Category Archives: NBK

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%

Banking & Financial Briefs

New cards
– I&M Classic. Cardholders can transfer from their other credit cards and pay the balance off at zero interest rate.
– KCB has launched a new MasterCard in partnership with Serena hotels

New children accounts
Standard Chartered has launched safari junior and Imperial has launched marble junior cards as they enter a market dominated populated by Co-op and Barclays banks.

New bank awards
Market Intelligence has announced that a banking industry awards gala will be held to be held on June 7.

New MD
Mr. Frank Ireri is the new managing director at Hosuing Finance Company of Kenya (HFCK).

Bright future for NBK?
National Bank of Kenya still has a 4.3 billion shilling deficit which means it can’t pay dividends despite its recent profitability. However the Government has plans to wipe out the deficit by settling 16.6 billion worth of past government-initiated advances during this 2006–07 financial year as part of the bank restructuring & privatization project.

Cartel?
On Wednesday, petrol prices went up at most Nairobi stations by between 2/= and 3/= per lire at most stations ina tandem. Compare this to the banking industry where two banks can charge customers from zero to 2,000 for the same service.

Kengen shocker?
The Sunday Standard editorial blames stockbrokers for last minute rush of Kengen applications – challenging that they churned investors funds and only placed orders at the last minute. I went to buy shares in the middle of the period and on the last two days to to correct errors – and IMHO there was the same volume of people each day. I however disagree with Standard argument that those who applied earlier should be given allotment preference. Everyone should be treated equally during the IPO period.

How much is enough?
BOC announced preliminary results showing that 73.53% of Carbacid shareholders have accpted their takeover offer.

Politicians stalls bank reform process

According to Jaindi Kisero, the East African editor, the donor-funded restructuring of Kenyan government banks has ground to a halt and the consultants hired to advise the process remain idle.

Government influence and investment was supposed to be reduced/removed at four state-influenced commercial banks, namely, the National Bank of Kenya, the Kenya Commercial Bank, Consolidated Bank of Kenya and the Industrial Development Bank in the exercise which began in 2003.

The sticking point is that directors of these banks were to be drawn from the private sector and not be political appointees as was the case in the past. He also argues that any donor projects that conflict with interests of the Kenyan political class are doomed to fail.

Monster Week

Monster truck finale: Three ministries are fighting for the monster trucks and other assets of the about–to-be-disbanded CKRC.

Flora Kenya: A look at some of the major flower farms in Kenya. From Timbuktu Chronicles

Banking Secret #1: Cheques over 10 million shillings are cleared on the next day, unlike smaller cheques which normally take about a week to clear.

Nigerian Shares:During the Arsenal-Chelsea game shown on Super Sport, there were numerous advertisements about an on-going rights issue of Union Bank of Nigeria. I am not sure what the cost of advertising is on DSTV, but it’s unlikely that Kenyan banks or institutions will place adverts on DSTV especially for a rights issues. Note that the 2004 KCB rights issue had a total budget of 104 million shillings of which only 13 million was set aside for advertising.

Mobile phone questions: 

  • Safaricom House is a new office building next to Njuguna’s on Waiyaki Way. What will happen to the old Safaricom House in Westlands?
  • Now that I have bought a Celtel line for 49/= and received a second free Safaricom line for buying 100/= worth of credit on Luthuli Ave (both of which are dormant) what is my average value (ARPU) as a subscriber to both companies?

Tourism: Workers in the tourism sector are being encouraged to learn Mandarin to cope with the 10,000 (and growing) tourists from China who visit Kenya each year.

Housing: Construction of Eagle Plains Housing Estate, a 350 housing development off Mombasa Rd, is expected to resume after a Nairobi Court dismissed an objection to the construction of the estate filed by Nakumatt supermarkets against the developer and the National Environmental Management Authority (NEMA). Nakumatt had complained that the location of the proposed estate, which is next to its headquarters, went against the spirit/business theme of the area, which already has 13 major industries.

Retrenchment Pipeline: The Minister of Finance has approved a tax waiver of benefits to be paid to retrenched employees of the National Bank of Kenya (NBK), Kenya National Trading Company KNTC and the Civil Service. As part of the package, civil servants will not be allowed to re-join the service for a period of three years.

Jobs:  At the Kenya Times newspaper; managing director, chief accountant, adverting manager. Apply to the secretary to the board, kenyatimes@timesnews.co.ke by January 6.

Educational opportunity:  The Cornell Assistantship for Horticulture in Africa (CAHA) provides a doctoral assistantship in horticulture to a student from Sub-Saharan Africa. More details here and the deadline for applications is March 1, 2006 Thanks, Kevin.

Correction: The Nation corrects a story they had published earlier to the effect that Uchumi had fired PWC as their auditors.

Bank Brief’s

Stanbic offer to buy NBK
According to the East African, Standard Bank of South Africa has offered to buy the 48% of National Bank of Kenya that is owned by the National Social Security Fund. Stanbic is Kenya’s 13th largest bank with assets of $167 million while NBK is the 6th largest, with assets of $423 million.

Bank liquidation
The Central Bank’s Deposit Protection Fund will sell furniture, computers, office equipment, safes and motor vehicles owned by the former Daima Bank on September 16th. They are currently available for viewing at Utalii house, Nairobi, on weekdays.

Free gift
Anyone who performs a western union money transfer transaction at the Nation Centre branch of Diamond Trust bank between September 9th to 24th will receive a free gift.

Name change season
KCB’s savings and loan arm will now be known as S&L – the mortgage company, “where great investments begin.” Two months ago, National Industrial Credit Bank formally changed its name to NIC Bank.

Hollywood notices Kenya
The Hollywood Reporter, writes about a revival in movie-going in Kenya with the opening of four new cinemas.