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bankelele
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11:59
From: bankelele
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I have met a few MP's, watched several live debates in the last parliament, and lot's of TV over the last five years. What is shocking to me is how different an MP that you know is – almost a two-faced person who's a serious level-headed professional debater in private who schmoozes the private sector and donors in person, and yet gets on TV at a rally and talks like a Neanderthal, insulting opponents from far flung places around the country. The MP's in the outing parliament who impressed me (yet I don't know any of them personally ) - are people who were always in parliament, debating and active in legislative matters – these include Maoka Maore, Justin Muturi, Martha Karua, Njoki Ndungu, Wafula Wamunyinyi to name a few. Yet many of them will not be back next March. For every professional i.e banker, farmer, stockbroker, accountant, IT specialist or other professional like Jonathan Mueke who take a first time plunge to make a difference, there are other perennial candidates that they have to run against – and however Jonathan turns out, he's likely to be better than several other candidates who include folk like; Current MP's: best illustrated with quotes from Joseph Kamotho and Norman Nyagah who after losing party nominations and defecting to new parties - said I must be on the ballot and my constituents love me and I must reciprocate that by continuing to serve them. ex-MP who feel the cold of being out of parliament. But like a gambler the morning after a big-loss night out, they think they know what they did wrong, set about scraping resources to make another lucky run the next night at the casino of parliament. In real life, they still call themselves 'honorable,' watch their dwindling money, as they maintain political and social networks ready for a comeback. And if asked, they are always ready to deny that they are interested in returning to parliament, but the lure is too easy and they are a sure bit to be in the 'right party' come election time. Grey MP's: not Grey in age, but these are people who have some blemished reputations – running from dubious financial escapades at Kenya Posts & telecommunications, health care sector, Goldenberg, road construction, public service, collapsed banks, etc. – who go to parliament where they will work to influence the the Public Investments (PIC) or public accounts (PAC) committees (from within) who investigate 5 year old scandals. They are well funded, know how to play (dirty) tricks, and buy their way into cash hungry political parties - since going into politics after a scandal ridden period provides a re-birth of sorts that legitimizes someone who perhaps should be a defendant, not a 'honorable MP' And once a professional gets to parliament does it matter how they perform as legislators? Maore, Muturi, and Muriuki Karue (who introduced the game changing constituency development fund scheme in 2003) have been voted out of parliament by their constituents this year. The CDF was a good measure of how MP's handled public money as a measure of how an outgoing MP has performed, but I'm sure there are hardworking development minded MP's (e.g. Tuju) who will be voted out for reasons other than addressing and improving the welfare of their constituents. So by what measure, should we judge our parliamentarians? Many are judged by the handouts they give or how many constituents they can stuff into the bloated government workforce over the five years they are in office. It is wrong, but until the expectations of constituents change, we will remain stuck with the same old folks. Or, as the 2002 - 2007 period showed, you may vote in new cheetah's but they will be old hippos that the same constituents will happily vote out & cheer away five years later. Random post election questions - does a president who loses an election remain eligible for the handsome 2002 presidential retirement package if he remains in active politics? - how many bank loans are likely to be recalled or go bad, given the high number of MP's (likely to be 50%) thrown out by constituents this week?
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8:09
From: bankelele
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It's been a very tiring day, after spending seven hours waiting to vote. Still, if I'm willing to buy shares in a crummy IPO, I should be equally tolerant of a election day that occurs every five years. The week also included Christmas shopping and could also have included the Safaricom IPO before it was wisely put aside till mid 2008. mini comparisonpersonal touch: While IPO's have arrangements for high-net worth and corporate investor that shield them from the crowds (place orders over the phone, and wire money after the IPO), Christmas shopping and elections are a duty that most people have to perform in person. For elections, you must present your identification documents in person, and for Christmas shopping, a gift is as unique as the buyer perceives the recipient will appreciate what they have chosen. So in the voting queue or at Nakumatt on the 24th or 25th on December you're likely to meet many freinds & colleagues, or interact with a well known personality or two such as the head of the Nairobi stock exchange and a presidential candidate. It was also very touching to encounter the president daughter shopping in Nakumatt - picking out gifts, pushing a basket and queuing alone, so different from the high security entourages and preferential treatment that surrounds her folks. Logistics: Shopping wins, IPO's second, while voting is a distant third. The electoral commission reliance on manual registers to search for voters was time consuming (see my 7 hours). This was after as a previous voter, who had verified using their online system, should have been straight forward. There was a lot more confusion with the electoral commission of Kenya station than the last time round - and even worse in parts of Langata where a leading presidential candidates name was missing from the register (others will see it as sabotage). Early bird: It's good to be early with Christmas shopping as you can make careful decisions, shop for bargains, and a have a variety of goods to choose from that are often sold out by the time us late shoppers arrive. But with IPO's and elections, often the right decision is to wait until the middle (end of first week for IPO, or noon of election day) after the anxious early-bird crowds have been sevred and disappeared. E.g. While i spent 7 hours voting, some people queued for 20 min tops in the afternoon Some other elections observations: - Party observers, who were only keen to help their party members. They increased the workload of ECK official who should instead be tending to voter individual queries and problems - ECK officials arguing in public with each other. It's understandable given the stress they are under to cope today, but bad for the image. - The Langata snafu - Self policing in the lines, in the absence of police or NYS officers who were absent from the poll station - met my candidate almost alone in the queue, and later saw his big party rival who had a dozen strong media and security entourage - EU observers walking around, but not talking /interacting/understanding voters in the queue unless there was the possibility of some violence Summary: all in all, a tough week, with a lot of time and effort required. The Safricom IPO was taken out of the picture which was a big relief to the other two events.
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10:59
From: bankelele
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if you live in westlands Nairobi, vote Jonathan Mueke today. A good man, a young visionary leader who was my pal in grad school and who can represent the future for Westlands, Nairobi. He's up against bigger, better funded, or connected candidates, but he should be the MP who can make a difference after 2007 
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4:01
From: bankelele
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Finally the big leagues - these banks have large networks of branches and ATM’s in most of the major towns around the country. 6. (No. 13 last year) Equity Bank: Estimated assets of 51 billion ($730 million) and profit of 2.1 billion shillings ($30 million) as Equity continues the staggering 100% annual growth rate it has maintained since it converted from a building society. Took some political and banking industry heat, but was ably defended by authorities and management. The bank also bought out ¼ of Housing Finance and sold 25% a stake to Helios Capital to 11 billion shillings. The Helios deal will be used to finance Equity’s expansion into East & Central Africa as well as the payment to Housing Finance – and with the addition of new directors, Equity needs to sort out some governance and staff morale issues in the new year. 5. (9 and 10 respectivly) CFC Stanbic Bank: Estimated combined bank assets of 64 billion and profits of 2.2 billion resulting from the mega-merger of two mid-size banks – the local arm of Stanbic (Africa’s largest bank) and mid-size CFC with a combined corporate, insurance and stockbroking business. Some clash of cultures and systems can be expected as with most mergers, but this could be a South African - Kenyan partnership that succeeds, where many others have failed. 4. (4) Cooperative Bank: Estimated assets of 70 billion, profits of 2.5 billion in 2007. Another record year for the bank that has recovered massively from a loss five years ago and since the government set out to sort of the cooperatives sector debts. With growth of 15% from a year ago, and profit up 100%, though the MD was rumored to have been keen to move to KCB. 3. (3) Standard Chartered: Estimated assets of 100 billion and profits of 3.5 billion. The quietest of the big three banks in terms of product development & marketing, it lost ground to KCB even as it remains second in market cap. Hawking their products on street corners may have hurt their image, while the corporate banking is plagued by high fees and an operational system difficult to maneuver. 2. (2) KCB: Estimated assets of 110 billion and profits of 4.3 billion in 2007. Had a smooth CEO transition and growth of 20% but with both deposits and loans up 30% from a year ago. But into S. Sudan has been slow, while Uganda was also delayed, showing the difficult of regional banking. 1. (1) Barclays Kenya: Estimated assets of 160 billion ($2.3 billion), profits of 8.5 billion ($120 million) with growth of 25% from a year ago. The bank continued its turnaround, expanding in rural Kenya and other parts of Africa where it had previously withdrawn and closed branches. This is not the first time that it has had to reverse direction – years ago they spun off an unwanted asset finance business that is now NIC Bank – and who they are fighting for dominance of the same market. who’s missing? - Charterhouse Bank which is under statutory management by the Central Bank - Gulf African – new Shariah bank began in 2007, but may be operating under different rules – (see post) - Kenya Women’s Finance Trust a micro finance organization with assets of about 4 billion and profit of about 200 million that may be the next bank licensed in 2008.
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22:40
From: bankelele
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Equity Bank held an Extraordinary general meeting on Friday December 21, 2007 in the KICC Amphitheatre. The meeting started 45 minutes late as shareholders were treated to almost a whole CD of the greatest hits Boney M. The hall never filled up, and it started at about 10:40 a.m. The Bank Chairman Mr. Peter Munga, invited a Chaplain to say a prayer, after which he introduced members of the board of the Bank and legal and transaction advisors (Kaplan & Stratton, Pricewaterhousecoopers, Ernst&Young) in attendance. The Managing Director, Dr. James Mwangi then introduced several of the top managers of the Bank who were present. The Company Secretary then confirmed that there was a quorum and proceeded to read the notice for the meeting. However after completing the first of three resolutions (took about two minutes), the Chairman interrupted her and asked if, in the interest of time, all shareholders had read and were aware of the resolutions. We confirmed - and the meeting proceeded on without a full reading. The MD then gave a brief talk about the proposal to sell 25% of the Bank to Helios Partners. He said Equity had been growing at about 100% a year and now wished to expand into other countries in Africa. They had sought and now found the right partner to finance that growth and with networks & expertise to manage the new ventures. Helios would get two director seats, and may add more funds if the need arose. The 11 billion capital injection from Helios would also ensure compliance with prudential ratios, increase lending capacity, and allow further necessary investment in IT . sweetener for shareholders: the MD told shareholders, that though their individual stakes would be diluted by 25%, the net asset value of their shares would increase from 11.9 shilling per share to 39.4 shilling per share. And though shares were diluted, Helios would not take part in the 2007 dividend Shareholders questions There’s gentleman called Mr. Alois Chami who owns shares in just about every listed company in the country and is a fixture at all AGM’s – known to all company chairman. Normally he’s a bit of a windbag, but today he acquitted himself with his frank questions.  Chami at a previous AGMBefore answering him, the MD complemented Chami as one of the few shareholders who took up the company invitation to inspect the transaction documents at the headquarters Chami asked; - Who was exempt - all shareholders or Helios? – as the governor of the central bank and the minister of finance gave differing interpretations MD answered - Only Helios is exempted. Helios is a partnership fund investing in the bank, while Kenyan law only recognizes individual or companies as investors. Also said that existing directors continued to be bound by their non-sale agreement till July 2008. - What does exemption mean? Kaplan lady lawyer confirmed that applied only to Helios partnership and would not venture further - No other bank has that exemption, why? others may look at the exemption and see a political angle, but it was just a business decision made by the central bank -Does management have capacity to utilize capital? - management had the competence, bank has been growing at 100% Why invest in housing finance (Equity has bought 25%), a sinking ship? Why not Equity own mortgage company? Equity saw housing finance as a turnaround opportunity, bought at 18, now at 40 shilling a share and performance will be better as together they will provide affordable housing finance solutions to KenyansShareholders voteSince Mr. Chami was the only shareholder with questions, the resolutions were put to the floor and were passed in quick succession, with the first two being straightforward to; (1) Increase share capital (2) Allot new shares to Helios (3) But the third amended articles of association of the bank; in addition to the usual modernization resolutions e.g. allowing tele-conferencing, also had some unusual ones like if shareholder is non-responsive for six years, company may sell those shares and keep the proceeds, made it more difficult for directors to amend dividend policy, business plan or budget (all but one must approve any change) Edit - One of the Helios managing directors, Mr Babatunde Soyoye, was invited to the podium and he briefly spoke about the new pan-African partnership that the Bank would venture into next. The Chairman then invited director Dr. Julius Kipngetich (also head of Kenya Wildlife Services) to give a vote of thanks. He thanked the shareholders and assured them that "stick with Equity, and we will make you rich", customers (now heading towards 2 million customers by January) suppliers (for world class service) Board of directors (best in the country) management staff (ordinary people doing extraordinary things) transaction advisers, and media (for good coverage even as Equity remained misunderstood) Finally the Chairman thanked shareholder saying they were now richer than when they came in. Goodies: tea and snacks outside, while all shareholders got a toe bag with Bank brochures and souvenirs book
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22:33
From: bankelele
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Middle of the pack 20. (20) Fina Bank: Estimated assets of 7.6 billion ($108 million) and profits of 90 million shillings ($1.3 million), with growth of about 20% from a year ago. Opened upcountry branches in Kenya (Nakuru, Mombasa, and Eldoret) and will start branches in Uganda next year, bridging the Fina to their existing Rwanda operations. 19. (22) Family Bank: Estimated assets of 9 billion and profits of 220 million in 2007. Known as Equity Blue, it has enjoyed similarly rapid growth (though slightly less this year) since converting from a building society to a bank. It has followed Equity's footsteps, applying for the same exemptions granted to Equity - such early as admission to the clearing house and permission to issue chequebooks. It has also opened branches at a fast rate and its paperless banking model and women-entrepreneur loan models are a hit with rural Kenyans. But, in the year in which they converted to a Bank, they also lost their long serving CEO over board dispute and got sued by a Central Bank official who their Chairman had accused of being corrupt. 18. (18) EABS: Estimated assets of 9 billion and profits of 15 million. Teething pains continue at the former building society which converted to a bank three years ago, and had growth of about 5% in 2007. 17. (17) Housing Finance : Estimated assets of 10.5 billion and profit of 120 million, with loans 15% up from a year ago but assets only 2%. The bank tried to merge with Development Bank of Kenya, and later raise cash in a rights issue, but both plans were scuttled by regulators; later the board signed to sell a 25% stake to Equity Bank. HFCK and S&L (owned by KCB) are still major players in the mortgages sector which is becoming a crowded field with newer entrants Stanbic and Standard Chartered. HF also lost a class action lawsuit filed by customers over illegal bank charges. 16. (19) Bank of India: Estimated assets of 11 billion and profit of 500 million for quiet bank that grew at about 25%. Does a lot of India related business and Kenya government securities. 15. (16) Imperial Bank: Estimated assets of 11.5 billion and profits of 600 million. In 2007, the bank grew about 40% as it launched shariah banking, asset finance, children’s accounts and opened new branches at the coast. 14. (14) Bank of Baroda: Estimated assets of 14.9 billion and profit of 600 million for quiet bank that grew at about 25% and does a lot of Kenya government securities investing. It has been in Kenya for 52 years 13. (15) Prime Bank : Estimated assets of 15 billion and profits of 350 million. The fast growing bank will consolidate with affiliate Prime capital company by year end leading to a much larger bank in 2008. 12. (11) Investment & Mortgages: Estimated assets of 30 billion and profits of 1.3 billion. Fast growing bank also diversified into shariah banking, custodial services and also acquired two new euro bank shareholders. 11. (12) Diamond Trust : Estimated assets of 31 billion and profits of 950 million. In 2007 the bank grew about 45% as it opened several new branches, had a second rights issue in less than a year and also acquired a majority stake in Diamond Trust Tanzania. 10. (8) NIC: Estimated assets of 34 billion and profit of 1.1 billion. The bank grew at about 30% in 2007. It had a rights issue, rewarded shareholders with a bonus, went into custodial and investment banking (acquiring a stockbrokerage firm). But the market leader in asset finance also faced increased competition from other banks in this field and was dropped from NSE share index in favour of ICDCI. 9. (5) Citibank Kenya: Estimated assets of 38 billion and profit of 1.9 billion shillings. Otherwise a flat year for the bank whose parent faced her own troubles in the US banking meltdown. Growth was about 5% as the bank got into the local IPO advisory races. 8. (6) Commercial Bank of Africa: Estimated assets of 40 billion and profit of 1.4 billion. Growth of 9% from a year ago got into unit trusts, home loans, insurance, and funding of women projects. Similar to CFC and would be prime candidate for a merger. 7. (7) National Bank of Kenya: Estimated assets of 45 billion ($645 million) and profit of 1.4 billion shillings ($20 million) for 2007. NBK finally had its most of its non- performing portfolio debt albatross sorted out with a government bailout in the form of bonds maturing over the next 10 years. Now that its cleaned up, it could once again be a target of Stanbic again who two years ago offered to buy out NSSF’s 48% after their CFC merger is done in 2008 (Equity Bank is a also long shot). During the year, NBK partnered with Standard investment bank offer stockbroking services through NBK branches and also tried to have businessman Ketan Somaia jailed over an unpaid debt to the bank Jobs - Chase Bank; Head of ICT, senior manager operations, head of trade finance. apply by snail mail to the Head of HR 28987-00200 by 29/2 - Cabin crew at Emirates airlines- Fina Bank Uganda: The bank is starting operation in Uganda in January 2008, and those interested in working there should send detailed CVs to hr@finabank.com. - tough job - Head of marketing & corporate communications at Kenya Airways apply online by 15/1
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4:17
From: bankelele
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Small banks, range from $40 to $100 million Showed an inability to grow as faster as the bigger bank, with few exceptions. Yet they are still profitable and reluctant to merge The banks got a temporary reprieve when parliament shot down the government's proposal that banks should have a minimum capital of 1 billion ($15 million) 3 years from the current 250 million shilling minimum' but that proposal is likely to be revisited by future finance ministers. 35. (38) Fidelity Bank: Estimated assets 3.2 billion ($45.7M), profit of 45 million ($0.7 million) shillings for this quiet bank with little marketing activity but which was able to grow 40% during 2007. 34. (36) Credit Bank: Estimated assets of 3,300 million and profit of 120 million, for another quiet bank which grew about 15% in 2007. 33. (33) Middle East: Estimated 3.2 billion assets and profit of 80 million in 2007. However deposits and loans are down 6% from a year ago. 32. (35) Habib Bank: Estimated 3.5 billion assets and profit of 90 million, with growth of 12% from a year ago. Participated in the first Diamond trust rights first issue as a possible merger step. 31. (29) Victoria: Estimated 4.2 billion assets 140m in profit. Flat growth expect in loans and deposits (1%), but great in profitability which is improved by over 40% in 2007. 30. (32) Consolidated Bank: Estimated 4.5 billion assets, 20 million profit with the 30% growth from a year ago. There was public fallout between the MD and the board resulting in the board being fired by the Finance Minister. The Deposit protection fund (DPF) of the Central Bank plans to sell its 51% stake to private sector, and is likely to be found next year by private sale. A loss in 2005 makes the bank ineligible for an NSE listing and the owners the collapsed banks that form Consolidated Bank are likely to figure in as potential buyers. 30. (31) Equatorial: 4.7 billion assets and 90m in profit. The Sameer group bank Out-performed corporate big sister CBA growing by about 15% in 2007. 29. (34) Development Bank of Kenya: Estimated 4.8 billion and 200m in profit. Remarkable growth fro a development finance institution to record 45% growth in loans & deposits. Part of ICDC's (Government) 90% stake in the bank is up for sale in 2008. 28. (28) Southern Credit: Estimated 4.9 billion assets, 80m in profit. 10% growth in loans and deposits, with about 40% growth in profits in 2007. Bank with a lady MD focus on cards 27. (30) Chase Bank: Estimated assets of 5.0 billion, and profit of 130 million. The winner of small bank awards, will open new branches next year and has set about achieveing a recapitalization target of 1 billion, through retained earnings. 26. (26) Giro: Estimated 5.3 billion assets, 70m in profit. With 7% growth in the year, It was supposed to be sold to state bank of India, but the deal is yet to be approved by regulators. 25. (27) Guardian: Estimated 5.8 billion assets, 45 million profit. Growth of about 15% 24. (23) ABC: Estimated 5.8 billion assets, 170 million in profits. With 12% growth from a year ago, ABC was one of the few small banks that had a marketing push to target new customers in 2007 in addition to a recapitalization drive. Launched kisima a flat fee account and has new branches. 23. (24) Habib AG Zurich: Estimated 6.1 billion assets, 200 million profit for another quiet bank which grew about 15% in 2007. 22. (25) K-Rep: Estimated 7.2 billion assets, 200 million profit . With international shareholding and micro-finance expertise is an natural candidate for a merger Was 29th two years ago and recorded about 60% growth in 2007. 21. (21) Bank of Africa 7.2 billion ($103 million) assets 160 million shillings ($2.3 million) profit in 2007. What is hopefully the first of many West African banks spreading eastwards has opened new branches and targeted growth of new business like asset finance. ddia
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9:32
From: bankelele
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the bottom 5 The low end of the banking sector showed little growth in loans or deposits – bank sizes are stagnant. 40. City Finance: (last year 42) Estimated assets of 650 million shillings ($9.28 million) and loss of 20 million shillings in 2007. Kenya’s smallest bank was taken over by the Baraka Fund late in the year, and is expected to be recapitalized and turned around from 2008. 39. (41) Dubai: Estimated 1,480 million assets, profit of 10m shillings. Growth of about 3% this year, but the bank will have achieve a smaller profit than last year. Its niche branch in Eastleigh and foreign remittance product has found increased competition. 38. (40) Oriental: Estimated 1,732m in assets and profit of 200 million. The perennial loss making Oriental bank (formerly BCCI and Delphis) was recapitalized and is on track for a profit this year following a payment from the Governments’ financial restructuring of Miwani Sugar company which owed the bank a significant debt. 37. (39) Paramount Universal : Estimated 2,258 billion and profit of 45 million. Growth in assets, deposits, and loans flat this year but at least is profitable. 36. (37) Transnational: Estimated 3.03 billion ($43 million) in assets, and 90 million ($1.3m) in profit for 2007. A quiet year for the bank which introduced a Fanikisha product for customers to save money and buy IPO shares on the NSE Bank story of the week Which way Equity?: It’s rare to see two sides of a story from the same editorial team – but it has happened on the controversial shielding of Equity Bank’s new shareholders with the Nation newspaper editorial defending the exemption granted by the Finance Minister, after the influential Business Daily editorial (sister newspaper in the Nation Media Group) had strongly opposed the same.
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8:39
From: bankelele
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In November 2006, I wrote some predictions in the Business Post December 2006/January 2007 issue, in which I put forward ideas, expectations, and wishful thinking for the country in year 2007.  Here’s a review of some of the Nostradamus-like thoughts: Hit: happened Miss: did not happen Whiff: almost did, or unclear and narrativeAGRICULTURE: - Processors launch new coffee and tea brands targeting the export market Hit Sasini, KTDA launched brands- Sugar, maize, and wheat importation raises controversy Hit sugar a no brainer, while maize buying from farmers is delayed owing to imported maize in the silos- Kenya Meat Commission revival stalls whiff off to a good start but Budget ’08 will show if it still needs government support- Coffee smuggling once again becomes money minter. missBANKS & FINANCE: - A correction in the stock market and equities go into bear mode. Hit- The local currency strengthens, holding at KSh 60 to the US dollar for the better part of the year. Hit shilling kept getting stronger through the election year against most expectations and hit 61 from 73 a year ago- Revolutionary money transfer/online banking for Kenyans in the Diaspora. Whiff Safaricom M-Pesa is a local hit, and is being tested international by Vodafone- Several shareholder groups are formed to revolt against perceived insider trading Whiff though several watchdogs started barking after Francis Thuo collapsed- Taxpayer groups agitate for better services from the government and presidential candidates. whiff only presidential candidates were put to task over their plans- Entry of three new mid-size banks precipitates the merger of several smaller banks Miss only one merger, but banks realize that the capital stakes have been raised now- More banks become stockbrokers Miss Only NIC (and Renaissance Capital) who bought into existing stockbrokers- The dividend tax is increased while a proposed capital gains tax on shares is defeated. Miss a cap gains tax on real estate was shot down in parliament – one of their few good deeds this year- VAT is reduced from 16% to 12%. Miss tax reduction is a no go subject- Executive shuffles in blue chip companies. miss- Co-operative Bank is listed on the Nairobi Stock Exchange Miss- Celtel rushes the NSE Missin fact they exited the bond marketUnresolved Safaricom IPO opens just before the elections. Whiff ??? EDUCATION: - Free primary education continues to be a shining success Hit all candidates have promised free secondary as well- Three new universities start offering degree courses. Hit more than three got licensed in the booming higher education sector- Teachers again draw the government into a salary dispute miss election year government paid them their dues- JKUAT opts for a new name to reflect its entrepreneurship and technology brand. miss but it should happen right?...ENVIRONMENT: - Rivers dry up and Mt. Kenya and Kilimanjaro lose their snow peaks. Miss but …. - Torrential rains cause mudslides, flooding, and destruction of infrastructure Hit- A mandatory tree planting policy is reintroduced missFOREIGN AFFAIRS: - Nairobi hosts peace talks on Congo, Somalia, and Sudan. Whiff talks were held in other countries- Uganda and Rwanda formally complain about infrastructure and bureaucratic delays in Kenya. Whiff only Museveni complained informally- The US announces the withdrawal of troops from Iraq. MissHEALTH: Minister Ngilu’s social medical scheme is revived. Miss though she was fired and now promised that an ODM government will reintroduce itENERGY: Significant oil deposits are found in Kenya Miss If Total Man didn’t find oil, is there any? INFORMATION AND COMMUNICATIONS: - A second national operator starts operations with a focus on mobile and fixed wireless services in urban areas. Hit France Telkom also gets a wireless license which will be a big part of their offerings- Work on EASSY submarine cable starts after Kenya gets its way on issues WhiffKenya building her own cable- Econet finally launches, but there are doubts about its success. Miss shareholder disputes resolved, but no launch- A project to computerize land title deed registration is launched. misse-government is still only on paperJUSTICE AND SECURITY: - Insecurity rises partly because of heightened political activity Hit- Judicial reforms and reformers are in the spotlight Miss- Kenya gets a female Attorney General. Miss AG entrenched after 17 years in office - Wealth declarations are leaked Miss though one presidential candidate has release his voluntarily- Tom Cholmodley Delamere is acquitted. MissLOCAL GOVERNMENT: - Local government under pressure to make it easier for business’ to operate but councils oppose proposals to scrap some licenses. Hit- The government, recognizing the informal businesses and introduces new licenses, taxes, and building standards for kiosks. Missthough they built markets for ‘hawkers’ and will collect fees- Nairobi City Council calls for the annexation of Nairobi National Park for urban development and settlement. Missbut the park is not safePARLIAMENT: - Few laws passed as election fever sets in. Hit- Parliamentarians initiate internal reforms and promise to work harder and for longer hours. Miss wishful thinkingTRADE AND TOURISM: - Trade with China dramatically increases. Hitthough imports in and investment into Kenya rise much faster than exports- Kenya records the largest number of tourists in a decade. Hit- New outsourcing companies are set up. whiffTRANSPORT: - Rift Valley Railways operations off to a slow start. Hit companies are complaining, but it’s a Herculean task to revive the railways- Mbagathi Way is opened. whiffroad in use, but incomplete- Matatu owners sign a safe-driving pledge with the police commissioner. Miss wishful thinking- A pothole causes a major road accident, reminding the nation of the cost of bad roads and the need to speed up road repairs. MissthankfullySPORTS: - The Mombasa cross-country is a well-managed event, while an equally successful Safari rally is organized as part of the African series, securing the Kenyan event world rally status thereafter. Hitcross country was an internal success thanks to Kenenisa Bekele, but Kenya is not back on the WRC map- Michael Schumacher resumes racing by joining a minor Formula 1 team in the middle of the 2007 season Miss but he resumed testing for Ferrari and racing in taxi’s- FIFA promises to have some group games of the 2010 World Cup played In Nairobi MissECONOMY: - Government borrowing remains stable owing to consistent tax collection and reduced corruption. Hitbut borrowing is creeping upwards- The public & private sectors hold a forum to agree on a formula for measuring the rate of economic growth. whiff only debate is between political opponents- The role of donor aid comes under scrutiny as activists question their legitimacy as Kenya’s development partners. whiffonly debate is between political opponents- A public watchdog heavily censures the expensive lifestyles of NGO bosses., while other crusaders call for Rwanda-style cutbacks on public expenditure especially the use of high cost 4-wheel-drive vehicles by civil servants. Missonly Maina Kiai is at workREAL ESTATE: - Kenya endorses a new low-cost housing design of KSh73, 000 ($1,000). Missdevelopments confined to high end housing- A foreign bank takes over Housing Finance Missthough local upstart Equity Bank buys 25%- Water, sewerage, and electricity crises hits Nairobi Missthough electricity prices will go up next year as electricity reserves get dangerously low POLITICS: - Presidential and parliamentary aspirants range from chief executives to religious leaders and people famed only for their notoriety Hit- Several high profile leaders defect from their political parties, which they perceive as “unelectable”. HitTuju staying strong- A number of opinion polls, some dubious, are launched but Steadman remains the most accurate forecaster of political events. Hitbut even Steadman is feeling the heat- One-half of the Artur “brothers” resurfaces in West Africa. Whifflurking in Sri Lanka- The vice president’s office is expanded assuming greater significance Miss VP often overshadowed by the Justice Minister- Some forward thinking banks start to finance viable c a n d i d a t e s MissUnresolved - The country holds peaceful general elections. whiff- True to Kenya’s historical trends, the incumbent carries the day whiff- A majority of ministers and MP’s lose to savvy challengers looking like a hit
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0:19
From: bankelele
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Yesterday was the day the Safaricom IPO was to start, but not a word came except from the courts. The prospectus could be out today, so there could be hope. Still the market needs a huge outlet to drain all the excess investment liquidity in the country. So far, everything offered is oversubscribed from company placements IPO's, to corporate bonds – with the Diaspora, foreign investors, local institutional investors, fund managers, co-operatives, banks and retail investors all chasing the same investments. The latest was the Diamond Trust Bank rights which were oversubscribed by 178% One controversial issue of Safaricom is the 5 – 10% owned by Mobitelea, which has been extensively discussed in the media and among blogs. However it would be surprising if that shareholding still existed, and surely that embarrassing matter has been sorted out by Vodafone either by swop's or other payments. Bank developments- Corporate rebranding at KCB at their website (formerly kcb.co.ke) is now kcbbankgroup.com - shedding the Kenyan connotation which would be a burdensome sell in the region with branches in S. Sudan, Tanzania and Uganda. - Equity bank has received more approvals from CBK, NSE and CMA for their recent deals. In addition Helios (who are buying 25%) of the Bank have been exempted from the banking act provision that a foreign non bank cannot own shares in the country (until 2016) - Imperial bank has ventured into Shariah banking with a product called Imani while giant Standard Chartered also considering venturing into Islamic banking. - The Baraka Fund has taken over the country’s smallest bank – City Finance stockbroking- The NSE has announced that they have fully paid all Francis Thuo client claims as at November 30 2007 - CFC Bank is looking for stock agents in all provinces of the country. –NIC Bank's takeover of Solid Investment stockbrokers has been approved by the Minister of Finance. real estate- Business daily looks at real estate investments in the last year and their profitability. - Regardless of who wins the election, budget deficits are a sure thing and interest rates should rise in 2008 – affecting mortgages, most of which are not at fixed rates- New hotels: planned developments include seven coves in chumani kilifim while the Delamere farm will set up ecotourism camp at soysambu ranch insurance: – After insurance companies beat a retreat from insurance sector three years ago, citing fraud and the collapse of medical plans, there's a mini comeback now with First Assurance going after AAR in a partnership with the Nairobi hospital association. – The association of Kenya insurers has announced that from next year all premiums must be paid before any cover is provided opportunities bottle shortageA sign of changing trends as people seem to have forgotten that they have bottles at home. And now the bottlers want them back and are willing to pay cash for you to scrounge around the houses and surrender their empty bottles. - beer bottles: east African breweries buying them back at 17 shillings ($0.25) per bottle and 335 sh per empty beer crate to uchumi and nakumatt supermarkets. Nakumatt will pay cash while uchumi will pay in vouchers for shopping at that store! - soda bottles Nairobi bottlers (a coca cola franchise) is buying coke, fanta, sprite bottles (300 and 500ml) at 10 shillings each, and empty crates at 100 sh. awardsKenya national commission on human rights 2008 human rights & democracy awards: milele (lifetime achievement), firimbi (whistle blower), umma (public body), utumishi (police), urekebishaji (prisons), utetezi (civil society), mashinani (community based), habari (media), jitolee (business) and special category lochiel@knchr.org or bwire@knchr.org Africa Investor : Tourism Investor Awards: Tourism Investment Programme of the Year, Sustainable Tourism Investment of the Year, Business Resort of the Year, Best Initiative in Facilitating SME Tourism Investment, Tourism Promotion Agency (TPA) of the Year, Hotel Investment of the Year, Hospitality Management Team of the Year, Tourism Investment Advisor of the Year, Business Airline of the Year, 2010 Legacy Investment of the Year, Business Travel Insurer of the Year. Deadline for the entries is 11 January 2008. jobsfrom the daily papers last week- Chief executive; constituency development fund board - Daystar University deputy VC finance, administration & planning. Manpower 14/12 – CEO at the troubled East African Portland cement company - Fly 540 airline: looking for captains and first officers for ATR 72, Dash 8, Fokker F27 and BAE 146 aircraft - KISS FM: creative writers email gm@kissfm.co.ke - K-Rep Bank: branch managers, operations managers, advances managers, advances officers, apply by snail mail - D/L 19/12 - Kenya pipeline: helicopter pilot, senior accountant, internal auditor, senior internal auditor, senior IT officer, D/L 21/12, apply by snail mail - Financial management analyst at the world bank - Nairobi
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2:07
From: bankelele
Read This Entry & More At bankelele
Continuing on the expense tracker series, as well as writing on urban inflation and spending. index After trying various online expense tools, I fell back and used Microsoft Excel to track expenses by a simple spreadsheet. It's easier because I can work offline to add entries unlike the online offerings - and so far I have five months of data, tracking discretionary spending. These are payments made voluntarily – not statutory ones like taxes, pension, loan repayments of which I have no control. The numbers less than 1 %- other expenses0%: These are various uncategorized or one off expenses that don't full into any category - Bank charges 0%:There are actually higher but since I am on a flat rate account plan, only pesa point charges appear on the radar. Recreation 1%: Very low, but I have avoided the golf course so far this year Education 1%:only registration fees for 2008 and will be much higher next year Personal 1%: haircuts etc. Repair 1%: no car service done yet owing to very low mileage over the period (more on that later) Clothing 1%: Men don't shop for clothes, but this will actual be proved incorrect later Newspaper 2% - shockingly high. When you realize that you've spent a few thousand shillings on newspapers in just 5 months, the daily habit of reading newspapers seems rather expensive, for information that is available through so many other means. Communications 3%: Again, men are different than women I'd argue and our Safaricom/celtel costs are much less for men than women in the same occupation. In fact a typical bill airtime unit will be spent as follows 50% text messages, 25% phone calls, 25% phone Internet browsing & e-mail). Cyber cafe charges also fall under this category. Groceries 3% : rather high considering that groceries/food are not in my docket. Electronics 3% one off purchases Utilities 3%: water, electricity can remain low if you know what to look out for and understand/adjust your habits. Investments 5%: The figure is much higher but this only captures discretionary, not automatic investments and share repurchases. Dining 7%: like with newspapers, another shocker, because a lot of it is so unnecessary and could be easily avoided and should be reduced. Drinks7% The reason EABL will over time make more money than Safaricom, and why you should buy more shares. So much of our social life, and networking in Kenya is fueled by a round of drinks. Co-related expenses Transport: Early on in the first month i realized that car parking was going to be a major unnecessary expense, while driving to work was sometimes inconvenient (leave early & return late or sit in traffic with 100,000 other cars ) - so i chose to use public transport more - and relax, read, watch music videos etc. and leave the driving headach to others. Also with the increasing cost of petrol (89 shillings [$1.40 ]per litre this week) this week, and with further increases expected, driving is an evening and weekend activity. The low mileage means no car service incurred, despite pestering calls from the garage/mechanic. Results are over the months are Parking 2%, Transport 4% (matatu/citi hoppa/KBS – but also some holiday travel) and Fuel 7% . Relatives: men don't shop for themselves, but adding up the cost of giving in cash and kind tends to others can add up - and I had no idea it would be this high. Gifts 2%, Charity 4% and Family 5% means 11% is going out - mostly to relatives. Rent 39% : You could argue that this is not discretionary, but it is and shows why i can't afford a mortgage now, which will cost about another 20% of my funds. Off to next year, and to capture increased education and recreation expenses some things will have to cut back. Job offer From wazobiajobs.com: a job with Cisco Systems as a Global System Integrator Channel Account Manager in Nairobi.
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2:39
From: bankelele
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Today's debate on the KISS 100 morning show was whether the Safaricom IPO should be postponed to next year. No dates have been announced but it was (and still is) widely expected to kick off on December 10. Those in favor of a delay rightly argue that most Kenyans struggle from December to February with holiday bills (extra food, travel, gifts) and school expenses (in addition to January fees, there are new uniform and book costs as well) and their little savings will not be available even for this much anticipated IPO They also argue that the December 27 election will be a distraction to investors who will be out of Nairobi. Those in favor of the IPO taking place in December that, the fewer buyers the better, since it will be over-subscribed anyway and this will just give investors a slightly better allocation. They also argue that they have saved for this and should be rewarded for their efforts at being prepared for the IPO. Readiness factors - The market is ready, and no marketing will be necessary for this IPO. Investors are ready to buy now, then deal with what they bought after. - Timetable will be tight, but other countries are able to do it. Giant Indian bank ICICI's June '07 IPO ran for only four days and was over-subscribed on the first day. - Stockbrokers say they are not, and have asked that it be delayed till next year, but they'll just pay their staff extra to work overtime during the holidays (and hire temps/interns to plug the gaps). - Banks have abundant liquidity and will have loan packages towards the IPO to lend out the day after any announcement is made - A local financial firm CCS Financial solutions (not to be confused with CFC Financial services) has come up with a financing product (in conjunction with ABC Bank) that will also deal with the inevitable refund cheques. (Read more at Nairobist) - A correction: NSE Chairman Jimnah Mbaru is not contesting for the Starehe seat in the upcoming elections. verdict: As with Kenya Re, I advise readers to by pass IPO's - but what are your views, to go ahead or not?Turbulent 2008 - Could liquidity be drying up in the world credit markets? - Is there any fundamentals behind the high price of oil, or is it only the fear factor?
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7:37
From: bankelele
Read This Entry & More At bankelele
– Cement index: There was a Nation story today about new faces and other giant killers who knocked out several prominent members of parliament in party nominations last month. However some signs were on the wall for non-performing MP's; cement industry people could tell which MP’s are likely to survive/be thrown out on election day (December 27) based on how much cement a constituency CDF has bought – an indicator of how development minded an MP has been over the last five years. – Nairobi City had been transformed hawkers everywhere, undoing all John Gakuo’s hard work. One group I’d not mind seeing are the fruit vendors at a time when Uchumi is selling imported tangerines at 350 shillings ($5.50) per kilo and oranges at 160 per kilo from South Africa. – Pesa Point should relocate their kileleshwa ATM from the Kasusku center where it is not accessible after 6:30 PM – to the police station across the street where it is equally safe, but can be accessed 24/7 like all other pesa point ATM's. – A stockbrokers office is up to no good again - messing around with clients funds & shares, and making unauthorized sales without informing investors. Diligent investors who discover the anomalies are told they are ‘errors‘ which will be corrected. – Exam markers for KCPE essays say they can tell the difference between academy and public schools students - The differnce in quality is so stark with academy kids way ahead. – It seems pretty woman liaisons that start on the beaches of Mombasa now end with afternoon shopping trips at Nakumatt Nyali for groceries. - Local pubs watch out most Nairobi butcheries are are shortchanging buyers of roast meat. I always knew it - but how can you prove it without looking cheap? If you argue before cooking, your order is going to be messed up, but if you wait to complain after you see the roast meat on the table, you’re too hungry to refuse what's on offer. Business briefs – Allahabad Bank (of India) is looking to acquire a small to mid-sized bank in Kenya or Tanzania. – Cooperative Insurance Company has extended its private placement from November 23 to December 31. The placement needs more publicity as every new investment officering this year has been over subscribed - from bank rights, to new bonds and IPO’s – Standard investment bank partnered with the National bank of Kenya to offer stockbroking services through NBKL branches. Are insurance companies watching this – how their stockbroking siblings are using banks to penetrate into rural Kenya? – The World Bank will seek to mobilize the African Diaspora towards partnerships to develop the continent. More than 1/3 of Africa’s highly qualified human resources are presently in the Diaspora and most are unlikely to return to the continent, but do remit $4-6 billion per year and a significant number of professionals from the continent are cu. One of the proposals is for the WB to work with the African Union to create a Diaspora Remittances Investment Fund. - The Cheetah index business site has been launched by African Path – Nakumatt Kisumu is now open 24 hours daily - Safaricom and EABL had better hurry up with their Christmas promotion competitions Local media - Along comes K24, Kenya’s first 25 hour new channel. According to the People newspaper it is backed by Regional Reach mogul Rose Kimotho and it will use Kenya Broadcasting Corporation (KBC) to distribute its signal as part of a private/public partnership. K24 will also see the reemergence of Jeff Koinange last at CNN and other local media exiles. Morning shows have been American broadcast network cash cows for years – and now they have come to Kenya. NTV started it off with NTV this morning which has been running for about two months, and last week Citizen started their own called power breakfast. They have to generate more content to fill up the 3 hours. - Needs content; I was initially a fan and fell for the beautiful scenery of NTV’s Cobra Squad but now can’t stand the monotony and repetition - (5 min) car chase, cop blunders (5 min) foot chase, twist in story, (5 min) car chase, gun fight, (5 min) car chase.......
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