Category Archives: NIC

Kutwa: Tuesday: Pick out a positive story

Bank Round-up
– Co-op Bank extends its banking hours from the now less-traditional 9 to 3 to 9 a.m. to 4. p.m. daily and up to noon on Saturdays.

– bold Equity Bank announced plans last week to open new branches in Kisumu, but that was before a new outbreak of violence over the weekend and the fatal shooting of an opposition MP this morning.

– The Business Daily reports that West African giant Ecobank, plans to take over a majority stake in limping mortgage bank EABS whose recent growth had lagged most of its peers

– NIC Bank to convert this cashless ATM points into full branches and expand its network.

capital flight: A leading multi-national bank is considering moving an African operations department out of Nairobi, and to another country. The amount of capital flight (money leaving the country) is also at an alarming high.

Other sectors
– Valentine’s day massacre?; What does Naivasha flare up mean for some flower farms who Valentine’s Day (Feb 14) shipment/sales can account for up to ½ their turnover in a year ?
– Nairumor that a blue chip CEO and turnaround specialist will resign next month in search of (foreign) greener pastures
– The Harvard Business School’s Africa Business Conference is on February 15-17, 2008 in Boston MA. Details from YAP
– Some troubling signs and even more today.
– Another regional airline upstart is Executive Turbine, flying 4X weekly to Kisumu for Kshs. 3,540 ($70). Regional airlines should be added to the earlier post on election winners.

Trivia
– Will ‘President Obama’ need Equity Bank? – because 46% of African American household’s don’t have bank accounts – he can tap Equity Bank’s revolutionary model to bring banking to the unbanked.

– wish I was in France: It’s better to be a rogue trader facing charges for misplacing $7 billion. But it’s also a reminder that financial shenanigans are still rarely punished and prosecuted in Kenya. E.g. Francis Thuo. (and maybe Mr. Kerviel would rather have worked for a Kenyan bank instead)

Bank Review ’07: Part III

Middle of the pack

20. (20) Fina Bank: Estimated assets of 7.6 billion ($108 million) and profits of 90 million shillings ($1.3 million), with growth of about 20% from a year ago. Opened upcountry branches in Kenya (Nakuru, Mombasa, and Eldoret) and will start branches in Uganda next year, bridging the Fina to their existing Rwanda operations.

19. (22) Family Bank: Estimated assets of 9 billion and profits of 220 million in 2007. Known as Equity Blue, it has enjoyed similarly rapid growth (though slightly less this year) since converting from a building society to a bank. It has followed Equity’s footsteps, applying for the same exemptions granted to Equity – such early as admission to the clearing house and permission to issue chequebooks. It has also opened branches at a fast rate and its paperless banking model and women-entrepreneur loan models are a hit with rural Kenyans. But, in the year in which they converted to a Bank, they also lost their long serving CEO over board dispute and got sued by a Central Bank official who their Chairman had accused of being corrupt.

18. (18) EABS: Estimated assets of 9 billion and profits of 15 million. Teething pains continue at the former building society which converted to a bank three years ago, and had growth of about 5% in 2007.

17. (17) Housing Finance : Estimated assets of 10.5 billion and profit of 120 million, with loans 15% up from a year ago but assets only 2%. The bank tried to merge with Development Bank of Kenya, and later raise cash in a rights issue, but both plans were scuttled by regulators; later the board signed to sell a 25% stake to Equity Bank. HFCK and S&L (owned by KCB) are still major players in the mortgages sector which is becoming a crowded field with newer entrants Stanbic and Standard Chartered. HF also lost a class action lawsuit filed by customers over illegal bank charges.

16. (19) Bank of India: Estimated assets of 11 billion and profit of 500 million for quiet bank that grew at about 25%. Does a lot of India related business and Kenya government securities.

15. (16) Imperial Bank: Estimated assets of 11.5 billion and profits of 600 million. In 2007, the bank grew about 40% as it launched shariah banking, asset finance, children’s accounts and opened new branches at the coast.

14. (14) Bank of Baroda: Estimated assets of 14.9 billion and profit of 600 million for quiet bank that grew at about 25% and does a lot of Kenya government securities investing. It has been in Kenya for 52 years

13. (15) Prime Bank : Estimated assets of 15 billion and profits of 350 million. The fast growing bank will consolidate with affiliate Prime capital company by year end leading to a much larger bank in 2008.

12. (11) Investment & Mortgages: Estimated assets of 30 billion and profits of 1.3 billion. Fast growing bank also diversified into shariah banking, custodial services and also acquired two new euro bank shareholders.

11. (12) Diamond Trust : Estimated assets of 31 billion and profits of 950 million. In 2007 the bank grew about 45% as it opened several new branches, had a second rights issue in less than a year and also acquired a majority stake in Diamond Trust Tanzania.

10. (8) NIC: Estimated assets of 34 billion and profit of 1.1 billion. The bank grew at about 30% in 2007. It had a rights issue, rewarded shareholders with a bonus, went into custodial and investment banking (acquiring a stockbrokerage firm). But the market leader in asset finance also faced increased competition from other banks in this field and was dropped from NSE share index in favour of ICDCI.

9. (5) Citibank Kenya: Estimated assets of 38 billion and profit of 1.9 billion shillings. Otherwise a flat year for the bank whose parent faced her own troubles in the US banking meltdown. Growth was about 5% as the bank got into the local IPO advisory races.

8. (6) Commercial Bank of Africa: Estimated assets of 40 billion and profit of 1.4 billion. Growth of 9% from a year ago got into unit trusts, home loans, insurance, and funding of women projects. Similar to CFC and would be prime candidate for a merger.

7. (7) National Bank of Kenya: Estimated assets of 45 billion ($645 million) and profit of 1.4 billion shillings ($20 million) for 2007. NBK finally had its most of its non- performing portfolio debt albatross sorted out with a government bailout in the form of bonds maturing over the next 10 years. Now that its cleaned up, it could once again be a target of Stanbic again who two years ago offered to buy out NSSF’s 48% after their CFC merger is done in 2008 (Equity Bank is a also long shot). During the year, NBK partnered with Standard investment bank offer stockbroking services through NBK branches and also tried to have businessman Ketan Somaia jailed over an unpaid debt to the bank

Jobs

– Chase Bank; Head of ICT, senior manager operations, head of trade finance. apply by snail mail to the Head of HR 28987-00200 by 29/2
– Cabin crew at Emirates airlines
– Fina Bank Uganda: The bank is starting operation in Uganda in January 2008, and those interested in working there should send detailed CVs to hr@finabank.com.
– tough job – Head of marketing & corporate communications at Kenya Airways apply online by 15/1

Kutwa Tuesday: December 11

Yesterday was the day the Safaricom IPO was to start, but not a word came except from the courts. The prospectus could be out today, so there could be hope.

Still, the market needs a huge outlet to drain all the excess investment liquidity in the country. So far, everything offered is oversubscribed from company placements IPO’s, to corporate bonds – with the Diaspora, foreign investors, local institutional investors, fund managers, co-operatives, banks and retail investors all chasing the same investments. The latest was the Diamond Trust Bank rights which were oversubscribed by 178%

One controversial issue of Safaricom is the 5 – 10% owned by Mobitelea, which has been extensively discussed in the media and among blogs. However it would be surprising if that shareholding still existed, and surely that embarrassing matter has been sorted out by Vodafone either by swop’s or other payments.

Bank developments

  • Corporate rebranding at KCB at their website (formerly kcb.co.ke) is now kcbbankgroup.com – shedding the Kenyan connotation which would be a burdensome sell in the region with branches in S. Sudan, Tanzania and Uganda.
  • Equity Bank has received more approvals from CBK, NSE and CMA for their recent deals. In addition, Helios (who are buying 25% of the Bank) have been exempted from the banking act provision that a foreign non-bank cannot own shares in the country (until 2016)
  • Imperial Bank has ventured into Shariah banking with a product called Imani while giant Standard Chartered also considering venturing into Islamic banking.
  • The Baraka Fund has taken over the country’s smallest bank – City Finance.

Stockbroking

  • The NSE has announced that they have fully paid all Francis Thuo client claims as at November 30 2007
  • CFC Bank is looking for stock agents in all provinces of the country.
  • NIC Bank’s takeover of Solid Investment stockbrokers has been approved by the Minister of Finance.

Real estate

  • Business Daily looks at real estate investments in the last year and their profitability.
  • Regardless of who wins the election, budget deficits are a sure thing and interest rates should rise in 2008 – affecting mortgages, most of which are not at fixed rates
    New hotels: planned developments include seven coves in chumani kilifim while the Delamere farm will set up ecotourism camp at soysambu ranch

insurance:

  • After insurance companies beat a retreat from insurance sector three years ago, citing fraud and the collapse of medical plans, there’s a mini comeback now with First Assurance going after AAR in a partnership with the Nairobi Hospital Association.
  • The Association of Kenya Insurers (AKI) has announced that from next year all premiums must be paid before any cover is provided

opportunities

Bottle shortage

A sign of changing trends as people seem to have forgotten that they have bottles at home. And now the bottlers want them back and are willing to pay cash for you to scrounge around the houses and surrender their empty bottles.

  • Beer bottles: east African breweries buying them back at 17 shillings ($0.25) per bottle and 335 sh per empty beer crate to uchumi and nakumatt supermarkets. Nakumatt will pay cash while Uchumi will pay in vouchers for shopping at that store!
  • Soda bottles Nairobi Bottlers (a Coca-Cola franchise) is buying coke, fanta, sprite bottles (300 and 500ml) at 10 shillings each, and empty crates at 100 sh.

Awards:

Kenya National Commission on Human Rights 2008 human rights & democracy awards: milele (lifetime achievement), firimbi (whistle blower), umma (public body), utumishi (police), urekebishaji (prisons), utetezi (civil society), mashinani (community based), habari (media), jitolee (business) and special category lochiel@knchr.org or bwire@knchr.org

Africa Investor: Tourism Investor Awards: Tourism Investment Programme of the Year, Sustainable Tourism Investment of the Year, Business Resort of the Year, Best Initiative in Facilitating SME Tourism Investment, Tourism Promotion Agency (TPA) of the Year, Hotel Investment of the Year, Hospitality Management Team of the Year, Tourism Investment Advisor of the Year, Business Airline of the Year, 2010 Legacy Investment of the Year, Business Travel Insurer of the Year. Deadline for the entries is 11 January 2008.

Jobs

from the daily papers last week

  • Chief executive; Constituency Development Fund board
  • Daystar University deputy VC finance, administration & planning. Manpower 14/12
  • CEO at the troubled East African Portland Cement Company
  • Fly 540 airline: looking for captains and first officers for ATR 72, Dash 8, Fokker F27 and BAE 146 aircraft
  • KISS FM: creative writers email gm@kissfm.co.ke
  • K-Rep Bank: branch managers, operations managers, advances managers, advances officers, apply by snail mail – D/L 19/12
  • Kenya Pipeline: helicopter pilot, senior accountant, internal auditor, senior internal auditor, senior IT officer, D/L 21/12, apply by snail mail
  • Financial management analyst at the World Bank – Nairobi

New stockbroker

Finally a new stockbroker is going to be invited to join the lucrative club that is the Nairobi Stock Exchange. The number of shareholders has gone up approximately ten times from pre-Kengen IPO, but the number of stockbrokers, through which investors must trade their shares has been stuck at 18 all that time (currently 17 since Francis Thuo was suspended earlier this year).

It’s only one seat to access this Kshs. 4 billion a year industry, but that can only improve the current situation. Who should win? Ideally a bank or financial institution with an extensive branch network. CFC bank – the only bank that’s also a stockbroker has the widest reach nationwide when compared to several one office stockbrokers in Nairobi

Application details here and only firms that can qualify as a stockbroker or investment bank are eligible. The Application fee is Kshs 50,000 ($700) to the NSE, and 2,500 to the Capital Markets Authority. Applications should also include a company profile and statement of financial support/bank guarantee for the bid amount which is reported to have a reserve price of Kshs 150 million ($2 million). D/L of 13/8 is just over a week away.

Other News & Follow up’s

– KTN reported that the housing Finance deal (buy in by Equity) could be in jeopardy owing to a burden of borrower lawsuits that could be a major liability for the bank since the introduction of in duplum rules to the banking sector. (One plaintiff won a major case against the bank last month)

– I & M: Two European development finance institutions take up a 12% stake in I&M – Kenya’s 11th largest bank

– NIC shareholders will this month be asked to vote on right issue and bonus share – in addition to modifying the company laws to expand the bank beyond Kenya, enter insurance, custodial, and investment banking, and allow unclaimed dividends by to be reinvested by the Bank until a shareholder shows up to claim them

– Welcome to the Kenya, land of milk & honey: The Safaricom IPO honey pot has attracted interest from BNP Paribas, Citicorp, Credit Suisse, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley and other banking, financial and legal giants

– Next week’s East African reports on a proposed merger in the cement industry between Bamburi and East African Portland Cement companies.

– As expected parliament, without a legitimate quorum, passed the media bill

– Weak laws and evasion are robbin Kenya of tax money.

Opportunities

– Borrow up to Kshs 1,000,000 at 0% interest from Halaal Credit, but eligible only to Kenyan Sunni Muslims.

– Diaspora conference; a conference dubbed Incorporating the Preparatory Kenya Diaspora Home-Coming Forum will take place at KICC on 14-16 August, 2007. some issues will be exploring investment opportunities in Kenya, debate the Diaspora bill 2007 , building partnerships between European and African private and public sector stakeholders, SME and Diaspora sectors be mainstreamed into vision 2030, and proposal that an annual Kenya Diaspora Homecoming week be held every August of each year. Details can be got from info@kenyadiaspora.go.ke

– Design a logo and come up with a motto for the Kenya Investment Authority :

some jobs

– AON: retail broking manager, senior business development executive (health). Apply to HR@aon.co.ke by 17/8
– Chief executive officer at the export processing zones authority. Apply through manpower associates by 14/8
– KCB: branch managers, business banking managers. Apply to recruitment@kcb.co.ke by 17/8
– Safaricom: Investigator, senior fraud analyst, senior information security officer, senior information systems auditor, and a dozen technical jobs. Apply to
hr@safarciom.co.ke by 10/8
– UAP: Relationship officer, internal risk surveyor, agricultural underwriter. Apply to recruitment@uapkenya.com.

Bank Roundup (June 07)

all banks share capital raised from 250 million to 1 billion. At the beginning of the year, 25 of 43 banks were below this mark (with 7 banks below 500 million). This is an update/reversal of an older proposal to lower the share capital when some banks were struggling a few years ago. Not many mergers expected though it may prompt some mid size banks to go for a public listing to raise cash (only 3 banks lost money last year)

Central bank has advertised for some currency destruction contracts as the east African reports on talks for the government to invest in the current currency supplier DE La Rue

Diamond Trust to venture into Islamic Banking

East African Development Bank profit went up by 229% to $4.6 million – up from $1.4 million the year before. Assets increased to $262m dollars and their non-performing portfolio reduced by 11%

Equity bank won an international award – the 2007 global vision in microfinance award. Also KTN reported that the that the bank will open three women only branches in Nairobi

Two month old Family Bank is seeking a new managing director

KCB to expand into Uganda as it also wins an international award – the Africa investor for best performing stock in Africa award (shares price up 97% ) > but the company also held one of the longest dreariest AGM’s in history on Friday

National bank finally got recapitalized. NBK could receive 346 million in 2007 and 2008, a bullet payment in 2009 of 4.3 billion, 220m in 2010 and 2011 and another bullet payment of 5.2 billion in 2012. For 2013 – 2015 123m each and in 2016 a lump sum of 5.2b. 2017 to 2020 58m each and a final payment of 6 billion – for a total of Kshs. 22.48 billion ($340 million)

NIC to increase authorized share capital via a rights issue. The board approved it on June 14, but there was no mention at the AGM on May 16. This follows a Fitch Report indicating that mid-size Kenyan banks need to increase their capital

opportunities

East African breweries is accepting applications for a graduate management program. Details online and D/L is 22/6

Family bank: chief executive officer, credit manager. Apply through deloitte – esd@deloitte.co.ke by 29/6

Kenital solar : sales & marketing manager, technical manager, engineer sales executives (5) regional managers (4). Apply to cm@kenital.com by 22/6

Country manager at Steadman Tanzania . Apply to janis@steadman-group.com by 22/6

A dozen IT, research and engineering jobs at Safaricom

Writers at a new Swahili newspaper. Apply to gazetijipya@gmail.com

Project management specialist at USAID.apply to hrnaiorobi@usaid.gov

Rhodes scholarships: 2 for Kenyans to pursue full time post graduate study at the University of Oxford. Apply to rhodeskec@wananchi.com by 15/9

Real estate: for the monied in the Diaspora, those who have worked hard and are looking to return in style, consider investing in Kihingo village a gated community development in Kitusuru where prices start at $500,000.