Category Archives: Family Finance

Twitter Week: Top 10 November 26

Twitter is a micro-blogging tool that is really nifty for doing mini-posts, forwards and other remarks that (are on any subject) and are maybe not worthy of a full blog post. Here’s a summary of my week on Twitter in a Dave Letterman top 10 format :

10. Uganda Talks
– r/t @UgInsomniac Uganda Government gives ousted Thai Premier Thaksin Shinawatra, a new UG passport- http://bit.ly/7xfU8t/ (Kenya sold him wildlife)
– R/t @UgInsomniac MapSwitch Uganda boldly going where no banks have gone? http://mapinternational.net/. #ugandalug

9 Visa Place burns
– What’s that fire in upper hill area?
– @rookieke was visa place on fire, poor chicken
– @jwesonga shebeen great place, good staff. And in Kenya style, it will be packed tonight, if it survives neighbour fire

8. G4S (in) Security Jokes
– A g4s truck parked by road side in kile-any missing cash today?
– Poor #G4S Kenya, after the weekend cash loss, they may have to sweep key staff and revert to old name securicor
– @coldtusker @mwirigi #G4S not to blame, customers move $ for evasion, business & commodity payments etc to bypass currency restrictions
– @mwirigi looks like real world inside job-at either G4S, seller, buyer or bank. Off to watch reel-world #heat movie this aft
– Embattled security firm #G4S hires Gina Din Comm. to spruce up image (via Nairobi star)

7 Kenyan Banks
– #stanchart bank loan hawks out on Nairobi streets again. Also KCB and family bank
Kenya MFI Faulu acquires insurance broker http://www.faulukenya.com
– Will check out family bank offer of free Wi-fi for customers’ next week @jwesonga

6 Zain Kenya
– Seems Zain Kenya turned on their 3G network this weekend, super net speeds (Via @kahenya)
– Zain Q3 ‘Kenya is a highly competitive market with very low ARPU’ 2.1M customers (down 14%) revenue of $118m, loss of $28m (much improved)

5. World Cup 2010 business
– @AirFranceUS promoting World Cup fares (from Paris) to South Africa. Book early and save! http://ow.ly/FjUk
– r/t @cnbcafrica 2nite on Business 2010 exclusive license deal between FIFA & Nederberg Wine Estate to produce a 2010 FIFA World Cup wine range

4. Africa Aviation
– Delta Air has Ghana Nigeria Liberia Senegal Egypt but no Kenya plan http://airlineroute.net/200… (Via @airlineroute)
– Ethiopian Air CEO talks aircraft choice A350, B787 B777 operating from high altitude Addis http://tinyurl.com/yffkkpc (via @flightblogger)
– Kenya airways offering diploma in airline passenger services at a cost of $1950.
– R/t @aschonland delta passes half connectivity mark- 51% of aircraft fleet now have wi-fi

3. Safaricom Modem discount
– #Safaricom deal data push discount – modems now redeemed at just 2,000 bonga points, used to be 10,000 before @kafainbi @antoneosoul
– @Kafainbi website and posters say 10,000 but modems are now 2,000 bonga points – try Moi ave. or I&M for stocks

2. Kenyan Corporates on Twitter
– can the real Kenya airways please stand up!!.. @kenyaairways and @kenya_airways on twitter, is one a squatter or both? (Via @jwesonga)
– Following @samtwit and @coldTusker as they sort out which is the genuine #kenyaairways twitter account. They could both be fake or fans
– @samtwit confirmation should come from a twitter link at the #kenyaairways site. A smart aviation buff can fake a corporate twitter ac
– @KenyaAirways is the official #kenyaairways twitter account. (@coldtusker, @rafikikenya – via semi-official source)
– Finally an indigenous Kenyan bank on twitter @familybankkenya

1 Tusker brewed in Ireland
– Tusker now sold in 500ml cans, cost 85/= at uchumi. @archermishale get well, and catch up with @inexes

– The Tusker 500ml can is brewed in Ireland! EABL #Fail #godblessthierryhenry

M-Pesa as a low cost bank account

Safaricom have extended the registration deadline for m-pesa divided payments via cell phone to today – October 15. Over 465,000 of their shareholders own less than 1,000 shares, and will get a dividend payment of less than 100 shillings ($1.31), with most in this category likely to get about shillings, assuming they have not bought any shares since the IPO allocations.

M-Pesa’s latest offering
During the dividend registration process, Safaricom has clarified that shareholders receiving dividends of less than 100 shillings will only be able to buy airtime with this, while those with larger dividends will be able to withdraw the cash, pay bills, send it to other people etc.

All this brings up the question that has been asked several times, most recently by research group – CGAP in the blog post cell phone bank accounts as an incentive to save money. If you compare holding cash in an m-pesa account, you are able to gain comparable benefits to low cost bank accounts offered at several leading local banks – and can use banks for those services that M-pesa or Zap (from Zain) don’t have e.g. withdraw cash via m-pesa, and go to Equity Bank and buy a banker’s cheque for 50/=

Benefits of m-pesa banking
– 24 hour banking: More reach & access than any bank or ATM network
– Mobile banking with operator tends to be cheaper then mobile banking via bank provided services
– Saving in transport costs and banking transaction costs
– Can pay a variety of bills for utilities at a low cost
Challenges of m-pesa banking
– Lack of float at dealers to transact/occasional mpesa system downtime
– No credit history; and the clumsy expensive statement from Safaricom not useful yet
– Calls for discipline to build savings
– Funds are not insured, and are more prone to crime. And dealing with a stolen phone in Kenya is not a pleasant experience.

Anyone tried to use m-pesa as their main bank a/c?

Week on Twitter (September 11)

Another re-cap of a week full of Twitter – @bankelele posts which included issues like – more innovative loans from Equity Bank, why do Kenyan companies make such large PDFs? The fibre cable has reached Mandera in remote Northern Kenya, but piped water is yet to get there, police dogs sniff grass, Zimbabwe ministers text like teenagers, how to get through to safaricom’s notoriously inaccessible customer service, mobile companies know how to keep Kenyan ministers happy, Kenyans laugh at their failings, pre-paid internet gets cheaper, another bank to list at the Nairobi stock exchange while another joins twitter, more awards for women, more jobs at the central bank of Kenya, and the UNEP toys with Kenya

– @TChenya @KumekuchaChris was just at Equity Bank; amazed they have loans for water tanks http://bit.ly/AoYg4
– This #Safaricom portal is going to be the Kenya borg http://portal.safaricom.com…
– Do cops favour their own matatus, leading to traffic jams for other motorists? http://www.coastweek.com/32…
– R/T @baldaufji #Zimbabwe minister text messages leaked http://bit.ly/2KkUIx U c the strait jacket vakuru [old man] is being given 2 wear
– The koinange family starts development of the parking lot next to kencom Nairobi
– Just registered to get my Safaricom dividend by cellphone m-pesa in November @saitonne m-pesa dividend registration ongoing around the country till 30 September, mostly at supermarkets – which one is near you?
– Cold call from a bank offering an unsecured personal loan at 24%!
– @egm_photo @jmugambi its soooo wrong for fibre cable to reach mandera before piped water!
– Gabon09 election resembles kenya08 but little concern in Kenya
– #TPF3 Tanzania is 0-2: EABL endears itself to that beer market
– (Sad to hear) R/t @estoni #samburu insecurity rife, tourist vans attacked, some travel companies are canceling Kenya safaris
– @kainvestor the most blatant on-going copy cat is ‘citi shuttle’ aping ‘citi hoppa’ with same green, same routes #thuo should do something
– (i) #shagslife a police dog from anti-stock theft unit just tracked down some stolen bales of hay to a nearby compound (ii) Hay and fencing was ‘stolen’ from farm of local MP last night. @coldtusker, this police lassie did an impressive job over many KM
– More bank for twitter @Standardbankgrp the official account for #stanbic (found at @kainvestor)
– R/t @saitonne are you stuck trying to call #Safaricom customer care 100 number? Try adding some zero’s and no’s e.g. 1000055
– R/t @kachwanya Yu to launch money transfer service on October 1. (Now where’s telkom, been almost 5 years in the making?)
– Watching morning news – #Safaricom seem to trend #CSR projects to home area of sitting communication minister
– Family bank march to listing at Nairobi stock ex @nsekenya on with plans for share split and rights issue pending approval
– you know you’re Kenyan goes viral (i) #youknowyourekenyan when you understand (and agree with) Francis atwoli (ii) #youknowyourekenyan cause your “najivunia kuwa mkenya” cap is made in china

– NHC rescinds sale of houses to 102 #madaraka estate residents (for non-payment?) while NSSF threatens to repossess some tassia-embakasi plots
– @ kainvestor how do Kenyan corporations create such huge huge PDF? E.g. quarterlies from NSE site (i) Mabati Rolling Mills half year results (large PDF) http://tinyurl.com/ldyk22 (ii) @kainvestor #KenGenPIBO information memorandum dead D link on site at http://www.kengen.co.ke/PIBO/
– Nominate an African woman achiever for a Graca Machel award http://www.civicus.org/media/Graca_Machel_Initiative_Call.pdf D/L 30/9
– R/T @gishungwa @shiroh: Central bank of Kenya is hiring http://tinyurl.com/lu6bbo
– @inexes @shiroh while standard chartered will take divas to South Africa for shopping for $1,000, family bank has week-long trip in October for business customers for $2,000
– Eh @intelligensia, plans underway to (dredge &) raise the water level of masinga dam by 1.5 metres
– New Zain Kenya unlimited pre-paid internet bundles costing $3 per day, or $30 per month
– NTV’s Rita Tinina on GoK begging UNEP for Mau Cash http://bit.ly/2m8BUu (look for a toy truck near end of vid)

Kutwa Tuesday: Corporate Mysteries

and other Bank Twits

Twitter is a micro-blogging tool that is really nifty for doing mini-posts, forwards and other remarks that (are on any subject) and are maybe not worthy of a full blog post. Here’s a summary of my week on Twitter where there was some interesting discussions, but so far yet to unravel mysteries at Kenya airways, Safaricom and Athi river mining? and some replies

June 15: nairobbery Reading about a Nairobi scam where people actually throw themselves on the windscreens of slow moving cars and later ask for compensation
Kenya central bank study shows popularity of MPesa; users rate it cheap, fast, reliable & accessible http://tinyurl.com/nozxe3

June 16: Media mystery: what happened to the Bamburi vs. Athi story? there were many reporters there but was story buried? http://tinyurl.com/n2k5o8 replies @nakeel It’s called the power of advertising and who pays your bills..

June 17: Economist says Africa’s next country South Sudan “will fail before it has even been born” http://tinyurl.com/kwlw9w
DT Dobie advertising that a Mercedes E200 kompressor is 1796cc and therefore compliant with new Kenya Government rules for Ministers cars
Anti-corruption initiatives falter around Africa http://www.nytimes.com/
Racial Discrimination at World Bank?http://bit.ly/fNXUy
CNBC TV show President Obama killed a fly during an interview. Take it away FOX
Is the Kenya rugby safari sevens tourney over-priced at 1,500 ($19) per season ticket? http://tinyurl.com/m9yhmb
Two new independent (non stockbroker) directors at Nairobi Stock Exchange – NSE Board http://tinyurl.com/n8qqvx

June18 KPLC is going to increase the birth rate in kenya if they keep failing to supply electricity.

June 19: Kenya and Uganda Catholic churches in a race to hell with simultaneous abuse scandals; media coverage in UG is NSFW http://www.redpepper.ug
Michela Wrong to visit the World Bank http://bit.ly/LpJHy

June 20 Discovering the mysterys of white cap, EABLs no.2 that survives recessions without any advertising
replies @coldtusker I didn’t say it ‘failed’ but IMHO its core consumer base isn’t GenX but my mzee’s generation. What happened to WC lite? White Cap’s demographics are skewed to stable, older, wealthier, ‘old dogs’ market. It has failed among the ‘younger’ drinkers. @Fintradecapital thats really true. Its drinkers r consistent.
I use nivea creams, but all their posters and adverts scream i am soooò not their target customer!
replies @uhusiano is cos they are all jungus? @coldtusker Are you thinking of doing a chaz bono? re: nivea – not their target market… LOL… @devonwhittle I’m also a Nivea customer, but their “skin whitening” products and ads worry me – @karuoro I use Nivea shower gel but prefer Vaseline lotion..find nivea lotions too..sticky (don’t know if that makes sense) @Ethnicsupplies I’ve never liked the smell @Shiko_Msa we the target customers that is. feel welcome. Even though they dont welcome we do.
Stomping through kilelewshwa – many apartment complexes have ‘to let’ signs

june 21 Safaricom selling cheap internet ready phones including nokia 1680 for $38 replies @alykhansatchu I was reading that @ thinking 13m Subs converts to 2m x $1.00 a day internet
@coldtusker also former Kenya Airways director is CEO air uganda. Seems KQ is now finishing school for sub-saharan airline bosses. replies @coldtusker Hugh Fraser (ex-KQ now CEO of Air Uganda) was in the very important Commercial Director post @ coldtusker Neil Canty (former CFO-KQ) went to Gulf Air though he has left them for another gig. Africa again?

R/T @airlineroute KLM to operate MD11s on Nairobi-amsterdam for Kenya Airways from july to september! What will the 777s be doing?

Unexpected dividend cheque from stanbic uganda ~$15 in the mail today #migingo
replies @PinkM How do you cash your Stanbic UG cheques?I haven’t cashed for 2 years now. Thanks.Will try that. I wish it was possible to bank at CFC Stanbic even for CFC a/c holders

Kenya retain rugby revens title, but Is that DJ CK on pitch with team at #safarisevens? He’s kenya’s top gate crasher replies @kenyanpundit hehehe, DJ CK was EVERYWHERE at the WEF in Capetown @kachwanya you just made me remember almost similar incident sometime back during Orange launch..yeah he somehow did that

June 22 Kenya’ anti-aid author envious of @dambisamoyo http://bit.ly/mBdFg
replies @kainvestor Many African anti-aid champions see sinister agendas in the success of @dambisamoyo. She wasn’t the 1st to write against aid >>>
Safaricom shares pick up after managers visit Europe & US fund investment firms http://tinyurl.com/lewfyn #safaricom #investorrelations
Family Bank 25th anniversary
President @mwaikibaki encourages banks to use mobile phones to reach beyond the 22% ‘banked’ kenyans
Have more twitter followers than feedburner subsribers; what does that mean?
people who vandalised the Kenya Railways Kibera railway, may also have got paid to fix it after http://tinyurl.com/c9ykra

June 23 Any well wishers to donate a PC or laptop to Mamamikes who were recently robbed? http://www.mamamikes.com/bl…
59% of small business owners rely on credit cards for working capital! scary http://preview.tinyurl.com/

AGM Split

Family Bank and KCB 2009 AGM

Family Bank is 25 years old this year and is about the 21st largest bank in Kenya. It is in some circles known as Equity Blue because of some similarities with retail giant Equity Bank (it operated as Family Finance Building Society till May 2007)

They held their AGM today in Nairobi; it was a straight-forward meeting, very informal. Chairman is Mr. Titus Muya who’s the founder and was also the CEO till about two easy ago when he relinquished that post reluctantly.

Q&A
Joseph Kaguthi, former PC, Anti-drug tsar is a shareholder in the company and also asked some good questions (he’ll be referred to as JK)

Q. When will the bank list its shares? Many shareholders bought shares in the bank in anticipation of it listing soon (JK noted they said they’d do it within three years and they’d be a market for their shares and asked the board to clarify the over the counter (OTC) market as more people want to buy shares in the bank
A. Management replied that they were ready to list last year/early this year, but that the timing was not right I.e. Nairobi stock exchange was in a down mode, see Co-Op Bank shares after IPO

On Presentation of the annual report
– JK noted they have improved the presentation of the report by including details, missions, vision, values, but he asked them to now include a list of top 10 shareholders as this was a governance issue
Q. another asked why if retained earnings were high, the bank was giving a low dividend?
A. Need retained earnings to grow. Also company can’t pay share capital or premium back to shareholders

Q. loans as security – One shareholder who’s a carpenter narrated a tale of how he fell sick for many months and ran out of funds; he wanted to take a loan using his share as collateral
A. company act doe not allow one to sue company’s shares to borrow from same company

Q. why are non-performing loans high?
A CEO O said their bad loans are 6% of loan book compared to banking sector average of 11%. Also they are mining those and collected 100 million from non performing loans last year

Investor outlook
– Only customers can buy shares in the bank
– May have to raise capital in a few years owing to fast growth
– Company registered opened on May 1, and dividend (Kshs 1.50) will be paid on may 30 2009

KCB AGM: KICC is a very popular site for annual general meetings since Philip Kisia (now appointed the new town clerk in Nairobi) rehabilitated what was a very run-down Nairobi landmark. But with almost 170,000 shareholders it may have been the wrong place to hold their annual meeting. The lines snaked all over the courtyard and registration took a couple of hours for some people I hear

Comrade Sylkwan (thank you) was at the meet and gave a brief re-cap of the Q&A sessions

Q: Why there was no proxy for on the financial statements which were issued at the AGM
A: Shareholders had already been sent to the F/S and the previous years the proxy form was used by s/holders to collect multiple gifts

Q: Why foreign institutional investors own a lot of shares in KCB and what benefits it brought to the Bank
A. KCB shares are listed at the NSE and everyone is free to buy them

Q. Age of directors was not indicated on the F/S. Since there were directors seeking re-election, wanted to know if any was above 70years
A: None of their directors was above that age and if so they would have issued a special resolution

Q: why KCB shareholders could not withdraw cash at the Uganda branch
A: the CE said that it was possible to withdraw money unless there was a technical hitch on that day

Q: Triton issue?
A. Ignored this question (continuing a no comment on Triton or any KCB customer policy)

stalled building construction on Waiyaki Way, rumored to be a Triton property

Q: why the bank does not provide fare to the Shareholders who travel from far
A: It was not possible to pay shareholders fare and share dividends

Q: why the CSR budget was so high even when KCB was only issuing a Kshs. 1.00 per share
A: KCB was spending 2.2b in dividends and Kshs. 54m was a drop in the ocean. KCB also needed to establish a good relationship with the community where the business is established.