabling clients to trade and manage their accounts through the web site, at no extra charge and many Kenyans in the diaspora are already using this service.
Minimums: starting trade is 100 shares for new clients
Commission: For purchases above 100,000 shillings, charges are 1.8% and below 100,000, charges are 2.1%.
Monday, August 22, 2005
KPLC to offer fibre optics
From Balancing Act Africa:
Kenya Light and Power Company (KPLC) is reported to be seeking a licence to sell fibre capacity and will invest Kshs. 2.2 billion if it gets the go-ahead. Funding for the investment is coming from the European Investment Bank under its Energy Sector Recovery Project and KPLC has chosen a German company (Fichtner Gmbh) to provide consultancy services for the project which will connect Nairobi, Mombasa, Nakuru, Kisumu, Eldoret, Nyeri and Tororo in Uganda providing a national backbone for telecommunications players.
Kenya Light and Power Company (KPLC) is reported to be seeking a licence to sell fibre capacity and will invest Kshs. 2.2 billion if it gets the go-ahead. Funding for the investment is coming from the European Investment Bank under its Energy Sector Recovery Project and KPLC has chosen a German company (Fichtner Gmbh) to provide consultancy services for the project which will connect Nairobi, Mombasa, Nakuru, Kisumu, Eldoret, Nyeri and Tororo in Uganda providing a national backbone for telecommunications players.
Friday, August 19, 2005
This Week
The Blues
It’s that time of the month again.
Stanchart Top Bank
Market Intelligence published their eighth annual banking survey this week, and ranked Standard Chartered as the top bank in Kenya, followed by Barclays and surprisingly coming third was Equity Bank no. Other rankings are Citibank 9th, KCB 25, National Bank 26, and Co-operative Bank at number 30.
Corruption
The Economist took its bi-monthly look at Kenya and notes that the prosecution of anti-corruption cases will continue to fail as long as they are handled by the Attorney General’s office – and that Parliament should transfer these powers to the Anti-Corruption Commission.
Privatization
Both the Daily Nation and the East African Standard condemned the Privatisation Bill passed last week in Parliament, because it handed the entire privatisation process over to a "Gang of Eleven" - political appointees handpicked by the president and the Minister for Finance and who are not subject to approval of the Parliament . Earlier drafts of the Bill had provided for the involvement of bodies such as the Law Society of Kenya, the Institute of Certified Public Accountants of Kenya and the Federation of Kenya Employers in the privatisation process.
Elsewhere, India has abandoned plans to privatise a dozen profitable state-owned companies.
Airport Hotel booming
The new Panari Hotel is doing roaring business from airline passengers and crews. Because of its location on Mombasa Road, about halfway between Nairobi city and JKIA , hotel guests rarely have to worry about traffic jams on their way to the airport for their flights. It is also quite convenient for Wilson Airport passengers.
Debt forgiveness
The Kenya Planters Coffee Union (KPCU) has re-opened a debt moratorium window 1st September to December 31st 2005. This will extend debt relief to farmers by giving them a chance to repay principal amount (no interest will be charged) from 31st December 1991 to 31st December 2001 with all interest payments forgiven.. However, this is not likely to fly as coffee farmers are asking the government for complete, 100% debt forgiveness including principal.
Sports Weekend
Saturday 20 August
12:30 - 15:00 MNET/SS1 Tri-Nations:: Australia vs SA,
13:00 - 14:15 SS2 Formula One: Turkish Qualifying,
14:10 - 17:00 SS3 FA Premiership:: Man Utd vs Aston Villa,
14:15 - 16:30 SS2 Scottish:: Rangers vs Celtic,
17:00 - 19:15 SS3 FA Premiership:: Liverpool vs Sunderland,
17:00 - 19:15 SS6 FA Premiership:: Newcastle vs West Ham,
19:15 - 21:30 SS3/CSN FA Premiership:: Birmingham vs Man City,
22:45 - 01:00 SS7 Spanish Super Cup: Barcelona vs Real Betis,
Sunday 21 August
14:30 - 17:00 SS2 Formula One: Turkish Main Race,
15:00 - 17:45 SS3 FA Premiership:: Bolton vs Everton,
17:45 - 20:15 SS3 FA Premiership:: Chelsea vs Arsenal,
18:00 - 21:00 SS1 IAAF GP: GP - Sheffield,
It’s that time of the month again.
Stanchart Top Bank
Market Intelligence published their eighth annual banking survey this week, and ranked Standard Chartered as the top bank in Kenya, followed by Barclays and surprisingly coming third was Equity Bank no. Other rankings are Citibank 9th, KCB 25, National Bank 26, and Co-operative Bank at number 30.
Corruption
The Economist took its bi-monthly look at Kenya and notes that the prosecution of anti-corruption cases will continue to fail as long as they are handled by the Attorney General’s office – and that Parliament should transfer these powers to the Anti-Corruption Commission.
Privatization
Both the Daily Nation and the East African Standard condemned the Privatisation Bill passed last week in Parliament, because it handed the entire privatisation process over to a "Gang of Eleven" - political appointees handpicked by the president and the Minister for Finance and who are not subject to approval of the Parliament . Earlier drafts of the Bill had provided for the involvement of bodies such as the Law Society of Kenya, the Institute of Certified Public Accountants of Kenya and the Federation of Kenya Employers in the privatisation process.
Elsewhere, India has abandoned plans to privatise a dozen profitable state-owned companies.
Airport Hotel booming
The new Panari Hotel is doing roaring business from airline passengers and crews. Because of its location on Mombasa Road, about halfway between Nairobi city and JKIA , hotel guests rarely have to worry about traffic jams on their way to the airport for their flights. It is also quite convenient for Wilson Airport passengers.
Debt forgiveness
The Kenya Planters Coffee Union (KPCU) has re-opened a debt moratorium window 1st September to December 31st 2005. This will extend debt relief to farmers by giving them a chance to repay principal amount (no interest will be charged) from 31st December 1991 to 31st December 2001 with all interest payments forgiven.. However, this is not likely to fly as coffee farmers are asking the government for complete, 100% debt forgiveness including principal.
Sports Weekend
Saturday 20 August
12:30 - 15:00 MNET/SS1 Tri-Nations:: Australia vs SA,
13:00 - 14:15 SS2 Formula One: Turkish Qualifying,
14:10 - 17:00 SS3 FA Premiership:: Man Utd vs Aston Villa,
14:15 - 16:30 SS2 Scottish:: Rangers vs Celtic,
17:00 - 19:15 SS3 FA Premiership:: Liverpool vs Sunderland,
17:00 - 19:15 SS6 FA Premiership:: Newcastle vs West Ham,
19:15 - 21:30 SS3/CSN FA Premiership:: Birmingham vs Man City,
22:45 - 01:00 SS7 Spanish Super Cup: Barcelona vs Real Betis,
Sunday 21 August
14:30 - 17:00 SS2 Formula One: Turkish Main Race,
15:00 - 17:45 SS3 FA Premiership:: Bolton vs Everton,
17:45 - 20:15 SS3 FA Premiership:: Chelsea vs Arsenal,
18:00 - 21:00 SS1 IAAF GP: GP - Sheffield,
Tuesday, August 16, 2005
KQ follow-up
Results are out following the Kenya Airways director elections which were again decided by KLM (120m shares) and the Government in Kenya (106m shares), the major shareholders, who were in harmony in their voting this time. Minor shareholders (i.e. the rest of the top 10 owners) had limited impact on the outcome.
New directors in bold are:
Neil Canty: for 251m votes, against 5.6m votes (against all major shareholders for; one minor shareholder against)
Joram Kariuki for 500,000 votes, against 256m (all major shareholders against)
Ayisi Makatiani for 241m, against 15m (all major shareholders for; some minor shareholders against)
Evanson Mwaniki: for 241m, against 15m (all major shareholders for; some minor shareholders against
Chris Obura: for 15m, against 241m (1 minor shareholders for; KLM, Government & other minor shareholders against)
Japheth Rob: for 745,000, against 256m (all major shareholders against)
Lois Wambua: for 934,000, against 241m (all major shareholders against)
Also, the East African Standard has an intriguing take on the exit of former Chairman, Isaac Omolo Okero.
Redemption?
Eliud Kipchoge (centre) beats Kenenisa Bekele (left) and Hicham El Guerrouj (left)in Paris in 2003
Now that Kenyans are no longer the favourites, can they Kenya pull out more suprises and regain some track and field glory? Find out at the following upcoming events on Super Sport this month:
Friday 19 August: 20:45 - 21:30 SS6 IAAF Golden League: Weltklasse, LIVE
Sunday 21 August: 18:00 - 21:00 SS1 IAAF GP: GP - Sheffield, LIVE
Tuesday 23 August: 20:30 - 23:00 SS1 IAAF GP: Super GP - Linz, LIVE
Friday 26 August: 21:00 - 23:30 SS2 IAAF Golden League: Memorial Van Damme, LIVE
Sunday 28 August: 18:00 - 21:00 SS1 IAAF GP: GP - Rieti, LIVE
Monday, August 15, 2005
At the Nairobi Stock Exchange
IPO
Kengen
Kengen has now invited tenders for the advertising and public relations services (deadline September 8) for its IPO. The transaction and legal advisors they selected earlier are now hard at work towards the IPO which is expected early next year.
Equity
While Equity Bank management have told their staff that their IPO will be in October 2005, they have not publicly engaged any IPO advisory firms and partners.
Others
Other firms which have expressed interest are not expected to be ready for at least another year.
Buyouts
Barclays
Absa Bank of South Africa is expected to buy Barclays Kenya and 10 other Barclays Africa operations within the next two years following the successful conclusion of Barclays return to South Africa through a majority buyout of Absa. to buy Barclays Kenya
Pan African Insurance
South African underwriter, Sanlam has offered to purchase Africa Life (SA) which owns 50% Pan Africa Life Assurance Company which is listed at the NSE
Uchumi Rights
The Capital Markets Authority has approved an Uchumi Rights issue, to take place later this year which is expected to raise 1.2 billion shillings for the supermarket chain. The Uchumi shares register will close next Monday (August 22) and only shareholders of record will be allotted rights to subscribe to new ordinary shares.
Bad Loan
“Never borrow to play the market” is advice that is given the world. Yet Co-operative Bank is marketing a personal loan geared towards enabling people to buy shares at the Nairobi Stock Exchange. Terms are no security required for amounts below 500,000 and the maximum loan term is 36 months at competitive interest rates.
Sterling Comeback
Sterling Securities has been re-admitted as a broker at the NSE. The company has first had its license first suspended in 1999 following operational and managerial constraints
Daily Results
The NSE has set-up a daily price list, available at the end of each trading day at its web site click on the picture. It’s an excel spreadsheet with a major error - that can give you 27 copies if you choose to print it.
Kengen
Kengen has now invited tenders for the advertising and public relations services (deadline September 8) for its IPO. The transaction and legal advisors they selected earlier are now hard at work towards the IPO which is expected early next year.
Equity
While Equity Bank management have told their staff that their IPO will be in October 2005, they have not publicly engaged any IPO advisory firms and partners.
Others
Other firms which have expressed interest are not expected to be ready for at least another year.
Buyouts
Barclays
Absa Bank of South Africa is expected to buy Barclays Kenya and 10 other Barclays Africa operations within the next two years following the successful conclusion of Barclays return to South Africa through a majority buyout of Absa. to buy Barclays Kenya
Pan African Insurance
South African underwriter, Sanlam has offered to purchase Africa Life (SA) which owns 50% Pan Africa Life Assurance Company which is listed at the NSE
Uchumi Rights
The Capital Markets Authority has approved an Uchumi Rights issue, to take place later this year which is expected to raise 1.2 billion shillings for the supermarket chain. The Uchumi shares register will close next Monday (August 22) and only shareholders of record will be allotted rights to subscribe to new ordinary shares.
Bad Loan
“Never borrow to play the market” is advice that is given the world. Yet Co-operative Bank is marketing a personal loan geared towards enabling people to buy shares at the Nairobi Stock Exchange. Terms are no security required for amounts below 500,000 and the maximum loan term is 36 months at competitive interest rates.
Sterling Comeback
Sterling Securities has been re-admitted as a broker at the NSE. The company has first had its license first suspended in 1999 following operational and managerial constraints
Daily Results
The NSE has set-up a daily price list, available at the end of each trading day at its web site click on the picture. It’s an excel spreadsheet with a major error - that can give you 27 copies if you choose to print it.
Saturday, August 13, 2005
Kenya Airways 2005 AGM
Kenya Airways held its 2005 annual general meeting at the Bomas of Kenya auditorium on Friday August 12th
Erase 2004 memories
The airline was determined to avoid a repeat of the chaos that marred its 2004 meeting at the Carnivore. Some of the improvements made include:
- They provided free transportation by City Hoppa shuttle to and from the railway station to Bomas
- They handed out lunch boxes at the entrance to shareholders after registration (around 10 in the morning) along with a gift bag (with t-shirt and water bottle) – (some shareholders immediately turned round and left having got their objective for the day)
- They also set up an additional Hall at Bomas with A/V conferencing so that excess numbers could be accommodated and participate in the AGM.
Who’s Chairman?
Lawyer Dinesh Kapila was the company & board chairman today. Mr. Omolo Okero was also seated on the dais as a board director for the last time, after resigning as Chairman two weeks ago, at the end of July. Kapila will chair the company until the newly constituted board of directors elects a new chairman next week.
Mr Okero never said a word the whole meeting, sitting quietly as shareholder after shareholder repeatedly called for him to be commended for steering the company to great heights during his 14 years on the board, 10 as chairman. Strangely, the company has not seen fit to honour him with a fitting farewell, as Barclays did for their retiring Chairman, Sam Ambundo at their AGM. Maybe the company has something planned or perhaps has some reason for not wanting to honour Mr. Okero better.
Mr. Kapila is a no nonsense lawyer, with a relaxed style who ran his first KQ AGM like the pro that he I – having no doubt chaired other meeting and made presentations before courts and companies. He introduced the board, management, company secretary and auditor’s report in about ten minutes before opening the floor for shareholder questions.
Shareholder queries
The first questions were by shareholder Mr. A. W. Chami who I have seen at every AGM I have attended over the last one year. He asked why borrowing was up, and all the loans were from Barclays UK Company Response: debt is from fleet expansion and Barclays made the best offer
Dividends: More than 1/3 of the questions asked, were requests for increased dividends. In 2004 the company paid a dividend of 0.75 shillings per share (from earnings of 3.14) and this year they proposed to pay 1.25 out of earnings of 6.54 per share. Many felt this was too little and that the company should either pay interim dividends, convert revenue reserves, stop giving sumuni dividends (50 cent dividends), give bonus shares, pay a special dividend to honour chairman Okero, hand out actual cash or even forego giving lunch – all in a bid to pay more dividends. Company Response: Most earnings are retained as the airline must have huge amounts of cash available at all times since the industry is very unpredictable and also for fleet expansion
Fuel: Oil prices are cause for concern. They constitute 26% of airline cost, and oil prices are 61% up from a year ago. CR: the airline hedges its fuel costs for 3 months, and is considering adding a fuel surcharge to passenger tickets
Women: There are no lady board member can the company rectify that? CR: KQ has had women directors before such as Dr. Eddah Gahukia, and more women should apply for director elections
Drugs: KQ’s “Pride of Africa” image is being tarnished by repeated arrest of KQ employees for drug trafficking, perhaps they should pay their staff better? CR: drugs are a national problem bigger than KQ and caused by greed. The airline plans to employ some sniffer from later this year
Directors: Shareholder concerns included;
- Directors elections are a sham, as the two majority shareholders (KLM: 26% and the Kenya Government: 23%) call the shots.
- They proposed maximum terms of 8 years for directors to serve.
- There are no true minority shareholders on the Board. All directors of the company hold 3 to 4 other jobs elsewhere.
- Directors should eat lunch with shareholders and hear more of their concerns
Government: Finance Permanent Secretary Joseph Kinyua was present as a board member and he confirmed that the government will not be selling off is 23% shareholding saying that the KQ is national airline it is in the strategic interest of the Government to retain its minority shareholding in the company.
Fleet: Why buy new 777 planes instead of leasing? CR: At the time the decision was made, buying new aircraft was the only available option as leasing companies were not comfortable with the airline’s position. But now the airline is better established they will in fact be leasing 737-800 aircraft next year to replace some 737-200 planes
Privileged shareholders: Can shareholders get preference by giving them discounted air tickets or employing their relatives? CR: KQ carries 180,000 passengers a month and if they give each of the company’s 80,000 shareholders discounted flights they will have no profits to report. Also the airline has no favours/does not discriminate in employment matters
Funny: Questions that got the most laughs;
- The font in the annual report is too small
- Dividend so pitiful that street kids will not accept it if it is thrown at them.
- Now that shareholders all have their lunch (boxes), the meeting could go on till 5 p.m.
- Directors should be elected on the floor by acclamation not by secret ballot
- One shareholder wondered if he could get the gift bag he missed at last year’s meeting
Media
Immediately after the AGM ended, reporters rushed off for a separate media only briefing (no bloggers) to get some straight talk from management, away from the shareholders nonsense. Later on TV, MD Naikuni was shown denying that he had a conflict with former chairman Okero. I feel the media should pay more attention to shareholder questions as they sometimes bring out some candid answers from the Board.
Elections
There were three director vacancies, which were created by Dr Chris Obura, Neil Canty (the airline Finance Director, and Mr Omolo Okero retiring. Canty and Obura offered themselves for re-election while Okero retired for good.
Others candidates were
- Joram Kariuki – former NBK manager and politician
- Japeth Rob, a HR manager, vocal shareholder and a perennial candidate
- Evans Mwaniki, the Chairman of BAT Kenya and former shell executive
- Ayisi Makatiani, founder of Africa Online
- Also one lady got was on the panel, but she was absent today.
- Surprisingly, Paul Wanderi Ndungu, a lawyer with a substantial number of KQ shares (he’s the #4 shareholder with 2.14%) withdrew his candidacy at the meeting.
I predict that Dr. Obura and Neil Canty will be re-elected. The third slot will be a fight between Evans Mwaniki and Ayisi Makatiani. Audited election results will be published in the Tuesday paper.
All work and no play...
On the way out, I had my first view of the new and much raved about Land Rover Discovery LR3. It was being driven by KQ MD Naikuni.
Monday, August 08, 2005
Trees: a great investment
Kenya has a forest cover estimated at 1.7% and shrinking. Yet, tree planting is actually a great investment opportunity that has remained under-appreciated in many parts of the country.
Market
Depending on how you space the tree seedlings at planting and when you harvest the trees, there is a market for them. After 3 -4 years, you can harvest and sell the trees at 1 - – 4,000 shillings each for firewood or from 5 – 8 years, you can sell them off at 6,000 shillings per tree for poles. This can translate to profits of between 1 million and 6 million shillings per acre ($13,000 - $80,000 per acre) all from an initial crop of tree seedlings that can be bought for about 10 shillings each. One also has to factor in the opportunity cost of not growing maize or other cash/food crops over the years on the land, but these tend to have high annual production costs. Also, one advantage of trees is that they can be planted on undesirable or uncultivated land.
Major buyers of trees include tea factories (who use firewood to process tea leaves), Kenya Power & Lighting Company, East African Cables, Telkom (for poles), and numerous saw millers and local wood vendors.
Dangers:
Two main ones are fire and pests/disease which can wipe out a mature crop of trees. Also one must also protect land from squatters, who may destroy trees for firewood, or to build homes in what they consider to be “unoccupied forest” land, or whose grazing animals may eat young tree seedlings.
Science
Numerous advances have been made in research to speed up tree growth, and new fast-growing hybrids of trees from South Africa and Australia can be easily obtained. Some of the trees being planted around the country by enterprising land owners include Pinus, cypress eucalyptus grandis, and blue gum.
the Future
One farmer told me that he has no worries about funding his kids university education in ten years time and even recommended that parents should plant one acre of trees per child to cater for the cost of their upbringing and education.
Adopt a hero
The Adopt-a-light company has hit on a shrewd marketing tactic of honouring departed “heroes” by putting billboards of with their images on street signs around the city. The practice started with the late Vice President, Kijana Wamalwa, followed by Minister Karisa Maitha. More recently, the embattled company has honoured Starehe Director, Dr Geoffrey Griffin, and last weekend, it was first Vice President of Sudan - the late Dr. John Garang. The boards are temporary posters that cover the logos of corporations that pay for the actual street signs program through advertising.
Friday, August 05, 2005
What’s cooking?
Equity Bank last week forced its staff to buy up shares in the Bank. While they were awarded bonuses for the Bank’s good performance so far, they were then told that bonus and portions of their salaries would be channelled to a mandatory share purchase program. But employees are not being told how many shares they are buying or at what price.
The Bank will hold an extraordinary general meeting next week on August 10th with shareholders.
The Bank will hold an extraordinary general meeting next week on August 10th with shareholders.
Kenyan’s abroad
Sudan
As the impact of John Garang’s death is absorbed, we must all consider the following grand plans that have been announced in Kenya since the Sudan peace deal was signed early this year:
1. KCB announced plans to open a branch in Rumbek
2. East African Portland Cement plans to build a new cement factory in S. Sudan
3. CMC planned to open a vehicle plant.
4. Numerous proposed roads, and railway lines to Sudan
5. Oil pipeline to be built
6. New Kenyan Embassy to be set up in S. Sudan
These, among others, show what a profound economic impact that sustaining the peace deal could have for the two countries.
Iraq
Kevin Waruinge, who emigrated from Kenya in 1998, was among six US marines killed by a roadside bomb in Iraq this week.
Iran
As Transport Minister Dr. Chris Murungaru weighs his travel options, he must also ponder that the United States is considering denying a visa to the President of Iran, to prevent him from giving a speech at the United Nations in New York in September.
As the impact of John Garang’s death is absorbed, we must all consider the following grand plans that have been announced in Kenya since the Sudan peace deal was signed early this year:
1. KCB announced plans to open a branch in Rumbek
2. East African Portland Cement plans to build a new cement factory in S. Sudan
3. CMC planned to open a vehicle plant.
4. Numerous proposed roads, and railway lines to Sudan
5. Oil pipeline to be built
6. New Kenyan Embassy to be set up in S. Sudan
These, among others, show what a profound economic impact that sustaining the peace deal could have for the two countries.
Iraq
Kevin Waruinge, who emigrated from Kenya in 1998, was among six US marines killed by a roadside bomb in Iraq this week.
Iran
As Transport Minister Dr. Chris Murungaru weighs his travel options, he must also ponder that the United States is considering denying a visa to the President of Iran, to prevent him from giving a speech at the United Nations in New York in September.
Thursday, August 04, 2005
Bambuad & Out
Today, August 4th, is the final day for winners to collect their prizes in the Bambua Tafrija promotion. The company drew 77 winning numbers between April 18 and July 3. Not having been a winner myself despite my valiant efforts to succeed, I will now take a month-long vacation from their products to recover and reload.
Banking briefs
1%
August 31st is the deadline fro Banks to report their un-audited quarterly accounts as at June 30th. So far all nine Banks have posted profits at about 1% return on total assets – with Dubai Bank the highest so far at 3.38%.
Equity turnover
Many employees of Equity Bank may not see the may not see the pot of gold at the end of the rainbow that is the Bank’s IPO later this year as staff turnover is very high at the rapidly expanding Bank. Long working hours in extremely busy banking halls are the norm and unexcused employee absences often lead to instant dismissal
Upper Hill CBA
CBA new Upper Hill headquarters building should be ready late this year. Following the merger with First American, some Nairobi branches, and one in Mombasa will be closed next year.
Maximise Kencom
KCB will close its Tom Mboya and Moi Avenue branches. They will expand the Kencom banking hall, which has been underutilized for years. The KCB Card Centre has already been removed to Sarit Centre from the Moi Ave. branch which occupied two buildings.
August 31st is the deadline fro Banks to report their un-audited quarterly accounts as at June 30th. So far all nine Banks have posted profits at about 1% return on total assets – with Dubai Bank the highest so far at 3.38%.
Equity turnover
Many employees of Equity Bank may not see the may not see the pot of gold at the end of the rainbow that is the Bank’s IPO later this year as staff turnover is very high at the rapidly expanding Bank. Long working hours in extremely busy banking halls are the norm and unexcused employee absences often lead to instant dismissal
Upper Hill CBA
CBA new Upper Hill headquarters building should be ready late this year. Following the merger with First American, some Nairobi branches, and one in Mombasa will be closed next year.
Maximise Kencom
KCB will close its Tom Mboya and Moi Avenue branches. They will expand the Kencom banking hall, which has been underutilized for years. The KCB Card Centre has already been removed to Sarit Centre from the Moi Ave. branch which occupied two buildings.
Tuesday, August 02, 2005
Flat fee Banking
Flat fee bank accounts are the closest thing to free-checking accounts here. NIC was teh first with MOVE (launched in November 2003) and since then other Bank's have tried to imitate the MOVE concept whose main feature was an offer of a variety of bank transactions - all for a flat monthly fee. A comparison of the offers in order of rank;
1.Diamond Trust Open Plan:(490/= shillings per month)
Diamond Trust Open Plan includes ATM card, one chequebook each year inward salary processing, unlimited deposits & withdrawals from ATM and quarterly statement internal transfers. The Bank also has Open Air: (For 690/=) which comes with spouse ATM card, free internet banking, 2 cheque books a year, and monthly statement) and Open Sky: (For 790/=) which offers one a a designated relationship manager, 3 cheque books a year, 1 free bankers cheque per month and unlimited standing orders inclusive of loan instalments to other banks. DTB currently has 11 ATM locations (9 in Nairobi).
2. NIC Move (800/= month)
MOVE includes a free ATM Card, 50-leaf cheque book, incoming salary transfers, monthly Standing orders & direct debits, one free Bankers' cheque per month, internet banking, monthly statement, SMS Banking and MOVE Zone Locations have loan/account representatives and self-help PC available from 8 a.m. to 8 p.m. MOVE has 13 (11 in Nairobi) ATM locations.
3. Standard Chartered All-in-One (750/= per month)
Stanchart includes ATM card, cheque books, standing orders, local/foreign telegraphic transfer, travellers cheques, local ATM withdrawals, free foreign currency purchase/sale, free DEBIT card and one free bankers cheque per month. Has the largest ATM network (58) out of the four banks.
4. CFC (Saturday only)
CFC Bank has some transactions free on Saturdays only including: interim statements, chequebooks, banker’s cheques/drafts, and traveller’s cheques. (All are subject to minimum balance of 10,000 maintained throughout the month, otherwise a fee of Kshs.500 per month)
1.Diamond Trust Open Plan:(490/= shillings per month)
Diamond Trust Open Plan includes ATM card, one chequebook each year inward salary processing, unlimited deposits & withdrawals from ATM and quarterly statement internal transfers. The Bank also has Open Air: (For 690/=) which comes with spouse ATM card, free internet banking, 2 cheque books a year, and monthly statement) and Open Sky: (For 790/=) which offers one a a designated relationship manager, 3 cheque books a year, 1 free bankers cheque per month and unlimited standing orders inclusive of loan instalments to other banks. DTB currently has 11 ATM locations (9 in Nairobi).
2. NIC Move (800/= month)
MOVE includes a free ATM Card, 50-leaf cheque book, incoming salary transfers, monthly Standing orders & direct debits, one free Bankers' cheque per month, internet banking, monthly statement, SMS Banking and MOVE Zone Locations have loan/account representatives and self-help PC available from 8 a.m. to 8 p.m. MOVE has 13 (11 in Nairobi) ATM locations.
3. Standard Chartered All-in-One (750/= per month)
Stanchart includes ATM card, cheque books, standing orders, local/foreign telegraphic transfer, travellers cheques, local ATM withdrawals, free foreign currency purchase/sale, free DEBIT card and one free bankers cheque per month. Has the largest ATM network (58) out of the four banks.
4. CFC (Saturday only)
CFC Bank has some transactions free on Saturdays only including: interim statements, chequebooks, banker’s cheques/drafts, and traveller’s cheques. (All are subject to minimum balance of 10,000 maintained throughout the month, otherwise a fee of Kshs.500 per month)
Safaricom makes a better offer
With the cost of calls being very expensive, I have adopted a policy of only making phone calls at night, while sending SMS’s only during the day, unless I really have to. Now Safaricom has made things better for me by cutting the price of a daytime SMS’s by 50% - they will cost 2.50 each between 6 a.m. and 6 p.m. until October 31st.
Monday, August 01, 2005
Currency printing in Africa
From Africa Investor magazine’s May – August 2005 edition.I’d link to this article about currency printing in Africa , titled “Paper Wealth,” by Neil Ford but it’s not available online. By his research, the top currency companies in Africa are:
1. De La Rue (UK) (45% of African market)
2003 results:
Sales 211 million pounds (banknotes and paper only)
Net income 30.4 million pounds – and dividend of 13.6 p per share
One of the biggest producers and suppliers of bank notes, printing 150 national currencies worldwide and has supplied notes to Africa since 1860 when it delivered notes to Mauritania. Has a production plant in Kenya and paid a dividend of e23 million in 2004. The company plans to do better and is undergoing a restructuring that will see it dispose of non-core businesses to improve productivity
2 Giesecke & Devrient (G&D) (35% of African market)
2003 results:
Sales (banknotes and paper only) e588 million
European, Middle East and Africa business e479 million
Net income e28.8 million
Is the 2nd largest private sector supplier of paper money in Africa, and printed four billion bank notes last year. Has secured contracts from Nigeria, Ghana, Rwanda, Tanzania, Kenya, and others and has an office in Cairo and operations in SA and Nigeria.
3. Francois-Charles Oberthur Fiduciaire (FCOF) (10% of African market)
2003 results:
Sales (banknotes and paper only) e60 million
African business e30 million
This French firm has activities in 70 countries worldwide but has achieved most of its success in Franco-phone Africa.
Other players are:
ANB (US)
The Canadian Bank Note Company
Crane (Sweden)
Enschede (Netherlands)
Orell Fuessli (Switzerland)
In summary, low production costs make Africa an attractive place to set up printing facilities.
1. De La Rue (UK) (45% of African market)
2003 results:
Sales 211 million pounds (banknotes and paper only)
Net income 30.4 million pounds – and dividend of 13.6 p per share
One of the biggest producers and suppliers of bank notes, printing 150 national currencies worldwide and has supplied notes to Africa since 1860 when it delivered notes to Mauritania. Has a production plant in Kenya and paid a dividend of e23 million in 2004. The company plans to do better and is undergoing a restructuring that will see it dispose of non-core businesses to improve productivity
2 Giesecke & Devrient (G&D) (35% of African market)
2003 results:
Sales (banknotes and paper only) e588 million
European, Middle East and Africa business e479 million
Net income e28.8 million
Is the 2nd largest private sector supplier of paper money in Africa, and printed four billion bank notes last year. Has secured contracts from Nigeria, Ghana, Rwanda, Tanzania, Kenya, and others and has an office in Cairo and operations in SA and Nigeria.
3. Francois-Charles Oberthur Fiduciaire (FCOF) (10% of African market)
2003 results:
Sales (banknotes and paper only) e60 million
African business e30 million
This French firm has activities in 70 countries worldwide but has achieved most of its success in Franco-phone Africa.
Other players are:
ANB (US)
The Canadian Bank Note Company
Crane (Sweden)
Enschede (Netherlands)
Orell Fuessli (Switzerland)
In summary, low production costs make Africa an attractive place to set up printing facilities.
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