Monthly Archives: August 2011

NSE Goes Android

The Nairobi Stock Exchange now has a free Android app. Developed by Verviant, it is rather basic (download page), but show’s the the equity day’s prices changes, and summary of some announcements. Still, it’s a good start, and should be a work in process, and maybe investors will be able to track their portfolio’s (still empty) and drill down to read more comprehensive announcements, and bond prices too.

The Exchange probably needs to address the issue of large PDf statement that companies fax in their announcements and which the NSE scans to their site – and replace these with some basic documents that they can upload to the main and mobile site.

Another NSE geared app is the Rich app (from the Nokia Ovi Store), that is however designed for the Nokia E-7.

Education Moment: Is Our Children Learning?

The post is based on random thoughts on education in Kenya spurred by events like the Loreto Msongari bus accident, to talks with school administrators, observing universities take over libraries and nursery schools to expand their class sizes, reading blogs, and getting lots of press releases some of which touch on the education sector in Kenya .

Who will build schools?: With the cost of real estate going up in Nairobi (Kshs 100 million [$1.1 million] for an acre in some parts) it is getting harder to imagine how more schools can be built to cater for the young growing population.
Former Nairobi nursery school, now a university campus

Schools like Makini (profiled in this story in the Business Daily ) have grown from having 8 students to over 1,000 after many years of hard work and success, that they now have eleven (11) streams of primary school pupils. Also, due to demand for places, some nursery schools have long waiting lists, and advise parents to register/book places for prospective students , before the children are even born.

Value in education is found in other places, like the recent Hillcrest settlement, which concluded a decade-long running bank receivership by way of new investments by a venture capital fund and a private school chain (Rose of Sharon) who will continue to run and expand the school.

What about old schools?: This post by Rookie Manager further points out the waste of resources that parents throw by enrolling their children in newer private and expensive private schools and wonder if by channeling the same funds towards rehabilitating old existing public schools would go a lot further. These old schools have the advantage of being located in established neighbourhoods and have ample space for various educational pursuits

What about new parts of the city? Nairobi is growing driven by private sector housing developments, notably in the Kitengela and Southern parts of the City, but this s not being matched in terms of education.

One touted solution comes from the Bridge International Academies who offer a low-cost school model designed to quickly roll out in low-income areas and offer quality education at a cost of about $4 per month for each child. However a blog post was written that offered s contrarian assessment about the system and this elicited a comment in response and explanation of the program from the co-founder.

The anticipated demand for schools has also become point of controversy in China with a investment fund that plans to build 1,000 schools in Africa.

In terms of Curriculum & research, G33kdiary has a post on the current hunger situation in Kenya and she notes that Kenya’s food security is unlikely to improve as long as schools don’t teach agriculture and emphasize & promote farming livelihoods, while White African had another on the lack of Africa ICT research

Recent Financial incentives: recent ones of note include:

  • South Sudan is offering to pay loans for her nationals in the USA provided they have completed their education (bachelor’s degree, master’s degree or PhD.) and are willing to return home to work (The pilot program is called the South Sudan Student Loan Forgiveness Program – SSSLFP).
  • Eagle Africa (former AIG Insurance) recently launched a low cost insurance plan to protect kids from road accidents playground incidents – it covers the entire time an insured student is in the hands of the institution including travel to and from the school.
  • Having adequate savings to fund education is one constant constraint, and financial funds like British American (who just had a 60% subscription in their IPO) is one of them; Britak offer education savings plans – called Super E plus, Elimu Bora, and Invest Plus, which all offer a variety of savings, insurance, and investments.

Use of technology: Encyclopedia’s for schools was the theme of a recent talk by a visiting Wikimedia team at the iHub. They covered the need to spread knowledge to the offline population – such as to remote schools with few textbooks (but perhaps a computer), and offered a solution in the form of a single DVD from Wikimedia can hold over 1 million articles, as well as a free software tool called Kiwix which enables the articles to be read offline to teach students in remote distant parts
Wikimedia in education
iPads and Kindles : E-readers will change the way the developing world reads is an argument put forward in this post based on observations from Ghana, to Kilgoris. However, a follow-up report notes that Kindle rule changes from Amazon mean that content cannot be loaded across multiple devices at one time and each kindle has to be tethered to its own account – both of which limit its potential as a mass education tool.

The absurd: The above post title comes from an infamous Bush-ism or slip of the tongue by former American president George W. Bush.

And finally, in the news today, is a Kenyan Member of Parliament who is about to lose his seat – because one of the allegations leveled was that the MP could not articulate himself in English and Kiswahili and may have falsified his language proficiency exam results.

Dividend Payments across East Africa

Having bought shares in recent East African IPO’s (Uganda: Stanbic Bank and Rwanda: BralirwaBrewers), there appears to be some progress in addressing one of long-standing problems of buying such shares – and this is the bank charges associated with receiving and having to process dividend cheques that are paid in currencies that are fractionally weaker than the Kenya shilling.

With Stanbic, the Kenyan arm of the African bank has shown little interest in facilitating this even though a significant number of Stanbic Uganda’s 25,000 shareholders are Kenyan. In fact, the staff pension funds of Kenya Airways and the Central Bank are listed among the top 10 shareholders of the bank.

At Bralirwa, the dividends are issued by KCB Rwanda and via a late message, KCB Kenya state they are paying/cashing the cheques up to RWF50K (~Kshs 8,000) across the counter. ( If higher, the cheques will be sent for to Rwanda).

While the next step should be for East Africans to receive cross-border dividend payments by mobile money such as mpesa dividends this is only available to Kenyan shareholders. For now, the facilitation of affordable across-the-counter dividends, and other cross border trade & investment payment options is something that banks, not just KCB, with a regional footprint like Equity, Stanbic, Diamond Trust, and NIC should also take up.

EDIT: New communications from the banks shows new options for Kenyans who have invested shares across East Africa as follows:

Bralirwa: Any cheques of less than RWF 50,000 (~Kshs 7,750) can be cashed at the counter of any KCB Kenya branch at a fee of RWF 200 (Kshs 31) on the  production of an ID or a passport.

Stanbic Uganda: No certificates will be issued for the 1:1 bonus, and no physical annual reports will be mailed. But shareholders can now elect to receive dividends by electronic funds transfer, or mobile money (airtel money or m-pesa) after confirming their details at Comprite (Uganda) Registrars whose Nairobi office is at Marakwet House, Elgeyo Marakwet Road.

Award Season: Graduates, Mashujaa, Networks, Nature

African Union Kwame Nkrumah Scientific awards. D/L 15 September.

Arthur B. Schultz Foundation grants aimed at non-profit groups involved in women’s empowerment and disabled mobility solutions.

Changemakers.Org Details here on awards for citizen media ($5,000) and health, excellence, opportunities, other.

DStv: Eutelsat Star Awards are open to 14-19 year-old students in 42 countries to write an essay or design a poster on satellite technology and how it can assist further development of their communities, country or the African continent. D/L 26 August.

Infodev: Piloting virtual incubation seeks organizations in East Africa ad. D/L is August 15

National Museums of Kenya: For design of a Mashujaa national monument. D/L is 9 September and prizes are of Kshs. 300,000, 200k and 100k.

Orange: African Social Venture with prizes for digital projects in e-health, mobile banking, digital /mobile applications for education or agriculture that address needs of the ‘bottom of pyramid’. 3 winners will receive financial grants (25K€, 15K€, 10K€) and a 6-month mentoring program. D/L September 15

Pan-African Awards for Entrepreneurship in Education. Details here and has prizes of $10,000, $5K and $2K.. D/L is 10 October.

Standard Bank / Stanbic: graduate management program – D/L is August 15.

UN Awards for Young Innovators (aged 18 – 25) and digital innovators (non profits). D/L is September 15

Western Union is on the hunt to find the most globally networked individual. It is open to anyone with a facebook account and the site also lists some entering remittance figures for the 200 countries where Western Union is represented.

WWF KENYA / NETFUND Nature Challenge Africa from the Worldwide Fund for Nature (WWF) Kenya and the National Environmental Trust Fund (NETFUND) is a green business competition for entrepreneurs and targets businesses engaged in conservation, biodiversity and livelihood programs, that are seeking finance in the range of US$10,000 – 1 million.

EDIT

More found at Savvy Kenya blog

Tandaa Digital Content Grant: The Tandaa Local Digital Content Grant is a grant to support ICT in Kenya. It is like seed funding for companies entering new media and ICT. In particular, the grant seeks to support products and services developed for the Internet and mobile phone. D/L 22 August

Nokia Create For Millions App Competition: Submit your best Series 40 Java or web apps in Nokia’s ‘Create for Millions’ contest to win your share of cash and prizes, worth 1 million euros. D/L September 1

Shares Portfolio August 2011

Comparing changes to three months ago and since then, investor confidence has dipped following rising food & fuel prices, power rationing and a sliding shilling.

The Stable

Barclays Bank ↓
Bralirwa Breweries (Rwanda) ↑
British-American Investments (Britak) ↔
Diamond Trust Bank ↓
East African Breweries (EABL) ↓
Kenya Airways ↓
Kenya Commercial Bank (KCB) ↓
Kenya Oil Company (Kenol) ↑
Scangroup ↓
Stanbic (Uganda) ↓
Uchumi Supermarkets ↓

Review: The Portfolio is down 5% in the last three months while the NSE 20 Share Index is down 12%
– Best performer: Bralirwa 33% (this Q), then Kenol 22%
– Worst performer: Uchumi -39%, Diamond Trust -26%
– In: Britak, Safaricom
– Out: None
– Increase: None
– Decrease: None

Other:
Splits: Barclays
Bonus: Diamond Trust , Scangroup, and Stanbic Uganda
Dividend: KCB, Diamond Trust, Bralirwa, Kenol Scangroup, Stanbic
Events:
– Uchumi re-listed after five years of suspension.
– Took on the new IPO from Britak IPO (results on August 23), but passed on other new listings from Transcentury and Bank of Kigali. Meanwhile there are no privatizations on the table from the Government of Kenya
– NSE companies are making efforts to clean up their shareholder registers, with a view to applying dividends that have been unclaimed for several years to their reserves, otherwise they will have to be surrendered to the Government

Data: The NSE has stopped sharing free price lists, which now makes it harder to access daily market data. Meanwhile the CDSC has stepped up with investor awareness, and you now get a SMS notification of trades (shares sold/bought)