Category Archives: Econet

Business Briefs

NIC Bank Warning
NIC Bank which does a lot of vehicle and asset financing, has issued a warning that it is not associated with NIC Microfinance (K) Ltd a company that also purports to offer vehicle finance

Now Uchumi franchises
In a novel restructuring move, that may further dilute and confuse a brand which seems to have no strategic direction, Uchumi supermarkets invites individuals to set up and run their own Uchumi franchises. You must: have working capital of Kshs. 5m, a bank guarantee of Kshs. 5m, be prepared to manager your site on a day-to day bases, have proof that you own/lease property, and turn over 1% of net sales to Uchumi.

For further information, contact the Company Secretary, Uchumi P. O. Box 73167-00200 Nairobi, Tel: 550200 or e-mail franchise@uchumi.com

Econet Decision
The fate of Kenya’s third licensed mobile operator, Econet, may be known on March 1, when Justice Mohammed Ibrahim delivers his verdict. Econet appealed when Information Minister Tuju had cancelled their license on the grounds that the company awarded the license, was not the same one that had applied.

Why Not 5 mobile companies?

Safaricom published their 6 month annual reports (their year end in March 2005) and reveled that they earned a profit of Kshs. 2.6 billion between April and September 2004, which was up from the Kshs. 1.5 billion they earned from the same period last year.

There needs to be more competition in this lucrative sector, where Kencell and Safaricom earn super-profits from their high mobile (tariffs) charges that consumers pay. My question is why stop at 2 (3 if you believe in Econet) mobile operators?

I recommend that anyone who PAYS the $25 million should be licensed to operate a cellular/mobile phone company in Kenya. That way the government earns more revenue and mobile communications become more affordable as companies will lower prices and actually compete to attract more consumers. I believe Uganda has 3 and Tanzania 4 mobile companies. (And what happens if Kencell and Safaricom decide to merge one day? – we have seen telecom mergers of such magnitude in Europe and America)

Tuju: Bull in a Kenyan antique shop

I was going to write about this yesterday, but the Standard commentator Nick Wachira has beaten me to it. Minister Tuju is out of control and is going to scare away investors. However, it seems he may not be in control of his actions, and is himself following orders that create more confusion

Read on the murky circumstances behind (i) cancellation of the tender for the second national fixed line operation (ii) the jobs scandal at Kenya Wildlife Society (KWS) that resulted in him in firing a member of the board and, just over a week ago (iii) the scrapping of the Econet Wireless Kenya’s licence that gave the firm rights to be a third mobile phone operator.