Category Archives: KISS FM

Kutwa Tuesday: Capital Chickens

Capital rights issues come home to roost

Last October this post discussed banks’ needing to raise share capital to support their rapid growth over the last five years. Since that time, Diamond Trust, NIC, Housing Finance, Equity and now KCB have all gone ahead and put plans in place to increase their share capital to catch up with their asset base.

KCB hopes to raise Kshs. 5 billion and hopefully this could spur some quality mid-tier banks, with foreign shareholding to step forward to the NSE listing place as well i.e K-Rep, Commercial Bank of Africa, Investment & Mortgages, Fina, Citibank and even Cooperative banks.

corporate news

KQ expands (From African Flyer blog) – Kenya Airways will from mid-year increase flights on routes in Africa (Ethiopia, Nigeria, Ghana), Mid-East (Dubai) and Far East (china, Hong Kong, Thailand)

Another stockbroker falls: This time it’s another small firm – Nyaga stockbrokers. This is not unexpected, as problems were well known for over as year and had even been discussed in a stockskenya forum. The authorities (CMA) can’t pretend to act surprised as they had in the past considered taking action against the firm whose managers repeatedly sold investors shares without their knowledge – and when caught they would blame errors, and take their time correcting the situation, only to repeat the same up to last week.
– Though the NSE launched a 100 million rescue package, a Business Daily story mentions that as much as 820 million could be owed to clients.
Other blogger takes: The KCIG has some suggestions for the capital markets authority while Coldtusker is dismayed by the pattern of bailouts of Nyaga Stockbrokers and Invesco Insurance after financial shenanigans.

OTC Bank shares: Are shares Family Bank available to buy on the over the counter?

New branches: coming soon Gulf Africa bank at Hughes Building – Kenyatta Avenue, and a new Family Bank branch opp. Yaya Center, Kilimani

Big radio opportunity: Kenya’s highest-rated radio show, Kiss FM
Big Breakfast Show (with Carol Mutoko) is looking for a new voice to join her on the show. Send a CV with a recording to md@kissfm.co.ke

New newspaper

A newspaper is the latest project by the team behind hit radio stations Kiss FM and and Classic 105.2.

Newspapers in Kenya are still doing ok, while in the developed world they are in a bit of a struggle and it has been predicted that newspapers in the developed world may cease publication around the year 2040.

The last new non-tabloid launched was the weekly Leader from Royal Media in 2005.

The new newspaper is currently hiring writers through advertisements on KISS FM.

Business Briefs

KISS FM firings: Another round of media musical chairs, this time at KISS FM. Most of them should land jobs at other media houses, further confusing listeners who tend to associate the personalities with particular stations. Last month it was Nation TV which poached several personalities from KTN.

Kenya Railways Privatization Plan: Seven bidders have been given till June 15 to submit their proposals to the government to manage KR, and the winner will be announced December 15th. The government has asked the bidders to consider the following in their proposals; (i) retain KR’s 9,000 workers until a World Bank retrenchment plan is adopted (ii) double the volume of cargo carried by KR within 5 years (iii) sign a performance management contract. The bidders have in turn agreed to increase KR’s capacity by 20% a year, and have all expressed no interest in continuing any passenger traffic on KR.

Nation Media Group: Turnover at the NMG increased from 4.5 billion in 2003 to 4.9 billion in 2004, and net profit increased from 602 to 641 million shillings (12 shillings EPS). They will pay a 100% dividend (5 shillings per share?) and in addition, shareholders will receive one bonus share for each three they hold as at May 2005.

Unilever Tea Kenya: Posted a 360m profit, up from 62 million in 2003, attributing it to better tea sales, improvements in production and favorable exchange rates. The profit comes to an earning per share (EPS)of 7.39 for the year, of which they will pay 6 shillings as a dividend. In 2003, they also paid 6 shilling divided, but on earnings per share 1.27 shillings only.

Uchumi: Uchumi lost 632 million in the last six months of 2004, compared to a loss of 217 million in the same period last year. Their turnover also reduced from 4.3 billion to 3 billion. They are renewing their inventory and will dispose of land, buildings & non-core assets to raise 900 million shillings for debt and creditor repayments.