Who’s Kenya paying?

A noble step in the war on corruption is this website by the Public Procurement Oversight Authority which list all contracts awarded over 5 million shillings ($71,430) by organs of the kenya government . A step further would be to require/ publish all companies who are awarded such contracts to also publish/disclose all the company directors.

Transparent dust
Mwalimu Mati is showing his former employers Transparency International quite a bit of dust with his new venture Mars Group Kenya which unearths more dirt than Transparency ever did.

Easter weekend

No trades
I realized that I had not been to my stockbroker’s office to trade this year. It would be good to visit to find out the fate of my Stanbic shares. I’m not sure if I got a full allocation or a refund since I have not got any report from the broker. This week would be a good time to visit before the lines begin for the Access Kenya IPO which starts next week.

Access Kenya IPO
Access Kenya announced that their IPO will begin on April 19th. The company hopes to sell 80 million shares at 10 shillings ($0.14) each to raise 800 million shillings ($11.4m). I look forward to the prospectus to be released within the next few days to give a proper picture of the communications market. And we are also awaiting an IPO from Wananchi, Kenya’s largest ISP who unfortunately lost a bid for Africa Online to Telkom of South Africa.

The ISP industry has shown tremendous growth, but the sector faces additional challenges for investors.

  • First like the Scangroup IPO, intangible measures take on greater significance in comparing the company against its peers and its future prospects.
  • Second, an additional regulator comes into play i.e. the Communications Commission of Kenya. The sector has seen some turbulent investments that have not reached fruition including the third mobile operator (Econet in court for three years) and the second national operator (license has been awarded and canceled twice). Also CCK will in future move towards giving unified licenses, which means that companies won’t have to go back to re-apply each time they want to introduce a new service.
  • Third in a unified license world, and once a restructured Telkom has been sorted out, Safaricom and Celtel may be the ISP companies of the future with their EDGE / GPRS offerings. (ISP’s are already complaining about mobile companies not playing fair with interconnection, leading back to the regulator again).

Corporate divorce
Alexander Forbes of SA has withdrawn its name from Alexander Forbes insurance brokers of Kenya citing a lack of majority equity or management control. The Kenyan operation (formerly Hyman Robertson) who already have a new name ready to launch, feel that they have been good custodians of the brand, turning it around from loss-making one to being one of the largest in East Africa.

Fading libraries?
Read in the Sunday Standard that the British Council was closing their library in Mombasa owing to declining memberships.

Kenya Bank Rankings in 2006

Barclays still rules at the end of 2006

figures in Kshs. millions

Bank assets 2006
change from 2005 rank in brackets
1. Barclays 118, 021 (Kshs 118 billion or $1.69 billion)
2. Kenya Commercial 87,326
3. Standard Chartered 81,014
4. Co-operative 57,683
5. (6) Citibank Kenya 37,794
6. (7) Commercial Bank of Africa 37,507
7. (5) National Bank of Kenya 36,123
8. (9) NIC 26, 108
9. (12) Stanbic 25,822
10. (8) CFC 25,392
11. (10) Investment & Mortgages 22,348
12. (11) Diamond Trust 21,564
13. Equity 20,024
14. (15) Baroda 11,773
15. (19) Prime 10,452
16. (17) Imperial 9,406
17. (14) Housing Finance 9,142
18. (16) EABS 8,910
19. (18) Bank of India 8,702
20. Fina 6,502
21. Bank of Africa 6,488
23. (22) ABC 5,357
24. Habib AG Zurich 5,323
25. (30) K-Rep 5,220
26. (23) Giro 5,098
27. (25) Guardian 4,917
28. (27) Southern Credit 4,580
29. (28) Victoria 4,284
30. (37) Chase 4,123
31. Equatorial 3,962
32. (33) Consolidated 3,437
33. (29) Middle East 3,401
34. (36) Development Bank of Kenya 3,297
35. (34) Habib Bank 2,963
36. (35) Credit 2, 610
37. Transnational 2,566
38. Fidelity 2,316
39. Paramount Universal 2,197
40. Oriental (formerly Delphis) 1,449
41. Dubai 1,248
42. City Finance 527
========
Notes
22 (32) Family Finance 5, 469 was not been licensed as expected
Charterhouse Bank was de-licensed in 2006

Pre-tax profit
Barclays 6,624 ($94.6 million)
StanChart 3,810
KCB 3,035
Citibank 1530
CBA 1,311

Return on assets
Barclays 5.61%
Equity 5.51%
Family Finance 4.83%
StanChart 4.70%
I&M 4.19%
Imperial 4.11%
Citibank 4.05%

Deposits
Barclays 93,837
KCB 71,495
StanChart 64,879
Co-op 48,201
CBA 32,517

Loans
Barclays 73,907
KCB 40,659
StanChart 35,762
Co-op 28,037
NBK 26,491

Branches
estimated
KCB 110
Postbank 66 (not a bank)
Barclays 53
Equity 42
Co-op 40

Staff expenses
KCB 3,823
Barclays 3,057
Co-op 2,081
StanChart 1,781
NBK 1,204
Equity 943

Loans to deposits
City Finance 183%
DBK 117%
K-Rep 114%
Transnational 103%
Dubai 93%

Government friendly banks
ratio of government securities investment to loans
Habib AG Zurich 210.46%
Habib Bank 195.07%
Baroda 140.66%
Bank of India 138.15%
StanChart 77.32%
Citibank 69.54%

Raking the Fees
% of income from non-interest (lending) sources
Oriental 60.49%
EABS 56.66%
Equity 55.27%
Paramount Universal 53.76%
Family Finance 53.11%
Co-op 51.35%

Related

Earlier in depth review, analysis, and projections.

2005 rankings.

Chinese rescue Tiomin

Jinchuan Group Ltd of China will invest $9.4 million Kshs 640 million) in Tiomin by purchasing 72.5 million shares of the company (increasing their stake to 20%) and the improved cash posiiton will enable the Kwale project to go on.

See earlier project delay.

Safaricom blinks & the Nairobi barcamp

Saasa for life
Safaricom has extended its’ Saasa tariff indefinitely (was due to expire on March 31) which has much cheaper calls and SMS’s from 2- 8 PM.

Celtel has come up with some much cheaper rates than Safaricom and many people (myself included) had been waiting to see what Safaricom would do to reign in customers considering a migration.

But for now, my priority has changed to searching for a wireless communication provider. At the Barcamp – the audience was asked how many had internet access at home – with only a fractional number saying ‘yes’ – because the costs are high. Next stop for me is to decide between Flashcom, Popote, Telkom Wireless, Celtel, KDN (Butterfly), Wananchi or Safaricom on a connection for a laptop. Another interesting option I read about but one which has to be discussed with the neighbors.

Barcamp
This was a great afternoon of interesting talks (interrupted by the Arsenal Liverpool game in between).

A notable point of discussion was the apparent disconnect between the business sector and the academia. With so many executives are taking parallel degree programmes on campus one would think they’d be an easy leap in mentoring and business incubation – but, no. A curious footnote was that audit/accounting firms like to hire engineering graduates (because of the analytical way they think) and many engineering students are disillusioned about their future prospects – something that will hopefully be corrected by an ongoing curriculum review.

Others;
– Most interesting was how (Edit University of Nairobi) JKUAT students created a local area network (was also done at Moi University)
– Proposal to have another Barcamp for content
Stockskenya (by network associates) with popular bulletin boards and fantasy trading game, with plans to enable online trading

Real estate investment
Bandari villas in Bombolulu (Mombasa) will be completed later this year. The 105 maisonettes and 56 apartments are being put up by the pension fund of the Kenya Ports Authority and are located 6 km from Mombasa and 1.5 km off the Mombasa Malindi highway

The houses are being marketed at local investors and Kenyan in the Diaspora and will be sold by Lloyd Masika agents [e-mail bombolulu@lloydmasika.co.ke] at between 3.5 and 5 million shillings ($50,000 – 71,000)

More:
– This appears to be another write-up of the houses and write up
– More on the cheqeured past of the KPA pension scheme.
– An update of real estate investments from the Diaspora

Jobs
AY&R Group. Account directors, account managers, advertising creative teams, secretaries, graphic designers, graduate trainees, management accountant. Apply to AY&Rgroup_Info@ke.yr.com by 4/4
Brookside Dairies: country managers (Uganda and Tanzania), Sales Managers, chief accountant (Tz & Ug), accountants, sales supervisors, salesmen, merchandisers. Apply to hrm@brooksidedairies.co.ke by 15/4
Commercial Bank of Africa. Compliance unit manager, property manager, administration manager, management accountant, product development manager (personal banking), business development & projects manager (IT), Treasury sales. Apply to jobs@cba.co.ke by 16/4
Africa Regional HR manager at Crown Agents. Apply to jobscs@ke.crownagents.com by 13/4
CEO at East African Grantmakers Association. Apply to info@eaag.org by 23/4
Graduate trainees at East African Standard
Accountant at Kemri/CDC. Apply to recruitment@ke.cdc.gov by 13/4
K-Rep: branch managers, business development officers, bank clerks, system administrator, database administrator. Apply to chief HRO 25363-00100 by 13/4
KWAL: application systems supervisor, systems administrator by 12/4
Various jobs at Virgin Atlantic Nairobi. D/L is 6/4
World Vision – Sudan: internal auditor, ICT specialist (infrastructure), IT specialist (system administration). Apply to recruitmentsdn@wvi.org