Monthly Archives: March 2015

Solomonic Blue Dress Courts

A few weeks ago there was an odd debate by thousands of people in many countries over what color a certain dress was – “White and Gold?” , or “Black and Blue?”.

While the dress debate rages on, there are similar debates are going on in the Kenyan judicial system. If you attend a Kenyan court, and hear lawyers for two sides argue, they will say polar opposites of each other. E.g a bank lawyer will say that Person A has defaulted on a Kshs 10 million loan and they want to sell his/her house. In reply, the lawyer for Person A will deny that he knows the bank, or took a loan from the bank, and that there is a fraudulent attempt to sell his house.

confusion-over-exact-colour-dress-appearing-picture-tumbler-has-triggered-frenziedOr in the case of the Tatu City, you have two groups of directors saying totally different things. One side calls the others fraudsters who have never put a cent in what is a billion shilling project, while the other  side says that foreigners want to deprive them of a rightful stake.

The truth is usually somewhere in between in these cases, but why do antagonists, through their lawyers and affidavits retreat to polar opposite sides ahead of court? This forces a judge to  wade through months or years of volumes of evidence and documents in order to arrive at at a Solomonic decision that may reflect the reality, or a sense of fairness. Not the truth.  In these drawn out cases sides are given injunctions and orders that prolong, and make the ultimate decision, needlessly more expensive.

Could a lot of cases be settled faster, and less time lost in the courts? There’s no need for Solomon in every case.

 

Jijini finance comparisons

Jijini Markets is a new site I stumbled on that compares Kenya financial products.

Jijini Markets screenshot

Jijini Markets screenshot

The rates are quite good and up to date E.g. just compared the ones for 3-month fixed deposits at various banks. Here’s hoping they expand their product range into other areas like telephone rates, credit cards, mortgages and enable loan rate comparisons at different banks using APR.

 

 

M-Pesa across Borders

Today brought an announcement that Safaricom’s M-Pesa customers in Kenya would now be able to send and receive payments with mobile money customers of Vodacom in Tanzania – enabling true cross border payments to take place between mobile companies in the two countries.

A sample transaction today shows how it works:

Assumptions

  • The (mean) Central bank rate today was 1 Kshs = TZS 20.17
  • M-pesa transfer cost in Kenya for Kshs 100 to 500 is Kshs 11 to a registered customer versus Kshs 44 to an unregistered customer.
  • Initial theory that the charged would be for unregistered were proved to be wrong in an experiment

Sending Mpesa from Kenya to Tanzania

  • Sent Kshs 300
  • Charge Kshs 11 (about 4%)
  • Exchange rate 20.17Kenya Tanzania Mpesa
  • Recipient got Tzs 5,757

Sending Mpesa from Tanzania to Kenya

  • Sent Tzs 5,000
  • Charge (assume 4%) Tzs 200
  • Exchange rate 20.17
  • Recipient gets Kshs 236

The transactions takes a few minutes to effect, but they actually work and it seems, for now, that there’s very little margin being made on the exchange rate, while the remittance / transaction charges are in line with in-country transactions.

This comes a few weeks after Tanzania enabled cross network mobile payments, which were endorsed by their main mobile money companies – Tigo (Milicom), Airtel, Zantel and Vodacom.

Guide to Cebu City, Philippines

A guest post by @sportskenya about a visit to The Philippines, home to boxing legend Manny Pacquiao, and famous political families – the Aquinos’ and the Marcos’. The Philippines archipelago is a collective of over 7,000 islands, spread over an area of 300,000 sq. kms in South East Asia. Here’s a sneak pic of the island nation through one of its cities, Cebu;

Getting There: I used Etihad Airways which is a 3-leg trip Nairobi-Abu Dhabi; Abu Dhabi-Manila and Manila-Cebu (though on the second & last part of legs to Cebu was through Philippines Airlines (partner of Etihad). The cost of the trip is about US$1,850 per person for a round trip. There was an hour layover in Abu Dhabi going to Cebu, but with 4 hours on the way back, there were no complaints while exploring the duty-free area and beautiful airport…☺. There is also an alternative route via Abu Dhabi to Hong Kong and finally to Cebu at approx. US$ 2,100.

Image 1 - Cebu City Sign courtesy of raisthename.blogspot.com

Cebu City Sign

On Arrival: It was fairly easy to go through the Manila Airport as well as Cebu airport. No visa is required from Kenya and a number of other countries. However there is an exit/departure charge of Philippine Pesos (denoted as ₱ or PHP) 300 – 2,700 (US$ 6.7- $60) depending on your travel class i.e. from Economy to First Class – and the fee is charged on every visitor irrespective of country or destination. Interestingly I was put on the Express Lane while leaving Manila airport because I was Black or is it of African origin…which the Immigration office said, was a rare thing (or did I miss the jibe?)

At Cebu, we were welcomed by the local tourism officials who had arranged for a welcoming party for attendees of the Global Voices Summit. Security was tight thanks to the Papal visit a few days before, but nothing overzealous from the security personnel.

Getting Around: The main form of transportation in Cebu are the Jeepneys (the equivalent of matatus in Kenya), which are open and fairly reliable. The charges are subsidized, meaning the Jeepneys can only charge a certain rate even at peak hours. The holding areas for these are also fairly well-organized with long queues forming at peak times. It costs between PHP5 -15 (US$ 0.10-0.35) per person per trip.

Cebu City - Jeepney courtesy of @sportskenya

Cebu City – Jeepney courtesy of @sportskenya

Cab services are also available though slightly pricey since most of these are metered and a standard fee of PHP (₱) 40 is charged by local transport authorities (...don’t know if it’s the same in other cities in the Philippines). Traffic does get heavy as is expected in any city at peak hours, but there are traffic marshals who make it orderly and less stressful of travels.

Cebu is relatively safe and is comparable to the Mombasa of yesteryear. Petty crimes like pickpocketing are also rare though not totally non-existent. I did my usual evening walks every day without any incident.

Where to Stay: We were booked at a business hotel (Harolds’ Hotel) at approximately PHP3400 (approx. US$ 67) per night which can go up to PHP6000 for Executive suites. There is also the Golden Peak which had slightly lower prices at PHP1180 per night. Most hotels are between $100 – 300 USD/night. Power is reliable with few outages, however, one needs to carry a universal plug as most power sockets are 2-hole meaning it was a hassle for those of us who use British standard plugs.

Staying In Touch: Thanks to the Global Summit organizers’, we got SIM cards and free daily airtime. However, the calls are fairly expensive especially international calls as well as for data. The infrastructure has been largely GSM and 3G in Cebu (though 3G is more prevalent in Manila). You can purchase a SIM card easily for about PHP100 (US$ 2.20) for the SIM card and some airtime at PHP100, 300 or 500 etc. Calls are at US$0.40 per minute, while data is expensive to use on the SIM and phone calls cost more than they do in Kenya. The issue is due to the spread of the islands which makes network tower investments expensive. Fibre optics cables are being laid in parts of Cebu as I could see from freshly dug trenches on some pavements and walking areas.

Cebu was also the landing spot for the country’s Internet through cable laid in the port city in 1995. However, authorities have only recently upgraded the infrastructure to fibre optics in a bid to organize the normally slow Internet and communications links.

Shopping & Sight-Seeing: Most Cebu speak Cebuano – the 2nd most spoken language in The Philippines which  comprises a mix of Spanish, Malay and a bit of English from the US. One can get through by speaking English, though on back streets one may need to get a local to accompany you, especially if buying items (for haggling purposes). There are quite a number of major malls in Cebu which explains the US cultural influence, and major US brands such as McDonald’s, Starbucks, among others, are big here.

Ayala-Cebu -Courtesy of philippineblog.com

Ayala-Cebu

Cebu is mainly a tourist city and also a port hub for this part of the Philippines. Historically the town was the point of entry for Spanish explorers including the famous Ferdinand Magellan who met  his death here. This was at the Battle of Mactan under the hands of Lapu-Lapu – a native ruler who became a hero for his resistance. The Spanish heritage is rich in the architectural and street designs as well as some of the words in the Cebuano language and naming too. However not as much Spanish is spoken as would be expected.

The city has beautiful beaches and for those with an interest in marine life and nature trails, there is quite a variety of things to choose from. From walks at the scenic Chocolate Hills to bathing in the beaches of Logon beach Malapascua. It also has some beautiful historic sites such as Capitol Hill (venue of GV Summit), Magellan’s Cross among others.

Eating Out: Filipinos love their meat and have a certain fascination for pork. I sampled mostly red and white meats; from beef to pork and chicken. Local dishes include tapa – cured beef; abodo – chicken or beef in some garlic and soy sauce; hamonado – pork in some pineapple sauce (almost like Hawaiian pizza but richer servings…) among others.

As far as seafood goes, I chose to play safe lest I pick reactions or trigger any allergies. But for all you seafood lovers, the sushi and octopus stew as well as other delicacies are in plenty. Interestingly I managed to sample a Chinese eatery which was quite busy in one of the many malls. The meals prices ranged from PHP150 to PHP450 on the higher end for a single meal (and therefore PHP300-900 for a double).

As for beer and other alcoholic drinks, the Cebuanos love their alcohol and would walk around meeting many going to make merry or having a good time. There are no Mututho laws here! They have some potent beer which retails at between PHP55 to PHP 80, depending on your choice of club. There is an interesting beer brand by the name, Beer Na Beer (almost thought there are Swahili people here too). Other brands include the potent Red Horse (which also comes in a large 1-litre bottle) and San Miguel. I usually opted for the Cali, a non-alcoholic brand or fresh juice (…teetotaler habits…). Filipinos also love clubbing with a number of clubs hosting international DJs during our stay as some were on holiday but mixing it up with some work. Their love for karaoke though was always one to behold.

Did You Know? The country was colonized by Buddhists, Hindus, Muslims, and Spaniards for over 400 years who left them the architectural heritage and bits of words in Spanish. They also left behind the Catholic religion of which 85% of the population of over 100 million are followers. This trip came after the first papal visit by Pope Francis, who like most of his modern-day predecessors, has to make the pilgrimage to this island state.

The Philippines name is a tribute to King Philip the II from Spain – of the 16th Century – who was a devout Catholic who established the first trans-Pacific trade route between Asia and Americas. The Americans who are their ‘latter-day occupants’ left more than that with the language, the road network, the love for anything consumerist and a largely capitalist state. After the overthrow of Ferdinand Marcos in 1986, the country embraced the Aquinos who have now managed to get a stronghold of the country’s political psyche.

Oddities:  

  • Karaoke, I spotted at least 5 different fellows on different days doing karaoke at their shops, complete with loudspeakers and screens to boot! Don’t ask me how they make their money…the only guys who can beat this are the Japanese I guess.
  • The country has a peculiar fascination with #Selfies – 2 of its cities rank among the top 10 #Selfies Cities of the World – Cebu City is ranked 9th.
  • Sinulog Festival is a religious festival usually celebrated every 3rd Sunday of January in honour of the Santo Nino de Cebu (loosely translated to Holy Child Jesus of Cebu) as well as the arrival of Ferdinand Magellan. It has a Mardi Gras-like parade which sees both young and old dance and make merry around the town for a couple of days. It has also recently been incorporated with the biggest outdoor dance party in the Philippines.
  • This island nation is the home of one of modern day’s sports legends, Manuel ‘Manny’ Pacquiao, who is a senator in the country’s Senate. He is also one of the biggest brands making endorsements all around. This may explode further if his next fight, titled as ‘The Showdown’, goes his way. It has been a long way coming, but might finally happen on May 2nd, 2015.

Cebu is a perfect honeymoon location especially around Jan-Mar of the year when temperatures are said to be cooler than usual (between 24-27 degrees). In the summer these can rise to a high of 33-36 degrees with humid conditions given the large water masses around. All in all, a fascinating city which I’d recommend to visit beyond your more storied Manila.

Namibia President wins Mo Ibrahim Prize

President Hifikepunye Pohamba was today announced as the winner of the 2014 Ibrahim Prize for Achievement in African Leadership. The award

Earlier, there was some speculation or expectation, with the announcement being made in Nairobi, that Kenya’s former president Mwai Kibaki might be this year’s winner. The prize panel comprising Salim Ahmed Salim, Martti Ahtisaari  Aïcha Bah Diallo, Mohamed ElBaradei, and Graça Machel addressed that in a  Q&A session after the announcement was made by Salim

He said President Pohamba made a mark in terms of reconciliation, cohesion, and respect for the constitution. He had offered sound leadership while remaining humble. His achievements were seen in gender equality (48% of parliamentarians are women) a focus on health (80% of HIV cases receive therapy and transmission rates are falling) and education, tackling poverty (social safety nets and disability grants) while grappling with challenges like the widening inequality.

  • Questioned on the criteria, Baradei said the awards are not given in a vacuum – and this is measured by improvements in governance and leadership. Presidents have to do the right things amid challenges and create a cohesive society in which citizens can work together. Aicha mentioned his acceptance of political parties  and consultation with opposition leaders.  Graca said the achievements in his country were done in a very short period of time.
  • Are all winners from the Southern Africa region? Machel said that was not true and they analyze every case regardless of region. She said that while three winners are from Southern Africa, the SADC regional also had some bad (young) countries
  • Does it create encouragement? Has the prize had an impact in Africa and is it work all that money? Yes!, they said. Salim said they would rather go a few years without an award, than give an award for no reason. There has been no winner for three years, and that may happen again in future. Ultimately, the answers lie in numbers derived from the Foundation’s Index of African Governance.
  • The MC read out a tweet from a Kenyan newspaper that Kibaki lost to the prize to Pohamba’ – and Salim said that it was an assumption that they had considered Kibaki for the prize.Mo Ibrahim at the 2014 Prize announcement
  • Chris Kirubi compared giving a prize to wealthy retired presidents to putting water back into the river. Mo Ibrahim stood and disagreed with that generalization, saying it was detrimental  to make. He said this was due to Africans relying on foreign media  and only knowing a few continental leaders like Mandela and then the infamous ones – and asked how many in the room knew the past winners like presidents’ Festus Mogae  or Pedro Rodrigues Pires or Pohamba (before today)? He appealed to the media to report properly on Africa by knowing the 54 presidents, some of who were wealthy, but others who lived humble lives, and find more heroes, beyond Mandela. He said Pires, a former liberation leader who became president, called a taxi and went to live with his mother after he lost the election. He also cited Botswana’s former President Masire who once traveled to  a meeting in Addis where he was overlooked by VIP protocol as they didn’t know he was traveling in economy class (to set an example).
  • ElBaradei said the fact that they don’t have a winner every year is also a message. They would like to see 2 or 3 qualified ex-presidents every year but Africa is still facing challenges of transiting to democracy and good governance.
  • The award, which is a $5 million prize paid over 10 years, followed by $200,000 annually for life thereafter, remains open to any president who has left office in the previous three years. It affords winners a chance to have dignified years in retirement and invest or fund activities they believe in.