tag:blogger.com,1999:blog-93178252024-03-13T18:48:42.251+03:00BankeleleNairobi writer on Banking, Finance, Technology, and Investmentsbankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.comBlogger1582125tag:blogger.com,1999:blog-9317825.post-41822059096689614272016-05-25T14:18:00.001+03:002016-05-25T14:18:46.114+03:00Blog Migrated<div dir="ltr" style="text-align: left;" trbidi="on">
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Nairobi, Kenya-1.2920659 36.821946199999957-1.5460579 36.499222699999955 -1.0380739 37.144669699999959tag:blogger.com,1999:blog-9317825.post-59709372884270487872015-11-23T14:42:00.000+03:002015-11-23T14:42:00.974+03:00Interswitch in Kenya <div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://www.interswitchgroup.com/">Interswitch</a> is a Nigeria-based, transaction switching and electronic payments processing company, with operations in several African countries. The company, founded in 2002, provides payment solutions for individuals and organizations, mainly around financial services to several private sector companies, as well as in the public sector (government revenue, health care etc.) </div>
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Interswitch was <a href="http://www.heliosinvestment.com/support/uploads/1294742681Interswitch_311210.pdf">majority acquired</a> by Helios Investment Partners for $96 million in 2011. Helios are best known in Kenya for their large investments in Equity Bank, Wananchi Online, and soon, at Telkom Kenya, where they are in the process of buying out France's Orange Telecom.</div>
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Interswitch itself entered Kenya by buying 85% of Paynet Holdings in 2014, which was best known for it's Pesa Point network of ATM's, which was launched in 2005, and which grew to serve customers of over 100 institutions including several of the large and mid-size banks. At the time of the Interswitch purchase in 2014, Paynet Services had 2013 revenue of Kshs. 320 million (~$3.7 million) and powered of 1,200 ATM's and 1,300 bank agent locations in Kenya. </div>
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Interswitch also owns Verve International which is the largest card brand in Nigeria with almost 30 million customers. Interswitch launched the Verve card brand in Kenya last month, in a partnership with KCB, East Africa's largest bank. </div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Nairobi, Kenya-1.2920659 36.821946199999957-1.5460579 36.499222699999955 -1.0380739 37.144669699999959tag:blogger.com,1999:blog-9317825.post-51951157466776510492015-11-16T16:46:00.001+03:002015-11-19T10:39:29.276+03:00 Equity Bank 3.0: Agency Banking & Equitel <div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: "arial";">A few days after Equity
Bank released their Q3 results, the bank had another media briefing. CEO James
Mwangi explained the stuff he had said earlier about the shareholding change, agency banking, superiority as a Telco and
expansion plans for Africa.</span></div>
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<span style="font-family: "arial";"><i>Notes from the <a href="http://www.equitybankgroup.com/livestream">Live stream</a></i></span></div>
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<span style="font-family: "arial";"><b><u>Shareholding Change:</u></b><o:p></o:p></span></div>
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<li style="text-align: justify;"><span style="font-family: "arial";">Helios have exited from
the bank ahead of the end of the seven year life of the fund. It was a closed
fund.</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Equity listed in 2006 to
discover the price of the shares and on listing it was Kshs 50 per share more than they had been offered</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">They chose Helios over 5
other investors. Helios had patient investors (CDC, IFC, Soros)</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";"> -Helios is an
example of what private equity can do and the bank transformed from Kshs 2
billion to 65 billion in shareholder funds without having to do a rights
issues, or issue shares and went </span><span style="font-family: "arial";">from 20 billion to 400
billion of assets</span></li>
<li style="text-align: justify; text-indent: 0px;"><span style="text-indent: -0.25in;"><span style="font-family: "arial";">Helios exit was not a buy back, but a sale to third parties including Norfund, G</span></span><span style="font-family: "arial";">enesis, Invest</span><span style="font-family: "arial";">ec, NSSF Kenya, NSSF Uganda and Blackrock - some of who paid a premium of 10% above the market in order to secure large blocks of shares</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">The sale has allowed local shareholders to take up more shares in the bank and reduce the foreign ownership from 49% to 42%</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Helios netted about $500 million from the sale of there stake in Equity </span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Investors who missed out include China Construction Bank, China Development Bank, T</span><span style="font-family: "arial";">emasek (singapore) and </span><span style="font-family: "arial";">PIC (South Africa)</span></li>
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<span style="font-family: "arial";"><b><u>Agency Banking: </u></b><o:p></o:p></span></div>
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<span style="font-family: "arial";">is one of their most misunderstood and underrated products in which they </span><span style="font-family: "arial";">outsource services /costs to third parties for a fee, and share prosperity with their customers (who become suppliers of Equity services)</span></div>
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<li style="text-align: justify;"><span style="font-family: "arial";">Top agents are doing 3</span><span style="font-family: "arial";">00-400 transactions per day (one in Kitale is doing 500) and </span><span style="font-family: "arial";">top agents earn Kshs 750,000 to 1 million per month</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Going to add insurance, stockbroking - and transform 20,000 businesses. They want them to be profitable, so won't register a flood of new agents (e.g. 100,000 who will reduce the pie)</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">In A</span><span style="font-family: "arial";">ugust, agents transacted Kshs 29 billion (</span><span style="font-family: "arial";">2/3 is deposit, 1/3 is withdrawal) - agents have too much liquidity - that's why Equity/Equitel money transfer is free as it sweeps up excess cash at the agents </span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Hope to use agents to bring down their </span><span style="font-family: "arial";">cost income ratio down to 32%</span></li>
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<span style="font-family: "arial";"><o:p><b><u>Equitel / Phone Banking: </u></b></o:p></span></div>
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<li style="text-align: justify;"><span style="font-family: "arial";">E</span><span style="font-family: "arial";">quity is not a telco - it is a channel for banking service with value add for telco - so customers don't have to carry two phones</span></li>
<li style="text-align: justify;">A<span style="font-family: "arial";">verage sending amount is 2,000 - 3,000</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Mwangi asked Kenyans to </span><b><span style="font-family: "arial";"><i>furiously take up this product as it solves two problems - that of too much cash at the Equity agents and customers solve their problem of exhobitant money transfer costs.</i></span></b><span style="font-family: "arial";"><i> </i>E</span><span style="font-family: "arial";">quitel did 8 million transactions in August double the numbers down by agents</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Using USSD, customers used to do 2 transactions per month. That is now to 19 transactions per month with Equitel, and they h</span><span style="font-family: "arial";">ope to go 120 per month when they add payments.</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Kshs 4 billion has been disburse via Equitel . 1 million people have got these loans and the average is 4,000 or 5,000. They are going to increase the loan duration to </span><span style="font-family: "arial";">3 months, then 6, and will do loans of </span><span style="font-family: "arial";">3-5 years eventually. </span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Used to process 3,500 loans a day, but that's now 12,000 loans per day via mobile. </span><span style="font-family: "arial";">loans starts at 1 a.m. peak and are disburse by 5 a.m. before the branches open. </span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Credit </span><span style="font-family: "arial";">applications takes 2 minutes to check with the credit reference, the national identity bureau and also come up with a score analysis. </span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">You can send money to any telco, any bank account, any debit/credit card in the world</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Next is bill </span><span style="font-family: "arial";">presentation; you give your bank a list of recurring payments, and they will check the bill for you and ask you to confirm payment for electricity, water, dust etc.</span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Cardless banking - no need to carry an ATM card. </span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Other products are virtualization of chamas (software that keeps meeting minutes, chama balances, contributions, reminders, and disburses member loans by phone ( requests done by secretary, approved by chairman, paid by treasurer etc. all by mobile phone) </span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Harambees (fund raisers are also virtualized: You can see how much has been raised, who has donated a goat etc. </span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Everyone in Kenya can be an airtime reseller and earn a10% commission </span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">Equity Life will have medial advice, agricultural advice (trying to map all soils in the country to better advise farmers on fertilizer), education (they have put c</span><span style="font-family: "arial";">urriculum from </span><span style="font-family: "arial";">standard 4 to form 4 for kids to revise and do daily homework), </span><span style="font-family: "arial";">financial literacy etc </span></li>
<li style="text-align: justify;"><span style="font-family: "arial";">It has free insurance for anyone who spends Kshs 250 per month</span></li>
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<span style="font-family: "arial";">John Staley, the Director of Finance & Innovation, said Equitel was a free channel that enables them to do secure transactions that were not possible by USSD before and they will soon be rolling out a secure </span><span style="font-family: "arial";">mobile app.</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnhbEK7sZ3rpvBoNqn9iPyp6oy9ueTmVZxYsWmvTOJoLycTIYzKRE_tuKcLShryw2YT2JKkTyQEx-Ldmtp1DEtq3_R9nm6xIpGEoH4-93iBM9SQoS2KAg4saJzyypnvTy4bfoizg/s1600/Equity+briefing.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhnhbEK7sZ3rpvBoNqn9iPyp6oy9ueTmVZxYsWmvTOJoLycTIYzKRE_tuKcLShryw2YT2JKkTyQEx-Ldmtp1DEtq3_R9nm6xIpGEoH4-93iBM9SQoS2KAg4saJzyypnvTy4bfoizg/s320/Equity+briefing.jpg" width="320" /></a></div>
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<span style="font-family: "arial";">James Mwangi confirmed that a move by Safaricom to hike up the costs of Equitel to bank transfers had been shot down and such regulatory approval decisions will be made by third parties of payment companies and banks (including Equity). </span></div>
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<span style="font-family: "arial";"><b><u>Africa:</u></b></span><br />
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<span style="font-family: "arial";">Finally Equity are about conclude their purchase of ProCredit Bank in DRC with most regulatory approvals received and others that they have applied for (agency, mobile) pending - and one of their big take on's will be to process payroll of all civil servants in the DRC. </span></div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Equity Center, Ground Flr, Equity Center, Nairobi, Kenya-1.3010232 36.81229380000002-26.8230577 -4.496300199999979 24.2210113 78.12088780000002tag:blogger.com,1999:blog-9317825.post-62899721975264269442015-11-13T12:28:00.000+03:002015-11-13T12:28:23.962+03:00An Idiot's Guide to Getting a Tax Compliance Certificate (TCC)<div dir="ltr" style="text-align: left;" trbidi="on">
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<i style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">A guest post by <a href="https://twitter.com/MMuendo">Muendo</a> </span></i></div>
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<span lang="EN-GB" style="background: white; color: black; font-family: Arial; font-size: 12.0pt; line-height: 107%;"><i><b>Taxes, are the dues that we pay for the privileges of
membership in an organized society. </b></i></span><span lang="EN-GB" style="font-family: Arial; font-size: 12.0pt; line-height: 107%;"><a href="http://www.famous-quotes.com/author.php?aid=6238" title="1882-1945, Thirty-second President of the USA"><span style="background: white; color: #003366; text-decoration: none; text-underline: none;"><i><b>Franklin D.
Roosevelt</b></i></span></a><o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">One thing, as sure
as death is, you will pay taxes. As to how it is used, it is the prerogative of
the government of the day as well as the citizens to keep the government in
check to see how the paid taxes are being used to better the welfare of the
citizens. I posted a </span><span lang="EN-GB" style="font-family: Arial; font-size: 12.0pt; line-height: 107%;"><a href="https://twitter.com/MMuendo/status/661407448473931776"><span lang="EN-US" style="mso-ansi-language: EN-US;">Tweet</span></a></span><span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">, after
getting my Tax Compliance Certificate and I got a few people including </span><span lang="EN-GB" style="font-family: Arial; font-size: 12.0pt; line-height: 107%;"><a href="https://twitter.com/bankelele"><span lang="EN-US" style="mso-ansi-language: EN-US;">Mr. Banks</span></a></span><span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">, asking how I went round the
process. So here is my story. I hope it will educate some of y’all on this long
process. <o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">On company
registration, after you have received that blue/white document from the State
Law Office saying that you are a legal entity recognized by the Government of
Kenya, you have to go to the next step, which is getting a Personal
Identification Number (PIN) for the company. In this new regime, unlike others,
<b>you can’t do any business with the biggest spender of our taxes, the government
and its agencies, without a PIN</b>. In fact for you to open and a bank account,
for you to buy assets in your company’s name, for you to transact with any
organization in .KE, you will be required to produce a PIN Number. It is a
mandatory requirement. (I suspect soon the government will abolish ID numbers
and use your PIN to locate every single thing about an individual. Instead of
ID numbers, your PIN will serve as the ID number), (those are just my
thoughts). How do you get your PIN in our modern society? KRA went the tech way
to get you plugged in to the system. They have a robust system called </span><span lang="EN-GB" style="font-family: Arial; font-size: 12.0pt; line-height: 107%;"><a href="https://itax.kra.go.ke/"><span lang="EN-US" style="mso-ansi-language: EN-US;">iTax</span></a></span><span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">. Any new employee above the age of 18, and any registered organization,
has to register with iTax to get their PIN.<o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">Take that a notch
higher, for you <b>to increase the chances of you getting awarded a Tender, as
everything in this country is tendered, you need another document called a Tax
Compliance Certificate (TCC)</b>. The Tax man aka Kenya Revenue Authority (KRA),
certifies that you have submitted your returns and paid all your liabilities
before it issues you with that piece of paper stipulating that you are cleared
to conduct business for the next 6 – 12 months. <o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">Normally, for
start-ups, the first years certificate is quick to get as your business is new
and there is nothing much for them to look in to. (Though, rumour has that
they (KRA) are also slowly going to the route of issuing TCC to directors of
the companies and will slowly keep an eye on them as well. How true that is I
am yet to find out) Now since KRA introduced iTax to the Kenyan system, it
killed a few birds with one stone. <o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">Previously, people
never cared much about paying taxes. Now, if you are doing business you have to
have an Electronic Tax Register (ETR) machine that captures the Value Added Tax
(VAT) that you charge to your customers. Unless, you are selling zero rated
commodities, it is assumed that every enterprise (Start-up, SMEs, Blue Chip,
Multinationals etc.) has a PIN number and an ETR machine. Every transaction is/will be
captured there and therefore a customer is issued with an ETR receipt. A normal
ETR receipt has your PIN number and the amount you are charging the customer
plus VAT and a breakdown of what the VAT is. <o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">Again, previously,
the Tax man used to assume that all Kenyans are upright and outstanding
citizens who will pay their VAT after balancing their accounts (There is a way
that you need to do, briefly explained as, (1) there is what you are charged by
your suppliers and then (2) there is what you charge your customers, (3) the difference
is what you remit to the KRA, hence the term 'doing your returns'). Anyways, not
many Kenyans including the ones in authority, seemed to fit that tag. They
would find tax loopholes, using their accountants and tax lawyers, and exploit
them. And the government would lose revenue. So, the Tax man, aka Njiraini, decided to
tighten the belt to curb that habit. So every time you supply the government
<strike>with </strike><s>substandard goods with over inflated prices, because people have to eat</s>,
then the said agency <s>snitches</s>/alerts Njiraini and company, that company
X has supplied us with goods/services/consultancy, and here is 6% of the tax
they are going supposed to pay. Ask them where the other 10% is. And once the
6% is held, the agency, in return sends you an electronic withholding tax
certificate.<o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">As an upright
citizen, who wants to be in the good books of the Tax man, you are given up to
the 20<sup>th</sup> of every month to file returns of the previous month. Now,
KRA will check up on its database and see how many organisations have submitted
6% with your company name in there and compare it with the returns you have
submitted. Occasionally, you will find scenarios, where the Tax man needs to
refund you some money. Problem with KRA is, once that is the case, <b>it can take
up to 2 years even more before they <s>decide/remember</s><strike> they need to</strike> do tax
refunds. </b><o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">That aside, once
you have filled your returns, whether nil or you have a liability (This is
where you owe KRA money) or a Tax refund is required, you comply with the law
of the land. Failure to file returns attracts a hefty fine of Kshs. 10,000 (~$100) per month for the months you haven’t filed your returns plus a percentage interest
determined by a tax officer that you need to pay per month till you finish you
with your liability. This is not a joke, especially, now that the government is
tightening its laws on taxes and widening its tax base. <o:p></o:p></span></div>
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<span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">Here is a weird
thing that KRA does. It waits for say 3-4 years of a company existing. And
then, it is expected you have to have audited accounts say for the past two
years (That is <b>assuming you are done with your tax amnesty of 18 months</b> – not
sure whether this exists anymore,) and you have gotten a few good tenders here
and there, and then they knock on your door, to find out how you are carrying
out your business and how you have been performing in doing tax returns.)
Assuming you are an upright citizen means, you have 4 years of an annual Tax
Compliance Certificate issued and you have about 3 years audited accounts. They
will <b>request for all</b>, and I mean all, documents to support your claim of
existence. And by all I mean, from receipts, to P&L Accounts, to Audited
accounts, to bank statements. Who the heck remembers stuff that they did 4
years ago? The Tax man will flip through records and see whether you have dodged
taxes or you have acquired your TCC in a fraudulent manner. If you are a
citizen of no morals, they will subject you to a fine of a percentage of your
gross turnover and give you a time period to pay, failure to which, all
assets you own will be liquidated and the money is recovered. I know that a
bit to well, as a relative was being auctioned for tax non-compliance. <o:p></o:p></span></div>
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<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">Also, KRA is now
working overtime to ensure that all companies are registered on iTax. There is
a budgeted Kshs 8 billion to be spent in catching up with you if you are not iTax
compliant. <o:p></o:p></span></div>
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<span style="line-height: 107%;"><span style="font-family: Arial, Helvetica, sans-serif;">So, finally; </span></span></div>
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<span style="line-height: 107%;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<u><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 107%;">H</span>ere's an idiot’s guide to getting a TCC</span></u></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">1. Register at the iTax platform and get your PIN.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">2. Submit your returns every 20th of the month. <b>You had better submit a Nil return than be late</b> to submit the returns. Be prompt in doing your accounts reconciliation every month. Now, there are times you can’t afford an in-house accountant do your books, There are some great fellas, who I have worked with that can help you with that. Talk to Plus People Ltd. They are the people behind this great platform called <a href="https://www.uhasibu.co.ke/Website/Uhasibu">Uhasibu</a>. They have really assisted me in getting my books in order and ensuring that I use the Uhasibu system to run my small company. Also get an Auditor or a certified tax accountant to help you decipher and navigate the Kenyan tax laws and the levies that you need to pay as well as how to bring down your tax liability.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">3.<b> Make sure you get the Withholding Tax certificate, each time</b>, whatever agency you deal with submits that 6%. As much as the system is automated, follow through is important. I am talking from experience. I have a government agency I am chasing since February 2015, to give me my withholding tax certificate.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">4. Use the iTax system to submit your returns before the 20th. This is now an easier way, than to go queue at times towers to make your returns. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Arial, Helvetica, sans-serif;">5. It takes approximately, two (2) weeks between the expiry of your TCC and receiving a new TCC. Plan appropriately. During those 2 weeks, I do loads of client visits and queue up business for the next “financial” year. In those 2 weeks, Njiraini and Co, will be looking through your accounts and performance before giving you a clean bill of health. I know we people at .KE have this thing, I know a guy who can shorten that process, if you do well and good. But that’s the average time if you don’t know a guy.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">6. Make sure you do annual audited accounts, just in case KRA guys show up and want to see what you have been up to. Also, a great rule of accounts, it moves, have evidence of what happened (Receipts, Invoices, Petty Cash vouchers etc).</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">7. In case things go wrong, occasionally they do, have your auditor in place, when this KRA officers check up on you. They kind of know how to navigate those murky waters while you sort things out with the Tax man. </span></div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Times Tower, Haile Selassie Ave, Nairobi, Kenya-1.2906215 36.823939600000017-1.2911175000000001 36.823309100000017 -1.2901255 36.824570100000017tag:blogger.com,1999:blog-9317825.post-40405040386772705422015-11-12T13:38:00.001+03:002015-11-12T13:51:47.196+03:00Kenya Airways: Still in The Red<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: arial, helvetica, sans-serif;">This morning Kenya Airways (KQ) </span><a href="https://www.kenya-airways.com/global/About_Kenya_Airways/Investor_Information/Annual_Reports/" style="font-family: arial, helvetica, sans-serif;">released</a><span style="font-family: arial, helvetica, sans-serif;"> their half-year results. Some highlights from the investor briefing. </span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">• Half year Kenya Airways revenue was Kshs 56.7 billion same as last year. 90% is from passenger traffic, and 60% of their business is in Africa.</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">• Kenya's largest increase in tourists was in 2011, and the numbers dropped in 2012 & 13 with the largest decrease was in 2014, just as KQ added great capacity. JKIA passenger numbers have been flat for the last three years and for the last three months, they have had to adjust their schedule from 24 to 18 hours as the runway is being repaired.</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">•</span> <span style="font-family: "arial" , "helvetica" , sans-serif;">Half of airline industry profit is in North America, where strong capacity, consolidation, combined with ancillary revenue and lower fuel costs has had a major impact. The Middle East has low yield compared to investment, and Africa has 3% of global demand. </span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">• <b>Shareholder equity has gone from Kshs -6 billion last September, to Kshs -33 billion this year and KQ is talking to the CMA on how to reverse this. </b> </span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">• KQ has a turnaround plan, developed with Mckinsey, with 24 initiatives worth a potential $200M, that starts this month.</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">• Despite fuel cost coming down from Kshs 21 billion to Kshs, 13 billion, the half year loss went from Kshs 10.5 billion to 11.9 billion </span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbxvEHwPYxcVeFBJB6N9imU4dWmsSI13rY2SsVFD_wXqaIFg54nfuHeXl-r-SMSrkQZSCo6V8wJPNV83BIBQQFc4tpHctH978wHf6MFirQGXaherrJBX5GRF-dFCxo1BNh6HvmPA/s1600/KQ+IATA+2015+Forecast.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="179" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbxvEHwPYxcVeFBJB6N9imU4dWmsSI13rY2SsVFD_wXqaIFg54nfuHeXl-r-SMSrkQZSCo6V8wJPNV83BIBQQFc4tpHctH978wHf6MFirQGXaherrJBX5GRF-dFCxo1BNh6HvmPA/s320/KQ+IATA+2015+Forecast.jpg" width="320" /></a></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><u>Some other numbers</u></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">• Revenue per available seat decreased from 6.2 to 6.14</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">• Cabin factor was up from 64% to 68%</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">• Carried 2.14 million passengersm up from 2.10 million</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">• Cargo tons were 35,405 down from 37,255</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">• On time performance was 75% (down from 77%)</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">•</span> <span style="font-family: "arial" , "helvetica" , sans-serif;">Finance cost was 3.4 billion, up from 1.5 billion</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">The new chairman of the Kenya Airways board, Dennis </span>Awori,<span style="font-family: "arial" , "helvetica" , sans-serif;"> thanked the government, financiers, and suppliers for their support for the airline. CEO </span>Mbuvi<span style="font-family: "arial" , "helvetica" , sans-serif;"> </span>Ngunze<span style="font-family: "arial" , "helvetica" , sans-serif;"> said that the senate enquiry is ongoing and on Monday, senators will, for the first time, visit the airl</span>ine.</div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0tag:blogger.com,1999:blog-9317825.post-82108337230100699092015-11-11T02:35:00.002+03:002015-11-11T02:48:33.285+03:00How 30% Kenyan Shareholding of Foreign Companies was Conceived<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: "arial" , "helvetica" , sans-serif;">For the last few weeks there's been talk about the 30% rule. Yesterday the CS for Industrialization said it was a mistake, and the team at Anjarwalla & Khanna said they heard that it had been introduced late in the process and that they flagged it and written immediately to the Attorney General on it. </span></div>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: right;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUIUpcrq7Cfj9Rmdw8CBByYFrWpzixeIUwvtFWxWmgQ0iS1kWRHa1S868rxz1a92suic8C-5I3eegDMGpZK6C_8owscz1xetzSbwhIheKTNKxROAEjlRRq3jDapi7In8pf0Ece4g/s1600/30%2525+companies+act.jpg" imageanchor="1" style="clear: right; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUIUpcrq7Cfj9Rmdw8CBByYFrWpzixeIUwvtFWxWmgQ0iS1kWRHa1S868rxz1a92suic8C-5I3eegDMGpZK6C_8owscz1xetzSbwhIheKTNKxROAEjlRRq3jDapi7In8pf0Ece4g/s320/30%2525+companies+act.jpg" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Anjawalla & Khanna briefing</td></tr>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">But how did it come about? The talk was that it was introduced late in the third reading of amendments to the Companies Bill which was a voluminous bill - almost 800 pages and with 1,000 clauses - that was discussed in parliamentary sessions over a period of 5 days.</span></div>
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<span style="background-color: white; font-family: "arial" , "helvetica" , sans-serif;">The Hansard of one </span><a href="http://info.mzalendo.com/hansard/sitting/national_assembly/2015-08-06-14-30-00" style="font-family: arial, helvetica, sans-serif;">session</a><span style="background-color: white; font-family: "arial" , "helvetica" , sans-serif;"> (from </span><a href="http://info.mzalendo.com/" style="font-family: arial, helvetica, sans-serif;">Mzalendo</a><span style="background-color: white; font-family: "arial" , "helvetica" , sans-serif;">) shows that the clause that specified that foreign companies should </span><b style="font-family: arial, helvetica, sans-serif;">demonstrates that at least thirty per cent of the company’s shareholding is held by Kenyan citizens by birth </b><span style="background-color: white; font-family: "arial" , "helvetica" , sans-serif;">may have been introduced by Wesley Korir, the MP for Cherangany - and this led to a long debate late in the evening for parliament (the sitting time had been extended).</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">It was supported by some MP's and opposed by others including: </span></div>
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<b><span style="font-family: "arial" , "helvetica" , sans-serif;">For the amendment</span></b></div>
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<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Nicholas Gumbo: If you go to some neighbouring countries in East Africa, you cannot be allowed to register a company unless you give 50% to locals. Why should we be apologetic about this?</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">James Nyikal: The reason is that as Kenya is growing richer, the majority of Kenyans are getting poorer.. The reason is basically that a lot of the wealth we have is actually owned by foreigners and a few people who pretend to be businessmen but are basically agents for principals who are abroad. In South Africa, immediately after their independence, there was serious effort and companies had even to give shares to local people, so that ownership became local. So, 30% is acceptable and we should support it for the sake of Kenyans.</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Sammy Mwaita: I support because I remember when we were discussing the Public Procurement and Disposal Bill in this House, we pegged the local content at 40% , so that citizens may benefit from business. This is timely. We should initiate it from the time of registration. This is a very good move. </span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Robert Pukose: I support this amendment of 30%. This is because when you compare us with our neighbouring countries--- In Tanzania and Ethiopia it is 50%. Ethiopia makes it very positive because companies are not allowed to employ a foreigner who has qualifications which local people have. So, we should accept this 30%. </span></li>
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<b><span style="font-family: "arial" , "helvetica" , sans-serif;">Against the Amendment</span></b></div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizev4YbkxlViuiQeyQJDml45mWa4MumQVHsXmSbOc1IxAGuPgNpNdG-P1MSyiVqFHEPAAt3jTxY5Vv43nIKhZBwUCBU4NS93ukki3uqIjdUodUGWWGaD2VCoZpVwre707l5VMO5A/s1600/companies+30%2525.tiff" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="242" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizev4YbkxlViuiQeyQJDml45mWa4MumQVHsXmSbOc1IxAGuPgNpNdG-P1MSyiVqFHEPAAt3jTxY5Vv43nIKhZBwUCBU4NS93ukki3uqIjdUodUGWWGaD2VCoZpVwre707l5VMO5A/s320/companies+30%2525.tiff" width="320" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Hansard page from Mzalendo</td></tr>
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<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">(Senator) Gideon Moi: ..Number two is the fact that imposing 30% local shareholding on any foreign company is very extreme. People who want to put their money in a venture are going to be extremely wary of just picking on any shareholder. If I were to support the Member, the local shareholding would be less than 30% or none at all.</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">James Oyoo: When Kenya attained Independence, it was a prerequisite for any company to give shares to local Kenyans. The immense greed of Kenyans made us reduce it to 10% (when it) started going to individuals’ pockets. It is a good idea but it is ill conceived.</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Aden Duale: The history of Mobitelea and Safaricom is very clear. Some brokers would sit somewhere and this meant we would increase brokers on the streets.. We will make Kenyans who are brokers in the village to say that if you cannot give them 30%, you will not do business. That is not what happens in most--- President Obama says, “Take Kenya where South Korea has reached.” That law does not exist in South Korea and Malaysia...You must allow engineers to have companies but you will have people who have not gone to school. </span></li>
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<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Samuel Chepkonga: .. I was a regulator at the Communications Commission of Kenya (CCK). We provided a policy in which we said that for you to invest in the telecommunication sector you had to have a Kenyan partner with 30%..They kept amending the policy in the telecommunication sector to where it is now; there is 0% requirement for a Kenyan to invest in the telecommunication sector..Let me tell you Members, foreign direct investment comes in huge amounts such as US$500 million. Which Kenyan will produce US$150 million? Let us be serious. Secondly, we are a very poor country. We are seeking to attract foreign direct investment. You are now telling those companies which are seeking to invest in Kenya that this is not an attractive destination. This law is seeking to encourage and make Kenya a friendly investment country. If you are going to bring things such as these, you are going to chase direct foreign investment out of this country.</span></li>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Parliament Rd, Nairobi, Kenya-1.2896055 36.820698499999935-1.293574 36.815655999999933 -1.285637 36.825740999999937tag:blogger.com,1999:blog-9317825.post-42051531987474893412015-11-10T09:01:00.004+03:002015-11-10T09:01:55.332+03:00Dividend Payments across East Africa - Redux<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;">It’s been four years since </span><a href="http://bankelele.blogspot.co.ke/2011/08/dividends-payments-across-east-africa.html" style="font-family: Arial, Helvetica, sans-serif;">this post</a><span style="font-family: Arial, Helvetica, sans-serif;"> and the signs are still not encouraging for cross-border dividend payments across East Africa.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Good - <b>Safaricom</b>: I get my dividends by M-Pesa - in fact one came last week, right on the 15th anniversary of the company. At Safaricom, M-Pesa is the preferred method of paying dividends which are below Kshs 70,000 to shareholders - and this would work for almost 99% of their individual shareholders who all own less than 100,000 shares each.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">But for Ugandan shareholders of Safaricom, to receive the share of the largest dividend in Kenya’s history ($256 million), they get a cheque in the mailbox that takes 4 days to clear. The next thing for M-Pesa dividends is to have them automatically reinvested into buying other shares; but for now you can instantly lock the funds away in an interest earning M-Pesa fixed deposit.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">No change - <b>Stanbic Uganda</b>: Shareholders in Kenya get a cheque in the mail which takes one month to clear and costs $8-10 per cheque. No improvement, and not likely to change. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Bad: (a surprising step back this year is) <b>Bralirwa: </b>At last review, Bralirwa (the Rwanda brewery) dividend cheques were issued KCB Rwanda, and KCB Kenya was encasing cheques at their branches in Kenya provided Kenyan shareholders presented their cheques, and proved their identity - they could receive equivalent cash payments up to RWF50K (~$67). </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">This year that option is not there as KCB Kenya is not encashing cheques! A shareholder has to deposit the dividend cheque into KCB or any other Kenyan bank to get they payment. I tried that at my Barclays branch and they refused as they simply don't have Rwanda francs in their bank system. </span></div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0tag:blogger.com,1999:blog-9317825.post-82903029377849165632015-11-09T13:37:00.004+03:002015-11-11T02:49:26.190+03:00Kenya Companies Act 2015<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: "arial" , "helvetica" , sans-serif;">This morning, a session was held by the law firm of </span><span style="font-family: "arial" , "helvetica" , sans-serif;">Anjarwalla & Khanna</span><span style="font-family: "arial" , "helvetica" , sans-serif;"> in Nairobi to advise stakeholders abount the n</span><span style="font-family: "arial" , "helvetica" , sans-serif;">ew Companies Act and Insolvency Act that are now law. </span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">The Cabinet Secretary for </span><span style="font-family: "arial" , "helvetica" , sans-serif;">Industrialisation, Adan Mohamed, said that the day when President Uhuru Kenyatta signed 4 bills into law - the companies act, insolvency act, special economic zones act and business registration act - </span><span style="font-family: "arial" , "helvetica" , sans-serif;">was his proudest day in two years in the Cabinet.</span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">Partners at the law firm explained various sections of the new companies act including: </span></div>
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<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">It makes businesses easy to register and operate - and one person can form a company. </span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Memo (can be one page long) & articles are simpler </span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Role of the company secretary has been clarified. </span><span style="font-family: "arial" , "helvetica" , sans-serif;">Corporate governance has been clarified with penalties for directors and management including for conflict of interest.</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;"><b>30% local shareholding in a foreign company.</b> Adan said this was a mistake that the government would rectify. </span><span style="font-family: "arial" , "helvetica" , sans-serif;">The team from Anjarwalla & Khanna said that while the 30% rule is probably constitutional it's impractical, and the AG & government agree. They also explained that it is for new branches only - and does not apply to existing branches, or to any subsidiaries of foreign companies</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">It gives <b>minority shareholders</b> court powers if main shareholder/management are prejudicial or make bad decisions / transactions on behalf of the company</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">New company is able to do anything including borrow unless if it restricted</span></li>
<li style="text-align: justify;"><b style="font-family: Arial, Helvetica, sans-serif;">PE Investor oversight: </b><span style="font-family: "arial" , "helvetica" , sans-serif;">I</span><span style="font-family: "arial" , "helvetica" , sans-serif;">nvestors can attend board meetings as observers and without being directors or legally bound by decisions</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">A company must have at least one natural person as a director (all companies have 6 months to rectify this)</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Companies can buy back shares from other shareholders</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Kshs. 6.75 million (~$67,500) is the minimum paid-up share capital for a public company (this will affect some land owning companies and large property developers)</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Public companies need to know who beneficially owns their shares (the <b>true owners </b>behind proxies)</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">Companies are required to have websites and to publish financial statements online</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;"><b>Share buy backs</b> are now allowed. </span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;">All shareholders have rights to preemption when companies create new shares - </span><span style="font-family: "arial" , "helvetica" , sans-serif;">(and this can only be from profits, not new money)</span></li>
<li style="text-align: justify;"><span style="font-family: "arial" , "helvetica" , sans-serif;"><b>MBO and LBO</b>:'s banks could not finance acquisitions, but now they can. e.g. M</span><span style="font-family: "arial" , "helvetica" , sans-serif;">anagement can to a bank and use the assets of the company secure financing to buy it or pay off foreign outgoing shareholders - (this opens another exit opportunity for investors)</span></li>
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<span style="font-family: "arial" , "helvetica" , sans-serif;">Adan also said that the insolvency law, which previously was aimed on recoveries for secured creditors, is now focused on bringing insolvent companies back to life.</span></div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0tag:blogger.com,1999:blog-9317825.post-12143581993890384392015-11-08T22:58:00.001+03:002015-11-08T23:07:43.815+03:00FastJet Finally Get Kenya License <div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: #666666; font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white;"><span style="line-height: 20px;">The <a href="http://bankelele.blogspot.co.ke/2012/10/low-cost-flights-for-africa.html">three year</a> journey to get low-cost airline FastJet into Nairobi now seems to be nearer to it's goal following the licensing of FastJet Kenya to operate domestic air services between Nairobi and Mombasa, Kisumu, Eldoret, and Wajir. </span></span></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="background-color: white; color: #666666;"><span style="line-height: 20px;">However they were not granted other rights they had applied for to fly from Nairobi to international destinations including </span></span><span style="color: #666666;">Lusaka Harare Lilongwe and Entebbe that they serve from their current bas in Dar es Salaam, Tanzania. </span></span></div>
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<span style="font-family: "arial" , "helvetica" , sans-serif;"><span style="color: #666666;">Still it's a start. In the three years since they were established JamboJet (one by Kenya Airways) has established itself as a reliable true low cost carrier in the country, while one of the main local airlines </span></span><span style="color: #666666; font-family: "arial" , "helvetica" , sans-serif;">Jetlink has since gone out of business, leaving Fly540/Fly-SAX as the only other domestic airline with regular services to the main airports around the county. JamboJet also have designs on flying to neighboring countries, but an approval discussion was deferred in their case. </span></div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Jomo Kenyatta International Airport (NBO), Embakasi, Nairobi, Kenya-1.3227102 36.926069299999995-26.8447447 -4.3825247000000047 24.1993243 78.2346633tag:blogger.com,1999:blog-9317825.post-10248383373215710652014-08-02T16:17:00.001+03:002014-08-05T14:46:14.940+03:00M&A Moment: BritAm, Centum, other East Africa deals<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;"><i>Britam and Centum have had a busy few weeks.</i></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>BritAmEA</b> (i) Had an oversubscribed bond at the NSE that saw them raise Kshs 6 billion (ii) Completed the acquisition of 99% Real Insurance - giving them access to Mozambique, Malawi and Tanzania (the Competition Authority approved this deal with a caveat that they retain at least 85 of the 105 employees of Real) (iii) Established an office in Rwanda (IV) Britam will also pay about Kshs 2 billion for Equity's 25% in Housing Finance.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b>Centum</b> (i) Are proposing to acquire an additional 66% shares in K-Rep Bank (ii) Are seeking shareholder approval to create a Mauritius company, set up Kings Beverage, Bakki, Shefa subsidiaries, and also ratify the acquisition of 73% of Genesis & 30% of Broll (real estate) (iii) Ceded 42% of Two Rivers venture to investors at Kshs 6 billion, (iv) Are still in the running for Rea Vipingo offering Kshs 75 per share, over the Rea bid of Kshs 70 per share to other shareholders (v) Key Centum shareholder, Chris Kirubi said he wants to be a <a href="http://www.capitalfm.co.ke/business/2014/08/i-want-to-be-a-dollar-billionaire-says-kirubi/">dollar billionaire</a>. </span></div>
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<i><span style="font-family: Arial, Helvetica, sans-serif;">Other recent deals include</span></i></div>
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<b><u><span style="font-family: Arial, Helvetica, sans-serif;">Airlines</span></u></b></div>
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<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"><b>Kenya Airways</b> to give Tanzania's Precision Air a $10 million bailout. </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Waiting to see who will officially be <b>FastJet</b>’s partner will be for their renewed push to enter the Kenyan aviation market.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Hong Kong listed Frontier Services Group completed acquisition of 49%<b> </b>of<b> Phoenix Aviation </b>for $14 million (Kshs.1.2 billion).</span></li>
</ul>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b><u>Autos</u></b></span></div>
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<li><span style="font-family: Arial, Helvetica, sans-serif;">Al Futtaim Auto to compulsorily acquire the remaining 8.4% of </span><b style="font-family: Arial, Helvetica, sans-serif;">CMC </b><span style="font-family: Arial, Helvetica, sans-serif;">shares from minority shareholders</span></li>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b><u>Banking & Finance</u></b></span></div>
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<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"><b>Actis </b>to acquire Compuscan, the largest independent credit bureau in Africa & run it as Credit Service Holdings with Michael Jordaan as chair.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"><b>Diamond Trust </b>has an ongoing rights issue to raise Kshs 3.2B ($42 million) from shareholders at Kshs 165 per share.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"><b>Ecobank </b>got investment bank approval in Kenya following their buyout of Iroko buyout and will target oil & gas, infrastructure & commodity deals. </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"><b>KCB </b>is now holding company, and is said to be interested in buying an insurance entity</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"></span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"><b><i>(edit) </i></b>Kenyan Women Holdings will sell 25% of the shareholding of <b>Kenya Women's Finance Trust </b>to their 600,000 members between September and October 2014. </span></li>
<li style="text-align: justify;"><span style="text-align: left;"><span style="font-family: Arial, Helvetica, sans-serif;"><b>NIC Bank</b> to have a corporate bond and rights issue during 2014</span></span></li>
<li style="text-align: justify;"><span style="text-align: left;"><span style="font-family: Arial, Helvetica, sans-serif;">Atlas Mara to buy 77% of Development Bank of Rwanda </span></span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"><b style="text-align: left;">National Bank </b><span style="text-align: left;">shareholders to vote on if money from their upcoming rights issue can go to pay off preference shareholders</span></span></li>
<li style="text-align: justify;"><span style="text-align: left;"><span style="font-family: Arial, Helvetica, sans-serif;">Western Kenya politicians have support the creation of a new <b>Mulembe Investment MFI </b>bank, that will be part-funded by counties to serve 5 million people. </span></span></li>
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<span style="font-family: Arial, Helvetica, sans-serif;"><u><b>Building & Cement</b></u></span></div>
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<li><span style="font-family: Arial, Helvetica, sans-serif;">Holcim is set to acquire effective control of Kenya's <b>Bamburi Cement</b> as part of the planned merger between Holcim and Lafarge. </span><span style="font-family: Arial, Helvetica, sans-serif;"><i>"The parties do not wish to see any change to the status of Bamburi as one of Kenya's leading industrial companies listed on the NSE."</i></span></li>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b><u>Food & Beverage</u></b> </span></div>
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<li><a href="http://danone.com/">Danone</a> bought 40%of Kenya’s dairy processing company <b>Brookside</b> which had revenue of Kshs15.4 billion (€130 million) i in 2013. It was previously 90% owned by the Kenyatta family with Abraaj owning 10%. Brookside collects milk from 140,000 farmers and has 3,000 employees.</li>
<li>Distell of Stellenbosch South Africa got privatization approval from the Kenya government to acquire of 26% of KWA Holdings E.A. that was previously owned by ICDC for Kshs 860 million (about $10 million)</li>
<li><span style="font-family: Arial, Helvetica, sans-serif; text-align: left;"><div style="text-align: justify;">
<b>Kenya Wines </b>will also their Kshs126 millionUchumi Supermarket stake.</div>
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<li><i>See Centum (above)</i></li>
<li>South African food company, <b>Tiger Brands</b> has dropped plans to acquire Kenya firms Rafiki Millers for $25m.</li>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b><u>Health & Beauty</u></b></span></div>
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<li>Procter & Gamble merged India, the Middle East and Africa into one IMEA region to improve execution </li>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b><u>Hotels & Tourism</u></b></span></div>
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<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The Kenya Competition Authority approved the acquisition of 100% of <b>Fairview Hotel </b>by City Lodge Hotels.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Kempinski Hotels, Europe's oldest luxury hotel group has officially taken over <b>Hôtel Des Milles Collines</b> in Rwanda.</span></li>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhX-rienHXuL5tvUFVkVXoZfae8SIIMs5GTVMFMb5x0XSAnJv9y0KfxSuVsXF6cCcSh17irB7903AIdZvkPm8iXA2xDhMMceBuoZH3IN_spiRIaJU8ovBimcBIhpqjquRJ44FY6Tw/s1600/Insure.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em; text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhX-rienHXuL5tvUFVkVXoZfae8SIIMs5GTVMFMb5x0XSAnJv9y0KfxSuVsXF6cCcSh17irB7903AIdZvkPm8iXA2xDhMMceBuoZH3IN_spiRIaJU8ovBimcBIhpqjquRJ44FY6Tw/s1600/Insure.jpg" height="240" width="320" /></span></a><br />
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<b><u><span style="font-family: Arial, Helvetica, sans-serif;">Insurance </span></u></b></div>
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<li><i><span style="font-family: Arial, Helvetica, sans-serif;">See Britam above</span></i></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><b>CIC </b>had dropped plans for a rights issue in favour of a corporate bond</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><b>Liberty Kenya </b>proposed to pay a Kshs 1/= scrip dividend, but shareholders can opt for cash. </span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><b>UAP </b>had an oversubscribed bond that raised Kshs 3.1 billion against a target of 2B. </span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">Africa Report magazine listed insurance companies as the top performers at the NSE in 2014 <i>(see table)</i>.</span></li>
</ul>
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<b><u><span style="font-family: Arial, Helvetica, sans-serif;">Legal</span></u></b></div>
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<li><span style="font-family: Arial, Helvetica, sans-serif;">Kenyan firms <b>Hamilton Harrison & Matthews </b>(HHM) and <b>Oraro & Company</b> have announced they are </span><a href="http://www.thelawyer.com/news/regions/africa-news/kenyas-hamilton-harrison-and-oraro-and-co-to-merge/3022284.article" style="font-family: Arial, Helvetica, sans-serif;">to merge</a><span style="font-family: Arial, Helvetica, sans-serif;"> pending regulatory approvals.</span></li>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b><u>Media & Communications</u></b></span></div>
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="float: right; margin-left: 1em; text-align: center;"><tbody>
<tr><td style="text-align: center;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTrZFVjNTgymP0iPDGzxC0LuWx4J0cxiX05pecnJZeboQnz2RXEU9g3od_hc1AT_TGkYKRn_dqmX3ULjtsVCYJSOTG09BLfuf8MWqu-xlxyoXIXXMIZ_otRff2H6_2SgrmdGAtKw/s1600/Carey.tiff" height="249" style="margin-left: auto; margin-right: auto;" width="320" /></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><i>#RIPCareyEaton</i></td></tr>
</tbody></table>
<ul><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTrZFVjNTgymP0iPDGzxC0LuWx4J0cxiX05pecnJZeboQnz2RXEU9g3od_hc1AT_TGkYKRn_dqmX3ULjtsVCYJSOTG09BLfuf8MWqu-xlxyoXIXXMIZ_otRff2H6_2SgrmdGAtKw/s1600/Carey.tiff" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><span style="font-family: Arial, Helvetica, sans-serif;"></span></a>
<li><span style="font-family: Arial, Helvetica, sans-serif;">The $35 billion Publicis-Omnicom merger fell apart. The deal to combine the world’s largest advertising company was foiled by myriad difficulties, including who would run the new firm. The collapse of the deal is a win for WPP CEO Martin Sorrell, who campaigned aggressively against the merger of two of his biggest rivals.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">A few months after his big deal with One Africa Media consolidating operations in Kenya, Uganda and South Africa, co-founder, Carey Eaton, was killed in Nairobi. See some <a href="http://whiteafrican.com/2014/06/06/remembering-the-genius-and-grace-of-carey-eaton/">tributes to Carey Eaton</a>. The Economist also ranked the <a href="http://www.economist.com/blogs/graphicdetail/2014/07/daily-chart-6">largest internet companies in Africa</a> and One Africa Media topped this at $80 million, followed by Mobile Planet ($15 million) and Kopo Kopo ($10 million) </span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">passed away - some tributes </span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;"><b>Scangroup </b>agreed to acquire a majority stake in a pan-African firm - the Experiential Marketing Group (EXP) </span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">The Safaricom and Airtel buy out of (and split of)<b> Yu</b> appears to have stalled. </span></li>
</ul>
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<b><u><span style="font-family: Arial, Helvetica, sans-serif;">Oil & Mining</span></u></b></div>
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<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">In the last year, Tullow Oil and Base Resources have paid the Kenya government $22 million and $16 million respectively . </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"><b>Tullow</b> received a judgment in its favour over capital gains tax payments that Tullow had made onHeritage’s behalf to the Uganda Revenue Authority. In August 2013, Tullow received $345.8 million from Heritage in satisfaction of this High Court judgment.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"><b>Swala </b>Oil & Gas completed their Tanzania IPO which was oversubscribed and will now proceed to list on the Dar es Salaam Stock Exchange (“DSE”). The placement of 13.3 million shares with 1,869 new and existing shareholders also allowed Swala to keep excess funds from Dar IPO.</span></li>
</ul>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b><u>Transportation & Utilities</u></b></span></div>
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<ul>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Transcentury sold their 34% in <b>Rift Valley Railways</b> to Citadel Capital for $43.7M recovering their cash, but below fair value..they cited the </span><span style="font-family: Arial, Helvetica, sans-serif;">delayed turnaround of the railway consortium as reason for the sale</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Actis confirmed sale of its stake in <b>Umeme</b> for $85.5 million to 20 institutional investors including Investec and Uganda’s NSSF</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Kone Kenya acquired the business of Marryat & Scott, an elevator installation company.</span></li>
</ul>
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<b><u><span style="font-family: Arial, Helvetica, sans-serif;">Other Peoples Money</span></u></b></div>
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<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The Australian Navy seized heroin worth $296 million from a wooden boat off the Kenyan coast.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The <b>Karen Blixen</b> house was put up for sale for $9.5 million </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Kenya's <b>NSSF</b> had $600 million (Kshs 51 billion) in quoted securities as at June 2013 topped by Bamburi EABL and KCB.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The Competition Authority fined <b>Tusker Mattresses</b> (Tuskys) and Ukwala supermarkets Kshs 5.3 million while allowing them to continue pursuing a supermarket consolidation deal.</span></li>
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<span style="font-family: Arial, Helvetica, sans-serif;">The Nairobi Securities Exchange (NSE) launched its IPO on July 23. It runs up to August 12, 2014 and they are selling 66 million shares at Kshs 9.50 per share (with a minimum investment of 500 shares costing Kshs 4,750) and the NSE plans to raise Kshs. 627 million (~$7.3 million).</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Excerpts from the prospectus and other sources. </span></div>
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<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The NSE borrowed Kshs 300 million from Kenya Commercial Bank to part finance the purchase of the Westlands building that now houses the exchange. (The interest rate is minus 2 the bank’s base rate). Part of the funds raised from the IPO will be used to repay the Exchange's mortgage debt.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The Dar es Salaam Securities Exchange has completely divested from the NSE and CDSC.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The NSE has about Kshs 1 billion assets and an EPS of 10.70. They had earnings of 622 million and a profit of Kshs 262 million in 2013. The NSE owns Kshs 20 million worth of Safaricom bonds and Kshs 15 million of Housing Finance ones</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The IPO is budgeted to cost Kshs 40.8M</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Ahead of the IPO in which 194 million (M) shares are being listed, the Kenya Government and the Investor Compensation Fund each own 6.56 million shares and 22 stockbrokers each own 4.08M shares - for a total of 128.6M shares. 2.5 million shares are reserved for employees of the exchange (The NSE has 38 employees and 5 senior managers). </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">KRA assessed and charged them Kshs 19m for 4 years of back taxes, of which Kshs 15m has been paid</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">One of the options the Exchange is contemplating is to establish regional exchanges in Somalia, the Democratic Republic of Congo (DRC), South Sudan and Burundi </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The NSE expects to introduce the REITs and ETFs, and there are also plans to introduce the a Derivatives Market this year. The NSE also plans to upgrade of the Automated Trading System (ATS) and the Bonds Trade Reporting System with some of the proceeds from the IPO.</span></li>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0tag:blogger.com,1999:blog-9317825.post-33216354799219837472014-07-29T20:56:00.001+03:002014-08-05T15:22:42.613+03:00YALI 2014<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;">The Young African Leaders Initiative 2014 - </span><span style="font-family: Arial, Helvetica, sans-serif;">#YALI2014 </span><span style="font-family: Arial, Helvetica, sans-serif;">kicked off this week in Washington DC. </span><span style="font-family: Arial, Helvetica, sans-serif;">Speaking at a meeting with 500 of the </span><span style="font-family: Arial, Helvetica, sans-serif;">first class of YALI fellows, </span><span style="font-family: Arial, Helvetica, sans-serif;">President Obama said that </span><span style="font-family: Arial, Helvetica, sans-serif;">it will be renamed the Mandela Washington Fellowship (& doubled to have 1,000 fellows by 2016) and that four </span><span style="font-family: Arial, Helvetica, sans-serif;">regional leadership centers would set up in Africa.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The regional leadership centers will be established in </span><span style="font-family: Arial, Helvetica, sans-serif;">Senegal, Ghana, South Africa and K</span><span style="font-family: Arial, Helvetica, sans-serif;">enya and </span><span style="font-family: Arial, Helvetica, sans-serif;">will offer </span><span style="font-family: Arial, Helvetica, sans-serif;">courses on leadership, support for entrepreneurs through mentoring and access to capital and a networking forum. </span></div>
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<i style="font-family: Arial, Helvetica, sans-serif;">The Center in Kenya will have a robust training curriculum with direction from a partnership that brings together Deloitte’s global management and strategy skills, the established curriculum and capacity of Kenyatta University, the public administration training of the Kenya School of Government, and Africa Nazarene University’s youth engagement and outreach.</i></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">USAID is investing $38 million in the new YALI centers with support from t</span><span style="font-family: Arial, Helvetica, sans-serif;">he MasterCard Foundation ($10 million), Microsoft ($12.5 million), Intel ($5million) and </span><span style="font-family: Arial, Helvetica, sans-serif;">Dow Chemical ($4 million). Others are </span><span style="font-family: Arial, Helvetica, sans-serif;">McKinsey, </span><span style="font-family: Arial, Helvetica, sans-serif;">IBM, </span><span style="font-family: Arial, Helvetica, sans-serif;">General Electric, </span><span style="font-family: Arial, Helvetica, sans-serif;">Procter&Gamble and the </span><span style="font-family: Arial, Helvetica, sans-serif;">Mara Foundation. (</span><i><span style="font-family: Arial, Helvetica, sans-serif;">More at the </span><a href="https://youngafricanleaders.state.gov/" style="font-family: Arial, Helvetica, sans-serif;">YALI</a><span style="font-family: Arial, Helvetica, sans-serif;"> site). </span></i></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">In a Q&A session, Obama also spoke about AGOA and the </span><span style="font-family: Arial, Helvetica, sans-serif;">on-going for renewal of the the trade partnership between the US & Africa; He said, they have learnt lessons from the previous phase of the partnership and will work to lower other export barriers (such as transport & trade finance), and, </span><span style="font-family: Arial, Helvetica, sans-serif;">starting with Uganda, Kenya and Tanzania, take steps to see how AGOA can work with effective trading bloc for intra-Africa trade.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The </span><span style="font-family: Arial, Helvetica, sans-serif;">YALI Summit events will lead up to the the first US-Africa Leaders Summit, which, with over 50 </span><span style="font-family: Arial, Helvetica, sans-serif;">presidents & prime ministers expected, is the largest gathering of African Leaders ever hosted by a US president.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Kenya's President Kenyatta is to participate in two events next week - a d</span><span style="font-family: Arial, Helvetica, sans-serif;">oing business in East Africa session </span><span style="font-family: Arial, Helvetica, sans-serif;">and a presidential dinner, both organized by the </span><span style="font-family: Arial, Helvetica, sans-serif;">Corporate Council on Africa (CCA) who have <a href="http://www.cvent.com/events/-leading-the-way-in-u-s-africa-investment-/event-summary-9e8ab78a68784e61afb759155c47c102.aspx">events</a> for several other African leaders and nations like E</span><span style="font-family: Arial, Helvetica, sans-serif;">thiopia</span><span style="font-family: Arial, Helvetica, sans-serif;">, South Africa, G</span><span style="font-family: Arial, Helvetica, sans-serif;">hana Liberia Congo </span><span style="font-family: Arial, Helvetica, sans-serif;">Mozambique and Tanzania among others.</span></div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Washington, DC, USA38.9071923 -77.03687070000000938.7094553 -77.3595942 39.104929299999995 -76.714147200000014tag:blogger.com,1999:blog-9317825.post-62148748130875414922014-07-24T17:00:00.002+03:002014-07-31T17:01:04.230+03:00New Credit Cards from NIC and Equity banks <div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;">This week, </span><span style="font-family: Arial, Helvetica, sans-serif;">NIC Bank </span><span style="font-family: Arial, Helvetica, sans-serif;">launched a platinum credit card and </span><span style="font-family: Arial, Helvetica, sans-serif;">Equity Bank</span><span style="font-family: Arial, Helvetica, sans-serif;"> formally announced their expanded their impressive card portfolio that now </span><a href="http://about.americanexpress.com/news/pr/2013/amex-equity-bank-partnership.aspx" style="font-family: Arial, Helvetica, sans-serif;">includes American Express</a><span style="font-family: Arial, Helvetica, sans-serif;">. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-family: Arial, Helvetica, sans-serif;">The <b>NIC Bank</b> <a href="http://www.visacemea.com/wv/platinum/main.jsp?ep=v_sym_visaplatinum">Visa Platinum</a> credit will be offered to a select few clients like professionals, </span>senior government employees, business leaders, and entrepreneurs. The card <span style="font-family: Arial, Helvetica, sans-serif;">comes with a variety of privileges in terms of shopping discounts, priority pass access to 600 VIP airport lounges in 100 countries (with complimentary snacks, free internet at many, and card holders can bring in companions), a portfolio relationship manager, and purchase protection for 90 days. </span></span></div>
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For frequent travelers around the world, it also provides useful facilitation in emergencies like <i>payment</i> of hospital deposits of up to $2500, and<i> arranges</i> for emergency evacuation, legal advice, transport of companions or children. </div>
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The annual fee is Kshs 6,000 (~$70) and there is no joining fee. NIC will also have a rights issue and a bond issue that shareholders will kick-off next week at an EGM.</div>
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<b style="font-family: Arial, Helvetica, sans-serif;">Equity Bank</b><span style="font-family: Arial, Helvetica, sans-serif;"> is signing up merchants to accept American Express cards - for which they are the exclusive card issuer in Kenya. They have already signed on Nakumatt, ArtCaffé, Heritage Hotels, Best Westernm Laico Regency, Leopard Beach, Boma and some other hotels.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><i>Speaking when he confirmed the development, Equity Bank Managing Director, James Mwangi, said the bank is now a partner for American Express, Visa, MasterCard, PayPal, Google, China Union Pay, SWIFT, JCB, VFX (Equity Direct) and Diners Club.</i></span></div>
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As per Central Bank stats, Kenya had about 162,000 locally issued credit cards as at February 2014, compared to 114,000, three years ago.</div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0NIC House, Nairobi, Kenya-1.3006313 36.822503999999981-1.3016233000000001 36.82124349999998 -1.2996393 36.823764499999982tag:blogger.com,1999:blog-9317825.post-35867001869088730602014-07-16T09:20:00.001+03:002014-07-16T09:20:23.602+03:00Lady Lori & FastJet? <div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;">The latest round of airline license applications has a curious addition with <a href="http://www.flyladylori.com/">Lady Lori</a> previously known as a successful helicopter charter company applying for a variation of their current license.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Lady Lori are seeking to introduce domestic flights between Nairobi and Mombasa as well as to obtain rights for international routes from Nairobi to Dar es Salaam, Juba, Kigali, Entebbe, Maputo and Lusaka.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Across the border is successful <a href="https://www.fastjet.com/">FastJet </a>who have not been shy about their ambitions for Kenya. But their license to operate which they intended to obtain via an investment in Kenya's Fly540 airline has been stuck somewhere in the government red tape while their Tanzania business has thrived and they are now the leading airline there. Recently, FastJet came to a <a href="http://wolfganghthome.wordpress.com/2014/06/25/fastjet-and-fly540-kenya-part-company-2/">settlement with Fly540</a> ending their acrimonious relationship. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Could Fastjet now be starting afresh with an established and licensed operator? Lady Lori is applying for the above routes with the intention to fly Airbus A320 aircraft - which happen to be the only aircraft flown by FastJet.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">FastJet, as a low cost operator has made the A320 the only airline in it's fleet and <span style="background-color: yellow;">one</span> that made a few people wondered how Fly540 with a mix of ATRs and Bombardiers would integrate. Lady Lori offers a fresh start in this regard.</span></div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Jomo Kenyatta International Airport (NBO), Nairobi, Kenya-1.3227102 36.926069299999995-1.3544592 36.885728799999995 -1.2909612 36.966409799999994tag:blogger.com,1999:blog-9317825.post-49160922048282177322014-07-15T08:48:00.003+03:002014-07-16T09:24:19.684+03:00Fin4Ag14<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;">All this week, Nairobi plays host to a conference called <span style="color: #042eee;"><u><a href="http://www.fin4ag.org/en/">Fin4Aag14</a></u></span> which has the theme of <i>Revolutionising Finance for Agri-Value Chains.</i></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">It started with </span><a href="http://www.fin4ag.org/en/agenda/plug-and-play-day.html" style="font-family: Arial, Helvetica, sans-serif;">plug & play</a><span style="font-family: Arial, Helvetica, sans-serif;"> session in which 18 companies got to introduce their platforms linking agriculture to finance across Africa. This is the second edition of the session that was introduced at the conference in Kigali last year and proved to be quite popular.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The 18 companies were: </span></div>
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<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Tangaza Pesa: automates the value chain by doing KYC on farmers with bio data, crops produced, and GPS to build credit records</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Ensibuuko (Uganda) helps (via web & mobile) to manage rural SACCO’s that can reach many of the rural unbanked farmers </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">FarmDrive (University of Nairobi) enables small farmers to keep basic record by mobile phone and build a credit score </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Farmers Record Management System (FARMIS) aggregates farmers with financial institutions to access finance and ensure loans are properly utilized </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Zoona's eVoucher platform: enables agri-business supply chain payments and insurance </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Credit Information Sharing: enables information sharing by credit bureaus for lenders to make decisions</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Umati Capital: paperless solution that aims to shorten dairy farmer payment periods from 6 weeks to 24 hours</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Agrilife - enables farmers to access markets inputs, savings, and asset finance </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Musoni System: a core banking for SACCO’s and micro-banks, loans, and savings that can also integrate with m-pesa and tablet apps </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Farmforce (Sygenta) enables traceability of farm produce for quality and for farmers to access small loans </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">e-Krishok: Online & mobile infer for Bangladesh farmers to access information, traders and finance </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Creditinfo’s Credit Bureau Solution - enables credit bureaus can collect info on farmers so they can access loans without need for collateral </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Craft Silicon have a platform can link to MFI’s, bank, SACCO’s (Elma?)</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">aWhere Platform: with over 1 billion data points collected, enable farmers to be aware of field risks to make smarter decisions. this includes weather data for all of Africa since 1999 and others they pull from mobile services</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">AgroCentral - uses ICT to buy produce from farmers</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">RiMFin (Ghana): enables rural famers to receive mobile payments and save them in their phones </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">finFinancials (<span style="background-color: yellow;">Fintech) </span>core banking <span style="background-color: yellow;">platform</span> that can integrate with others for digital or mobile payments</span></li>
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<span style="font-family: Arial, Helvetica, sans-serif;">They will be there all week presenting their platforms and engaging the attendees who are from across Africa, Caribbean and Asia and who include development specialists, financiers, policy makers and top bankers who hope </span><span style="font-family: Arial, Helvetica, sans-serif;">to get youth interested in agriculture.</span><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">There was a brief session on warehousing that detailed both the challenges and the opportunities for warehousing. Commodity warehousing types include private, public and community. Examples were cited from Tanzania (community food stored in individual houses but linked to MFI’s ), Ivory Coast (large presence in Cocoa Rubber Cashew sectors), Madagascar (communities totaling 80,000 rice farmers in villages part guaranteed by DFI’s cover 2% of the national production but provide price stability), and Nigeria (massive 1.3 million ton silo capacity against large formal sector demand of 1.9M tons), Burkina Faso and Uganda (2 successful warehouse companies). </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif; text-align: justify;">Challenges facing warehousing include high costs (leaving some empty of commodities) fraud, long value chains, and </span><span style="font-family: Arial, Helvetica, sans-serif; text-align: justify;">contract defaults (by both small farmers and larger organizations like WFP).</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">Fin4Ag14 is organized by the Technical Center for Agricultural and Rural Cooperation (CTA), Central Bank of Kenya and African Rural and the Agricultural Credit Association (AFRACA), and </span><span style="font-family: Arial, Helvetica, sans-serif;">is supported by the FAO, the Rockefeller Foundation and Afreximbank. </span></div>
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<!-- Blogger automated replacement: "https://images-blogger-opensocial.googleusercontent.com/gadgets/proxy?url=http%3A%2F%2F2.bp.blogspot.com%2F-CkRWTyNqO0o%2FU8S4V0XragI%2FAAAAAAAACkU%2F8hPJJ-kbJPA%2Fs1600%2FFin4Ag.jpg&container=blogger&gadget=a&rewriteMime=image%2F*" with "https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgLOni7kJCSiwNzIrG4bKnXxWaSLf68bNo5qsOn5qHw7-0Ak8H1cRvJ_R2RGL62mzcla8DtGxxbAqt4isXP9u5x5ru41VfjT5W-oc-6XEmtQLjZyqeZyZVYuwr6nJ1kf1qS5tWwtg/s1600/Fin4Ag.jpg" -->bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Kenya School of Monetary Studies, Off Thika Road, Next To De La Rue Ltd Mathare North Road, Nairobi, Kenya-1.2503896 36.8666733-1.2513816000000002 36.8654128 -1.2493976 36.8679338tag:blogger.com,1999:blog-9317825.post-85766974910404244292014-07-12T00:22:00.004+03:002014-07-16T09:24:39.893+03:00Countdown to REIT’s in Kenya<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;">This week CFCLIfe and Stanlib managers held a media briefing on Real Estate Investment Trusts (REIT's) in Kenya and their possible impact on the local property scene. </span><span style="font-family: Arial, Helvetica, sans-serif;">REIT’s are common around the world, South Africa, Ghana, Nigeria have had legislation for them, and finally, </span><span style="font-family: Arial, Helvetica, sans-serif;">there's a </span><a href="http://cma.or.ke/index.php?option=com_docman&task=doc_download&gid=239&Itemid=102" style="font-family: Arial, Helvetica, sans-serif;">Kenya law on REIT's</a><span style="font-family: Arial, Helvetica, sans-serif;"> in place (July 2013) after many years of formulation and review.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Stanlib Kenya plan to launch REIT's in Kenya in September 2014 - and the law allows for two kinds - </span><span style="font-family: Arial, Helvetica, sans-serif;">Income REIT’s and Develoment REIT’s. </span><span style="font-family: Arial, Helvetica, sans-serif;">Some unique features about REIT's (which will cost between Kshs 100 - 300 million to set up with a minimum of 7 promoters) include t</span><span style="font-family: Arial, Helvetica, sans-serif;">hey must distribute about 80% of profits to investors, and i</span><span style="font-family: Arial, Helvetica, sans-serif;">nvestors can sign on to I-REIT's for as low as Kshs 5,000.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The speakers noted that many large landlords in Kenya are quite comfortable earning incomes of less than 5% on their assets, when they could be earning quite a bit more (</span><span style="font-family: Arial, Helvetica, sans-serif;">10% - 20%</span><span style="font-family: Arial, Helvetica, sans-serif;">) by signing up with REIT’s - which are tax exempt and offer diversification (can invest in strong properties prisons, hospitals, malls) with more liquidity for all investors who participate in the REIT. W</span><span style="font-family: Arial, Helvetica, sans-serif;">hile there's saturation as the high end of the property market, and expensive land prices are still climbing, there are still great opportunities at the mid- and lower- residential and commercial income segments. Also the K</span><span style="font-family: Arial, Helvetica, sans-serif;">enya UN classification was upgraded which means that from a previous 45, over 180 countries will now have officials accredited to the UN living in Nairobi. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Also licensed as REIT managers alongside Stanlib in April, were CIC Assets and Fusion Investments.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;"><i>Answers to @ColdTusker's questions:</i></span><br />
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<li style="text-align: justify;"><i><span style="font-family: Arial, Helvetica, sans-serif;">The minimum amount of initial assets for an D-Reit is 100M and for a D-Reit is Kshs 300M</span></i></li>
<li style="text-align: justify;"><i><span style="font-family: Arial, Helvetica, sans-serif;">D-REIT in the act is defined as "a development and construction real estate investment trust" is for sophisticated investors e.g for property developers to put up properties. They have shorter lifespans - and YES they can convert to I-Reit's which are for income from <span style="box-sizing: border-box; line-height: 1.4;">established properties. D-Reit’s can borrow up to 50% of assets, and i-Reit’s only 35%, also i-Reit’s must have 75% of portfolio in properties, and D-Reits have to have sunk 30% of their funds into property within year 1 </span></span></i></li>
<li style="text-align: justify;"><i><span style="font-family: Arial, Helvetica, sans-serif;">Centum 2 Rivers was mentioned as the planned largest mall in Eastern Africa - with Carrefour as an anchor along with other foreign shops as main tenants (not the usual local supermarket and shops in the stores)..interesting as Carrefour seems to be withdrawing from emerging markets - http://qz.com/231405/carrefours-india-exit-has-little-to-do-with-the-governments-reservations-on-retail/</span></i></li>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0tag:blogger.com,1999:blog-9317825.post-90831954149083045592014-07-11T23:16:00.003+03:002014-07-12T21:34:46.376+03:00BRCK Launches in Nairobi<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHfdpKuupKo58DPGYIBku2QVUNQK7STVWlt_nNUlpP7vc9lxQD3j3aZFa-PUasfsO-28qxpJvGR6uEvUAM50TcGrb7ecIGKT7FaVjVi14Q4e175LB9U1XYVOGsrUZRpUR8zLWjtQ/s1600/BRCK.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em; text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHfdpKuupKo58DPGYIBku2QVUNQK7STVWlt_nNUlpP7vc9lxQD3j3aZFa-PUasfsO-28qxpJvGR6uEvUAM50TcGrb7ecIGKT7FaVjVi14Q4e175LB9U1XYVOGsrUZRpUR8zLWjtQ/s1600/BRCK.jpg" height="240" width="320" /></span></a><span style="font-family: Arial, Helvetica, sans-serif;"></span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">This week saw the formal launch of the <a href="http://www.brck.com/">BRCK</a> with a first batch of 800 devices to be shipped to buyers in 45 countries from July 17. It also saw a <a href="http://investeddevelopment.com/blog/2014/07/kenyas-brck-raises-1-2m-to-connect-the-last-mile-to-the-internet/#sthash.rjQU5fuz.u5dFivd7.dpuf">funding announcement</a> of $1.2 million by Invested Development toward production of the BRCK.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">The BRCK is now able to provide affordable, reliable, and seamless internet and power in different, changing, or challenging working conditions such as <a href="http://www.brck.com/2014/06/internet-at-the-rhino-charge-with-brck/#.U8AwjY2Sx38">connectivity at </a> the 2014 Rhino Charge with the ability to provide stable internet and charge other devices and share internet with them for up to 8 hours. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">@whiteafrican traced the two year journey of the BRCK in this <a href="http://whiteafrican.com/2014/07/08/a-brck-journey/">blog post</a> as a solution that addresses many challenges of internet and electrical power around thw world - through a putting together a team supported by Ushahidi, gauging the interest via a Kickstarter initiative that raised $175,000 and fine tuning the design and field testing the BRCK in conditions such as on a very tough journey chasing the <a href="https://crowdmap.com/map/turkanaeclipse">Turkana Eclipse</a> in November 2013.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">BRCK devices can be ordered <a href="http://www.brck.com/shop/">online</a> at a cost $199, but the final price will depend on the global delivery method chosen.From the site, one can also manage their BRCK and do tasks like top up credit, change Wi-Fi settings, and enter country APN's (if they don't pull automatically).</span></div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Sarit Center Roundabout, Nairobi, Kenya-1.2618084 36.803455999999983-1.2628004000000002 36.802195499999982 -1.2608164 36.804716499999984tag:blogger.com,1999:blog-9317825.post-2574679548035853262014-07-09T14:34:00.000+03:002014-07-09T14:34:37.189+03:001% Equals 20% and Other Bank Tales<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Arial, Helvetica, sans-serif;">The Central Bank of Kenya's Monetary Policy Committee has </span><a href="https://www.centralbank.go.ke/images/docs/Press_Release-July_2014-_edited.pdf" style="font-family: Arial, Helvetica, sans-serif;">launched a KBRR</a><span style="font-family: Arial, Helvetica, sans-serif;"> a.k.a. the Kenya Bank Reference Rate and set it at 9.13%. All commercial banks and mortgage institutions are expected to price all their loan products around this. e.g Lend finance to customers at a rate of KBRR (+) or (-) "X" e.g. a loan rate of 15% will be known as KBRR +5.87%. This first rate of the KBRR set at 9.13%, will run from July 2014 to January 2015. </span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">The KBRR will help end the confusion that customers face with all manner of loans and rates at myriad banks. Different loans are pegged on interest rates that may be flat, fixed, variable, reducing balance etc and are marketed as the same without customers knowing what these measures mean. Yet a fixed loan rate of 1% per month (which some asset finance loans are marketed as) can be equivalent to a loan of 20% that is calculated using the reducing balance method.</span><br />
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<span style="font-family: Arial, Helvetica, sans-serif;">The next step on the cards will be for Kenyan banks to <a href="http://www.kba.co.ke/research-center/research-note/285-banks-adopt-annual-percentage-rate-calculation-method-for-consumer-loans">adopt an APR</a> (an annual percentage rate calculation) that not only includes the lending rate, but also factors in bank charges like commitment fees, facility fees, and third-party costs like legal charges, mortgage insurance, as well as a standard loan repayment schedule format for all loans.</span><br />
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Central Bank of Kenya, Haile Selassie Avenue, Nairobi City, Kenya-1.2899659 36.824943299999973-1.2909579000000002 36.823682799999972 -1.2889739 36.826203799999973tag:blogger.com,1999:blog-9317825.post-38980202090093864392014-07-07T22:25:00.002+03:002014-07-08T16:08:38.565+03:00Diamond Trust: Fourth Rights<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;">Diamond Trust Bank is back for a fourth rights issues in
recent years from its 11,136 shareholders at a rate of (Kshs 165) $1.95 per share, with each of shareholder entitled to buy 1 share for every 10 held. This follows others done in </span><span style="font-family: Arial, Helvetica, sans-serif;">2006, </span><a href="http://www.bankelele.co.ke/2007/11/diamond-trust-rights-reloaded.html" style="font-family: Arial, Helvetica, sans-serif;">2007</a>, <span style="font-family: Arial, Helvetica, sans-serif;"> </span><a href="http://www.bankelele.co.ke/2012/08/diamond-trust-third-rights.html" style="font-family: Arial, Helvetica, sans-serif;">2012</a><span style="font-family: Arial, Helvetica, sans-serif;"> </span><span style="font-family: Arial, Helvetica, sans-serif;"> and now this one.</span></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPCIdpACP1dyScPBrI4JDoBXW71dG5rcefDanwEi62CYGw5wvCGegz0uvS-KWlBaAwA7QwHeDV1poMNc0QNwBKQLfWgfQ5Oy-I5zjZF1ojtkDhzKuWn1vOUTJFT_gd0160lbq0Aw/s1600/DTBIM.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPCIdpACP1dyScPBrI4JDoBXW71dG5rcefDanwEi62CYGw5wvCGegz0uvS-KWlBaAwA7QwHeDV1poMNc0QNwBKQLfWgfQ5Oy-I5zjZF1ojtkDhzKuWn1vOUTJFT_gd0160lbq0Aw/s1600/DTBIM.jpg" height="320" width="320" /></a><span style="font-family: Arial, Helvetica, sans-serif;">Contrasting the four issues <o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Year - Nov-06 ; Nov-07 ;<span style="mso-spacerun: yes;">
</span>Jul-12 : Jul-14<o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Target (Kshs M) – 735 ; 1,600 ; 1,809 : 3,631 <o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">New shares (M) - 15.5 ; 23.3 ; 24.4 : 22.0<o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Price (Kshs)<span style="mso-spacerun: yes;"> </span>- 50 ;
70 ; 74 ; 165 <o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Ratio<span style="mso-spacerun: yes;"> </span>-<span style="mso-spacerun: yes;"> </span>1:8 ; 1;6 ; 1;8 : 1:10<o:p></o:p></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Budget (Kshs M) 41.6 ;<span style="mso-spacerun: yes;">
</span>54.7 ; 57.6: 100.1</span></div>
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<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif; text-indent: -0.25in;">The IFC remains as a principal funder and
shareholder for the bank.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Diversification has paid off with the bank having 30% of assets and 19% of profits from outside Kenya. While 77% of Diamond Trust's $61
million after-tax profit is from Kenya, the Tanzania and Uganda operations contributed about $7 million each of profit with Burundi trailing at ~$150,000 </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">They have extended traditional banking services in the mobile and card age by having M-Pesa at all their ATM machines. They also issues prepaid cards for NationHela, NakumattGlobal and MiCard and handle remittances/money transfer for WesternUnion, MoneyGram and XpressMoney</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Others institutions that may need to have rights issues or raise capital this year include </span><span style="font-family: Arial, Helvetica, sans-serif;">ABC, Commercial Bank of Africa, Consolidated
and Equatorial banks. </span></li>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0tag:blogger.com,1999:blog-9317825.post-71481897157591241342014-06-30T21:26:00.000+03:002014-07-02T09:11:31.724+03:00E-Government Moment: Part II<div dir="ltr" style="text-align: left;" trbidi="on">
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<i><span style="font-family: Arial, Helvetica, sans-serif;">Stuff happening on the e-government sidelines</span></i></div>
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<li><span style="font-family: Arial, Helvetica, sans-serif;">July 1 is the deadline for Matatu's and other Public Service Vehicles (PSV's) to switch to <b>cashless payments</b> of accepting fares, in lieu of hard currency. PSV's are meant to have signed on to services like Google & Equity's - </span><a href="http://www.bankelele.co.ke/2013/05/cashless-bus-payments-from-google.html" style="font-family: Arial, Helvetica, sans-serif;">BebaPay</a><span style="font-family: Arial, Helvetica, sans-serif;"> or be in breach of the law. It's not expected to be smooth sailing considering the slow uptake of cashless systems among smaller matatus within Nairobi, and it's possible that after taxes, the minimum fare will be more than Kshs 30.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">June 30, (today) is also the deadline for Kenyans to <b>file their tax </b>returns. This had been a largely academic exercise of submitting paper forms that the revenue authority (KRA) was unlikely to ever go through, and had even been discarded. But in rejecting a bill, parliament </span><a href="http://www.the-star.co.ke/news/article-102905/kra-reintroduces-filing-annual-tax-returns" style="font-family: Arial, Helvetica, sans-serif;">re-opened</a><span style="font-family: Arial, Helvetica, sans-serif;"> this tiresome exercise. </span><span style="font-family: Arial, Helvetica, sans-serif;">This year, KRA has advertised its website, as the only way for Kenyans to </span><a href="https://mapato1.kra.go.ke/itms/" style="font-family: Arial, Helvetica, sans-serif;">file their taxes</a><span style="font-family: Arial, Helvetica, sans-serif;"> - but the site and service still has many challenges, including inaccessibility. <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6RZoxPwibioYD3sRGZzIn9c8CZqIgQNup0_KJADX75ms8uoUeEoVOn1eJTnAMl5Uq2BY6lbhjxuDAs4By6FHOxJdBHrQ5lS5-TmUIfQ9nFCCY7qGvxEsCGrQfBqxf0P085iLVqQ/s1600/EMV.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg6RZoxPwibioYD3sRGZzIn9c8CZqIgQNup0_KJADX75ms8uoUeEoVOn1eJTnAMl5Uq2BY6lbhjxuDAs4By6FHOxJdBHrQ5lS5-TmUIfQ9nFCCY7qGvxEsCGrQfBqxf0P085iLVqQ/s1600/EMV.jpg" height="240" width="320" /></a></div>
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<li><span style="font-family: Arial, Helvetica, sans-serif;">While the <b>schools laptop </b>project seems to have stalled at the procurement stage, some $200 million has been allocated in the 2014/15 budget to procure some laptops. More visible </span><span style="font-family: Arial, Helvetica, sans-serif;">in terms of making the government digital, has been the procurement by by </span><a href="http://www.nation.co.ke/counties/nairobi/Nairobi-county-approves-free-iPads-for-MCAs-to-cut-on-paper/-/1954174/2359888/-/format/xhtml/-/nt9y0q/-/index.html" style="font-family: Arial, Helvetica, sans-serif;">county</a><span style="font-family: Arial, Helvetica, sans-serif;"> governments and <a href="http://appleinsider.com/articles/14/01/20/kenyan-parliament-to-spend-nearly-350k-on-ipads-for-members-staff">parliament</a> of iPad's and other devices for leaders to use.</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">In the banking sector, June was a turning point for the migration to debit and credit cards to </span><a href="http://www.kba.co.ke/home/92-latest-news/277-kba-statement-on-the-banking-industrys-migration-to-the-emv-standard" style="font-family: Arial, Helvetica, sans-serif;">Chip-and-PIN enabled</a><span style="font-family: Arial, Helvetica, sans-serif;"> cards. </span><span style="font-family: Arial, Helvetica, sans-serif;">While the benefits to consumers appear negligible (less fraud identity than swipe cards) and there is a cost of about $1.80 to 3.20, there has now been a liability shift, and going forward, costs associated with fraud involving non-<b>EMV compliant cards</b> will be borne by the issuing bank (currently they are borne by the acquirer/merchant).</span></li>
<li><span style="font-family: Arial, Helvetica, sans-serif;">In terms of <b>digital television</b>, there's </span><a href="http://www.balancingact-africa.com/news/broadcast/issue-no176/regulation-policy/africa-radios-and-tv/bc" style="font-family: Arial, Helvetica, sans-serif;">one year left</a><span style="font-family: Arial, Helvetica, sans-serif;"> for the analogue to digital migration in Africa. However, </span><i style="font-family: Arial, Helvetica, sans-serif;">most countries are unlikely to make this deadline. </i><span style="font-family: Arial, Helvetica, sans-serif;">Read </span><a href="http://www.balancingact-africa.com/news/broadcast/issue-no180/broadcast/dtt-in-africa-the-de/bc#sthash.D16XaYZx.dpuf" style="font-family: Arial, Helvetica, sans-serif;">more</a>.</li>
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<i><span style="font-family: Arial, Helvetica, sans-serif;">EDIT</span></i></div>
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<li><span style="font-family: Arial, Helvetica, sans-serif;">The Kenya Government has <a href="http://www.kbc.co.ke/?p=24998">automated registration</a> of companies by <i>launching a </i></span><span style="font-family: Arial, Helvetica, sans-serif;"><i><b>one-day registration of companies</b> system to improve efficiency at the state law office.</i></span></li>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0tag:blogger.com,1999:blog-9317825.post-6130223243639330292014-06-21T16:21:00.002+03:002014-06-21T16:21:16.655+03:00Centonomy: Making Smart Sense of your Finances<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;">Some days ago, Waceke Nduati, founder of <a href="http://www.centonomy.com/">Centonomy</a>, a personal finance series that helps people get a grip of their finances and deal with money problems (that are often self-inflicted), gave a brief talk ahead of the new Centomy class period.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Centomy's eleven week course has just resumed with classes (total 3 hours a week) repeated on Tuesday,Wednesday,Thursday and Saturday from June to August. This is useful as some people may be busy on some days in a week, but can catch a repeat on any of the other days, and they are both in Westlands and downtown Nairobi. </span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">These include sessions on personal money management (setting goals, monitoring plans), living abundantly, investment planning (choosing an advisor, stock exchanges, valuing private companies), psychology of spending, money & relationships, time value of money, good vs. bad debt, managing cash reserves and irregular incomes, property investing, taxes, and estate planning (wills, family companies, succession).</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;">Some tips she cited: </span></div>
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<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">If you want to grow wealth, don’t hang with people who just sit around and complain about things like government. Instead read, learn, and be with uplifting voices.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Use your free time. Do free lance stuff like writing on Saturday morning or drive around to check up on opportunities. e.g new houses</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">If you buy a Range Rover for attention, you may be doing it at the wrong time in your life. Also you'll have to keep upgrading that car to keep impressing the same people.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The skills you have are assets; improve them, instead of buying the latest phone (the world will never run out of things to spend money on)</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Realise that half your income in a year goes to taxes and rent. Also we earn money 5 days a week but spend 7 days a week.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">When you retire, whatever your built will have to go back to paying your lifestyle</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Hidden savings - cutting back on your Kshs 300 per day lunch may equal Kshs 108,000 in December - enough for a land down payment, school fees or a (well deserved) holiday. </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">It's a myth that you can only save/invest when you earn a lot. Start with whatever you have, and saving Kshs 200 a day at 10 % can be Kshs 1.2 million in 10 years.</span></li>
</ul>
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<span style="font-family: Arial; font-size: 13px;"></span></div>
bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Apollo Centre, Ring Road Parklands, Nairobi, Kenya-1.2594797 36.804585800000041-1.2599757 36.803955300000041 -1.2589837 36.805216300000041tag:blogger.com,1999:blog-9317825.post-52857452759398958562014-06-20T22:43:00.001+03:002014-06-20T22:55:36.893+03:00Kenya: We Are One<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;">This morning, </span><a href="http://www.kepsa.or.ke/" style="font-family: Arial, Helvetica, sans-serif;">KEPSA</a><span style="font-family: Arial, Helvetica, sans-serif;"> - the Kenya Private Sector Alliance had a meeting with business and religious leaders to revive the </span><span style="font-family: Arial, Helvetica, sans-serif;"> </span><span style="font-family: Arial, Helvetica, sans-serif;">‘We are One’ campaign for Kenya at a time when terror and insecurity appears to be a growing threat to the country. </span></div>
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<i style="font-family: Arial, Helvetica, sans-serif;">Excerpts </i></div>
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<ul>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Safaricom Bob Collymore spoke about an investment banker who was comfortable traveling to Abuja for the World Economic Forum, but not to Nairobi which is now considered insecure. He then said the perception of Kenya was not good out there, and that the recently launch Kenya EuroBond was oversubscribed because it had a <a href="http://online.wsj.com/articles/kenyas-first-international-bonds-rise-on-first-full-day-of-trading-1403025863">nice yield</a>. He urged Kenyans to focus, not on politics, but on addressing the youth bulge and insecurity.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">KEPSA CEO Carole Kariuki urged Kenyans to help rebuild Mpeketoni, Baringo and Mandera by donating building materials or by channeling funds through the Kenya Red Cross.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Some disclosures & concerns discussed included p</span><span style="font-family: Arial, Helvetica, sans-serif;">olitical (and religious) leaders who speak carelessly on national TV or who engage in double speak before different </span><span style="font-family: Arial, Helvetica, sans-serif;">tribal and religious </span><span style="font-family: Arial, Helvetica, sans-serif;">audiences, </span><span style="font-family: Arial, Helvetica, sans-serif;">arming of communities, and targeting of properties of some communities. </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">University students are resisting pressure to demonstrate (throw stones) on behalf of politicians </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The </span><span style="font-family: Arial, Helvetica, sans-serif;">police are doing their part but what are ordinary Kenyans doing to promote peace. They were urged not </span><span style="font-family: Arial, Helvetica, sans-serif;">to speculate on facts, and n</span><span style="font-family: Arial, Helvetica, sans-serif;">ot to re-send / share propaganda that is found on social media .</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The morning ended with the national anthem, as a prayer. </span></li>
</ul>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0tag:blogger.com,1999:blog-9317825.post-83834306276863182342014-06-19T21:44:00.001+03:002014-06-19T21:44:13.254+03:00Agriculture not only improves Food Security but creates Wealth for Africans<div dir="ltr" style="text-align: left;" trbidi="on">
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<i><span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">An open letter to African Union Heads of State by </span></span><span style="line-height: 150%;"><span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">Kanayo F. Nwanze, President of the United Nations
rural development agency, the International Fund for Agricultural Development (IFAD)</span></span></span></i></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">Judging from the daily outpouring of commentary, opinions and reports,
you would think that there were two African continents. One of them is the new
land of opportunity, with seven of the world's 10 fastest growing economies,
offering limitless possibilities to investors. There is, however, this other image:
a starving and hopeless continent, hungry and poor, corrupt and prey to foreign
exploiters.<o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">As Africans, we are tired of caricatures. But we are also tired of
waiting. Waiting to be led toward the one Africa we all want: the Africa that
can and should be. We know the real Africa, filled with possibilities, dignity
and opportunities, able to face its challenges and solve them from within.
Never has the time been more right for us to finally realize our full
potential. It is within our grasp.<o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">As a scientist, I am always interested in facts. Africa is a land rich
in resources, which has enjoyed some of the highest economic growth rates on
the planet. It is home to 200 million people between the ages of 15 and 24. And
it has seen foreign direct investment triple over the past decade.<o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">As the head of an institution whose business is investing in rural
people, I know that you also need vision and imagination. At the International
Fund for Agricultural Development we have banked on the poorest, most </span></span><span style="font-family: Arial, Helvetica, sans-serif; line-height: 150%;">marginalized people in the world, and over and over again these
investments have paid off. For people, for communities, for societies. And more
than half of the people we invest in are Africans.</span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">More than 10 years have passed since the Maputo Declaration, in which you,
as African leaders, committed to allocating at least 10% of national
budgets to agriculture and rural development – key sectors in the drive to cut
poverty, build inclusive growth and strengthen food security and nutrition. <o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">Today, just seven countries have fulfilled the Maputo commitment
consistently, while some others have made steps in the right direction. Ten
years is a long time to wait. In less time I have seen projects turn desert
into farmland. <o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">In just a few days in Malabo at the 23<sup>rd</sup> African Union
Summit, I will join those of you, African leaders, who will gather to discuss
this year's focus of agriculture and food security. This is my call: Don’t just
promise development, deliver it, make it happen now. Make real, concrete
progress toward investment that reaches all Africans. Investments that prioritize
rural people.<o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">Our biggest resource is our people. To squander this is worse than
wasteful. If we don’t act now, by 2030 Africa will account for 80% of
the world's poor. Is this the legacy that we want to leave for future
generations?<o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">The AU declared 2014 as the year of Agriculture and Food Security. And
this is the year we look beyond the deadline of the Millennium Development
Goals to a post-2015 world with new goals and targets to reach. I hope that
this means that we will be dedicating ourselves fully to making agriculture a
priority. GDP growth due to agriculture has been estimated to be five times
more effective in reducing poverty than growth in any other sector, and in
sub-Saharan Africa, up to 11 times. Ironically,<b> it is countries that lack
lucrative extractive industries and that have had to invest in agriculture who
have found out what is now an open secret: agriculture not only improves food
security but creates wealth</b>. Small family farmers in some parts of our
continent contribute as much as 80% of food production. Investing in
poor rural people is both good economics and good ethics.<o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">A full 60% of our people depend wholly or partly on
agriculture for their livelihoods, and the vast majority of them live below the
poverty line. It’s not pity and handouts that they need. <b>It’s access to markets
and finance, land tenure security, knowledge and technology, and policies that
favour small farms and make it easier for them to do business</b>. A thriving small
farm sector helps rural areas retain the young people who would otherwise be
driven to migrate to overcrowded cities where they face an uncertain future. Investing
in agriculture reinforces not only food security, but security in general. <o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">In an Africa where 20 states are classified as fragile and 28
countries need food assistance, the need for a real rural transformation backed
by investment and not just words is critical – I have often said that
declarations don’t feed people.<o:p></o:p></span></span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><span lang="EN-GB" style="line-height: 150%;">Investments must be focused on smallholder family farms. Small farms
make up 80% of all farms in sub-Saharan Africa. And contrary to conventional
wisdom, small farms are often more productive than large farms. For example,
China's 200 million small farms cover only 10% of the world's
agricultural land but produce 20% of the world's food. <b>The average
African farm, however, is performing at only about 40% of its
potential. Simple technologies – such as improved seeds, irrigation and
fertilizer – could triple productivity, triggering transformational growth in
the agricultural sector. </b></span><span lang="EN" style="line-height: 150%;">It is estimated that
irrigation alone could increase output by up to 50% in Africa.<span style="mso-spacerun: yes;"> </span>Rural areas also need the right investments
in infrastructure – roads, energy, storage facilities, social and financial
services – and enabling policies backed by appropriate governance structures
that ensure inclusiveness. </span><span lang="EN-GB" style="line-height: 150%;"><o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">If we look at the countries that have met the Maputo commitment, we
see that investing in agriculture works. <b>Given that agriculture has become
lucrative for private investors, and about 60% of the planet's
available uncultivated agricultural land is in Africa, there is no mystery why
we hear about so-called 'land grabs'. Opportunity draws foreign investors.</b> There
is nothing wrong with foreign investment. But it has to be managed, to the
benefit of all. <o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;">What is a mystery is why, with such a vast potential and a young
population just waiting for a reason to seize it, our African leaders do not
announce that they will redouble their efforts to drive an inclusive rural
transformation, with concrete commitments, that will make Maputo a reality. I
hope that after the Malabo meeting, that will be a mystery no longer.<o:p></o:p></span></span></div>
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<span lang="EN-GB" style="line-height: 150%;"><span style="font-family: Arial, Helvetica, sans-serif;"><b>African economies have grown impressively. But it is time to stop
focussing on GDP figures and instead focus on people</b>. The majority of our
people are engaged in agriculture, and the neglect of that sector must stop if
we really want to realize the healthy, peaceful and food secure Africa that we
know can be. It is not a dream; it is a responsibility.</span></span></div>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Malabo, Equatorial Guinea3.75 8.78333329999998113.623243 8.6219717999999812 3.876757 8.9446947999999811tag:blogger.com,1999:blog-9317825.post-11424724878961231152014-06-16T22:18:00.000+03:002014-07-01T13:09:18.603+03:00BritAm and Swala Investments<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Arial, Helvetica, sans-serif;">Last week saw the
announcement of two new regional investment opportunities – one a new bond
offer in Kenya and the other – an IPO in Tanzania – that both close on
July 4.</span></div>
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<b style="mso-bidi-font-weight: normal;"><span style="font-family: Arial, Helvetica, sans-serif;">BritAm Bond: </span></b><span style="font-family: Arial, Helvetica, sans-serif;">Kenyan financial
group</span><span style="font-family: Arial, Helvetica, sans-serif;"> </span><a href="http://www.britam.co.ke/" style="font-family: Arial, Helvetica, sans-serif;">Britam</a><span style="font-family: Arial, Helvetica, sans-serif;"> announced a Kshs 6 billion ($69
million) bond</span><span style="font-family: Arial, Helvetica, sans-serif;"> </span><span style="font-family: Arial, Helvetica, sans-serif;">which will be two tranches
starting with an initial target of Kshs 3 billion.</span></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><i>Some excerpts from the bond <a href="http://www.britam.co.ke/site/images/downloads/ir/bond.pdf">prospectus</a> </i></span></div>
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<li style="text-align: justify;"><o:p><span style="font-family: Arial, Helvetica, sans-serif;">There is </span></o:p><span style="font-family: Arial, Helvetica, sans-serif;">green shoe option of Kshs
1 billion in the first tranche.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Funds raised will be utilized in private equity, ICT development and local and regional expansion
projects.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The </span><span style="font-family: Arial, Helvetica, sans-serif;">minimum investment is Kshs 100,000 (</span><span style="font-family: Arial, Helvetica, sans-serif;">~$1,150)</span><span style="font-family: Arial, Helvetica, sans-serif;"> </span><span style="font-family: Arial, Helvetica, sans-serif;">with multiples after of Kshs 50,000.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The </span><span style="font-family: Arial, Helvetica, sans-serif;">5 year bond (maturing in July 2019)</span><span style="font-family: Arial, Helvetica, sans-serif;"> pays 13% a year
(6.5% every six months). </span><span style="font-family: Arial, Helvetica, sans-serif;">So if you invest Kshs
100,000, you will get an interest</span><span style="font-family: Arial, Helvetica, sans-serif;">
</span><span style="font-family: Arial, Helvetica, sans-serif;">payment of <strike>($)</strike> Kshs. 6,500 twice a year.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The bonds will be listed
at the NSE for easy trading.</span></li>
<li style="text-align: justify;"><o:p><span style="font-family: Arial, Helvetica, sans-serif;">At the end of 2013 BritAm h</span></o:p><span style="font-family: Arial, Helvetica, sans-serif;">ad Kshs 47 billion of assets,
revenue of Kshs 15 billion and pre tax profit of Kshs 3.1b. They had Kshs 3.7 billion in
investment property and Kshs 6.1 billion in listed companies. They own </span><span style="font-family: Arial, Helvetica, sans-serif;">21% of Housing Finance, 10% of Equity Bank and 25% of Acorn group. They are acquiring Real Insurance for</span><span style="font-family: Arial, Helvetica, sans-serif;"> Kshs </span><span style="font-family: Arial, Helvetica, sans-serif;">1.3 billion (825m cash and shares for the balance).</span></li>
<li style="text-align: justify;"><o:p><span style="font-family: Arial, Helvetica, sans-serif;">The bond issuance</span></o:p><span style="font-family: Arial, Helvetica, sans-serif;"> will cost Kshs 57m
shillings - and Dyer & Blair get about Kshs 36M of this as the arranger gets (27M) and for the Placement (9M).</span></li>
</ul>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b style="mso-bidi-font-weight: normal;">Swala Energy: </b><a href="http://swala-energy.co.tz/">Swala Oil & Gas</a>
(Tanzania) </span><span style="font-family: Arial, Helvetica, sans-serif; text-indent: -24px;">aim to raise between TZS 1.6 billion ($969,000) if they sells 3.2 billion shares and </span><span style="font-family: Arial, Helvetica, sans-serif; text-indent: -24px;">TZS4.8b ($4.8 million) if they sell 9.6 billion shares at TZS 500 each. </span><i style="text-align: left;"><span style="font-family: Arial, Helvetica, sans-serif; text-align: justify;">The Offer is conditional on the Company achieving a minimum subscription of 3,200,000 Shares under this Prospectus, to raise TZS 1,600,000,000 (before expenses of the Offer). The Company may decide not to allot any shares and repay all application monies or seek a no objection to proceed with the allotment, in case the minimum subscription is not attained.</span></i></div>
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<ul><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFWNtyZQ4_2aApWwhJZ-hBQ0fyozY1W9gAviTDbw4TXMdXRzKnNX_-zZ2RXsqUbeSZewSmk35wwOubnSKOwCvyAHzORV7jAcFg-zpTLCi82Znnp1Qj493JzQXN9011xZMPZm4UfA/s1600/TZ+OIl.tiff" imageanchor="1" style="clear: right; display: inline !important; float: right; margin-bottom: 1em; margin-left: 1em; text-align: justify;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFWNtyZQ4_2aApWwhJZ-hBQ0fyozY1W9gAviTDbw4TXMdXRzKnNX_-zZ2RXsqUbeSZewSmk35wwOubnSKOwCvyAHzORV7jAcFg-zpTLCi82Znnp1Qj493JzQXN9011xZMPZm4UfA/s1600/TZ+OIl.tiff" height="309" width="320" /></a>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The minimum subscription is TZS 50,000 ($30) for 100 Shares. You can apply online, but a </span><span style="font-family: Arial, Helvetica, sans-serif;">physical
application form must be received at the brokers by 4</span><sup style="font-family: Arial, Helvetica, sans-serif;">th</sup><span style="font-family: Arial, Helvetica, sans-serif;"> July.</span></li>
<li style="text-align: justify;"><o:p style="text-align: left;"><span style="font-family: Arial, Helvetica, sans-serif;">Swala </span></o:p><span style="font-family: Arial, Helvetica, sans-serif; text-align: left;">has total assets of $1.8 million in 2013 (up from $75,000 in 2012) . revenue in 2013 was $285,000 (up from $62k) and loss was $5.5 million for the year (down from $1.26m the year before).</span></li>
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<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">They are fundraising as they plan to spend $3.5M next year and $6M the year after.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif; text-indent: -24px;">A London broker values the company at $52.3 million based on 50% interest in Pangani (an area of 8578 sq. km worth $25.1m) and 50% in Kilosa Kilombero (an area of 8838 sq. km worth $36.3m). <o:p></o:p></span><span style="font-family: Arial, Helvetica, sans-serif; text-indent: -24px;">Otto Energy is a 50% partner in both of these ventures. </span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif; text-indent: -0.25in;">The C</span><span style="font-family: Arial, Helvetica, sans-serif; text-indent: -0.25in;">osts of filing
will be between TZS 210M and TZS 248M ($150,000) with printing costing
32M, accountants 40m (~25,000 to BDO), technical specialist (Risc Pty) 40M legal (Asyla) 16m, nominated advisors 27M (~$16,000 to Arch Financial if $3m is
raised) and the Dar es Salaam Exchange gets 27M.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">The Swala Energy
prospectus gives insights on Kenya oil deals that are rarely public and which
are used as a basis for valuation of these shares and for comparison as they are all in the <o:p></o:p></span><span style="font-family: Arial, Helvetica, sans-serif;">East Africa Rift System </span><span style="font-family: Arial, Helvetica, sans-serif;">E.g. Recent Kenya
transactions (EARS ) include </span><span style="font-family: Arial, Helvetica, sans-serif;">Marathon Oil bought aBlock 12A license from Africa Oil for $78.5M and a Block 9 license, </span><span style="font-family: Arial, Helvetica, sans-serif; text-indent: -0.25in;">Africa Oil
bought a Block 12A license from Tullow for $3.86M ($1,265 per sq. KM and </span><span style="font-family: Arial, Helvetica, sans-serif; text-indent: -0.25in;">Adamantine sold
a Block 11B license to Bowleven for $10M ($1,429 per sq. KM).</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif; text-indent: -0.25in;">In Tanzania, p</span><span style="font-family: Arial, Helvetica, sans-serif; text-indent: -0.25in;">rofits from oil are shared out as 45% government and 55% to the contractor when production is less than
12,500 barrels per day and when barrels are over 100,000 per day, the government
gets 70% and the contractor 30%.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Swala has applied for approval to
list on the Enterprise growth Market section of the Dar es Salaam stock
exchange (they </span><span style="font-family: Arial, Helvetica, sans-serif;">need 100 shareholders so
list).</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Swala will go from holding 74% to 61% and new shareholders all have 10% with convertible note holders with 7%.</span></li>
<li style="text-align: justify;"><i><span style="font-family: Arial, Helvetica, sans-serif;">Tanzanian Applicants will
be allocated Offer Shares in priority to all other Applicants. Any Offer Shares
remaining thereafter will </span><span style="font-family: Arial, Helvetica, sans-serif;">be allocated to East
African Applicants. Offer Shares will only be allocated to Foreign Applicants
if they have not all been acquired by Tanzanian Applicants and East African
Applicants.</span></i></li>
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<span style="font-family: Arial, Helvetica, sans-serif;"><i>Excerpts </i></span><i style="font-family: Arial, Helvetica, sans-serif;">by @JGMBugua </i><i style="font-family: Arial, Helvetica, sans-serif;">of today's budget speech that was read in the Kenya Parliament, by the National Treasury Cabinet Secretary, Henry Rotich. </i></div>
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<ul style="text-align: left;">
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Grumbles still rumbling through Parliament as members realize they have been snookered and the Waiguru motion is dead</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Kenya Revenue Authority (KRA tax collection) target set at Kshs 1.1 trillion for the coming year i.e. ~$12.5 billion</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Financial Services Authority to be established... We should be aware the FSA in the UK had to be split and some of its oversight functions returned to the Bank of England after systemic failures during the global financial crisis. </span><span style="font-family: Arial, Helvetica, sans-serif;">The more apparent implication of establishing the Financial Services Authority is that it would likely see the collapse and merging of...the Capital Markets Authority, the Insurance Regulatory Authority, SASRA (for Saccos), the Retirement Benefits Authority and so on..</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Three new airports to be built in Mandera, Malindi and Suneka (?)</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Duty rates on import of iron and steel products increased from 0% - 25% - apparently to protect local industries</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">KRA ordered to stop demanding custom bond from importers of refined industrial sugar and wheat...Those barons lobbied hard</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Import of inputs for seed processing exempted from duty.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Govt moves to block multinationals from evading tax through transfer pricing where the local subsidiary buys from its mother company at exaggerated prices hence reporting little or no profits. "To keep the relationship at an arms length..." Rotich</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Stock market brokers win big as government and the Investor Compensation Fund forced to retreat and accept only 5% shareholding each in the demutualized stock exchange..Brokers to share 90%.</span></li>
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bankelelehttp://www.blogger.com/profile/01180926084939364063noreply@blogger.com0Treasury, Nairobi, Kenya-1.2892432 36.82460679999997-1.2897392 36.82397629999997 -1.2887472 36.825237299999969