Monthly Archives: January 2006

Dilemma, dream car, jobs, and stuff

Dilemma
I’d like to attend a wedding in Ethiopia next month, but my finances have been absolutely wiped out by unexpected car expenses in December . This will be my first true trip to another African country and it will be a nice chance to see some old friends who I have not met for years. It’s tempting, but wrong to borrow money for a holiday and I am hesitant to organize a campaign to finance the trip. Also, the wedding there coincides with a very important birthday here which I have been warned not to miss. The (lack of) cash factor will probably settle my dilemma as the clock is ticking…

Un-affirmative action
With the just announced standard 8 (KCPE) results and form one selection of students, many Nairobi parents are crying foul that their children who scored excellent marks are being locked out of national schools who are instead admitting students from rural areas with relatively lower scores. The selection system is based on the belief that a student in Wajir who scored about 350 in KCPE would likely have scored 430 if he/she had schooled in Nairobi and therefore is more deserving than a student in Nairobi who scored 420. The system has many supporters (outside Nairobi) and detractors (urban residents, private schools), but now many Nairobi parents are vowing to educate their kids in Nairobi, but for their last year, they will transfer them to rural schools to sit for their exams there – thereby improving their kids’ chances of landing a coveted place at a National School.

Jobs

From Hawkins & Associates
Apply online for:
– Director of Operations at East African Development Bank
– Director of Legal Affairs at East African Development Bank

Others are;
– Sales Representative
– Marketing Research Analyst
– Graduate Management Trainees
– Regional HIV/AIDS Advisor

Government of Kenya
Over 980 jobs at various government ministries and the public service will be posted here soon. Closing date for applications is February 3 2006

Kenya Commercial Bank
KCB is hiring
– Head, branch network audit
– Manager corporate communications
– Sales managers
Closing date is January 20 and applications should be sent to the divisional director, human resources, KCB, P. O. Box 48400-00100 Nairobi

Trivia
– Week in ATM’s; Equity Bank’s ATM’s went live this week while KCB and other bank’s machines kept running out of cash. Happened three times when I was queuing.
– The Kenya Power & Lighting Company (KPLC) plans to introduce a premium SMS service
– Hon. Kalembe Ndile as President.

Dream car
The Bugatti Veyron 16.4 as reviewed by the NY Times.

Pros: Fastest, most powerful production car in the world with 1,001-horsepower, 0 to 60 MPH in 2.5 seconds & to 250 in 55.6 seconds, 4 turbochargers, 7 -speed gearbox, 16-cylinder engine, 253 MPH top speed, all-wheel-drive system. Verdict: A checklist establishes whether the car is ready for maximum speed, and if all systems are go, the rear spoiler retracts, the front air diffusers close and the ground clearance, normally 4.9 inches, drops to 2.6 inches.

Cons: Most expensive production car in the world – $1.2 million before taxes, Compact with most of the space inside occupied by an enormous engine, 9 miles per gallon city fuel economy and 18 on highway – at maximum speed, the car would theoretically run out of fuel in 12 minutes, has 10 radiators. Verdict: Embarrassment, injury, a big repair bill or worse await a driver who does not show proper respect.

Follow-ups
I finally sold my referendum newspapers but my expectation of only having 15 kilos turned out to be way off – and I was able to sell off 57 kilos of old newspapers netting 855 shillings (@15/kilo). Actually I had 62 kilos but the butcher admitted that his scale shaved off/under-weighed a kilo from each of my 5 bundles of newspapers.

The road to Mombasa is finally going to get repaired. I hope it is done by a reputable company and built well to last such as the Waiyaki Way dual carriageway which is still an excellent road 15 years after it was built, unlike some other roads which collapse within a year of opening.

Your beer, your pension

Jaindi Kisero argues that the National Social Security Fund (NSSF) should be shut down and then re-constituted as a pension body that can be run without interference from the Government.

The NSSF owns shares in East African Breweries (8.26%) and British American Tobacco (20%) whose sales may suffer some Alcoblow effects. The police crack down on drunk driving on highways is having positive effects – the number of drunks on the road has reduced and there are fewer accidents – but in the process some prominent bars are seeing a drop off in patrons who now prefer to use their neighbourhood or ‘local’ bars where there are no road blocks/or from which they know all the panya routes or short cuts to their homes.

More serious are the proposed new penalties which include an 18 month jail sentence for repeat offenders – in essence you could lose you job and more than two productive years of your life for having one too many beers.

Bank shares in ’05

Share prices of financial institutions listed at the Nairobi Stock Exchange in 2005.
Share prices as at: Dec 04 Dec 05 Change
Barclays Bank 203 263 30%
C.F.C Bank 58 75 29%
Diamond Trust Bank 29 32.25 11%
Housing Finance 9.35 13.95 49%
I.C.D.C Investments 60.50 72.50 20%
Jubilee Insurance Co. 59 83 41%
Kenya Commercial Bank 68 113 66%
National Bank of Kenya 17.80 28.75 62%
NIC Bank 50 51 2%
Pan Africa Insurance 21 40 90%
Standard Chartered 128 139 9%

Dividends: Barclays paid 14 shillings per share as total dividends in 2004, followed by StanChart at 6.50 and KCB at 2.50, while other banks paid 2 shillings or less per share.

Other activity: Diamond Trust issued a 1 for 4 bonus share, while CFC had a rights issue in a 1:12 ratio. Jubilee insurance consolidated its African holdings, while a merger at Pan African insurance is pending in South Africa.

Summary: With no capital gains tax in Kenya, shares are still a good way to build savings and earn an excellent return for dedicated investors.