Women’s Bank: They may not have been able to get special seats in Parliament, but women can count on having their own bank when the Kenya Women’s finance trust converts to a commercial bank, probably in 2008. Having a women’s only bank is a long-running proposal to address some of the challenges women face as borrowers and bank customers.
KCB has diversified into asset finance, a field dominated by Barclays, Diamond Trust, CFC and market leader NIC (which was a Barclays spin-off initially)
A survey ranks Citibank as the top Kenyan bank and finds that 3 banks dominate the country.
Renaissance Capital was all set to be the next stockbroker at the Nairobi Stock Exchange until Old Mutual snuck in and doubled their bid with an astonishing ½ billion shilling ($6.5 million) offer. That leaves Renaissance to have to buy into one of the smaller stockbrokers, some of who have been patiently waiting for a big payday.
In an unprecedented move, Kenya Airways postponed its 2007 AGM. A mail mix up is to blame, and to think how for many years shareholders heaped blame on Barclays registrars, but at least they got the mail part right. KQ this year was handled by the ambiguously named Custody and Registrar Services.
Kenya Re fractions: Retail investors are not likely to get more than 200 shares apiece.
Communications
Safaricom ball: Having pulled out the rug from the Kalonzo Musyoka side with a party takeover this week, Raila Odinga’s next move was to step in front to halt the Safaricom IPO, which most investors can’t wait to receive (and which could be a vote winner).
– The Government has reduced the local ownership requirement in the telecommunications sector to 20% from 30% before. The 30% rule has derailed three ventures in the last three years and so far it appears the Sameer Group is the only local company to have invested more than 30% in any venture.
– Blogger Gathara points out another equally troubling aspect about the media bill.
Trade & Aid
Going to China: The Kenyan Ministry of Trade has opened a commercial office and posted a commercial attaché in Beijing, China.
CARE Cares: CARE has handed a lifeline to African farmers by turning down US Food aid.
Energy: The Olkaria geothermal plant to expand as a Mitsubishi consortium has been awarded a contract to add a 35MW plant for Kengen there
Tourism
– The Narok county council has stopped the development of Wasafiri tented camp on the outskirts of the Masai Mara but other camps are still being put up (read here)
– Fly540 to start flights to the newly reopened Wajir airport, Jetlink will start international flights (probably in the region), but the Kenya wildlife services have been refused a license to offer passenger flight services.
Upcoming
– Bioken, a new distiller factory in Athi River.
– New hotel in Gigiri.
– Three hills housing estate (6,000 houses) in Mwakinye, Mombasa.
– New casino at Nyali Cinema, Mombasa.
Opportunities
– Opportunities for artists from Nairobinow
– MD of the Kenya Film Corporation. Apply to info@filmingkenya.com by 21/8
– Transformation manager at the Kenya women’s finance trust. Details here and D/L is 30/8
– Join the Kwani sales team. Contact marketing@kwani.org
– Pan Africa Trust Fund: Chief Executive Officer, Grant Administrator, and Finance Officer. D/L is 24/8
– Business executives at the Standard / KTN
I am also investing in a new pair of shades!
I thought the CBK trying to REDUCE the number of banks!
New applicants should be given free licenses as long as they meet the requirements.
Most brokers got licenses since they were politically connected e.g. Town & Country (mudavadi), etc…
Why should they have a payday unless they build a business instead of merely warming a seat?
CT, good point. Do they have the Ksh1bn they’ll need to operate in 2010 and beyond or will they have to merge? There seems to be a bank for everybody apart from us youth. Mmmh.
The stockbroking business has become mega. Just the other day some of us were thinking we could put together the Ksh25mn needed. Now its 1/2bn. Talk about a bubble…
My eyes! Man, I thought I had linked to the wrong site. Banks, can you say “off-white” or “pale yellow”?
CORRECTION: A survey ranks Citibank as the top Kenyan bank with a balance sheet of more than Sh20 billion…
Kind of easy to win that spot when you’re one of the largest banks in the world.
It’s a harder tag to gain when you’re not even a Kenyan bank…
white is good the black bkground was blinding esp when u use a comp the whole day.
Mind boggling the decision by Old Mutual to pay $6.5 million for a seat at the NSE!!
The last time a seat on the big board (NYSE) changed hands was in Feb of 2004 when one sold for $1.5 million…the NYSE is a 212 year old exchange, has thousands of listed securities and turnover in excess of hundreds of billions of $! Mutual have grossly overpaid and set a dangerous precedent!
Bankelele,
The results of the NSE seat tender are not (officially) out by I can confirm to you that Renaissance Investment Bank have won it.
Great blog Bankelele!
Mwenda.
Banks
Whats do think would happen if we asked those kenyans abroad paying lip service to endemic corruption in Kenya to boycott the safcom IPO?
black was beautiful.
black IS beautiful.
Contrarian>
That tender was fishy and suspect…there was a disclaimer made by the NSE that “the highest bidder does not automatically qualify to get the seat” also that the NSE’s BOD’s decision if final and that it cannot be appealed against.
I believe that it is not in the brokers interest to have Old Mutual given the seat because they are one of the biggest players in this market (read stockbroker’s client=comissions) so having then do their own trades who be akin to shooting themselves in the foot.
My bet is that NIC or Rencap will get the seat.
– black was your identity.
– i thought Renaissance was supposed to buy Francis Thuo? may be they changed their strategy but Old mutual is not giving them an easy time in their bid.
– lucky i never bought kenya Re.
I like the idea of Kenya Women’s Finance Trust.
The Grameen Bank which won a Nobel Peace Prize in 2006 had its humble beginnings with a call to lend money to women.
It reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity.
As of May, 2007, it has 7.21 million borrowers, 97 percent of whom are women.
Like CT, i think that the banks are supposed to reduce with the CBK rules?
And i also thought that Rennaisance was after Francis Thuo…..?
I missed the Kenya Re IPO by minutes since funds hadnt reflected in my account to proceed with the purchase. Good or bad, am yet to see.
click to http://assidous.blogspot.com
information is power; i am clearly powerless as i have no access to inside information. can you imagine how powerful a force i would be if i had access to all the insider information people have, given that i have money that others with info do not have to act on the info and maximize the money they make?
Alexcia said….”Banks,What do u think would happen if we asked those kenyans abroad paying lip service to endemic corruption in Kenya to boycott the safcom IPO?”
Jayzuz!!!!!!
Chic/Dude…are you for real ???
The white sucks dude!!!
Renaissance is my bet.
MainaT….You said “There seems to be a bank for everybody apart from us youth”
I totally agree.
I once worked on a World Bank Pilot Project that researched on the needs of the youth and their access to financing.
In the same year (2003/2004),Kenya Youth Business Trust was formed to cater for the youth between the ages of 18 to 30 years.
Not too sure how they are currently doing but its Board members had the likes of…
Adan Mohammed (MD, Barclays Bank)
George Thuo (CEO, Kenya Business, Jonathon Globe Academy)
Graham Shaw (MD, 911)
Andrew Bulloch (CEO, GSK)
Wanjiku Mugane (Founder/MD, First Africa Capital)
Katrina Wood (CEO/Owner, Mediaxchange)
Bankelele….Pris Pris go back to the Black backdrop.
As s’one said, Black was your identity.
keep the white. anyway much has been made about the 50 seats for women that was rejected in parliament. Outside of parliament there is moregender parity in kenya than in most african countries and even countries that have 50% female representation in parliamnent (rwanda)
http://www.sidint.org/files/report/SoEAR_2006.pdf
Coldtusker: too bright? The population is still ‘unbanked’ (rural Kenya) – and KWFT has an extensive rural reach and serves women how are majority of the unbanked.
MainaT: I’m sure they will do ok as a bank. Stock broking is mega, but not all brokers are equal – there are a few bid ones, and many marginal ones
E-Nyce: to bright? Citibank is maybe #5 in assets. I don’t understand the criteria of that survey
Anon: tinkering with the colour
Fedha: I know, the NSE will be crazy to turn down that money
Mwenda: You were right about Renaissance ‘winning’ it
Alexcia: Not many will boycott the Safaricom IPO over corruption. I may boycott it though because it will be messily oversubscribed and brining minimal returns & allocation– and instead buy it once listed (same as Kenya re)
E-Nyce: tinkering with the colour, may go back to black
Anon: I like your theory (and supported by the decision) that Old Mutual is too lucrative for brokers to give up their commissions (which would happen if they were their own stockbroker). The NSE may not be able to spell conflict of interest, but they understand loss of income
Ka-investor: black is still an option, but I’m a believe in content, not design
ME: It’s something that addresses the needs & challenges of women as bank customers, especially as borrowers (in a culture where collateral is held by men)
– Kenya Youth Business Trusts is still around, but not a bank
Mmnjug: As long as banks are profitable and sound, there’s’ not much that CBK can do
Anonymous: Does any woman want to be refereed to as a ‘Woman MP’/ I think not – they want to be MP for (____ constituency) on their own merit
We should just go the Nigerian route, instead of small incremental measures we just raise Paid up share capital of banks drastically, ‘small’ amounts like Sh 1 Billion wont encourage consolidation.
We should make minimum paid up Capital Ksh 5-10billion in Two years that will have the desired effect.
what with the requirement that Renaissance should not poach staff from the other brokerage firms? I think that is absolute BS!
bankelele,
‘i believe in content not design’
what you have is a brand (aka market-based-asset),and brands have both visual and performance (content) aspects. thats why any serious banker wears a suit+tie daily,not a t-shirt+beachshorts.so please head back to black,or at least conduct a survey before you decide.
@Pesatu
‘go the nigerian way’
can you imagine the chaos that would result when political opponents are forced to merge their businesses? leave them small,at least for now.
just what?
Banks,
In the long run all these complainers will get used to the design/color change. Whether you change the color to yellow or blue we will still come to read your soon to be ‘award winning’ blog. Because your content is unbeatable. So give them time, let them make all the noise.
In fact I like the white background – at least I am able to read the blog from my office without being worried that my boss will censure me for visiting suspicious websites… most of those are in black backgrounds.
problem with african countries is that they make it too difficult for businesses to build up capital – Which inturn helps them expand n grow.
Raising banks capital base is ok. But doing it ‘drastically’…i think not. African govts like to drop shells on businesses. Raising cost of doing business is detrimental to economy.Highest taxes are in Africa. Talk abt all those licences, regulations…etc sheer impediments.
Hoestly, how are we to grow and create employment and flourish on the backdrop of such an environment? Dont raise cash in your valuts at CBK to show to donors you’ve got liquidity.
Otero
pesa tu: are small banks really a problem? I’d be more worried about a big bank going awry
kamjeshi: I din’t hear that, but is it feasible? I mean all the bank’s have a merry go round of top staff, so why not stockbrokers? It’s a free job world and where ther’s money, the best will go
Anon: let’s see how the white is received in a month? it seems to be about 50/50 and change is good like Omo?
MpendaPesa: Thanks – I hope I can get it to look like an MS doc page eventually
Otero: I think donors are the ones pressing for bank reductions
Keep the white if you want. It’s your blog, do what you want to it.
Thank God I use Firefox: will be installing Greasemonkey to force it back to black.
Cheers!
http://eastandard.net/hm_news/news_s.php?articleid=1143973445
@ME
I guess the prospect of being allocate a measly say 100 shares worth around kes 1000 at this IPO is more tempting than hold out for that extra 5%