Monthly Archives: February 2015

GEMS School Nairobi

In Kenya for the last two years is the GEMS Cambridge School on Magadi Road, just past Galleria Mall. They are part of the 55-year-old GEMS network, the largest K-12 school system in the world with 160,000 students and 13,000 teachers at with schools in Dubai, France, US, India, Europe and now in select African countries, offering different systems of education like IB and IGCSE.  Kenya will be their African headquarters and the school will soon be joined by others in Uganda and Nigeria then later by more in South Africa, Ghana, and Tanzania.

Interestingly, they price the English curriculum education they offer in Kenya as  ‘upper middle’ with fees ranging between Kshs 50,000 -120,000 ($1,333) per month, while in Uganda they will price themselves as a premium school that will command even higher fees. They also don’t consider themselves ‘expensive’ as other Nairobi schools charge much more in a curriculum system that has not had new schools in about 30 years.

The GEMS Nairobi school has facilities include ICT and science labs, cricket field, pool, full track, and library, for the almost 1,000 students who also include boarders. They work to transition kids from the Kenyan (8-4-4) system by doing assessments of new students and monitoring their changes in terms of critical thinking and habit changes.

Philanthropy is a big part of GEMS, and through Varkey Foundation, they have several initiatives including an annual $1 million teacher prize in which a Kenyan is a finalist this year. They have also rehabilitated a school in Kibera, donated 30 libraries to schools in 8 counties, and are collaborating with the iHub on kids tech camps.

Kenya gets Coal Power

Amu Power is a consortium of Gulf Energy on the technical side and Centum Investments who will do the funding side aims to be the only locally owned independent power producer and will produce 960MW  via coal power at the Kenyan coast.

The plant will be designed and built Chinese partners, supported by the ICBC, the world largest bank, with partial guarantees of the African Development Bank and built to World Bank standards for coal plants. The total cost of the project will be $2 billion and about  Kshs 36 billion will be spent in 21 months of construction around Lamu i.e. about Kshs 1.8 billion in a county that has an annual budget of Kshs. 1.6 billion

The backers are trying to work with the local community where there’s a local unemployment problem; they will need, train, and employ local certified welders plumbers, masons, bricklayers etc. Amu is planning to lease land from the Kenya Ports Authority in Kwasasi on the mainland (not on any of the Lamu islands) for their 100-acre plant that they will operate for 25 years. Coal plants are always set up next to large bodies of water and they plan for excess water they desalinate to be shared with the town people.

The Intention is to use coal from Kitui, Kenya once production there starts but the plant will be built to use South African grades of coal that may be imported in the interim. The founders say coal is necessary for industrial growth to a scale that hydro and renewable energy can’t match. South Africa is 94% powered by coal, the US 43%, China 81% and India 68%.

Shares Portfolio February 2015 

Compared to last quarter, the portfolio is up 26% while the NSE 20 share index is up 3% since November 2014.
snoop
The Stable
Bralirwa (Rwanda) 
Centum (ICDCI) —
Diamond Trust —
KCB ↑
Kenya Airways ↑
Kenya Oil ↑
Mumias ↑
NSE ↓
Safaricom ↑
Scangroup ↑
Stanbic (Uganda) ↓
Unga ↑
Changes
In: None
Out: None
Increase: None
Decrease: None
Best performer: Mumias Sugar  (up 58% this quarter), then Kenya Airways  (38%)
Worst performer: Stanbic – Uganda (down -5%) , NSE (-4%)
Looking Forward To
– Bank profits & dividends from banks (KCB, Diamond)
– More M&A deals from Centum