Category Archives: kenya communications

Slow Week

VoIP for all
Effective October 11th, all existing ISP licences will be amended by the Communications Commission of Kenya allowing providers to offer VoIP services.

Mystery IPO
While Kengen continues to stream roll its way to the NSE, much less is known about the Equity Bank IPO.

Safari conned
Many more people are now signing up for Safaricom’s post-paid service which offers cheaper call rates of about 10 shillings per minute all day. But many of these new subscribers are not aware that they may be entitled to a new phone under the package offer – presumably some dealers are pocketing, and then re-selling these phones.

Enable business mobile
The Nation media group (through Safaricom) now offers access to its business directory. Send an SMS “GET bankelele” to 2102 and you’ll get the telephone number of a business at a cost of 10/= per request.

Beyond the Eclipse
Russia is planning to launch a rocket from an Italian satellite platform located at San Marco, on the Kenyan coastline.

Corporate Briefs

Telecommunications: From Nation 7/22/2005: Safaricom is seeking an international gateway licence from the Communication Commission of Kenya, “which, if granted, will see a significant reduction in international calling charges”, says CEO Michael Joseph. And he hopes the CCK will speed up the processing of the licence for the benefit of the subscribers. Responding to a query, Joseph says his company’s tariffs “are not exploitative and have actually been designed to be as competitive as possible”.

Shareholder services: The Kenya Airways 2005 AGM will be held on August 12 at Bomas. But the company’s share registrars, Barclays Advisory Services, are proving to be somewhat inefficient which is understandable given that they are servicing over 86,000 KQ shareholders. It takes forever to immobilize the airline’s shares, and it’s proving to almost impossible to change an address – I think I have given them my Nairobi address three times, and my mail, including the invitation for this years AGM, and possible dividend, are still being sent upcountry.

Radio: In the radio sector, KISS FM is hiring presenters, a news anchor, feature writer and sports writer. Applications to be e-mailed by August 5 along with an MP3 or tape recording.

Also, Metro FM (101.9 Nairobi) will become a reggae station from August 1. It currently does R&B and soft pop.

Lower mobile tariffs

Even as the industry regulator (CCK) urges mobile operators to lower their tariffs the need for cheaper call costs must be apparent to the companies themselves – who have had to lower costs of many items except phone calls. Safaricom which launched their online office at 19,000 shillings, now sell it for 2,500, while the cost of new phone lines has dropped from 2,500 to 200 shillings now. Both Safaricom and Celtel now sell minimum airtime at 50 shillings, down from 250 and 300 respectively.

Multi-media messaging coming to Kenya

Safaricom will launch MMS or multi-media messaging in June 2005 – which will enable users to send messages that include images, audio and video clips from one phone to another or to e-mail.

Likely impact?

  • The service must be priced affordably to be of meaningful use.
  • The price of mobile phones, which have halved over the last year, will now shoot up. E.g. a Nokia 7250 now costs 15,000, down from 27,000 shillings.
  • Hopefully Safaricom have addressed the problem of undelivered messages. I.e. when an SMS fails to go through (especially international), you still get charged. Messages that fail to go through, should not incur charges.
  • The government will ban the use of camera phones.

Business Week

CCK Back at work
Things are moving again at the Communications Commission of Kenya – they are reviewing applications for two ISP’s, 4 local courier services, 2 premium rate service providers and a call centre service provider known as “All About Marketing”

But they have now flipped the script on Econet Wireless and now strongly oppose the third mobile operator who had sued Information minister Raphael Tuju and the CCK. The lawsuit has also been expanded to include other parties, and is likely to delay Econet or any other provider from offering a third cell phone service in Kenya.

Job Watch
Kenya Commercial Bank has advertised for a new post of Deputy Chief Executive Officer. Applicants must have a university degree, a financial base and 10 years relevant experience. They must also be currently employed as general managers at other organizations. (it’s interesting to note how boards can manipulate the inclusion or exclusion of certain candidates through highly subjective selection criteria). Apply to Hawkins & Associates at Hawkins.associates@khigroup.com quoting ref no. 111/BO/FN

Other companies hiring this week are Huawei Technologies, Karen Hospital Nation Media Group, Rusinga School and several NGO’s.

Media Conference in Nairobi
The International Press Institute (IPI) World Congress and 54th General Assembly will take place in Nairobi from May 21st to 24th at KICC. great web site that gives vital info for participants and visitors

Coffee sector woes
In the Kenya gazette last week, Co-operative Minister Njeru Ndwiga revoked all exemptions to the cooperative societies act currently enjoyed by the Kenya Planters Cooperative Union. Missing coffee from warehouse

KPCU is currently facing other troubles for failing to deliver coffee it sold to coffee exporters at the weekly Nairobi Coffee Exchange auctions.

Getting wireless in Kenya
The Grand Regency Hotel (a leading Nairobi hotel) will roll out wireless internet connectivity (802.11b) throughout the hotel’s rooms and facilities.

Banking in Naivasha
CFC Bank has opened a branch in Naivasha, which is about 90 kilometres from Nairobi. They also have a unique ATM located at a flower farm in Naivasha and farm workers are issued with special cards which they use to draw money from the ATM – reducing their need to go to town for banking purposes.

Upcoming Events

Nation Media Group AGM
Will be held on May 26th at the Nation Printing Plant on Mombasa Road (Nairobi)

Among the agenda items will be
(i) approval of an interim dividend of 20% (1 Kshs. Per share) bring the total dividend for the year to 100% (5 shillings per share)
(ii) increase the share capital of the bank from 300 million to 600 million shillings by creating 60 million new shares (of Kshs. 5 shillings each) to rank pari pasu with existing shareholders
(iii) approval of payment of bonus shares: registered shareholders as at May 13 will received 1 bonus share for each 3 they own. (however these new shares will not qualify for the interim dividend – see (i) above)
(iv) increase the number of directors.

Equity Bank AGM
Will be held on Friday May 27th at Fourways Towers on Muindi Mbingu Street. Agenda has not been published, but their IPO is not likely to take place till next year.