Kutwa Tuesday – Post Madaraka Day

a day late, most from the daily papers

banking:
Refund dilemma: What should banks do with Safaricom refunds of 80%? Wisest would be to take the money and accept refunds from disappointed shareholders to pre-pay their loans. It would not be wise to refuse to accept money and insist that borrowers serve their loan durations– as idle money has many employers. The middle ground would be to facilitate investors to buy more safcom or other shares, but that’s a new risk area in investment banking. Ideally there should be loans for secondary market purchases or margin trading.
Next I-bank Equity Bank to set up an investment banking subsidiary (from Ocean Newsletter)
New note Kenya needs a new bank note - denomination 3,000 or 5,000 shillings soon.

NSE talking points:
Fuel hedging?: Despite the reduced flights, its’ amazing that Kenya Airways actually reduced its fuel bill in 2008 (albeit just 1.6%) – this is at a time when other airlines are going bankrupt because of high fuel costs. Can they do it again in ’09 without having to resort to radical fuel saving measures?
- Total Oil interested in Caltex and will compete against the government for the stations
- Government and NSSF to opt out of Housing Finance rights issue
- Fresh off a profit warning, the Sameer Africa boss out; is this the reason the reason ?
- Undugu? Nation reporters in Tz still not comfortable
- The City of Nairobi is now Safaricom broadband hotspot who are selling postpaid hotspot bundles.
Equipment is a broadband modem for 6,000 ($98) and a broadband router for 35,000 ($570) shillings. Service options offered include - up to 700MB for 2,000 ($33), up to 2GB for 4,000, 5GB for 7,000, 8GB for 10,000, and up to 30GB for 30,000 ($491) , but weak customer care remains an Achilles heel for new Safaricom products


Parastatals
- Refinery Coalition Libyan and India to share equaly/ (happily?) in the Kenya Oil Refinery in Mombasa
- The Agriculture Finance Corporation (AFC) asks farmers to continue paying their loans since most of them were not affected by post-election violence
- East African Portland cement to start paying all supplier invoices by electronic financial transactions (EFT)
- Kenya Railways selling land in makupa (7 acres), kibarani (9), embakasi (10) and a building in headquarters (D/L 27/6)
- Kenya Ports Authority to set up an inland container depot (dry port) at Eldoret (seeking bidder to lease operate by 20/6)
- Kenya Re say their will put up a transit hotel at JKIA (was in their 2006 prospectus)
- The City council of Nairobi seeks land to for a new cemetery
- Education: Makerere University (Ug) to offer courses in renewable energy