Monthly Archives: November 2004

Shocking Statistic of the Day

I just returned from a “Public Form on Inequality” hosted by Institute of Economic Affairs and the Society for International Development http://www.sidint.org/ who produced a shocking report on inequality in Kenya.

The most shocking statistic of the evening was the declaration by Mr. Bett, the MD of Investment Promotion Center, that our Members of Parliament (who earn 500,000 to 1 million shillings a month) have only one passed one (1) bill in 2004, which was, in fact, an amendment. The Parliamentary year ends on Thursday, and this is down from the four (4) bills they passed in 2003. He was wondering when they would ever get round to discussing investment and privatization bills as a way to spur investment in the country.

Happenings at the Nairobi Stock Exchange

(1) East Africa Breweries effected a 5 for 1 share split yesterday to make its stock more affordable. It closed yesterday at 114 shillings/share down from 530 the previous day. It is the second company to do a stock split this year – Kenya Oil Corporation (KENOL) did the 1st ever with a 10 for 1 split earlier this year – and its share price has already climbed back to 60 which is the highest price 9equivqlent of 600 shillings – before the split).

(2) In a related matter the Financial Post (a new weekly paper in Nairobi) has an article, which says that 14 companies plan to be listed on the NSE once their over the counter (OTC) market is operational. Companies will only have to display two years of profits unlike the NSE where you have to show five years – or they also don’t have to show good profit industry, only the potential to turn round! Companies lined up include Kenya Cooperative Creameries and Cooperative Bank, Timsales, Hutchins Biemer and Orion – an agro chemical company.

This OTC market will target the cooperative movement. Just the fact that a company cannot meet the listing requirement for the NSE, make these much riskier investment vehicles – especially for the cooperative sector which is riddled with mismanaged giant societies. I think small investors can participate in the NSE-proper as the KQ AGM showed. Its stock trades for 19 shillings, and there are several other companies that trade for below 50 shillings.

NIC Bank looking for a new Managing Director

http://www.spencerstuart.co.uk/yourcareer/opportunities/teaser/1000039183/

Managing Director

Opportunity icumber: 33832-002

NIC bank is one of Kenya’s leading commercial banks. Incorporated in 1959, the bank has a market capitalization of US$50million and assets of US$160million and is publicly quoted. Initially established as an asset finance provider, the bank diversified into mainstream commercial banking in the 1990’s with a particular focus on corporate and consumer banking.

Apply by November 28th, to begin work by 1 May 2005. You must be a university graduate with 15 years banking experience in Africa or internationally at senior executive level, among other requirements.

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New Player on the Banking Scene

Equity Building Society, which has experienced rapid growth over the last two years has filed a  notice to convert from a building society into a banking institution.

This is an interesting development considering that there has been a moratorium on Banking licenses at the CBK over the last few years – although earlier this year, Credit Agricole Indosuez quietly became Bank of Africa (or something like that).

Back to Equity, they have called for two meetings on Saturday 11th December at the Grand Regency Hotel; one at 10 a.m. that is a special general meeting for members and the second at 11 a.m. will be for depositors and creditors. Both will be asked to

  • (i) approve conversion from a building society to a banking institution.
  • (ii) approve the transfer of assets & liabilities of the society to those of a company.