Monthly Archives: March 2006

Homeless (Part III) no more

Moving
Was a bit of a hassle. If you call any freight companies they quote you between 20,000 and 30,000 shillings to move house, based on a rate of about 5,000 per hour – and it doesn’t matter if you’re stuck in traffic or they can’t fit a piano in a pickup. I was afraid they’d send a very small truck to maximise the number of trips, time and cost to their benefit.

Not having found a friend with a lorry, the next best thing was go to a market (e.g. Dagoretti corner) and strike a deal with a lorry owner, agreeing to terms before hand. The move went well, took two trips, and the final cost was about 7,000.

Exploring
I still consider myself homeless as there’s so much I don’t know about the new neighbourhood. I am exploring all aspects e.g. cheap pub within walking distance, sports bar, barber shop, different bus/matatu routes, traffic jam times, water availability/rationing/shortages, garbage disposal etc. In my mind, I still haven’t moved and sometime have to correct my driving directions so I don’t head back to my old place by mistake.

Part IV coming
I’m broke right now from paying rent at two apartments this month. I am trying to collect my deposit from my previous landlord. Hopefully this will be in early April, just in time for me to buy some Kengen shares.

Thanks to Guess and other commenters for their apartment tips this month.

Share certificates, banks, jobs

Share Certificates

One quirk about the Kengen IPO is that investors have the option of receiving actual (paper) share certificates. This goes against the spirit or the CDS system and the Central Depositories Act (2000) which in essence eliminated share certificates as cumbersome, slow to trade, could be lost/damaged etc. Earlier, officials had also said that IPO’s like Kengen would be offered only via the CDS system.

Who is a typical Kenyan investor?
However, this move enables traditional investors, from outside Nairobi who don’t have access to computers or who are unfamiliar with the CDS systems & probably haven’t immobilized their shares to take part in the Kengen IPO.

The typical Kenyan investor is still a buy and hold investor who does not trade/sell shares often and instead relies on dividend payments from shares to supplement their income. At the start of the IPO period, investors had opened just over 100,000 CDS accounts – yet some companies have many more owners. E.g. Kenya Airways alone has over 80,000 individual shareholders.

Bank muscle
Another group who has benefited from the option to issue share certificates is the banking sector. As of today Barclays, CFC, Consolidated, Diamond Trust, Equity, Family Finance, I&M, KCB, Postbank, Southern Credit banks and numerous other corporations (for employees) and cooperatives (for members) have all lined up to offer financing towards the purchase of Kengen shares. Most of them will hold the shares as security until the borrowers finish paying off these loans. This would be more difficult to enforce without actual share certificates.

The IPO will also bring banks a few million shilling in the form of banker’s cheques that must be obtained to pay for shares and can range from 100 to 1,500 shillings each. However some account holders at banks such as NIC (MOVE), Stanchart and Diamond Trust already enjoy the privilege of having a free banker’s cheque each month from their flat fee accounts.

What Else?
– Other IPO’s expected in 2006 include Suntra, Wananchi, Adopt-a-light, Equity Bank and Sarova Hotels.
– With thousands of Kenya’s beginning the process of opening CDS accounts this week, customer service for regular stock-broking customers is almost non-existent and likewise trading activities at the stock exchange will be at a reduced level.
– Barclays Bank registrars continue to experience delays in the immobilization of share delays immobilization of share e.g. KQ, EABL.

More 2005 Banks
National Bank of Kenya (bank No. 5 in asset size) both loans and customer deposits increased by 2 billion to 24b and 25.2b respectively. Commission & fee income increased from 840 million to 935m and the bank will present a pre-tax profit of 859m, but no dividends, to shareholders on May 19th at the Bomas of Kenya.

Commercial Bank of Africa (No. 7) bought 1/3 of AIG Kenya insurance.

Diamond Trust (No. 12) Will introduce visa cards, and by extension, will enable all visa card holders to access cash from pesa point ATM’s.

Imperial Bank (No. 16) deposits increased from 4.4 billion to 5.7b. increased cash position from 618 million to 2,089m but fee & commission income was flat.

Habib (Bank no. 22) increased deposits in government securities by 600 million and customer deposits by 230m. Fee and commission income reduced slightly to 54 m.

Development Bank of Kenya (No. 34) loans increased from 647 million to 1,073m.

Transnational Bank (No. 36)pre-tax profit returned to a more conventional 59 million, down from their record 1.03 billion profit in 2004. Loans increased from 876m to 1,201m while deposits decreased from 1.2b to 900m.

City Finance (No. 41) Kenya’ smallest, is the only bank so far to record a loss in 2005. The bank went from a 2004 profit of 11 million to a loss of 47m last year, largely due to increased provision for bad debts.

Opportunities

Communications:
Telkom Kenya is seeking distributors for its wireless services. Applicants must have 5 million in working capital and already operate a distributorship or retail outlet in Nairobi. Apply by March 31

HousingThe Ministry of Housing will 50 flats at Jogoo Road (Phase II) and 16 flats in Kileleshwa. Apply by April 21

As part of the GJLOS program, provide an IP-based telephone system for the Kenya Anti Corruption Authority. Apply though KPMG by April 20.

Jobs
CEO at ICPAK. Apply to esd@kpmg.co.ke by March 31

Sales account managers at interactive media services. applicants must have at least 5 years, sales experience (2 in telecom sector), business degree and a marketing qualification. Apply to jobs@ims.co.ke by 24 March.

At the national oil corporation of kenya
– Credit Controller
– Geophysicist
– Programs, Logistics and Procurement Analyst
– IT Coordinator
– Chemical Engineer (Petrol-Chemistry)
Apply through their site by April 3.

At nitin pandya & company certified public accountants
– Practice manager (nairobi)
– Audit supervisors (nairobi and mombasa)
Apply to Milan@questkenya.com

Sub-editors at the Standard Group. Apply to hrd@eastandard.net by March 28

Oil & Whiskey

Oil
Story in the Nation about Kenya’s on-going hunt for oil.

I am hoping that we don’t find oil fields/reserves in Kenya and not just because we are unlikely to escape the much-written-about Oil curse that has plagued so many countries. (See Economist and BBC).

We simply don’t have the governance systems in place to manage oil revenues which the Economist refers to as oil money flows from big oil to the big man and Kenya will become the latest example to confirm that resource-rich countries grow more slowly than resource-poor ones.

Kenya’s oil is likely to be found in remote parts of Coast, North Eastern, Eastern or Rift Valley provinces and these are areas that have not received much development in 43 years of independence. Discovery of oil is likely to be met by hostility from these residents (who are often armed to defend themselves from bandits and raiders) and who will have the view that “you (other Kenyans/central government/Nairobians) don’t/we (ourselves) don’t consider us to be Kenyans, you have never cared about us and now you’re only taking an interest in us because we have oil – so F__ you, we want our own country and we’ll cut our own oil deals, maybe even with Sudan, Ethiopia or Somalia.”

Also, the discovery of oil will not help other vibrant & diverse industries, especially agriculture-based, will be hurt by the distorted foreign currency position that oil will create. Oil & mineral industries never create as many jobs for locals as they promise – and agriculture, which supports a majority of Kenyan households & families will suffer leading to increased poverty.

Whiskey

There was a strange incident over the weekend at a high profile government workshop. The Chairman of the session sat down to take a break and he opened & sipped a bottle of mineral water – only to spit it out immediately. When he asked what was wrong, he offered his bottle, from a well known local brand to curious onlookers and it emitted a sharp smell that was suspected to be whiskey.

The likely conclusion was that an unknown company that sells fake goods on the market had mistakenly shipped out some of their whiskey product in the fake wrapping of a popular water company.

Also at the summit were senior officials of the Kenya Bureau of Standards (KBS) who have promised to investigate the source of the sample. KBS has been vigorously trying to ensure that imported and locally produced goods are genuine and quality products. They have identified & destroyed fake items, and shut down the source companies even as they have faced a lot of hurdles, some bureaucratic, some legal, including a court order that prevents them from inspecting the goods at a popular supermarket chain.

IPO & Other News

A group known as the Faida Consortium (Faida Securities, ASHBHU Securities, First Africa, Discount Securities, Equity Bank) have opened a special Kengen IPO website.

More Bank ($)
CFC: (Was no. 9 in assets which increased from 17.2b to 20.9 billion in 2005). Customer deposits increased from 12 to 15 billion while loans were up slightly less from 11b to 11.6b. CFC is the only bank without a remittance business that has so far increased its fee & commission income in 2005 from 168m to 217 million. Pre-tax profit was up from 353m to 418 million, and the bank will pay a dividend of 0.84sh per share to shareholders after May 26, which is also the date of the bank’s AGM.

Diamond Trust: Was 12th in assets but has leap-frogged Stanbic as it assets grew from 11.6b to 16 billion at the end of 2005. Deposits were up from 8.8b to 13b while loans increased from 7.1b to 10.3b. Thanks to its western union partnership, fee & commission income increased from 215m to 363m. Profit before tax increased to 427m and the bank will pay a 1st and final dividend of 0.7 per share to shareholders after its AGM on May 26 at the Serena.

Stanbic: Was 11th in assets at the beginning of 2005 which it increased from 11.5b to 15 billion by year-end. Loans were up from 7b to 8.7b while deposits increased from 8m to 11.7b. The bank is among many other to see a reduction in fee & commission income for the year which was down to 272m from 294m (in ’04), and yet it still increased pre-tax profit from 145m to 440m.

Others

ARM: Kenya’s third largest cement company, Athi River Mining (7% market share) posted improved results for 2005. Turnover was up to 2.2b from 1.6b and pre-tax profit was up from 172m to 296 million. The company will pay a div of .75 sh per share after the company AGM to be held on 8th June at the Intercontinental.

Total Oil: Turnover increased from 37.9b to 40.5 billion in 2005, however pre-tax profit reduced from 932m to 798 million. The company will pay a dividend of 2.5sh per share (same as in ’04) to shareholders after their May 3 AGM at the French Cultural Center

Sameer: Bridgestone company still retain a 14.9% stake in Sameer Africa (formely Firestone Kenya) year after the partnership break-up.

Kakuzi: Another tea & coffee had reduced turnover of 1.11 billion (down from 1.2b) and the company went from a 2004 profit of 93m to a loss last year of 112 million.

Developments

  • A technical institute known as the Nishkam St. Puran Institute will be established in Kericho Town.
  • Dominion farms multi-purpose dam, aqua culture center & agro-industrial project will involve the reclamation of 17,500 hectares of land in the Yala river & Lake Victoria basin.
  • The meteorological department now has a website. Hopefully we can get accurate weather reports and mercenaries can know beforehand if freak rains will shut down Nairobi traffic again.

 

opportunities

Education

  • Islamic Development Bank offering qard hassan or interest free loans for KCSE graduates who intends to pursue medicine, communications, computer science, and engineering beginning in 2006 – 07. Apply by 15 April to the supreme council of Kenya Muslims P O Box 45163 Nairobi.
  • New Zealand scholarships (2) Kenya positions) at this site and deadline for applications is April 30.

music

  • Now closed was a chance to be an international young music entrepreneur of the year – details at www.britishcouncil.org/kenya.
  • Compose a 3 – 5 minute patriotic song and send it to comms@comms.go.ke by April 7 – win cash prizes, and a chance to perform on Madaraka day.
  • As part of the GJLOS reform program a consultant is required to coordinate a music/song campaign to mobilise popular support in the fight against corruption. Apply to the GJLOS program at KPMG by 21 April.

Other vacancies

nation media group: news director, programme producer entertainment.  Apply by March 31 to the group director HR, P O Box 49010 Nairobi.

pricewaterhousecoopers marketing & communications assistant apply to recruitment.ke@ke.pwc.com by March 3. 1

at various flower companies

  • head of section (physical infrastructure) at a flower farm in Naivasha. apply to DN/A 709 p o box 49010-00100 by March 31.
  • production manager at a flower farm in Naivasha. Apply to the advertiser p o box 66743 by March 30.
  • managing director Waridi Farm. apply to applications@waridifarm.com by March 26.

at various NGO’s

  • programme coordinator – Kwale at Action Aid. Apply to hr@actionaid.org by March 27.
  • concern worldwide systems audit/support officer apply to hr@concern.net by March 31.
  • chief executive officer (CEO) at the Nairobi central business district association (NCBDA). Apply to the CEO (huh?) at p o box 10687-00100 by March 24.
  • human resource officer at the Red Cross. apply to Pamela.mokaya@ifrc.org by March 31.
  • water resource specialist at the MDG center. Apply to c.Kenyatta@cgiar.org by March 31.

Manpower
For the following, apply through Manpower Services (K) P O Box 50736-00200 by 29th March

  • Electoral commission of Kenya: IT manager, Deputy IT manager

Water service regulatory board: Corporate service manager, Result services manager, Communications and public relations manager, Human resource manager.

Hiatus

Defn: Attending a weeklong seminar at a hotel where the minimum charge for internet access is 175 shillings for 15 minutes (or 11.66 sh per minute) – meaning it’s not worth checking e-mail, browsing or blogging until the weekend.

Beautiful city
-Silent improvements are taking place in Nairobi.

– Road and lane names signs which had all but disappeared years ago, have re-appeared even in estates. I now know the names of roads in my local area, which I had never known before.

– The City has quietly fixed the traffic lights at University Way/Uhuru highway roundabout. These lights bore the brunt of stones whenever students rioted and have been off for many years. But it appears that since students are now more sober-minded and less riot-prone, the lights have been re-activated – but a bummer for me since that roundabout is now much slower to navigate. I have not seen any accidents there yet, but I can expect a few since matatus generally ignore traffic lights there and the City has not told motorists, who normally, zip through there at high speed, that they may have to now yield

– The Adopt-a-Light company has put up high floodlights (which they call slum lights) at the railway bus terminus, inside Uhuru park some parts of Mathare and Kibera which illuminate huge areas and improve security.