Kutwa Tuesday – Post Madaraka Day

a day late, most from the daily papers

Refund dilemma: What should banks do with Safaricom refunds of 80%? Wisest would be to take the money and accept refunds from disappointed shareholders to pre-pay their loans. It would not be wise to refuse to accept money and insist that borrowers serve their loan durations– as idle money has many employers. The middle ground would be to facilitate investors to buy more safcom or other shares, but that’s a new risk area in investment banking. Ideally there should be loans for secondary market purchases or margin trading.
Next I-bank Equity Bank to set up an investment banking subsidiary (from Ocean Newsletter)
New note Kenya needs a new bank note – denomination 3,000 or 5,000 shillings soon.

NSE talking points:
Fuel hedging?: Despite the reduced flights, its’ amazing that Kenya Airways actually reduced its fuel bill in 2008 (albeit just 1.6%) – this is at a time when other airlines are going bankrupt because of high fuel costs. Can they do it again in ’09 without having to resort to radical fuel saving measures?
– Total Oil interested in Caltex and will compete against the government for the stations
– Government and NSSF to opt out of Housing Finance rights issue
– Fresh off a profit warning, the Sameer Africa boss out; is this the reason the reason ?
– Undugu? Nation reporters in Tz still not comfortable
– The City of Nairobi is now Safaricom broadband hotspot who are selling postpaid hotspot bundles.
Equipment is a broadband modem for 6,000 ($98) and a broadband router for 35,000 ($570) shillings. Service options offered include – up to 700MB for 2,000 ($33), up to 2GB for 4,000, 5GB for 7,000, 8GB for 10,000, and up to 30GB for 30,000 ($491) , but weak customer care remains an Achilles heel for new Safaricom products

Refinery Coalition Libyan and India to share equaly/ (happily?) in the Kenya Oil Refinery in Mombasa
– The Agriculture Finance Corporation (AFC) asks farmers to continue paying their loans since most of them were not affected by post-election violence
– East African Portland cement to start paying all supplier invoices by electronic financial transactions (EFT)
– Kenya Railways selling land in makupa (7 acres), kibarani (9), embakasi (10) and a building in headquarters (D/L 27/6)
– Kenya Ports Authority to set up an inland container depot (dry port) at Eldoret (seeking bidder to lease operate by 20/6)
– Kenya Re say their will put up a transit hotel at JKIA (was in their 2006 prospectus)
– The City council of Nairobi seeks land to for a new cemetery
Education: Makerere University (Ug) to offer courses in renewable energy

7 thoughts on “Kutwa Tuesday – Post Madaraka Day

  1. Anonymous

    Speaking of Sameer:

    Eveready investors were forewarned on this blog – just a few weeks before the shares took a massive downward plunge.

    Bound to happen – can’t run a company on shaky fundamentals. Doesn’t matter who you are or where you are.

    Even media houses, with their massive research resources were caught napping…

    Conclusion: Blogging rules!

    Yet another indication that Bankelele’s blog has high quality information.

  2. mine

    I agree that Eric may not be a good CEO as he would want to make us believe. may be he should concentrate on motivational speeches…but is Sameer Africa business sustainable? with all the imported tyres coming in at cheaper prices, i see tough times ahead for them.

    And it seems like the Merali Empire is slowly collapsing…Eveready, Sasini are not in any admirable situation either.


  3. Mashatall

    KR not selling their land actually leasing it out to any interested party, to mange for a certain period of time. I think Merali has been spreading himself too thin with too many acquisitions, that have not been well thought out long term. Selling 51% stake in KDN was a wise move as Access kenya invades the turf with a wimax solution rollout. Revamping equatorial commercial bank by registering an investment bank might be the best move he has made, he will now play with all the big boys of the capital markets on the same level.

  4. Gitts

    I see ERic Kimani just said that his contract was over and didn’t want to renew. Now he want to write a book.

    I’m no safcom fan but I think their launch of 3G will be crucial for their business if they can get the customer service right.

  5. Anonymous

    how sad to hear about Eric Kimani. I have heard some of his motivation talks, and enough emails have been forwarded.. especially on the “scarcity mentality”. What’s sad, if it’s true, is that he didn’t quite practice what he preached.. if he was hiring relatives, etc

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