Category Archives: EABL

Airbus to Kenya Airways?

Airbus have set their sights on re-capturing some aircraft orders from Kenya Airways.

The Boeing – Kenya Airways (KQ) partnership has been very successful especially with Boeing’s highly-rated 777 and it looks unlikely that Airbus will break the Boeing strange-hold on KQ’s fleet. Still, the airline industry is a continuously evolving one and airline order decisions can be determined by whoever can come up with the most creative financing offer.

Boeing has already selected KQ’s main rival – Ethiopian Airlines to be the launch African airline for its new 787 aircraft. Airbus can counter that move by buying up KQ’s older Boeing 767 aircraft from the airline and selling Kenya Airways their new all-new A350 instead at heavily discounted prices – as their African launch customer.

Other news
CMC: (distributors of new Volkswagen, ford, land rover, others) The company’s turnover increased from 6 to 6.81 billion shillings and after tax profit increased from 263m to 340 million shillings (7.0 EPS). The company will pay a dividend of 1.5 shillings after the AGM to be held Connaught House in industrial area on February 24 at 11 a.m. (Shareholders register closes on Jan 31)

A Baumann: AGM will be held at the Bomas of Kenya on Saturday, February 11.

Serena: Kenya Commercial Bank will set up help desks at its branches to assist Serena shareholders in regard to the share swap offer.

Foreign Aid to Africa
– The European Union will set up its own trust fund to disburse aid to Africa without reference to the World Bank which is currently led by U.S. neo-conservative Paul Wolfowitz.
– The US plans to re-deploy diplomats from Europe and send them to developing countries.

Opportunities

Scholarships
Ford foundation international fellowship program will be giving out 16 fellowships to Kenyans (among 47 to East Africans) for studies in any part of the world. Ford will finance tuition, health insurance, subsistence, travel and other costs towards up to 3 years of formal post graduate study. Forms and details can be obtained from this site and the deadline for applications is March 1.

Agriculture
For ranchers: To combat the loss of livestock from the ongoing drought, the Ministry of Agriculture and the Agricultural Finance Corporation have launched a livestock- off-take program which targets private ranch owners with surplus land capacity to purchase animals from drought-hit areas. Apply through info@agrifinance.org.

For mid-size farms: A horticultural exporter is seeking farmers in Rift Valley and Central provinces with at least 40 acres of land, year round supply of water, adequate labour, and who are willing to implement EUREPGAP requirements – who will then grow French beans or snow peas for exports . Apply to DNA/615 P O Box 49010-00100 Nairobi by 28 February.

Beer distribution
East African Breweries is seeking distributors of its senator keg brand. Applicants must have a pick-up, retail outlet, PIN & VAT registration and be prepared to invest 600,000 shillings in the business. Apply to the head of group procurement EABL P O Box 30161 Nairobi by January 30.

Jobs
Accountant at the Kenya Horticultural Development Program/USAID Applicants should be fully qualified accountants with 5 years experience in budget preparation and financial management, preferably having prior accounts experience with USAID-funded projects. Apply to angela@fintrac.com by February 24.

British American Asset Managers
– Portfolio Manager: applicants must have business degree, professional qualification e.g. CFA and have worked in investment management for 3 years.
– Manager – Intermediary Development: applicants must have business degree with a marketing qualification and 3 years experience in financial services.
– Financial Planning Manager (7 positions): applicants should have business degree, 3 years experience in financial industry e. g banking, insurance, stock broking or fund management.
Apply to baam@baam.co.ke by February 3.

KLSA – Pannell Kerr Forster
– Audit managers: applicants should have a degree with accounting qualification (e.g. CPA, ACCA, ACA) and five years experience at audit firm, providing audit services to different companies as well as posses good knowledge of ISA and IFRS
– Tax Manager: applicant should have degree with accounting qualification (e.g. CPA, ACCA, ACA) and five years experience at a tax consulting firm.
Apply to pkfnbi@klsa.net by 15 February.

KADET Microfinance (a World Vision subsidiary)
– Head of Operations: applicants should have advanced business degree, 10 years experience in banking or micro finance, – at least 5 of which at senior level and be aged 30 – 45 years.
– Human Resource & Administration Manager: applicant should have a business degree with HR specialization and 4 years HR and admin experience at large corporation (age 28 – 45)
– Executive Assistant to CEO: applicants should have university degree, 3 years PA experience and be aged 28 – 35 years.
Apply to kadetrecruit@wvi.org by January 27.

Procurement Specialist to the Government of Kenya micro, small and medium enterprises competitiveness project. Applicants should have 8 years relevant experience, a commerce or business degree with good knowledge of GoK and World Bank procurement procedures and be members of the chartered institute of purchases and supplies (MCIPS). Apply to info@msmekenya.org by 10 February.

Airline: Precision Air (Tanzania) is hiring 10 flight attendants. Apply to pwrecruit@precisionairtz.com.

Gambling: The Panari Center is seeking dealers, inspectors and pit bosses to work at its casino.

Bambuad & Out

Today, August 4th, is the final day for winners to collect their prizes in the Bambua Tafrija promotion. The company drew 77 winning numbers between April 18 and July 3. Not having been a winner myself despite my valiant efforts to succeed, I will now take a month-long vacation from their products to recover and reload.

Half way through 2005

Three companies going through significant times:

EABL
East African Breweries (1/5 of the value Nairobi Stock Exchange) ended its year on June 30th. Looking at its half year numbers, it is on track to have ended the year with 22 billion in sales and a profit before tax of 9 – 10 billion shillings, with beer consumption up over 20% in 2004/5. During the year the company did a 5 for 1 stock split and also got listed on the Dar es Salaam stock exchange in June.

Kenya Airways
Was the first company Kenyan company on the Dar es Salaam, and it can be argued that Tanzanian investors are the ones who kick-started the stunning appreciation of KQ shares. The company started the year at 17 shillings a share, and six months later the shares are at 69 shillings per share, a 300% increase.

Safaricom
All was not rosy despite the super-profits (6.9 billion from sales of 27 billion) that they announced last week. Negotiations will begin on July 12 between the government and Vodaphone over their 1998 shareholders agreement. Despite his desire to continue as MD Michael Joseph’s contract was renewed for only six months, making it likely that Government will push to have a Kenyan MD by year end.

Heineken in Kenya

Heineken has now been officially launched in Kenya. It will be imported and distributed by Kenya Breweries and may eventually be brewed in Nairobi, if sales are impressive. This is the second premium beer launched by KBL in a month (after White Cap Light, a low carb and alcohol beer, targeted at female executives). Review’s of White Cap Light by people I know have not been good – saying the beer is just water.

However Heineken is a great beer, but I wish they had launched it in bigger bottles. In most of the US, Heineken is sold in 12 ounce (oz.) bottles and cans, but in poor (minority) communities, it is sold in 24. oz. bottles to compete better against cheaper 40-ounce malt liquor brands.

While KBL admits that most Kenyan are migrating towards illicit and cheaper brands these days, they have still continued to focus on the premium brand segment that is only growing at 2%. Still, it’s a great addition to the market and will be sold at 100/=.

Business Briefs

Equity expansion continues
Equity Bank will take over the Harambee Avenue Branch of Industrial Development Bank. IDB will completely divest from commercial banking, and focus on its core business of long-term lending.

Bank at City Hall
Cooperative Bank has opened a branch at city hall annexe with 4 ATM’s. This should ease the congestion and queues that are typical at Co-op ATM’s especially at month end.

Carnivore tragedy bosses freed
Nine managers of United Distillers and Vintners (UDV), Carnivore Restaurant and East African Breweries Ltd, were set free after Attorney General Amos Wako dropped charges of negligence against them. Instead, Nairobi chief magistrate Aggrey Muchelule will hold an inquest into the deaths, which occurred at the Carnivore in December.

KRA hits a few roadblocks
Kenya Revenue Authority (KRA) wants the army to pay import duty saying duty exemptions on imported military goods are discriminatory.

Meanwhile, a Mombasa Court has stopped KRA from collecting revenue on behalf of the Mombasa Municipal Council following a suit filed by the North Coast Residents and Ratepayers Association, which comprises 380 residents of up-market Nyali. A similar case has been filed in Nairobi.

Moi, Biwott offer defence
Following a refusal by the Gor Sunguh circus to admit their evidence on the Ouko murder, retired President Moi and former Minister Nicholas Biwott have issued statements in the Friday (11/3) newspapers in their own defence through their lawyers Mutula Kilonzo and Shapley Barrett advocates respectively. Now if only the lawyers would also post these lengthy statements online.

Uchumi Sells Land
Following their closure of 10 stores last month, Uchumi supermarkets has advertised to sell land and buildings at Nairobi (City market, Langata Rd, Jogoo Rd, Ngong Rd) Eldoret, Bombolulu, and Thika.