Monday, June 04, 2007

Forget the tip jar

This past week I discovered two jobs where one is forced to receive extra money just for doing their job (and it's not a bribe)

First is for workers at the harbour/ports. Even honest people walk away with (a minimum) Kshs. 2,000 at the end of the day in lunch money from grateful transporters just for doing their job. These guys (transporters) pay so many bribes that when someone does their job without asking for a bribe, they still can't get over that and press some cash into the reluctant hands of the officers.

Then, passing through the airport yesterday, I overhead several travelers, too bothered to reprice the cost of a cup of coffee in Kenya shillings, pay 1 or 2 dollars or pounds and dash off to their gate. How that money is shared is another matter – but when an 80 shillings soda is paid for with a £1 note (equivalent) to about 130 shillings, there's a healthy cut for someone – and probably more than any tip jar would bring in. This is probably a common occurrence in in the tourism industry (see how tour van drivers usually have plenty of dollars to sell)

6 comments:

mueja said...

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Sijui said...

Bankelele,
You have been remiss in providing generous updates on the shifting tides within the investment bank landscape i.e. Renaissance Capital and its agenda.
Its all over the news i.e. Forbes, Bloomberg et al how Jennings is launching a $ 1 billion dedicated Africa private equity fund with Saudi money (got this tidbit from reading in between the lines) and one of their entry points will be Kenya.
They are planning on being agressive, fashioned after their success in Russia and I assume the emerging economies of Eastern Europe and are planning on going head to head with China......

My question, what ripples are they causing in the market if any? They are set to make substantial investments in several 'lucrative' companies by year's end, do you know who they are targeting?

Boston Broker said...

say something about Accesskenya.

bankelele said...

Sijui: Renaissance Capital hired a new MD (ex-CFC), but the rest of their stuff has been talk about their plans. Once they get past CMA I'm there will be a lot more to discuss

Boston Broker: I did not subscribe to the IPO. I see 2m shares at 13.45 on day 1 and they have been more subdued in first day euphoria

Anonymous said...

I have on occassion done what you described as paying 130 for whaterver worth 25 bob. But what pained me the most was when at Duty free and I wanted to call my family to tell them I was about to leave, I paid 150 per min for a safaricom to safaricom call.I had to call 2 people and both conversations hardly lasted 30 seconds and I coughed 300 for both calls!!! The guy made 270 on me, ONLY!! Maybe safaricom should install a simu ya jamii at Duty free. After that incident, I prefer to use my UK line to call than be ripped off like that. Uneconomical but value for money.

ilanit said...

Much of the original work on Los Angeles private equity fund performance comes from seminal work of Steve Kaplan and Antoinette Schoar who reported that the performance of 746 private equity funds in their sample was close to that of the S&P 500, net of fees. Subsequent work by Phalippou and Gottschalg (PG)found the performance of private equity funds was below that of public stock markets.

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