Category Archives: Stanchart

Standard Raid: the Good, the Bad, and the Ugly

The ugly: Both the Sunday Nation and Sunday Standard reported that a second raid was planned for Friday night, but was aborted by the heavy rains and traffic jams that shut the city till late at night.
The Bad: The mzungu used the N word as he marshalled his troops around the Standard offices during the raid. Sounds like a bad parody of a mercenary or is it the real thing?
The Good: The sale of Kengen shares to the public was accelerated and made as democratic as possible – with minimum lots of 500 (at an investment cost of 5,950 shillings) and a guarantee that small investors will be assured of receiving their shares.

Just as Anglo Leasing attention was diverted immediately by the release of the Goldenberg report, in a smart move, the Standard raid will be followed by the Kengen IPO, the largest in Kenya’s history. This is not the first time this has happened as additional KCB shares were sold to the public in 1990’s to as a way of deflecting political heat from the Government. Look for more advertisements from the office of public communications trumpeting that “this is the government that gave ordinary Kenyans a chance to buy shares in Kengen & Telkom”.

Standard Chartered in 2005
Loan portfolio increased by 3b to 59.7 billion willing but fee & commission income dropped from 2.04 to 1.98 billion shillings. Of the top 3 banks (Standard Chartered, KCB and Barclays) only KCB recorded increased commission & fee income in 2005, which can likely be attributed to its new partnership with Western Union.

Net interest income increased from 2b to 3.3 billion while interest in government securities in which the Bank is heavily invested (24b shillings, equivalent to 70% of loan book) increased slightly from 1.84b to 1.99b.

Still, after tax profit increased from 1.83 to 2.44 b and the total dividend for the year will be 7.5 shillings per shares (out of EPS of 8.69), which is up from 6.5 in 2004. The final dividend of 3.10 per share will be paid after June 2 to shareholders (books close March 31) and the company’s AGM will be held at the Intercontinental Hotel on May 31. Long serving Chairman, Mr. H Awori will be retiring after the AGM. Preference  shareholders will be paid a 6% dividend as well on April 3.

Uchumi
Uchumi halved its six-month loss from a year ago but is still struggling. Half year sales of 1.8b were exceeded by purchase costs of 1.4b and operating costs of 681 million shillings. The 6-month loss in December was 362 million, an improvement from 632m in December 2004.

Shareholder services
CFC Financial Services has announced that they will remain open on Saturday’s until the Kengen IPO period ends. The bank has also opened offices in Eldoret and Kisumu to serve shareholders in Rift Valley and Western Kenya.

There is a shortage of stockbrokers outside Nairobi and Mombasa and this could start a trend as the demand for such services has increased since CDS trading began and now with the Kengen IPO. It would be nice to see some partnerships between stockbrokers and banks that have huge branch networks. E.g. Dyer & Blair setting up part-time desks in branches of National Bank or Postbank on some days of the month to serve shareholders in rural areas.

Jobs
The African Trade Insurance Agency (ATI/ACA) is hiring commercial & political risk underwriters. More details at www.africa_ECA.com and apply at Recruitment@Africa_ECA.com by March 31.

Housing Finance Company of Kenya is hiring
– business development manager (Ref HF/401)
– information system auditor (HF/504)
– relationship officer (HF/610)
– legal assistant (HF/809)
Apply by March 17 to human.resources@housing.co.ke

East African Breweries is hiring
– sales information & administration manager
– trade marketing manager
Applicants must have university degree in business or sales and 5 years successful experience in trade marketing, sales or marketing at an FMGC. Apply by 15 March to hrrecruitment@eabl.com

The Louis Berger Group is seeking infrastructure consultants to work in the Sudan. Current positions open are;
– chief of party
– senior engineer
– manager finance & administration
– manager acquisition/procurement
– other engineering professionals
Applicants must have bachelor’s degree and 5 years relevant experience. More details at www.louisberger.com and applications can be sent to staffing@louisberger.com.

Events
The Vagina Day monologues will be held at the Carnivore on Tuesday March 7 from 7 p.m., entry is 500/=. I saw it once, two years ago with a lot of beer, and I am told if you’ve seen it once, you’ve seen it all, since I’m told that local producers are not allowed to adapt/add new material to the event and must stay true to Eve Ensler’s book.

Good and simple banking technology

good use
Pesa Point’s new ATM’s continue to multiply as they are quickly installed in unexpected places. An ATM is such a useful banking facility that it is shocking how many people still patronize banks that don’t have them. One problem with ATM’s thought is their high initial cost, which can range from 2 to 4 million shillings and their need for secure wall/building locations. But Pesa Point seem to have worked out that problem by coming up with light weight, stand-alone, low cost machines which can be easily be set up. Here are a few more places that Pesa Point should set up machines to cope with our economy in which hard cash is still the currency of choice:

(1) inside bars & clubs e.g. Choices or K2 so you don’t have to drive off (drunk) at 2.a.m to withdraw more cash
(2) all court houses (to facilitate speedy bail payments)
(3) all police stations (to facilitate midnight bail payments)
(4) Ngong race course, casino’s and other gambling spots
(5) at ‘safe’ sports event venues e.g. Safari Sevens grounds (but not soccer stadiums)

simple technology
Standard Chartered Bank is renowned for its investment in technology to improve customer service – e.g. they were early pioneers of ATM’s and are still the only bank at whose ATM’s you can pay your electricity bill. But there’s one simple machine they need to re-adopt – cash counting machines.

I spent half hour while an adequately staffed group of hard-working tellers took an inordinately long time to count out wads of cash, unwrapping and counting out with their fingers, dozens of thousand-shilling notes at a time – one lady even counted about a million shillings, by my estimate.

It’s the of the month for most companies (who close for a two week x-mas break) and many customers were withdrawing huge amounts of cash (that probably exceed ATM daily limits). A Cash counter is old fashioned and costs about 100,000 shillings but the savings they generate are so much more to the other customers who are waiting for their turn. When used by bank tellers, they are able to serve customers at a much faster pace. Maybe there are high incidents of fraud that some banks have ordered their tellers to thumb and count each note by hand, but the use of cash counters would have saved so much time wasted at the Bank this morning.

Marathon watch

I spent part of Sunday watching the half-marathon runners pass through the neighbourhood. Like last year, I stood among motorists who felt that they had been inconvenienced by the marathon and who had tried to drive somewhere – church, shopping, office – on Sunday morning only to find the roads closed by the Police. Many of them turned round and went back home, while others switched off and got out of their cards to watch, and alternately scowled, complained that runners were walking not running (this was at about the 15 km mark of the 21km route), looked at their watches, bought & read newspapers, argued with the Police crew at the corner, or complained that they would boycott Standard Chartered Bank, who sponsored the event.

The fact that notices were placed by Standard Chartered, Police, and other companies like Kenya Airways (advising passengers to check in early) meant that not as many people were disrupted by the events, as was the case last year. I stood there and clapped for everyone who passed, then only clapped for those who ran (not walked by) as a a mixture of people old, young, in & out of shape, a team from Korea, of various professions (I saw a banker, lawyer and restaurant owner I knew), some with inappropriate shoes like sandals, or tracksuits (in case it rained like last year – which it didn’t) them . Didn’t rain like last year, but the runners were a smaller field, with lots of tourists it seemed.

new contract
On the company’s fifth anniversary, Safaricom CEO Michael Joseph had his contract extended for another (and final) two-year contract by the firm.

IPO delay?
The Institute of Surveyors of Kenya (ISK) has asked that the asset valuations of the Kenya Railways and Kengen be re-done since they were previously carried out by companies who were not registered valuers. ISK also asked the Capital Markets Authority to delay the Kengen IPO until this is done.

Equipment contracts
– Kenya Data Networks has signed a contract with Siemens to supply fibre optic equipment for KDN’s 1140 km long network.
– Celtel is expected to sign a $53m (4 billion) shilling network upgrade contract with Ericsson.

America Calling

MBA to Kenya: Wharton, the University of Pennsylvania business school, will hold a Nairobi reception on its MBA programs on November 2, at the Grand Regency Hotel from 7:00 – 9:00 pm. Register here.

DV 2007: The 2007 United States diversity visa (DV) lottery registration began on October 5th. Persons seeking to enter the lottery program must register online through the designated website by December 4, 2005. Kenyans are still eligible.

More Debates: Medeva TV will resume, Agenda Kenya, their popular debate show, with debates shown on KBC on each of the last four days leading up to the November 21 referendum. If you’d like to be part of the audience in the show, call 557569/70/71 or visit their offices at The GoDown for details.

Also, Strathmore University will hold another debate on the Constitution this coming Saturday.

More Standard Jobs: The Standard is looking to hire business executives for both its print and electronic departments. The job entails sourcing clients, making presentations, meeting targets, and coming up with strategies that will ensure good customer care. Applicants should have business degrees, be less than 30 years old, and have 1- 3 years sales experience. They should apply by October 25th to the Human Resource Manager at P. O. Box 30080 Nairobi (perhaps e-mail would be faster).

Friday, News, Jobs, Part II

Mad house: The referendum period swung into full force with an absolute change in government priorities. Nation TV reported that the 10th anniversary celebration of the Kenya Revenue Authority which was supposed to be officiated by President Kibaki at KICC today was cancelled at the last-minute because he decided to host delegation of several Maasai leaders at a State House parley – where the usual exchange would be “we pledge our vote on the new constitution to you in exchange for the following …..”

Jobs

Standard Chartered Bank 3 postings

Relationship manager:Work on customer products, new services, also managing risk and reviewing corporate client accounts. Applicants must have a finance degree, and 5 years work experience with a minimum 3 as a relationship manager.

Corporate finance manager: Work with relationship management teams to build relationships with senior management of key clients, structure deals, and come up with plans for their transactions. Applicants must have knowledge of oil, gas, telecom, and energy industries in Africa, project finance/corporate advisory experience, excellent understanding of capital products and a university degree with 7 years experience in corporate finance.

Tax manager East Africa: Who will Develop and implement tax strategies in East Africa. Applicants must be qualified accountants CPA/CA or equivalents) with at least 3 years exp. at a major accounting firm or international group, have good research, project, and analytical skills as well as knowledge of Kenya tax law & practices.

Apply to Jacqueline.wanyama@ke.standardchartered.com by October 31.

Internal auditor Ref no: ESS 395: For a dairy sector company who will review risk management systems and make recommendations, ensure audit compliance and provide value adding reports to the company. Applicants must have accounts or finance degree as well as a CPA (K) or ACCA qualification. Apply via pricewaterhousecoopers executive selection at ess.ke@ke.pwc.com by November 4.

Branch manager (insurance company):  Must have three years experience with well-known insurance firm, and a commerce degree (insurance option) or ACII. E-mail insurance@aboogroup.com by October 28.

Others

Reporters The Standard Group, publishers of the Standard and Sunday Standard are looking to hire the following

Job: Minimum requirements

  • News reporters (6 posts): post-grad degree in journalism/mass communications, aged 24 – 28, willing to work anywhere in Kenya at short notice.
  • Sports reporter: post-grad degree in journalism/mass comm., aged 25 – 30, good knowledge of sports
  • Sports correspondent: degree/diploma in journalism/mass comm., aged 25 – 30.
  • News correspondent (5 posts): university degree, good writer, aged 23 – 28, willing to work anywhere in Kenya.
  • Sub-editor (6 posts): degree in journalism/mass comm., aged 25 – 30,
  • Chief sub-editor: degree in journalism/mass comm., aged 28 – 26, experience working in a busy newsroom and as a subscription editor for 5 years.
  • Creative designer (2 posts); degree in fine arts/design, aged 25 – 30.
  • Editors (3 posts) post-grad degree in journalism/mass comm., with 4 years experience, aged 28 – 33, willing to work anywhere in Kenya
  • In addition to usual application stuff (CV, contact, references), include a recent pp size photo and e-mail to hrd@eastandard.net before October 29.

Cabin crew: (at) Qatar Airways … Love the requirements to join the “Best Cabin Crew” in the Middle East. Applicants should meet: Minimum age – 20 years, minimum height 157.5 cm, (minimum arm reach of 212 cm on tip toes) , minimum secondary education with good English skills and previous work experience in customer service, hospitality, nursing or the airline industry. Apply at their website

Friday Mix

Keep Smiling
One of the best mug shots I have seen – former Texas Republican leader Tom Delay was advised by his lawyer to look cheerful when he was arrested

Roar of the Dragon
This week Kenya Airways added flights to Guangzhou, another destination in China, just as the NY Times warned countries to beware of the stereotypical loud, rude and culturally naïve Chinese tourist

‘I Will Eat Your Dollars
The LA Times looks at Nigerians who write from cybercafes
promising you millions of dollars

Flat fee Banking

Flat fee bank accounts are the closest thing to free-checking accounts here. NIC was the first with MOVE (launched in November 2003) and since then other Bank’s have tried to imitate the MOVE concept whose main feature was an offer of a variety of bank transactions – all for a flat monthly fee. A comparison of the offers in order of rank;

1. Diamond Trust Open Plan:(490/= shillings per month)
Diamond Trust Open Plan includes ATM card, one chequebook each year inward salary processing, unlimited deposits & withdrawals from ATM and quarterly statement internal transfers. The Bank also has Open Air: (For 690/=) which comes with spouse ATM card, free internet banking, 2 chequebooks a year, and monthly statement) and Open Sky: (For 790/=) which offers one a designated relationship manager, 3 chequebooks a year, 1 free bankers cheque per month and unlimited standing orders inclusive of loan instalments to other banks. DTB currently has 11 ATM locations (9 in Nairobi).

2. NIC Move (800/= month)
MOVE includes a free ATM Card, 50-leaf cheque book, incoming salary transfers, monthly Standing orders & direct debits, one free Bankers’ cheque per month, internet banking, monthly statement, SMS Banking and MOVE Zone Locations have loan/account representatives and self-help PC available from 8 a.m. to 8 p.m. MOVE has 13 (11 in Nairobi) ATM locations.

3. Standard Chartered All-in-One (750/= per month)
Stanchart includes ATM card, chequebooks, standing orders, local/foreign telegraphic transfer, traveller’s cheques, local ATM withdrawals, free foreign currency purchase/sale, free DEBIT card and one free banker’s cheque per month. Has the largest ATM network (58) out of the four banks.

4. CFC (Saturday only)
CFC Bank has some transactions free on Saturdays only including interim statements, chequebooks, banker’s cheques/drafts, and traveller’s cheques. (All are subject to minimum balance of 10,000 maintained throughout the month, otherwise a fee of Kshs. 500 per month applies)