I am newsless newswise (NN). TED has been great so far but I also want to know more about Tanzania on my first trip here (wandering around Lunga Lunga does not count)
One of the ways to appreciate what's happening in a country (political, financial, investment, government, arts, developmentetc.) is to read as many local newspapers as possible - because while there are billions of things found online that a newspaper will not contain, there are also thousands of things in a daily newspaper that cannot be adequately captured online. However here at TED i have had a very hard time getting a newspaper to read.
I woke up on Day 1 (Monday morning) expecting to find newspapers available (free or tot buy) in the hotel lobby or gift shop. But I was told that daily newspapers would only arrive in the afternoon – which I found strange. And unlike in Nairobi or Kampala, there are no vendors milling around hotels selling newspapers. Have i found stumbled upon something here? Is the reading culture different from Uganda or Kenya and does that mean anything for the East African Community? Or is it just that guests at this premier hotel are usually not interested in the Tanzanian daily papers?
On Day 2 (Tuesday) I even got up at 5:30 a.m. and went in search of any shuttle driver (who transports delegates across town to conference) to buy and bring me a papers in the morning and I even left money at the reception.
So, after two days, I have got three newspapers. Day 1: Citizen, and Mtanzania (Swahili), that I that I bought at 1 PM from a vendor at the hotel. Day 2: the African that I believe was brought by a shuttle driver at about 12 PM. I have also had a change to read the Tuesday daily nation (Kenya) - a copy which belongs to the hotel.
I have become something of a newsless nuisance (NN) to the hotel staff who seem bemused at my desire to locate a newspaper in the morning (fresh with news for the day) – as if I am awaiting an important fedex package which I can't trace.
It seems I may have to go to town myself to buy more papers like the business times, Arusha Times as well as other newspapers.
We'll see what Day 3 brings....
Wednesday, June 06, 2007
Tuesday, June 05, 2007
Mandatally Manji
Chatting with Hash at TED this morning about the entrepreneurship and I got to talking about a book I had recently read. Before long, we agreed that it was a good story that would be worth repeating here this week. Kumeckucha [Blog] had posted on this a while ago)
A few weeks ago, I had read the autobiography of the late Mandatally Manji, an Asian-Kenyan who who founded House of Manji which he built into the largest regional biscuit company.
He was encouraged by his family to put his life's' story together and it's a fascinating story for any budding entrepreneur to read on. He details how;
- From being a clerk transporting commodities around Central Kenya he came up with his plan to start a bakery.
- After hard work and sweat many years later, he achieved his dream when through a partnership he was able to buy and run a bakery with a perfect location and healthy customer base in Nairobi.
- How he chose to walk away from the bakery in frustration at his his dead weight partner who contributed little to the success of the bakery.
- Having to start all over again with even less, as his former partner was slow in paying him for his shares
- Dealing with macro economic problems - and having to produce biscuits even as basics commodities like sugar and wheat were rationed and diverted to the war (WWII)effort.
- Dealing with discriminatory/political barriers – and winning customers and contracts away from European bakeries through unmatched service and delivery.
- Ingenuity to keep producing bread and biscuits by observing and experimenting. This he did by adapting the the cooking habits of his employees who used grains not known (or rationed) by the Colonial Government. His competitors accused of him of souring from the black market as they could not imagine how his bakery was able to keep producing.
It's a great book that's less than 200 pages long, but very hard to find.
More:
- Earlier post on Manji by Kumeckucha.
- Wikipedia entry
The book can found at amazon (though pricey)
A few weeks ago, I had read the autobiography of the late Mandatally Manji, an Asian-Kenyan who who founded House of Manji which he built into the largest regional biscuit company.
He was encouraged by his family to put his life's' story together and it's a fascinating story for any budding entrepreneur to read on. He details how;
- From being a clerk transporting commodities around Central Kenya he came up with his plan to start a bakery.
- After hard work and sweat many years later, he achieved his dream when through a partnership he was able to buy and run a bakery with a perfect location and healthy customer base in Nairobi.
- How he chose to walk away from the bakery in frustration at his his dead weight partner who contributed little to the success of the bakery.
- Having to start all over again with even less, as his former partner was slow in paying him for his shares
- Dealing with macro economic problems - and having to produce biscuits even as basics commodities like sugar and wheat were rationed and diverted to the war (WWII)effort.
- Dealing with discriminatory/political barriers – and winning customers and contracts away from European bakeries through unmatched service and delivery.
- Ingenuity to keep producing bread and biscuits by observing and experimenting. This he did by adapting the the cooking habits of his employees who used grains not known (or rationed) by the Colonial Government. His competitors accused of him of souring from the black market as they could not imagine how his bakery was able to keep producing.
It's a great book that's less than 200 pages long, but very hard to find.
More:
- Earlier post on Manji by Kumeckucha.
- Wikipedia entry
The book can found at amazon (though pricey)
TED Global: History Rhymes
Dr. Ken Vickery of North Carolina State University gave a talk on past leaders in Africa and their engagement in entrepreneurial zeal and partnerships on their own terms to benefit their people.
- Nzinga Mbemba the Manikongo (leader) of the Kongo in the 16th century who entered into a joint venture with the Portuguese where his people would receive education and Christianity in exchange for ivory and slaves. His son was eventually consecrated by the pope as the first African roman catholic bishop. But Portuguese did not fulfill their end of the deal, negotiating around him to get greater even greater numbers of slaves and corrupting his court. His relationship with the Portuguese is chronicled in 22 letters that are now widely published.
- Ja Ja, King of the Opobo Kingdom, in the 1880's. Got into a partnership with the English for ship palm oil. When he felt he was not getting a fair deal from shipping companies so he set out to establish his own shipping line. For this he was captured and exiled by the British.
- Third was African counties in the post independence area (early 1960's to mid 70') their economies GNP's grew post independence and they delivered services such as education and health care and largely performed as governments. They were not basket cases until the oil crisis and collapse of raw material market shocks destabilized their growth patterns.
So even as we stand at the dawn of a new era of partnerships of trade, development, debt, aid, etc., remember that history rhymes.
Ted Global Arusha
Mentioned earlier about being blessed/fortunate in life to see people like Michael Jordan (destroy Washington in their last game as the Bullets, though Scottie Pippen provided the winning dunk), Michael Schumacher (win the first US grand prix) and Tiger Woods (not enjoying his first US open). That all compares with being at TED Global in Arusha at which Kenya is well represented.
I will use this weeek to relax & learn from such esteemed speakers, participants, delegates, fellows and our Tanzanian hosts. (Read on who else is here, and what happened on Day 1 here, here, here)
Where's Safaricom? Not met anyone here from the company whose M-PESA is touted by so many people (from around the world) here as a revolutionary enabler and an example of a means to empower millions by giving them financial accessibility & income earning potential
I will use this weeek to relax & learn from such esteemed speakers, participants, delegates, fellows and our Tanzanian hosts. (Read on who else is here, and what happened on Day 1 here, here, here)
Where's Safaricom? Not met anyone here from the company whose M-PESA is touted by so many people (from around the world) here as a revolutionary enabler and an example of a means to empower millions by giving them financial accessibility & income earning potential
Madaraka Banking Week
The African Development Bank sets up a regional office in Nairobi.
CFC - Stanbic merger on track.
Dar es Salaam community bank extending their rights issue offer by one month to June 30.
A bank site was hacked (this one?)
Family Bank is being sued for making a bribery allegation against a Central bank official
First Community Bank to be Kenya's first Islamic Bank
An blog investor perspective on the Housing Finance rights issue
KCB plans to open 2 0 branches in Sudan. Also there brief panic created by a smoky generator this week atop Kencom House.
CFA's wanted: Investment banking gets even more lucrative now in Kenya
CFC - Stanbic merger on track.
Dar es Salaam community bank extending their rights issue offer by one month to June 30.
A bank site was hacked (this one?)
Family Bank is being sued for making a bribery allegation against a Central bank official
First Community Bank to be Kenya's first Islamic Bank
An blog investor perspective on the Housing Finance rights issue
KCB plans to open 2 0 branches in Sudan. Also there brief panic created by a smoky generator this week atop Kencom House.
CFA's wanted: Investment banking gets even more lucrative now in Kenya
Monday, June 04, 2007
Forget the tip jar
This past week I discovered two jobs where one is forced to receive extra money just for doing their job (and it's not a bribe)
First is for workers at the harbour/ports. Even honest people walk away with (a minimum) Kshs. 2,000 at the end of the day in lunch money from grateful transporters just for doing their job. These guys (transporters) pay so many bribes that when someone does their job without asking for a bribe, they still can't get over that and press some cash into the reluctant hands of the officers.
Then, passing through the airport yesterday, I overhead several travelers, too bothered to reprice the cost of a cup of coffee in Kenya shillings, pay 1 or 2 dollars or pounds and dash off to their gate. How that money is shared is another matter – but when an 80 shillings soda is paid for with a £1 note (equivalent) to about 130 shillings, there's a healthy cut for someone – and probably more than any tip jar would bring in. This is probably a common occurrence in in the tourism industry (see how tour van drivers usually have plenty of dollars to sell)
First is for workers at the harbour/ports. Even honest people walk away with (a minimum) Kshs. 2,000 at the end of the day in lunch money from grateful transporters just for doing their job. These guys (transporters) pay so many bribes that when someone does their job without asking for a bribe, they still can't get over that and press some cash into the reluctant hands of the officers.
Then, passing through the airport yesterday, I overhead several travelers, too bothered to reprice the cost of a cup of coffee in Kenya shillings, pay 1 or 2 dollars or pounds and dash off to their gate. How that money is shared is another matter – but when an 80 shillings soda is paid for with a £1 note (equivalent) to about 130 shillings, there's a healthy cut for someone – and probably more than any tip jar would bring in. This is probably a common occurrence in in the tourism industry (see how tour van drivers usually have plenty of dollars to sell)
Sunday, June 03, 2007
KPLC unbundled
A new company will be spun off from the Kenya Power and Lighting Company once PricewaterhouseCoopers complete a review and formulate a balance sheet for the new transmission company.
RVR shutdown: Kenya Ports Authority has ended a contract with Rift Valley Railways for non performance. What ails the company that has invested so much in new trains? Well the actual railway is still run by Kenya railways who have not seen any significant investment in years (but who have just advertised for a new MD)
Other Madaraka Jobs
most from the papers
Aureos Kenya a private equity funds is seeking investment professionals. Apply by
20/6 the managing partner at 43233-00100 Nairobi.
British airways: Trade sales manager east Africa, Corporate sales manager East Africa. Apply to hcapjobs@wananchi.com by 8/6
Investment Research Consultants at Kaimana Consulting to evaluate investment opportunities in the emerging markets of Eastern Africa. Apply to jobs@kaimanaconsulting.com.
RVR shutdown: Kenya Ports Authority has ended a contract with Rift Valley Railways for non performance. What ails the company that has invested so much in new trains? Well the actual railway is still run by Kenya railways who have not seen any significant investment in years (but who have just advertised for a new MD)
Other Madaraka Jobs
most from the papers
Aureos Kenya a private equity funds is seeking investment professionals. Apply by
20/6 the managing partner at 43233-00100 Nairobi.
British airways: Trade sales manager east Africa, Corporate sales manager East Africa. Apply to hcapjobs@wananchi.com by 8/6
Investment Research Consultants at Kaimana Consulting to evaluate investment opportunities in the emerging markets of Eastern Africa. Apply to jobs@kaimanaconsulting.com.
Friday, June 01, 2007
Uchumi Anniversary
One year ago today, Uchumi closed down. The management resigned, and the government later stepped in with a rescue package, receiver manager, and arrangement with the company’s' banks.
AGM season; Yesterday Uchumi held a meeting for shareholders. Watching KTN, it appears the media were kept out (as had been at past shareholder meetings). I was not able to attend (as a shareholder) and I am requesting any reader who attended to comment with a synopsis or key issues mentioned at the Uchumi meeting or any other AGM at KICC yesterday. Anonymous comments are given less weight, so do sign your comment with a name/profile please. (Media reports here and here)
This is AGM season and there are too many events to cover. I have tried to avoid going back to the same companies, but when you have two or three on a given day, in addition to other duties – yesterday company AGM's included Nation Media Group, Standard chartered and Uchumi, one can't be everywhere.
Uchumi Receivership: Media reports indicate that Uchumi (under receivership) may have improved performance by 50% over their best recent year. The audited results have not been released do they public, nor do they when a company is under receivership.
A receiver / manager (RM) (or bank hangman) is appointed by debenture holders (usually bank or financial institution) when they see a company is going to crash. His/her job is to salvage what they can for the banks to recover their money (usualy by sale of assets), not other shareholders or suppliers. By that measure, the Uchumi team (led My Mr. Ciano) has gone an extra mile in engaging & informing suppliers and shareholders in the recovery plan. Shareholders because Uchumi needs their goods on the shelves and shareholders to raise money.
RM's usually are unable to revive companies. This is because, by the time they are appointed, the company is beyond salvation. The owners/management will have run it down, hidden information from banks on the poor performance of the company, withheld payments to banks, staff and unfortunately to the tax man and city council, among other fatal decisions.
Some RM's have gotten very rich in this country, selling the assets of the company to themselves – at throwaway prices, employing their relatives, and enjoying the power to manager giant companies that they would not have risen to manage even if they had worked for 50 years. For others it has become a permanent way of life, as the company (under their management) remains profitable and they see it as a long term job – see the Naiorbi Grand Regency Hotel - that has been run by different RM's for over 10 years now). RM's also have to contend with lengthy court battles with the previous owners who also meddle in the company's affairs through proxies.
But occasionally, and if appointed early enough, an RM can actually save a company. He/she can make some harsh decisions to trim fat e.g. shut down an unprofitable unit that was consuming too much money, terminate bad contracts, and fire excess/expensive employees. They are able to make decisions that a sentimental management were unable to. It has happened before (rarely) and sometimes the now greatful previous owners will acknowledge the work of the RM to turn around the company and will now come back and pay the bank and takeover their now lean & profitable company.
AGM season; Yesterday Uchumi held a meeting for shareholders. Watching KTN, it appears the media were kept out (as had been at past shareholder meetings). I was not able to attend (as a shareholder) and I am requesting any reader who attended to comment with a synopsis or key issues mentioned at the Uchumi meeting or any other AGM at KICC yesterday. Anonymous comments are given less weight, so do sign your comment with a name/profile please. (Media reports here and here)
This is AGM season and there are too many events to cover. I have tried to avoid going back to the same companies, but when you have two or three on a given day, in addition to other duties – yesterday company AGM's included Nation Media Group, Standard chartered and Uchumi, one can't be everywhere.
Uchumi Receivership: Media reports indicate that Uchumi (under receivership) may have improved performance by 50% over their best recent year. The audited results have not been released do they public, nor do they when a company is under receivership.
A receiver / manager (RM) (or bank hangman) is appointed by debenture holders (usually bank or financial institution) when they see a company is going to crash. His/her job is to salvage what they can for the banks to recover their money (usualy by sale of assets), not other shareholders or suppliers. By that measure, the Uchumi team (led My Mr. Ciano) has gone an extra mile in engaging & informing suppliers and shareholders in the recovery plan. Shareholders because Uchumi needs their goods on the shelves and shareholders to raise money.
RM's usually are unable to revive companies. This is because, by the time they are appointed, the company is beyond salvation. The owners/management will have run it down, hidden information from banks on the poor performance of the company, withheld payments to banks, staff and unfortunately to the tax man and city council, among other fatal decisions.
Some RM's have gotten very rich in this country, selling the assets of the company to themselves – at throwaway prices, employing their relatives, and enjoying the power to manager giant companies that they would not have risen to manage even if they had worked for 50 years. For others it has become a permanent way of life, as the company (under their management) remains profitable and they see it as a long term job – see the Naiorbi Grand Regency Hotel - that has been run by different RM's for over 10 years now). RM's also have to contend with lengthy court battles with the previous owners who also meddle in the company's affairs through proxies.
But occasionally, and if appointed early enough, an RM can actually save a company. He/she can make some harsh decisions to trim fat e.g. shut down an unprofitable unit that was consuming too much money, terminate bad contracts, and fire excess/expensive employees. They are able to make decisions that a sentimental management were unable to. It has happened before (rarely) and sometimes the now greatful previous owners will acknowledge the work of the RM to turn around the company and will now come back and pay the bank and takeover their now lean & profitable company.
Kenya Re 2006
Kenya Re published their 2006 results in preparation for IPO planned for June. Assets were up from Kshs. 11.6 billion in 2005 to 12.8 billion ($183 million) in 2006 and net insurance premium revenue rose from 2.1 to 2.8 billion over the same period. The year also saw management expenses increase from Kshs. 290 to 453 million resulting in a reduction of pre-tax profit from Kshs. 947 million in 2005 to 762 million ($10.9 million) in 2006.
Kenya Re accounts are straight forward, but insurance reporting is tricky. Once a year, usually between March & May), insurance companies publish their year end results. But there is no rhyme, some report only total assets, some don't report profit/loss, or net asset positions while others have more/less detail – making it difficult to compare and see which companies are performing better. I wish their reporting could be harmonized.
Kenya Re accounts are straight forward, but insurance reporting is tricky. Once a year, usually between March & May), insurance companies publish their year end results. But there is no rhyme, some report only total assets, some don't report profit/loss, or net asset positions while others have more/less detail – making it difficult to compare and see which companies are performing better. I wish their reporting could be harmonized.
Wednesday, May 30, 2007
KQ hits turbulence
Down: Profits dipped slightly owing to increased competition, and the weakening US dollar. Kudos’ to the NSE for the timely release of company accounts (now if they could only offer .txt alternatives alongside the huge PDF files). Sooner or later a company is going to reach a limit - and either report flat (or declining) revenue or profits, but shareholders don’t take too kindly to the inevitable.
Pilot stabilizes: In the wake of the KQ 507 crash, the airline MD has released a statement on safety issues to quell murmurs that the airline operations were stretched in pursuit of profit. Another statement of reassurance from a former manager.
Up: The airline has been voted Africa's Leading Airline by readers of Travel News magazine. KQ also won for best regional, local airline, Msafiri magazine and frequent flier programme (with KLM).
Pilot stabilizes: In the wake of the KQ 507 crash, the airline MD has released a statement on safety issues to quell murmurs that the airline operations were stretched in pursuit of profit. Another statement of reassurance from a former manager.
Up: The airline has been voted Africa's Leading Airline by readers of Travel News magazine. KQ also won for best regional, local airline, Msafiri magazine and frequent flier programme (with KLM).
ARM to retire bonds
Athi River Mining will convert 125 million shillings worth of corporate bonds into shares in the company as existing shareholders will be asked to approve the creation of 25 million new shares for this purpose.
The bonds were launched in October 2005. Of the 800m raised 600 was for completion of clinker plant in Kaloleni (near Mombasa) and 200 million was for repayment of bank debt.
Other corporate bonds include Faulu Kenya, PTA Bank and Mabati - with few new issues expected and little trading in them. Previous corporate bond giants - Safaricom and Celtel (who also retired their bonds early), opted to get bank financing the last time they needed expansion funds.
The bonds were launched in October 2005. Of the 800m raised 600 was for completion of clinker plant in Kaloleni (near Mombasa) and 200 million was for repayment of bank debt.
Other corporate bonds include Faulu Kenya, PTA Bank and Mabati - with few new issues expected and little trading in them. Previous corporate bond giants - Safaricom and Celtel (who also retired their bonds early), opted to get bank financing the last time they needed expansion funds.
Tuesday, May 29, 2007
The real Safaricom EDGE
(Premium) Story in the Nation about the Cabinet being presented with a paper to approve the sale of 25% of Safaricom to the public.
This is a winning card this election year that will be foremost in the minds of investors and voters. A well managed Safaricom IPO before December could deliver more votes than needless voter expenditure or rhetoric from any leader.
Power shift: Meanwhile Bloomberg reports that - for the first time since WWII more money will be raised from European IPO’s than US ones. Stringent regulations, high costs (6.7% of IPO versus 3.3% for Europe) and the weak US$ to blame as 14 or the 15 biggest recent IPO’s were listed outside the US.
This is a winning card this election year that will be foremost in the minds of investors and voters. A well managed Safaricom IPO before December could deliver more votes than needless voter expenditure or rhetoric from any leader.
Power shift: Meanwhile Bloomberg reports that - for the first time since WWII more money will be raised from European IPO’s than US ones. Stringent regulations, high costs (6.7% of IPO versus 3.3% for Europe) and the weak US$ to blame as 14 or the 15 biggest recent IPO’s were listed outside the US.
Media bill 2007
There have been many columns written about the Media Bill 2007 that was presented in Parliament this month and which seeks to instill responsibility among journalists. However it is missing from the ministry site, there are no PDF’s available (so far) and I was only able to get a copy thanks to a networked bloggger.
It was disappointing that so far everyone talks about it, but few (member of the public) have seen it. Even media houses have remained selfish with the document, withholding it and only telling us what’s bad about it. Actually the bill is quite bare, except for providing for the establishment of a media advisory council, media advisory board and a code of conduct for journalists.
- Pros: It creates about 20 new jobs (board seats) on two new bodies (media advisory council and media advisory board)
- Is not as broad as previously envisioned when it appeared that it would cover cross ownership and content issues.
Cons: Much has been written about it - read some (here, here, and here)
The bill is crafted by people who believe that the media are out to get them so it comes out as something that a media-challenged celebrity may have written - guiding the media on what to do and what not to do via a code of conduct. It seems to be directed at the Standard which is believed to have editorial issues dictated by ownership (the bill calls on journalists to refuse to allow the interests of ownership or management to influence news' judgment and content inappropriately) and therefore one ups the Standard by drafting a bill that seeks to forbid intrusions into individuals private life (without the persons consent), alarming headlines (a staple of tabloids to lure buyers), the use of hidden recordings (ala Githongo) and confidential/unnamed sources – with penalties such as deregistration of journalists.
Likely outcome: As bad as the bill is, it may actually pass in parliament because no politician likes the media - they will make a show of opposing the bill, but all will welcome the chance/forum to complain about negative coverage.
Jobs
from the newspapers over the last week
Commercial and political risks underwriter at Africa trade insurance agency - ATIA. Apply to Recruitment@Africa-ECA.com by 15/6
Marketing manager at nation media group: apply to hrrecruit@nation.co.ke 30/5
National communications secretariat of the republic of Kenya: communication legal expert, accountant, system administrator. Apply to ncs@elimu.net 15/6
Pricewaterhousecoopers: public financial management and procurement specialists. Apply to recruitment.ke@ke.pwc.com by 15/6
Sony (South Nyanza Sugar Company): CEO/ M - details here. Also HR development manager, procurement manager, management accountant, property manager, sales operations manager. Apply by 20/6
It was disappointing that so far everyone talks about it, but few (member of the public) have seen it. Even media houses have remained selfish with the document, withholding it and only telling us what’s bad about it. Actually the bill is quite bare, except for providing for the establishment of a media advisory council, media advisory board and a code of conduct for journalists.
- Pros: It creates about 20 new jobs (board seats) on two new bodies (media advisory council and media advisory board)
- Is not as broad as previously envisioned when it appeared that it would cover cross ownership and content issues.
Cons: Much has been written about it - read some (here, here, and here)
The bill is crafted by people who believe that the media are out to get them so it comes out as something that a media-challenged celebrity may have written - guiding the media on what to do and what not to do via a code of conduct. It seems to be directed at the Standard which is believed to have editorial issues dictated by ownership (the bill calls on journalists to refuse to allow the interests of ownership or management to influence news' judgment and content inappropriately) and therefore one ups the Standard by drafting a bill that seeks to forbid intrusions into individuals private life (without the persons consent), alarming headlines (a staple of tabloids to lure buyers), the use of hidden recordings (ala Githongo) and confidential/unnamed sources – with penalties such as deregistration of journalists.
Likely outcome: As bad as the bill is, it may actually pass in parliament because no politician likes the media - they will make a show of opposing the bill, but all will welcome the chance/forum to complain about negative coverage.
Jobs
from the newspapers over the last week
Commercial and political risks underwriter at Africa trade insurance agency - ATIA. Apply to Recruitment@Africa-ECA.com by 15/6
Marketing manager at nation media group: apply to hrrecruit@nation.co.ke 30/5
National communications secretariat of the republic of Kenya: communication legal expert, accountant, system administrator. Apply to ncs@elimu.net 15/6
Pricewaterhousecoopers: public financial management and procurement specialists. Apply to recruitment.ke@ke.pwc.com by 15/6
Sony (South Nyanza Sugar Company): CEO/ M - details here. Also HR development manager, procurement manager, management accountant, property manager, sales operations manager. Apply by 20/6
Saturday, May 26, 2007
Olympia Rights Issue
Olympia capital is seeking to raise 600 million shillings in a rights issue later this year, after approval by shareholders. Part of the proceeds (Kshs. 87 million) will be used to repay a shareholders loan that was used to bridge the purchase of Plush Products in 2006.
The acquisition of Plush is expected to more than double the company's turnover in 2007 Olympia's accounts were not qualified, but the auditors have noted that their company has a negative working capital position - which has been offset by gains from the Botswana subsidiary - from which Olympia generates 5X more turnover than it does from Kenya.
More reading on Olympia: (here and here)
The acquisition of Plush is expected to more than double the company's turnover in 2007 Olympia's accounts were not qualified, but the auditors have noted that their company has a negative working capital position - which has been offset by gains from the Botswana subsidiary - from which Olympia generates 5X more turnover than it does from Kenya.
More reading on Olympia: (here and here)
Friday, May 25, 2007
Summer Calendar
Up comings events
What ICT can do for your business: besides make you a multi-millionaire - A talk by Jonathan Somen, Access Kenya CEO.
Uchumi anniversary: One year after the company was shut down, the receiver manager will on May 31, explain the way forward to shareholders
Welcome to Kenya: June 1 sees the arrival of CNBC broadcasts and Virgin Atlantic air services
Rhino Charge: The 2007 Kenya Rhino Charge presumably in the Kerio Valley, June 1 - 3
TED Global in Arusha: Dubbed Africa: The Next Chapter, June 4-7.
edit - Tusker Safari Sevens
Kenya's premier rugby event: June 8 - 10
Satellite & wireless conference: The African Satellite & Wireless Broadband Conference & VoIP Forum at Safari Park Hotel, Nairobi, 11-13 June with the theme of "Broadband bridges across Africa: First and last mile solutions."
Get ready for election 2007: June 30 is the deadline for public servants (employees of government, local authorities, academia, parastatals, judiciary, military, others) who intend to contest for parliamentary seats in this years election to resign from their jobs.
Meet the President: A business roundtable with Kenyan government leaders on July 17 & 18 in Nairobi. Speakers include H. E. President Mwai Kibaki and Ministers Amos Kimunya, Mukhisa Kituyi, and John Koech
Africa investor Awards : The 2007 awards will be handed down on 8 November in Lagos, Nigeria. Kenyan nominees short listed include;
- The Nairobi Stock Exchange for Best African Stock Exchange
- Kengen for Best African IPO (also in the running is Stanbic Uganda)
- African Alliance for Best Africa Research Team
- Kenya Commercial Bank for Best Ai 40 company
What ICT can do for your business: besides make you a multi-millionaire - A talk by Jonathan Somen, Access Kenya CEO.
Uchumi anniversary: One year after the company was shut down, the receiver manager will on May 31, explain the way forward to shareholders
Welcome to Kenya: June 1 sees the arrival of CNBC broadcasts and Virgin Atlantic air services
Rhino Charge: The 2007 Kenya Rhino Charge presumably in the Kerio Valley, June 1 - 3
TED Global in Arusha: Dubbed Africa: The Next Chapter, June 4-7.
edit - Tusker Safari Sevens
Kenya's premier rugby event: June 8 - 10
Satellite & wireless conference: The African Satellite & Wireless Broadband Conference & VoIP Forum at Safari Park Hotel, Nairobi, 11-13 June with the theme of "Broadband bridges across Africa: First and last mile solutions."
Get ready for election 2007: June 30 is the deadline for public servants (employees of government, local authorities, academia, parastatals, judiciary, military, others) who intend to contest for parliamentary seats in this years election to resign from their jobs.
Meet the President: A business roundtable with Kenyan government leaders on July 17 & 18 in Nairobi. Speakers include H. E. President Mwai Kibaki and Ministers Amos Kimunya, Mukhisa Kituyi, and John Koech
Africa investor Awards : The 2007 awards will be handed down on 8 November in Lagos, Nigeria. Kenyan nominees short listed include;
- The Nairobi Stock Exchange for Best African Stock Exchange
- Kengen for Best African IPO (also in the running is Stanbic Uganda)
- African Alliance for Best Africa Research Team
- Kenya Commercial Bank for Best Ai 40 company
Thursday, May 24, 2007
100 years
Deloitte celebrated 100 years of doing business in Kenya last week at the ivory burning site inside the Nairobi National Park.
I’m sure Deloitte will exist in another hundred years, but will the Nairobi National Park as we know it be around in a hundred years?
This has been debated before but it sure to come up again and again as the city rapidly expands into all open land to the South and East.
And with the three hour traffic jams (more) that some city residents experience daily, each way on roads like Thika Road and Mombasa Road, there is appetite for some improvement.
Decision makers may find it easier to hive off land than to radically change other aspects of rapid urbanizations such as taxation (increase tax on cars to reuce their numbers), develop a mass public transport system, or infrastructure (more by-pass roads) which in any case would still have to run thought the park.
So it’s likely that in a few years you can expect moves to reduce / encroach on the parks 117 sq km to create more residential and commercial space close to the city.
And residents lulled by the offer of more land, easier access to towns, offices and new homes may support absorption of some park space by the city of Nairobi.
Though the park has stood the test of time and remains largely intact to past encroachment efforts, the animal numbers have diminished as developments to the south have cut off migration paths. Stories of lions or leopards being seen in the Langata area at night have all but disappeared. The Kenya Wildlife service has proven adept at relocating animals including elephants and rhinos to other parks in the country and would be called up on to do the same here.
The park has few forested areas so it’s easy to see quite far in the park. But at night during the Deloitte function you could see lights in the distance all around the park, marking the edge of human activity bursting to enter the park.
Good luck to Nairobi National Park over the next 100 years!
Access Kenya IPO results
Access Kenya summary
Individual applicants: who applied for the minimum 5,000 shares get 900 shares, while those who applied for 25,000 get 4,000.
Institutional investors: that applied for the minimum 100,000 get full allocation, while those that applied for 1 million get about ½ that .
Serena expands to South Africa
Serena shareholders will this month be asked to approve creation of a South African subsidiary company
CMA reforms planned
The Capital Markets Authority has commissioned a consultancy to modernize & improve its operations by strengthening its legal and regulatory framework. Part 1 of the study will have the consultants evaluate the capital markets and central depositories acts, look at secondary market malpractices & sanctions, cross border listings & trading, methods of dispute resolution among others. In Part II, the consultants will come up with revised regulations that, based on the weaknesses identified in part 1, ensure that Kenya investor laws & regulations adhere to international best practices. This is part of the FLSTAP reform program of the Ministry of Finance and consulting firms can apply by June 13.
Individual applicants: who applied for the minimum 5,000 shares get 900 shares, while those who applied for 25,000 get 4,000.
Institutional investors: that applied for the minimum 100,000 get full allocation, while those that applied for 1 million get about ½ that .
Serena expands to South Africa
Serena shareholders will this month be asked to approve creation of a South African subsidiary company
CMA reforms planned
The Capital Markets Authority has commissioned a consultancy to modernize & improve its operations by strengthening its legal and regulatory framework. Part 1 of the study will have the consultants evaluate the capital markets and central depositories acts, look at secondary market malpractices & sanctions, cross border listings & trading, methods of dispute resolution among others. In Part II, the consultants will come up with revised regulations that, based on the weaknesses identified in part 1, ensure that Kenya investor laws & regulations adhere to international best practices. This is part of the FLSTAP reform program of the Ministry of Finance and consulting firms can apply by June 13.
Tuesday, May 22, 2007
Kutwa Tuesday
These are stories I have found (kutwad) and want to share this Tuesday
Getting a story straight: One way of getting your story out through the media is to buy space and have your statement run exactly as you mean it and straight to the public - and there are two recent instances of that.
Street Lights: First is by the CEO of Adopt-A-Light Esther Passaris who launched her transformed street lighting crusade into an anti-poverty and anti-corruption vehicle that may lead her to being the next mayor of Nairobi.
This comes after the City council of Nairobi disowned the contract they had with her company and advertised for other companies to fulfill outdoor lighting & advertising functions which were had been exclusively done by Adopt a light.
What’s in your water bottle?: The second statement is a concerned water expert who is worried that Kenyans may not understand the different types of bottled water being sold - drinking water, natural mineral water, mineral water, carbonated water etc. - and that water bottling companies are being liberal with the advertising truth. He writes that natural mineral water is bottled at source, and with no chemical treatment, which is an expensive process - and he doubts that it is possible for a company actually producing such water, can sell it at the same price as drinking water. I.e. some of the companies are making false claims on their water bottles. He also cautions users to check the amount of fluorine in bottled water as it can lead to bad teeth and bone disease (Should not be more than 1.5mg per litre)
Do they work?: Of course the media love a story waged on their papers and companies such as Kakuzi, Portland cement, Kenya pipeline, Nzoia Sugar and other companies have all bought space (in more than one newspaper) to run statements, usually denying allegations of financial impropriety. There was even an infamous statement defending Anglo Leasing a few years ago.
Esther Passaris took out 2 page advertisements in both the Sunday Nation and Sunday Standard – probably at a total cost of Kshs 1.5 million (840,000 for the Nation, and over 600,000 for the standard)
The media is happy because these statements add to advertising revenue and often lead to other statements and form a base for them to tackle stories that they may have been hesitant to delve into. IMHO, it is unwise for corporations to place such self-serving advertisements especially to deny allegations – the better thing is to lie low and let the bad press (negative stories) pass, plant a few trees & build schools (CSR is good first aid for a scandal wound), answer questions from regulators or authorities – but don’t splash your story in the media!
(See past PR statements by De La Rue and Italians in Malindi.
Communications Wananchi has applied for a data carrier network operator - DCNO license - joining other firms such as KDN, Simbanet, Telkom, UUNET and Access Kenya.
Bounty Hunter: In a Ugandan newspaper, I came across an article (copy here) about the search for Felicien Kabuga who is wanted for his role in the 1994 Rwanda genocide. The article had more depth than any story I have read in any Kenyan paper (fear of libel laws perhaps), but what continues to amaze me is that despite almost every literate urban Kenyan knowing about the search, a reward on offer of $5m (down to Kshs 335 million at current exchange rate), recent photos of Kabuga that the Nation published a few months ago, and significant evidence that he spends a great deal of time in Kenya – no one (his friends & associates) cares enough, for posterity, or for the reward, to turn this guy in. And now there’s a deadline - as the mandate for the International Criminal Tribunal for Rwanda (ICTR) and presumably the reward will expire at the end of 2008.
Brother please! Just came across this story - which at first I thought was from the the Onion or some satire website. But it appears to be a true story – that the wreckage of a six-seater aircraft has been found in Cameroon three months after it crashed. So should we be greatful that the KQ crash site was found within 48 hours?
Money go round: Even as some of the larger pyramid schemes are experiencing cash flow problems, smaller ones are still attracting new investors. In the newspapers every day there are more schemes in the works listed in the classified sections under business opportunity – all offering 16 – 20% returns per month, just for investing a small amount for a weeks.
Real estate The Kenya anti corruption authority (KACA) is seeking land in milimani, upper hill, kilimani or wastelands, presumably to set up a new office building. Lots sought should be 2 to 5 acres in size, close to major road and details should be sent to the Director by June 14.
Mining
- On J7 July at the Msambweni divisional office, a case will be heard between Simon Ndungu Karanja vs. Tiomin over his 1.9 ha piece of land
- Gippsland offshore petroleum of Australia is doing an geophysical survey of the Kenya coast (kipini area, ungama bay)
- Tile & carpet center are prospecting for carbon dioxide in (Kereita forest) of Kiambu district
- Oil giant Halliburton is moving is headquarters from Houston to Dubai!
Getting a story straight: One way of getting your story out through the media is to buy space and have your statement run exactly as you mean it and straight to the public - and there are two recent instances of that.
Street Lights: First is by the CEO of Adopt-A-Light Esther Passaris who launched her transformed street lighting crusade into an anti-poverty and anti-corruption vehicle that may lead her to being the next mayor of Nairobi.
This comes after the City council of Nairobi disowned the contract they had with her company and advertised for other companies to fulfill outdoor lighting & advertising functions which were had been exclusively done by Adopt a light.
What’s in your water bottle?: The second statement is a concerned water expert who is worried that Kenyans may not understand the different types of bottled water being sold - drinking water, natural mineral water, mineral water, carbonated water etc. - and that water bottling companies are being liberal with the advertising truth. He writes that natural mineral water is bottled at source, and with no chemical treatment, which is an expensive process - and he doubts that it is possible for a company actually producing such water, can sell it at the same price as drinking water. I.e. some of the companies are making false claims on their water bottles. He also cautions users to check the amount of fluorine in bottled water as it can lead to bad teeth and bone disease (Should not be more than 1.5mg per litre)
Do they work?: Of course the media love a story waged on their papers and companies such as Kakuzi, Portland cement, Kenya pipeline, Nzoia Sugar and other companies have all bought space (in more than one newspaper) to run statements, usually denying allegations of financial impropriety. There was even an infamous statement defending Anglo Leasing a few years ago.
Esther Passaris took out 2 page advertisements in both the Sunday Nation and Sunday Standard – probably at a total cost of Kshs 1.5 million (840,000 for the Nation, and over 600,000 for the standard)
The media is happy because these statements add to advertising revenue and often lead to other statements and form a base for them to tackle stories that they may have been hesitant to delve into. IMHO, it is unwise for corporations to place such self-serving advertisements especially to deny allegations – the better thing is to lie low and let the bad press (negative stories) pass, plant a few trees & build schools (CSR is good first aid for a scandal wound), answer questions from regulators or authorities – but don’t splash your story in the media!
(See past PR statements by De La Rue and Italians in Malindi.
Communications Wananchi has applied for a data carrier network operator - DCNO license - joining other firms such as KDN, Simbanet, Telkom, UUNET and Access Kenya.
Bounty Hunter: In a Ugandan newspaper, I came across an article (copy here) about the search for Felicien Kabuga who is wanted for his role in the 1994 Rwanda genocide. The article had more depth than any story I have read in any Kenyan paper (fear of libel laws perhaps), but what continues to amaze me is that despite almost every literate urban Kenyan knowing about the search, a reward on offer of $5m (down to Kshs 335 million at current exchange rate), recent photos of Kabuga that the Nation published a few months ago, and significant evidence that he spends a great deal of time in Kenya – no one (his friends & associates) cares enough, for posterity, or for the reward, to turn this guy in. And now there’s a deadline - as the mandate for the International Criminal Tribunal for Rwanda (ICTR) and presumably the reward will expire at the end of 2008.
Brother please! Just came across this story - which at first I thought was from the the Onion or some satire website. But it appears to be a true story – that the wreckage of a six-seater aircraft has been found in Cameroon three months after it crashed. So should we be greatful that the KQ crash site was found within 48 hours?
Money go round: Even as some of the larger pyramid schemes are experiencing cash flow problems, smaller ones are still attracting new investors. In the newspapers every day there are more schemes in the works listed in the classified sections under business opportunity – all offering 16 – 20% returns per month, just for investing a small amount for a weeks.
Real estate The Kenya anti corruption authority (KACA) is seeking land in milimani, upper hill, kilimani or wastelands, presumably to set up a new office building. Lots sought should be 2 to 5 acres in size, close to major road and details should be sent to the Director by June 14.
Mining
- On J7 July at the Msambweni divisional office, a case will be heard between Simon Ndungu Karanja vs. Tiomin over his 1.9 ha piece of land
- Gippsland offshore petroleum of Australia is doing an geophysical survey of the Kenya coast (kipini area, ungama bay)
- Tile & carpet center are prospecting for carbon dioxide in (Kereita forest) of Kiambu district
- Oil giant Halliburton is moving is headquarters from Houston to Dubai!
Saturday, May 19, 2007
Kampala expense tab
Uganda Securities Exchange
Where are my Stanbic shares today?
How much did a week in Uganda cost?
- Hotels (73%) are the one expensive item about the country. There is a commonwealth heads of government (CHOGUM) summit coming up later this year and there are major investments all geared towards that including new hotels coming up, sprucing up the town, and other investments to carter to VIP’s. Hotels in the Kampala CBD range from nice small $40 ones to $150 at Speke and Grand Imperial, to higher at the Sheraton and new Serena.
- Newspapers (1.38%). There's the New vision, Monitor (owned by NMG) and Red Pepper which has evolved from a racy tabloid to a more respectable daily newspaper that is sold alongside the other two. Also, at around 3 PM each afternoon, the Daily Nation and Standard from Kenya can be bought outside the main Barclays Bank building in town
- Internet (1.68%). Cyber cafes are plenty around despite the electricity mini crisis. Most charge about 1/= (UG 25/=) per minute.
- Telephone (1.66%) You can use your Safaricom or Celtel lines as usual here. But for Safaricom, air time cards are only found at some MTN shops and are sold at about 35% extra. i.e. buy a 100 shilling card for 136 shillings equivalent. Seasoned travellers are either post-paid customers, or buy enough cards before they leave Kenya
- Meals & Entertainment. (8%) Food is relatively cheap compared to what we pay in Kenya even at places like Steers and Pizza Inn. Also included Spiderman at Garden City Mall (an upscale mall with the local Uchumi supermarket), rugby at Kyadondo, and a lecture series event.
- Gifts (8.61%) . Mostly clothes from the equivalent of Masai Market
- Transport (4.1%). Somewhere there is taxi to Entebbe airport (40km away for about Kshs. 2,000) but most getting around Kampala is on the back of a motorbike and dashing to your destination. At first it was scary, but you get used to it as it’s the fastest way to get around town as they squeeze through the city’s traffic jams. But they can be dangerous and someone told me there are a couple of accidents a day, some fatal – with the driver abandoning his passenger and bike on the spot. The only faster way to get through town is in a VIP motorcade (the President’s convoy is a sight to see) - Personal items 1.59%
- Other expenses 0.15%
Total expense: about 2 million Uganda shillings or US 1,200 or Kshs 80,000
- The one remarkable thing about Kampala is the level of safety - security is assured. Whereas in Nairobi you get worried about being out past 6PM and on some streets any time of the day for and are always on the lookout for phone snatchers, pick pockets or armed thugs, here there are no worries. The fact that all watchmen (shops, banks) have guns may be a factor, but a country that has gone through years of war has no tolerance for violence. With all the guns around, police are super-armed (as are VIP mototcades).
- This is also a country where you can encounter a wedding convoy with the bridal party riding in four humvees!
Jobs
Jobs from the Kenyan daily papers this week
Fund raising & communication manager at Action Aid. Apply to actionaidsomaliland@actionaid.org by 31/5
Akamba bus: General Manager, chief finance officer. Apply to mushtaqk@akambabus.com by 31/5
Barclays: Branch managers, branch coordinators, customer advisor, and local business advisor. Apply to the retail expansion program, market branch 30018-00200 by 25/5
Equity Bank: Business growth & development manager, operations manager, credit manager. Apply to jobs@equitybank.co.ke 31/5
Area sales manager at Eveready. Apply to asm@eveready.co.ke by 25/5
Flashcom: Finance manager, sales manager, network engineer. Apply to recruitment@flashcom.co.ke by 4/6
Kenya Land Alliance: network capacity building officer, assistant accountant. Apply to kla@africaonline.co.ke by 25/5
National Council for Law Reporting law reporter, assistant law reporter (2), systems administrator, web developer (2), proof reader (2), publishing assistant.
Apply online by 22/6
Pricewaterhousecoopers: human capital manager, head of marketing & communications. Apply to recruitment.ke@ke.pwc.com by 1/6
How much did a week in Uganda cost?
- Hotels (73%) are the one expensive item about the country. There is a commonwealth heads of government (CHOGUM) summit coming up later this year and there are major investments all geared towards that including new hotels coming up, sprucing up the town, and other investments to carter to VIP’s. Hotels in the Kampala CBD range from nice small $40 ones to $150 at Speke and Grand Imperial, to higher at the Sheraton and new Serena.
- Newspapers (1.38%). There's the New vision, Monitor (owned by NMG) and Red Pepper which has evolved from a racy tabloid to a more respectable daily newspaper that is sold alongside the other two. Also, at around 3 PM each afternoon, the Daily Nation and Standard from Kenya can be bought outside the main Barclays Bank building in town
- Internet (1.68%). Cyber cafes are plenty around despite the electricity mini crisis. Most charge about 1/= (UG 25/=) per minute.
- Telephone (1.66%) You can use your Safaricom or Celtel lines as usual here. But for Safaricom, air time cards are only found at some MTN shops and are sold at about 35% extra. i.e. buy a 100 shilling card for 136 shillings equivalent. Seasoned travellers are either post-paid customers, or buy enough cards before they leave Kenya
- Meals & Entertainment. (8%) Food is relatively cheap compared to what we pay in Kenya even at places like Steers and Pizza Inn. Also included Spiderman at Garden City Mall (an upscale mall with the local Uchumi supermarket), rugby at Kyadondo, and a lecture series event.
- Gifts (8.61%) . Mostly clothes from the equivalent of Masai Market
- Transport (4.1%). Somewhere there is taxi to Entebbe airport (40km away for about Kshs. 2,000) but most getting around Kampala is on the back of a motorbike and dashing to your destination. At first it was scary, but you get used to it as it’s the fastest way to get around town as they squeeze through the city’s traffic jams. But they can be dangerous and someone told me there are a couple of accidents a day, some fatal – with the driver abandoning his passenger and bike on the spot. The only faster way to get through town is in a VIP motorcade (the President’s convoy is a sight to see) - Personal items 1.59%
- Other expenses 0.15%
Total expense: about 2 million Uganda shillings or US 1,200 or Kshs 80,000
- The one remarkable thing about Kampala is the level of safety - security is assured. Whereas in Nairobi you get worried about being out past 6PM and on some streets any time of the day for and are always on the lookout for phone snatchers, pick pockets or armed thugs, here there are no worries. The fact that all watchmen (shops, banks) have guns may be a factor, but a country that has gone through years of war has no tolerance for violence. With all the guns around, police are super-armed (as are VIP mototcades).
- This is also a country where you can encounter a wedding convoy with the bridal party riding in four humvees!
Jobs
Jobs from the Kenyan daily papers this week
Fund raising & communication manager at Action Aid. Apply to actionaidsomaliland@actionaid.org by 31/5
Akamba bus: General Manager, chief finance officer. Apply to mushtaqk@akambabus.com by 31/5
Barclays: Branch managers, branch coordinators, customer advisor, and local business advisor. Apply to the retail expansion program, market branch 30018-00200 by 25/5
Equity Bank: Business growth & development manager, operations manager, credit manager. Apply to jobs@equitybank.co.ke 31/5
Area sales manager at Eveready. Apply to asm@eveready.co.ke by 25/5
Flashcom: Finance manager, sales manager, network engineer. Apply to recruitment@flashcom.co.ke by 4/6
Kenya Land Alliance: network capacity building officer, assistant accountant. Apply to kla@africaonline.co.ke by 25/5
National Council for Law Reporting law reporter, assistant law reporter (2), systems administrator, web developer (2), proof reader (2), publishing assistant.
Apply online by 22/6
Pricewaterhousecoopers: human capital manager, head of marketing & communications. Apply to recruitment.ke@ke.pwc.com by 1/6
Thursday, May 17, 2007
Eye on media
There's a new magazine on the streets called ET - or Expression Today edited by David Makali that takes alook at happenings in the media industry.
- Nation: A look back at W. Kiboro’s tenure, the bungled staff retrenchment program that led to internet e-mail & rumours, how NMG got TV licence from a reluctant President Moi, challenges faced in launching the business daily and an indepth look at the problems they have faced with staff in Tanzania and a TV licence in Uganda
- Standard How KTN has slipped behind NTV in latest TV
rankings (from Steadman), why Katherine Kasavuli, Swaleh Mdoe, and Louis Otieno left and the staff revolt that followed, rumor of interest from Transcentury or foreign investors, a quote by Kwamchetsi Makokha on how the standard shareholders brought in dream team (including himself) to spruce it up for a sale. But once the paper was
turned round, they decided not to sell it anymore - and got rid of the dream team
got rid of the dream team.
- Royal media: management triumph over editorial desk has handciapped the Leader newspaper
- Kenya Times: Ruto takeover being rebuffed
- KISS newspaper - what it's outlook & potential
- KBC interference and cash flow problems
- Business magazine Market intelligence is no more
- Other media issues like poor staff pay at the Nation, how financial muscle (Uchumi, Samuel Gichuru & KCB) gets negative stories killed in the editorial room, and recap of the Artur raid saga.
It's a great read for 100/=
- Nation: A look back at W. Kiboro’s tenure, the bungled staff retrenchment program that led to internet e-mail & rumours, how NMG got TV licence from a reluctant President Moi, challenges faced in launching the business daily and an indepth look at the problems they have faced with staff in Tanzania and a TV licence in Uganda
- Standard How KTN has slipped behind NTV in latest TV
rankings (from Steadman), why Katherine Kasavuli, Swaleh Mdoe, and Louis Otieno left and the staff revolt that followed, rumor of interest from Transcentury or foreign investors, a quote by Kwamchetsi Makokha on how the standard shareholders brought in dream team (including himself) to spruce it up for a sale. But once the paper was
turned round, they decided not to sell it anymore - and got rid of the dream team
got rid of the dream team.
- Royal media: management triumph over editorial desk has handciapped the Leader newspaper
- Kenya Times: Ruto takeover being rebuffed
- KISS newspaper - what it's outlook & potential
- KBC interference and cash flow problems
- Business magazine Market intelligence is no more
- Other media issues like poor staff pay at the Nation, how financial muscle (Uchumi, Samuel Gichuru & KCB) gets negative stories killed in the editorial room, and recap of the Artur raid saga.
It's a great read for 100/=
NIC Bank AGM
The 2007 NIC Bank AGM was held on May 16 2007 at the Intercontinental Hotel
Who's the man?
The Chairman, Mr. JPM Ndegwa, was able to handle most questions and diffuse tense moments and awkward (not difficult) questions with careful answers and occasional jokes. He kept reminding shareholders to ask serious, not peripheral questions after the first question was – how can the deputy chairman, be older then the chairman? – answer was deputy is not my successor, he only chairs meeting when I'm away
Shareholder questions
AGM’s are quite routine except for shareholder interaction & questions or if there is special business to discuss, or multiple applicants for director seats such as as Kenya Airways or KCB
Dividends:
- Questions (Q) What are unclaimed? What happens to them? Answer (A) - These are cheques yet to be banked, but which NIC has to hold for about 12 in case shareholders or their dependants show up. However after the budget last year, unclaimed dividends will eventually be transferred to the CMA investor compensation fund.
- Earnings per share growing, but dividend per share still a huge way behind. A – Growth in dividends is prudential, NIC can't pay out 100% of earnings as dividends, and it also has to build up reserves.
- Q; Too many taxes on dividends A - Take it up with the government
- Q; Shareholders without bank accounts have trouble cashing cheques A – Chairman said it’s high time everyone got a bank account, and stop carrying cash around which is dangerous
- Q; shareholder who has bought shares several time gets 3 invitations to AGM and 3 small dividend cheques (and has to pay for each to clear) A - Chairman said he should check that all the shares were immobilized in the same CDS account which should consolidate all the shares
- Q; Why no bonus shares? A - Bonus shares do not increase shareholder wealth, only divide it more times. But it’s popular now, so they may consider it. But for now, if you want more shares, buy more
- Q; Why give t-shirts, don’t want them and want more shares instead A - Chairman answered it was a gift/token of appreciation to those who show up to do the business of the AGM. Added that it was actually a nice pullover, which he would appreciate over the next year (unlike dividend which is only used once)
NPA Q - NPA’s up over the last 5 years, what is the bank doing about them? A - NPA's are actually down over last 5 years. These are actually prudent provisions by NIC rather than lost money which the bank goes after aggressively. In fact since year end (2006) statement were published and 1st quarter (2007) results published last year, this figure has reduced by another 300 million shillings
Growth plans to sustain profit.? A - New NIC capital division will engage in commercial paper and bond activity which does not require lending. Also careful expansion into new branches. Nakuru branch was opened to support extensive asset finance business in the region. Also new branches at Westlands and the Junction (Dagoretti) are already profitable
Costs Q - Staff costs up significantly but staff numbers relatively unchanged A - new mangers hired to lead the bank into new business. This has been successful as NIC has grown 4 fold in last 5 years. Also union demands have meant bank increase staff salaries
CSR: Q - the bank's corporate social responsibility (CSR) projects seem to benefit only whites (mzungus as seen by the picture in the annual report A - that is not correct projects benefit all Kenyans. The bank has focused on the environment and education which benefit all Kenyans
Why not support AIDS war? A – Bank has supported Nyumbani Home and has a staff HIV policy but focus this year is on environment and education
Hot button issue
Q - Management of the Bank not representative of Kenya as they all come from one region and the wealth needs to be spread around the country got some generous applause A – This is a company not a political forum. All managers are hired on merit. The CEO position was widely advertised (nationally & internationally) – they got the best man, and the results speak for themselves. Resources (dividends) will go to the areas of people who buy shares in the company got even greater applause
AGM Goodies: NIC half-sweater, Intercontinental lunch box (one rib, chicken drumstick, soda, spring roll, mini pizza, samosa, apple, cake slice)
Who's the man?
The Chairman, Mr. JPM Ndegwa, was able to handle most questions and diffuse tense moments and awkward (not difficult) questions with careful answers and occasional jokes. He kept reminding shareholders to ask serious, not peripheral questions after the first question was – how can the deputy chairman, be older then the chairman? – answer was deputy is not my successor, he only chairs meeting when I'm away
Shareholder questions
AGM’s are quite routine except for shareholder interaction & questions or if there is special business to discuss, or multiple applicants for director seats such as as Kenya Airways or KCB
Dividends:
- Questions (Q) What are unclaimed? What happens to them? Answer (A) - These are cheques yet to be banked, but which NIC has to hold for about 12 in case shareholders or their dependants show up. However after the budget last year, unclaimed dividends will eventually be transferred to the CMA investor compensation fund.
- Earnings per share growing, but dividend per share still a huge way behind. A – Growth in dividends is prudential, NIC can't pay out 100% of earnings as dividends, and it also has to build up reserves.
- Q; Too many taxes on dividends A - Take it up with the government
- Q; Shareholders without bank accounts have trouble cashing cheques A – Chairman said it’s high time everyone got a bank account, and stop carrying cash around which is dangerous
- Q; shareholder who has bought shares several time gets 3 invitations to AGM and 3 small dividend cheques (and has to pay for each to clear) A - Chairman said he should check that all the shares were immobilized in the same CDS account which should consolidate all the shares
- Q; Why no bonus shares? A - Bonus shares do not increase shareholder wealth, only divide it more times. But it’s popular now, so they may consider it. But for now, if you want more shares, buy more
- Q; Why give t-shirts, don’t want them and want more shares instead A - Chairman answered it was a gift/token of appreciation to those who show up to do the business of the AGM. Added that it was actually a nice pullover, which he would appreciate over the next year (unlike dividend which is only used once)
NPA Q - NPA’s up over the last 5 years, what is the bank doing about them? A - NPA's are actually down over last 5 years. These are actually prudent provisions by NIC rather than lost money which the bank goes after aggressively. In fact since year end (2006) statement were published and 1st quarter (2007) results published last year, this figure has reduced by another 300 million shillings
Growth plans to sustain profit.? A - New NIC capital division will engage in commercial paper and bond activity which does not require lending. Also careful expansion into new branches. Nakuru branch was opened to support extensive asset finance business in the region. Also new branches at Westlands and the Junction (Dagoretti) are already profitable
Costs Q - Staff costs up significantly but staff numbers relatively unchanged A - new mangers hired to lead the bank into new business. This has been successful as NIC has grown 4 fold in last 5 years. Also union demands have meant bank increase staff salaries
CSR: Q - the bank's corporate social responsibility (CSR) projects seem to benefit only whites (mzungus as seen by the picture in the annual report A - that is not correct projects benefit all Kenyans. The bank has focused on the environment and education which benefit all Kenyans
Why not support AIDS war? A – Bank has supported Nyumbani Home and has a staff HIV policy but focus this year is on environment and education
Hot button issue
Q - Management of the Bank not representative of Kenya as they all come from one region and the wealth needs to be spread around the country got some generous applause A – This is a company not a political forum. All managers are hired on merit. The CEO position was widely advertised (nationally & internationally) – they got the best man, and the results speak for themselves. Resources (dividends) will go to the areas of people who buy shares in the company got even greater applause
AGM Goodies: NIC half-sweater, Intercontinental lunch box (one rib, chicken drumstick, soda, spring roll, mini pizza, samosa, apple, cake slice)
Tuesday, May 15, 2007
History Repeats
It is now acknowledged that commercial banks have put the ghost of bad debts behind them and have moved on to new clean lending books. However a lot of the decline in non-performing assets can be attributed to an increase in the overall loan book (not really a decline)
Also, the future may not be without a repeat if you fast forward two years from now when a fraction of the unsecured loans being hawked at anyone with a pay slip now will likely have gone bad. With the passage of the in duplum rule banks have to cut their losses and begin collection efforts as soon as they realise a loan is in trouble.
But the courts are clogged and it is difficult to collect from unsecured loans as there are no assets to recover and where the amounts being pursued are not worth the legal cost in money and time.
Other recent happenings
- Diamond Trust (Kenya) to participate in rights issue of Diamond Trust Tanzanian where it owns 33%
- Equity bank growth getting super heated?
- Family Bank is Kenya’s newest bank
- Housing finance new product for first time homeowners
- Kenya Commercial Bank gets a new CEO
- Perennial loss maker Oriental bank (formerly Delphis) is on track for a profit this year following a restructuring deal at Miwani Sugar.
Also, the future may not be without a repeat if you fast forward two years from now when a fraction of the unsecured loans being hawked at anyone with a pay slip now will likely have gone bad. With the passage of the in duplum rule banks have to cut their losses and begin collection efforts as soon as they realise a loan is in trouble.
But the courts are clogged and it is difficult to collect from unsecured loans as there are no assets to recover and where the amounts being pursued are not worth the legal cost in money and time.
Other recent happenings
- Diamond Trust (Kenya) to participate in rights issue of Diamond Trust Tanzanian where it owns 33%
- Equity bank growth getting super heated?
- Family Bank is Kenya’s newest bank
- Housing finance new product for first time homeowners
- Kenya Commercial Bank gets a new CEO
- Perennial loss maker Oriental bank (formerly Delphis) is on track for a profit this year following a restructuring deal at Miwani Sugar.
Back to accounting school
Back in school there was new maths (though I forget what that was about) and now there's new accounts coming with no net income and replaces net profit with a total comprehensive income figure that includes gains and losses now kept in other parts of the financial statements such as currency and hedge fluctuations. It also combines the balance sheet and cash flow statements resulting in assets and liabilities being group together as operating, investing and financing categories.
Sunday, May 13, 2007
Tagged - KQ edition
Got tagged by Mwari which has happened before and I have given some answers.
I am still pre-occupied by the Kenya Airways plane crash so i have decided to find some aviation related answers for the tag. I have been a long time shareholder of the airline till this January. When I started actively buying shares, I bought several KQ at 11 and 12 shillings and later sold them at 24/= . I though they were undervalued at 11,was happy when they doubled and I sold, but I doubt if anyone could have foreseen the bull market that sent KQ shares on to 140 shillings in 2006 (see share regrets).
1. First thing is how much I love flying. As I said when previously tagged, put me on a plane anytime.
Lunch date I'd accept any day
2. My first Kenya Airways (KQ) flight I recall was about a week after the 1982 coup attempt. Family decided that a holiday was in order and so we took a KQ flight to Mombasa. It was a Fokker Friendship (F27) aircraft and in those days the route included a stop over in Malindi, before a short hop down the coastline, passing over hotels and so many tempting swimming pools on the way to Mombasa.
3. Next flight I recall was maybe in 1985 or 1986 – another Mombasa trip. It was supposed to depart Nairobi around mid-day, but the flight was delayed for mechanical, or some other reason (KQ was known to have such flight delays in those days). So we were delayed for about 5 hours till the next available aircraft was ready and wow it was a (then) brand new Airbus 310. I was so impressed, the plane was huge and quiet and I sat over the wing and marveled at the flap arrangements. (On another previous flight on an older 707, I had been shocked to see some greasy green sponge rags inside the engines as the plane braked on landing). Anyway, at the end of the A310 flight i was till in awe that I got to the terminal and realized that I still had my plastic soda cup (with the KQ logo on it) - which young me tried to give back to some of the airport people.
4. I once worked as an airport security guard/Marshall - you know checking for bombs, guns etc. It was a summer job during university and before 9/11, airport security was something not taken seriously - hijackings were a non-issue and no one (except some evil genius) could have foreseen endings to routine flights as we saw that day.
Anyway, airlines never took security seriously and outsourced it to the cheapest company possible - as you could see by the way the guards were treated. Almost any warm body who could pass a drug test got the job and on the first day, you got a uniform and were put straight on the job in training (but on 'probation' for a week - until your drug test results came through) . It was the lowest paying job in the airport (even less than McDonald's workers), but for for someone who loved being around planes, it was a great opportunity.
5. I am mystified by the so-called carbon credits, air miles, and plant trees for carbon emissions etc. movements. At the airport I worked at, about 90 – 95%% of the flights at the airport were small (737 type) aircraft flying local routes – as is probably the case at most European and American airports. So out of the hundreds of flights coming into a European airport on any given day, can even more than 1% of them be from Africa? So how do our vegetables and flowers get blamed / and taxed for harming the environment?
6. The worst flight I ever took was in a (4-seat) small plane from the coast to Nairobi (Wilson airport). We flew through a thunderstorm and the plane was tossed about like you would not believe – I thought I'd get sick and wished the flight would be over, or even turn round back to the coast. Also in the same way you're told to never go to a restaurant kitchen, sitting with a pilot of a small plane can scare anyone new to flying as you see the pure mechanics of flight. (The co-pilot seat was empty and observing the dials, rudder pedals and joystick move around was scary to as you wondered how this could be happening a few thousand feet up in the air) Such turbulence. is something I have never experienced on bigger planes such as a 737. There are dozens of flights in the air as you read this navigating through rain or snow storms or other bad weather safely. If an airport is unsafe (runway flooded or snowed), it is shut down and flights are forbidden to take off or land. But if it's open to fly, flights go on as usual. Pilots are trained for this and maybe the KQ investigation will prove me right that flying through a thunderstorm - while being uncomfortable for passengers, is not a dangerous activity.
7. Oh and the corporate blog opportunity i sought last year was with Kenya Airways. My pitch was not successful, but I must commend the way they have handled the aftermath of the accident so far. They are dealing with many anguished families, harassed airport official, bureaucrats, political busy bodies, snake oil salesmen(asking if the West African route is jinxed), safety engineers, shareholders, people skeptical of flying in Africa, and the flying public and each group requires a carefully tailored message.
That's the end of the tag, as most of the people I’d want to tag have already answered, All I ask is that they keep flying and enjoy the ride.
I am still pre-occupied by the Kenya Airways plane crash so i have decided to find some aviation related answers for the tag. I have been a long time shareholder of the airline till this January. When I started actively buying shares, I bought several KQ at 11 and 12 shillings and later sold them at 24/= . I though they were undervalued at 11,was happy when they doubled and I sold, but I doubt if anyone could have foreseen the bull market that sent KQ shares on to 140 shillings in 2006 (see share regrets).
1. First thing is how much I love flying. As I said when previously tagged, put me on a plane anytime.
2. My first Kenya Airways (KQ) flight I recall was about a week after the 1982 coup attempt. Family decided that a holiday was in order and so we took a KQ flight to Mombasa. It was a Fokker Friendship (F27) aircraft and in those days the route included a stop over in Malindi, before a short hop down the coastline, passing over hotels and so many tempting swimming pools on the way to Mombasa.
3. Next flight I recall was maybe in 1985 or 1986 – another Mombasa trip. It was supposed to depart Nairobi around mid-day, but the flight was delayed for mechanical, or some other reason (KQ was known to have such flight delays in those days). So we were delayed for about 5 hours till the next available aircraft was ready and wow it was a (then) brand new Airbus 310. I was so impressed, the plane was huge and quiet and I sat over the wing and marveled at the flap arrangements. (On another previous flight on an older 707, I had been shocked to see some greasy green sponge rags inside the engines as the plane braked on landing). Anyway, at the end of the A310 flight i was till in awe that I got to the terminal and realized that I still had my plastic soda cup (with the KQ logo on it) - which young me tried to give back to some of the airport people.
4. I once worked as an airport security guard/Marshall - you know checking for bombs, guns etc. It was a summer job during university and before 9/11, airport security was something not taken seriously - hijackings were a non-issue and no one (except some evil genius) could have foreseen endings to routine flights as we saw that day.
Anyway, airlines never took security seriously and outsourced it to the cheapest company possible - as you could see by the way the guards were treated. Almost any warm body who could pass a drug test got the job and on the first day, you got a uniform and were put straight on the job in training (but on 'probation' for a week - until your drug test results came through) . It was the lowest paying job in the airport (even less than McDonald's workers), but for for someone who loved being around planes, it was a great opportunity.
5. I am mystified by the so-called carbon credits, air miles, and plant trees for carbon emissions etc. movements. At the airport I worked at, about 90 – 95%% of the flights at the airport were small (737 type) aircraft flying local routes – as is probably the case at most European and American airports. So out of the hundreds of flights coming into a European airport on any given day, can even more than 1% of them be from Africa? So how do our vegetables and flowers get blamed / and taxed for harming the environment?
6. The worst flight I ever took was in a (4-seat) small plane from the coast to Nairobi (Wilson airport). We flew through a thunderstorm and the plane was tossed about like you would not believe – I thought I'd get sick and wished the flight would be over, or even turn round back to the coast. Also in the same way you're told to never go to a restaurant kitchen, sitting with a pilot of a small plane can scare anyone new to flying as you see the pure mechanics of flight. (The co-pilot seat was empty and observing the dials, rudder pedals and joystick move around was scary to as you wondered how this could be happening a few thousand feet up in the air) Such turbulence. is something I have never experienced on bigger planes such as a 737. There are dozens of flights in the air as you read this navigating through rain or snow storms or other bad weather safely. If an airport is unsafe (runway flooded or snowed), it is shut down and flights are forbidden to take off or land. But if it's open to fly, flights go on as usual. Pilots are trained for this and maybe the KQ investigation will prove me right that flying through a thunderstorm - while being uncomfortable for passengers, is not a dangerous activity.
7. Oh and the corporate blog opportunity i sought last year was with Kenya Airways. My pitch was not successful, but I must commend the way they have handled the aftermath of the accident so far. They are dealing with many anguished families, harassed airport official, bureaucrats, political busy bodies, snake oil salesmen(asking if the West African route is jinxed), safety engineers, shareholders, people skeptical of flying in Africa, and the flying public and each group requires a carefully tailored message.
That's the end of the tag, as most of the people I’d want to tag have already answered, All I ask is that they keep flying and enjoy the ride.
Jobs & opportunities May 13
Fund accountants at Alexander Forbes financial services (EA) . Apply to actuaries@aforbes.co.ke by 18/5
DCDM advisor services seeking high caliber individuals to work in audit, business advisory and corporate financial services. Apply to admin@dcdmkenya.com by 18/5
Apply online for dealer (treasury) at Family bank by 15/5
Housing finance relationship manager relationship officer, marketing officer. Apply to human.resources@housing.co.ke by 18/5
Program manager at the Institute of directors (Kenya) . Apply to info@iodkenya.co.ke by 23/5
Kenya Parliament: Seeking a director of information & research services (PSC 14) in charge of hansard, research, ICT, public relation & budget office. Apply by 31/5 to the secretary, parliamentary service commission 41842-00100 Nairobi
KPMG: Acknowledging Kenyan talent earlier this year was Haliburton, and this month it’s KPMG UAE that is seeking to Kenyan audit and financial advisory professionals to work in Muscat, Dubai, Abu Dhabi, Sharjah. Apply to ae-recruit@kpmg.com
Nation media group is seeking website designer feature writers and other positions.
Various at Safaricom including Forecasting Controller, Management Accountant - Product Analyst, Head of Retail, Head of Customer Management, Materials Inspection Officer – BSS & MW, Senior CRM System Developer, Business Intelligence Developer. Also Chief Business Development Officer and Chief Supply and Administration Officer for which you apply through PricewaterhouseCoopers at ess.ke@ke.pwc.com
business writing
Business plan opportunities found at Kenyan Pundit and PSD blog
DCDM advisor services seeking high caliber individuals to work in audit, business advisory and corporate financial services. Apply to admin@dcdmkenya.com by 18/5
Apply online for dealer (treasury) at Family bank by 15/5
Housing finance relationship manager relationship officer, marketing officer. Apply to human.resources@housing.co.ke by 18/5
Program manager at the Institute of directors (Kenya) . Apply to info@iodkenya.co.ke by 23/5
Kenya Parliament: Seeking a director of information & research services (PSC 14) in charge of hansard, research, ICT, public relation & budget office. Apply by 31/5 to the secretary, parliamentary service commission 41842-00100 Nairobi
KPMG: Acknowledging Kenyan talent earlier this year was Haliburton, and this month it’s KPMG UAE that is seeking to Kenyan audit and financial advisory professionals to work in Muscat, Dubai, Abu Dhabi, Sharjah. Apply to ae-recruit@kpmg.com
Nation media group is seeking website designer feature writers and other positions.
Various at Safaricom including Forecasting Controller, Management Accountant - Product Analyst, Head of Retail, Head of Customer Management, Materials Inspection Officer – BSS & MW, Senior CRM System Developer, Business Intelligence Developer. Also Chief Business Development Officer and Chief Supply and Administration Officer for which you apply through PricewaterhouseCoopers at ess.ke@ke.pwc.com
business writing
Business plan opportunities found at Kenyan Pundit and PSD blog
Wednesday, May 09, 2007
Nairobi Shares Portfolio – May 2007
Be a vulture
The Portfolio review is being done a week earlier than expected as I usually try and update six months from last review.
However, in keeping in sync with other blogger portfolios recently released by Odegle Nyang and Riba Capital, here it is:
Current portfolio
Diamond Trust
Express Kenya
Kenya Commercial Bank
Sameer Africa
Scangroup
Stanbic Uganda
Total Oil
* Uchumi (suspended)
What’s changed?
There are fewer shares and portfolio has less value than before as I sold more shares than I bought back.
In: Stanbic (Uganda), Total
Out: Crown Berger, Kenya Airways, Kengen
Increased: Diamond Trust (Rights)
Reduced: -
Dividends expected: D-Trust, Express, KCB, Scangroup, Total
Unexpected gains/losses: Express bonus share, KCB share split
New listings not taken on: Access Kenya, Mumias (Rights)
Best performer: Stanbic (Ug)
Worst Performer: Sameer Africa
Looking forward to: Kenya Airways, Safaricom IPO
Performance Summary: The Motley Fool advises that investors should beat the share index to consider their returns a success. The NSE 20 share index is down 10% in the last six months while my portfolio is down 13% from November 2006.
I sold Kenya Airways shares at around 120/= and for the first time my portfolio does not have KQ shares. If the price continues to drop, I expect to buy some shares in this great company in the coming days, before they announce their year end results - which should have been finalized, but may be delayed by post-Cameroon events.
The Portfolio review is being done a week earlier than expected as I usually try and update six months from last review.
However, in keeping in sync with other blogger portfolios recently released by Odegle Nyang and Riba Capital, here it is:
Current portfolio
Diamond Trust
Express Kenya
Kenya Commercial Bank
Sameer Africa
Scangroup
Stanbic Uganda
Total Oil
* Uchumi (suspended)
What’s changed?
There are fewer shares and portfolio has less value than before as I sold more shares than I bought back.
In: Stanbic (Uganda), Total
Out: Crown Berger, Kenya Airways, Kengen
Increased: Diamond Trust (Rights)
Reduced: -
Dividends expected: D-Trust, Express, KCB, Scangroup, Total
Unexpected gains/losses: Express bonus share, KCB share split
New listings not taken on: Access Kenya, Mumias (Rights)
Best performer: Stanbic (Ug)
Worst Performer: Sameer Africa
Looking forward to: Kenya Airways, Safaricom IPO
Performance Summary: The Motley Fool advises that investors should beat the share index to consider their returns a success. The NSE 20 share index is down 10% in the last six months while my portfolio is down 13% from November 2006.
I sold Kenya Airways shares at around 120/= and for the first time my portfolio does not have KQ shares. If the price continues to drop, I expect to buy some shares in this great company in the coming days, before they announce their year end results - which should have been finalized, but may be delayed by post-Cameroon events.
Monday, May 07, 2007
Plane Perspective – Part II
Adieu 5Y KYA
Part I
More pictures of the ill-fated aircraft
5Y-KYA, a 737-800, was leased aircraft from the Singapore Aircraft Leasing Enterprise (SALE) (now owned by the Bank of China). Why leased? At the airline's 2005 AGM management said that, with their strong financial footing, KQ was now able to lease new aircraft which confers many advantages over buying new aircraft for a rapidly expanding airline. The lease deal was signed in September 2005
The first new 737-800 was delivered in October 2006 to KQ directly from Boeing, the manufacturer and replaced smaller 737's on many of the airlines existing and new routes.
It was a larger aircraft with improved safety features. The aircraft (was) equipped with a Heads-Up Display (HUD) system that projects key navigational data directly in front of pilots, allowing for safer operation in difficult conditions such as inclement weather or problematic navigational terrain.
It is also no comfort to families and relatives of the passengers, but the tragedy could have been worse if the airline had used the usual, and larger, 767 aircraft that night.
Final word
Kenya Airways is expected to release its year end results at the end of the month, and the 3rd quarter results showed strong growth in Asia, Eastern African and an overall 13% growth on (non-Kenyan) Africa routes.
The company should be unaffected by the loss in the long term, nor should its share price. The leased aircraft will be immediately replaced and with proper & timely insurance response, careful PR management and investigation of the accident, the airline should pull through.
Part I
More pictures of the ill-fated aircraft
5Y-KYA, a 737-800, was leased aircraft from the Singapore Aircraft Leasing Enterprise (SALE) (now owned by the Bank of China). Why leased? At the airline's 2005 AGM management said that, with their strong financial footing, KQ was now able to lease new aircraft which confers many advantages over buying new aircraft for a rapidly expanding airline. The lease deal was signed in September 2005
The first new 737-800 was delivered in October 2006 to KQ directly from Boeing, the manufacturer and replaced smaller 737's on many of the airlines existing and new routes.
It was a larger aircraft with improved safety features. The aircraft (was) equipped with a Heads-Up Display (HUD) system that projects key navigational data directly in front of pilots, allowing for safer operation in difficult conditions such as inclement weather or problematic navigational terrain.
It is also no comfort to families and relatives of the passengers, but the tragedy could have been worse if the airline had used the usual, and larger, 767 aircraft that night.
Final word
Kenya Airways is expected to release its year end results at the end of the month, and the 3rd quarter results showed strong growth in Asia, Eastern African and an overall 13% growth on (non-Kenyan) Africa routes.
The company should be unaffected by the loss in the long term, nor should its share price. The leased aircraft will be immediately replaced and with proper & timely insurance response, careful PR management and investigation of the accident, the airline should pull through.
Sunday, May 06, 2007
Achieving a work- life balance
Rob Parsons, the renowned author, lawyer, and motivational speaker gave talk on work-life balance that people must achieve in order to be happy, productive, workers i.e. by balancing time between their families and their careers. Some of his pointers:
- There are no slow days. Don't ever say when you achieve you will sow done and devote time to your family once you achieve or attain A, B, or C. You will never slow down
- Don’t work so hard to give your children what you never had, that you forget to give them what you had
- Hire smart people (ala Richard Branson) – to give yourself time to think and remain creative
- No phone call is so important that it can't wait for ten minutes for you to finish attending to your family first.
- You’re not irreplaceable at work even if you think you are. Your company can and will likely go on and do very well without you.
- Do something meaningful that you’ve always wanted to do today - as you never know if it could be your last day or breath.
- More leading companies are acknowledging the importance of giving their employees sufficient time to attend to family matters i.e. achieve a work-life balance
- There are no slow days. Don't ever say when you achieve you will sow done and devote time to your family once you achieve or attain A, B, or C. You will never slow down
- Don’t work so hard to give your children what you never had, that you forget to give them what you had
- Hire smart people (ala Richard Branson) – to give yourself time to think and remain creative
- No phone call is so important that it can't wait for ten minutes for you to finish attending to your family first.
- You’re not irreplaceable at work even if you think you are. Your company can and will likely go on and do very well without you.
- Do something meaningful that you’ve always wanted to do today - as you never know if it could be your last day or breath.
- More leading companies are acknowledging the importance of giving their employees sufficient time to attend to family matters i.e. achieve a work-life balance
Saturday, May 05, 2007
Plane perspective
Condolences to all the family members of passengers and staff of the airline.
This is a tragic time, as are all plane crashes when they happen. This time, it has happened to Kenya Airways (KQ), an airline with an exemplary safety level.
I flew on KQ this week and will gladly fly with them tomorrow or any other day. It is an unpleasant fact of life that anything could happen to me - the next time I get into a car, light a match, walk onto a sports field, step into a bathtub, enter a building, or board a plane.
The question of air crashes in Africa should not arise - they happen all around the world. Yes, there are bad airlines, but it is not an African thing. Poorly run airlines do not last for very long as passengers avoid them (unless they have no alternative) and authorities (should) step in and shut them down. The (unfortunate) passenger list produced by KQ is an endorsement of the high regard that other nations have for the airline.
Plane crashes should never happen and when they do, one plane crash should not be a matter of concern. It is only when an airline, or airport, or country has a series of avoidable crashes that the aviation world and public take notice and realize that’s something is wrong. In 2006, questions were asked about Nigeria and Indonesia) - and often old aircraft or unsafe regions are factors. The 737-800 was the newest aircraft at the airline which has continually upgraded its fleet to meet the highest standards of service and safety.
KQ should keep on flying high and remain the Pride of Africa
Plane I flew
This is a tragic time, as are all plane crashes when they happen. This time, it has happened to Kenya Airways (KQ), an airline with an exemplary safety level.
I flew on KQ this week and will gladly fly with them tomorrow or any other day. It is an unpleasant fact of life that anything could happen to me - the next time I get into a car, light a match, walk onto a sports field, step into a bathtub, enter a building, or board a plane.
The question of air crashes in Africa should not arise - they happen all around the world. Yes, there are bad airlines, but it is not an African thing. Poorly run airlines do not last for very long as passengers avoid them (unless they have no alternative) and authorities (should) step in and shut them down. The (unfortunate) passenger list produced by KQ is an endorsement of the high regard that other nations have for the airline.
Plane crashes should never happen and when they do, one plane crash should not be a matter of concern. It is only when an airline, or airport, or country has a series of avoidable crashes that the aviation world and public take notice and realize that’s something is wrong. In 2006, questions were asked about Nigeria and Indonesia) - and often old aircraft or unsafe regions are factors. The 737-800 was the newest aircraft at the airline which has continually upgraded its fleet to meet the highest standards of service and safety.
KQ should keep on flying high and remain the Pride of Africa
Thursday, May 03, 2007
Window on East Africa
East Africa biz news and bytes
Uganda
- Communities are already benefiting from oil exploration done by oil companies in Hoima and Bulisa regions.
- Government to audit/evaluate NGO's in the north with a view to weeding out briefcase organization, those with an anti-NRM (government) message, or harming the peace talks in Juba
- Simba (a nationwide telcom dealer with 22 shops in Kampala) has partnered with USAID to launch Simba cash a money transfer service available at its stores nation wide. It targets the rural poor who don’t have bank accounts and they can send as little as 10,000 shillings (Kshs. 400)
- Diesel shortage expected to ease following the clearance of four companies – Caltex, Kobil, Total and Tamoil to be allowed to ship diesel from Mombasa by trucks. Demand for diesel and petrol in Uganda has grown to exceed the capacity of the pipeline which reached Eldoret. Previously only shell was allowed to do this is it was supplying diesel for Agrekko's thermal energy project. The Kenya Revenue Authority has been blocking this move citing fears of illegal dumping of fuel in Kenya and had insisted that the companies should pay full taxes on fuel before they collect it at Mombasa to be refunded after they cross into Uganda, but the companies refused, claiming that KRA already owes them about $6 billion in unpaid refunds.
- From July 2, the Bank of Uganda will stop clearing cheques 20 million shillings (~Kshs. 800,000) thus requiring bank customers to use RTGS or EFT which are more efficient and less risky alternatives for large payments.
- Barclays to enhance its retail presence by purchasing Nile Bank for $120 million.
- Government plans to buy a new Gulfstream G5 (budgeted at $50m) for the President replacing the current G4 when it completes lease payments in November.
Uganda telephone companies may soon be required to share infrastructure (masts, switches, networks). There are 3 companies now (MTN, Celtel, Uganda telcom) and will soon be joined by a fourth (Hits to launch in November) and fifth.
- A bill covering the USE is before the cabinet which has been slow to approve papers/make decisions. This would allow setup of a CDS system here, and also eliminate capital gains tax for foreign investors (does that cover stanbic shares?)
- President Museveni (M7) frequently writes lengthy articles in the newspaper and comments on matters especially where he feels he has been misquouted. The First Lady has also taken to similar writing as well.
- AON has introduced medical cover for people living with HIV. It targets company employees in productive careers & life stages (35 – 44 years).
Tanzania
- Madonna in Malawi perhaps to adopt another baby?
- Kenyan businessmen at athi river, rongai and kiserian are colluding to lower the prices of livestock bought from Tanzanian livestock dealers
- Dar es Salaam university closed after students riot about plans to introduce cost sharing
- RVF on the increase in Dodoma and soon expected to breach Dar
- Tanzania breweries will build a factory that will use seawater to make beer. (This paper was published on March 31 – could it be an April fools teaser?)
- President Kikwete has a monthly state of the nation speech that is broadcast live on radio
- Plans are at an advance stage for a women’s commercial bank in Tanzania
- A newspaper reports that the Tanzania tourism board quotes an ABC news program that identifies the Serengeti Park as one of, and - only African location – among the seven wonders of the world.
Kenya
It's amazing what you discover about Kenya in other countries newspapers
- Kenya Airways shelved plans to fly to the US owing to safety & security issues. Also the airline will in May receive two leased Embraer jets to replace the Saab 340's turboprops.
- Mobile phone taxes will be lowered in the budget this year
- Nakumatt to open stores in Kigali, Dar and Kampala
- NSE to start providing live prices to SNBC, and maybe even reuters and bloomberg one of the benefits of automate trading introduced in 2006 is that they will be able to provide instant and delayed reports, in addition to the current end of day and weekly reports.
- The Nation has started publishing reports from the Kenya gazette, a great, and for too long underutilized, source, of inside information on the government.
- GTV a satellite TV service comes to Kenya and Uganda next month as a low cost rival to DsTV
Uganda
- Communities are already benefiting from oil exploration done by oil companies in Hoima and Bulisa regions.
- Government to audit/evaluate NGO's in the north with a view to weeding out briefcase organization, those with an anti-NRM (government) message, or harming the peace talks in Juba
- Simba (a nationwide telcom dealer with 22 shops in Kampala) has partnered with USAID to launch Simba cash a money transfer service available at its stores nation wide. It targets the rural poor who don’t have bank accounts and they can send as little as 10,000 shillings (Kshs. 400)
- Diesel shortage expected to ease following the clearance of four companies – Caltex, Kobil, Total and Tamoil to be allowed to ship diesel from Mombasa by trucks. Demand for diesel and petrol in Uganda has grown to exceed the capacity of the pipeline which reached Eldoret. Previously only shell was allowed to do this is it was supplying diesel for Agrekko's thermal energy project. The Kenya Revenue Authority has been blocking this move citing fears of illegal dumping of fuel in Kenya and had insisted that the companies should pay full taxes on fuel before they collect it at Mombasa to be refunded after they cross into Uganda, but the companies refused, claiming that KRA already owes them about $6 billion in unpaid refunds.
- From July 2, the Bank of Uganda will stop clearing cheques 20 million shillings (~Kshs. 800,000) thus requiring bank customers to use RTGS or EFT which are more efficient and less risky alternatives for large payments.
- Barclays to enhance its retail presence by purchasing Nile Bank for $120 million.
- Government plans to buy a new Gulfstream G5 (budgeted at $50m) for the President replacing the current G4 when it completes lease payments in November.
Uganda telephone companies may soon be required to share infrastructure (masts, switches, networks). There are 3 companies now (MTN, Celtel, Uganda telcom) and will soon be joined by a fourth (Hits to launch in November) and fifth.
- A bill covering the USE is before the cabinet which has been slow to approve papers/make decisions. This would allow setup of a CDS system here, and also eliminate capital gains tax for foreign investors (does that cover stanbic shares?)
- President Museveni (M7) frequently writes lengthy articles in the newspaper and comments on matters especially where he feels he has been misquouted. The First Lady has also taken to similar writing as well.
- AON has introduced medical cover for people living with HIV. It targets company employees in productive careers & life stages (35 – 44 years).
Tanzania
- Madonna in Malawi perhaps to adopt another baby?
- Kenyan businessmen at athi river, rongai and kiserian are colluding to lower the prices of livestock bought from Tanzanian livestock dealers
- Dar es Salaam university closed after students riot about plans to introduce cost sharing
- RVF on the increase in Dodoma and soon expected to breach Dar
- Tanzania breweries will build a factory that will use seawater to make beer. (This paper was published on March 31 – could it be an April fools teaser?)
- President Kikwete has a monthly state of the nation speech that is broadcast live on radio
- Plans are at an advance stage for a women’s commercial bank in Tanzania
- A newspaper reports that the Tanzania tourism board quotes an ABC news program that identifies the Serengeti Park as one of, and - only African location – among the seven wonders of the world.
Kenya
It's amazing what you discover about Kenya in other countries newspapers
- Kenya Airways shelved plans to fly to the US owing to safety & security issues. Also the airline will in May receive two leased Embraer jets to replace the Saab 340's turboprops.
- Mobile phone taxes will be lowered in the budget this year
- Nakumatt to open stores in Kigali, Dar and Kampala
- NSE to start providing live prices to SNBC, and maybe even reuters and bloomberg one of the benefits of automate trading introduced in 2006 is that they will be able to provide instant and delayed reports, in addition to the current end of day and weekly reports.
- The Nation has started publishing reports from the Kenya gazette, a great, and for too long underutilized, source, of inside information on the government.
- GTV a satellite TV service comes to Kenya and Uganda next month as a low cost rival to DsTV
Monday, April 30, 2007
VC Fund update
More on the $40 million VC fund set up by the Africa venture capital association and East African development. It will invest $100,000 to $2 million in SME's for expansion & modernization, as well as start-ups led by exceptionally qualified entrepreneurs. Advantages of getting funds is that unlike bank loans, you don't have to pledge assets or incur subsequent loan repayments
Jobs
The Africa Development Bank is currently accepting applications for its Young Professional Program (YPP). Details at their site and D/L is 10/5.
Celtel: Product development manager (Comm-mkt-02/07), Product developer (Comm-mkt-03/07). Apply to hr@ke.celtel.com by 4/5
Kenya Airways: Manager – hub & airport systems (I/065/04-07), Revenue management systems administrator (C/066/04-07)
Apply to the group HRD 19002 Nairobi by 14/5
Foundation manager at KCB. Apply to recruitment@kcb.co.ke by 9/5
Safaricom: Head of Retail, Head of Customer Management, Materials Inspection Officer, Senior CRM System Developer, Business Intelligence Developer.
Fund manager at the above mentioned VC fund. Apply to EADB@avcanet.com by 14/5
The Young Professionals Program (YPP) of the World Bank. apply online by 15/7
Jobs
The Africa Development Bank is currently accepting applications for its Young Professional Program (YPP). Details at their site and D/L is 10/5.
Celtel: Product development manager (Comm-mkt-02/07), Product developer (Comm-mkt-03/07). Apply to hr@ke.celtel.com by 4/5
Kenya Airways: Manager – hub & airport systems (I/065/04-07), Revenue management systems administrator (C/066/04-07)
Apply to the group HRD 19002 Nairobi by 14/5
Foundation manager at KCB. Apply to recruitment@kcb.co.ke by 9/5
Safaricom: Head of Retail, Head of Customer Management, Materials Inspection Officer, Senior CRM System Developer, Business Intelligence Developer.
Fund manager at the above mentioned VC fund. Apply to EADB@avcanet.com by 14/5
The Young Professionals Program (YPP) of the World Bank. apply online by 15/7
Travel with Safaricom
Safaricom has hooked up with MTN in Uganda (and Vodacom in Tanzania to combat Celtel’s East African no roaming package) to enable their customers to use their phones kama kawaida in East Africa as well and the service works great.
With MTN you even have get to enjoy their cool location prompt that tells you where you are with your phone e.g. Entebbe avenue, constitution street, Bumbu, Luwum street, Speke, etc. that scared safaricom customers one day in 2006.
Only problem with Safaricom is that their cards are very difficult to find and sold at very few locations. Only MTN stores sell them in Kampala and they are making a killing. A 500-shilling card goes for 16,300 shillings at about a 30% mark-up, while a 100-shilling card is priced over by about 36%. Still it’s worth the convenience of having affordable access to your contacts and messages.
With MTN you even have get to enjoy their cool location prompt that tells you where you are with your phone e.g. Entebbe avenue, constitution street, Bumbu, Luwum street, Speke, etc. that scared safaricom customers one day in 2006.
Only problem with Safaricom is that their cards are very difficult to find and sold at very few locations. Only MTN stores sell them in Kampala and they are making a killing. A 500-shilling card goes for 16,300 shillings at about a 30% mark-up, while a 100-shilling card is priced over by about 36%. Still it’s worth the convenience of having affordable access to your contacts and messages.
Friday, April 27, 2007
Stanbic apples & oranges
Standard Bank (of South Africa) operates as Stanbic in other parts of Africa.
Here’s a snapshot comparison of the 2006 financial results of Stanbic Kenya and Stanbic Uganda.
Stanbic Kenya is unlisted while several Kenyans participated in the 2006 Stanbic Uganda IPO which was relatively cheap owing to the exchange rate difference (25:1) between Kenya and Uganda. The Stanbic (UG) IPO was partly blamed for the performance of the Mumias (Kenya) rights issue whose uptake was judged to be average.
Merger talks between Stanbic (K) and CFC which is another locally listed Kenyan bank are at an advanced stage. So how do the bank’s compare?
Approximate figures in US$
Rank
Uganda Stanbic (1 in Uganda)
Kenya Stanbic (9 in Kenya)
CFC (10)
Assets
Uganda Stanbic $725 million
Kenya Stanbic 378 million
CFC 371 million
Deposits
Uganda Stanbic $513 million
Kenya Stanbic 289 million
CFC 271 million
Loans
Uganda Stanbic $195 million
Kenya Stanbic 166 million
CFC 220 million
Pre-tax Profits
Uganda Stanbic $32.3 million
Kenya Stanbic 13.4 million
CFC 9.9 million
Here’s a snapshot comparison of the 2006 financial results of Stanbic Kenya and Stanbic Uganda.
Stanbic Kenya is unlisted while several Kenyans participated in the 2006 Stanbic Uganda IPO which was relatively cheap owing to the exchange rate difference (25:1) between Kenya and Uganda. The Stanbic (UG) IPO was partly blamed for the performance of the Mumias (Kenya) rights issue whose uptake was judged to be average.
Merger talks between Stanbic (K) and CFC which is another locally listed Kenyan bank are at an advanced stage. So how do the bank’s compare?
Approximate figures in US$
Rank
Uganda Stanbic (1 in Uganda)
Kenya Stanbic (9 in Kenya)
CFC (10)
Assets
Uganda Stanbic $725 million
Kenya Stanbic 378 million
CFC 371 million
Deposits
Uganda Stanbic $513 million
Kenya Stanbic 289 million
CFC 271 million
Loans
Uganda Stanbic $195 million
Kenya Stanbic 166 million
CFC 220 million
Pre-tax Profits
Uganda Stanbic $32.3 million
Kenya Stanbic 13.4 million
CFC 9.9 million
You are not me
You know it’s time to change your bank when you have to line up before the bank doors open and are stuck in a barely moving line for the next 30 minutes after it opens - as the tellers are too few and the processing system is slow.
But that’s what you get for cheap banking especially with their foreign exchange dealing and processing charges so low & attractive.
But that’s what you get for cheap banking especially with their foreign exchange dealing and processing charges so low & attractive.
Running the Mara
The outcry from President Kibaki’s decision to return the Amboseli Park to the Masai community prior to the 2005 referendum was probably influenced by the impression that community was incompetent and would run down Amboseli reserve in no time. But the Masai Mara, Samburu, Baringo and other reserves are run by local communities and rather successfully – even from before independence.
Narok County Council: Said to be the richest council in the country, thanks largely to its stewardship of the Masai Mara. I can’t vouch for its financial efficiency but they have maintained the park well. They collects gate fees (no KWS smart cards here), undertake road repair with in the parks, approve construction/expansion of lodges/camps in the park and hires rangers to guard the animals and the surrounding forest. The revenue collected is meant to be shared among communities and the council also controls issuance of title deeds to the community with a subtle view to discouraging transfers to ‘outsiders.’
Roads: You need a true 4WD to get around the Mara which can get muddy and flodded when it rains. There is some serious road repair work going on, and roads inside the park are generally better than those leading to the park. However, I get the feeling that it doesn’t bother the tourists as much as it does locals (vehicle owners, hotel suppliers, tour operators) since it’s all part of their TIA experience.
Number to know :
5 – The number of airstrips in the Mara
4 - Types of hyaena exist – and that’s how it is spelt, not hyena
0 - number of lodges that will be constructed inside the Mara as the council feels it is too crowded. Hence new project are coming up along the fence or just outside the Mara.
More on property development at other parks
Narok County Council: Said to be the richest council in the country, thanks largely to its stewardship of the Masai Mara. I can’t vouch for its financial efficiency but they have maintained the park well. They collects gate fees (no KWS smart cards here), undertake road repair with in the parks, approve construction/expansion of lodges/camps in the park and hires rangers to guard the animals and the surrounding forest. The revenue collected is meant to be shared among communities and the council also controls issuance of title deeds to the community with a subtle view to discouraging transfers to ‘outsiders.’
Roads: You need a true 4WD to get around the Mara which can get muddy and flodded when it rains. There is some serious road repair work going on, and roads inside the park are generally better than those leading to the park. However, I get the feeling that it doesn’t bother the tourists as much as it does locals (vehicle owners, hotel suppliers, tour operators) since it’s all part of their TIA experience.
Number to know :
5 – The number of airstrips in the Mara
4 - Types of hyaena exist – and that’s how it is spelt, not hyena
0 - number of lodges that will be constructed inside the Mara as the council feels it is too crowded. Hence new project are coming up along the fence or just outside the Mara.
More on property development at other parks
New investment bank
NIC Bank will launch an investment bank under the banner of NIC Capital to offer financial advisory services.
Earlier: I&M - new custodian.
Earlier: I&M - new custodian.
Thursday, April 26, 2007
Reporting director performance
NIC Bank which has been recognized for corporate governance awards for financial reporting has now added a new level of director performance by publishing a scorecard of directors attendance of board and committee meetings during the year.
Director attendance is an important measure of their performance, and contribution to the company. They should also be measured by how many other boards they sit and their other executive commitments to determine if they add value to the company.
Director attendance is an important measure of their performance, and contribution to the company. They should also be measured by how many other boards they sit and their other executive commitments to determine if they add value to the company.
Wednesday, April 25, 2007
Neveready for Mara
This is a brief story about why there are no pictures to post from a trip to the latest wonder of the world - the Masai Mara
We were scheduled to leave very early one morning. So the night before, I went to the ATM withdraw some cash to buy some batteries for a digital camera. However, the ATM was acting up (no cash on Sunday night) and so I went to Uchumi with whatever cash I had left in my pocket. I didn't have enough for any of the alkaline batteries (about 230 shillings for 4 AA) and so I settled for some "super heavy duty" Eveready batteries.
Early in the trip, I started taking some pictures of road construction work around Narok area, but soon the low battery prompt began to blink at the corner. I ignored it, as the batteries were new, and continued on taking pictures.
At the gate of the Mara, that garden full of almost every significant animal found on the continent - the camera conked out. The last picture the camera I was able to take was of a group of Masai ladies dancing and trying to sell some beads to a minivan of tourists. So much for the super heavy duty batteries, which only lasted for about a dozen pictures.
Great Mara: Driving through the Mara (no game drives or searching for animals), we were able to see buffalo, zebra, giraffe, waterbuck, baboons, monitor lizard or crocodile (dived into the bush near river as soon as we approached), wildebeest, gazelle, warthog, and ostrich. The only ‘kill’ I saw was a secretary bird stomp a green snake and swallow it in about 3 seconds.
Also encountered, separately walking along the road was a hyena and a jackal, whose odd location could probably be attributed to tourists who had (illegally) thrown scraps of food at them. In addition, outside the park (which is not fenced), there were considerable herds of gazelle, wildebeest and zebra grazing close to herds of cattle watch over by Masai lads. There are no photos of these animals as I was neveready for the Mara.
Tourist economy/inflation: Back to the dead batteries. One peeve of domestic tourists is the inflated price of every day goods sold at (and around) hotels and resorts. The batteries I couldn’t buy at Uchumi for 230/= were being sold at a kiosk outside the park for 500 shillings and at 700/= at the hotel shop. Eventually I had to relent and buy them for 550/= at another shop we stopped at. These 100% mark-ups on the price of everyday items like toothpaste, slippers and batteries are a nuisance and should be cut down as the hotels/vendors don’t add any value to them.
We were scheduled to leave very early one morning. So the night before, I went to the ATM withdraw some cash to buy some batteries for a digital camera. However, the ATM was acting up (no cash on Sunday night) and so I went to Uchumi with whatever cash I had left in my pocket. I didn't have enough for any of the alkaline batteries (about 230 shillings for 4 AA) and so I settled for some "super heavy duty" Eveready batteries.
Early in the trip, I started taking some pictures of road construction work around Narok area, but soon the low battery prompt began to blink at the corner. I ignored it, as the batteries were new, and continued on taking pictures.
At the gate of the Mara, that garden full of almost every significant animal found on the continent - the camera conked out. The last picture the camera I was able to take was of a group of Masai ladies dancing and trying to sell some beads to a minivan of tourists. So much for the super heavy duty batteries, which only lasted for about a dozen pictures.
Great Mara: Driving through the Mara (no game drives or searching for animals), we were able to see buffalo, zebra, giraffe, waterbuck, baboons, monitor lizard or crocodile (dived into the bush near river as soon as we approached), wildebeest, gazelle, warthog, and ostrich. The only ‘kill’ I saw was a secretary bird stomp a green snake and swallow it in about 3 seconds.
Also encountered, separately walking along the road was a hyena and a jackal, whose odd location could probably be attributed to tourists who had (illegally) thrown scraps of food at them. In addition, outside the park (which is not fenced), there were considerable herds of gazelle, wildebeest and zebra grazing close to herds of cattle watch over by Masai lads. There are no photos of these animals as I was neveready for the Mara.
Tourist economy/inflation: Back to the dead batteries. One peeve of domestic tourists is the inflated price of every day goods sold at (and around) hotels and resorts. The batteries I couldn’t buy at Uchumi for 230/= were being sold at a kiosk outside the park for 500 shillings and at 700/= at the hotel shop. Eventually I had to relent and buy them for 550/= at another shop we stopped at. These 100% mark-ups on the price of everyday items like toothpaste, slippers and batteries are a nuisance and should be cut down as the hotels/vendors don’t add any value to them.
Sunday, April 22, 2007
Access Kenya IPO
IPO season is on again and this time its Access Kenya - a leading corporate ISP and telephony company.
Am yet to see the full prospectus, which should be an interesting read to see the trend of share capital and profit adjustment that is alluded to in the abbreviated prospectus published in the paper on Thursday – the day the IPO started.
The company has learnt from the Eveready listing and set out to limit shareholder numbers by setting a minimum investment for retail investors at a moderately high 50,000 shillings ($715).
Industry: The communications sector has so much happening now from - unified licences, the Wananchi ATC deal , Telkom SA/AfOL deal, Telkom Kenya re-engineering itself, EASSY vs. TEAMS cabling, fibre optics everywhere and of course Safaricom at the top of the food chain who have continually reinvested much of their record profits towards infrastructure expansion.
Investments in the sector are not cheap and with technology rapidly evolving, the 400 million shillings that will accrue to the company may not be enough for more than a few years at a company that starts off with a marginal balance sheet.
IPO results will be out in May and shares will be listed in June 2007.
Other opportunities
from the daily papers this week
Jobs
Coca Cola - East & Central Africa business unit: franchise marketing manager, hospitality manager, operations marketing representative, financial services manager financial accountant senior brand manage (2) revenue growth manager commercialization manage (2) strategy development manager, human recourse manager compensation & benefits manager quality improvement manager
Apprenticeships for mechanics at DT Dobie: applicants must be under 22 with good grades in maths, physics, English and apply in handwriting by 11/5 to DT Dobie Training Center p o box 30160-00200
Safaricom: head of customer management, head of retail. Apply to chro@safaricom.co.ke.
Soon you can dine in the skies as the Kenyatta International Conference Center has set out to revive its roof top revolving restaurant on the 27th & 28th floors of the building.
Am yet to see the full prospectus, which should be an interesting read to see the trend of share capital and profit adjustment that is alluded to in the abbreviated prospectus published in the paper on Thursday – the day the IPO started.
The company has learnt from the Eveready listing and set out to limit shareholder numbers by setting a minimum investment for retail investors at a moderately high 50,000 shillings ($715).
Industry: The communications sector has so much happening now from - unified licences, the Wananchi ATC deal , Telkom SA/AfOL deal, Telkom Kenya re-engineering itself, EASSY vs. TEAMS cabling, fibre optics everywhere and of course Safaricom at the top of the food chain who have continually reinvested much of their record profits towards infrastructure expansion.
Investments in the sector are not cheap and with technology rapidly evolving, the 400 million shillings that will accrue to the company may not be enough for more than a few years at a company that starts off with a marginal balance sheet.
IPO results will be out in May and shares will be listed in June 2007.
Other opportunities
from the daily papers this week
Jobs
Coca Cola - East & Central Africa business unit: franchise marketing manager, hospitality manager, operations marketing representative, financial services manager financial accountant senior brand manage (2) revenue growth manager commercialization manage (2) strategy development manager, human recourse manager compensation & benefits manager quality improvement manager
Apprenticeships for mechanics at DT Dobie: applicants must be under 22 with good grades in maths, physics, English and apply in handwriting by 11/5 to DT Dobie Training Center p o box 30160-00200
Safaricom: head of customer management, head of retail. Apply to chro@safaricom.co.ke.
Soon you can dine in the skies as the Kenyatta International Conference Center has set out to revive its roof top revolving restaurant on the 27th & 28th floors of the building.
Wednesday, April 18, 2007
Kudos all round
Today is a day to give thanks for and recognize some notable happenings to empower investors.
Businss Daily: I was skeptical about the newspaper at the start but it has come through and is a great read, with all the major stories posted online (the site also has RSS feeds). I don’t know if/when it will break even and I also fear that it become ”online subscriber only once it reaches a critical number of readers.
Hisanet: Is one of the many upcoming platforms that aspires to offer online trading at the Nairobi Stock Exchanges (and so investors wont have to queue for IPO shares). It’s still not possible to trade in real time (i.e. you can’ place orders till nest day, unless you’re a major player) but this is something that has been lacking at most stockbrokers and will be a welcome avenue for Kenyans living abroad.
NSE site: The new web site of the Nairobi Stock Exchange has been a great improvement with daily price lists and some corporate news, conference reports and presentations and is also easier t navigate. The only drawback has been its massive PDF scans instead of simple text files. E.g. a one page statement on the collapse of Francis Thuo was 1.13 MB in size.
CMA wakes up: The collapse of Francis Thuo and alleged misdeeds at other stockbrokers has turned the heat up at the Capital Markets Authority who have now turned the heat on to other entities such as stockbrokers, insiders, and directors of companies.
In proposed new rules posted at the CMA site (which is also due for a spruce up) the CMA;
- Cracks down on misbehavior such as insider trading by raising possible penalties to 15 million shillings ($214,286) for companies, 10 million for employees and 5 million for directors. They will also have to reimburse their gains and have their names published. it’s about time
- Locks in management of companies coming up for IPO’s. While owners/managers at Equity, Access Kenya and Scangroup voluntarily agreed to stay on, the CMA has now formally endorsed that they can't sell their shares for two years following listing
- The new rules also clear the way for other country shares to be cross listed on the NSE
Businss Daily: I was skeptical about the newspaper at the start but it has come through and is a great read, with all the major stories posted online (the site also has RSS feeds). I don’t know if/when it will break even and I also fear that it become ”online subscriber only once it reaches a critical number of readers.
Hisanet: Is one of the many upcoming platforms that aspires to offer online trading at the Nairobi Stock Exchanges (and so investors wont have to queue for IPO shares). It’s still not possible to trade in real time (i.e. you can’ place orders till nest day, unless you’re a major player) but this is something that has been lacking at most stockbrokers and will be a welcome avenue for Kenyans living abroad.
NSE site: The new web site of the Nairobi Stock Exchange has been a great improvement with daily price lists and some corporate news, conference reports and presentations and is also easier t navigate. The only drawback has been its massive PDF scans instead of simple text files. E.g. a one page statement on the collapse of Francis Thuo was 1.13 MB in size.
CMA wakes up: The collapse of Francis Thuo and alleged misdeeds at other stockbrokers has turned the heat up at the Capital Markets Authority who have now turned the heat on to other entities such as stockbrokers, insiders, and directors of companies.
In proposed new rules posted at the CMA site (which is also due for a spruce up) the CMA;
- Cracks down on misbehavior such as insider trading by raising possible penalties to 15 million shillings ($214,286) for companies, 10 million for employees and 5 million for directors. They will also have to reimburse their gains and have their names published. it’s about time
- Locks in management of companies coming up for IPO’s. While owners/managers at Equity, Access Kenya and Scangroup voluntarily agreed to stay on, the CMA has now formally endorsed that they can't sell their shares for two years following listing
- The new rules also clear the way for other country shares to be cross listed on the NSE
Tuesday, April 17, 2007
HFCK rights issue
Housing Finance shareholders are expected to raise the Bank's share capital from 575 million to 1.18 billion shillings ($16.8 million) by creation of 120.75 million new shares or one new share for each existing share held. About 5% of the shares are reserved for the company's employees leaving 115 million shares to be added to the company's listing on the NSE.
HFCK and S&L (owned by KCB) are still a major player in the mortgages sector which is becoming a crowded field with new entrants Stanbic, Standard Chartered, and next to be joined by cash rich Equity Bank.
HFCK and S&L (owned by KCB) are still a major player in the mortgages sector which is becoming a crowded field with new entrants Stanbic, Standard Chartered, and next to be joined by cash rich Equity Bank.
Net blamed for stock speculation
The internet (be it forums or blogs) is being blamed for rumours that drove up the price of Sameer Africa shares to 40 shillings before it again dropped to half it's take off price.
But Sameer never confirmed, denied or commented on the rumors until now.
But would you buy shares because a stranger wrote something to a blog, or chat room? And it seems far fetched that the readers of Kenyan blogs and chat rooms have enough weight & financial muscle to drive up a share price so drastically. I'm inclined to place blame with others, perhaps brokers, who simply used the 'internet' as an extra forum to play around with the share price of Sameer Africa (and who probably cashed out at 40 shillings).
But Sameer never confirmed, denied or commented on the rumors until now.
But would you buy shares because a stranger wrote something to a blog, or chat room? And it seems far fetched that the readers of Kenyan blogs and chat rooms have enough weight & financial muscle to drive up a share price so drastically. I'm inclined to place blame with others, perhaps brokers, who simply used the 'internet' as an extra forum to play around with the share price of Sameer Africa (and who probably cashed out at 40 shillings).
Monday, April 16, 2007
last laugh
Was the MC of a company AGM over the weekend and felt quite good about my performance until I attended a birthday party the same afternoon and found out that the clown there (hired to entertain kids) made more money than I did for my act :-<
Knocking on bankings' door
Family Bank: Family Finance will be the next bank licensed in Kenya within the next month as the building society will convert into Family Bank. Some have called the fast-rising institution and Equity clone with better stripes but it will fit in as the 22nd largest of Kenya’s banks.
Gulf African: Also in the running in 2007 is Gulf African Bank which is backed by a consortium of Middle East financial institutions.
MEGA bank: Interesting read here on the challenges and plans of the proposed MEGA bank.
Mega bank # 2
CFC's share price has stabilized after the initial confirmation of talks with Stanbic. It has since steadily risen as proper analysis of the proposal merger has been taking place.
Mega bank # 3
Will criticism by the SA Central bank governor scuttle part two of the Barclays Absa deal?
Mega bank # 4
Is Nakumatt a Bank? It follows in the path of Wal-Mart but has not indicated any such leanings. However, an organization that takes in over 70 million shillings a day ($1 million) and doesn’t have to pay its creditors for 30 days has to be a major player in the banking and investment world.
edit
Ecobank here soon too.
Finally: a non-banking story but a major corporate headache as Ribena (remember mothers who care trust Ribena?) may not be all that it advertises itself to be!
Saturday, April 14, 2007
Motoring moment: low tech cars
It took three stories to make up this post.
First was this story that appeared in the Standard last week about a range rover limousine that got messed up by a pothole. Then there was one where TV talk show host and car aficionado Jay Leno bragged about being the only celebrity who can drive a manual transmission SLR Mercedes. And finally this piece from the wall street journal which chronicles how frustrated new car owners are with their high-tech machines
Which brings up the question, how much it too much technology for cars? With my budget, I can only to drive a car that Wanjala, my mechanic, can fix at his garage and one whose parts are relatively available and affordable.
Yet Kenyans have been buying top of the range cars at an astonishing rate, some without local parts or technical support. And some of the cars are loaded with such gizmos and that make even their owners confused. How many times have you ridden in a car where the owner does not know what half the dashboard gizmos do? There are all wheel drive cars that never leave the city, tiptronic gears that are never used, cars that lock their owner out or in depending on their perception of insecurity, cars that are supposed to avoid collision and others that are supposed to park themselves.
Sometimes they break down in strange and sad ways - from cars with blown turbochargers that cause them to crawl or new cars that you see parked at the back of a garage as they await arrival of some obscure engine part or maybe it's because the dealer's electronic diagnostic kit has not discovered what bug is ailing the engine.
Other motoring moments:
- a VIP accident
- arrival of the Chrysler 300
Enough about cars
April 13 Jobs
most from the daily papers this week
Academy for educational development: finance manager, finance assistant, administration manager. Apply to regionaloffice@aed.org by 27/4
Investment analyst at British American asset managers. Apply to BAAMHR@baam.co.ke by 27/4
Centre for Humanitarian Dialogue. Project manager and a regional director,both in Nairobi. D/L is 30/4
Financial information systems manager at Equity bank. Apply to jobs@equitybank.co.ke by 27/4
Operations officer (Nairobi) at the IFC growth oriented women entrepreneurs (GOWE Kenya) program. D/L is 27/4
Human resource manager at Innscor Kenya apply to recruit@innscorkenya.co.ke by 27/4
Management trainees at KCB. Apply online by 27/4
Kenya national commission on human rights: principal human rights officer - research policy & legislation program, principal human rights officer - campaign & advocacy program, principal human rights officer - complaints & investigation program. Apply to the commission secretary 74359-00200 by 30/7
Magadi soda: senior buyer, product development manager. Apply to recruit@magadisoda.co.ke by 27/4
Microsoft: infrastructure consultant, corporate account manager, partner account manager. Apply to wecajobs@microsoft.com
Safaricom: Senior internal auditor, senior information systems auditor, and senior information security officer. Deadline is 18/4
Executive director at Transparency international. Apply to recruit@sadeptsystems.co.ke by 27/4
Regional Program Leader at the World Bank PPIAF Nairobi. D/L is 30/4
First was this story that appeared in the Standard last week about a range rover limousine that got messed up by a pothole. Then there was one where TV talk show host and car aficionado Jay Leno bragged about being the only celebrity who can drive a manual transmission SLR Mercedes. And finally this piece from the wall street journal which chronicles how frustrated new car owners are with their high-tech machines
Which brings up the question, how much it too much technology for cars? With my budget, I can only to drive a car that Wanjala, my mechanic, can fix at his garage and one whose parts are relatively available and affordable.
Yet Kenyans have been buying top of the range cars at an astonishing rate, some without local parts or technical support. And some of the cars are loaded with such gizmos and that make even their owners confused. How many times have you ridden in a car where the owner does not know what half the dashboard gizmos do? There are all wheel drive cars that never leave the city, tiptronic gears that are never used, cars that lock their owner out or in depending on their perception of insecurity, cars that are supposed to avoid collision and others that are supposed to park themselves.
Sometimes they break down in strange and sad ways - from cars with blown turbochargers that cause them to crawl or new cars that you see parked at the back of a garage as they await arrival of some obscure engine part or maybe it's because the dealer's electronic diagnostic kit has not discovered what bug is ailing the engine.
Other motoring moments:
- a VIP accident
- arrival of the Chrysler 300
Enough about cars
April 13 Jobs
most from the daily papers this week
Academy for educational development: finance manager, finance assistant, administration manager. Apply to regionaloffice@aed.org by 27/4
Investment analyst at British American asset managers. Apply to BAAMHR@baam.co.ke by 27/4
Centre for Humanitarian Dialogue. Project manager and a regional director,both in Nairobi. D/L is 30/4
Financial information systems manager at Equity bank. Apply to jobs@equitybank.co.ke by 27/4
Operations officer (Nairobi) at the IFC growth oriented women entrepreneurs (GOWE Kenya) program. D/L is 27/4
Human resource manager at Innscor Kenya apply to recruit@innscorkenya.co.ke by 27/4
Management trainees at KCB. Apply online by 27/4
Kenya national commission on human rights: principal human rights officer - research policy & legislation program, principal human rights officer - campaign & advocacy program, principal human rights officer - complaints & investigation program. Apply to the commission secretary 74359-00200 by 30/7
Magadi soda: senior buyer, product development manager. Apply to recruit@magadisoda.co.ke by 27/4
Microsoft: infrastructure consultant, corporate account manager, partner account manager. Apply to wecajobs@microsoft.com
Safaricom: Senior internal auditor, senior information systems auditor, and senior information security officer. Deadline is 18/4
Executive director at Transparency international. Apply to recruit@sadeptsystems.co.ke by 27/4
Regional Program Leader at the World Bank PPIAF Nairobi. D/L is 30/4
Wednesday, April 11, 2007
FLSE
Who need the LSE?
Safaricom is our birthright built on the voices, fingers, and shillings of Kenyans. It has been a model for social advancement, ability of ICT's to bring development, empowerment, democracy, awareness, the long tail, proof that cents (and shillings) can grow into billions in profits - etc.
It is peculiarly Kenyan right down to its flaws such as congested hours, high costs, and secrets owners (Mobitelea). That's why Safaricom should be listed on the Nairobi Stock Exchange, not the LSE
It is our birthright - like an African child who takes money out of their parents pocket for eighteen years and should put some back when they grow up. British shareholders will never understand how bamba 50, sambaza, mteja or m-pesa, translate into profits & dividends - nor should they be asked to.
The NSE was able to absorb Kengen and still left twice as much money on the table with negligible impact on other share prices. Likewise, it will be able to handle a Safaricom IPO.
Safaricom is our birthright built on the voices, fingers, and shillings of Kenyans. It has been a model for social advancement, ability of ICT's to bring development, empowerment, democracy, awareness, the long tail, proof that cents (and shillings) can grow into billions in profits - etc.
It is peculiarly Kenyan right down to its flaws such as congested hours, high costs, and secrets owners (Mobitelea). That's why Safaricom should be listed on the Nairobi Stock Exchange, not the LSE
It is our birthright - like an African child who takes money out of their parents pocket for eighteen years and should put some back when they grow up. British shareholders will never understand how bamba 50, sambaza, mteja or m-pesa, translate into profits & dividends - nor should they be asked to.
The NSE was able to absorb Kengen and still left twice as much money on the table with negligible impact on other share prices. Likewise, it will be able to handle a Safaricom IPO.
Tuesday, April 10, 2007
Who's Kenya paying?
A noble step in the war on corruption is this website by the Public Procurement Oversight Authority which list all contracts awarded over 5 million shillings ($71,430) by organs of the kenya government . A step further would be to require/ publish all companies who are awarded such contracts to also publish/disclose all the company directors.
Transparent dust
Mwalimu Mati is showing his former employers Transparency International quite a bit of dust with his new venture Mars Group Kenya which unearths more dirt than Transparency ever did.
Transparent dust
Mwalimu Mati is showing his former employers Transparency International quite a bit of dust with his new venture Mars Group Kenya which unearths more dirt than Transparency ever did.
Easter weekend
No trades
I realized that I had not been to my stockbroker’s office to trade this year. It would be good to visit to find out the fate of my Stanbic shares. I’m not sure if I got a full allocation or a refund since I have not got any report from the broker. This week would be a good time to visit before the lines begin for the Access Kenya IPO which starts next week.
Access Kenya IPO
Access Kenya announced that their IPO will begin on April 19th. The company hopes to sell 80 million shares at 10 shillings ($0.14) each to raise 800 million shillings ($11.4m). I look forward to the prospectus to be released within the next few days to give a proper picture of the communications market. And we are also awaiting an IPO from Wananchi, Kenya’s largest ISP who unfortunately lost a bid for Africa Online to Telkom of South Africa.
The ISP industry has shown tremendous growth, but the sector faces additional challenges for investors.
- First like the Scangroup IPO, intangible measures take on greater significance in comparing the company against its peers and its future prospects.
- Second, an additional regulator comes into play i.e. the Communications Commission of Kenya. The sector has seen some turbulent investments that have not reached fruition including the third mobile operator (Econet in court for three years) and the second national operator (license has been awarded and canceled twice). Also CCK will in future move towards giving unified licenses, which means that that companies won’t have to go back to re-apply each time they want to introduce a new service.
- Third in a unified license world, and once a restructured Telkom has been sorted out, Safaricom and celtel may be the ISP companies of the future with their EDGE / GPRS offerings. (ISP’s are already complaining about mobile companies not playing fair with interconnection, leading back to the regulator again).
Corporate divorce
Alexander Forbes of SA has withdrawn its name from Alexander Forbes insurance brokers of Kenya citing a lack of majority equity or management control. The Kenyan operation (formerly Hyman Robertson) who already have a new name ready to launch, feel that they have been a good custodians of the brand, turning it around from loss making one to being one of the largest in East Africa.
Fading libraries?
Read in the Sunday Standard that the British Council was closing their library in Mombasa owing to declining memberships.
I realized that I had not been to my stockbroker’s office to trade this year. It would be good to visit to find out the fate of my Stanbic shares. I’m not sure if I got a full allocation or a refund since I have not got any report from the broker. This week would be a good time to visit before the lines begin for the Access Kenya IPO which starts next week.
Access Kenya IPO
Access Kenya announced that their IPO will begin on April 19th. The company hopes to sell 80 million shares at 10 shillings ($0.14) each to raise 800 million shillings ($11.4m). I look forward to the prospectus to be released within the next few days to give a proper picture of the communications market. And we are also awaiting an IPO from Wananchi, Kenya’s largest ISP who unfortunately lost a bid for Africa Online to Telkom of South Africa.
The ISP industry has shown tremendous growth, but the sector faces additional challenges for investors.
- First like the Scangroup IPO, intangible measures take on greater significance in comparing the company against its peers and its future prospects.
- Second, an additional regulator comes into play i.e. the Communications Commission of Kenya. The sector has seen some turbulent investments that have not reached fruition including the third mobile operator (Econet in court for three years) and the second national operator (license has been awarded and canceled twice). Also CCK will in future move towards giving unified licenses, which means that that companies won’t have to go back to re-apply each time they want to introduce a new service.
- Third in a unified license world, and once a restructured Telkom has been sorted out, Safaricom and celtel may be the ISP companies of the future with their EDGE / GPRS offerings. (ISP’s are already complaining about mobile companies not playing fair with interconnection, leading back to the regulator again).
Corporate divorce
Alexander Forbes of SA has withdrawn its name from Alexander Forbes insurance brokers of Kenya citing a lack of majority equity or management control. The Kenyan operation (formerly Hyman Robertson) who already have a new name ready to launch, feel that they have been a good custodians of the brand, turning it around from loss making one to being one of the largest in East Africa.
Fading libraries?
Read in the Sunday Standard that the British Council was closing their library in Mombasa owing to declining memberships.
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