Category Archives: Nairobi Stock Exchange

Bankshares

Top public bank/financial institution gainers in the first half of the year based on changes in share price from January to June, but leaving out 2005 dividend declared and paid.

So buy bank shares, instead of leaving money in the bank earning 2%!

Housing Finance 98.92%
National Bank of Kenya 64.35%
Diamond Trust 61.24%
Jubilee Insurance 50.60%
Kenya Commercial Bank 46.02%
NIC Bank 39.22%
I.C.D.C Investments 37.24%
Standard Chartered 7.91%
Pan Africa Insurance 7.50%
Barclays Bank 2.66%
C.F.C -10.00%

Previously
At the end of 2005
Pan Africa Insurance 91.43%
Kenya Commercial 77.27%
Housing Finance 59.20%
National Bank of Kenya 52.41%
Jubilee Insurance 46.12%
Barclays 38.50%
CFC 29.03%
ICDCI 25.83%
Standard Chartered 17.62%
Diamond Trust 12.11%
NIC 6.00%

Shares I own

Disclosure: My stable as Snoop would call it

Crown Berger
Diamond Trust
Express
HFCK
Kenya Airways
KCB
Kengen
Sameer
Uchumi

Final Business Brief for 2005

Serena
Serena shareholders are being encouraged to accept the offered new shares in a special mailed prospectus. The deal has been endorsed by the board as well as financial advisors of the company and is being promoted as a unique opportunity that takes advantage of a number of factors including one-off tax credits amounting to 504 million shillings from Tanzania & 96 m from Zanzibar, and the higher revenue and margins that Serena enjoys from operating hotels in Tanzania and Zanzibar. The company also plans to acquire hotel properties in Nakuru and Western Kenya in 2006. I have no doubt, the takeover will be successful and I look forward to owning new shares in Serena after March 2006

Standard
The Standard Group’s year ended in September and revenue increased from 1.76 billion to 1.99 billion. However, increased administrative and distribution costs meant that profit for the year reduced from 78m to 66m and the company will not pay a dividend in 2005.

Kengen
Another politically-correct deal was concluded last week and while this is not the first time that conflict of interest issues are being raised in the energy sector, it does raise questions about the outcome of the upcoming Kengen IPO.

New blood at NSE
2006 looks to be a bright year at the Nairobi Stock Exchange, with several companies expected to list some shares at the NSE for the first time since Mumias did in 2001. Kengen leads the pack with 30% available to the public while other companies who have expressed interest include the Scanad Group, Suntra Investment Bank, Sopa Lodges, Wananchi online, Adopt-a-light, belated Equity Bank ( who were expected to float some shares by October ’05), Sarova Hotels (target is June 2006), and Nakumatt (target 2007)

Cashing Out
Already investors are setting aside cash by liquidating other investments. NSSF which has already sold shares in KPLC also plans to sell other shares in Housing Finance, National Bank of Kenya and Sameer Investments. Top investors have also sold shares in Barclays, Uchumi and CMC.

ISP licences
The Communications Commission of Kenya has extended the deadline by one month for licenced ISP’s to apply for mandatory modified ISP licences. Companies will have to provide details of their current shareholding and tax compliance status – otherwise they will be de-registered in 2006.

Banking
– Co-operative Bank of Kenya has applied to the CCK for a value added service PRS license, which will become effective around January 15.
– Can giving micro-finance loans to men reduce the level of violence against women?
– Post Bank has officially ended its once popular premium bonds savings scheme and tomorrow (31/12) will be the deadline for bondholders to encash their bonds which will not be worthless thereafter.
– World Bank vs. Western Union: The amount of wire transfer remittances to Africa is greater than the amount of official direct aid.

Nairobi City Council
The NCC had quite an interesting week as;
– The Kenya Revenue Authority walked away from a deal it had struck with the NCC to collect land rates on behalf of the council.
– Members of the United Business Association and WeCanDoIt advised their members to renew their single business permits with the council to avoid harassment and arrest. The two groups which are challenging the council, claim that their members are being targeted for harassment.
– This week, NCC staff pulled down fences that surround private parking compounds in the city, insisting that owners put up modern fences that beautify the city.

Jobs
At the Kenya Revenue Authority
– Commissioner of domestic taxes CDT/05: Applicants expected to have MBA with at least 5 years senior management experience at audit or accounts in large organizations as well as good knowledge of revenue acts in Kenya.
Commissioner of customs services CCS/05: Applicants should have a business degree – preferably MBA, 5 years experience in senior management of large organizations and good knowledge or revenue acts in Kenya with emphasis on the East African Community Customs Management Act
Apply through KPMG’s executive selection at esd@kpmg.co.ke by 16 January.

Media jobs
Nation Media Group
– Television: Swahili reporter/anchor, sports editor, cameraman
– Radio: news presenter
– True Love magazine: senior fashion editor, fashion editor, and staff writer.
Apply to the group human resource director, Nation Media Group P O Box 49010-00200 Nairobi by January 4.
Standard
Senior reporter broadcast division. Apply to the group human resource director at hrd@eastandard.net
Kenya Times
– circulation sales executives: Nairobi (2) Eldoret Mombasa Kisumu Machakos Nakuru and Mt. Kenya
– advertising sales executives: Eldoret Mombasa
– advertising manager
– chief accountant
– managing director
apply to kenyatimes@timesnews.co.ke by January 6.

New Year’s resolution
Doubling church attendance can raise income by almost 10% recent research indicates. But is money a good reason to go to church? linked from www.aldaily.com.

Much Work Still to be Done

As we celebrate Jamhuri Day and Wangari Maathai’s Nobel Prize, the investment climate is not good in Kenya, as reports this weekend indicate.

1. Listing on NSE is difficult

Celtel (formerly Kencell) plans a listing on the London Stock Exchange and has no plans for a local listing in Nairobi. The Nairobi Stock Exchange is lagging in Africa – it has 49 listed companies compared to 450 in South Africa and 75 in Zimbabwe. Despite high appetite for Kenyan investors, problem is that listing costs are high and regulations too stringent according to the Sunday nation (12/12).Some of the criteria that many prominent businesses cite for not listing on the NSE include (i) single investor cannot own more than 25% of a corporation (ii) 6% annual transaction costs. Only 21 companies have been added since 1990.

2. Effects of crime in Nairobi

Crime affects business in a very expensive way – According to the East African (13/12) Kenyans spend 32 billion shillings annually ($400m) on private security companies – in addition to the 4.6 billion annual police. Properties like Lonrho house (270K per month) and Village Market (1.3 million p.m.) have seen their security costs double in the last few years.

This is also having a negative impact on housing with many apartments now having monthly service charges of about 10% of rents – that mostly go to security. Meanwhile, high-cost apartments that are very close to slums that are growing have seen their prices dip. Monthly rents in Loresho are down to 25,000 from 50,000 10 years ago (and estate agents take buyers though Kyuna and avoid Waiyaki Way which passes though Kangemi and which may change a buyer’s mind). In Langata rents are down from 20-22k to 16-18k per month for 3 bedroom maisonettes that overlook Kibera

3. South Africa poaches Kenyan tourists

Those $400 and $500 (Nairobi – Johannesburg) airfares you see in the Daily papers are not meant for you! They are targeted at luring tourists visiting Kenya to take a cheap side-trip to South Africa (fares are inclusive of three days, bed & breakfast, game drives and airport transfers)