This week has been spent learning the ropes of learning new core banking system. We are in a test module, posting transactions and simulating scenarios, testing what/if limits of the system. So I can award myself a seven digit salary increase, borrow ten times that amount, draw cheques, and even transfer funds from someone else’s account to repay my loan, all at the click of a button – a real Cool world.
This week our members of parliament gave us another bile inducing moment with yet another attempt to raise their salaries. These are people who live in an economic matrix where they believe that ordinary laws do not apply to them. They raise their own salaries (which other job can claim that?), pay a pittance in taxes, and are able to propose and play with myriad bills – that all concern other peoples money. From day one, when they
blackmailed arm-twisted the then Finance Minister (2003) to increase their salaries they have been on a tear as the rest of the country watches. Now there’s a proposal to increased their number either through more constituencies or women seats. I’d like to see more women parliamentarians, but I believe i can already name most of the women MP’s who will sit in parliament next year – just add up all the defeated candidates and past women MP’s, and activists and you get an idea of the next group to get paid by the exchequer. As much as this parliament has accomplished – sexual offenses bill, CDF, education, health, anti-corruption etc. – this parliament will be remembered for salary increases and lack of quorum.
As a citizen, I applaud the economic gains made, but as a taxpayer I lament the waste that the increased tax collection has not been prudently applied. We don’t need more ministers or MP’s who live an economic matrix of their own.
Anyway, on to other news
– has opened 32 branches since it’s change of direction last year
– You can pay for Kenya Re and other shares with Barclays Visa card at Sterling, Suntra, CFC, Ashbu and Discount stockbrokers.
– Barclays stretching personal loan repayments from 1 year to 5 years. This way, they will earn more money interest income while postponing some potentially bad debts (in duplum era) after co-op bank did the same earlier this year.
– CFC has an arrangement with postal corporation of Kenya to enable people to buy shares at post offices throughout Kenya. This is the third major attempt to extend a stockbroker’s reach after Suntra/Postbank and K-Rep/Ngenye Kariuki partnerships.
Equity bank to take up 20% of housing finance. Spruce up on the banking act, as this is not a popular activity with the Central bank i.e. banks owning shares in other banks. Still, it’s amazing how many records Equity continues to break. Last year, they attained the billion shilling profit mark; this year, they achieved that in six months
NIC: In the week it was dropped from the 20 share index (in favor of ICDCI), it was also the best performing stock after announcing a rights issue and bonus share proposal . This former Barclays subsidiary has been the leading provider of asset finance to individuals and corporations in Kenya.
Kenya Airways receives the first Embraer 170 LR(two more to follow) plane which will serve Zanzibar, Mombasa and Dar es Salaam routes.
Nation media group has had another record profit half year and an interim dividend of 3/= to be paid. They launched the business daily a few months ago, but could they be about to launch yet another newspaper in September?
It may be called the Daily Star, and will come a few months after Kiss FM’s Nairobi Star. Both Business daily and the Nairobi Star (where’s the John Githongo column and news website?)have faded somewhat from public presence of mind since their high profile launches. B-Daily is a great read online, and should remain so.
The Minister of Finance talks about having virtual meeting to cut costs – perhaps like Vodafone which has an AGM page with webcast and voting items online
opportunity for 5 dynamic African companies from either Burundi Rwanda Tanzania Uganda or Kenya to earn up to $50,000.