Category Archives: tiomin

Kutwa Tuesday: Equity Bank & Tiomin

recently in the media

Equity Bank returned to super nova status with almost 200% growth in June 2008, compared to a year before. From a pedestrian growth (at their rate) in Q1 of 8% for deposits and asset, they rebounded to 23% gains in both during the second quarter of 2008 after the Kenyan peace deal and their heavy involvement in the Safaricom IPO – redeploying funds from government securities.

March to June income grew faster for the first time in three quarters, after being evenly matched in December and March. And at 70 billion ($1.05 billion) in assets, will be 3rd largest bank in Kenya by year end (how long before they overhaul Barclays and KCB?). Also how much of a boost did NBK get from Safaricom and Barclays lose by staying on the sidelines? – Thank Kofi or Safaricom?

Alternative investments
in my mailbox
– The Barclays Bond is looking to be a good investment for retail crowd – a Kshs. 100,000 ($1,500) investment will deliver 11.5 %% for the next 7 years. Third tranche of bond coming soon
– Following the Stanbic IPO, Uganda has a rights issue from New Vision
– Tanzania has Nicol – the National Investments Company Ltd newly listed on the Dar es Salaam Stock Exchange

Biz briefs
– The Jinchuan Group Limited China will invest $25 million into the stalled Tiomin Kenya Limited project (purchasing 70%)
– From Indian Ocean Newsletter: Transcentury eyes a bid for Uchumi Supermarkets
Rate hikes – four mid-size banks have hiked their base lending rates above 15%
– Diamond Trust Bank answers some common shareholder FAQ on deceased, lost, or dormant shares
– Stanbic Uganda leads the way communicating with its (31,000) shareholders – from sending annual reports by e-mail to communicating about divided payment calendars and difficulties, while inviting shareholders who have not received theirs to contact the Bank. Any Kenyan companies doing that yet?
– Vodafone to buy back under valued shares: what about Safaricom?

From the blogs
Archer finds a faux/fan site for embattled Kenyan Transport Minister – Chirau Mwakwere
How good is Safaricom’s bambanet service? (a review)
– A marketer’s perspective on the Coke vs. Alvaro brew war

Opportunities
– Nominate a company as one of Kenya’s Top 100 (D/L 31/7)

Internships/scholarships
science & technology scholarships to study in Algeria (10) and Morocco (15) for recent high school graduates.
– Graduate trainees at the Kenya Revenue Authority. Apply by 22/8 using snail mail to the senior deputy commissioner HR 48240-00100 Nairobi
British Council – Africa knowledge transfer partnerships for (2) graduates to work at MEA Limited and Booth Extrusions d/l 8/8

Jobs
– Marketing manager at East African Breweries
Google Africa: Geographic Specialist (Temporary), HR and Communications Associate, Localisation Project Manager – Africa, Strategic Partner Development (SPD), Local Markets, Technical Support Associate, Google Applications (all Nairobi)
– I & M Bank: Cashiers/Tellers for Nairobi, Mombasa & Kisumu, Relationship Manager/Officer
– Jetlink Airlines: technicians, engineers, telesales officers, reservations officer. Apply to hr@jetlink.co.ke by 8/8
– KCB: Contact center services manager, quality assurance & business processing manager. Apply to recruitment@kcb.co.ke by 8/8
Neptune software: Lead developer, associates consultant (2), consultants (2), sales manager, and client relationship manager. Apply to Kenya@neptunesoftwareplc.om
– Executive director Media council of Kenya (D/L 8/8)
– Paynet: Sales accounts manages, system support analyst. Apply to careers@paynet.co.ke 1/8
– USIU: Network administrator, internal auditor, purchasing coordinator, jobs@usiu.co.ke 8/8

Kutwa Tuesday

These are stories I have found (kutwad) and want to share this Tuesday

Getting a story straight: One way of getting your story out through the media is to buy space and have your statement run exactly as you mean it and straight to the public – and there are two recent instances of that.

Street Lights: First is by the CEO of Adopt-A-Light Esther Passaris who launched her transformed street lighting crusade into an anti-poverty and anti-corruption vehicle that may lead her to being the next mayor of Nairobi.

This comes after the City council of Nairobi disowned the contract they had with her company and advertised for other companies to fulfill outdoor lighting & advertising functions which were had been exclusively done by Adopt a light.

What’s in your water bottle?: The second statement is a concerned water expert who is worried that Kenyans may not understand the different types of bottled water being sold – drinking water, natural mineral water, mineral water, carbonated water etc. – and that water bottling companies are being liberal with the advertising truth. He writes that natural mineral water is bottled at source, and with no chemical treatment, which is an expensive process – and he doubts that it is possible for a company actually producing such water, can sell it at the same price as drinking water. I.e. some of the companies are making false claims on their water bottles. He also cautions users to check the amount of fluorine in bottled water as it can lead to bad teeth and bone disease (Should not be more than 1.5mg per litre)

Do they work?: Of course the media love a story waged on their papers and companies such as Kakuzi, Portland cement, Kenya pipeline, Nzoia Sugar and other companies have all bought space (in more than one newspaper) to run statements, usually denying allegations of financial impropriety. There was even an infamous statement defending Anglo Leasing a few years ago.

Esther Passaris took out 2 page advertisements in both the Sunday Nation and Sunday Standard – probably at a total cost of Kshs 1.5 million (840,000 for the Nation, and over 600,000 for the standard)

The media is happy because these statements add to advertising revenue and often lead to other statements and form a base for them to tackle stories that they may have been hesitant to delve into. IMHO, it is unwise for corporations to place such self-serving advertisements especially to deny allegations – the better thing is to lie low and let the bad press (negative stories) pass, plant a few trees & build schools (CSR is good first aid for a scandal wound), answer questions from regulators or authorities – but don’t splash your story in the media!

(See past PR statements by De La Rue and Italians in Malindi.

Communications Wananchi has applied for a data carrier network operator – DCNO license – joining other firms such as KDN, Simbanet, Telkom, UUNET and Access Kenya.

Bounty Hunter: In a Ugandan newspaper, I came across an article (copy here) about the search for Felicien Kabuga who is wanted for his role in the 1994 Rwanda genocide. The article had more depth than any story I have read in any Kenyan paper (fear of libel laws perhaps), but what continues to amaze me is that despite almost every literate urban Kenyan knowing about the search, a reward on offer of $5m (down to Kshs 335 million at current exchange rate), recent photos of Kabuga that the Nation published a few months ago, and significant evidence that he spends a great deal of time in Kenya – no one (his friends & associates) cares enough, for posterity, or for the reward, to turn this guy in. And now there’s a deadline – as the mandate for the International Criminal Tribunal for Rwanda (ICTR) and presumably the reward will expire at the end of 2008.

Brother please! Just came across this story – which at first I thought was from the the Onion or some satire website. But it appears to be a true story – that the wreckage of a six-seater aircraft has been found in Cameroon three months after it crashed. So should we be greatful that the KQ crash site was found within 48 hours?

Money go round: Even as some of the larger pyramid schemes are experiencing cash flow problems, smaller ones are still attracting new investors. In the newspapers every day there are more schemes in the works listed in the classified sections under business opportunity – all offering 16 – 20% returns per month, just for investing a small amount for a weeks.

Real estate The Kenya anti corruption authority (KACA) is seeking land in milimani, upper hill, kilimani or wastelands, presumably to set up a new office building. Lots sought should be 2 to 5 acres in size, close to major road and details should be sent to the Director by June 14.

Mining
– On J7 July at the Msambweni divisional office, a case will be heard between Simon Ndungu Karanja vs. Tiomin over his 1.9 ha piece of land
– Gippsland offshore petroleum of Australia is doing an geophysical survey of the Kenya coast (kipini area, ungama bay)
– Tile & carpet center are prospecting for carbon dioxide in (Kereita forest) of Kiambu district
– Oil giant Halliburton is moving is headquarters from Houston to Dubai!

Recovery Week

Out of hospital and recovering this week and trying to catch up after two weeks away from a computer. Missed so much, mailboxes are full, have to send proper replies, and most of the news links are now out-dated and need to be refreshed.

It was a pleasant week, whose main difficulty was the passage to time. I read many books and consulted Dr. Hannibal Lecter who had spent 8 years in one room.

Describe a share investor
The Economist published a series on executive compensation and ran a quote from 17 years ago that can be used to accurately describe (we) investors who speculate on shares;

To a shareholder in a typical company, a share is little more than a betting slip. It is bought at what a shareholder thinks are good odds to provide winnings he hopes will be large.

The notion that he owns part of a company makes as much sense to him as it would for the average gambler to imagine he owns part of a horse running in a 2:30 race.

A title deed to a house tells someone what he knows instinctively – that he owns the place and must care for it. A share certificate tells him nothing more than that he has the right to a dividend and the chance to make some cash.

Tiomin sells out
Tiomin will sell ATW Venture Corp. a 50% interest in the Kenyan mineral sands for US$35 million to raise funds owing to cost escalations.

Githongo blog
He must be wondering what he has to do to get his point, but after putting up a blog he should be very careful

Stanbic Results
With over 1 billion shares on offer and despite the over-subscription, there’s won’t be too many complaints about allocation;
– Uganda nationals get full allocation up to 2.15 million shares
– Others (including Kenyans) get full allocation up to 109,500 shares (about 312,000 shillings)[But the stock exchange there trades for (I think) 3 days a week]

Sky please
After years of getting (and under appreciating) SKY news of Britain, the local STV channel has taken it down and replaced it with VOA TV. There’s no apparent reason why VOA should be broadcasting as there’s nothing I’ve seen that is newsworthy or worth tuning in for.

Opportunities

Jobs

International director of fund raising at AMREF. Details here and apply through olga@crsearchandselection.com by 9/2

Financial controller at Children’s International. Apply through KPMG at esd@kpmg.co.ke by 2/2

Senior project officers (2) at EADB Nairobi. Apply to the Kenya country manager at box 47685 by 16/2

Housing Finance: Manager [HR], assistant manager[legal], officer [insurance]. Apply to human.resources@housing.co.ke by 3/2

I&M Bank: Details here for Cashiers [Tellers], Liability Manager, Trade Finance Officer, and Relationship Manager [Assets].

Marshalls: General Manager (Tata), General Manager (KIA/Honda), Marketing Manager. Apply through Dagger Consultants at gd@africaonline.co.ke by 9/2

National Oil Corporation: Various jobs including customer service assistant, ICT manager and internal audit assistant. Apply to hr@nockenya.co.ke by 13/2

NIC Bank: Nakuru [business development manager, sales executives (2), branch advances officer, branch customer service officer], Mombasa [service delivery manager], Nairobi [Corporate relationship manager]. Apply to the Head of HR 44599-00100 Nairobi by 7/2

Finance manager at Sense International – Nairobi. Apply to info@senseint-ea.org by 2/2

Finance manager at Tearfund – Nairobi. Apply to internationaljob@tearfund.org by 31/1

Other

KCB is seeking new ATM machines to expand its network into the hundreds.

The Nairobi Stock Exchange will conduct a Market Index Review via a consultancy.

Associate consultants at the influential Steadman Group. Apply to md@steadman-group.com

Tiomin Delay

Tiomin has sent notice that it will “delay construction of the
Kwale Project until the Government of Kenya resolves all land related issues” – i.e. some farmers have objected to the price they are being forced to give up their land to the project.

I think it is okay to ask it Tiomin will add value to Kenya: Are mining companies the right kind of investors for Africa anymore? Their legacy in most countries is not good and the Tiomin parent group has a history in South Africa. And when you look at the Fluorspar mines and companies like Magadi Soda that have been in Kenya for a hundred years, what is their contribution to the employment, the economy, citizens, and the government in form of taxes compared to five year old Safaricom and Celtel?