Monthly Archives: August 2006

Googling out Corruption

There was an intriguing, and sadly funny, piece on Nation TV (NTV’s 9 PM news) last night where reporter Robert Nagila called the offices of a company that has a controversial $2m tender to supply raw material to EAPC.

Someone (perhaps some directors) could be overheard mumbling what to tell the reporter who had unexpectedly called, before coming back on the line to tell Nagila that all company information, including a (Nairobi) office location were confidential matters that he would not disclose.

A google search of the company name reveals that the only mention of the company are in Kenyan newspapers and only in reference to the supply contract. Not every answer is in Google/ search engines but it gives the impression that the company was formed for only one purpose, or has only one business, which is to supply EAPC.

Compare that to the expose by Sharesleuth of a dubious company attempting to rip off investors diving into the bio-fuel craze. Yet the owners of this company, which actually exists, engaged in more elaborate side tricks, including a reverse merger, to prop up and get their shares trading at rising prices.

Google/search engine results are not perfect it goes to show that the days of briefcase contractors of the Anglo-Leasing kind may be numbered since a simple Google such can reveal something or nothing about a company and its expertise. What would have happened if staff at the AG’s Chambers had googled the names of any of the Anglo Leasing companies? And would they still have signed off on these mind-boggling contracts with international (non existent) company?

Kenya Re IPO

In another budget promise fulfilled, the Government will sell 40% of Kenya Reinsurance Corporation in an IPO, probably by the end of the year, or early in 2007.

They have now advertised for a lead transaction adviser, legal advisor, reporting accountant, receiving bank, PR firm and lead broker. Applications are expected at Treasury by September 8.

NSE: Share splits and divestures

EA Cables split
The Board of East African Cables which has been riding high atop the stock exchange has recommended a 10 for 1 share split – 20,250,000 of par value 5/= will be split in 202,500,000 of par value 0.5 each.

Shareholders will be asked to approve this (really a formality since the Trancentury Group controls 75% of shares) at an EGM on September 1, books close on September 4, and the new shares will be listed on September 5, 2006.

This is the third company after Kenya Oil and East African Breweries to split their shares, and the others appreciated significantly thereafter. EA Cable shares have already climbed by 10% this week from 364 to 399 per share.

Intriguing, but maybe out of reach for me now since, a typical investment of 10,000 shillings, will yield only 25 shares at the current price of 400 shillings. After the split, this becomes 250 shares of about 40 shillings, which still looks promising.

Mumias Divestiture
As promised in the 2006 budget speech the Government has now begun the process of divesting from Mumias Sugar Company. GoK will sell 18.04% of its’ 38.04% shareholding through an offer for sale on the NSE and parcelling the shares through brokers should be cheaper than going the mwananchi route again. As such they have advertised for transaction adviser/lead broker, legal advisor, reporting accountant, receiving bank, and PR firm to assist with the process with applications expected at the Treasury by 24 August.

Mid-Week Business

Retrenchment: There are retrenchments on going on at several state corporations this month as the packages have finally being approved by the Office of the President and the cost-cutting which is going to affect several thousand employees gets underway. The Minister of Finance is soon expected to grant tax waivers to cushion the blow to employees, but the packages are nowhere near as lucrative as those golden handshakes of the 1990’s since, these days, retrenched employees are no longer paid their employers’ contribution until they are 55 years old.

Debt waiver:  The Nairobi City Council has announced another six-month interest waiver for defaulters to pay the principal amount outstanding in six installments from August to January 31 2007. Failure to pay could lead to either denial of business permits, NCC auctioning a property, or even compelling tenants (not landlords) to pay the rates.

Business news sources: Since the Nation and Standard have both made most of their business sections and archives subscriber only, the only local newspaper to have free business news online remains the Kenya Times which has a comprehensive daily business section.

Heat + Inside Man = Nairobery: A crime wave has hit Nairobi in the last month that targets banks, forex bureaus, petrol stations and business people that are executed with a lot of forward planning, inside information, and stakeouts – all resulting in millions of shillings being snatched at a go without a shot fired. Much of the blame has been directed at recently released prisoners who have resumed violent criminal lives while the police have also pointed a finger at under-paid and frustrated bank employees.

Regional Aviation: 

  • Uganda will get a new national airline (25% owned by the Government) called Victoria International Airways, which will begin flights from Entebbe to regional destinations such as South Africa from October 1. from Air Finance Journal
  • Precision Air of Tanzania (49% owned by Kenya Airways) will receive three ATR 42-500 aircraft and three ATR 72-500 aircraft between 2008 and 2010. from Air Finance Journal
  • African Express Airways became the first international airline to fly and actually land at the Mogadishu International airport which has been closed for 14 years.

No more yellow maize: Africa is unlikely to receive imports of US corn as food relief in the future given that the excess US farm outputs can now be diverted towards the production of Ethanol. The grain required to fill a 25-gallon SUV gas tank with ethanol will feed one person for a year.

Sports Kenya: Kenya hosts Bangladesh in a cricket match this weekend, the first major local cricket event since the 2003 Cricket World Cup match where Kenya defeated Sri Lanka.

Jobs

From the daily papers this week

  • Regional manager at Africa now. Apply to kisumu@africanow.org. by August 18.
  • Various engineers at East Africa Cables. D/L is August 18.
  • Fund manager, accountant and various officer vacancies at Farm Africa. Details at www.farm-africa.org and D/L is 14 August.
  • Institute of Security Services: Senior researcher Nairobi, Officer director and project head Nairobi. Details at www.issafrica.org and D/L is 18 August.
  • Kenya Wildlife Services: head of business development, manager business development.  D/L is August 23.
  • Procurement analyst at the National Oil Corporation of Kenya. Apply to mdnock@nockenya.co.ke by 18 August.

The Wrong Train

There are two (non KR) trains chugging through the KBW community doing roaring business, picking up passengers and cargo. Much as I’d rather be on the infamous Bilaz train, it seems I’ll be punching a ticket on the Unemployment train instead.

It’s back to another facet of life I’d rather not re-visit, as I dust off my CV and get some thick soled black Nike’s ready to hit the infamous Nairobi pavement.

On the upside, sometimes you need a punch in the gut to get started on a new track and this looks like one.

End of the blog?
Just two weeks ago I shared Steve Pavlina’s 10 reasons NOT to get a job!.

Bankelele has been a useful medium over the last 1 1/2 years through which I have learnt so much from interaction and sharing. I must say that what I blog about derives very little from my daily workload as a, sometimes Bank Hangman.

Tarmacking may reduce my contribution to the blog even as as I am trying to generate more revenue out of it from advertising and freelance writing.

I have received various offers on account of this blog in the last year – and if I has said no, I eat humble pie, and ask that you re-submit your earlier offers for discussion.

It is also likely that a new employer may insist on the end of this blog as part of a new contract. I’d urge them to let the blog continue or to roll it over into a new medium of their choice. If not, so be it.