Category Archives: Nakumatt

Business Briefs

Econet Licence Good: Econet is Back (for now at least) on track – But I won’t believe it till I see the launch, and a kiosk selling Econet airtime.

KRA is no IRS: The Kenya Revenue Authority is unable to pay 2.2 billion in VAT refunds it owes to corporations. They blame the Minister (Treasury) for giving away too many incentives and waivers.

Daima Bank: Depositors and Creditors of Daima Bank are invited to a meeting at 680 Hotel on 4th March at 10 a.m. where they will be given an update on attempts to revive the Bank that is now under statutory management by CBK.

Serena Profits: In a sign of the recovery in the tourism sector, Tourism Promotion Services (the Serena Hotels Group) announced a 420% increase in profits – from 25m in 03 to Kshs. 130 million in 2004.

Media: After reviving True Love and Drum Magazines, the Nation Media Group will now also revive the Weekly Review after taking over the name from Hillary Ng’weno.

Meanwhile, the Standard will launch a Coast magazine pullout in its Thursday paper, starting tomorrow, to compete against the Nation’s Coast Express which is published on Friday’s (as a separate weekly newspaper).

Supermarkets: Uchumi plans to do a share rights issue (similar to KCB in 04) in June 2005 to raise Kshs. 750 million.

Meanwhile, Nakumatt management confirmed plans to open 2 stores every year.

Airlines: An Official of Miami Dade Aviation wrote a letter to the Standard to clarify that (i) their recent visit to Kenya was to assist JKIA upgrade from a category II to Category I status which would enable direct flight to America, and also to promote a trade conference which will take place in the US later this year (ii) denied that they (Miami) had insisted that KLM/KQ alliance be dissolved (iii) confirmed that there were no plans yet for KQ to fly to Miami, at this stage, they have only presented a proposal to the KQ MD

Meanwhile Al-Etihad Airlines will fly from Abu-Dhabi to Nairobi.

Business Briefs

Kenya Breweries has launched a new premium beer, White Cap Light, on the Kenyan market. New drink was announced by Patricia Ithau, the Marketing Director of KBL (former Ms. Kenya who was previously at Unilever, and driving force behind the Kenya National Dress 2004 and new Omo). Light beers account for 40% of the beers sold in the U.S. Also Nairobi Bottlers, in conjunction with Appetiser International, have introduced a new juice, that’s a blend of 6 blends of apple that is aimed at stylish and independent women.

Sun & Sand Beach Resort has been awarded 5 star status by the Ministry of Tourism.

Barclays Bank of Kenya and Commercial Bank of Kenya have each donated one million shillings to the Kenya open golf tournament that begins on March 9th at Karen Country Club

2, not 3 Nakumatt’s in CBD: Nakumatt will close Nakumatt Checkpoint (on Kenyatta Ave, next to I&M Towers) when they open Nakumatt Lifestyle (on Monrovia/Moktar Daddah Street) on Sunday Feb 20th

National Council of NGO’s chaired by Orie Rogo-Manduli will hold its 18th general assembly on April 15 at Ufungamano House. Pay 500/= at the door.

Business Briefs

Nakumatt over-expanding? As Uchumi has sunk ever deeper into debt and losses (financial and customers) the Nakumatt chain has grown by adding new lines such as automotive, housing, cars, furniture into their supermarkets – and making their brand “all under one roof.” But of late Nakumatt has added new stores in Nairobi such that they may fall into the trap of Uchumi where new stores eat into old store sales. There are now two Nakumatt’s on Ngong Road (within two kilometres of each other. And with two Nakumatt’s on Kenyatta Avenue and signs of a third one going up on Moktar Daddah street (between Jevanjee and K street), to be known as “Nakumatt Lifestyle”, there will be three Nakumatt’s in downtown Nairobi within a square kilometre of each other.

Kenya losing the peace dividend in Sudan: The Sunday Standard (Feb 6) identified how in-fighting and incompetence at the Kenyan Ministry of Foreign Affairs will lead to Kenyan companies losing business opportunities in the new Sudan to other countries. Britain and Denmark now have liaison offices in Southern Sudan, and South Africa has launched a massive program to bring their businesspeople to both Khartoum and Rumbek.

EABL cross-listing: East African Breweries, who are the pre-eminent presence on the Nairobi Stock Exchange, have announced plans to also be listed on the Dar es Salaam stock exchange in a few months. Kenya Airways was the first company to do this, late in 2004, and its’ stock price doubled within weeks as Tanzanian investors bought into the stock. Will this happen to EABL? They did a 5:1 stock split late in 2004 that made their high-flying share price (500+ shillings a share) more affordable. It now trades at about 100 shillings/share.