Category Archives: Kenya coffee

Corporate briefs

air

Kenya Airways has added a once a week 777 direct flight from Mombasa to London. There are several charter airlines that operate flights on this route – serving the tourism boom at the Coast.

East African has also added flights to Malindi

Agriculture

Sasini slump: Sasini reported a loss of 387 million shillings for the year, down from a profit of 771m the year before. Operations generated only 12 million shillings which was a steep drop from 209m in 2004. The company blamed the poor performance on over supply of tea in world markets. Sasini also entered the horticulture business during the year and will maintain a focus on the premium tea sector where demand is high.

Banking

NIC Bank has extended its banking hours and will now be open from 9 a.m. to 4 p.m. on Saturdays.

Communications
New communication Minister Mutahi Kagwe is an advocate of using the government’s shareholding in Safaricom to restructure Telkom Kenya. In an October interview in the Financial Post, he says Telkom is inefficiently run and he believes it can achieve efficiency and connectivity levels similar to India and Mauritius. Hopefully he can restore confidence to the sector after two years of Tuju’s confusion. Surprisingly dropped in the cabinet re-shuffle was Permanent Secretary Rege who has been an active player in the satellite and mobile communications sectors.

Energy
The National Oil Corporation pulled out of the running to to buy BP Oil’s Kenya assets.

Housing

Kenya Commercial Bank staff pension fund will construct 252 houses along old airport road in Embakasi.

Publishing

Cosmopolitan magazine will discontinue its Kenyan issue and resume distributing the South African one locally.

Rail

The concessioning of Kenya Railways may be delayed after pensioners of the corporation filed a suit to stop the deal until their interests are secured.

R&R

WC to Malindi: Newly crowned F1 champion Fernando Alonso and his Renault team will return visit to Kenya in December. This has become an annual event that involves team building and physical training at the Malindi estate of the team principal Flavio Briatore.

TV debate: The Media Owners Association has convened a debate on the proposed draft constitution which will be broadcast on most of the major television and radio stations on Tuesday, October 18, at 7:30 PM. Members of the Cabinet from both fruit camps will answer questions sent ahead by members of the public via e-mail. In the countdown to the 2002 general elections attempts were made to have a televised debate featuring the presidential candidates, but which didn’t take place since the big two candidates, Uhuru Kenyatta and Mwai Kibaki, never committed.

Good week for investors: Last week saw the completion of a successful rights issue by Uchumi, confirmation of the Kengen IPO for 2006, and partial privatization of the management of the Kenya & Uganda railways by a South African firm after an extensive bidding process. Meanwhile, right issues have emerged as the preferred investment vehicle for privatizing state companies as they enable firms to raise new capital, gain new shareholding & management and reduce government ownership – since the government opts not to take up its allocated rights – this happened at KCB, Uchumi, and next at KPLC.

Paint obsession: The Nairobi City Council wants the City to look good but only in terms of appearance. They have issued a notice to building owners who don’t paint their dilapidated buildings – which the council considers to be a nuisance – or they will be fined 1,500 shillings per day and charged in court under the publish health act. There are so many old buildings crumbling on the inside and with cracked sidewalks on the outside, that paint is the least of their problems. The Council has also taken to painting road markings, while not really bothering with potholes or pavements.

Debt Relief: The Kenya Planters Coffee Union (KPCU) has again extended its debt moratorium window, this time by 3 months to December 31. This is a waiver on all interest above 18% on coffee farmers debts accrued between 1992 and 2001. Enquiries can be made to the firms’ lawyers.

Business Opportunities

Bonus shares
Diamond Trust Bank will issue one bonus share for each four held by a shareholder in the Bank’s record as at May 24 2005. The new bonus share certificates will be sent out from July 11, the same date on which they will start trading on the Nairobi Stock Exchange.

Education
The Higher Educational Loans Board now offers loans for full time (not part time, parallel or self-sponsored) students pursuing masters and doctorates degrees. They also have several scholarships available that range from 200,000 to 450,000, which can be applied for at helb@helb.co.ke

Property
The United Nations High Commissioner for Refugees (UNHCR) is seeking new premises, after which they will move from their unsightly building next to Consolata Church. The new building should be located in the Westlands/Gigiri area, be between 18 – 32,000 sq. ft, have parking for 80 cars, be a secure facility with good telephone and satellite communications set-up as well as other appealing features, but should be far away from bus stops and other public/insecure areas. Proposals should be hand-delivered to the Chairman, Office Premises Committee UNHCR by May 25

Land
USIU (United States International University) is selling a 40-acre plot at Garden Estate, off Thika Road. Bids should be received by the Land Sale Committee, USIU, P. O. Box 14634-00800 Nairobi by May 26

Renovation
The Nairobi City Council has finally invited tenders for the reconstruction of City Hall, which was almost burnt down by arsonists more than a year ago. Of course, nothing comes for free at the NCC, and bidding documents can be collected at the City Engineers Department after payment of a non-refundable 5,000-shilling fee (and this is only for the pre-qualification stage, not the actual repair work) and returned to the Town Clerk, NCC P. O. Box 30075 Nairobi by June 13

Distribution
Unipatch Rubber, makers of Omni brands, and India’s largest exporter of tyres and tubes is seeking distributors for East Africa. Apply to export@unipatchrubber.com or corporate@unipatchrubber.com

Coffee
The Coffee Act of Kenya states that anyone wishing to engage in any coffee business must be licensed by the Coffee Board of Kenya. You can apply for 2005 – 2006 licences as dealers, marketers, millers, roasters, auctioneers, warehouse, packers or management agents by paying a non-refundable 1,000 shilling fee and return the forms by May 30. Last year, Tetu coffee was unable to break down this cartel of cliquish middlemen.