Monthly Archives: May 2007

Summer Calendar

Up comings events

What ICT can do for your business: besides make you a multi-millionaire – A talk by Jonathan Somen, Access Kenya CEO.

Uchumi anniversary: One year after the company was shut down, the receiver manager will on May 31, explain the way forward to shareholders

Welcome to Kenya: June 1 sees the arrival of CNBC broadcasts and Virgin Atlantic air services

Rhino Charge: The 2007 Kenya Rhino Charge presumably in the Kerio Valley, June 1 – 3

TED Global in Arusha: Dubbed Africa: The Next Chapter, June 4-7.

edit – Tusker Safari Sevens
Kenya’s premier rugby event: June 8 – 10

Satellite & wireless conference: The African Satellite & Wireless Broadband Conference & VoIP Forum at Safari Park Hotel, Nairobi, 11-13 June with the theme of “Broadband bridges across Africa: First and last mile solutions.”

Get ready for election 2007: June 30 is the deadline for public servants (employees of government, local authorities, academia, parastatals, judiciary, military, others) who intend to contest for parliamentary seats in this years election to resign from their jobs.

Meet the President: A business roundtable with Kenyan government leaders on July 17 & 18 in Nairobi. Speakers include H. E. President Mwai Kibaki and Ministers Amos Kimunya, Mukhisa Kituyi, and John Koech

Africa investor Awards : The 2007 awards will be handed down on 8 November in Lagos, Nigeria. Kenyan nominees short listed include;
– The Nairobi Stock Exchange for Best African Stock Exchange
– Kengen for Best African IPO (also in the running is Stanbic Uganda)
– African Alliance for Best Africa Research Team
– Kenya Commercial Bank for Best Ai 40 company

Deloitte celebrate 100 years at the Nairobi National Park

Deloitte celebrated 100 years of doing business in Kenya last week at the ivory burning site inside the Nairobi National Park

I’m sure Deloitte will exist in another hundred years, but will the Nairobi National Park as we know it, be around in a hundred years?

This has been debated before but it sure to come up again and again as the city rapidly expands into all open land to the South and East.

And with the three-hour traffic jams (more) that some city residents experience daily, each way on roads like Thika Road and Mombasa Road, there is appetite for some improvement.

Decision-makers may find it easier to hive off land than to radically change other aspects of rapid urbanizations such as taxation (increase tax on cars to reduce their numbers), develop a mass public transport system, or infrastructure (more by-pass roads) which in any case would still have to run through the park.

So it’s likely that in a few years you can expect moves to reduce / encroach on the parks 117 sq km to create more residential and commercial space close to the city.

And residents lulled by the offer of more land, easier access to towns, offices and new homes may support the absorption of some park space by the city of Nairobi.

Though the park has stood the test of time and remains largely intact to past encroachment efforts, the animal numbers have diminished as developments to the South have cut off migration paths. Stories of lions or leopards being seen in the Langata area at night have all but disappeared. The Kenya Wildlife Service has proven adept at relocating animals including elephants and rhinos to other parks in the country and would be called upon to do the same here.

The park has few forested areas so it’s easy to see quite far in the park. But at night during the Deloitte function, you could see lights in the distance all around the park, marking the edge of human activity bursting to enter the park.

Good luck to Nairobi National Park over the next 100 years!

Access Kenya IPO results

Access Kenya summary
Individual applicants: who applied for the minimum 5,000 shares get 900 shares, while those who applied for 25,000 get 4,000.
Institutional investors: that applied for the minimum 100,000 get full allocation, while those that applied for 1 million get about ½ that .

Serena expands to South Africa
Serena shareholders will this month be asked to approve creation of a South African subsidiary company

CMA reforms planned
The Capital Markets Authority has commissioned a consultancy to modernize & improve its operations by strengthening its legal and regulatory framework. Part 1 of the study will have the consultants evaluate the capital markets and central depositories acts, look at secondary market malpractices & sanctions, cross border listings & trading, methods of dispute resolution among others. In Part II, the consultants will come up with revised regulations that, based on the weaknesses identified in part 1, ensure that Kenya investor laws & regulations adhere to international best practices. This is part of the FLSTAP reform program of the Ministry of Finance and consulting firms can apply by June 13.

Kutwa Tuesday

These are stories I have found (kutwad) and want to share this Tuesday

Getting a story straight: One way of getting your story out through the media is to buy space and have your statement run exactly as you mean it and straight to the public – and there are two recent instances of that.

Street Lights: First is by the CEO of Adopt-A-Light Esther Passaris who launched her transformed street lighting crusade into an anti-poverty and anti-corruption vehicle that may lead her to being the next mayor of Nairobi.

This comes after the City council of Nairobi disowned the contract they had with her company and advertised for other companies to fulfill outdoor lighting & advertising functions which were had been exclusively done by Adopt a light.

What’s in your water bottle?: The second statement is a concerned water expert who is worried that Kenyans may not understand the different types of bottled water being sold – drinking water, natural mineral water, mineral water, carbonated water etc. – and that water bottling companies are being liberal with the advertising truth. He writes that natural mineral water is bottled at source, and with no chemical treatment, which is an expensive process – and he doubts that it is possible for a company actually producing such water, can sell it at the same price as drinking water. I.e. some of the companies are making false claims on their water bottles. He also cautions users to check the amount of fluorine in bottled water as it can lead to bad teeth and bone disease (Should not be more than 1.5mg per litre)

Do they work?: Of course the media love a story waged on their papers and companies such as Kakuzi, Portland cement, Kenya pipeline, Nzoia Sugar and other companies have all bought space (in more than one newspaper) to run statements, usually denying allegations of financial impropriety. There was even an infamous statement defending Anglo Leasing a few years ago.

Esther Passaris took out 2 page advertisements in both the Sunday Nation and Sunday Standard – probably at a total cost of Kshs 1.5 million (840,000 for the Nation, and over 600,000 for the standard)

The media is happy because these statements add to advertising revenue and often lead to other statements and form a base for them to tackle stories that they may have been hesitant to delve into. IMHO, it is unwise for corporations to place such self-serving advertisements especially to deny allegations – the better thing is to lie low and let the bad press (negative stories) pass, plant a few trees & build schools (CSR is good first aid for a scandal wound), answer questions from regulators or authorities – but don’t splash your story in the media!

(See past PR statements by De La Rue and Italians in Malindi.

Communications Wananchi has applied for a data carrier network operator – DCNO license – joining other firms such as KDN, Simbanet, Telkom, UUNET and Access Kenya.

Bounty Hunter: In a Ugandan newspaper, I came across an article (copy here) about the search for Felicien Kabuga who is wanted for his role in the 1994 Rwanda genocide. The article had more depth than any story I have read in any Kenyan paper (fear of libel laws perhaps), but what continues to amaze me is that despite almost every literate urban Kenyan knowing about the search, a reward on offer of $5m (down to Kshs 335 million at current exchange rate), recent photos of Kabuga that the Nation published a few months ago, and significant evidence that he spends a great deal of time in Kenya – no one (his friends & associates) cares enough, for posterity, or for the reward, to turn this guy in. And now there’s a deadline – as the mandate for the International Criminal Tribunal for Rwanda (ICTR) and presumably the reward will expire at the end of 2008.

Brother please! Just came across this story – which at first I thought was from the the Onion or some satire website. But it appears to be a true story – that the wreckage of a six-seater aircraft has been found in Cameroon three months after it crashed. So should we be greatful that the KQ crash site was found within 48 hours?

Money go round: Even as some of the larger pyramid schemes are experiencing cash flow problems, smaller ones are still attracting new investors. In the newspapers every day there are more schemes in the works listed in the classified sections under business opportunity – all offering 16 – 20% returns per month, just for investing a small amount for a weeks.

Real estate The Kenya anti corruption authority (KACA) is seeking land in milimani, upper hill, kilimani or wastelands, presumably to set up a new office building. Lots sought should be 2 to 5 acres in size, close to major road and details should be sent to the Director by June 14.

Mining
– On J7 July at the Msambweni divisional office, a case will be heard between Simon Ndungu Karanja vs. Tiomin over his 1.9 ha piece of land
– Gippsland offshore petroleum of Australia is doing an geophysical survey of the Kenya coast (kipini area, ungama bay)
– Tile & carpet center are prospecting for carbon dioxide in (Kereita forest) of Kiambu district
– Oil giant Halliburton is moving is headquarters from Houston to Dubai!

Kampala expense tab

Uganda Securities Exchange

Where are my Stanbic shares today?

How much did a week in Uganda cost?

– Hotels (73%) are the one expensive item about the country. There is a commonwealth heads of government (CHOGUM) summit coming up later this year and there are major investments all geared towards that including new hotels coming up, sprucing up the town, and other investments to carter to VIP’s. Hotels in the Kampala CBD range from nice small $40 ones to $150 at Speke and Grand Imperial, to higher at the Sheraton and new Serena.
– Newspapers (1.38%). There’s the New vision, Monitor (owned by NMG) and Red Pepper which has evolved from a racy tabloid to a more respectable daily newspaper that is sold alongside the other two. Also, at around 3 PM each afternoon, the Daily Nation and Standard from Kenya can be bought outside the main Barclays Bank building in town
– Internet (1.68%). Cyber cafes are plenty around despite the electricity mini crisis. Most charge about 1/= (UG 25/=) per minute.
– Telephone (1.66%) You can use your Safaricom or Celtel lines as usual here. But for Safaricom, air time cards are only found at some MTN shops and are sold at about 35% extra. i.e. buy a 100 shilling card for 136 shillings equivalent. Seasoned travellers are either post-paid customers, or buy enough cards before they leave Kenya
– Meals & Entertainment. (8%) Food is relatively cheap compared to what we pay in Kenya even at places like Steers and Pizza Inn. Also included Spiderman at Garden City Mall (an upscale mall with the local Uchumi supermarket), rugby at Kyadondo, and a lecture series event.
– Gifts (8.61%) . Mostly clothes from the equivalent of Masai Market
– Transport (4.1%). Somewhere there is taxi to Entebbe airport (40km away for about Kshs. 2,000) but most getting around Kampala is on the back of a motorbike and dashing to your destination. At first it was scary, but you get used to it as it’s the fastest way to get around town as they squeeze through the city’s traffic jams. But they can be dangerous and someone told me there are a couple of accidents a day, some fatal – with the driver abandoning his passenger and bike on the spot. The only faster way to get through town is in a VIP motorcade (the President’s convoy is a sight to see) – Personal items 1.59%
– Other expenses 0.15%

Total expense: about 2 million Uganda shillings or US 1,200 or Kshs 80,000

The one remarkable thing about Kampala is the level of safety – security is assured. Whereas in Nairobi you get worried about being out past 6PM and on some streets any time of the day for and are always on the lookout for phone snatchers, pick pockets or armed thugs, here there are no worries. The fact that all watchmen (shops, banks) have guns may be a factor, but a country that has gone through years of war has no tolerance for violence. With all the guns around, police are super-armed (as are VIP mototcades).
– This is also a country where you can encounter a wedding convoy with the bridal party riding in four humvees!

Jobs
Jobs from the Kenyan daily papers this week

Fund raising & communication manager at Action Aid. Apply to actionaidsomaliland@actionaid.org by 31/5

Akamba bus: General Manager, chief finance officer. Apply to mushtaqk@akambabus.com by 31/5

Barclays: Branch managers, branch coordinators, customer advisor, and local business advisor. Apply to the retail expansion program, market branch 30018-00200 by 25/5

Equity Bank: Business growth & development manager, operations manager, credit manager. Apply to jobs@equitybank.co.ke 31/5

Area sales manager at Eveready. Apply to asm@eveready.co.ke by 25/5

Flashcom: Finance manager, sales manager, network engineer. Apply to recruitment@flashcom.co.ke by 4/6

Kenya Land Alliance: network capacity building officer, assistant accountant. Apply to kla@africaonline.co.ke by 25/5

National Council for Law Reporting law reporter, assistant law reporter (2), systems administrator, web developer (2), proof reader (2), publishing assistant.
Apply online by 22/6

Pricewaterhousecoopers: human capital manager, head of marketing & communications. Apply to recruitment.ke@ke.pwc.com by 1/6