Two years ago I placed small advertisement in the newspaper to fill a secretarial vacancy. Twice after that, the job holders found better jobs, so I had to do it again - a year ago, and also this February. Within a week of each advert, almost twenty applications were received.
Two years ago, almost all applicants were university graduates; for the second ad, about 2/3 who responded were graduates and this time - of the 20 applicants received in the first week, only half were university graduates. Does this mean that there are better opportunities for graduates? Or they feel better about their prospects that they won't accept an entry-level job these days. Good times and more opportunities I hope for them
The results of this were a quick experiment. But a caution here; if you apply to a job at high profile company, it may take up to two months (or never) to be called in for an interview or sent a regret e-mail.
jobs
from the daily papers
African development bank (ADB) (Nairobi): Macroeconomist, agriculture expert, infrastructure specialist, procurement assistant, disbursement assistant, IT & telecommunications assistant, administrative & financial assistant. Apply to the resident representative, Kenya country office 4861-00200 Nairobi
Alliance for a green revolution in Africa (AGRA) [ supported by the Bill & Melinda Gates and Rockefeller foundations]: - which will be headquartered in Nairobi, and program operations will be implemented by a supporting organization - program for a green revolution Africa (ProGRA) - also to be based in Nairobi
Executive director, evaluation & learning officer, program officer(for education & training for crop improvement), director for strategy & learning, program officer (for crop genetic improvement & farmer variety adoption), program officer for (agro-dealer development) [2 positions], policy officer, communications officer, program officer (financing seed production systems) apply through KPMG Kenya at agra@kpmg.co.ke by 23/3
Software developers at credit reference bureau Africa (CRB Africa) . Apply online by 31/3
Senior program officer Kenya at DFID. Apply through adept systems recruit@adeptsystems.co.ke by 14/3
Kenya Anti Corruption Commission: Accountant, forensic investigator III (tax expert), forensic investigator III (audit expert). Apply to the director 61130-00200 by 16/3
Related - the Kenya Revenue Authority is hiring detector dog instructors and detector dog handlers. D/L is 23/3
Nairobi Java House limited: general manager, coffee division manager, and HR manager. Apply to hr@nairobijavahouse.com by 14/3
Safaricom: Simu Ya Jamii Area Manager, Simu Ya Jamii Administrator, Network Monitoring Centre (Nmc) Shift Technician, Senior Tax Accountant, Principal ERP Developer, Principal Business Analyst, Data Services Planning Technician, NMC SSS Senior Engineer-OM Senior CRM System Developer. Apply online
Serena hotels: marketing manager, e-Commerce Manager, sales executive, IS Manager (Kigali) and sous chefs. Apply though Hawkins associates - hawkins.asssociates@khigroup.com by 14/3
other bits of news
advertising Capital FM (98.4) are for the second year running their Image plus promotion that offers medium size companies 120 30 second radio advertisements over the course of one year for about 1.4 million shillings – inclusive of production costs.
affirmative action: In public procurement & disposal, preference will be given to local contractors & suppliers exclusively for goods/supply contracts of less than 50 million shillings ($710,000)shillings and Kshs. 200 million ($2.85 million) for works procurement.
- Bidders will also enjoy a margin of preference of 15% if supplies used are sourced in Kenya
- Bidders will also enjoy a margin of preference of 6% where local shareholding is less than 20% and 5% for shareholding between 20% and 50%
aviation tourism revival continues with airline licenses renewed for air Italy, Neos, Livingston, (Italy - Mombasa / Zanzibar), Fischer (Poland - Mombasa), Malav (Hungary - Mombasa), and Edelweiss (Switzerland - Mombasa)
coffee: An expo will be held on March 8th at Serena - facilitated by the export promotion council
housing: the government will put up 400 mixed housing units in Mlolongo - Athi river Kenya slum upgrading network in conjunction with UN Habitat (Mavoko for middle and low income housing)
investor seminar: Strathmore University – SIFE Team will hold an investment conference dubbed Smart NSE Investments 2007 on Saturday, 3rd March 2007 from 8:30am – 4pm at the university auditorium. Charges are KSh.100 (Exclusive of Lunch)
media training: The 5th Eastern Africa Media Training conducted the Inter Region Economic Network (IREN) will take place in Nairobi between March 14 - 16
security: serious stuff on the Somalia Coast where another ship (MV Rozen) was hijacked by pirates this week
- Kenya to buy patrol boats to secure the waters of Kenya and the port of Mombasa
- (kizingiti, siyu, mokowe, kiwayu) patrol bases in Lamu have been upgraded to be police stations
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Improved opportunities for graduates
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Savings accounts that save
» bankelele New changes to banking act forbid banks' from imposing charges on savings account holders as long as they maintain the minimum balance. This will promote a culture of savings, which is important even as real savings rates are negative.
(Here's a snapshot (PDF) of some of these charges from 2 years ago
This week, I closed a savings account because, when I got my (half-yearly) statement, I realized that they had been charging me 200 shillings ($2.9) a month. Even as I opened a different savings account within the same bank, the account rep. said, despite my protests, that the new savings account would attract a 25-shilling per month fee. I also got dinged 300 shillings for transferring the account.
No bank has yet come out and declared how they would abide by the new rules, but it takes long to right a ship and it will probably take a few months to rework their savings products with new brochures, IT codes & account parameters.
Of the last few years savings accounts have become hybrid account that have ATM cards, visa cards, electronic banking & SMS access etc. - all of which banks could extract a fee for the extra services to account holders.
To comply with the changes, banks are likely to come out with plain, no frills savings accounts. They will adjust the minimum fee appropriately but have no more ATM cards or extras - just money sitting in the bank earning intrest, and not reduced by bank charges. -
Technological graveyard
» bankelele I'm looking to replace my current laptop which still works okay but looks to be an outdated dinosaur (Windows 98, Office 2000, 2 GB hard drive, 48 MB RAM, Intel-MMX, floppy disk and CD-ROM - which I used primarily for MS Encarta and MS Flight when I bought the laptop, has USB ports – but can’t read flash disks)
Now 6 years later, I am looking at much improved specs machine (40 GB 512MB DVDrw, 1.7GHz, no software). It's not state of the art, but that would be too expensive and computers have a short technological half-life.
I was thinking of all the gadgets I have used and discarded in my lifetime - communications (answering machines, pagers, cordless phones, car phones, modems), music (LP's, real player, cassettes, mini discs), entertainment (VHS, gold disks, camcorders, hand-held video games, still camera) etc.
Who knows which of the items we use today - laptops, DVD's, satellite dishes,- will be around in 6 years time. E.g. is dvb-h the future for TV's? - only time will tell. -
New newspaper
» bankelele A newspaper is the latest project by the team behind hit radio stations Kiss FM and and Classic 105.2.
Newspapers in Kenya are still doing ok, while in the developed world they are in a bit of a struggle and it has been predicted that newspapers in the developed world may cease publication around the year 2040.
The last new non-tabloid launched was the weekly Leader from Royal Media in 2005.
The new newspaper is currently hiring writers through advertisements on KISS FM. -
Track your spending
» bankelele I have Quicken on my PC but I have been on the look out for a web based free tool to track my expenses. I came across this timely post from lifehacker from which I discovered buxfer and clearcheckbook.
Both sites meet my expectations and are great tools for creating and tracking budgets & spending, though so far I prefer clearcheckbook because it is quite similar to quicken, while buxfer is more appropriate for group spending and shared resource tracking.
beauty of 2.0: Both sites added Kenya shillings within 12 hours of my emailing them this request and I am now able to see where most of my weekly money goes.
Another list of budgeting and financial resources.
Local Opportunities
Jobs
from the daily papers this week
Investment officer at Agence française de développement (AFD). Apply through PWC at ess.ke@ke.pwc.com by 9/3 (Ref ESS 409)
Amity software IT professional (.net, SAP, java, oracle DBA, data warehouse, QA) to work in USA. Apply online by 18/2
Financial advisors / financial planning manger at British American Asset Managers. Apply to BAAMHR@baam.co.ke by 28/2
Assistant manager sales & marketing at the carnivore. Apply to carnivore@carnivore.co.ke by 22/2
Associates at Deloitte consulting: (must have 10 years consulting and work experience). Apply to associates@deloitte.co.ke by 5/3
Regional communications officer at IUCN. Apply to earo@iucn.org by 7/3
Kencall: senior account managers, trainee managers, human resource manager, experienced recruiter, telesales representatives, customer care tele agents, and (IT) project coordinators. Apply online.
Kenya Airways: product & in-flight services manager, marketing services & advertising manager, catering & duty free manager, in flight product executive, corporate branding executive, corporate card executive, flying blue service centre manager, CRM product & service manager, customer care manager, corporate communications manager. Apply to the group HRD 19002 Nairobi by 27/2
- CRM & E-commerce data analyst, cargo capacity & revenue executive, systems administrator, project coordinator (civil engineer). Apply to the group HRD 19002 Nairobi by 2/23
Kenya wine agencies limited: Tax accountant, Internal audit assistant. Apply to HRM 40550-00100 by 28/2
lake Victoria regional authorities cooperation: information & communications officer, project assistant. Apply to secretarygeneral@lvrlac.net by 24/2
Business development & marketing specialist at Land O’Lakes. apply to lolkenya@landolakes by 23/2
chief financial officer at Must garment corporation. Apply to jobs.CFO@MustGarment.com
Property Manager at Safaricom. D/L 23/2
Simba colt motors: financial controller, senior accountant, internal auditor. Apply to jobs@simbacolt.com by 2/3
Suntra investment bank: Managers – investment banking, research & development manager. Apply through manpower associates p o box 50736-00200 Nairobi by 26/2
Sales professional at UAP insurance for Uganda Sudan and Kenya. Apply to uapinsurance@uapkenya.com
Unicef: Writers/editors on children’s issues, photographers, artist & illustrators on children’s issues. Apply to kenyahrvacancies@unicef.org by 9/3 -
Are unit trusts for you?
» bankelele There was a story in the story in the Standard about unit trusts this week.
At the beginning of the year, I considered stepping away from the NSE, cashing in my gains and putting the money in a unit trust. But a conversation with a custody manager put me off this path. He said that with the management fees at unit trusts were too high for individuals, implying that individual investors not see significant gains unless the trust had exceptional returns.
Certainly any investor familiar with the myriad Kenyan and African investment blogs and sites such as Cold Tusker, First Global Select, Kenya Capital Investments, Mwasjad, Nairobist, Outfoxed, Pesa Tu, Riba Capital, Stockskenya, Odeglenyang, Investing In Africa, Kenyan Entrepreneur, Hisagal, Gathinga – could be more informed as any unit trust investor.
Unit trusts
Approved Collective Investment Schemes in Kenya are:
1. African Alliance Kenya Unit Trust Scheme: Kenya Shilling Fund, Kenya Fixed Income Fund, Kenya Managed Fund
2. Old Mutual Unit Trust Scheme : Equity Fund, Money Market Fund, Balanced Fund
3. British American Unit Trust Scheme : Money Market Fund, Income Fund, Balanced Fund, Managed Retirement Fund, Equity Fund
4. Stanbic Unit Trust Scheme: Money Market Fund, Flexible Income Fund, Managed Prudential Fund
5. Commercial Bank of Africa Unit Trust Scheme: Money Market Fund, Equity Fund -
Death of a Stockbroker Part II
» bankelele See Rogue broker alert and Death Part I
Francis Thuo (FT) stockbrokers have been suspended from the NSE for 14 days. Once this story is over, succession issues are likely to be blamed since the firm’s leader and visionary chairman passed away last year.
need more info: This month the Nairobi Stock Exchange launched a new site that is much improved with more news and features, but their sister regulators' CMA site appears not to have been updated in a year.
The FT story is one which the CMA should be on the forefront reassuring investors. We have seen reports on TV several times over the last year that insider and suspicious deals would be investigated, but no reports have been released or repercussions seen.
For shareholders, the process of transfering share accounts to other brokers was supposed to be seamless and shares should be safe if verified using CDS statements. It appears some FT clients were aware of FT liquidity problems and opted not to sell shares through the firm (and be issued with cheques which would bounce).
During the 14 day suspension, a deal is likely to be worked out to salvage the company, though after getting such a bad rep, customers are not likely to sign up unless FT relaunches under a new name, brand and service oreintation. One other brokerage was up for sale last year, but it would not attract any investors since its reputation was so poor. -
Battle for Africa Online
» bankelele Telkom (South Africa) looks to emerge the winner in the battle for Africa Online after the African Lakes board (parent company) have accepted Telkom (SA)’s bid of £9.72 million (£25 per share) beating out Africa Telecoms Company (ATC) [which comprised Wananchi Online, Schneider Media and East Africa Capital Partners] who had offered £5.04 million (£18.50 per share)
While ATC had commited to move the company headquarters to Naiorbi, Telkom have not indicated their intentions for Kenya, as the Ethiopian and Malawian operations will be disposed of.
Meanwhile ATC will go ahead with its plans for laying out consumer broadband infrastructure to Kenya and other pan-African markets. -
Giant in pothole
» bankelele Mugoya Construction Company has been placed under receivership by their principal bankers KCB.
- Earlier post.
- How a receivership happens. -
Land Rent Crackdown
» bankelele Defaulted land rents due to the Ministry of Lands will now be collected by the Kenya Revenue Authority . Previously KRA has dabbled in collections of local rates for the Nairobi and Mombasa cities but will now collect defaulted annual ground rents/rates due with penalties, for defaulters after each January 31, clearly spelt out as follows:
- July 2005 to date: 12% p.a. or 1% p.m.
- Jan 2001 to Jun 2005: 24% p.a. of the outstanding rent
- Jan 1996 to June 2000: 12% of annual rent
- Prior to 1995: 50% of annual rent
Payment can be made through KCB NBK and Co-op bank branches. -
Bank eX Files
» bankelele 
I remember watching the X-files when it was the show to watch. The agents would enter a dark warehouse or factory. They would whip out their flashlights and find their way through an abandoned building, tearing down huge cobwebs, wiping away dust, and peering under covers in search of a deformed skeleton or alien foetus.
That’s one the last unpleasant tasks of a bank hangman which is what I was doing today - minus the gun, courage, cute co-worker, and aliens of course.
Today we did the same thing, starting with opening many padlocks at the entrance, covering our noses with handkerchiefs, removing any light-colored clothes and stuffing our socks into our trousers before we entered this warehouse. My handy Nokia phone comes with a torch which proved to be useful as the place is dark inside even at noon.
We have heard gallant tales and applaud the efforts to revive companies like Kenya Meat Commission. But this is how the revival all starts - with bank workers breaking down locks they had put up years before as we take yet another round of prospective buyers to visit/inspect the abandoned property before they submit any bids.
The skeleton these agents are looking for is not hidden. Even as we move through the dusty place with torches and noses covered to keep out the dust we are looking at the skeleton of someone’s dreams - the building which they put up, the new machines they imported from South Africa & India (state of the art then, outdated scrap today), the managers suite they decorated, faded door signs around the well laid out premises marking rooms like productions, manager, bathroom, sales office where people would busily work towards realizing the full potential of the owner's dream.
Today it’s just a skeleton. But if the buyer likes the skeleton enough to put some money down, someone else's dream & vision will rise again over the skeleton of someone else's.
Mlolongo: As we drove past mlolongo yesterday there was a bulldozer knocking down a controversial petrol station built on the road reserve. Further down the road other buildings marked for demolition were beehives of activity with work men doing more demolition work. The owners' of these building have heeded the government’s directive and are removing their buildings at their own cost, and with a chance to salvage their stone and material.
But many are not abandoning their dream projects; – they are instead only shaving off about 10 ft of each building that they deem to have encroached on the road reserve, and hoping the rest of the structures will stand on their own. I hope they will be proved right in their assessment because when the bulldozers are done, there won't be any ex-file's for the bank to revive.
December 1 opportunities
Telkom dealership: resellers for Telkom’s 3G wireless service (fax, voice, internet) in Mombasa, Kisumu, Eldoret, Nyeri, Nakuru, Meru, Muranga, Kakamega, Voi, Kisii, Kericho, Thika, Embu, Malindi, Nanyuki, Garissa and Machakos. D/L is 5/12.
Water distributors for Ha Ha drinking water, nationwide.
housing: Satellite City - a low cost hosing estate compositing 265 units will be built in mlolongo athi river
Jobs
Various jobs at abbott site
Chief executive (& secretary to the board) of the Association of Micro Finance Institutions (AMFI) . Apply to info.amfikenya@africaonline.co.ke by 8/12
Legal officer at Del Monte. Apply to nanasi@delmonte.co.ke 13/12
Public affairs officer at the Canadian high commission. Apply to nairobi-competions-concours@international.gc.ca by 8/12
energy company involved in hydropower and geothermal development: petroleum geologist petroleum drilling engineer, exploration geophysicist, financial analyst, financial auditor. Apply thru PWC at ess.ke@ke.pwc.com by 15/12
I&M Bank: apply online for cashier & teller positions.
Brand & communications manager at java. Apply to hr@nairobijavahouse.com by 13/12
Kenya Wine Agencies Ltd: trade marketing representatives, information & communications technology manager. D/L is 13/12
Ministry of State for Youth Affairs
- Section officer II (500 posts)
- Technical instructors (61 posts)
Apply to the PS P O Box 34303 Nairobi by 8/12
Postbank: senior manager marketing & business development, database administrator, legal officer, internal auditor, inspectorate officer. D/L is 18/12
Safaricom: retail centre manager (Nairobi), retail centre agent (Nakuru, Eldoret, Mombasa, and Kisumu). Apply to hr@safaricom.co.ke by 8/12
Senior economist at the World Bank - Sudan. D/L is 11/12 -
Informing the NSE public
» bankelele Read an article from the Washington Post where the Chairman on the US Securities & Exchange Commission, Christopher Cox, is intrigued by the idea of using blogs to disseminate important corporate information.
"A 2000 rule known as fair disclosure ended a long-standing practice of companies providing significant information to stock analysts and other Wall Street insiders ahead of the public."
Monday’s naked insider manipulation of Citi Trust shares should have been a wake up call for NSE on information and rules for prices and trades. Watch to see if there’s any recall or punishment stemming from the ill-fated trade.
This is very important because currently pension funds, Kenyans in the Diaspora, farmers and other new investors are all stepping into the market and things like the Citi Trust fiasco tend to undermine our confidence in shares. The share splits of EA Cables and ICDCI were self-fulfilling prophecies – share price shoots up about 6X in a few months, leading directors to announce splits to make them more affordable.
”when you attract foreign investors, you also attract criminals who specialise in economic crimes” – Tommy Prins of Deloitte
Related NSE needs EDGAR
New age for investors
The Nation’s Weekly Advertiser interviews the brains behind Eight.co.ke, Jijini Marketsand Stock Detective who offer financial information on activities at the Nairobi Stock Exchange. Pick up this weeks' free copy of the newspaper around town in Nairobi and hopefully the story will appear soon on their website. (ed: none are affiliated with the NSE)
Upcoming @ NSE
- Barclays Rumour: The Bank will announce a 5 for 1 share split and a 1 for 38 bonus. Note: I don’t own any Barclays shares
- Riba Capital tips on the next Mumias offer.
- Family Finance Building Society will offer 15 million new shares to account holders at 60 shillings each (minimum placement is 30,000 shillings). The ongoing offer runs to the end of the month and may overshadow the, rather low key, Eveready IPO (which starts next Monday) in the same way Equity Bank’s listing stole the limelight (and perhaps investor cash) from Uchumi’s re-capitalizations earlier this year.
Family Finance mimics Equity which also raised 500 million shillings in capital in August 2005. FFBS was expected to be a licensed as commercial bank by June 2006 but that has likely been delayed by the Central Bank until they shore up more share capital. -
Bridgestone Exit?
» bankelele One theory for the massive volumes of Sanmeer Africa (formerly Firestone) shares traded at the is that Bridgestone is finally disposing of its 14.9% (41 million shares) it still holds in company almost two years after the partnership break-up. -
Shortages
» bankelele Cement
Caused by unexpectedly high construction demand around the country and with cement companies already producing at full capacity.
Financing
For the missing middle. Many banks claim to have financing products for SME sector, but the collateral, and other borrowing requirements are too rigid for many deserving applicants.
Good stockbrokers
A very lucrative business (1.5% commission per trade) with restricted membership, but with hundreds of thousands of new customers (from Kengen, Scangroup, Equity and Kenya Re IPO's) why not license more players to enter the sector and serve these new shareholders?
Water
There’s a water shortage this week in some parts of the city and blame is being put on water diversion to the ongoing Nairobi International Trade Fair (aka Nairobi Show) whose many activities require a lot of water. -
KCB treading
» bankelele KCB has lowered borrowing rates for a variety of retail loans by up to 5% and the move is already having a knockdown effect with customers, at other bank, asking for their loans rates to also be lowered likewise.
But for KCB, their intention is probably to accelerate their lending which has remained flat this year. From January to June 2006 their loan book is up less than 1%, compared to peers Barclays and Standard Charted whose loan books have increased by 7% and Equity Bank whose loan book increased 46% in the half year.
Card ping
CFC card account holders can receives SMS each time their MasterCard’s are used/charged.
School Finance Loans
(From Africa Intelligence )
The International Finance Corporation (IFC) will provide financing for private school institutions in Kenya, towards purchase of educational materials, and other capital expenditures under a formula which it inaugurated in Ghana last year.
On the flip side Bretton Woods Project offers six reasons why the World Bank (and IFC) should not finance educational projects -
Scangroup IPO Results
» bankelele Scangroup received over 100,000 applications of which 12,800 rejected, leaving 96,000 valid applicants
Individuals
93,000 applications
- Those who applied for 1,000 shares have been allocated 300 shares
- 10,000 get 500
- 100,000 get 1,000
- 1 million get just 3,000 shares
Institutions
2,900 applications
Who applied for up to 10,000 will get full allocations.
Employees
80 applications
Those who applied for up to 15,000 will get a full allocation.
Lesson of the day: apply as an institution if allocation has been pre-determined prior to IPO
Other
Declining money transfers
Fewer people are using Western Union to transfer money. Despite reducing their fees earlier this year, it seems more people are using alternatives and other other methods to get around the still high costs.
Wish of the day
Be like Nepal where protesters have forced the to government to reduce fuel prices. Here, notorious Koinange Street has the highest prices and the fuel stations there are always the first to raise prices, giving an indication of how prices will soon be in the rest of the City. (From dealbreaker)
Funding for Kenyan SME’s
The European Investment Bank (EIB) will contribute US $5 million to the Business Partners International Kenya SME Fund (BPI-K) which invests between USD50,000 (Kshs. 3.75million) and USD500,000 (Kshs. 38m) in small? companies.
People
- The Economist catches up with Ayisi Makatiani.
- Who is the Aga Khan besides being a major shareholder through his foundation in NMG, Diamond Trust, Jubilee, Serena and numerous other private, educational and charitable initiatives in Kenya? -
Googling out Corruption
» bankelele There was an intriguing, and sadly funny, piece on Nation TV (NTV’s 9 PM news) last night where reporter Robert Nagila called the offices of a company that has a controversial $2m tender to supply raw material to EAPC.
Someone (perhaps some directors) could be overheard mumbling what to tell the reporter who had unexpectedly called, before coming back on the line to tell Nagila that all company information, including a (Nairobi) office location were confidential matters that he would not disclose.
A google search of the company name reveals that the only mention of the company are in Kenyan newspapers and only in reference to the supply contract. Not every answer is in Google/ search engines but it gives the impression that the company was formed for only one purpose, or has only one business, which is to supply EAPC.
Compare that to the expose by Sharesleuth of a dubious company attempting to rip off investors diving into the bio-fuel craze. Yet the owners of this company, which actually exists, engaged in more elaborate side tricks, including a reverse merger, to prop up and get their shares trading at rising prices.
Google/search engine results are not perfect it goes to show that the days of briefcase contractors of the Anglo-Leasing kind may be numbered since a simple Google such can reveal something or nothing about a company and its expertise. What would have happened if staff at the AG’s Chambers had googled the names of any of the Anglo Leasing companies? And would they still have signed off on these mind-boggling contracts with international (non existent) company? -
NSE: Share split and divesture
» bankelele EA Cables split
The Board of East African Cables which has been riding high atop the stock exchange has recommended a 10 for 1 share split - 20,250,000 of par value 5/= will be split in 202,500,000 of par value 0.5 each.
Shareholders will be asked to approve this (really a formality since the Trancentury Group controls 75% of shares) at an EGM on September 1, books close on September 4, and the new shares will be listed on September 5, 2006.
This is the third company after Kenya Oil and East African Breweries to split their shares, and the others appreciated significantly thereafter. EA Cable shares have already climbed by 10% this week from 364 to 399 per share.
Intriguing, but maybe out of reach for me now since, a typical investment of 10,000 shillings, will yield only 25 shares at the current price of 400 shillings. After the split, this becomes 250 shares of about 40 shillings, which still looks promising.
Mumias Divestiture
As promised in the 2006 budget speech the Government has now began the process of divesting from Mumias Sugar Company. GoK will sell 18.04% of its’ 38.04% shareholding through an offer for sale on the NSE and parcelling the shares through brokers should be cheaper than going the mwananchi route again. As such they have advertised for transaction adviser/lead broker, legal advisor, reporting accountant, receiving bank, and PR firm to assist with the process with applications expected at the Treasury by 24 August. -
How to Change your Stockbroker
» bankelele Republished from January 2006.
Change your stockbroker – a.k.a. central depository agent (CDA) - by taking these steps to transfer a shares (CDS) account to a new broker.
1. Complete and sign CDS 4A and 4B and submit both to current and new CDA (all stockbrokers have these forms).
2. Sign account opening forms with new CDA.
3. Keep signed copy of security transfer forms for own records.
It can take one day for the new arrangement to be effective - if processed before 12 PM. Shareholders can also contact the NSE's business development department (info@nse.co.ke) or send complaints (compliance@nse.co.ke).
Also this week
- The Scangroup IPO will close on Friday, July 28.
- The Weekly Citizen reports that Charterhouse Bank will re-open on July 28.
- For the recently unemployed, here are Steve Pavlina’s 10 reasons NOT to get a job! -
Death of a stockbroker
» bankelele Amid other revivals
No stockbroker is collapsing!
Part II
The whole stock broking industry is due for a shake-up. Arguably CFC is the only stockbroker with the capacity to serve a myriad of customer stock broking requirements.
Now, one other leading Kenyan Bank has applied for a stock broking license, which is expected to be granted later this year. And if one of the big Kenyan banks (Barclays, KCB, Stanchart) decides to enter the market, this could herald the death of the traditional stockbroker.
Banks are always looking to grow their fee income and the sums are here. Imagine if every time a customer withdrew or deposited funds from his/her account, the bank earned a commission of 1.5% of that amount. That’s what a stock broking license means as brokers get paid their commission when investors buy or sell shares regardless of their investors gain or loss.
Revival
EA Safari Air: The airline will launch twice daily flights to Mombasa starting on August 1 at a price of 8,900 shillings plus tax. No response from Kenya Airways who have had a virtual monopoly on that route.
Equity Bank: The listing of 90.5 million shares of Equity Bank at the stock exchange has now been approved. listing on August 7
KBS: A few Kenya Bus vehicles are back on the road this morning. The buses are refurbished, painted over, with new seats, and look much cleaner and better maintained than when the company shut down earlier this month.
Kenya Re Another IPO expected, probably in 2007 will be that of the Kenya Reinsurance Company (Kenya Re) from www.stock-detective.co.ke.
Scangroup: IPO opens today, with 69 million shares up for grabs.
Uchumi: One month after I made, what I thought was, my last Uchumi purchase, I was back to buy some Afya apple juice. Afya is one of the brands of Kevian Kenya owned by Kimani Rugendo, a dynamic Kenyan entrepreneur and businessman, and who as a supplier, has led the Uchumi supplier’s movement that successfully lobbied the government to revive the chain.
The stores have reopened with the same euphoria and fanfare that followed the rights issue last year. The question is can this be sustained and will customers be shopping, and suppliers be stocking, at Uchumi 3 or 6 months from now?
Also, the Minister of Trade announced that an Uchumi shareholders meeting will be held this Friday at KICC. -
Ethanol for Kenya
» bankelele I was reading this NY Times article on how the US corn sector is abuzz over ethanol production with significant subsidy and incentive support from the government.
After that, I decided to google (Kenya + Ethanol) and was pleasantly surprised to find out that there are moves spearheaded by progressive Mumias Sugar (who already into electricity production) to develop ethanol from sugar. (more here).
Pipe dream or not, it’s good to get started and maybe one day Kenya can be fuel self sufficient like Brazil through local ethanol production. -
Business Briefs
» bankelele Unga profit warning
The company has issued a profit warning notifying the public that it’s after tax profit for the year ended (in June 06) will be less than 40m shillings. Six months ago they had reported half year profits of 73m, but these have been eaten away by the collapse of (debtor) Uchumi, power rationing in Uganda, and the bird flu scare.
Hello Juba
Something I learnt during the first world cup weekend - there is a Kengeles Restaurant in Juba, S. Sudan already. Also a KCB branch.
Ciao
One story the investor-mercenary-brother duo told checks out - they were involved in the construction of a low cost housing scheme in Nairobi. -
Bank Hangman Part 1
» bankelele Get into an anonymous taxi car and quietly drive towards a company’s office on Mombasa Road. You are all quiet in the car as you contemplate the mission you’ve been assigned this morning. Your weapon is contained in a new brown envelope that occupies the middle back seat of the car. It would be disastrous to loose this weapon - blown away or picked through the open window by a street thief, or to have it damaged by coffee stains or tears.
Finally you get there and sit for a minute to calm down the nerves. No need to go over your game plan again as you have discussed it several times over for days.
Doors open and team A calmly steps out, leaving reserve team B in the car. Team C and Team D are also on standby.
You stroll in to the company just before lunch time and tell the bored secretary you’re her to see Mr. Pape Badeta. And she casually waves us in to his glass office.
Pape rises to greet us; “Hi, it’s been a long time. Normally you call before you come here, you want to see the new product samples?”
“Yes, we’re fine”
On to business
“We'd like you to accept this on behalf of the company”
Pape opens the sealed envelope, and read the letter
"Oh dear"
Silence
“You’re recalling the loan?”
“Yes, can you pay the full 10 million shillings today?”
“I can’t believe it”
“I’m sorry”
“I talked to your MD last week about the company’s problems and he never said anything about this”
“Sorry, management has decided”
Silence
“Can you pay the 10 million today?”
“No! From where? you know my financial situation!”
“Ok thanks, we’ll leave now, sorry again”
Exit Building
Return shortly with team B from the car outside.
“Mr Badeta?”
“Yes” (Still in shock looking at letter on his desk)
“My name is Shilling Sing. The bank has recalled its’ loan and since you are unable to pay, they have also decided to put the company under receivership and appointed me as receiver manager. Here is my instruction letter; you are relieved of your duties. Please hand over the office keys and leave. I am in charge from now.” -
Don’t sell Kengen
» bankelele Official allocation results of Kengen IPO were published today for the shares, which start trading on Wednesday May 17.
Applicants who applied for 500 (will get 500 shares), 1,000 - (812 shares), 2000 - (1,436), 5,000 - (3,309), 10,000 - (6,431) and applicants who applied for more than 10,000 will also receive only 6,431 shares.
Already some lucky investors are planning to cash out at 30/= or 50/= shillings per share within a few weeks of the shares trading.
However, institutional investors, who were short-changed in the allocations, may hold firm and choose to wait out the individual shareholders (burdened by bank and other loans) by holding out to buy at the lowest price, preferably at or below the IPO price of 12/=.
The best performing shares I bought in the last year are Express Kenya and Diamond Trust which have both gained about 78% to date. But they pale in comparison to other shares held for many years such as KCB and Kenya Airways which have only come into their own recently with strong management and direction, and have yielded over 1,000% each, not including dividends.
So it pays to keep the shares over the long term and not to cash out of Kengen this year. -
Infrastructure opportunities
» bankelele - Mumias Sugar Company seeking assistance in setting up co-generation facility to enable the company to supply 30MW of electricity to the national grid.
- Magadi Soda has tendered for a company to maintain their 146km railway line from Konza to Lake Magadi. -
Kengen be gone
» bankelele Today is the closing day of the Kengen IPO period after which, hopefully the share market can go back to normal. Customer service has been poor, if not non-existsent - so a a poem
Kengen be gone
with stockbrokers who change rules
“who told you to write to Kengen IPO A/C?”
“says so on the application form”
“No that’s only for banker’s cheques”
“we are not accepting personal cheques even if you have an account with us”
e-mail’s unanswered
wrong shares bought
resulting in second and third visits to correct these matters
each taking a wasted hour to do anything
fighting for seats with Kenyans who feel too important to queue and demand instant service
because they are not new kengen riff raff
Dealing with kids who have been working for a month
on the basics of Kengen only
nothing beyond
but already over-whelmned
paperwork has piled up
some brokers now have night shifts
to process paperwork
One actually made a shocking move
and changed computer systems
in the middle of the IPO period
but balances did not reconcile
So, Kengen be gone
let's go back to normal
until Sarova, Equity and Scangroup
come calling for the masses again -
Lunch with R & G
» bankelele 
Yesterday I attended a corporate function (center picture) in Karen. I arrived late, and just as the vice president’s motorcade was leaving. After watching bodyguards jump into moving cars, Raila Odinga pulled Uhuru Kenyatta aside for a brief chat. They talked alone for a few minutes before Uhuru’s Mercedes pull up and he also left (did not know that the leader of official position uses a GK car) . Raila also entered an SUV and drove off, waving to the small crowd though his open window.
Later we walked to the Horseman restaurant for lunch to end the event we were surprised to find that all the politicians had also come for the lunch as well, and we seated at a corner table. As I sat there, I thought about the last time I had been this close to, and can claim to have had a lunch with, Raila.
It was in December 2004, also in Karen, the day Raila’s daughter Rosemary, got married in a huge wedding for the ages. It was huge with pomp, bling, money spent well – expensive but tastefully, and was attended by President Kibaki, former president Moi and thousands of others.
That day, I was very surprised to see John Githongo for the first (and only time) time in my life, as he walked in with President Kibaki’s entourage of the day.
Reading the Githongo diaries, we know now that it was a momentous day for Githongo as he had just before wedding, given the president another explosive briefing on the still underground Anglo Leasing scandal. And just over a month later, he was gone, resigned and in exile from the Kenya government.
And there they were that day celebrating with Raila the man who sways & seduces people, politicians and voters - and who has been a critical ally turned lethal foe for both presidents Moi and Kibaki. Rails was also a man who Kibaki’s people had been uncomfortable with almost to the point of obsession. The Githongo diaries are peppered with utterances where Kiraitu Murungi and other officials told Githongo that Anglo leasing funds were to be used to fight Raila at Bomas, their fears Raila knew all about Anglo Leasing was, that they needed Anglo leasing funds to build up a war chest to strengthen the president and contain Raila.
Fast forward to yesterday, many months later, when I also attened aKwani poetry slam in the evening. IMHO, the best reading was given by one Muki Garang who gave some nice def poetry performances. He also wore a t-shirt with John Githongo’s portrait.
John Githongo, who is alive, has joined a select list of people immortalized by young revolutionaries - such as Che Guevara, Bob Marley, John Lennon, Malcolm X, Mahatma Gandhi, even 2Pac. Most of them died before their time, often at the hands of others. Yesterday was also the date when another icon, Martin Luther King was assassinated in 1968. He is not a t-shirt icon like the others, but he is recognized in a greater way with monuments, a holiday and is credited with the legacy of spearheading the drive to ending separation in America.
But sometimes when you reach a summit, the only place you can go is down - and the years have not being kind to some people e.g. Michael Jackson, Jesse Jackson and now Whitney Houston - who would all be called icons today if they had left the scene in the late 80's with their reputations intact. People would be talking about them in legendary status, wearing their t-shirts, and own tons of their memorabilia.
John Githongo deserves more than a t-shirt as recognition item - which is why he needs to keep evolving and adapting like Raila has done. Maybe Githongo should apply to become the next head of Transparency International in Germany or the USA or come back and be the next head of Kenya Anti-Corruption Commission. He has to keep plugging away, not just commenting. -
All Kengen
» bankelele 
What
All about the Kenya Electricity Generating Company (KENGEN) IPO through which it will transform to a public company that will be listed on the Nairobi Stock Exchange (NSE).
Opens: Monday March 20
Closes: Wednesday April 12
On offer: 659 million shares (par value 2.5sh) at 11.9 sh per share (minimum lot is 500 shares at 5,950 shillings)
How & Where to buy shares
All share buying now starts with the opening of a CDS account with any stockbroker, and after March 20, you can register and pay for your allocation of shares. In addition, several banks and credit institutions will even finance purchase of Kengen shares.
Over the next month, all their offices will be full of investors opening CDS accounts and placing orders for shares. Customer service for retail investors is marginal at best at most stockbrokers, but it will be even worse during the IPO period as overworked staff rush to beat the deadline.
However, I have a bias towards stockbrokers/investment banks, which enable online account management and trading. These include;
Dyer & Blair
Faida
Francis Drummond
Why buy?
Some KBW analysis of Kengen here.
Pro: Kengen is already profitable, still a monopoly, and energy sector shares are hot right now. E.g EA cables, KPLC.
Con: Have a single customer (KPLC), is a capital intensive company that can be affected by drought, will still be 70% government-owned & prone to interference (e.g. KPLC), lop sided IPO that favours employees, and past large IPO’s have taken many years for investors to achieve high returns e. g. KQ and Mumias.
Still, upside is good, but only as part of a balanced portfolio. I recommend an investment of not more than 1/3 of shares in Kengen, and everyday I caution people who are setting aside their entire savings/investments to buy Kengen shares to, in addition, seek value in other companies as well.
In the week since the Kengen IPO was announced, other companies have lost their share values as follows; Express -14.29%, Rea Vipingo -13.82%, Sasini -13.04%, Housing Finance -13.01%, Sameer Africa -12.94%, Diamond Trust -11.73%, National Bank -11.45%, Athi River Mining -10.27%, Uchumi -8.66%, Total -8.28%, Mumias -7.88%, and Kenya Airways -6.91%.
What Else?
Shares of the new Serena will be listed on the NSE staring tomorrow (March 15). -
February 3
» bankelele 
Jobs
Oriental commercial bank: (formerly Delphis)
- Branch managers
- Head of finance
- Head of internal audit
- Head of technical services
- Head of treasury, foreign exchange, and international banking
- Deputy general manager
Apply through the executive selection division of HLB Zainash Consulting at consult@ashvir.com by February 7
K-Rep Bank
- bank clerks
- business development officers
KADET: The Kenya agency for development of enterprises & technology (KADET) a world vision international subsidiary
- Audit assistant
- Accounts assistant
Apply to kadetrecruit@wvi.org by February 8
UNDP/GOK: public sector reform/development secretariat
- Program coordinator: transformational leadership ethics and values
- Technical coordinator: information and communications
- Program officer: transformational leadership ethics and values
Apply though inmail.kenya@undp.org by February 6
Caritas
- Finance & Administration officer at Caritas, a Roman Catholic aid agency, who will be based in Nairobi, with frequent travel to Sudan and Somaliland. Apply through jobs@caritas-switzerland.org by 12 February
Millennium Villages Project MVP of the World Agroforestry Centre (ICRAF) - based in Kisumu
- Project Manager
- Operations Manager
- Agricultural Coordinator
- Health Coordinator
- Infrastructure Coordinator
- Community Development Coordinator
- Enterprise Coordinator
Apply via icrafhru@cgiar.org by 15 February.
HLSP
HLSP is an international organisation working to improve world health with opportunities in Nairobi
- Business Manager
- Project Officer
Symphony a leading regional IT company
- channel manager
- sales executive
- products & procurement manager
- admin assistant
- senior accountant
- accounts assistant
- system engineer
apply though hrd@symphony.co.ke by 10 February.
Bank News
- IFC will set up a regional credit reference bureau in Nairobi to serve Kenya Uganda Tanzania Rwanda and Burundi.
- CFC will launch a credit card this year.
- Consolidated Bank has added on ATM’s (Kenswitch networked) in Isiolo, Nyeri and Maua.
Corporate News
Half-year corporate results as at December 31
Mumias Sugar: Six-month revenue increased from 6.39 to 6.92 billion shillings despite selling 5% sell sugar and generating 50% less cash. After tax-profit rose from 567m to 774m and the company will pay an interim dividend of .75 per share (last year was .6) to shareholders on March 27
East African Portland: Turnover at the cement company increased from 2.59m to 3.11 billion shillings and after tax profit increased from 252m to 594m shillings. The company will pay an interim divided of 1.3sh per share on March 31. The company’s performance was assisted by the strong shilling versus the Yen in which the bank is servicing a huge loan.
Unga: Turnover was flat - 3.79 billion shillings ( 3.74b in 04) and after tax profit is still low, but increased from 34 to 73 million in the half year.
Sports
Saturday 04 February
3:30 PM AFCON:: QF 3: Nigeria vs Tunisia
4:15 PM 6 Nations:: Ireland vs Italy
5:30 PM Everton vs Man City & SS6 Birmingham vs Arsenal
6:30 PM 6 Nations:: England vs Wales
7:30 PM AFCON:: QF 4: Cameroon vs Ivory Coast
8:00 PM Man Utd vs Fulham
8:15 PM Indoor GP: Stuttgart, Germany
10:15 PM Real Madrid vs Espanol
Sunday 05 February
4:00 PM Tottenham vs Charlton
5:45 PM 6 Nations:: Scotland vs France
6:30 PM Chelsea vs Liverpool
Monday 06 February
2:00 AM ESPN Superbowl XL: Seattle Seahawks vs. Pittsburgh Steelers
7:15 AM Pakistan vs India 1st ODI -
Anglo Currency
» bankelele One year ago today, The Sunday Standard
reported on an attempt to swing the contract to print Kenya’s currency towards French firm, FranÁois-Charles Oberthur Fiduciaire, which had previously been sub-contracted by Anglo Leasing to print "new generation passports" for the Kenya government. Eventually, De La Rue retained the contract, which they have held since independence. -
Weak Tea
» bankelele Sister companies, Kaphcorua Tea and Williamson Tea, both reported losses for the six months ending in September 2005. Turnover was down by 8% to 206m at Kapchorua and by 13% to 526 million at Williamson and operational loss at both companies was 4m and 7m respectively. The loss before tax was 28m at Kapchorua and 53m at Williamson for the six months. The companies attributed the losses to oversupply of tea in the international markets and reduced margins caused by a strong shilling, with a warning that losses will continue until the shilling weakens. This follows a bad year for Sasini Tea as well. -
Supporting women entrepreneurs
» bankelele A joint report by the International Labour Organization and the African Development Bank titled Support for Growth-oriented Women Entrepreneurs in Kenya was released today.
46% of SME’s in Kenya are owned by women who face numerous constraints in establishing and running their business. The goal of the program is to transform women enterprises from being informal and micro-sized, located on inappropriate premises, operating in feminized sectors & and locally restricted markets, and which are under-capitalized, making minimal use of technology – all of which limit their potential for growth. This will be done through tailored financial and other solutions.
In terms of banking and finance, women enterprises are restricted to group savings and micro finance (which yield slow growth). Despite women having high demand for loans and credit, and even though they tend to be better savers and have better loan repayment rates than men, women entrepreneurs are unable to access commercial bank loans. The reasons for this include;
- main problem facing women in Kenya is lack of collateral for borrowing (often is in husband’ name)
- Banks lack confidence in projects owned by women
- Men have bigger ideas and borrow bigger, while women are risk averse and take smaller loans, which are more costly for banks to administer
- Women lack the ability to approach financial intuitions (e.g. management skill, and in some cases education, technical skills or business records that banks require)
Among the recommendations of the report:
- In a pilot program to be implemented in Kenya, the ADB will guarantee up to 50%, loans advanced to women entrepreneurs by a small group of local banks
- Efforts will be made to link micro- finance loan clients to business development services
- A financial guide for women entrepreneurs will be published
- A women’s bank may be established in Kenya to be chaired by the First lady.
PDF’s of the report can be obtained from either the ADB or ILO sites. -
Godfather
» bankelele 
Out of the box thinking
First Africa Capital is a different sort of investment bank. I find their alternative financing proposals refreshing because Kenya is a country littered with down and out organizations in need of capital - and while other investment Banks mainly chase after blue chip companies and projects, First Africa pursues innovative ways to enable struggling companies secure valuable resources and opportunities. Some of their recent, but unsuccessful, client venture include, Telkom Kenya’s bid to buy more safaricom shares from Vodaphone, Equity Building Society’s (now Bank) offer to revive (collapsed) Daima Bank, start up financing for Econet Wireless Kenya - and now parastatal National Oil Corporation's bid for the assets of BP Kenya.
Job opportunities
National Aids Control Council
- Economist (financing strategy)
- Monitoring & evaluation control specialist
- database administrator
Apply to the Director, NACC by November 25.
Community Officer at Kituo Cha Sheria, a leading Human Rights and Legal Aid NGO. Applicants should have bachelor's degree in Social Sciences, 1 year experience in community organisation & development and excellent counselling paralegal & computer skills. Apply to the executive director by November 15
Simbanet a leading IT company is seeking
- head of customer support; applicants must have A+, N+ or CCNA, MCSR and 2 years ISP experience
- support engineer for VSAT: must have recognised IT diploma or degree, and be CCNA/CCNP certified with good knowledge of IP addressing, routing, DNS web servers and with 2 to 3 years working at an ISP
- junior accountant: part qualified CPA or ACCA, with 2 to 3 years experience and be not older than 27.
Apply to jobs@simbanet.co.ke by November 21.
Trust Fund Manager at the national Environmental Management Authority (NEMA)
Job entails administering a trust fund, create an award scheme, network and write proposals for fund raising and sustaining donor relationships. Applicants must have a communications degree (marketing specialization) and some NGO experience. Apply to the Director General NEMA P. O. Box 68839-00200 Nairobi by November 25.
Senior Policy Analysts at the Kenya Institute of Public Policy Research and Analysis (KIPPRA). Applicants must have PhD in economics and 5 years policy research and analysis experience. Apply to Hilda@kippra.or.ke by November 24.
Country Manager at IAT, an ACT learning organization. Applicants must be aged 30 – 40 with MBA or CPA II, with at least 8 years experience (of which 5 were as a manager and 2 managing a profit center). Apply to the Human Resource Director at opportunities@iat.co.ke by November 18. (Include a max 300 word essay explaining how you will contribute to the position)
research, monitoring & evaluation officer at the coastal rural support program of the Aga Khan Foundation. Applicants should have an advanced social sciences or development degree, with some NGO and strategic planning experience. Apply to crsp-k@africaonline.co.ke by November 25.
internal auditor (hr/aud/01/05) at Del Monte Kenya. Applicants should have a commerce or business degree, be fully qualified accountants under age 40, be familiar with the Sarbanes Oxley act and agricultural organization and have 5 years audit experience. Apply to nanasi@delmonte.co.ke by November 16.
finance & administration manager at the intermediate technology development group (ITDG) applicants must have a business degree, be fully qualified accountants be familiar with contract accounting and NGO work and also have 5 years experience, 3 at managerial level. Apply to recruitment@itdg.or.ke by November 23.
policy manager at ActionAid International Kenya. Applicants should have masters in social sciences, with at least 5 years experience in development work, policy research and advocacy, understanding of public policies and laws, networking, lobbying & communications skills and be willing to travel outside Kenya. Apply by November 21 to hr@actionaid.org
Other opportunities
Cable distribution
Cablevision is seeking distributors of their digital cable TV with 80 channels. Contact Sachin Shaha at sachin@cablevision.co.ke
Survey for Citizen Report Card in Kenya: WSP-AF has embarked on an 18-month Consumer Voice project in selected cities in Africa with the objective of creating larger scale and more direct links with consumers, deepening consumers’ understanding of water sector reform and water and sanitation issues, and strengthening informed consumer voice in water supply and sanitation service reform and management. The vehicle WSP-AF proposes to use is the Citizen Report Card. The Citizen Report Card (CRC) is a simple but powerful tool to provide public agencies with systematic feedback from users by collecting citizen feedback on the quality and adequacy of public services from actual users. CRC’s s will be implemented in three cities in Kenya: Mombasa, Kisumu and Nairobi and an experienced and professional survey firm will be contracted to undertake the data collection that forms the basis for the Report Card. Expressions of Interest (EOI), in electronic format, are invited from suitable firms with the following characteristics; Experience with sample surveys of this magnitude in Kenya, Kenya-based staff, a track record of rigorous quality control and excellent reporting. The deadline for submission of the EOI is November 16 at 16 00 hrs.
non-runners in the news
Nationals of other countries were granted exemptions, but Kenyans still require transit visas to pass through South Africa.
Some ex-Maseno Boys accomplish themselves at college basketball in the USA
anyang nyongo week: The minister, quite rightly, pointed out that it is difficult for SME’s to borrow money from banks at affordable rates and conducive terms. But he also poured cold water only the recently concluded privatization of Kenya Railways.
Godfather
Finally, Nation’s NTV is showing The Godfather Trilogy on Monday nights after 9:30 and has now run two weeks of the series. The trilogy rearranges the three films into a proper chronological sequence (De Niro - Brando – Pacino) and also has extra scenes that were never shown in the theatrical versions (and which I have never seen). But it’s frustrating whoever edits the series at NTV has been cutting off scenes inappropriately to insert commercial and promos for other Nation shows. -
Friday, news, jobs
» bankelele Pesa Point ATM’s
Pesa Point, an independent network of automated teller machines (ATM’s) will officially launch on Friday October 21st. In a Sunday Nation feature on the launch (PDF) , Paynet MD Bernard Mathewman said eight partners are expected to be part of the initial launch. One Bank likely to be among the first partners is Equity Bank. Also NIC, whose major shareholders own Paynet could also link up their 17 MOVE Zone ATM’s to Pesa Point.
The company says 30 are ready now and they hope to have 120 independent pesa point ATM's by year end in hotel lobbies, supermarkets, petrol stations, and other retail outlets (Caltex has already signed on). For comparison, Co-operative Bank has 58 ATM’s (31 in Nairobi) and KCB has 86, with plans to have 115 by the end of the year while another network of shared ATM’s, Kenswitch, was launch in 2003 and now has about a dozen banks whose customers use each others 30 ATM’s.
New Bond available
The Athi River Mining bond is now available to investors. The Issue is for Kshs 800 million, offered on a floating rate basis with a final maturity in 2010 and is priced at a margin of 175 basis points (1.75%) above the 91 day T-Bill.
Applications and payments must be delivered to to either Barclays Financial Services, Stanbic Bank Kenya, Dyer & Blair Investment Bank, Ashbhu Securities Limited, or Dry Associates Limited by 3.00 p.m. on Monday, 24 October 2005 with payment made out by banker’s Cheque or by bank transfer/remittance to the Athi River Mining Ltd Bond Receiving Payments Account, in the books of Cooperative Bank, Account Number 011 2030 2835 00, Branch Code 11002, Nairobi. If the offer is over-subscribed, preference will be given to investors in notes greater than 5 million shillings. The bond will then be listed on the sting on the NSE, availing a secondary trading market
KRA anniversary
Also on Friday, President Kibaki will mark the 10th anniversary of the Kenya Revenue Authority at KICC.
Nairobi marathon
The registration deadline for the Standard Chartered Nairobi Marathon has been extended to Saturday. Many City roads will be closed on Sunday morning to facilitate the marathon.
Low cost housing scheme
Superior Homes will put up 400 3- bedroom apartments bungalows (phase 1) to be known as Green Park Housing Development at Stoney Athi, along Mombasa road.
Jobs
several accounting positions: at Safaricom Details will soon be posted at their website and the deadline for applications to hr@safaricom.co.ke is 25th October. Positions are:
- senior accountant – reporting
- senior accountant – financial systems & analysis
- senior accountant – accounts receivables
- senior accountant – payables (2 positions: local and foreign)
- senior accountant – general ledger
- senior accountant – cash book
- accountant – accounts payable (2 positions: local and foreign)
- accountant – accounts receivables
- cashier
chief accountant: at Oserian Development Company (one of Kenya’s largest flower grower based in Naivasha). Job entails supervising all accounts and payroll staff, data input for preparation of monthly financial statements and audits, financial and system controls, treasury management and compliance with legislative and accounting standard. Applicants must have bachelor’s degrees (accounts or finance option) and at least 3 years work experience at senior management level preferably as chief financial accountant. Must also be a fully qualified accountant with 5 years work experience. Apply to the human resource manager, jobs@oserian.com by November 4.
loans manager: at the Kenya Tourism Development Corporation. Job entails drawing and implementing lending policies to facilitate processing award and recovery process. Also maintain records of loan applications, set performance objectives, coordinate staff and educate the public on the corporations lending policies and requirements. Applicants should have an economics degree with a bias towards development finance, postgraduate finance qualification and at least 10 years relevant working experience at a senior level. Apply to the managing director, ktdc@wananchi.co.ke by October 26 -
Financial Jobs
» bankelele Celtel executive(s)
From Careers in Africa:
Openings for:
- Director, Compensation and Benefits
- Director, Talent Management
- HR Director
- Finance Director
- Group Business Planning Director
- Group Controller
- Group Consumer Segment Manager
- Group SME Segment Manager
- Sales Director
- Managing Director
- Operations Director
- Vice President Operations
Financial Director
Seaboard Corporation is seeking a Financial Director for the Unga Group in Nairobi, Kenya. This executive position will be responsible for financial reporting, administration, taxation, risk management, etc for a 25+ person accounting department. This candidate must be a Certified Public Accountant or Chartered Accountant with US GAAP experience, audit and treasury management experience, exposure to financial statement conversion (preferably US$, with at least ten years Financial Controller experience in a third world country. The position is for an indefinite period of time and we pride ourselves on promoting within the organization. For consideration please email your resume to Brad_warner@seaboardcorp.com. Qualified citizens of Kenya are strongly encouraged to apply for this position.
Audit Quality Assurance Officer Ref AQAO/05
At the Institute of Certified Public Accountants of Kenya (ICPAK), who will undertake quality reviews on audit practices to ensure compliance with international audit standards and take follow up actions. Applicants must have ICPAK members of good standing who have bachelor’s degree, 5 years working audit experience, and good knowledge of international finance reporting & audit standards. Apply through KPMG executive selection division e-mail: esd@kpmg.co.ke by 28 October
Programme Officer Ref: WFP/38/05
The World Food Programme is seeking a Programme Officer for its Dadaab Duty Station who will oversee all monitoring activities, food distribution and post-distribution in the camps. Applicant must advanced university degree and/or equivalent experience with emphasis in international affairs, social sciences, development studies or a field relevant to international development assistance. Also desirable to have at least 5 years postgraduate job-related experience in development or food aid support, with good analytical ability and fluency in both written and oral English & Kiswahili. Kenyan nationals, particularly females, with the above qualifications and experience are requested to apply to the Human Resources Officer, World Food Program, P. O. Box 44482-00100 Nairobi by October 25. -
More Corporate Briefs
» bankelele Telkom
VoIP: This week Telkom launched VoIP service using their existing and new call cards (branded with the big five animals). Typical per minute rates are 15 shillings for calling the USA, UK, & Canada, and 20 shillings for Uganda, Rwanda & most of Africa.
In a timely article, the Economist reviews the consequences of the recent E-Bay/Skype deal noting that one day all voice calls, including mobile, will be free.
Fibre: Telkom also began laying an optic fibre cable between Nairobi and Mombasa which it hopes to complete by March ’06.
M&A
EA Cables: Seeks to acquire 51% shareholding of Tanzania Daesung Cable Ltd which is currently by Nexans Korea Ltd. The company will seek shareholder approval for the deal at an extraordinary general meeting on October 18 at Holiday Inn, Nairobi.
EA Portland Cement: EAPC intends to acquire 49% of the Kigali Cement Company via a 160 million shilling investment that will raise KCC’s production from 50 to 300 tons a day by the end of the year.
Shell/BP BP oil is pulling out of Kenya – selling all its country operations including 65 fuel stations, a 17% stake in the Mombasa oil refinery and 50% stake in both BP Kenya & Shell Kenya.
Profit
Unga limited has attained a profit for the first time since 1997 – returning a 72.5 million shilling profit for the year ended in June, up from a loss of 102 million in 2004. It is managed by Seaboard Corporation, an American company who retain the right to acquire a majority stake in the company. No dividend will be paid though owing to current debt and modernization costs. -
Women’s Only Bank has outstanding success
» bankelele (From Pakistan): First Women lends mostly to women without collateral and has a 96% loan-recovery rate. It was founded in 1989 by then Prime Minister, Benazir Bhutto, as a vehicle of female empowerment. The literacy rate among Pakistani women is barely 30%, about half those of men. Just 10% of Pakistani women participate in the non-domestic workforce, and when they do, their salaries are half those of men. -
KCC changes hands (once again)
» bankelele In a political changeover long expected, KCC (Kenya Co-operative Creameries) and KCC 2000 have been taken over by New Kenya Co-operative Creameries. - and a notice to that effect was posted in the daily papers this week. This raises a lot of focus as it legitimised the KANU deal that controversially converted KCC into KCC 2000 and this new deal will provide quite a windfall for whoever has just sold KCC 2000. However the sale is likely to be challenged in court as it does not transfer any liabilities from the original collapsed (and debt ridden) KCC. -
Budget 2005/06
» bankelele The budget is over-rated speech, but it communicates the direction the government intends to take. As usual, it calls on MP’s to pass several bills that are crucial for the government to meet its stated goals.
Numbers
- In the Minister’s first sentence he mentioned the controversial new 4.3% economic growth rate of the country.
Higher Interest Rates
To control inflation monetary policy will be tightened to bring credit expansion to a more sustainable pace. These echoes sentiments by the Central Bank Governor who has repeatedly said that the level of bank borrowing by the private sector has been worrying, and that he intends to raise interest rates to slow it down. In March 2005, bank lending to the private sector increased by 25% and half of that was to households (compare that to a 7% decrease in lending to the government)
Donors
Expecting net external financing from both bilateral and multilateral development partners of Kshs.23.4 billion. In the event that the bilateral partners provide any budgetary support it will be used to reduce government domestic borrowing and to upscale spending on core poverty programmes. The government will borrow 25.3 billion from the domestic market this year
For Investors
- Fewer licences to start business following the abolition of 17 licences. Currently, there are about 600 licences in Kenya that directly affect trade and investments. The government will also amend 30 others.
- To encourage more investors at the Nairobi Stock Exchange, newly listed companies will pay corporation tax at a lower rate of 20%, for a period of 5 years, provided these companies offer at least 40% of their shares to the Kenyan public. (corporate tax is 30% now)
- Investment income from Special Purpose Vehicles (SPVs) for purposes of issuing asset backed securities will be exempt from income tax.
For Mwananchi
- Minimum income to be taxed in a year raised from 24,000 to 36,000 shillings
- No duty on medicine, diapers, sanitary pads, cooking gas coal, media containing computer software, safety belts, and speed governors,
- Beer, spirits and cigarettes up 10%
- Duty on mitumba (used clothing) be 45% or US 30 cents per kg, whichever is higher
- Maize flour, milk and kerosene will be cheaper since they will be zero-rated
- Refrigerated trucks and hotel equipment exempted from duty.
Women
A married woman can now file a separate tax return to report all her sources of income without exception. Before she could only file on certain sources of income
Car Owners
- Computation of wear and tear (depreciation) for private motor vehicles increased from 1 million to 2 million
- No duty on safety belts and speed governors
- Excise duty, which used to range from 20% to 60% will now be a flat 20% regardless of engine capacity.
Home Owners
- Mortgage interest relief increased from Kshs.100,000 to Kshs.150,000.
Government Expenses
Wages
- The Government wage bill consumes up to 40% of ordinary revenues, or over 8% of GDP.
- Wages, together with other non-discretionary expenditures such as debt service payments and pensions obligations, take up two-thirds of revenues, leaving only a third to fund priority areas.
- Minimum wage will be adjusted once every two years in line with productivity increases.
Monster Trucks
- Government will reduce expenditures on motor vehicle purchases - as a first step, the number of cars allocated to senior government officials will be restricted to two
- The Government will adopt prepaid telephone services .
Services
Governance, Law and Order
- Will release wealth declarations of public officers
- Will implement the recommendations of the Goldenberg commission once report is done and also of the land commissions.
- Also implement community policing to other urban centres
- Build 500 houses to improve the living conditions of police officers at a cost of 750 million
- Government will recruit more Magistrates and Kadhis to cope with the increased cases
- automate court registries to enhance information flows.
Banking sector
- state-owned banks will be restructured and privatised
- a SACCO Bill is under preparation
- Government will soon be tabling a Micro Finance Bill
Education
- The Government will continue to allocate the bulk of its resources, (28%) to education
- Will also redistribute teachers and redeploy resources
- Higher university fees: Universities to be made more self-reliant, to reduce their dependence on exchequer
Agriculture
- AFC, KFA and KCC will be supported, but not KMC, which is a pet project of one Minister
- Allow direct sale of Coffee outside the auction.
- Kshs.250 million allocated to facilitate revival of the cotton/textile sector to benefit from AGOA.
- Simply the exports of livestock by introducing a single permit system for cattle movement.
Infrastructure
Roads
- A 44% increase in resource allocation for public works
- Steps made to minimize bureaucratic delays
- Government will also enforce standards and quality specifications for all road maintenance and reconstruction works
Railway
- To raise investment funds necessary to improve rail services, a joint process to concession the Kenya and Uganda Railways is ongoing and is expected to be completed by December 2005.
- Government will partner with the private sector to explore the possibility of constructing railways to Sudan and Ethiopia
Air
Major modernization programme for JKIA is in progress.
Ports
Mombasa Port will be converted into a landlord port to facilitate further private sector participation in such areas as container terminal, bulk handling and conventional cargo.
ICT
- Government will facilitate development of adequate ICT capacity in the country and encourage improved ICT usage.
- Efforts will also be made to complete implementation of e-government during the year to improve service delivery and promote accountability.
Housing
Implementation of slum upgrading in partnership with UN-HABITAT and other development partners at Kibera, which will result in the construction of 600 housing units at a cost of 500 million shillings
Privatisation
- KShs.8 billion from privatization proceeds expected during the year
- Speedy enactment of the Privatisation Bill is critical to the success of reforms
- State-owned banks will be restructured and privatized.
KRA
- To reduce backlog the period to file an objection to income tax has been reduced from 60 to 30 days
- KRA will provide addresses of borrowers of student loans to universities to assist them recover loans faster
- To clear the delay in VAT refunds, KRA has been given enough resources to pay current claims
- Controversial roll out of electronic tax registers to continue
- Also continue the tax amnesty program (which netted Kshs 4.8 billion last year) -
PR/media campaigns
» bankelele De La Rue
Thomas De La Rue, who print the currency for Kenya and many other countries have launched a PR. campaign at a time when their contract to print Kenya’s currency is up for review. De La Rue point out that they have invested in a 3 billion shilling factory in Nairobi where they print many world currencies, employ 300 trained Kenyans and contribute 600 million shillings annually to the Kenyan economy.
De La Rue have printed Kenya’s currency since independence, but have faced stiff competition from new companies and politicians, including one arm of Anglo-Leasing.
Italians at the Coast
Italian Residents of Malindi and Coast Province have also launched a PR campaign to refute allegations that they engage in drug trafficking and prostitution activities. They point out that they are responsible for 85% of the tourism business in Malindi, and are behind numerous community & charitable activities. Also that, out of the 1,000 Italians on the island, only 5 have been investigated for criminal activities over the last 27 years
Boycott Delamere
There’s a chain mail going round urging Kenyans to boycott Delamere products following the controversial dismissal of murder charges against Delamere’s grandson who had shot and killed a Wildlife ranger.
Mo Money
Foreign Affairs Minister, Chirau Ali Mwakwere wants the High Court to increase the 3 million shillings awarded to him following a successful defamation suit against Royal Media Services. -
IFC (World Bank) Aid to Kenyan Banks
» bankelele Barclays to fund SME’s
Th International Finance Corporations (IFC) will provide a loan Barclays Kenya of up to $20 million (Kshs 1.6 billion), the proceeds from the Loan will be used primarily to fund medium sized corporates which are in need of US$-denominated funding, and will free up the Bank's local currency resources for on-lending to smaller corporates.
I&M Bank to fund trade finance
IFC will provide a loan to Investments and Mortgages Bank (I&M Bank) of up to $5 million to support the bank's growing SME client base and export-oriented segment in Kenya. IFC will also consider providing I&M with equity of up to $2 million (Kshs.160 million) to shore up the bank's core capital.
Barclays to fund solar energy projects
Barclays Bank of Kenya plans to offer loans to Savings and Credit Cooperatives (SACCOs), which are members of Kenya Union of Savings and Credit Co-operatives (KUSCCO). SACCOs provide financial services to a large section of the adult population in Kenya, and make loans to individuals who do not save with or borrow from mainstream banking institutions. SACCOs receiving loans under this project will provide "solar loans" to their members to purchase solar home systems to be installed by Solagen Ltd. and other leading Kenyan PV technical service providers. The total amount is estimated at $4,6 million (Kshs 368 million) and will be sourced from the IFC. -
War on Corruption: A Whimper
» bankelele The Kenya Anti-Corruption Commission has published its report for the 1st quarter of 2005. In three months the KACC investigated only seven cases and recommended further prosecution in four of these. The cases included:
- A 25,000 shilling bribe allegation against 2 Nairobi Water Council employees
- A pension department officer who solicited a 3,000 shilling bribe
- A false wealth declaration made by an employee of the Ministry of Home Affairs,
- An allegation of misuse of AIDS funds by an NGO
- Investigation of a free hotel stay by an employee of the Retirement Benefits Authority
The other three dealt with Anglo Leasing. As far as the KACC is concerned Anglo Leasing is a closed matter since the company repaid 375 million shillings ($4.4 million) to the Government. The KACC recommended, and the AG has duly charged Zakayo Cheruyiot (former PS in Office of the President), John Agili (finance officer in Office of the President), Sylvester Mwaliko (former PS in Office of the Vice President), Joseph Magari (former PS in the Ministry of Finance) Wilson Sitonik (former director of IT at the Treasury) and David Onyonka (former finance official at the Treasury Department) with various crimes related to Anglo-Leasing.
It appears that KACC only responds to complaints lodged (i.e. they don’t respond to media reports on corruption) I’d like to encourage the KACC to initiate their own investigations (like Elliot Spitzer in New York) and not just sit and wait for complaints. For an organization whose budget runs into the tens of millions, they are on pace to investigate only 30, mostly minor, cases in what is ranked as one of the most corrupt countries in the world. Hopefully issues that dominate the media such as Kenyatta National Hospital, military procurement deals and the other 20 cases handed to the President by Sir Edward Clay. -
In banking this week
» bankelele Citibank (31.5b assets) Roars Back
After a lacklustre 2004, Citibank Kenya has already surpassed its 2004 profit in the first three months of 2005. Deposits increased by 23%, from 19.5 billion shillings to 24b, and the bank net interest income and total operating income of 263m and 501m respectively, between January and March 2005. As a result Citibank earned 308 m before tax, and 185m after tax (compared to 124m for the entire 2004 year)
Diop: Kibaki tenant
As has been already pointed out, it is a conflict of interest for World Bank Country Director (or the World Bank itself) to be a tenant of the President of Kenya. In Equatorial Guinea, where President Obiang has been accused of fleecing the country, one favoured channel of corruption was that oil companies would always rent buildings and properties from Obiang and his family (even a 12 year old kid) at exorbitant rates.
Know your credit history
In a Kenya Gazette notice this week, the Banking Act has been amended so that a bank customer is now entitled to know any information a credit bureau holds on him, by requesting this in writing. This will enable the customer to correct information, file a complaint with the Bank and encourage the bank to investigate the dispute for correction. (Applies to all banks and financial institutions)
Executive changes
Mukhisa Kituyi has appointed James Ochami as the new managing director of Industrial Development Bank Ltd. He also appointed Evans Kisina as a director.
Stanchart to target mid-sized businesses
Standard Chartered Bank has launched a Small and Medium Enterprises (SME) division. The SME product will offer a combination of overdrafts, letters of credit, bonds and guarantees, credit bill negotiation, invoice discounting among other benefits. The bank has also introduced trade and working capital, finance products, auto loans, commercial and residential mortgage facilities to cater for different customer needs.
New robbery technique
Bank robbers are now posing as customers in banking halls as they scope out people making huge withdrawals. They then rob them far away from the Bank, often posing as police officers.
Union wrong footed on Labour Day
The Bank union which earlier forbade its members from participating in a performance appraisal system at Kenya Commercial Bank, are now crying foul – and now opposing payment of bonuses to management and other members of staff who were evaluated and found to be high-performers in the process. -
EA Cables AGM
» bankelele East African Cables Ltd. held their 40th annual general meeting at Holiday Inn, Westlands on the morning of Thursday April 21st. About 70 shareholders showed up, in an 80 capacity room, which is about par with previous years.
The AGM was a no-nonsense affair, as shareholders were genuinely happy with the company whose share price has shot up from 13 shillings to 67 shillings within a year since a change of ownership and management in 2004. The company’s earnings per share increased from 0.46 to 6.11 shillings per share and it also paid a total dividend in the year of 3.5 shillings. Most questions dealt with the company’s main customer (Kenya Power & Lighting Company) and the previous majority owner (Sameer Group). Official matters concluded in about 30 minutes, and were followed by a buffet lunch, poolside at the Holiday Inn (for once, there wasn’t any major food drama)
Interesting note
After attending a few AGM’s, you start to notice some familiar faces i.e. people who own shares in all these companies and have time to attend them. Allegedly there’s one gentleman who owns a few shares in most of the 47 NSE companies and attends these functions for the perks and prestige (always gets to ask a question). Also there are some other men who are reputed to own significant shares in some of these companies - and who are even listed in the company accounts as being among the top 10 shareholders.
Best move
The Board of EA Cables invited the head of the central depository system to talk about the new way of trading shares and shareholders had tons of questions for him. (making it worthy of a separate blog entry - coming soon)
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