Corporate Brief's this Week

Banking Bill dead?
The Banking (Amendment) Bill 2004 which has been deferred, may be doomed, in that politicians have taken the rhetoric down to imperialist (foreign banks destroying indigenous business) and tribal (banks are persecuting Central Province mainly) levels. After Finance Minister David Mwiraria heard the views of Members, he decided to defer debate to a later day. The House was unanimous it would not be in the interest of the nation for banks to retain the "illegal" interest they have been charging Kenyans. MP’s want the ‘in duplum’ rule to be back-dated to 1990, while the President wants it to begin in 2004. This will wipe out entire bank portfolios and cause several of them to shut down.

Mystery Solved
2004 Profit at Transnational Bank jumped to an astounding 1 billion shillings from 100 million in 2003. This came about from the sale of Alico Insurance to Heritage AII earlier in the year – and Transnational Holdings owned 1/3 of Alico netting a profit of 1.034 billion from the sale.

Name Change
Firestone Ltd shareholders approved a name change and the company will now operate as "Sameer Africa Ltd." Does this mean new business ventures?

Fibre Nairobi
Walking around Nairobi, you may have tripped or almost fallen into a ditch that cuts across the pavement. It's just Kenya Data Networks (a Sameer company) continuing to build its fiber-optic network around Nairobi.

Missing taxes
Nakumatt stores are being investigated for tax evasion, according to a Minister in Parliament.

No Sugar
A sugar shortage is taking hold around Kenya. Meanwhile all Kenyan sugar factories are shut for annual maintenance and imported sugar is rotting at the Mombasa port as traders argue with KRA over how much duty is to be paid. Shoppers are being limited to 1 or 2 kg per person, per day.

You don't have to swim
Kenya Ferry Services assures Kenyans that their ferries crossing Likoni (Mombasa) never capsize and are 100% buoyant despite the frequent mechanical breakdowns.

Fare increase
Kenya Railways have announced that they will raise their freight costs by 20% and passenger fares by 30% effective May 2005. However the move has been opposed by the Kenya Association of Manufacturer's and other groups who say that the poor service that KR currently provides does not warrant an increase in fares.

Calendar
April 21: East African Cable AGM at Holiday Inn, Westlands
April 26: (AGM) British American Tobacco AGM
April 29: (TPS) Serena AGM